James Hughes as an Entrepreneur - Executive Taxis - Case Study Example

Individual Report on an Entrepreneur Student’s Name Institution Date Executive Summary Entrepreneurs are people who make a lot of sacrifices to succeed in business. For an entrepreneur to succeed, he needs to choose a profession he enjoys to give him the passion needed to overcome various challenges. An entrepreneur also needs to invest in strong business processes to improve the performance of his organisation. It is important for an entrepreneur to gather information about the industry he intends to operate in to find out favourable or detrimental factors that have an impact on the success of his business. This will help him prepare an appropriate business plan that outlines all risks and benefits the firm is likely to face in the industry. A business plan is an essential tool for any start up because it helps an entrepreneur understand specific actions that need to be taken to make his business successful. Individual Report on an Entrepreneur Introduction James Hughes owns a professional taxi company which has been in operation in the last ten years. His company, Executive Taxis, has spread its wings to other countries such as Philippines, Malaysia, Thailand, Singapore and Australia. The company began in Melbourne in March 2003 and has managed to experience positive growth in the last decade. This has helped it extend its profile beyond Australia because its services appeal to a large number of customers, in the markets it operates in. The firm has managed to make its operations more competitive by offering customers high quality services which encourage them to establish long term relationships with it (Rue & Byars 2003). In essence, the firm’s services are highly valued by its clients because they appreciate the way they are treated by its employees. Part 1 Executive Taxis have more than 10,000 workers who do various tasks. Therefore, the firm coordinates important service processes efficiently, which helps it satisfy the needs of its clients. The firm’s business model has helped it attain positive growth in revenues. As a result, the firm has strengthened the quality of its brand in the industry. Executive Taxis have a large number of dedicated employees who are willing to solve different problems they face at work. They are responsive to customer’s needs and expectations, a factor that has helped them strengthen the quality of services they offer to customers (Rue & Byars 2003). The firm has reviewed its human resource strategies because Hughes values employee motivation. As a result, many of the firm’s employees working in different countries are satisfied with their working conditions and this motivates them to perform their duties diligently. Part 2 Hughes argues that for a firm to perform well in a particular industry, an entrepreneur needs to take time to observe different factors that have an impact on the success of his venture. He reveals that he sacrificed a lot of time and money to study customer’s interests and preferences and attitudes before setting up his business. One of the most important decisions an entrepreneur needs to make is to come up with a good business plan (Cornwall, Vang & Hartman 2012). A business plan helps an entrepreneur to assess if his business idea will succeed and the resources that are needed to make the investment register positive returns. He reveals that a business plan helps an entrepreneur to assess the amount of resources needed to open a business. It also helps an entrepreneur to forecast and to find out the likely sources of revenue for his business to ensure it has a good cash flow. Hughes reveals that he started with a very small amount of capital which initially helped him to buy five cars. In the first year of the business, he was able to get a loan at favourable terms of interest which helped him expand his fleet. After two years, his business was able to break even and this allowed him to repay the loan which he owed the bank (Cornwall, Vang & Hartman 2012). He says that in the third year of operations, the company had expanded to all major cities in the country and it had a fleet of more than 70 vehicles. He goes on to reveal that the company has managed to establish a long list of individual and corporate clients which has had a positive impact on its revenues. These clients were satisfied with the personalised touch offered in the firm’s services which ensure every customer gets a comfortable experience whenever he or she uses Executive Taxis. The owner also reveals that a lot of business strategies were put in place to help the firm extend its operations beyond Australia. He reveals that he was able to overcome a lot of regulatory challenges in the Philippines, Singapore and Malaysia by establishing joint ventures with other firms which were more established in these industries. As a result, Executive Taxis were able to overcome various business barriers in these countries which threatened to impede on its operations. Hughes argues that an entrepreneur needs to understand the risks involved in a certain market before making any investments. He reveals that his firm conducts market intelligence and research initiatives to understand trends in the industry which have an impact on its operations (Cornwall, Vang & Hartman 2012). As a result, the firm assesses the viability of a particular business idea before investing any finances in it. This approach has enabled the firm to institute proper financial management systems to safeguard its long term interests in different markets it operates in. Part 3 Analysis of the Business Executive Taxis has managed to establish itself in the market in the last ten years. The firm has partnered with corporate clients and provides a wide range of services to its clients. It has managed to reduce its operating costs by establishing its own mechanical division which maintains all vehicles used in the business. As a result, this has helped it make maximum use of its vehicles which are always serviced properly to ensure they satisfy expectations of its clients (Allen 2011). The firm has long term agreements with ten five star hotels in Australia, Singapore and the Philippines. It picks up hotel guests from various destinations within a radius of 200 kilometres to various hotels they have booked. It has offered this corporate service for the last five years and this has helped it increase its revenues in the market. In the last three years, the firm has also been used to transport VIP guests to various functions in Australia, Malaysia and Singapore. The firm has a segment catering mainly for celebrities, top notch business people and high ranking government officials in the three countries. This segment has been in operation for the last three years and has helped the firm increase the amount of revenues it obtains from the market. Executive Taxis has managed to strengthen the appeal of its brand because it is associated with luxury, glamour and comfort. This approach has helped the firm to improve the quality of services it offers to its clients and this has raised its profile in the industry (Allen 2011). Hughes reveals that in the next two years, the firm will open its operations in New Zealand to increase its market share in the region. Part 4 Executive Taxis offer products that target both individual and corporate clients. The firm’s clients call and book to be picked up from different locations they are located. It encourages its clients to pay through credit cards after they have reached their destination on electronic billing machines. The electronic modes of payments used by the firm have made its operations more efficient. The firm has three classes of services it offers its clients (Allen 2011). The class A service targets VIP customers and has a separate line of limousine driven by chauffeurs. This service is offered in three main countries namely, Australia, Singapore and Malaysia. One of the key advantages of this service is that it comes with security, outriders and high quality entertainment. Therefore, this makes VIP clients feel safe and comfortable whenever they use the firm’s services. Executive Taxis class B service targets corporate firms, the hospitality industry and other large firms that have various transport needs. The firm picks up guests from airports, hotels and residential areas to their destinations as instructed by the firms. This segment brings in a lot of revenues for the firm and it is the best performing segment in the firm. The firm has more than 200 corporate clients in all the four countries where its operations are based. The firm’s billing system ensures its corporate clients based on the total mileage travelled for the whole month. This arrangement has attracted many firms who feel that the billing system the firm uses is flexible and gives them a lot of options (Hisrich 2010). At the moment, the firm is eyeing the New Zealand market because the country has many business opportunities which favour its operations. Class C service focuses mostly on the car hire and general taxi businesses. This targets price sensitive customers in all the four countries who are charged on the spot after reaching their destinations. The firm’s business strategy has helped it differentiate the types of services it offers its clients. This has helped the firm to streamline its operations to focus on markets that have a high potential for growth. The firm has an active call centre with customer care professionals who are able to track drivers and their locations using GPS technologies. They provide support to all drivers help them locate clients quickly without wasting time. These technologies enable the firm to supervise its drivers more effectively to minimise wastage of fuel (Hisrich 2010). Part 5 James Hughes reveals that its firm maintains quality relationships with its clients. It has more than seven call centres in the four countries and this has helped it increase its revenues. He reveals that the firm intends to buy a majority stake in a New Zealand taxi company to extend its operations in the country. He reveals that a joint venture between Executive Taxis and the firm based in New Zealand will help the firm establish itself in the country (Jones & George 2006). Hughes advises entrepreneurs to be passionate about their businesses to enable them achieve positive growth. He advises them to invest in strong financial systems to make their business operations more efficient. In conclusion, the firm has managed to stand out in its industry. Good business practices coupled with strong customer focused strategies have enabled the firm to improve the quality of its operations in the industry. References Allen, K 2011, New venture creation: an entrepreneurial approach, Cengage Learning, Boston. Cornwall, J., Vang, D & Hartman, J 2012, Entrepreneurial financial management: an applied approach, M.E Sharpe, New York. Hisrich, R 2010, International entrepreneurship: starting, developing and managing a global venture, Sage Publications, London. Jones, G & George, J 2006, Contemporary management, McGraw-Hill, New York. Rue, L & Byars, L 2003, Management: skills and applications, McGraw-Hill, New York. Appendices Interview A. Me: How did you begin your business and in which countries does it operate in? James Hughes: I began the business with only a small fleet of cars at Melbourne in March 2003 but the firm has experienced rapid growth in the last 10 years. I operate in Philippines, Malaysia, Thailand, Singapore and Australia. B. PART 1 Me: What is the situation of company’s human resource? How much tax have you paid to the governments in countries you are operating in? James Hughes: The firm has a large human resource staff capable of resolving different customer care issues in various locations. It has more than 10,000 workers. It is estimated that it paid more than 1 million dollars in tax revenues to governments of the four countries it operates from. C. PART 2- Me: What are some of the achievements, awards, agreements and the profits that the company has achieved? And what are some of the aspects you considered when starting up the business? James Hughes: It won best service company award of Victoria in 2005. It also obtained other foreign awards in Singapore and Malaysia. Exclusive agreements between the firm and major corporate firms has helped it increase its market share. The firm made more than 5 million dollars net profit in the financial year 2011-2012 in Australia. I sacrificed a lot of time and money to study customer’s interests and preferences and attitudes before setting up the business. The firm has long term agreements with ten five star hotels in Australia, Singapore and the Philippines. It picks up hotel guests from various destinations within a radius of 200 km to various hotels they have booked. D. PART 3 Me: When did the firm differentiate its services it offers and the advantages? James Hughes: The firm differentiated its service offerings in 2006 to serve its customers better. This has helped it take advantage of new opportunities in the market. The firm has managed to strengthen the appeal of its brand because it is associated with luxury, glamour and comfort. In the next two years, the firm will open its operations in New Zealand to increase its market share in the region. E. PART 4 Me: What are the benefits of differentiation of markets to the firm? James Hughes: Differentiation of markets and services has made the firm improve its competitive edge in the market. F. PART 5 Me: Has the firm been in touch with needs of the customers? James Hughes: The firm has managed to keep in touch with client needs. This has helped it sustain positive performance in the market for several years. The firm maintains quality relationships with its clients. It has more than seven call centres in the four countries and this has helped it increase its revenues. Read More