Business Proposal for Smart Aircraft Cleaning Limited - Example

Table of Content

Executive Summary

The paper highlights the business proposal for Smart Aircraft Cleaning Limited (SACL), a new company being formed to offer aircraft cleaning, janitorial and ancillary services throughout airports in the United States as well as other countries. Smart Aircraft Cleaning Limited (SACL) will deliver a low cost and world class aircraft cleaning services in many of the busiest and largest airports. Due to increase in demand for aircraft cleaning services coupled with the availability of experienced aviation cleaning staff, the firm will be able to meet its vision, mission, goals, and objectives. The document also gives the market, financial and competition analysis of the proposed firm as well as a list of resources needed. SACL will use integrated information systems to meet its operational goals, achieve customer satisfaction, improved decision-making process as well as a robust reward system that shall enable it to gain a competitive advantage over its competitor thus making it meet its marketing and survival objectives. The IS system will include Executive IS, Management IS, Decision Support System as well as Business Intelligence that will be installed after registration. The proposed system will facilitate reporting, communication, rewarding and operation more effectively and efficiently. SACL will employ e-commerce or e-business technology to achieve many of its different marketing goals and strategies. It will use World Wide Web technologies, online shopping websites, email, social media or fax to achieve it e-business goals such as meeting its marketing, procurement objectives, automating office supplies procurement and purchases as well as service order or request for SACL thus lowering cost. The paper also outlines various security challenges that might face the firm as well as a measure to address them which include installation of security control and restrictive policies. In addressing, business and IT solution, SACL will follow two approaches of analysis to develop solutions.

1. 0 Introduction

1.1 General Organizational Characteristics

Smart Aircraft Cleaning Limited (SACL) is new small company being formed to offer aircraft cleaning, janitorial and ancillary services throughout airports in the United States as well as other countries. Smart Aircraft Cleaning Limited (SACL) will deliver a low cost and world class aircraft cleaning services in many of the busiest and largest airports. The business will be a privately owned company registered under Company Act with its activities being financed by its owner, loans as well as proceeds from aircraft cleaning services. Due to increase in demand for aircraft cleaning services coupled with the availability of experienced aviation staffs in interior and exterior passenger and private aircraft cleaning, airport cleaning as well as executive lounge cleaning, the firm will be able to meet its vision, mission, goals, and objectives.

Vision

Therefore, SACL vision statement is to be a world-class aircraft cleaning company that offers first class and convenient quality cleaning services.

Mission

SACL is fully committed to providing first class quality aircraft cleaning services available that exceeds the expectation of our customers as well as their employees and customers to their products and services. SACL will be managed and operated with the following core values; respect, responsibility, excellence, integrity, innovation, and caring.

Goals and Objectives

SACL key objectives that are fundamental to delivering world class aircraft cleaning service will include;

• Providing clients with a professional and eco-friendly cleaning services
• Meeting the expectations of our customers as well as their employees and customers to their products and services at lower cost.
• Embracing internal online management system that facilitates adherence to management functions by the team.
• Implementation of total quality management through the incorporation of integrated management system.

Products & Services

SACL plans to provide highest quality aircraft cleaning services in many of the busiest and largest airports. Services will include interior and exterior aircraft cleaning, janitorial and ancillary services such as window cleaning, waste disposal, carpet and surface floor cleaning, lounge sanitation and dusting, furniture cleaning and specialized interior cleaning services.

Organisational Structure

Mr. Smart will be responsible for conducting all management functions since he will be the CEO and founder of the firm. He will be responsible for leading the execution of functions and development of the company's long-term plans with the aim of creating value for shareholders. The firm will also have five managers who will be responsible for financial, procurement, IT, operation and marketing functions. The firm will have chief finance officer who will handle all financial matters of the firm including performing payroll duties, bill clients, daily financial information as well as practice direct sales. Human resource manager will be responsible for coordinating recruitment, welfare, monitor performance, employee motivation as well as compensation function. Head of IT will be responsible for designing effective and appropriate information systems necessary for the execution of management functions as well as maintenance of the website. Operation Manager will lead all the operation duties to oversee implementation of procedures for the realization of objectives. Head of procurement and supplies will be responsible for input procurement and distributions as well as recruitment of efficient and reliable suppliers. Advisory team will be constituted that shall constitute of a banker, insurance agent, lawyer, certified public accountant and consultant.

Mr. Smart will also consider hiring an administrative assistant for the firm will grow to considerable size. SACL will have to manage more than 1000 full-time employees throughout the year. In the case of increased demand, additional variable labor workers will be employed to assist. All SACL staffs and the employee will be recruited on merit, and those with high qualification and attractive work experience will be considered in respective service areas. All staffs and employees will be taken through the short basic course in aircraft cleaning to equip them with sufficient skills in service areas.

Location

SACL headquarter office will be located in the Twin Towers Building along Valley Street, Washington DC. The company will lease the office space of approximately 800 sq. feet at a rate of $10.00 per sq. foot, arriving at a total annual lease expense of $8000. The cleaning business does not require a large space for the office, but the purpose of acquiring a front office is to conduct an enhanced professional service to current and potential clients as well as employees. Space will be enough to hold meetings with clients and employees and also storage for supplies and equipment. The firm will operate in many airports around the world

Competition Analysis

From the market and competition analysis conducted, it was found that SACL main competitor will include Mitie and Immaculate Aircraft cleaning with more than 3000 employees around the world. The strength of these two big companies includes broader customer based and investment in advanced cleaning technologies. Their weakness includes high operation cost as well as poor client employee relations.

Financial Information

SACL needs will be financed by owner's funds as well as a loan worth $20,000 from local banks. The firm will be flexible with terms available to get the loan. The proceeds from the loan will be used primarily to purchase cleaning supplies and equipment, payroll, lease payment, as well as working capital needs during the first year of operation. All new equipment and machines purchased with funds from the loan will be used as collateral. The firm expected revenue in its first year of operation is $ 141,000 as well as $ 224,000 in the second year. See Table 1below for startup expense and expected revenue for year one and two.

Table 1: Smart Aircraft Cleaning Limited

Projected Income Statement

Year 1 and 2

Year 1- $

Year 2 - $

Sale

Aircraft Cleaning Services

250,000

300,000

Operating cost and expenses

Advertise and postage

1500

1500

System cost - Software and hardware

20000

500

Insurance

5000

5000

Auto Expense

1000

500

Web Expense

1000

1000

Depreciation

500

500

Legal and professional

1000

1000

Office expense

8000

1000

Cleaning supplies

10000

5000

Taxes and license

5000

5000

Utilities

500

500

Fuel

5000

6000

Repair and maintenance

5000

4000

Subscriptions and dues

500

-

Bank charges

400

500

Trainings

20000

10000

Uniforms

1000

500

Wages

20000

25000

Payroll taxes

500

550

Telephone charges

800

900

Miscellaneous

1000

500

Total Operating Expense

107,700

69450

Net Operating income

142300

230,550

Interest Expense

5000

6000

Income before tax

141800

224550

Market or Industry Position

As the number of passengers, corporate and private aircrafts continues to increase, the demand for aircraft cleaning business continues to grow at a faster rate (Paul, Andrew and Simon, 2008). Aircraft owners continue to look for reliable and one-stop service provider who can clean their aircrafts in a professional and timely manner. This market situation presents a growing and valuable opportunity for SACL, who will devote its effort and asset to reap this new opportunity. Aircraft cleaning industries remain one of the most profitable, low cost, with low levels of threats and controllable competition level that one need to invest in.

1.2 Competitive Strategies

SACL will achieve its competitive advantage using the following four main strategies.

Cost leadership strategy- SACL will geographically focus their duties on specific airports to enable it to concentrate their assets in smaller areas that will ensure cost elimination. Aircraft cleaning business startup normally requires high labor as important assets since professional cleaning require given the amount of expertise. To minimize cost, the firm will be hiring experienced cleaners to handle various cleaning areas. SACL will be hiring labor on contract basis as well as pay on per plane basis instead of salary basis. This will motivate the employee to maximize their effort as well as making it easier to evaluate the cost for planning and pricing purpose hence enabling the firm to reduce it cost compared to its competitors.

Service differentiation-SACL will offer a wide range of cleaning services to attract more service areas as well as the market. Differentiating duties into different areas create more demand for cleaning services. SACL will offer interior, exterior, cabin, lounge cleaning among other. This will ensure a constant demand for cleaning service throughout the year.

Develop Robust Information System - SACL will invest in information system to allow it work efficiently, consistently and automatically. The firm will develop systems for every function as these will enhance its efficiency, effectiveness as well as building a stronger customer relationship through a long-term commitment to customer service duties compared to their competitor.

Invest in Training- SACL will invest in learning to keep track of changes in cleaning technology, safety issues as well as enhancement of organizational and management skills. All these strategies will enable the firm to achieve a greater competitive advantage over its competitors.

1.3 Information Systems

SACL will incorporate different information system to collect, organize, store and communicate information. A computer information system will be used to support operations, in management as well as in decision-making (Paul, et al., 2008). Among the information system that will be used by SACL will include those systems that facilitate efficient cleaning, supervision, reporting, customer service, accounting as well as management. These include functional area IS (Business Intelligence) which support functional areas such as accounting, finance, marketing, operation and human resource. Finance and Accounting IS will enable SACL to forecast revenues as well as business activities that shall facilitate accurate and sound audit and preparation of financial statement reports. Enterprise Resource Planning will collect, manage, store and interpret data for service planning, purchase orders and payroll. Management information system will manage systems to provide effectiveness and efficiency in strategic decision making (O'Brien and Marakas, 2013). The executive information system will also be employed to facilitate senior executive in making decisions. In short, a collection of different information will be integrated into many activities of SACL to enhance efficiency and effectiveness in its functions thus gaining a competitive advantage over its competitors.

1.4 Resources

One of the most important recourses that SACL will consider is human resources. Aircraft cleaning is a complex job that requires an employee with a higher level of expertise. Human resources will execute different roles ranging from cleaning to management duties. Another important resource will be financial resources such as loans that shall be used in accessing other material resources such as computer software, hardware, and network, training, materials among others. These resources shall allow for acquisition of other resources such as cleaning and equipment, building as well as other supplies. Many resources will be required to run the business, with a proposed information system and the good business plan being important to ensure efficiency in every activity. The presence of highly experienced staff and the advisory team will be important since it will offer social capital and valuable advice on competition, marketing, management as well as related financial issues that are crucial to the business success.

2.0 Body

2.1 IS Business Foundation

SACL will use the executive information system to facilitate and support top executive decision making. The system will provide easy and efficient access to external and internal information necessary for the achievement of SACL mission. The EIS will require hardware components such as CPU, keyboard, hard disk, monitor, printers as well as local area network. The EIS software system will require text handling, databases, graphic base and model software that will allow management of data for cleaning staff and customers (Keen, 1988). A set of telecommunication component will be integrated into the EIS that will allow the executive to transfer cleaning and human resource information from one office to another.

SACL will incorporate computer-based information system called Decision Support System that will support SACL business and organizational decisions. DSS will include knowledge-based systems and will represent software based system that will compile important information from cleaning materials, document as well as a business model that are used to make a decision and solve management problems (O'Brien and Marakas, 2013). The DSS will use computer hardware and IT personnel that will integrate input and expertise and with the use of network system to give output and decisions that shall help in solving financial, marketing and administrative issues.

SACL will also utilize a management information system (MIS) that shall be used to produce regular, and fixed schedules report based on data that will be extracted from the company's underlying contracts and transaction. MIS will also be incorporated in Decision Support System to enable management team to arrive at better decisions that shall ensure efficient business processes for the achievement of the mission (O'Brien and Marakas, 2013). MIS will be used to produce daily cleaning and customer reports to management so as to facilitate efficiency in monitoring trends in aircraft cleaning scheduling. All these information will be available and accessible from local network database and will be given a chance to appear on the front page of the company website (Keen, 1988).

After one year of operation, Business intelligence systems will be installed in the SACL information system to facilitate the acquisition of data as well transformation of raw data related to company transaction such as orders, customer, aircraft scheduling and detailing into meaningful information for analysis of business procedure and processes. BI technologies will be installed in SACL offices to allow the firm analyze large of amount of data to identify opportunities and strategies in the aircraft cleaning industry that shall allow the firm gain competitive and long-term advantage and stability (Kenneth and Laudon, 2011). A system of interconnected computer hardware and software will be used to create BI technologies that shall help in reporting cleaning schedules, trends and performance management and benchmarking. Within the system, SACL will have a system of telecommunication devices such as phone and radio that shall help in transmitting analyzed information. Enterprises Resource Planning and Accounting Systems functions shall be incorporated within the BI. A well trained and experienced software experts, IT official, Accountant and other managers will be considered as important input to these above mentions information systems and technologies.

2.2 Electronic Business and Commerce Components

Previous studies describe e-commerce or e-business as facilitation of trading in service or products using computer network like the internet. SACL will employ e-commerce to achieve many of its different marketing goals and strategies. The company will use World Wide Web technologies or email to achieve it e-business goals. The firm will apply different e-business technologies to meet its marketing as well as procurement objectives. SACL will use online shopping websites to advertise its product and services to its customers. The firm will also participate in online marketplaces to arrive at SACL objective of third party business to business as well as consumer to consumer (Paul, et al., 2008). The Firm will also market its products and cleaning services to prospective and current customers through email, social media or fax.

To develop the above mentioned e-business technology, SACL will integrate various components such as website, email account and internet connections. SACL will use tangible equipment such as computers, internet adapter and modem, dedicated server as well as Ethernet cabling to establish and install an online interoffice system where employees, customers and other communicate securely. Another component of e-commerce that shall be installed to facilitate online marketing and transactions are the shopping cart software and internet security systems. The proposed professional e-commerce will help the firm to create a web-based aircraft cleaning site where customers can order difference cleaning services online. Experienced computer programmers and web specialist will be employed within the IT department to take good care of the e-commerce duties. These components of e-business are selected because of their efficiency and user-friendly nature that allow customers to navigate through the web with maximum ease to order for cleaning services. The e-commerce components will also help in automating office supplies procurement and purchases as well as service order or request for SACL thus lowering transaction cost.

By selecting the above mentioned e-commerce system, SACL will ensure that its customers' needs are met since it facilitates collecting customer information from interaction areas such as e-mail, company website and telephone especially data related to day-to-day plane scheduling as well as interactions with various customers in airport within our market area (Kenneth C. and Laudon, 2011). Data on customer needs will then be used by management in decisions support systems to arrive at decisions that meet the company's objectives and goals well, increasing customer satisfaction and retention with minimum cost. In short, e-commerce will facilitate Customer Relationship Management that shall ensure constant revenues generation to a level that exceeds expenses.

2.3 Decision Support Systems Components

As an organization dealing with a large number of employees, SACL will incorporate management information systems as DSS. MIS will be important to top management to arrive at decisions related to duties such as aircraft detailing, aircraft cleaning scheduling, work schedules, financial and accounting duties. An integrated management information system with a various set of systems and procedures will be used to accomplish DSS since it will facilitate the gathering of information from various sources, store it, manage its, interpret into a more meaningful way for forecasting decisions (Kenneth and Laudon, 2011). MIS will help the management team develop reports accompanied with comprehensive information necessary for decisions making. MIS will provide employee performance reports to management team so as see the area for changes, reassignment as well as those who cannot perform to customer satisfaction. The data will be managed in a local database and website containing all employees' information whether fully employed or under contract. Work schedule will then be installed into MIS system to manage our employee hours of work as well as the planes they cleaned in a more accurate and efficient manner.

The report will be crucial since they will allow management to see and manage all employee in different locations or airports. DSS will also give monthly and yearly employee performance reports that can be used in appraising employees for promotion as well as motivational benefits or rewards (Kenneth and Laudon, 2011). The report will also include information on the working condition of our cleaning equipment since this will help the management to schedule maintenance dates. MIS will also provide ordering report that shall help management to track customers or client that will demand or orders for aircraft cleaning services. In addition to these reports, the system will also manage supervision data, to see which plane were not cleaned to perfection and which employee was responsible for such shoddy jobs. If any case the report indicates that there is a cleaning issue or problem with one of the employees, the management team with the help of operating supervisor will look into the issue or concern further to reveal a possible cause for such substandard job with the aim of maintaining highest quality employees and customer relations.

MIS will help the management team at every level to build its reporting skills and abilities for better management of the company. Management will be well equipped to generate a comprehensive report using accurate and reliable company data from online databases. MIS tool will be crucial in determining and identifying customers that renew their contracts. Finally, information from MIS will be used in forecasting revenue from SACL services to enable the management team to plan for future expenses in an appropriate manner.

2.4 Developing Business and IT Solutions

SACL will incorporate various approaches in developing a solution to its business and information technology. One of the approaches will involve deep analysis of current processes and systems so that the management team of SACL can understand fully the SACL business processes and create most effective and rightful solutions to help the business attain the next level of profitability and efficiency. Customers will be involved in all steps of solution development in that every client will have a proper understanding of what is expected at the end. Another approach will involve gathering business information and IT information from clients, staffs or the current tools and software incorporated within the SACL information system. The information will be gathered from interviews especially to those problems that are more daunting that cannot be gathered through anticipation such as canceling of aircraft cleaning contracts (Paul, et al., 2008).

If any case the data collected will be too much to be analyzed through computer software such as Microsoft Excel, the firm will embark in manual ways of analysis or divide data into sets for analysis. To facilitate an easy way of analysis, the IT department will continue to use Excel to produce the report, but it will be boosted by PowerPivot system that will increase the ability of the software to run and process a large amount of data by pulling it from multiple sources such as website and local databases. The company will also use Software called R that will be integrated into Excel. R will then allow the solution team to clean and concentrate the data into more unified sets. These computer technologies and business intelligence technology installed will analyze such data to develop the business solution as well as IT solutions within the shortest time possible. These two approaches are selected since they are efficient, cost effective and more reliable when it comes to the realization of company goals and objective.

2.5 Security and Ethical Challenges

The first ethical challenge that SACL anticipate is the insider effect. SACL anticipate a complex information system and it can be the challenging situation if any case a dissatisfied employee commits an insider security event by injecting malware into the system through web connection or removable media. Use of internet also will expose the proposed business to challenges such as hacking and cybercrime (Keen, 1988). Various privacy laws can also challenge the business. Despite the fact that currently there are no privacy laws barring the registration as well as restricting the operations of the business, any state law or privacy laws that may affect aircraft cleaning industry will expose the business to greater challenges. State Acts that does not permit, disclosure, unauthorized use or distribution of an individual's health-related information without their specific authorization or consent may affect the hiring of employees to work for the firm.

Despite these challenges, the company will be well position to address these looming challenges through different strategies. First, SACL will ensure 100% protection of its systems by creating and putting into effect policies that will aim at distinguishing the platforms as well as security levels based on the principle of business criticality. Secondly, the firm will develop different security for control network to separate it from business communication network security. This implies that the firm will be utilizing network embedded security controls to help in reducing risks, breaches and to simplify the network security infrastructures. Thirdly, through a team of technical and legal advisors employed by the team to, the company will be in a better position to cab any privacy law that may come in place to affect the business since they will advise for and organize training programs to teach employee and staffs on legal and security issues.

2.6 Impacts of Information Systems on the Business process

In order to gain maximum benefit from information system, it is import for every firm to exploit all its capacities (Keen, 1988). Information systems often process the data from the firm inputs to generate meaningful information necessary for managing business operations. Therefore, incorporation of information system in the activities and operation of SACL will enable the firm to achieve efficiency and effectiveness in communication within the organization, department as well as business process. It will enhance gathering and distribution crucial information by making it more efficient thus allowing the manager to communicate rapidly at lower.

The information system will provide SACL with recent and more efficient information that will allow its managers to operate more efficiently thus promoting business as well as organizational operations (Keen, 1988). Incorporation of information system within the SACL activities will allow manager to arrive at a better decision that shall help in meeting company objectives as well as mission. Information systems will finally facilitate easy and efficient data storage systems as well as effective record management that facilitate easy retrieval of data.

3. 0 Conclusion

In conclusion, through the incorporation of integrated information systems, SACL will be able to meet its operational goals, achieve customer satisfaction, improved decision-making process as well as a robust reward system that shall enable it gain competitive advantage over its competitor thus making it meet its marketing and survival objectives. The proposed business information system and technology will ensure that the SACL operation and decisions are up to date and effectively arrive at in a more cost effective way. It is believed that SACL technical team as well as employees will understand the business plan to have a clear picture of the business as well as its information technology objectives.