Management and Business Analysis for StructureAll - Essay Example

Jan Cronje Management and Business, Module 5EJ072 25 April Index Page Cover page 1 Executive summary 2-3 Objectives 3-4 Mission Statement 4-4 Keys to success 4-4 Company Summary 4-5 Company Ownership 5-5 Start-up summary 5-5 Services 6-6 Service Description 6-7 Future Services 7-7 Market Analysis Summary 7-8 Strategy and Implementation Strategy 8-9 Management Summary 9-9 Management Team 9-9 Personal Plan 10-11 Financial Plan 11-12 Key Financial Indicators 12-12 Projected Profit and Loss 12-13 Projected Cash-Flow 13-13 Appendixes 13-13 Works Cited 14-14 Business Plan for StructureAll Ltd EXECUTIVE SUMMARY StructureAll Ltd is a consulting firm, which specializes in structural engineering services. The firm will be based in Canada. The principles and guidelines, which StructureAll Ltd stands for, recognize the importance of quality management in successfully meeting the company’s competition. The company specializes in structural engineering services ranging from concept planning to completion. StructureAll Ltd will offer good quality and cost effective services in structural engineering, environmental consulting, design, construction and construction management, procurement and project management, and other consulting services related to design, building and management of structures. The company’s offices will be established at Canada in the first year of operation to reduce costs. The founder, who is a professional engineer, has 18 years of responsible and progressive experience (Alleny 130). (Pinson 20) StructureAll Ltd The company has notified major clients to be major construction companies, real estate companies, local and state governments, and water companies. We believe by focusing on these institutions, which have special needs. We will be capable of bettering our service to clients and producing a superior service that is more efficient and effective than other structural firms (Pinson 70). Objectives Establishing long-term contracts and good relationship with at least ten clients Establishing a minimum of 95 percent satisfaction rate to our customers to establish a long-term relationship with the company’s clients To significantly increase the gross margin by year three of operations To achieve 20 percent of the value of market by year three of operation Reducing competition and risks, and lowering price levels by establishing a joint venture with a reputable company who has experience in structural engineering services (Pinson 20) Mission statement Our mission is to provide structural engineering services to clients across the United Kingdom. The engineering services to offer will be for all types of buildings, ranging from concept planning to completion. The company will use highly skilled and professional team working together, using practical experience and common sense to undertake its projects. The StructureAll Limited will provide innovative approaches to structural engineering services and it will build a long-term relationship with the company’s clients, delivering excellent services in time and in cost-effective manner (Alleny 130). Keys to Success Providing quality services on time and on budget. The right management team and capable workforce: It should have strong foundations in marketing, services development, and management. Our workforce will be skilled and professional. Implementation and maintenance of quality control and assurance policy. COMPANY SUMMARY StructureAll limited will offer complete civil and structural engineering services. The company will put most focus on the residential, commercial and industrial sectors.The company will deal with projects, which will involve renovations, rehabilitation, additions, and new construction. The company offers economical and innovative design services while maintaining the state-of-the-art design technology. In addition, structureAll offers cost effective and good quality services in engineering design, project management and construction and construction management (Flyvbjerg, Holm, and Buhl 131). Company ownership Three promoters will privately own the company. These promoters will employ people to manage the production and implementation of services of the company (Pinson 72). Startup summary Start-up expenses will allow for initial legal expenses, permits, stationary, office equipment, furniture, specialty software and licenses. In addition to the start-up costs, an initial amount will be deposited in the company’s accounts. The three promoters will equally contribute to the overall start-up costs. Company location and facilities We will establish our main office at Canada to reduce start-up costs. The office will be approximately 150square feet. Fast internet connection and a dedicated fax line will be installed. A comprehensive website to act as a marketing tool will be developed. The website will go by the name, www.structureall.com (Pinson 70). SERVICES StructureAll limited will offer complete civil and structural engineering services. The company will put most focus on the residential, commercial and industrial sectors. The company will deal with projects which will involve renovations, rehabilitation, additions, and new construction. The company offers economical and innovative design services while maintaining the state-of-the-art design technology. In addition, structureAll offers cost effective and good quality services in engineering design, project management and construction and construction management (Flyvbjerg, Holm, and Buhl131). Service Description Forensic Investigations: structureAll Ltd will troubleshoot damaged or failed buildings. The company will describe the problem that occurred, the mechanism that has caused the damage or failure and remedies for the problem. Dispute Management: using our broad construction and administration experience, dispute resolution services such as arbitration and mediation will be offered. Restoration Engineering: the company will offer design, condition survey and construction review services for maintenance and repair of structures. Contractors: StructureAll will offer design/build services to contractors in the potential projects the government has taken recently. Structural engineers are required by contractors to provide sealed alternatives for equivalents to construction details (Flyvbjerg, Holm, and Buhl 265). Future services Quality control and Assurance: we will offer services in the welding industry while ensuring certified firms and their employees have the qualification to perform particular welds in accordance to the Canadian welding Bureau. Fabrication and Detailing Drawings: StructureAll will work towards offering special needs in steel and concrete construction. MARKET ANALYSIS SUMMARY StructureAll Company will focus mostly on Engineering and traditional architect contracts (E/A). The owners will contract planning and design services to A/E. The market for engineering and building services is summarized in the groups below: Established architectural and engineering firms: Typically, in any building project, a prime consultant pre-selects his team members and improves their strengths in a proposal call to clients (Alleny 130). Territorial and federal government Departments: The governments of the Canada retain consultants for various purposes. Our intention is to position ourselves as a local company offering expertise in project management, forensic, consulting and restoration engineering. Law Firms: structureAll will market its services to the legal community to offer arbitration, dispute resolution services and mediation. Forensic engineering services support this work to aid the process of identifying the cause of failures (Flyvbjerg, Holm, and Buhl 284). Contractors: StructureAll will offer design/build services to contractors in the potential projects that the government has taken recently. Structural engineers are required by contractors to provide sealed alternatives for equivalents to construction details Competition and Buying Patterns Billing rates and pricing of projects vary in time. At this level of business, the pricing should be low. Clients like to pay fees for the best quality service. StructureAll specialises in offering structural and building engineering services. This niche is valued at 6$ million in Canada area, and there are two main competitors: Montana Engineering Inc. and Civitech services (Flyvbjerg, Holm, and Buhl138). The complete turnover of the above is about 2$ million. STRATEGY AND IMPLEMEBTATION STRATEGY StructureAll will initially focus on the northern Canada. We, however, anticipate the creation of Canadian association of structural engineers is to aid in providing structural engineering services. Promotion, Pricing and Sales Strategy The company will use the internet extensively to promote the sales. Major players in the marketplace will be made aware of our presence by using the internet together with a well-targeted direct mail and email campaign. Structural engineering as a carrier choice will be advertised to elementary and high schools in remote communities (Siegel, Ford, and Bornstein 70). Consulting work is paid on an hourly basis. Our company has assigned $90/hour rate for basic consulting services and $45/hour rate for drafting services. There will be no negotiations for bill rates. However, exceptions will be allowed for non-profit-organizations. The company will study projects granted to them to avoid pitfall buying of projects and less remuneration for the projects. MANAGEMENT SUMMARY Management team StructureAll Ltd will have a director, a company secretary and a managing director. Other employees will include the officer managers, Sales people, technicians, accountants, clerics, bookkeepers, legal officers, human resource managers and finance managers (Siegel, Ford, and Bornstein 25). When projects are secured, project officers will be hired and project staff recruited. The organization of the project manager will include the procurement, engineering and construction divisions. The expertise of the primary promoters has allowed a natural division of responsibilities as shown below: Directors: Operations and Engineering Management 15 years manufacturing experience Production scheduling Resource allocation Work assignment People management Health and Safety, Quality controls and Training Company Secretaries: Administration and control Assistant Manager in Lions Group Certified Diploma in Accounting and Finance (ACCA) Dip. In Personal Management Managing Directors: Sales and marketing 18 years in structural engineering industry (project management) Degree in civil and structural engineering Self-employed for 16 years Personal Plan Staff Requirement YEAR 1 YEAR 2 Directors 1 3 Managing director 1 2 Human resource Manager 1 3 Officer Manager 5 3 Finance Manager 1 2 Legal office 1 1 Secretary 1 4 Clerical 3 5 Technicians 5 1 Accountants 2 4 2 4 Sales people 6 8 Bookkeepers 3 6 total 30 42 FINANCIAL PLAN The financial plan gives an overview on the following items: Break-Even analysis Business Ratios Projected Profit and Loss Important Assumptions Projected Cash Flow Key Financial Indicators Projected Balance Sheet Important Assumptions 1. The economy is assumed strong without recession. 2. We assume that the formation of Canadian Association of Structural Engineers will not change the delivery of structural engineering services. Key Financial Indicators The benchmark below shows the first three years’ projection of StructureAll Ltd key financial indicators. There will be gradual growth in sales and small reduction in operating expenses (Siegel, Ford, and Bornstein 25). Projected Profit and Loss The company has targeted a high gross margin in the initial year of operation. In the next consecutive years of operation, the company has targeted increased gross margins to indicate improved efficiency at service delivery. The company will purchase software on quarterly option in order to reduce startup costs and fulfill the mission statement requirements. Staad-Pro Core, which is a structural design and drafting software, will be purchased on four payments, each $1550. Web- hosting fee will also be paid on quarterly basis to the internic.com. Projected Cash Flow Our success will be determined by cash flow projections. The illustration below shows the monthly cash flow. One bar represents the cash flow per month while the other bar represents the monthly balance. (Flyvbjerg , Holm, and Buhl 251). Works cited Alleny, Jude. Marketing Your Event Planning Business: A Creative Approach to Gaining Competitive Edge. New York: John Wiley &Sons, 2010. Print Flyvbjerg, Bent, Mette Holm, and Soren Buhl. "How (In) Accurate Are Demand Forecasts in Public Works Projects?"Journal of the American Planning Associations 71.2 (2005): 131-46. Print. Flyvbjerg, Bent, Mette Holm, and Soren Buhl. "Underestimating Costs in Public Works Projects: Error or Lie?"Journal of the American Planning Association 68.3 (2002): 279-95. Print Pinson, Linda. Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future. Chicago: Dearborn Trade, 2004. Print Siegel, Eric, Brian Ford, and Jay Bornstein. The Ernst & Young Business Plan Guide. New York: John Wiley and Sons, 1993. Print. Brian R. Ford (Author) › Visit Amazons Brian R. 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