Analysis Of Jolly’s Java And Bakery And Mahogany Western Wear Business Plans And Fast Track Couriers

Parameters

The two-business plan selected for analysis are “Jolly’s Java and Bakery (JJB)” which is a bakery business plan and “Mahogany Western Wear” which is a clothing retail business plan.

Parameters	Jolly’s Java and Bakery (JJB)	Mahogany Western Wear
Good text book structure and layout Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	The business plan has followed a basic structure by stating necessary information about the company, products and services, the market and financial considerations.	Business plan for clothing to do business has included a company ownership structure along with all the other basic topics such as startup financial information, product description, technology used and future products (Featherstone and Featherstone 2015).
Quality and relevant information	The information provided in the business plan is seen to be relevant as per the legal requirements prevalent in the state of Washington.	The business plan has included every detail of its competitors and sales literature
Good market analysis and risk analysis	The market analysis is done by a brief research on the present bakery business in South Washington District	The market analysis is done by depicting primary target customers and secondary target customers
Specific and realistic performance measures	The data provided is absolutely realistic in nature	The data is relevant to the present standing of Houston, TX in southwest Houston, TX
Understandability and appropriateness, well documented	The business plan is easy to understand for any individual event from non-financial background	The business plan has shown significant use of statistical information and graphs which requires intermediate knowledge of financial data (Thébaud 2015)

The strength of Mahogany Western Wear includes a detailed analysis of sales, gross margin and net profit for three years. However, it suffers from a very high breakeven point of $ 117000 by month in sales. The main recommendation is seen with improving gross profit margin.

The strength of the Jolly’s Java and Bakery is identified with a sound personal plan which is able to control the total payroll cost for two years. However, the business plan suffers from increasing current liability in the subsequent years. The recommendation for the bakery business is discerned with putting an augmented focus including a monthly sales forecast (Thébaud 2015).

The study aims to relate business services, market activity, “Productivity and performance targets for key result areas, Financial and Non-Financial Performance measures” and evaluation of resource requirements such as human resource, capital and equipment. The forecasts have included total start-up cost of the development activities with an amount of $ 14871600 and equipment cost of $ 25220000. In addition to this, the profit percentage is discerned with 9.79 % in the first year, 14.35% in the second year and 23.41 percent in the third year. The total sales amount for breakeven is depicted with $ 588000. 

The business plan is related to a courier company named Fast Track Couriers. Some of the main interpretations of the report will include identification of business services, market activity, performance and productivity targets for “key result areas”, “Financial and Non-Financial Performance measures” and evaluation of resource necessities such as human resource, capital and equipment. The report also aims to show the management and organizational structure along with financial background. The latter part of the study has included a risk analysis and information on licensing procedure. In addition to the aforementioned sections, the development of this business plan is followed with a sound communication plan which is discussed about the stakeholder’s information, timeline, method of communication and monitoring procedure (Thomas et al. 2014).

Fast Track Couriers operating in “New South Wales” for last 15 years is seen to be providing packaging services from medium to large sized packages in metropolitan Sydney region. The business is considered to be having a target market of small to medium-size business which makes up 80% of the customer base (Pauceanu and Pauceanu 2016).

Good text book structure and layout

The main business products and services of the company is seen with logistics and packaging services for small and medium-sized business in the Sydney metropolitan area. The delivery services will comprise of several types of special packaging considerations for perishable items, fragile items and regular items. The containers will be designed in a specialized way to ensure that for the delivery of perishable items such as food, vegetables and dairy product the business as Emperor number of reefer containers. Similarly, for fragile items the packaging is done with more care and specialized packaging techniques (Snedaker and Rima 2014).

The marketing channels are put to use with direct sales, mailing, Internet listings and telephone. The company ensures that the customers are followed up on regular basis via telephone, which ensures the world satisfaction of the business proceedings 

• Productivity and performance targets for key result areas- The productivity focus will be implied with reducing the lead-time, improving operational initiatives along with addressing of personnel problems existing in the courier company.
• “Financial and Non-Financial Performance measures”- The financial performance measures will include a monthly cash flow forecast for 12 months along with interpretation of growth in gross profit over selected timeline. This will include estimated sales of $ 22 million over the period of one year, estimated net profit of 3.2 million and operating costs of 2.2 million. The non-financial performance measures will focus on achieving the strategic objectives such as improving delivery to regional areas of New South Wales. The other non-financial concerns will be addressed with improving the current work environment by deploying two-man team for the drivers (Duening et al.2015).
• Resource Requirements, including capital equipment, human resources-the main resource requirements are classified in form of financial requirement and personal requirement. The estimated capital equipment need is seen with an investment of $ 100000. The human resource need is considered with a total budget of $45,000 per annum for the drivers and $ 32,000 to $ 75,000 for the employees posted at the head office. The employee demographics for mainly consist of male employees aged between 25 to 65 years (Pauceanu 2016).

The organizational structure is seen to be including a managing director- accountable for handling the everyday decisions related to operations, “logistics manager-responsible” for scheduling the drivers and trucks and five office support employees for administration, human resource, sales and maintaining of accounts. A detailed view of the organizational plan is presented below as follows: 

• Forecasts-The total start-up cost of the development activities is discerned with an amount of $ 14871600 and equipment cost of $ 25220000. In addition to this, the profit percentage is discerned with 9.79 % in the first year, 14.35% in the second year and 23.41 percent in the third year. The total sales amount for breakeven is depicted with $ 588000 (Entrepreneur.com 2016).

Risk	Likelihood	Impact	Strategy
Increasing price of petrol	Highly Likely	High	The company should make some provision to buy lightweight vehicles which require the lesser even for carrying a full truckload (FTL).
Increasing cost of maintenance	Likely	Medium	The company should depend on long-term policies for servicing and insurance to ensure even in case of increasing maintenance cost is able to minimize the costs due to higher insurable/maintenance amount (SBA US Small Business ADmin 2016)
Resigning of employees or truck drivers	Highly Likely	High	Some of the existing drivers and management employees are having experience of more than 12 years and their absence can create lot of anomaly in the present operations of the business. The overall working conditions need to be improved by ensuring workplace safety, refreshment facility and other amenities for the employees (Beveridge 2015).

The licensing procedure of the business should adhere with the requirements as per “Australian Business Licence and Information Service (ABLIS)”.

Conclusion

The business plan has able to include the necessary financial and nonfinancial information as a developmental strategy. The inclusion of financial information is seen with a plan for start-up requirements, cash flow forecast, profit and loss depictions and balance sheet. The financial data has been also able to present the forecast on increasing gross profit margin. The nonfinancial plan implied is able to improve the overall working condition for the existing employees along with consideration of several types of risk factors such as resigning of existing employees, increasing maintenance cost and increasing price of petrol. The risk factors have been duly addressed with mitigation strategies (Botha and Robertson 2014). 

Stakeholders	Message	Timeline	Methods of communication	Monitoring
Suppliers	Communicating with the availability of deliveries and rate as per distance of delivery	1 week	Web Chat	ERP
Customers	Seeking for individual customer deliveries	1 month	Telephone, Email	Online chat personal
Third-party logistics	Knowing about the price of deliveries in case of excessive demand for the existing fleet of trucks	6 months	Telephone	Third-party logistics company website
Vendors	Knowing about the needs of wholesalers for particular set of items	1 week	Telephone, Email and web chat	ERP

The key performance objectives are discerned with quality, speed, dependability, cost performance, flexibility, working conditions and personal management.

• Quality- This objective will be maintained by providing the best packaging services across long-distance deliveries so that every time the company’s ability to ensure the goods are the from any damage.
• Speed- Fast Track Couriers will ensure that it is able to deploy the best combination of vehicle as per the requirement of the service and suitability.
• Cost performance- The cost performance decisions are based on maximizing the efficiency and ensuring that the company is able to achieve most of the strategy objectives with minimum cost possible.
• Working conditions- The working conditions will be provided by ensuring workplace safety, refreshment facility and other amenities for the employees (Hitt, Xu and Carnes 2016).

Based the given information it is discerned that the current performance of average order processing time is reduced from 18 minutes to 72 minutes. The cost of processing an order $ 200 to $ 180. In addition to this that rate is aimed to be reduced from 10% to less than 1% and production of average quantity of processed orders per day will be increased from 50 to 55. The corrective action suggested for average order processing time is discerned with taking preventive and corrective measures. This can be maintained by ensuring active measures are taken once the mistake express. Preventive measures may include creating easy access to storage system for the warehouse and keeping the SKU codes simple in nature. The average cost for processing an order can be reduced by following the strategy of purchase order expense reduction. This needs to be implemented by developing closer relations with suppliers as they will be able to automate several processes thereby reducing the associated costs. The business needs to reduce the error rate by implementing techniques such as six Sigma which will aim at process improvement. This will ensure that there is an increased emphasis on reducing defects per million opportunities and have a clear focus on achieving quantifiable and measurable financial returns. Average number of orders processed per day need to be improved by automating the process of order by the implementation of software’s related to enterprise resource planning. This would be able to integrate several domains of business such as material management, finance, sales and distribution in real-time (Simón-Moya and Revuelto-Taboada 2016).

Quality and relevant information

The performance and the planned objectives has been identified in terms of reducing overall absenteeism by 3%, turnover to 8%, “long service leave liability” to $ 2 million, “annual leave liability” to $ 1.5 million, employee engagement 85% and employee attending training sessions to 45. Based on the interpretation of the actual result it can be clearly seen that B&A Toy Warehouse is not able to align itself with the warehouse goals and the employees were not clear with the objectives. It is further determined that 50% of the employees exceeded the performance expectations which are inconsistent with the warehouse and of your results. As per the interpretation of actual result, the absenteeism increased to 3.9%, turnover increased to 9.2%, long service leave liability fell short with “$ 1.8 million, annual leave liability” got reduced to “$ 1.2 million, employee engagement” reduced to 83%. It is further discerned that the employee attending training sessions that are targeted as 45 by the actual employees attending training session were only 32.

The failure of the communication plan is evident with only 80% of employees documenting for the KRA’s and KPIs. The rest 20% of the employees were not aware of the performance level expected of them. In addition to this, most of the KPIs were not listed by implementing SMART format. Henceforth, the warehouse is not able to provide the employees with clear expectations of what needs to be achieved and at what time frame. The significant failure in training is also evident with only 32 employees attending the training out of the targeted employee of 45 (Rajapakshe et al. 2017).

The suitability of the performance indicators for the orders processed is seen to be in an increasing trend. Henceforth, the warehouse needs to continue to employ the current order processing strategy for maximizing the overall order processed in a particular timeframe.

The recommendation for performance improvement strategies needs to be consistent with Preventive measures such as creating easy access to storage system for the warehouse and keeping the SKU codes simple in nature, strategy of purchase order expense reduction, automating order processing and reduce the error rate by implementing techniques such as six Sigma which will aim at process improvement. In addition to this, the employees need to be made of it of the training program and its contribution to their personal KPAs (Kudaisya 2014).

The redefining process of performance measurement include increasing the automation process.

Good market analysis and risk analysis

Development Plan

Identification of development needs	Strategy for training and development initiative	Training and development activities	Metrics to show the value of training
Understanding of KRA and KPIs for each role	Conducting question answer session, where individual employees will be able to know about their personal KRA and KPI	Conduction of seminar	To be indicated in the respective KRA and KPI form provided to the individual employees
Improving the technical domain to train and provide license to the individuals who are willing to specialise as forklift operators	Conducting physical training session to teach how to operate forklifts	Personal training session	Identification of quality of handling the forklift
Reducing turnover and absenteeism	Organizing cultural events and providing more provisions for leave benefits	The employees need to be very informed of the events of cultural activities and new policies for leave	Tracking of a monthly report to know about the percentage absenteeism and turnover (Gov.uk 2016)

Developing approach for reviewing systems procedures and work methods at “B&A Toy Warehouse”

The necessary changes in the present strategy is made with the implementation of ERP software. This will be able to integrate and track the changes in key performance areas such as material requirement planning, employee portal, finance, sales and distribution. In addition to this, the automation process will not only reduce the lead-time for material requirement, reduce holding cost but also source the best suppliers with more ease. The overall improvement plan will also ensure that operational efficiencies attend with better employee retention policy. 

References

Beveridge, C. (2015) ‘How to write a business plan: Finances & apprendices’, Crunch, (jun).

Botha, M. and Robertson, C. L. (2014) ‘POTENTIAL ENTREPRENEURS’ ASSESSMENT OF OPPORTUNITIES THROUGH THE RENDERING OF A BUSINESS PLAN’, SAJEMS NS, 17(3), pp. 249–265. doi: 10.1002/mrdd.20080.

Duening, T. N., Hisrich, R. D., Lechter, M. A., Duening, T. N., Hisrich, R. D. and Lechter, M. A. (2015) Chapter 7 – Developing and Implementing the Technology Business Plan, Technology Entrepreneurship. doi: 10.1016/B978-0-12-420175-0.00007-5.

Entrepreneur.com (2016) Elements of a business plan, www.entrepreneur.com. Available at: https://www.entrepreneur.com/article/38308.

Featherstone, S. and Featherstone, S. (2015) ‘1 – Creating a business plan’, A Complete Course in Canning and Related Processes, pp. 3–20. doi: 10.1016/B978-0-85709-677-7.00001-3.

gov.uk (2016) Write a Business Plan, www.gov.uk. Available at: https://www.gov.uk/write-business-plan.

Hitt, M. A., Xu, K. and Carnes, C. M. (2016) ‘Resource based theory in operations management research’, Journal of Operations Management, 41, pp. 77–94. doi: 10.1016/j.jom.2015.11.002.

Kudaisya, M. (2014) ‘The promise of partnership: Indian business, the state, and the Bombay Plan of 1944’, Business History Review, pp. 97–131. doi: 10.1017/S0007680513001426.

Pauceanu, A. M. (2016) ‘Business Plan’, in Entrepreneurship in the Gulf Cooperation Council, pp. 79–118. doi: 10.1016/B978-0-12-811288-5.00004-X.

Pauceanu, A. M. and Pauceanu, A. M. (2016) ‘Chapter 4 – Business Plan’, in Entrepreneurship in the Gulf Cooperation Council, pp. 79–118. doi: 10.1016/B978-0-12-811288-5.00004-X.

Rajapakshe, T. K., Vakharia, A. J., Wang, L. and Yenipazarli, A. (2017) ‘Sustainable operations’, in The Routledge Companion to Production and Operations Management, pp. 276–290. doi: 10.4324/9781315687803.

SBA US Small Business ADmin (2016) How to Write a Business Plan | The U.S. Small Business Administration | SBA.gov, sba.gov/. Available at: https://www.sba.gov/starting-business/write-your-business-plan.

Simón-Moya, V. and Revuelto-Taboada, L. (2016) ‘Revising the predictive capability of business plan quality for new firm survival using qualitative comparative analysis’, Journal of Business Research, 69(4), pp. 1351–1356. doi: 10.1016/j.jbusres.2015.10.106.

Snedaker, S. and Rima, C. (2014) ‘Chapter 7 – Business Continuity/Disaster Recovery Plan Development’, Business Continuity and Disaster Recovery Planning for {IT} Professionals (Second Edition), pp. 369–411. doi: https://dx.doi.org/10.1016/B978-0-12-410526-3.00007-6.

Thébaud, S. (2015a) ‘Business as Plan B’, Administrative Science Quarterly, 60(4), pp. 671–711. doi: 10.1177/0001839215591627.

Thébaud, S. (2015b) ‘Business as Plan B: Institutional Foundations of Gender Inequality in Entrepreneurship across 24 Industrialized Countries’, Administrative Science Quarterly, 60(4), pp. 671–711. doi: 10.1177/0001839215591627.

Thomas, D. F., Gudmundson, D., Turner, K. and Suhr, D. (2014) ‘Business Plan Competitions and Their Impact on New Ventures’ Business Models’, Journal of Strategic Innovation and Sustainability, 10(1), pp. 34–48. Available at: https://search.proquest.com/docview/1646396004?accountid=10755%5Cnhttps://sfx.bib-bvb.de/sfx_uben?url_ver=Z39.88-2004&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&genre=article&sid=ProQ:ProQ%3Aabiglobal&atitle=Business+Plan+Competitions+and+Their+Impact+on+New+.