Fluent Essays

Research the operational components of DLCC (business plan attached). Based on your research and the knowledge that , create a 4- to 5-page operations plan by completing the following tasks:Define the management team by drafting an organizational chart and a plan for hiring employees.Draft the key employee policies and a code of ethics.Provide the details on the workplace environment, the location of the business, and the facilities necessary to operate the business. If a virtual component is a part of the workplace, explain how that is going to be incorporated.Describe the supply chain of the venture, with its main components and its management approach.Describe the manufacturing or customer service processes, discussing economies of scale and plans for attaining those economies (if applicable).Discuss significant innovations related to the delivery process, production (if applicable), inventory management (if applicable), and distribution.Describe methods to define and ensure the quality of the products or services.Discuss laws impacting the business and methods for compliance with federal, state, and local tax laws. Research the operational components of DLCC (business plan attached). Based on your research and the knowledge that , create a 4- to 5-page operations plan by completing the following tasks:Define the Running Head: BUSINESS PLAN Dave Logistics Consulting Company (DLCC) David Roberts Argosy University Dr. Noone Venture Description Issues in the airline pose many challenges to society. The emergence of Dave Consulting Company, DLCC aims to solve the problems in the airline industry by working with both public and private airlines in Florida. Some of the airports that Dave consulting group will be working with include the Orlando international port, Tampa International, Miami International airport as well as Fort Lauderdale International and executive airport. The impact of the airline industry within Florida is enormous, and this is the key reason as to why Dave consulting and logistics firm wants to work with the best airports in Florida (Epstein, 2017). Working with five of the 66 airports will help improve the state of the industry and identify some of the challenges that the industry faces. The airline industry is categorized into the commercial, general and the military aviation service. However, Dave consulting company focuses on working with the five airports to ensure that the services offered are appreciable. The airline industry is one of the most significant contributors to the global economy. Achieving global standards requires extra skills and knowledge from airline professionals. Dave consulting company seeks to elevate the status of the five companies by offering consultative services to the companies. It can create a healthy competition and increase the marketing margins based on the satisfaction levels (Petrović, & Bukvic, 2018). As a unique brand, we aim to offer consultancy services in business systems and performance improvement. The business systems will focus on the marketing aspects, advertising and the new techniques that can be implemented in the business. The concept, Mission and Vision of DLCC DLCC Concept Two entrepreneurs who are former employees of Charter airlines and Porsche Company developed the business plan concept. The two entrepreneurs Scaffold and David have a crucial objective of creating a business venture that suits the market and remains competitive. It is defined by the passion and years of experience that they have in the field. DLCC Mission The company mission statement To be the best airline to employees, clients, and brand in the society which can lead to the establishment of the corporate social responsibilities in the air connectivity services. DLCC Vision DLCC aims to shape the American aerospace by offering commercial services that are reliable and sustainable to the society. Working with the best airports to provide transport systems can make Florida and America space secure territory. Values and culture The company values the safety of the clients. Thus, the areas it seeks to strengthen are credibility, integrity, and responsibility. As a competitive environment, DLCC will promote honesty in all the activities undertaken by the company. It is through the creation of a culture that complies with all the duties granted. Responsible employees that work under minimal supervision create fairness between the employee and the employer and is one of the cultures that DLCC seeks to employ. The competitive environment should employ a listening ability to the clients needs to identify the areas of weakness for corrective action. A corporate social responsibility that values the employee and local community needs remain a key priority. The company seeks to remain environmentally friendly by using components that are pollution free. Furthermore, improving the state of the community through the services provided creates a competitive environment that values the client. The company seeks to remain a unique brand based on the services offered. Justification While working at Charter flights, I realized that the company operations did not value the employee and the clientele safety was not up to standard. Due to the passion I had in the hospitality industry, I took a step closer to the realization of my dreams. I opted that venturing into the logistics and consulting services can create competition with other flight companies that do not offer consultancy. Incorporating consultancy was to market DLCC and become a brand of its choice. The structure of the company was also a priority, and that is why DLCC was set up to take care of the employees need. Understanding the state of the employees and employers became the driving force. The first airplanes were set in Miami international airport. To remain suitable in the market, we lowered the price of the air ticket. This was to attract the clients of all types. While working at Charters, I felt that corporate social responsibility was not sufficient. Both social, economic and environmental matters were not addressed. Primary focus by the Charter Company was on the ecological and economic responsibility with a little emphasis on social issues. Addressing the social welfare of both the employer and the employee was not valid. This led to team up with my fellow partner to create a business model that could focus on all the elements for competitive purposes. Research Methods Before creating my business plan, I conducted research to identify the gaps that are experienced in the airline industry. The airline industry contributes heavily to the GDP and the global economy. However, maintaining competitiveness remains a challenge due to poor follow up of services. The most growing industry stands to be the airline industry. However, the differential among the companies is the performance of the corporate social responsibilities (Eriksson, & Steenhuis, 2015). Part of the research was done by use of questionnaires and surveys where the respondents gave their feedbacks of other companies and what they feel should be improved. SWOT analysis While conducting the research, I realized that one of the weakness that we shall face is slow integration into the market and the financial start up issues as the firm intends to attract a larger market within a shorter duration. The costs that are high cause a challenge and thus the establishment of the DLCC would focus on the conversions of services into profits (Axtman, & Wilck, 2015). Despite the weakness that is being faced by other companies, I feel that the significant threat that we will encounter is competition from the already established companies. Since competitors have issues in balancing the air travels and cost restructuring, DLCC seeks to ensure that it benefits from the unit costs by adjusting the travels to ensure issues of flight congestion are not present. This will create a competitive environment and grows over the years. When evaluating the strengths, I realized that the company would be beneficial to society. DLCC will become a leading consultancy firm in the US domestic market with proper structuring and investment. The ability to work with the best aircrafts will ensure that we identify some of the areas where we remain a regional force. The other strength of the consultancy firm will be its ability to identify the gaps and find competitive solutions. Turning weaknesses into strengths will enable the company to grow beyond limits (Mayo, Nohria, & Rennella, 2016). The strengths that the company relies on is a clear indicator of the extensive research that I did to ensure that there is no complacency in the market force. References Axtman, S. J., & Wilck, J. (2015). A review of aviation manufacturing and supply chain processes. International Journal of Supply Chain Management, 4(4). Epstein, C. (2017). Florida airports, FBOs slowly return to normal. Aviation International News. Eriksson, S., & Steenhuis, H. J. (Eds.). (2015). The global commercial aviation industry. Routledge. Mayo, A., Nohria, N., & Rennella, M. (2016). Entrepreneurs, managers, and leaders: What the airline industry can teach us about leadership. Springer. Petrović, D., & Bukvic, R. (2018). Contemporary Trends in the Development of Industry in the World and Serbia. Research the operational components of DLCC (business plan attached). Based on your research and the knowledge that , create a 4- to 5-page operations plan by completing the following tasks:Define the Running Head: THE MARKETING PLAN 0 Dave Logistics Consulting Company (DLCC) David Roberts Argosy University Dr. Noone Marketing Plan Targeting Dave logistics and consulting Company intends to cover a wide area in the near future. Thus working with the five airports is just but a stepping-stone for the future. Before, the entry into the market, extensive research will be conducted by involving people working in the airline industry to give their opinions of how they perceive the industry and what areas should be of interest (Schlegelmilch, 2016). Employing such an approach increases the depth of working, as the clients will give their opinions. The use of interviews and questionnaires was employed to get the opinions of different stakeholders, and clients in the market. As technocrats with experience in the airline industry, there vision and opinions was to help in expanding the market regions and offering subtle services to the people. Interviewing the people creates an interaction section where an individual can open up his or her mind for effective service delivery. Ideally, friends form part of business developers, as they are comfortable with any information that can help the people. We interviewed most of our friends to give us their ideas on the ways on which we could get more clients apart from the regions we had earmarked in Florida (Schlegelmilch, 2016). Some of the questions that we will interview friends will focus on the ways of improving the business, which marketing approaches should be used, promotion services that can be implemented to reach the market as well as the regions that the company should focus on for extensive maximization of services. The questionnaires will be designed in an approach where there is maximum anonymity. Getting views will not be limited to the people living in our areas of focus, but other regions, as well as the company, aims to offer services within all states in America. As a start-up, the target regions will be improved upon commencement of the services. Identifying the ways that our competitors started their businesses is one approach that can enable as become a competitive force in the market. Extensive research will be done through secondary sources to identify the startup finance that they used, which promotional services that were used, the charges that were set while getting into the market as well as the identification of environments of operation. We intend to ensure that our services are felt, and we cover a more extensive market apart from the regions of establishment (Tybout, & Ragsdale, 2017). Expansion after establishment can increase the market margins as well as create more opportunities for the people both directly and indirectly. While establishing the business, the first airports that we shall work with are Orlando international port, Tampa International, Miami International airport as well as Fort Lauderdale International and executive airport. One year after establishment, we intend to expand our market base to Orlando Sanford international airport, Daytona Beach international airport as well as Fort Walton Beach airport. This remains our target areas after establishment of the business in the primary regions. The presence of beaches and other tourist activities within the target areas indicates the extensiveness of the market. Moving to such areas after establishment will improve the status of the company. However, much our vision focuses on expansion, the primary market that creates our reputation is the primary regions (Tybout, & Ragsdale, 2017). It is not possible for the company to grow to other areas without improving the market conditions in the startup regions. The services that will be offered by DLCC will be extended to increase the market region. Converting companies from loss-making to profit-making is the critical agenda of the companies. The engagements of the company will focus on airline operations, network planning, the marketing strategies as well as reservations and distributions control. Expanding the regions of work will target a large market as many airline companies may require our services based on the gaps that are experienced. Ideally, the market will not focus on one company plane (Camilleri, 2018). We intend to work with planes that move within those primary regions from any company. Positioning Statement DLCC aims to improve the airline industry through its consultative services. Working with airline companies remain the primary objective. Thus, entry into the five airports to offer dynamic services that are affordable and convenient will help create a name for the airline companies that are facing issues (Camilleri, 2018). Sustainable growth and profits will be obtained as a result. Products and Services DLCC focuses on being the best in the market. Some of the products and services that will be offered under its profile include market positioning of the airline companies, corporate imaging, communication and advertising to create a competitive environment. Providing business services and operational management services forms part of the basic of DLCC. Business services: Dave logistics and consulting company has a significant purpose of ensuring that the marketing and advertising services of the company are effective. Thus, improving the state of the airline can be done when there is a proper marketing strategy. Marketing can be done when there is control of the prices. We seek to ensure that the services offered to the people are satisfactory and the rates are accommodative to all. Operational management: Dave logistics has specialized in monitoring airline operations. In the process, proper strategies can be used that improve the state of the company. Offering services in the airline operation through the implementation of mitigation measures can help solve the issues in the airline industry. Reservations and any distributions within DLCC shall be controlled for the benefit of the company. It exemplifies the target of the services and products that shall be offered within the airline industry under the company policies. Pricing Strategies Satisfaction is achieved when the prices are considerate. In DLCC, we intend to conduct a comparative analysis with our competitors. Setting prices based on the analysis of the market and its competitors can provide long-lasting issues. Since the objective of the company is to offer services to the clients at affordable rates, we intend to subsidize our prices to ensure that they are cost effective. The business services under appropriate prices can cause intense competition, as the prices will be favorable. The other approach that we shall use to ensure that the prices are friendly is through a consultative approach with the client companies. Setting prices based on a delineated approach is useful, as the two parties will agree of the set prices. The price of each service will thus be provided to avoid working without a clear basis. The terms of agreement will thus be hourly, daily, weekly and monthly set depending on the requirements of the clients. Therefore, the programs and services will have specific prices to avoid conflict of interest among the clients and other parties. Promotion Plan as a marketing strategy The use of different promotional strategies will be implemented to attract the market segment. In any business environment, promotional services are applied as marketing strategies to improve both performances and introduce the business to new clients or opportunities. One of the marketing approaches that shall be used by the company is the online marketing approach. Online marketing is a practical approach that introduces products and services within the shortest time possible. The tools of use in the marketing process are Pinterest, Facebook, and Ads on the Google platform as well as Twitter. This tools will market the company and improve the performance of the company(Andrews, & Shimp, 2017). The exposure created when using the online platform is quite fast. The company intends to start in five airports. Promotional strategies that will be used when starting the company are T-shirts, Caps as well as badges. Offering airline staff with company T-shirts and caps will advertise the company, as potential clients will have an interest in knowing what our company provides. Our clients shall also be provided with a badge that bears there company name and our company name. It will introduce as new clients who will want to enjoy from the promotions offered to our clients (Andrews, & Shimp, 2017). Therefore, promotional strategies will be effectively utilized to ensure success. Creation of local programs to inform the clients is the other promotional strategy that can be initiated. The local events may include the customer care week. Award of the best employees and company per airport through certification programs can help shape the destiny of the company. The clients will be motivated and thus offer more opportunities for the company. Local events organized as part of the corporate social responsibilities can create a name for the company. This is through training of the clients on the best approaches that can be implemented in the company. Staff tournaments can be used to market the company. Through the competitions, other clients may want to join the program to be part of the team. This expands the network of work improving the state of the company. Target Locations and Viability We intend to start in the five airports in Florida. After 2-3 years, we shall expand our market base to Orlando Sanford international airport, Daytona Beach international airport as well as Fort Walton Beach airport. Expanding into the new airports will depend on how we are received in the five airports. It will be a measure of our success. Succinctly, our five airport regions are Orlando international port, Tampa International, Miami International airport as well as Fort Lauderdale International and executive airport. Our prime focus is entering airports that are close to tourist attraction sites. The airports close to tourists zones are busy with maximum activities due to the entry and exit of airplanes to the different destination. We intend to work with some airplanes due to the numerous activities present at the airports with limited consultancy services due to the excessive commitments. Working in the regions that have more activities will likely increase our market base as we intend to create a competitive atmosphere (Venter et al., 2014). The operations within the airports will determine the viability of the business References Andrews, J. C., & Shimp, T. A. (2017). Advertising, promotion, and other aspects of integrated marketing communications. Nelson Education. Camilleri, M. A. (2018). Market Segmentation, Targeting and Positioning. In Travel Marketing, Tourism Economics and the Airline Product (pp. 69-83). Springer, Cham. Schlegelmilch, B. B. (2016). Segmenting Targeting and Positioning in Global Markets. In Global Marketing Strategy (pp. 63-82). Springer, Cham. Tybout, A. M., & Ragsdale, K. (2017). ThoughtWorks (A): Targeting and Positioning Basics for a Services Firm. Kellogg School of Management Cases, 1-12. Venter, O., Fuller, R. A., Segan, D. B., Carwardine, J., Brooks, T., Butchart, S. H., ... & Possingham, H. P. (2014). Targeting global protected area expansion for imperiled biodiversity. PLoS Biology, 12(6), e1001891. Research the operational components of DLCC (business plan attached). Based on your research and the knowledge that , create a 4- to 5-page operations plan by completing the following tasks:Define the Running head: FINANCIAL PLAN 0 Dave Logistics Consulting Company (DLCC) David Roberts Argosy University Dr. Noone Capital and Start-Up Requirements DLCC is a startup company that intends to employ approximately 16 people each per airport. The company intends to purchase six working stations with business assets of estimated value of $150,000, $140,000,$160,000,$170,000,$150,000 and $2100,000 in business assets. The cumulative figure required in the purchase of the six working zones amounts to $980,000. The cumulative housing estimates of the working stations are $1,300,000. The business assets present are the website and stationery estimated at $100,000. The company has options to increase to other regions in the future. The cumulative asking price for all business assets and the buildings is $2,380,000. As business partners, we have the letter of intent and a Startup agreement $1,800,000. Upon acceptance of the business transaction, there will be an outstanding debt of $580,000 that will be spread across the six working stations due to negotiations of premise owners. Different pricing models will be applied in revenue collection. For instance, technological consulting services will be based on the type of plane, the size of the plane and the carrying capacity of the plane. The average price of the consultation will be $3000 As a partnership business, the profits from the firm will be shared at a ratio of 1:1. As a startup business, there shall be duties distributed along the leadership structure. The company intends to have directors within all the stations. The directors will report the happenings to the owners of the company. Each working station will have a certain number of employees with the total number of employees in the company estimated to be 92. The leadership chart of the structure consists of: The technical director and executive director are tasked with overseeing the operations of the junior staff in all the stations The investor shall be entitled to 30 percent profits during the business success. The partners who happen to the chairpersons shall be entitled to 50\% of the profits. The partners are entitled to a cash equity of $600,000 each as starting capital. Bank loans, administration fees, legal fees, licenses as well as additional fees will be required to start the business. Some of the fees will focus on the advertisement of the firm as well as operational cost. The charges shall be utilized during the first 2-3 months for the stability of the company. The cash at hand shall remain constant and will be spent in exhaustion of the operational costs. Sources of Funding Our sources of funding will be from the cash equities, investors if any and bank loans. Estimated cash equities from the partnership are $1,200,000. The remaining cash shall be collected from macro lending institutions. Bank of Central Florida and the First Bank of Florida have been earmarked as the lending institutions that shall cover for the business. The asset worth of the company shall determine the terms of agreement for the loan. Estimations indicate that the loan should take a maximum of 10 years. The bank is to offer $600,000 with a capped interest rate of 4 percent. The service fee for the loan is to range between 1.5\% and 2.8\% depending on the terms of the agreement of the bank loan. Ideally, the total average rates for the loan should range between 5.6\% and 6.8\% (Bankrate, 2016). Working with terms of the best lending institution remains the aim of the company. Payback period It is the time required in the recovery of investment costs. The payback period determines the feasibility of the project. The time value of money is not factored during the payback period. Consideration can be provided on the net present value as well as the internal rate of return. Cash Flow projections Cash flow projections are vital as they give a snapshot of the cash transactions regarding inflow and outflow. During the first month, a cash flow analysis reflects $80,000 line of credit shall be used to cover the costs of operations in the company. The accounts receivable collected will be used to cover any other expenses. Funds from the line of credit shall be repaid as accounts receivable. It is a measure to improve the business transaction and avoidance of running the company on funds from the line of credit. A planned repayment of 10\% shall be made to the owners of the six-leased premises hired after the 6th month of establishment. Leasehold agreement requires that the payment plan of $580,000 be made within 18 months. The revenue collected and the cash projections indicate that the cash flow will be sufficient to give an investment of 17\% on the total 1,200,000 initial investment. Short-term forecasts aim to address the minor issues and ensure the stability of the company. The long-term cash flow projection for the company shall be used to check on the progress and cover the costs within the company. The cash flow predictions of DLCC are based on the time of the year. The high values in the cash flow is based on the seasons and the activities that are being conducted. End of First Year Balance Sheet Dave consulting and Logistics company Balance Statement 12/31/2019 ASSETS Current Assets       Cash $1,060,000 Accounts Receivables   $350,000 Stationeries ad inventories $100,000 Fixed Assets   Property $1,300,000           Total Assets $2,810,000     LIABILITIES Current Liabilities   Account payable $580,000 Overdraft $430,000 Long Term Liabilities   Bank loan $600,000 Total Liabilities     $1,610,000     OWNERS EQUITY Investment capital 1,200,000     TOTAL LIABILITIES AND OWNERS EQUITY $2,810,000 The first year of business transactions shows the accounts receivable, stationeries, inventories as well as the cash at hand. The liabilities include the bank loan, overdrafts as well as the account payable. The investment equity is a representation of the investment capital that was provided by the business partners. Income statement for the year 2019 Revenue $530,000 Direct sales expenses 105,000 Gross profit 425,000 Expenses Advertising 60,000 License and permits 55,000 Bank Charges and fee 3000 Interest expenses 3600 Subscription fee 8000 Insurance cover 70,000 Payroll fees 4500 Maintenance fee 1000 Taxes 43,000 Temporary labor 13,000 Wages 215,000 Total expenses 476,100 Net loss ($51,100) The revenue is a representation of the amount collected during the financial year. DLCC collected $530,000 during the first year. Direct sales expenses of the fiscal year was $105,000. Obtaining the net profit was done through deduction of the revenue and direct sales expenses. The net profit was subject to total deduction from the expenses. Cumulatively, the total expenses from the services offered amounted to $476,100. As a startup business, there were a lot of transactions done that gave a net loss in the projected year of operation. The net loss was -$51,100. Projected Gross Revenue, Gross Profit, and Net Income for the first year The Gross revenue projected in the first year was $530,000. It represents the total cash that is collected in the whole year. The gross profit obtained during the projected year was $425000. However, this fee was subject to deductions from the direct sale expenses. The net income was obtained after deductions of the gross profit from the total expenses to give a net loss of -$51,100. Break Even Analysis It is determined by evaluating the business regarding sales, revenues, total costs, and operating income. The total revenues should equal totals costs to ensure that the operating income gives zero. It helps in knowing situations in which a business may realize profits or losses. Break even Analysis Sales price per unit $3,000.00 Variable Cost per unit $1,200.00 Fixed Cost $90,000.00 Breakeven volume 50 Breakeven revenue $150,000 Targeted Net Income $180,000.00 Calculated Volume 150 The anticipated selling price per unit for the company services is $3,000. The variable cost is estimated at $ 1200 while the fixed costs will stand at $ 90,000.The contribution margin for the company is $ 1800 (3000-1200). That implies that the breakeven volume will be 50 units (90,000/1800). Then to obtain the targeted income of $180,000, the company will need to sell 150 units (180000/1800 + 50) Ratio Analysis DLCC Year 1 Industry Liquidity Current Ratio 1.36 0.55 Quick Ratio 1.40 0.76 Profitability Gross Profit Margin 0.8 0.08 Solvency Debt to Equity 0.98 1.0 Financial Strength (Market,2018)(U. S. Aviation industry). Liquidity was based on some factors. For instance, the current ratio was obtained through the division of current assets vs .the current liabilities. The computational analysis gave a figure of 1.36. On the other hand, the quick ratio was obtained where the current assets were exclusive of inventories divided by the current liabilities. Computational analysis gave 1.40 the quick ratio. Obtaining the industry analysis of both the current and quick ratio was evaluated by computation of operational industries. Profitability was obtained through evaluation of the gross profit against revenue. The value obtained in this scenario was 0.8. Furthermore, the debt to equity gave a figure of 0.98 (Burke, 2016). The values were obtained by computing the debts vs. the equities in the business. Risk Assessment Operational Risk The risks in running a business may require much currency and a lot of investment to run the business. As a result, the operations may be paralyzed, as the business needs a lot of financing for operations. It hampers the progress due to the capital startup. To avoid the operational risks, a proper leadership structure will be initiated to cater for any issues that may affect the operations (Reason, 2016). Proper management plans can be utilized. Environmental Risk Changes in the environment hamper the flight industry. The total travels reduce, as the weather is unfavorable for travel. It requires a proper plan to mitigate the environmental risks. One of the measures that will be applied is through training the employees on safety. The employees should be conversant with their safety. Safety on fire measures can also be implemented to the staff. (Stolzer, 2017). Raising awareness is an appropriate response to the problem. References Bankrate. (n.d.). Calculator. Retrieved November 1, 2016 from: http://www.bankrate.com/calculators.aspx?ic_id=home_smart-spending_calculators_globalnav Burke, A. (2016). The Definition of Liquidity in Finance. Small Business Chronicle. Retrieved November 1, 2016 from: http://smallbusiness.chron.com/definition-liquidity-finance-36477.html Market, C. (2018). Airline Industry financial strength, leverage, interest, debt coverage and quick ratios. [online] Csimarket.com. Available at: https://csimarket.com/Industry/industry_Financial_Strength_Ratios.php?ind=1102 Reason, J. (2016). Managing the risks of organizational accidents. Routledge. Stolzer, A. J. (2017). Safety management systems in aviation. Routledge.