+91-9519066910
  • My Account
  • solution

    Business

    Business Plan Assignment Help

    Rating:
    Business Plan Assignment Help


                         Business Plan

    Introduction
    Marketing plan is blueprint to focus on comprehensive documents, which outlines the advertisement and marketing in coming year. It describes the accomplishment of specific marketing objectives to set within specific period. In the study, Australia Post is considered as developing business plan and success for the business. The business plan is focused on reducing financial expensesin pricing, electric, staffs, or water of Australia Post. Australian Postal Corporation is government-based corporation to provide the postal services in Australia (Auspost.com.au, 2019). It is developed to ensure the financial business plan as enhancing the finance, social, environmental, entrepreneurial (SEE), exit strategy and milestone schedule. The study will additionally focus on accomplishing the marketing strategy to cut down the financial expenses of the organisation. 
     
     
    Financial
    Fixed Costs are certain costs. These costs are regularly incurred by the company, and they cannot be reduced or increased in the short run. These costs do not change with a change in the number of goods sold or services rendered. Fixed costs per unit are variable. Which implies that to improve the fixed costs per unit, the company has to focus on individual independent items and adjust their prices accordingly. However, this is not profitable in the short run (Gu, Simunic & Stein, 2017). 
    On the other hand, Variable Costs are costs that change in proportion to the change in the sales of goods or provision of services. Variable costs are also termed as reasonable costs. In Australian Post, the amount of variable value is greater than the amount of fixed price, which is very reasonable in any case of companies. Examples of variable costs in the company include the cost of raw materials consumed, direct labour expenses, insurance, office and administrative expenses, and many more (Hirth & Steckel, 2016). 
    The fixed and variable costs of Australia have been listed:
     
     
    The overhead costs go up by 5%. From the financial information provided about Australia Post, the total overhead costs of the company amount to $(2,800+15,000+5,100+2,200+1,800) = $26,900. Therefore, an increase of 5% in overhead costs would mean that the new overhead costs are $28,245. 
    In addition to the increase in overhead expenses, the direct labour wages go up by 3%. Considering that the current direct labour cost stands at $8,500, a hike by 3% means that the new direct salaries are $8,755. Regarding the new prices, the new break-even point of the company for the following year has been calculated.
     
    From the table shown above, it is clear that the break-even point of the company lies at $1,107. This point indicates that at $1,107, the company is at a position that its profits are equal to its costs. In other words, this is the point where all the expenses of the company are covered. 
     
    Social, Environmental, Entrepreneurial (SEE)
    Corporate Governance can be described as the set of processes through which the management of a company manages its internal and external affairs. The command uses corporate governance plans to adhere to legislative conditions and other relevant factors that impact an organisation. The corporate governance plan that Australia Post follows is building a knowledgeable and competent Board of Directors that evaluates the performance of the company (Rozman, 2017). All the directors have expertise and experience in their relevant fields and are capable of solving the issues of the company. In addition, the roles and responsibilities of the superiors and the subordinates in the management chain are clearly defined. They regularly delegate tasks to the assistants and remain accountable.
    The social, environmental and entrepreneurial components followed by the company are:
     
    Social –
    The company functions in the social sector, and it makes sure that it contributes back to society. It undertakes regular corporate social responsibilities and donates 3.5% of its average net profits of the financial year to social activities (Lane & Devin, 2018). 
     
    Environmental –
    Australia Post ensures that environmental issues are taken care of. It adheres to the ‘Environment Protection and Biodiversity Conservation Act 1999', and makes sure that they conserve the Commonwealth marine areas and the other national heritage places that fall under their legislation. They also take measures to minimise environmental pollutions (Fowler, 2018).
     
    Entrepreneurial –
    The entrepreneurs of Australia Post are the most critical component of the SEE approach. They lay down innovative ideas and design strategies that help in managerial decision-making. 
    Key Performance Indicators (KPIs) are used by companies to identify the progress over a particular time period. These help the management to set standards for the next course of actions, and act as a measure of comparison between crucial performance areas of two or more consecutive financial years (Kerzner, 2018). The KPIs that Australia Post monitor are:
     
    Sales growth –
    The company closely monitors the performance of the sales management and interprets the records of revenue in the financial statements. Sales growth is a clear indicator of the firm's growth in terms of revenue. Increased growth in sales indicates that the company can use its resources better and is operating in full efficiency.
     
    Net Profit Margin –
    This indicator shows the net profit of the company in a particular financial year. This is the clearest indicator of the growth of a company, as constant and rapid growth in the net profit shows that the company earns more from its daily operations and is more attractive to the investors. At the same time, net profit margin reflects that the cost management by the company is efficient. It also acts as an essential component in reflecting the trust of the consumers on the company (Wahyu & Wirawati, 2018). 
     
    Labour turnover rate –
    This is a performance indicator that reflects the interest of the employees in the company. A high labour turnover rate indicates that the company pays attention to the work and safety standards of its employees. This encourages the employees to remain in the company. Australia Post takes care of its employee’s safety standards. They provide monetary incentives and good leave policy to the employees. This has resulted in a satisfactory labour turnover rate for the company. A high labour turnover rate ensures employee retention (Hong & Lee, 2016).
     
    Creditworthiness –
    This is an essential indicator of the performance of the company. There are third party agencies that rate the creditworthiness of Australia Post. An excellent credit rating indicates that the company services its external liabilities in due time. This will enable the creditors to make decisions regarding lending activities. A company with an excellent credit rating can borrow funds easily from banks, financial institutions and other external lending agencies.
     
    Current ratio –
    Current ratio is the ratio between current assets and current liabilities. It represents the liquidity of the company. A current ratio of one is considered to be an ideal performance indicator about the liquidity of the company. It shows that the current assets of the company are more than its current liabilities. 
     
    Critical Risks
     
    Australia Post faces some critical risks to evaluate the financial risk factors while developing business plan. The critical risk factors develops some trends and potentiality to establish the business action. The risk factors facing by Australia Post are:
     
    New entrants:
    Threat of new entrants refers to developing competitive industry analysis to shape the business plan. The revenue of Australia Post is $2B as the company is facing the financial problems for over expenses (Auspost.com.au, 2019). While developing new business plan, new entrants are needed to be considered in the industry. Australia Post would develop the financial factors as new entrants in the postal industry. The organisation should remember to engage the competitive structure in the industry. New entrants are considered as risk factor to evaluate the competitiveness in market. Financial expenses of new entrant’scan influence the organisation to have impact on controlling the business (Scoggins& McMasters, 2018). The organisation has 36,000 employees. In case of reducing staff expenses, it is reduced for developing the competitive advantages over business. 
     
    Pricing by competitors:
    Pricing strategy by competitors is helpful to develop the effective pricing in business plan. It affects the revenue and employee salary to enhance the USP and marketing analysis in Australia. The pricing of competitors need to be covered and reviewed in case of marketing plan. The pricing strategy by Australia Post is evolved to influence the revenue and profit of the organisation (Auspost.com.au, 2019). Top competitors of Australia Post use stable and adjusted pricing strategy to influence the significant delivery and planning about financial expenses. The competitors of Australia Post are ParcelPoint, Sendle, and ParcelPoint, which have reduced pricing strategy to evaluate in financial services. As Australia Post struggle with competitors,the pricing of them can influence negatively Australia Post. 
     
    Government actions:
    The government of Australian has focused on developing the adjusted pricing and financial plan to develop the competition. As found by Leeet al. (2015), government actions influence the organisation to retain its revenue for taxation criteria. Australian Government has focused on revenue and tax rate as it influences the organisations negatively. Australia Post needs to focus on reducing the expenses towards staffs, water and finance. It is developed to engage with influencing tax rate and theoretical development in terms of financial marketing plan. 
     
    Changes in consumer taste and societal demands:
    Consumer demands and choices influence the organisation effectively. Australia Post several customer base as it overseas territories. Customers love their personalised stamp photos design and segment. PO Box and insurance claims of Australia Post are major product and service of them (Auspost.com.au, 2019). While developing the marketing plan, Australia Post needs to ensure the expenses to deliver the best products or service towards the customer demands and societal demands. 
     
    Difficulties in business control:
    In terms of business control, Australia Post faces issues regarding maintenance expenses and staff expenses on business. Water and electricity expenses are included to develop the business control. The difficulties include the unexpected problems regarding business growth and maintenance problems within company (Grote, 2018). 
     
    Risk management strategies
    Risk management strategies are included to develop growth and success within the organisation. Identifying risks is needed to expect success by the organisation. After identifying risk, analysis of risk is important to develop the risk related steps for the organisation. Likelihood of damage and risks are focused on ensuring the competitor’s business in terms of pricing strategy. Evaluating risks are developed to enhance the risk management assessment to evaluate the management methods as risk analysis (Kwon, Kim& Martin, 2016). The risk assessment planning and strategies are included to develop and enhance the risk management plan for Australia Post. 
    The risk assessment plan includes the development and management plan to engage for better financial planning for water, electricity and staff expenses. The staff expenses are developed to include the risk management and assessment planning in order to develop the risk assessments of Australia Post. The strategies are important to avoid the negative impacts on Australia Post.
     
    Exit and Harvest Strategy
    A liquidity event is a process whereby the investors and the owners of the company sell a part of their shares for cash. The owners may also sell the entirety of their shares if the situation demands it (Bai et al., 2018). A liquidity event is considered to be an exit strategy. This is an extreme measure that the management of the company resorts to in case the company faces the threat of liquidation. As a result of this action, the ownership of the company is transferred from its investors to the purchasers of the shares. Australia Post has a similar strategy in case it faces the threat of liquidation. It has a policy of selling 85% of its shares to the public in case it faces a shortage of cash.
    Initial Public Offering (IPO) is the sale of stock by a company to the public. A company, before selling its shares to the public is considered to be a private company. After the process of making the shares available to the public, the status of the company changes from a private company to a public company. This is because the maximum ownership of the company is transferred to the public at large. Another concept of an IPO sale is disposing off the business to the public (Palmer et al., 2018). This is another extreme measure that the management of the company is supposed to take in case it faces a shortage of funds to finance its operations.
    Another exit strategy that can be followed by the management of Australia Post is licensing its products in the market. This is a harvest strategy that is developed by a company to reduce spending on a product. The management of the Australia Post chose to license its products as a harvesting strategy when the life cycle of a particular product has reached its end. Every product has a life cycle of its own, and when the end of this life cycle is reached, the benefits of additional investment from these products are reduced drastically. After implementing this strategy, the management aims to derive maximum possible profits from the sale of its remaining products. Australian Post, like other companies, usually use the sale proceeds of the product nearing its end cycle to finance the cost of sales of new products. The funds so extracted from the sale of such products can also be used towards the promoting and advertisement expenses of the existing products of the company. 
    These are the harvesting and exit strategies that are followed by Australia Post. These are radically extreme strategies that the management refuses to use in conditions that do not require utmost care. However, in the case of cash shortages, or if the company does not perform as per expectations, these are the strategies that will provide funds to them.
     
    Transition of leadership and succession planning:
    Transition of leadership and succession planning includes the leadership styles to prepare the business planning of Australia Post. It is prepared that enhance the requirements of common sense and support while developing business plan (Baker& Ruming, 2015). It is prepared to get support and non-profits in succession plan. After analysis of common tools and support, it is prepared to influence the changes and succession plan in influencing the financial planning. It is developed to engage the normal footprints in influencing the succession plan in next year or current year. Transition plan includes the component interaction in order to develop the leadership change. The individual or group are focused on unique set of leadership change (Burns, 2016). Australia Post needs to implement leadership and succession planning in order to separate the unique leadership change in ordering the leadership development. Leadership planning includes the unique features and components of succession planning as per the market plan of Australia Post (Auspost.com.au, 2019). The development plan and succession are dependable on ensuring the financial planning and development. 
     
     
    Table 1: Gantt Chart
     
     
    The milestone schedule includes the business step to develop the marketing plan according to its business plan. Australia Post develops the schedule for developing new position and strategy to ensure the marketing plan and success. Any business plan needs an impact on planning structure and development for ensuring the financial plan. The development needs to focus on ensuring and engaging the financial plan as ordering the systematic business plan as ensuring the financial support. Market research is important to develop the current industry analysis for the particular venture. Market research develops the within specific deadline to ensure the particular venture’s success. Determination of purpose of market plan includes establishments and development in developing the new idea and growth within the market (Small, Smidt& Joseph, 2017). New implementation needs new profile to develop within the market analysis. Profile development needs to analyse for business plan in developing the growth for financial measurement. Financial measurements are needed to develop the business growth and enhancement in order to specify the documentation for implementing financial business plan. Strategic business plan needs to develop as per organisational development within the market. 
    The development in business plan needs to be executed within the deadline. Identification of risk is included to engage with the business plan as needed for improvement. After identifying the risk, development of current business plan are planned to identify (Cossa, Madaleno & Mota, 2018). The organisational development includes the financial measurements as developing the current financial business plan. As per the time schedule, the current business plan is targeted to develop and limit the financial expenses in terms of Australia Post’s engagement. After developing the current plan, the future implementation is needed to execute the financial measurement in the business plan. The business plan is needed to execute in order to enhance the future implementation by the business executions. Australia Post has planned to reduce expenses within the deadlines. The plan needs to be implemented to develop the future success for the organisation (Rubin, Aas& Stead, 2015). The time schedule of planning includes the several planning and stages to engage the future implementation and success of the plan. 
     
    Conclusion
    The study can be concluded that business plan includes the establishments in order to specify the business components and factors in market. Australia Post includes the financial business plan to avoid the issues of extra expenses on staff, water, electricity and others. The study is focused on business plan of Australia Post in order to enhance the business plan and procedures for reducing the issues. The financial business plan has been developed to influence and enhance the business strategy by developing current financial structure, SEE, risk factors, which are incorporated in the study. It has been discussed that financial structure and harvest strategy are important to focus on business plan in order to establish success in future implementation.