PTA Pty Ltd – Individual Business Plan – Management Executive Summary PTA Pty Ltd shall be established as a private limited company under the single ownership of the client. In alignment with the laws...

PTA Pty Ltd – Individual Business Plan – Management

Executive Summary

PTA Pty Ltd shall be established as a private limited company under the single ownership of the client. In alignment with the laws and regulations of Australia, the company shall complete all relevant documentation, registrations and compliances that are applicable and required. The company’s organizational structure shall be flat and with bare minimum employees to manage the business with overall team including the promoter / Chief Executive Officer shall be limited to five people. The strategic core of the business shall be (i) cost efficiencies / cost advantages, (ii) service differentiation customized service, and (iii) strong supply chain partnerships. The targeted marketing of the business by focussing on the customer segments in the age between 19 and 28 as well as a geographical segmentation of focussing customers from Asia pacific region like China, Japan, India, etc. provides an effective approach to customer acquisition. A detailed balance scorecard framework along with strategic map is presented in the report. In addition suitable planning for cash management, risk management and business policies also proposed in this report.

Business Structure, Applicable Regulations & Affiliated Requirements

PTA Pty Ltd shall be established as a private limited company under the single ownership of the client. In alignment with the laws and regulations of Australia, the company shall complete all relevant documentation and part of the ASIC requires a registration fee of $463 (Australian Securities & Investments Commission, 2016).Business name registration– The business name registration will be carried out at the Intellectual Property Office. Costs for business name registration is $46 plus accountant that will run all our tax and legal issues which are estimated to be $11,000 per year. Even though the company and its business is established as an online business, the company’s operations shall be undertaken from an office leased for rental in Sydney. Suitable and required agreements and registrations shall be undertaken for the same. In specific, the company shall undertake registrations and documentation for the business establishment, registration of the company name and online business trademarked name, registration for ABN as well as GST and for protection of the Intellectual Property(Australian Government, 2017; Austrade, 2017). The applicable laws from business administration and structure perspective shall include the Fair Works Act, 2010, Trade Practices Act, 1974, and the Occupational Health & Safety Regulation, 2001(Australian Government, 2017; Austrade, 2017). The regulations / legislations pertinent to Australian Securities & Investment Commission and are applicable include National Consumer Credits Protection Act, 2009, Insurance Contract Act, 1984, Superannuation Act, 1993, Australian Securities & Investment Commission Act, 2001, and the Corporation Act, 2001(Australian Government, 2017; Austrade, 2017). In addition other pertinent statutory and affiliated legislations include Customs Administration Act, 1985, and various set of taxation related compliances (Australian Government, 2017; Austrade, 2017).

Management Team & Organisational Structure

PTA Pty Ltd is a start-up company that will in its initial stages of operation in addition to being a predominantly online based operation. In this context, the company’s organizational structure shall be flat and with bare minimum employees to manage the business(Daft, 2012). The overall team including the promoter / Chief Executive Officer shall be limited to five people. The proposed hierarchy as well as roles / responsibilities are listed below(Daft, 2012),

Table 1 – Management Team – Roles & Responsibilities

Roles and duites

Roles and Duties	Special Skills or Qualification
Owner/Director	Establish Business Obtain finance Inject capital Look for business opportunities Obtain utilities Make important decision about expand the market or financial matter Analyse financial position & Profit and loss statement Evaluate business growth and staffs Performance	Leadership skills Decision making skills Understand the business nature, economic, market and competitors behaviours Ability to make negotiations with third parties and subcontractors Understand the planning, controlling and engaging with both staffs and customers Possess basic accounting knowledges Obtain basic knowledge of IT system If you want more efficient in your managing and marketing skills, you are advised to take some management and marketing courses.
Sales/ Marketing manager Year 1	Focus to meet the business sales forecast Set the sales and profit target. Devise sales and marketing strategies and technique to meet the sales and profit targets Responsible for promotion and advertising through social media Maintain Strong customer relationship Supervise sales clerks Observe competitors behaviours and external opportunities Ability to negotiate with third parties and subcontractors. Assist sales clerks in answering the customers quires Handling the customers complaints Ability to find the ways to satisfy the customers’ complaints and needs. Communicate with general manager and report to the director	Bachelor’s degree in Marketing or equivalent Minimum 5 years’ experience in related aera Strong communication and customer service skills Ability to lead and motivate the team to achieve the sales targets. Preferably management experience in retail industry Strong interpersonal skills and Intermediate computer skills
General Manager/ Accountant Year 1	Maintain proper accounting records including petty cash Perform bookkeeping tasks Prepare financial reports, Business activity statement (BAS) and Bank reconciliation Lodge the annual company tax return and quarterly (BAS) Communicate with ATO in relate to tax matters Prepare payroll Communicate with marketing manager and report to the director	Bachelor’s degree in Accounting or equivalent Qualified CPA or CA or IPA or near completion of your qualification Required Tax Agent Licence Minimum 3 years’ experience in related area Extensive problem solving skills Strong communication and customer service skills Intermediate computer skills
Sales Clerk # 1 – Online Chat Representative Year 1	Focus on answering the customers’ online quires such as email or chatting Assist to answer the phone quires General administrative duties Perform ad hoc duties	Certificate III in hospitality or business administration or equivalent Minimum 1 year experience in customer service area Through knowledge of all the products offered Effective communication skills Ability to work with minimum supervision Proficient tying skills
Sales Clerk # 2 – Admin/Walk-In Customers Year - 2	Handle customers quires via phone Serve walk-in customers Handle the client refunds and travel insurances claiming General administrative duties Perform ad hoc duties	Certificate III in hospitality or business administration or equivalent Minimum 1 year experience in related area Through knowledge of all the products offered Effective communication skills Ability to work with minimum supervision Ability to work well as a team and develop strong rapport with customers
IT Technician Year 2	Oversee the operation of the website in conjunction with the website designers Facilitate the networking system Ensure smooth operation of the accounting system Address any other IT issues	Bachelor’s Degree in IT or equivalent Minimum 2 year experience in a similar role Ability to work under pressure, Good time management skills and Strong diagnostic and problem solving skills Excellent technical skills in both hardware and software, in Microsoft operating environments including basic internet support and IP support Possess basic knowledge of graphic designs

Figure 1 – Organizational Structure / Hierarchy


Strategic Direction & Growth Management

Hill et al (2014) and Morecroft (2015) state that organizations are increasingly facing and experiencing both an exciting as well as dynamic form of challenges in current business environments oftwenty first century. In this context of a globalised business environments, business entities shall always require a strategic thinking mindset and solely by way of evolving effective organization strategies, can the business entitiestransform to be strategically competitive(Hill et al, 2014; Morecroft, 2015). The sustainable or else sustained form of competitive advantage takes place when the business entitydelivers value, that is, creation of strategies of which the competitor companies shallnot be able to replicate the actual benefits or else find the same to beexpensiveforimitation (Hill et al, 2014; Morecroft, 2015).
At the outset, the strategic core of the business shall be (i) cost efficiencies / cost advantages, (ii) service differentiation customized service, and (iii) strong supply chain partnerships. The business environment of tourism industry in Australia is highly competitive and yet the strong growth potentials of the industry offers vast scope for new entrants to establish business and sustain operations. In this context, PTA Pty Ltd shall establish and operate with a strategic direction to offer maximum value to the potential customers by way of lower costs at an industry level and service efficiencies through business operations expertise and robust partnerships with various key players in the supply chain like the airline operators, hotels / restaurants, etc.
Essentially, the packaged tour and one stop shop for all tourism needs per se is a not a one of a kind service and yet it is possible to establish competitive advantages by a start-up through service innovations, efficiencies and cost advantages. Firstly, the complete online form of business operation offers scope of cost efficiencies as it eliminates the real estate heavy distribution channels and at the same time provides opportunities through the digital platform capabilities like enhanced user interface enabling the consumers pick and choose the desired package at their respective affordable prices. Secondly, operational expertise like undertaking a water tight cost efficient operation coupled with mutually beneficial and robust partnerships with players in the supply chain offers the company with strong capabilities that can provide competitive advantages. Finally, a dynamic approach to business management that shall strive to innovate and re-design services offered based on market research and consumer feedbacks on a periodic basis shall offer an effective manner to sustain and grow the business.
In addition, the targeted marketing of the business by focussing on the customer segments in the age between 19 and 28 who either (i) are looking for budget travel opportunities as students or entry level job holders, or (ii) high earners who seek a varied and / or adventurous travel holidays as well as a geographical segmentation of focussing customers from Asia pacific region like China, Japan, India, etc. provides an effective approach to customer acquisition. It has to be noted that Asia Pacific region has been experiencing economic growth that is fast growing and largely de-coupled from volatilities in the western nations making it an ideal geographical segment to target for customers.
This strategic approach to the business shall enable the company to stay relevant, develop and evolve its capabilities / competitive advantages, withstand industry volatilities and more importantly, consistently grow and expand by capitalizing on inherent capabilities / resources as well as opportunities that are available in the market place.

SWOT Analysis

The SWOT analysis of the business is presented below,

Strengths The predominant online operation offers dynamism and cost efficiency to the business operation. Targeted marketing / sales offers focus and consistency to gain customers effectively The promoter / chief executive officer possessing capable IT skills provides strong advantage given the company’s predominant online operation

Weakness While the online operation offers various advantages, the same is a new concept and the success of the same relies on various factors A highly competitive business environment The relative inexperience of top management / leadership roles of the promoter / chief executive officer

Opportunities A very strong market demand in tourism industry aided by favorable growth potential offers an ideal business opportunity. An increasing trend of advancementsin digital ecommerce space as well as increased usage of smartphones, tablets, etc. offers great opportunities for the business success and growth A targeted marketing approach to focus on customers from Asia pacific region like China, Japan, India, etc. of which vast majority of countries are experiencing enviable economic growth as compared to western nations illustrates strong market potential.

Threats A highly competitive environment represents a threat to survival and business growth. A predominant online operation with customer data storage needs (both transactional and non-transactional) makes it vulnerable for cyber-attacks for data theft and other issues. Replication of the business model by established companies may lead to survival of the business.

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Balance Scorecard & Strategic Map– Framework for PTA Pty Ltd

On the basis of detailed review undertaken based on the strategy and growth plan of the company, the following balanced scorecard framework is proposed,


Shareholders Value

S.No.	Objectives	Metrics (Lead / Lag Factors)	Critical Success Factors
1	Gaining market share and sustaining the same	Market share as a per cent of tourists visiting from targeted segments	A 1 per cent market share within 6 months of operation and increasing it to 2 per cent within 1 year.
2	Attaining cost efficiencies	Earnings Before Interest, Depreciation, Taxes and Amortization	Operational level break even within first year of operation

Customer Value

S.No.	Objectives	Metrics (Lead / Lag Factors)	Critical Success Factors
1	Marketing tour packages by way of targeted focus over consumers in the age range of 19-28 in Asia Pacific region	Customer Acquisition Rate - Targeted online / digital marketing through social media communication, strategic advertisements using Google Adwords and other such approaches to gain customer acquisition	Increasing gross level rate of customer acquisition by 20 per cent per quarter
2	Development / maintain website’s user interface and online service platform that is easy to use and effective in its purpose	Response received from controlled group testing for each upgrades, changes and new developments	Target positive / favourable responses before implementation.
3	Effective and superior customer service	Open ended customer issues / concerns at any point in time	Any customer issue / concern should be closed satisfactorily within 48 hours of raising them

Process & Internal Operations

S.No.	Objectives	Metrics (Lead / Lag Factors)	Critical Success Factors
1	Cost advantages invarious initiative of marketing / promotions	The budget allocated for marketing / promotion activities	Alignment of the budget as 20 per cent of revenue generated after six months of operation
2	Enhancing efficiencies across supply chain in the service delivery	Availing cost advantages through robust, innovative and mutually beneficial relationships with supply chain partners.	Enhancing the costadvantages for overallservice deliveryby 10 per cent per quarter

Strategic map is presented below,

Shareholders Value	Gaining market share and sustaining the same	Attaining cost efficiencies
Customer Value	Marketing tour packages by way of targeted focus over consumers in the age range of 19-28 in Asia Pacific region	Development / maintain website’s user interface and online service platform that is easy to use and effective in its purpose	Effective and superior customer service
Process & Internal Operations	Cost advantages in various initiative of marketing / promotions	Enhancing efficiencies across supply chain in the service delivery

Cash Management

Cash management represents one of the very important function of a business enitity and entails as part of the treasury / corporate finance function. In essence, the cash management relation to the establishment of an efficient and cost effective approach to manage the inflow and outflow of funds as part of the business operation. The inflow in the context of this business concerns the proceeds paid by the customers for the tour package selected by them on booking. The outflows can be wide and varied with predominant ones comprising payments to the suppliers like airline companies, hotels / restaurants, tour guides, etc., salary payment to the employees, various administrative expense, certain capital expenses, etc.
As part of the cash management operation of the company, services of a bank shall be obtained by the company which shall offer bank accounts opening for various purposes, customized payment / credit options, auto-credits to primary operational accounts, advisory services, monthly / weekly reports and various controls to detect leakages or other issues.

Risk Management

Every business initiative, small or big and irrespective of industry, is subject to various forms of risks and vulnerabilities. In a way, business rewards the shareholder / promoter for facing the risks that a business venture offers. In this context, PTA Pty Ltd is also subject to various internal and external risks and an effective risk management plan is essential for a successful business operation. As mandated by the regulations and as widely used means, PTA Pty Ltd shall avail a suitable insurance policy that is an industry standard from a reputable insurance company. In addition, the company shall undertake a detailed risk assessment and develop a risk register documenting all potential risk events it is exposes to, a detailed assessment of its likelihood / impact levels, etc. and suitable mitigation plan / strategy. Further, suitable monitoring and control mechanisms shall be implemented by way of policies, procedures, etc. to actively monitor and control the risks.

Business Policies

Business policies accord a means to manage a business in an organized, structured and controlled manner. Accordingly, PTA Pty Ltd shall design, develop and manage policies pertaining to various aspects of business and business operations which shall include but not be limited to accounting policies, sales credit policies, accounts payable policies, ethics and corporate social responsibility policies, policy for website privacy, website disclaimers, services level terms and conditions, payments approval policy, etc.

Action Plan Summary

In summary, the business plan for management with respect to PTA Pty Ltd shall comprise the following,

• Establishment of business structure and suitable registrations and compliances


• Setting up management team with suitable hierarchy / organizational structure


• Implementation of business strategy and business plan in alignment to the strategic objectives, market segmentation, balances scorecard metrics developed and affiliated strategic map.


• Design and implementation of cash management operations on the approach proposed.


• Design, development and implementation of all pertinent business and operations policies.

References
Australian Government. (2017).
Business & Industry. Retrieved from:
http://www.australia.gov.au/information-and-services/business-and-industry
Austrade. (2017).
Australian Trade. Retrieved from:
https://www.austrade.gov.au
Daft, R. (2012).
Organization theory and design. Nelson Education.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014).
Strategic management: theory: an



Integrated Approach. Cengage Learning.
Morecroft, J. D. (2015).
Strategic modelling and business dynamics: a feedback systems



Approach. John Wiley & Sons.