Reports from the Sales Manager indicated that contracts have been lost because

Reports from the sales manager indicated that

This preview shows page 3 - 7 out of 9 pages.

Reports from the Sales Manager indicated that contracts have been lost because some clients want to engage a courier who can deliver to their regional offices, in particular Newcastle, Wollongong and the Central West. Fast Track is currently unable to meet this demand and therefore, some potential clients have been lost. This became a motive to expand operations for both financial and customer service reasons.
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2.0 – Company Structure The company is family owned, with 3 family members acting as a Management Board and responsible for approving all business decisions Managing Director – responsible for daily operational management decisions Logistics Manager – responsible for the scheduling of the trucks and drivers 20 truck drivers 5 office support employees – responsible for administration, accounts, human resources and sales 2.1 – Facilities and Equipment Computers Manuals GPS PDA Trucks 3.0 – Marketing Activity Direct sales Telephone Internet listings Mail-outs 4.0 – Business Operations The company communicates with employees via email for head office employees, and a printed monthly newsletter for drivers. Policies and procedures are provided through employee manuals that are kept in each truck. Trucks are fitted with a GPS system to assist drivers in navigating to each pick-up and drop-of location. They are also assigned a PDA that provides drivers with details of each delivery and records when a job starts and finishes. The data from this device is sent back to head office to compete productivity reporting. 4.1 – Strategy to Expand Business Fast Track Couriers currently allocates 2 drivers per truck to ensure that drivers are able to load and unload heavy packages. The strategy going forward is to remove the need for 2 drivers per truck by installing an automatic lif gate on the back of each truck, at a cost of $10,000 per truck. This indicates that only 1 driver is needed per truck, as no heavy lifing is required. Hence, it will allow Fast Track to purchase 10 new trucks and use the existing drivers for regional routes. Each new truck will cost $60,000, including installation of an automatic lif gate. The money to purchase the trucks will be borrowed from the bank on a business plan.
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5.0 – Financial Information and Forecasts Annual sales Current sales Estimated sales (Year 1) $17 million $22 million Annual net profit Current net profit Estimated net profit $1.9 million $3.2 million Increased costs Loan repayments Operating costs (fuel servicing, etc.) +$200,000 per annum +$2.2 million Administrative costs Labour Costs +$100,000 Nil
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6.0 – Risk Analysis Since drivers are typically negative about change, there is a risk that the turnover of drivers may increase. Hence, proposing the sudden change could be done in a positive note by ofering higher salary and rewards if sales manage to increase significantly. By doing so, this could motivate the drivers to engage in the sudden change and as well as getting involved in organisation activities. If all else fails, Fast Track Couriers could retain the accepting drivers and recruit new drivers.
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