strategic planning and cost control f fianl 2014
DESCRIPTION
ppt on startegic planning with example of a shipping businessTRANSCRIPT
STRATEGIC PLANNING & COST CONTROL
Introduction
• A strategy is an overall approach and plan.
• It provides you with the big picture of what you are doing and where you are going.
• Strategic planning gives clarity about :-1. What you actually want to achieve and2. How to go about achieving it.
A strategic planning process is thorough and comprehensive.
When do you need to do a strategic planning process?
How often do you need to do a strategic planning process?
At what point in an organisational or project cycle do you need to do a strategic planning process?
How long should a strategic planning process be?
The Planning Process
Situational analysis
alternative goals and plans
Evaluate goals and plans
goals and plans selection
Implement the goals and plans
Monitor and control performance
“ Regulation by executive action of the cost of operating an organization”
What is Cost Control?
Internal◦ Strengths and Weaknesses.
External◦ Opportunities and Threats in the business
environment.
SWOT Analysis
FOOT FERRY SERVICE MUMBAI
MISSION : To provide safe, reliable and efficient marine transportation for people.
VISION : To Extend and Grow Business in other states, Develop Technologically, Reduce Cost of operation thereby increasing profit.
KRASS Ferry Services LTD.
Continually Improve and Refine Our Business Processes
Broaden Our Revenue Base and Reduce Costs
Re-define Who We Are
STRATEGIC GOALS
Owning Foot Ferry Vessels.
Operating on Four routes
Renting Out for Parties.
BUSINESS PLAN
Seven Ferries on Different Routes.
Capacity of hundred passengers.
Special service for handicaps.
Luxury Service.
Snacks On Board.
Details of Ferries
Assessment of risk associated in ferry sector
Deployment of vessels
Advertisement
Competition Assessment
Entry Strategy in Ferry Service Sector
Investment on ships Acquisition.
Major Cost Heads :1. Direct operating Cost2. Voyage Related Cost
Financial Assessment
Direct operating cost = 6,80,000
Voyage related Cost = 7,70,000
Total = 14,50,000
Monthly expenditure
Passenger Fare (2oo x 80 x 7) = 32,48,000
Snack stall (rent) = 70,000
Party (rent) = 30,000
Total = 33,48,000
Estimated Revenue
Estimated Revenue – Estimated expenditure = Profit
33,48,000 - 14,50,000= 18,98,000
Profit Divided By Investors
18,98,000 / 5= 3,79,600
Return of Investment
So, if we divide Initial Investment of each Investor by Individual Profit :
21,40,000/3,79,600= 5.6 months.
Services in Goa Services in Essel world, Madh islands. Luxury yachts in Mumbai and Goa. House boats. Extending operations to other states.
Future Prospects
So from our strategic planning we conclude that operating foot ferry services in Mumbai is quite profitable.
We are getting are investments back within six months.
Conclusion
Economics of Sea Transport and International Trade by Institute of Chartered Ship Broker
wsdot.wa.gov
Civicus.org
Reference
Thank you
Direct Opt Expenses:1. Insurance 70,0002. Crew Cost (4 x 7 x 10,000) 2,80,0003. Repair & maintenance (7 x 30000 ) 2,10,0004. Advertisement 1,00,0005. Miscellaneous Exp 20,000
Total 6,80,000
EXPENDITURE
EXPENDITURE
Voyage Related cost:1. Fuel Cost = 7,00,0002. Berth charges = 70,000
Total = 7,70,000
Purchasing Cost:1. 4 x 20,00,000 = 80,00,0002. 3 x 9,00,000 = 27,00,000 Total = 1,07,00,000
Acquisition of funds: Each partner invests 21,40,000
Initial Investment
Routes No. of ferry
Elephanta caves 2
Karanja 1
Alibaug 2
Uran 2
Routes