strategic planning and cost control f fianl 2014
DESCRIPTION
ppt on startegic planning with example of a shipping businessTRANSCRIPT
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STRATEGIC PLANNING & COST CONTROL
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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.
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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?
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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
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“ Regulation by executive action of the cost of operating an organization”
What is Cost Control?
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Internal◦ Strengths and Weaknesses.
External◦ Opportunities and Threats in the business
environment.
SWOT Analysis
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FOOT FERRY SERVICE MUMBAI
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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.
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Continually Improve and Refine Our Business Processes
Broaden Our Revenue Base and Reduce Costs
Re-define Who We Are
STRATEGIC GOALS
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Owning Foot Ferry Vessels.
Operating on Four routes
Renting Out for Parties.
BUSINESS PLAN
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Seven Ferries on Different Routes.
Capacity of hundred passengers.
Special service for handicaps.
Luxury Service.
Snacks On Board.
Details of Ferries
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Assessment of risk associated in ferry sector
Deployment of vessels
Advertisement
Competition Assessment
Entry Strategy in Ferry Service Sector
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Investment on ships Acquisition.
Major Cost Heads :1. Direct operating Cost2. Voyage Related Cost
Financial Assessment
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Direct operating cost = 6,80,000
Voyage related Cost = 7,70,000
Total = 14,50,000
Monthly expenditure
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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
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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
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So, if we divide Initial Investment of each Investor by Individual Profit :
21,40,000/3,79,600= 5.6 months.
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Services in Goa Services in Essel world, Madh islands. Luxury yachts in Mumbai and Goa. House boats. Extending operations to other states.
Future Prospects
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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
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Economics of Sea Transport and International Trade by Institute of Chartered Ship Broker
wsdot.wa.gov
Civicus.org
Reference
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Thank you
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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
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EXPENDITURE
Voyage Related cost:1. Fuel Cost = 7,00,0002. Berth charges = 70,000
Total = 7,70,000
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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
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Routes No. of ferry
Elephanta caves 2
Karanja 1
Alibaug 2
Uran 2
Routes