Executive Summary
The intended business venture will operate under the name ‘Helicopter Tours’. The firm’s headquarters will be located in Canada. The company will focus on becoming the market leader in the industry in which it operates. The firm will specialize in offering air travel services to individual and institutional customers. The ideal individual customers for the firm include high-end clients. Conversely, institutional customers will comprise different corporate entities such as media houses. The firm will differentiate its operations by offering unique services. This goal will be achieved by giving customized air travel services. The firm intends to achieve substantial growth within the target market niche. This goal will be achieved by incorporating effective strategic management practices.
Introducing the contemporary business world
Business name
Helicopter Tours
Description of business
The business venture will involve offering air travel services. The firm will give air travel services to different locations in Canada, Nova Scotia, and Sydney.
The form of business ownership
Helicopter Tours will operate as a corporation. The motive for adopting this business structure has arisen from the need to ensure smooth operations. Despite the complexities associated with this business structure, the firm will comply with the stipulations outlined in the aviation industry.
Ideal customer
The firm will target individual and institutional customers. Targeting these customer categories will facilitate the maximization of sales revenue.
Our advantages
Helicopter Tours will seek to offer a unique customer experience. This goal will be achieved by integrating the concept of customization. Customization will be achieved by allowing customers to define how they intend the services to be delivered. This aspect will improve the firm’s ability to satisfy its customers’ needs. The entrepreneur recognizes that the firm’s ability to deliver unique customer experience will be subject to the skills of its workforce. Thus, the firm will hire qualified and experienced employees. Furthermore, the company will train employees on how to be customer-centric in their service provision.
Ethical issues
The operations of Helicopter Tours will be based on a comprehensive code of ethics. The code of ethics will stipulate the issues that employees will be required to observe in conducting their duties. The core ethical principles to be observed include accountability, integrity, and respect.
Social responsibility
The entrepreneur understands that the firm’s success will depend on the extent to which its operations are socially responsible. In its pursuit of good corporate citizenship, Helicopter Tours will develop a comprehensive policy on corporate social responsibility. The policy will entail observing and listening to the needs and requirements of the different internal and external stakeholders. Some of the stakeholder categories that the firm will consider are employees, suppliers, credit financiers, customers, and the government.
Global issues
The Helicopter Tours’ operations will entail giving air travel services to customers in different countries, which include Nova Scotia, Canada, and Sydney. The firm will seek authorization from the respective governments before entering these markets. Thus, the firm will seek licenses from the governments. This move will minimize interference of the firm’s operation by the relevant authorities (Hitt, Ireland, & Hoskisson, 2009).
By venturing into these markets, the firm is likely to encounter intense competition from other international tour operators that are already established in the industry. Some of the competitors such as Heli Tours have been in operation for several years. Subsequently, they have developed adequate knowledge of the market.
Helicopter Tours
Mission Statement
Helicopter Tours is focused on becoming the leader in offering air travel services in Canada, Nova Scotia, and Sydney. Thus, the firm’s operations will be based on effective customer-centric approaches hence increasing the level of customer satisfaction.
Business Goals
Helicopter Tours will seek to achieve different goals. Within the first year of its operation, the firm will focus on achieving the following goals.
- Attaining 10% market share in the target market
- Achieving $ 15 million in net income within the first year
- Increasing the level of customer satisfaction
- Establishing a base of over 50,000 customers within one year
SWOT Analysis
The table below illustrates the company’s strengths, weaknesses, threats, and opportunities.
Management
A management team comprising the executive and subordinates will run the business. The executive will entail the founder, who will serve as the Chief Executive Officer [CEO], and the Vice President. The third level of management will comprise departmental managers and supervisors.
Organizational chart
Helicopter Tours will focus on entrenching effective organizational management. Thus, the firm will adopt a flat organizational structure by establishing some departments. The adoption of the flat structure is informed by the need to establish effective reporting relationships. The chart below illustrates the firm’s organizational structure.
Corporate Culture
The Helicopter Tours’ management team will ensure that the firm achieves a competitive advantage. One of the fundamental aspects that the organization will focus on in the pursuit of competitiveness involves the development of corporate culture. The firm will adopt a social corporate culture. This culture will be nurtured by fostering collaborative approaches in the firm’s operational practices.
Helicopter Tours will ensure that the teamwork approach is integrated into undertaking business activities. Moreover, the management team will establish a trust relationship amongst the workforce. The firm will ensure that employees are recognized and rewarded adequately for motivation purposes. It is expected that the social corporate culture will culminate in the development of a high level of job satisfaction.
Leadership Philosophy
The management at Helicopter Tours will adopt the transformational leadership philosophy. This philosophy will be implemented by integrating different aspects such as intellectual stimulation, inspirational motivation, and individual consideration in the leadership process. The philosophy will enable the organization to achieve the desired goals by increasing the level of employee motivation.
Job descriptions
Job specifications
Training employees
The firm will train its workforce continues to equip them with additional and relevant knowledge and skills. The firm will adopt off the job and on-the-job training approaches. On-the-job training will ensure that employees learn by doing. Conversely, off-the-job training will be implemented by undertaking vestibule training by organizing internal training workshops (Kotler, 2009). These approaches will improve the employees’ efficiency in executing the assigned job roles.
Compensation
Helicopter Tours will incorporate intrinsic and extrinsic aspects in its compensation policy. This goal will be achieved by integrating different monetary aspects. Some of the monetary aspects will entail salaries, wages, bonuses, and allowances on different aspects such as health and housing. The firm will ensure equity and equality in the compensation policy.
Incentives
The firm will incorporate different incentives to motivate its workforce. The incentives will comprise non-monetary issues such as recognizing employees who show exemplary performance. Recognition can be implemented by offering them a fully sponsored trip to different scenic sites. The firm will also motivate employees by integrating work-life balance policies in its HRM practices. This aspect will make employees identify with the firm.
Managing Operations and Information
Information Technology Resources
Helicopter Tours will entrench a comprehensive web-based computer system. The systems will entail different management information systems such as the transaction processing systems [TPS], decision support systems [DSS], and expert systems (Teresa & Mario, 2009). The DSS will improve the firm’s efficiency in making decisions while the TPS will enhance the firm’s efficacy in managing its different transaction activities. Conversely, the expert’s system will enable the firm to apply artificial intelligence (Shim, 2006).
Customer services
Helicopter Tours will implement Customer Relationship Management [CRM] software. The software will aid the firm in interacting with customers. Thus, the firm will be in a position to develop market intelligence. This goal will be achieved by understanding the customers’ complaints and compliments (Buttle & Maklan, 2015).
Cost of doing business
Helicopter Tours will incur different expenses as shown in the table below
Expected revenue
One of the determining aspects of setting the price of its services depending on the distance traveled. The firm will set the price per mile per customer at $ 0.55 per mile. During its initial year, the firm expects to cover a distance of 1,500 miles and carry approximately 30,000 customers. Thus, the firm expects to generate $24.75 million in sales revenue.
Income statement and balance sheet
The table below illustrates the Pro-forma income statement and balance sheet.
Balance sheet
Floor Plan
The floor plan of the premises within which the firm operates will be designed masterfully. One of the issues that the firm will consider in the designing process entails the floor plan. First, the firm will ensure that the office furniture and computer systems are situated strategically. This aspect will aid in ensuring that the office space is utilized optimally.
Raw materials and supplies
The firm’s operations will be facilitated by leasing helicopters from renowned companies. Leasing will aid in minimizing the cost of purchasing the aircraft. The firm will operate on a 24-hour basis to satisfy customers.
Quality Assurance
The firm will adhere to the guidelines stipulated by the relevant authorities in the aviation industry. Furthermore, the firm will incorporate a quality management department. The department will assess the quality of the services offered. Moreover, the department will evaluate the degree of compliance with the stipulated quality standards and policies.
Managing Marketing
Target market
Helicopter Tours target individual and institutional customers. Individual customers will comprise high-end clients. The customers in this category are characterized by high-income levels and unique lifestyles that entail the incorporation of domestic and foreign tourism in their consumption patterns. The firm will not discriminate customers based on their age, origin, gender, and race amongst other demographic characteristics to establish a strong customer base. Additionally, the firm will offer travel services to institutional customers such as businesses.
Product Features and Benefits
The firm’s product will entail air travel services to different destinations in Canada, Nova Scotia, and Sydney. The air travel services will be offered to local and foreign tourists, corporates such as broadcast companies, and firms that specialize in aerial mapping. The air travel service will provide clients with a fast and convenient mode of transport to different locations. Regarding the tourists, the firm will maximize their level of satisfaction by allowing the clients to experience an aerial view of different scenes. Therefore, clients will access sites that might be inaccessible through road or water modes of transport.
Product differentiation
The firm will differentiate its product by offering a unique service. One of the fundamental differentiating features entails allowing clients to select the most desired time to travel. Furthermore, clients will have the option of selecting the most preferred routes. Well-trained pilots will facilitate these aspects to ensure that clients can travel to locations that might be considered inaccessible.
Pricing
Considering that Helicopter Tours is a new entrant, the firm will set the price of its product based on the penetration pricing strategy. The firm will assess the pricing of the existing industry players to determine the most appropriate price point. The penetration pricing strategy will improve the attractiveness of the firm’s services. The pricing process will be undertaken by taking into account different factors such as distance and the prevailing economic conditions amongst.
Place/distribution strategy
The firm will market its product directly to customers. Considering the nature of its product, the company will integrate both traditional and emerging approaches to its direct distribution. Thus, the firm will sell its tickets through its headquarters. Moreover, the company will sell the tickets online. The direct distribution strategy will facilitate the ease with which the firm connects and establish a relationship with the target customers.
Promotion strategy
Helicopter Tours will adopt integrated marketing communication in creating market awareness of its products and services. In its IMC strategy, the firm will adopt different methods such as sales promotion, advertising, and organizing event (Dahlen, Lange, & Smith, 2008). The firm will host a major event in the process of launching the company. The firm’s advertising process will be undertaken through conventional and emerging mediums such as print and broadcast media including magazines, television, radio, and newspapers. Conversely, the emerging mediums will comprise different social networking platforms such as LinkedIn, YouTube, and Facebook.
Managing financial issues
Start-up costs
The firm anticipates substantial start-up costs in commencing its operations. However, the major costs will relate to leasing the three helicopters that it intends to use in facilitating its services. The firm estimates the start-up cost to be around $ 15 million.
Financing
Helicopter Tours will source its finance from different sources that include bank loans, personal savings, and venture capitalists (Smith, Smith, & Bliss, 2011). By considering these alternative sources of finance, the chances of Helicopter Tours accessing the budgeted start-up finance will improve substantially. Therefore, the firm will be in a position to commence its operations.
References
Buttle, F., & Maklan, S. (2015). Customer relationship management; concepts and Technologies. New York, NY: Routledge.
Dahlen, M., Lange, F., & Smith, K. (2008). Marketing communications. Chichester, UK: John Wiley.
Hitt, M., Ireland, D., & Hoskisson, R. (2009). Strategic management: competitiveness and globalisation; concepts and cases. Mason, OH: South-Western.
Kotler, P. (2009). Kotler on marketing; how to create, win and dominate markets. New York, NY: Simon and Schuster.
Shim, J. (2006). Information systems and technology for the non-information systems executive; an integrated resource management. London, UK: CRC Press.
Smith, J., Smith, R., & Bliss, R. (2011). Entrepreneurial finance; strategy, valuation and deal structure. Stanford, CA: Stanford Economics and Finance.
Teresa, T., & Mario, A. (2009). Encyclopaedia of human resource information systems; challenges in e-HRM. Hershey, PA: Information Science Reference.