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Give me essay relating to first choice for car rent that is a United Arab Emirates – Abu Dhabi located company that will provide the member of the public with cheap and luxurious automobiles vehicle in its area of the operation
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##Executive Summary
The first choice for car rent is a United Arab Emirates – Abu Dhabi located company that will provide the member of the public with cheap and luxurious automobiles vehicle in its area of the operation. The company was founded in the year 2012. The first choice for car rent was established after the break-up of the of the bus association that was providing the bus service to the general public.
##Business Plan for First Choice Car Rent Report (Assessment)
Executive summary
##Objectives
The main objective of this business plan is to help raise finance that will be used to develop a First Choice for Car Rent. It also forecast the expected financials and operation over the next three years.
##Missions
The mission of the first choice for car rent is to provide cheap and luxurious automobiles vehicle to the members of the public on their daily operation. First choice for car rent aims at acquire greater market share, and to be recognized as the leader in its targeted market.
Key to success
The management of the first choice will have trained staffs who will be a key asset to the development of the company. The staffs will be trained on how to deal with the customer as the success of the company will depend on the customer reaction to the services of the company.
In addition, the management of the first choice for car rent will built and maintain network with tourists agent. Customer satisfaction and measurable results are ultimate priorities for the first choice for car rent.
The management also plans to offer cheap and reliable services to the customers. The will greatly help in increasing the market share of the customer. It also helps to increase the revenue of the company as more customers will come for cheap and quality services.
In addition, the management of the first choice will use quality marketing strategy in order to create the awareness of the services and product of the company to the customer.
Company summery
The first choice for car rent is a United Arab Emirates – Abu Dhabi located company that will provide the member of the public with cheap and luxury automobiles vehicle in its area of the operation.
The company was founded in the year 2012. The first choice for car rent was established after the break-up of the of the bus association that was providing the bus service to the general public.
Company services
The first choice for car rent will be providing cheap and luxurious automobiles vehicle for the general public, tourists, and also to the vacationers within the united Arab emirate-Abu Dhabi. The first choice car rent aim to raise its income through daily rental for bus and car usage.
In addition, it will also raises income through the sale of insurance services and gasoline charges to its customers. At the beginning of the business the first choice for car rent will have a lease fleet of 15 buses and 20 buses.
Market analysis summary
Market segmentation
The primary target for the First Choice for Car Rent product and services include the general public of the United Arab Emirates, tourists, and business travelers. It is estimated that there are 5000 potential customers within the area of operation of the first choice for car rent.
Out of the 5000 potential customer in the market, The First Choice for Car Rent aim to have 2700 customer while the rest be acquired by its competitors. The value of the local market is expected to increase for the next three years with the formation of new business.
Target market segment strategies
The first choice for car rent wants to implement the marketing strategies that will assist it to target tourists and other potential business men and women visitors in the United Arab Emirates.
The first choice for car rent management will print advertisement describing the product and the services offered by the first choice for car rent that will be distributed to the general public.
In addition, the management will also use internet to post the services and product of the company. This will greatly help travelers who search bar and bus rental agencies in the internet.
The management of the first choice for car rent will register the company with online portals so that customers can access the business easily. The management will also establish the online website that will assist the potential customers to book for the services and to make the payment for the services and the product through the company online platform.
The management also will post the advertisement on main travel portals. These will help to create market awareness to the local public. The management will establish interaction with the local travel agent to make the arrangement for rentals among the people that are travelling through the targeted market.
The first choice for car rent wants to implement the marketing strategies that will assist it to target tourists and other potential business men and women visitors in the United Arab Emirates.
The first choice for car rent management will print advertisement describing the product and the services offered by the first choice for car rent that will be distributed to the general public.
In addition, the management will also use internet to post the services and product of the company. This will greatly help travelers who search bar and bus rental agencies in the internet.
Technology plan summary
Technology plays a key role in the business of the car and bus where the main customers are tourists. The management of the first choice for car rent solves these problems of the technology by offering them cost-effective access to needed technology and equipment.
As a result, management of the first choice provides access to technology that not only provides value-added results for the customers, but also reduces operating costs for the company.
All of the advertisement and the payment of the services and the product of the first choice for car rent will be made online to track costs and operating efficiencies.
The management plans to employ standard internet technology that will help to create the awareness of the services and the product of the first choice for car rent.
SWOT analysis
##Strength
The management of the first class is made up of the staffs that are more experience in the management of the car and bus industries. They will provide quality advice on how to make the company to be more competitive in the area of the operation.
The first choice for car rent is routing competition in the local traveling agents by slashing fares. Due to its cheap and quality services the first choice for car rent will attract more customers thus increasing its market share
The first choice for car rent provides other services and product other than car renting. It provides insurance services and gasoline charges to its customers. Thus, the company will benefit from those services and product offered by the company at a lower cost. These will greatly contribute to the incensement of the company revenue.
First choice for car rent operates in good location where all the customers can access. Its location is easily accessible by all. In addition, it has branches in all the tourists’ sites.
##Weakness
Frequent labor dispute is a major weakness of the first choice for car rent. Due to the establishment of the workers union there is a lot of labor dispute as the workers try to demand an incensement of the of their salary when there is an incensement of the profit of the company.
There is government interference in the car and bus operation. The government is initiating new rules and regulation that tend to regulate the visitors travelling in the country. These have reduced the number of customer who normally demands for our services.
There is unstable financial position of the company. The number of tourists who will visit the country each year is unpredictable thus making the finance position of the company also to be unstable.
##Opportunity
The management of the first choice for car rent will increase the number of the bus to 20 and number of the cars to 30. These will help in reaching more customers.
In addition, after four years the first choice for car rent will also start operating in new routes thus increasing the market share. There is an increase in trade in the United Arab Emirates necessitating more car and bus travel.
##Threats
There is likely hood of the workers union to demand for their rightful share of the company profit. The first choice for car rent cannot progress if any time the there is an incensement of the profit the workers demand for an incensement of the salary.
If the workers keep on demand for the incensement for their salary there will be incensement of operation expenses of the company reducing the company revenue.
Another treat for first choice for car rent is the incensement of the fuel cost. There is possibility of the incensement of the cost of the fuel in the future. These will increase the cost of the operation thus possibility of the reduction of the revenue in the future.
There is a chance of the establishment of new travelling agent thus challenging the strong position of the first choice for car rent in the domestic market. There is a chance of the establishment of new travelling agent thus challenging the strong position of the first choice for car rent in the domestic market.
Competitive edge
There are over three traveling agent in the United Arab Emirates that provide car and buses services. Although this present challenge to the first choice for car rent in terms of the market share. The first choice will make successful entry in the market based on the innovative concept. The first choice will offer quality service to its customer. Our cheap and reliable services will give us advantages to create a good market share.
Market strategies
The management of the first choice for car rent will create a mix of the marketing ways that will create awareness of our present, our image and our message. The first choice for car rent will create it awareness through the use of the media.
It will make advert in the local newspapers, magazines. It will also make adverts in the broadcasting media where it will create a local programming and special interesting shows.
The management of the first choice for car rent will also create a website where the services and the product of the company will be advertised online. The management also plans to employ competent marketing staffs.
Sales strategies
The first choice for car rent will open new branches in many is of its operation in order to access customer even in the interior areas. This will make it possible for all customers to use our services because they will be readily available.
In addition, the management will open a website where by the customers can book for the services online and at the same time they can make payment online.
Management summary
There is impressive board of directors that have been organized and comprises of the top professional in the field of the car and bus industries. They will play a key role in the development of the company also they are a great asset of the development of the development of the company. In addition, there are two firms that provide consultant services to the company.
There will be an overall manager, department managers and assistant manager and the other subordinate staffs. The department manager will be reporting to the overall manager while the assistant manager will be reporting to the department manager. Sub-ordinate staff will be reporting to the assistant managers.
There will be an overall manager, department managers and assistant manager and the other subordinate staffs. The department manager will be reporting to the overall manager while the assistant manager will be reporting to the department manager. Sub-ordinate staff will be reporting to the assistant managers
Personnel plan
The first choice for car rent will offer a competitive wages and salaries to all the employees with benefit packages available to key personnel only.
Financial plans
##Assumptions
The management of the first choice for car rent is seeking to raise 10 years bank loan of$400000. The loan will be repaid at a fixed interest rate of 10%.
Sales Forecast
The first choice for car rent expects a great rate of growth at the start of the operation. The expected financials of the first choice for car rent for the next three years are;
proforma profit and loss (yearly)               
years               1     2     3    
sales               $650,245 $701,245 $740,467
operating costs          $315,250 $327,943 $345,128
taxes, interest and depreciation  $112,160 $126,124 $134,146
net profit             $222,835 $247,178 $261,193
Breakeven Analysis
At the breakeven point the first choice for car rent is neither making the profit or a loss. The breakeven analysis shows the relationship between the fixed cost, variable cost and the selling price. The profit of the first choice for car rent is zero at breakeven point. The breakeven point is calculated using the following formula
Break Even Point = Fixed Costs / (selling price-variable costs).
Fixed cost= insurance cost=$16500
##Rental expenses=$ 25000
##$41500
Variable cost=
general and administration   $14,700 
marketing expenses       $23,500 
profession fees         $17,400 
travel and travel cost     $25,300 
tax, interest and depreciation $112,160
miscellaneous costs       $17,000 
                $210,060
Breakeven point =41500/210060=0.19
Projected Profit And Loss
The projected income statement for the first choice for car rent for the first three year is show below. The project profit for the first choice for car rent increases greatly at the start of the business. The income statement of the first choice is prepared in accordance with general accepted accounting standards.
Proforma income statement
years              1     2     3    
Sales              $650,000 $700,000 $740,000
cost of goods sold       $315,000 $327,000 $345,000
operating income        $335,000 $373,000 $395,000
                              
Expenses                          
general and administration   $14,700  $16,800  $19,420 
marketing expenses       $23,500  $27,500  $29,100 
rent              $25,000  $25000  $25000 
profession fees         $17,400  $19,340  $21,300 
insurance cost         $16,500  $16500  $16500 
travel and travel cost     $25,300  $34,500  $35,000 
tax, interest and depreciation $112,000 $126,000 $134,000
miscellaneous costs       $17,000  $23,000  $24,100 
Total operating costs      $251,400 $297,140 $316,120
                              
Other operating income                   
insurance services       $75,000  $95,000  $110,000
gasoline charges        $64,400  $76,140  $72,120 
Total operating income     $139,400 $171,140 $182,120
                              
net profit           $223,000 $247,000 $261,000
The projected income statement for the first choice for car rent for the first three year is show below. The project profit for the first choice for car rent increases greatly at the start of the business.
The income statement of the first choice is prepared in accordance with general accepted accounting standards.
Projected balance proforma balance sheet (yearly)
                              
Year            1     2     3    
Assets                           
Cash            $94,525  $125,125  $142,515 
Inventory          $87,156  $93,100  $97,215 
Vehicles          $257,569  $232,803  $216,475 
accumulated depreciation  ($24,020) ($29,165) ($36,145)
Total assets        $415,230  $421,863  $420,060 
                              
Liability and equity                    
Account payable       $24,805  $31,243  $45,845 
long term liability     $167,425  $143,620  $113,215 
Total liability       $192,230  $174,863  $159,060 
net worth          $223,000  $247,000  $261,000 
Total liability and equity $415,230  $421,863  $420,060 
                              
A projected financial position of a company is a document which discloses the assets, liability and the equity at a specific point in time. The balance sheet of the first choice for car rent is prepared in accordance with general accepted accounting standards.
##Projected Cash Flow
A projected cash flow is a financial statement that predicts the rate at which the money flow into the company and the way money will flow out of the company in future.
Projected cash flow is used by the management of a company for making decision on whether to borrow money to meet the deficit or not. It also helps to expose some fundamental problems with the company’s operation that needs to be permanently fixed
Proforma cash flow
                           
year           1     2     3    
cash from operation   $124,585 $299,895 $197,210
cash from receivables                
operating cash flow   $124,585 $299,895 $197,210
                           
other cash inflow                  
increases borrowing   $124,000 $0    $0   
sales of business asset $0    $0    $0   
A/P increase       $104,510 $140,543 $175,249
equity investment    $148,200 $0    $o   
Total other cash inflow $376,710 $140,543 $175,249
Total cash inflow    $501,295 $440,438 $372,459
                           
Cash outflow                     
repayment of principal  $41,251  $41,251  $41,626 
AP Decreases       $96,847  $98,124  $93,148 
A/R increases      $0    $0    $0   
Asset purchases     $139,473 $140,215 $121,147
divided         $129,199 $130,248 $99,148 
Total cash out flow   $406,770 $409,838 $355,069
NET cash flow      $94,525  $30,600  $17,390 
Cash Balance       $94,525  $125,125 $142,515
A projected cash flow is a financial statement that predicts the rate at which the money flow into the company and the way money will flow out of the company in future.
Projected cash flow is used by the management of a company for making decision on whether to borrow money to meet the deficit or not. It also helps to expose some fundamental problems with the company’s operation that needs to be permanently fixed