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