INITIAL WORK PLAN FOR BUSINESS PLAN GENERATION OF AIR CARGO

INDUSTRY

Table of Contents Introduction .................................................................................................................................................. 2

Critical Points of Air Cargo Business: ............................................................................................................ 2

Summary of Work Plan: ................................................................................................................................ 3

Macro Environmental Analysis: ................................................................................................................ 4

Tasks: ..................................................................................................................................................... 4

Required resources: .............................................................................................................................. 4

Market Definition: ..................................................................................................................................... 4

Tasks: ..................................................................................................................................................... 4

Required resources: .............................................................................................................................. 4

Customer Analysis: .................................................................................................................................... 4

Tasks: ..................................................................................................................................................... 4

Required resources: .............................................................................................................................. 5

Competitor Analysis: ................................................................................................................................. 5

Tasks: ..................................................................................................................................................... 5

Required resources: .............................................................................................................................. 5

Supplier Analysis: ...................................................................................................................................... 5

Tasks: ..................................................................................................................................................... 5

Required resources: .............................................................................................................................. 5

Market Demand Forecasting: ................................................................................................................... 6

Tasks: ..................................................................................................................................................... 6

Required resources: .............................................................................................................................. 6

Business Plan Generation: ........................................................................................................................ 6

Tasks: ..................................................................................................................................................... 6

Required resources: .............................................................................................................................. 6

Timeline for this Project: ............................................................................................................................... 7

Costing for this Project:.................................................................................. Error! Bookmark not defined.

Consultancy Fee for the Project: ................................................................................................................... 8

Introduction

A complete background research and comprehensive business plan based on the research findings is

very much important for starting a new venture. The activities in those two initial steps depend on

various factors. Investment size, characteristics of the industry, financial and technological dependency,

payback period and various other subjective matters usually determines the scope and dimension of the

homework.

Critical Points of Air Cargo Business:

Highly Capital Intensive.

Huge Entry & Exit Barrier.

Air cargo is a derived business.

Technology has huge impact on this business.

High quality assurance is required as airline industry requires zero tolerance on error.

High risk associated in this industry.

The theory of higher risk and higher return is not maintained for this industry.

Operates in niche market.

Considering the above mentioned critical issues of air cargo industry it is evident that any business

decision such as expansion or new venture requires substantial background work and planning as the

stakes are higher in this industry.

On this regard, we are here proposing a work plan to conduct initial activities requires for making

investment decision in this industry.

Summary of Work Plan:

Macro environmental Analysis

Analyze business potential of the country where the venture will operate

Requires to analyze the macro economic data related to air cargo industry.

This task can be outsourced or done internally if sufficient expertise and resource is available

Market Definition

Defining the market is very crucial point in air cargo business.

Due to high cost of air cargo service not all markets take the services of air cargo.

As air cargo is a derived, the growth and future of this business depends on the other businesses.

Customer Analysis

As the air cargo is costly in comparison to other transportation system, air cargo has to operate in niche market.

Working in niche market requires detailed analysis on the customer segment.

Competitor Analysis

Competitor analysis is another vital aspect to be considered in detail.

Air cargo companies have to analyze not only the competitors within the air cargo industry but also other transportation industry.

Establishing the value proposition largely depends on the Competitor Analysis

Supplier Analysis

There are very limited suppliers in Aviation industry, but the complexity in the business model of Air cargo industry requires substantial homework on supplier analysis.

Based on the analysis of Market, Customer and Comeptitor the air cargo company has to select the supplier and ensure perfect alignment with the requirements.

Market Demand Forecasting

As this business is highly capital intensive as well as payback period is longer than other industry, company has to conduct pin point forecast on market demand and forecasted period has to be longer than usual forecast period.

Simulation and Sensitivity Analysis have to complete to determine the possible risk factors and ways to address them.

Business Plan Generation

After completing all the previous homework company has to start in generating the business plan.

Business Plan generation is the 1st step of business startup.

Perfect pitching of the business plan largely depends on how much detailed analysis has been conducted in preparing the business plan.

Macro Environmental Analysis:

Tasks:

Collecting present macro-economic data related to Air cargo Industry

Forecasting the macro-economic environment for a period of 15-20 years.

Use sensitivity or simulation analysis to identify the risk factors and ways to address them.

Required resources:

Financial consultants having expertise on air cargo industry & macro economy or pool of

consultants having expertise on air cargo industry and macro economy.

Can be outsourced to consulting having expertise on air cargo industry & macro economy.

Market Definition:

Tasks:

Detail prospective customer analysis to sort out the target customer group

Estimation on total possible market share.

Set initial market share target, which the company wants to achieve.

Required resources:

Collection of industry data, industry trend and all other required information to determine and

forecast the size of the market.

Management of the company has to set a target market share on yearly basis which they want

to get.

Company can hire or outsource the task of collection and analysis of market related data.

Consultant having expertise in this industry can be hired for providing the forecasting on

industry.

Based on the analysis of the forecast provided by the consultant management will finalize their

market share achievement target or recommend modification on the analysis.

Customer Analysis: As it has already mentioned that the air cargo operates in niche market and it is a derived market, the

prospects of this business largely depends on the other industries. Customer analysis is very much vital

in this business.

Tasks:

Finalizing the target customer group within the market defined in previous steps.

Creating a complete profile of the target customer group.

Considering the business growth of the target customer group.

Established standardized operational framework with the target customer group

Ensure substantial value proposition for target customer group.

Required resources:

Collection of target customer groups business attributes.

Information regarding the potential business growth of the target customer group.

Consultants having expertise on those industries of the target customer group or using research

reports on those industries where the target customer group operates.

In house expertise can be used or outsourcing can be done for the activities related to value

proposition creation.

Competitor Analysis: Due to high cost associated with air cargo delivery, the air cargo industry has huge backdrop with other

transportation mediums on costing. For this the air cargo industry has to complete a competitor analysis

not only within the air cargo industry but also with other industries involved in transportation business.

Tasks:

Analyzing competitors within the air cargo industry.

Analyzing the competitors within the transportation industry.

Creating value proposition over the competitors within the transportation industry.

Required resources:

Characteristics of the competitors within the air cargo industry.

Characteristics of the competitors within the transportation industry.

In house expertise on air cargo industry or hiring consultant to create the value proposition over

the competitors.

Supplier Analysis: There are very limited suppliers in Aviation industry, but the complexity in the business model of Air

cargo industry requires substantial homework on supplier analysis.

Tasks:

Identifying the requirements based on the analysis on target customer group, requirements of

the target customer group and projection on demand.

Collecting the offers from suppliers based on the analysis on requirements.

Selecting the supplier after analyzing the economic viability, technical requirement fulfillment

and feasibility study on business operation with the selected supplier.

Required resources:

A pool of in house expertise or hired consultants can be used for this process, which has

extensive knowledge and experience in handling air cargo business.

Market Demand Forecasting: As this business is highly capital intensive as well as payback period is longer than other industry,

company has to conduct pin point forecast on market demand and forecasted period has to be longer

than usual forecast period.

After completing all the previous steps mentioned above the market demand forecasting can be done

more precisely and with higher accuracy.

Tasks:

Preparing a market demand forecast considering all the factors from previous steps mentioned

above.

The market demand forecast has to be completed for a longer period than usual forecast period.

Simulation and sensitivity analysis on the demand forecast prepared.

Identifying the key risk factors and possible implications.

Required resources:

Analysis conducted at previous steps.

In-house experts or hired consultants having experience in this industry.

Business Plan Generation: Success of business venture largely depends on the business plan. Perfect business plan ensures perfect

pitch of the venture. Though perfect execution is very much vital, perfect business plan is most

important factor for perfect execution. For this reason we proposed extensive groundwork

requirements before business plan generation.

Tasks:

Preparing a market demand forecast considering all the factors from previous steps mentioned

above.

The market demand forecast has to be completed for a longer period than usual forecast period.

Simulation and sensitivity analysis on the demand forecast prepared.

Identifying the key risk factors and possible implications.

Required resources:

Analysis conducted at previous steps.

In-house experts or hired consultants having experience in this industry.

Preparing the business plan following the traditional business model generation principles.

Customizing the business plan in accordance with the characteristics of Air cargo industry.

Timeline for this Project:

The timeline might vary depending on the speed of the data availability.

Macro Environmental Analysis

Defining Parameters

Data Collection & Analysis

Market Definition

Identifying Market Segments

Data Collection

Market Analysis & Forecast

Customer Analysis

Selecting Target Customer Group

Customer Profile Creation

Forward Looking Analysis

Competitor Analysis

Listing the Competitors

Competitor profile creation & Analysis

Supplier Analysis

Listing of Suppliers

Data Collection

Analysis

Market Demand Forecasting

Organize Relevant Data

Data Analysis

Demand Forecast for 15 Years

Business Plan Generation

Consultancy Fee for the Project: Total Consultancy Fee for this particular project is BDT 600,000 (BDT Six Hundred Thousand only)

excluding Tax and VAT, relevant data acquisition cost, and other incidental cost. Extra work

requirements within the project will incur additional fee. The fees are to be paid as per the following

milestones:

Milestone no Milestone Milestone Payment

1 Agreement Signing of the work 20% of the total fee

2 Submission of Draft Report 70% of the total fee

3 Submission of the final Report 10% of the total fee

# Other Charges When it is to be incurred