Bus Plan 12 1998

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Bus Plan 12 1998

  1. 1. GALANDER S.R.L. BUSINESS PLAN DECEMBER 1998
  2. 2. <ul><li>TABLE OF CONTENTS </li></ul><ul><li>Introduction: Target and Scope of our work </li></ul><ul><li>Executive Summary </li></ul><ul><ul><li>Market Situation </li></ul></ul><ul><ul><li>Competence performance </li></ul></ul><ul><ul><li>Trends </li></ul></ul><ul><ul><li>FCC (CNC) </li></ul></ul><ul><li>Company Mission Statement </li></ul><ul><li>Policies Statement </li></ul><ul><li>Short, medium and long range objectives Statement </li></ul><ul><li>Executive Summary about the Distributor </li></ul><ul><ul><li>Organization chart of the future Sales organization </li></ul></ul><ul><ul><li>Strengths, Opportunities, Weaknesses, Threats Analysis </li></ul></ul><ul><ul><li>Present Resources </li></ul></ul><ul><li>Business Plan (for each of the stated goals and plans, determine actions, responsible and due date) </li></ul><ul><ul><li>Market/Development areas identification (P.A.M.R. Primary Area of Marketing Responsibility) </li></ul></ul><ul><ul><ul><li>Area and vertical markets development </li></ul></ul></ul><ul><ul><li>Coverage, present numbers and goal analysis </li></ul></ul><ul><ul><ul><li>Number of Dealers </li></ul></ul></ul><ul><ul><ul><li>Other channels </li></ul></ul></ul><ul><ul><ul><li>Location </li></ul></ul></ul><ul><ul><ul><li>Sales Forecast per Dealer/ new channel </li></ul></ul></ul><ul><ul><li>Sales Forecast, goal and fulfillment progress </li></ul></ul><ul><ul><li>Direct and Indirect Sales Statement </li></ul></ul><ul><ul><li>Prices Strategy </li></ul></ul><ul><ul><li>Human Resources requirements, recruitment detail </li></ul></ul><ul><ul><li>Training requirements </li></ul></ul><ul><ul><li>Promotional actions </li></ul></ul><ul><ul><ul><li>Target market </li></ul></ul></ul><ul><ul><ul><li>Offer (Push/Pull) </li></ul></ul></ul><ul><ul><ul><li>Duration period </li></ul></ul></ul><ul><ul><ul><li>Incremental Sales Forecast </li></ul></ul></ul><ul><ul><ul><li>Investment measure and control Process </li></ul></ul></ul><ul><li>Technical Service </li></ul><ul><li>Administration </li></ul><ul><li>Technical Service Sales and Purchasing Procedures (Spanish) </li></ul><ul><li>Appendix I: COMTROM ARGENTINA (Spanish) </li></ul><ul><li>Appendix II: ELECTRIC METERS PROJECT (Spanish) </li></ul><ul><li>Appendix III: Automatic Vehicle Satelital Location System </li></ul><ul><li>Apendix IV: Financial Statements </li></ul><ul><ul><li>Cash flow - 1997 </li></ul></ul><ul><ul><li>Bank and Commercial references </li></ul></ul><ul><ul><li>Balance Sheet for 1996 and 1997 (Spanish) </li></ul></ul>
  3. 3. This Report intends to provide MOTOROLA , GALANDER S.R.L. Business Plan. This evaluation has been prepared upon request of MOTOROLA interested in selecting Distributors for Argentina Market. GALANDER S.R.L . is a family company that was founded in 1978 and we based our analysis on its trajectory. GALANDER S.R.L. headquarter is located in the interior of the Country, in the city of Córdoba. Due to its geographic location and considering that the competence in Buenos Aires did not take it into account, our Company started dealing with small achievements that later became Big Companies. National Companies were decentralized and started to purchase in the interior of the country, looking for local support and technical service quality. Nowadays, Customers keep a direct and close contact with our Company managerial level. They identify themselves with GALANDER S.R.L. because we belong to the interior of the country, that is why we interpret their requirements and we adapt to the regional characteristics of the different markets of the country, such as: traditions (timetables), need of specific radio equipment (depending on the regions). PURPOSE AND SCOPE OF OUR WORK INTRODUCTION:
  4. 4. ARGENTINA’S COMUNICATIONS MARKET SITUATION: During the 80’s Empresa Nacional de Telecomunicaciones (Entel) was privatized, and the National Commission of Communications (FCC in U.S.A.) was in a reorganization process. This process produced new norms and rules which facilitated the arrangement of new technologies. Privatization meant “The need of communication”. It motivated the demand of being communicated quickly and efficiently. This industry has made important investments in incorporation of technology over the last years. This enabled communications market to grow and supply domestic demand, particularly in the Two Way Radios segment. In 1990 Companies belonging to the sector that traded 2-Way Radios, Trunking and Telephones were developed because they adapted the product to the customer needs. The arrival of new systems, such as Cellulars, Pagers, Trunking, Radio equipment of data transmission caused a segmentation in the communications market: This market grew because of the emergence of new niches, that caused the development of new business opportunities and consequently consumers requirements changed: they had “other alternatives” to choose. Such environment forced companies to improve the quality of their services and work better in order to achieve more professional sales, offering customers more dynamic services and quick answers. Nowadays there are three big companies in the sector, one of them is situated in the province of Córdoba and the rest in the province of Buenos Aires. EXECUTIVE SUMMARY
  5. 5. COMPETENCE: Due to the mentioned customer requirements just few companies survived. They were only 3 (three) companies managing the market with a participation of: Argentina's Communications Market Participation Galander 38% BGH 30% Multiradio 22% Other 10% Total 100% GALANDER S.R.L. Sales Distribution - The 38 % are split up into: Buenos Aires 18% Interior 82% Total 100%
  6. 6. SCENARIOS
  7. 7. <ul><li>TRENDS: </li></ul><ul><li>The Table Below shows the trend in the communications market: </li></ul><ul><li>This shows that the trend was stabled during the three years time period. </li></ul><ul><li>Communication market requires: </li></ul><ul><li>Demand in service </li></ul><ul><li>Speed and agility in answer to the customer </li></ul><ul><li>Service and Price </li></ul><ul><li>Solution “Turnkey operation” </li></ul><ul><li>Added Value to the product </li></ul><ul><li>Personalized treatment </li></ul><ul><li>To devote an specific supplier on each kind of trade </li></ul><ul><li>Expansion of the market </li></ul>
  8. 8. NATIONAL COMMISSION OF COMMUNICATIONS-CNC (FCC in U.S.A.) Less bureaucracy in the regulator Organism, allowing Customers to access to licenses and frequencies in an easier way. Performance of the CNC in the process of changes: It produced an important organization without restricting (with successes and errors) Disappearance of amateurs radio equipment, concentrating the sales on professional people Due to the reception of customer inquires, GALANDER S.R.L. turn into a connection between the user and the CNC.
  9. 9. <ul><li>TO OFFER A WIDE RANGE OF HICH-TECH COMMUNICATIONS SOLUTIONS IN ORDER TO PROVIDE THE BEST PARTNERSHIP TO SOLVE BUSINESS REQUIREMENTS. </li></ul>COMPANY MISSION STATEMENT
  10. 10.  Continuous training of our human resources.  To consider our Dealers as partners  To assess the satisfaction level of our Dealer customers, that is to say &quot;OUR CUSTOMERS&quot;  To keep the added value level in the whole Distribution Chain  Control the fulfillment of GALANDER S.R.L. work and service philosophy in the entire Value Chain  Continuous review of internal processes in order to achieve efficiency in technical service: no delays  To avoid indebtedness  To maintain low administration costs  To take care of the Quantity of Dealer Businesses so as not to saturate the market POLICIES STATEMENT
  11. 11. <ul><li>LONG TERM OBJECTIVES STATEMENT: </li></ul><ul><li>To obtain the first place of MOTOROLA 2-way radios market share, through: </li></ul><ul><li>Development of distribution net in order to set the best and major distribution chain in terms of telecommunications </li></ul><ul><li>Integrate of Motorola products our HI TECH communications project all over the country. </li></ul><ul><li>Development of Strategic Alliances with important cities Dealers so as to be present in the whole country </li></ul><ul><li>Increasing our sales volume and diminish our exposure to the changes in the economic environment, by the merchandising analysis of the 2-ways radios within new markets </li></ul>LONG, MEDIUM AND SHORT TERM OBJECTIVES STATEMENT
  12. 12. <ul><li>MEDIUM TERM OBJECTIVES STATEMENT: </li></ul><ul><li>Satisfaction of clients' necessities </li></ul><ul><li>Detection of new market niches </li></ul><ul><li>Reinforcement of the supporting image of MOTOROLA in function to our attitude of service </li></ul><ul><li>Strengthening MOTOROLA Distribution Chain </li></ul><ul><li>Increase of sales, with appropriate policies to the market segments. </li></ul><ul><li>Acknowledgement of the product to our customers to make them identify with MOTOROLA </li></ul><ul><li>Training and transmission of the know how to Dealers </li></ul><ul><li>Attraction of the unsatisfied market of MOTOROLA, transferring them to the new product </li></ul><ul><li>Diffusion of Motorola products and accessories unknown in the country </li></ul><ul><li>Quality Certification of the Technical Service </li></ul>
  13. 13. SHORT TERM OBJECTIVES STATEMENT:  Empowerment of Human Resources with continuous training  Motivation program to promote Direct and Indirect Sales  Implementation of a Mileage System for Dealers  Distribution of monthly Mailings showing the Top 10 ranking of the Best-seller Dealers  Reduction of operative costs to minimize possible economy changes impact  Development of Banking negotiations to keep alternative financing sources  Administration of the resources provision for the different areas  Planning a Salary Structure, that allows variable wages depending on quality and commercial objectives
  14. 14. <ul><li>EXECUTIVE SUMMARY ABOUT THE DISTRIBUTOR </li></ul><ul><li>ORGANIZATION CHART OF THE FUTURE SALES ORGANIZATION: </li></ul>----- TECHNICAL SERVICE
  15. 15. STRENGTHS, OPPORTUNITIES, WEAKNESSES, THREATS ANALYSIS
  16. 16. PRESENT RESOURCES Technological: Capacity of production Engineering and own developments Instrumental and radio equipment of advanced Management Information System (MIS) Human resources: Especialized Manpower Low rotation of personal Financial: Own financing (self-financing) There is not indebtedness Commercial: Differentiated distribution channel Exclusive Dealers
  17. 17. MARKET / DEVELOPMENT AREAS IDENTIFICATION (P.A.M.R. PRIMARY AREA OF MARKETING RESPONSIBILITY) BUSINESS PLAN GALANDER S.R.L. P.A.M.R. We estimate a 70% of Indirect sale and a 30% of Direct sale.
  18. 19. See attachment: “ Sales_forecast.xls”
  19. 20. VERTICAL MARKETS WLL (Wireless Local Loop) Hypermarkets Outdoor activities Security Corp Intercom for Private neighborhoods NEW MARKETS 1) COMTROM ARGENTINA (developed) 1) LINSAT (developed) 3) ELECTRIC METER PROJECT 4) SPECIAL ACCOUNTS SERVICE PRESENTATION (not developed) 5) SPECIAL ACCOUNTS AND GOVERNMENT NETS (not developed)
  20. 21. COMTROM ARGENTINA Galander s.r.l. will lend a new Communications Service covering most of our Country cities, with automatic Roaming Service. Nowadays it has the CNC authorization, law resolution “SC Nº 2267 for the first stage “project launching in the provinces of Córdoba, Tucumán and Santiago del Estero. With a total of 25 channels. This project arises of a survey carried out among users of varied communication services (Trunking, conventional, Cellular Radios, Paging) and in function of the results an specification of a new communications product was produced with full success possibilities. Technology that could be used as support of this new product was studied and was determined that the best one was “Smartrunk”, for various reasons. A) The great diffusion that these systems have had in the entire world. B) The experience accumulated by our company in this technology C) The integration possibilities with other systems. Etc So is born the Bolster of Control ISX-510. Heart of the system Defined as POWER STATION FOR PROSECUTION OF COMMUNICATIONS And Administration OF SERVICES. (See Appendix I)
  21. 22. ELECTRIC METERS PROJECT This is a Project carried out in agreement with an associate company. It is destinated to control and reading of users Electric Meters Special Accounts. The system takes advantage of the available electric continuity between the Energy Companies transformers and the users. It concentrates users information (supplied by) them in a device created to the effect and from there via Two Way Radio System, to the Power Station. (See Appendix II) LINSAT ARGENTINA Galander s.r.l. created it to offer Transport Logistics Services with a satelital location System. We have our own, available digital cartography. Modems and GPS manufactured in Canada in agreement with Galander s.r.l.
  22. 23. <ul><ul><ul><ul><li>PRICE STRATEGY </li></ul></ul></ul></ul><ul><li>Setting of prices list with discount levels according to the following parameters: </li></ul><ul><li> </li></ul><ul><li>Sales Volume (Per Dealer and Zone): up to 8% </li></ul><ul><li>Payment term (0 / 30 / 30-60 / 30-60-90): up to 8% </li></ul><ul><li>Supplier's exclusivity: up to 2% </li></ul><ul><li>Technical service: up to 2% * * </li></ul><ul><li>TOTAL DISCOUNT up to 20% </li></ul><ul><li>Dealers are evaluated and qualified periodically, accessing in this way to the different discount percentages. This evaluation is carried out by Commission integrated by 3 areas: Administration, Commercial and Technical Service. </li></ul><ul><li>DIRECT SALES: The price strategy is specifically analyzed for each operation, commissioning in some cases, Dealers of the respective zone according to the participation and post sale level. </li></ul>
  23. 24. TRAINING REQUIREMENTS It is directed to three areas: a) Commercial Department b) Technical Service c) Marketing MOTOROLA support in this sense is fundamental for the success of the fixed objectives. We will demand permanent training, it must be according to MOTOROLA general Policies. For that reason the creation of direct communication channels with our laboratory technicians will be fomented for the evacuation of doubts that can arise. The three mentioned areas possess a high training and motivation level, however is basic to achieve in them a high MOTOROLA products identification level.
  24. 25. <ul><ul><ul><ul><li>PROMOTIONAL ACTIONS </li></ul></ul></ul></ul><ul><li>TARGET MARKET: Segmented per zones, detecting specific needs </li></ul><ul><li>OFFER (PUSH/PULL): 1) GENERAL (INSTITUTIONAL) </li></ul><ul><li>2) SPECIFIC FOR EACH VERTICAL MARKET, ZONE </li></ul><ul><li> AND PRODUCT </li></ul><ul><li>SALE PROMOTIONS: </li></ul><ul><li>MAILINGS: Distribution of Mailings to our Dealers informing our Ranking of the Top 10 Dealers. </li></ul><ul><li>DEALER CONVENTIONS: For training of products and sale techniques </li></ul><ul><li>EXCHANGE: GALANDER S.R.L. receives the used radio equipment and credits an amount for the purchase of a new one. </li></ul><ul><li>GRAPHIC ADVERTISING: Equivalent to a discount ticket. </li></ul><ul><li>DISCOUNT: If you buy an radio equipment, the second one goes with a discount. </li></ul><ul><li>DEALER ACCOUNT: To Credit a percentage of the sales in the Dealer Account to be applied as payments of future purchases. </li></ul><ul><li>MILEAGE SYSTEM FOR DEALERS: Each product sale has its equivalent in points. When the Dealer accumulate a determined quantity of points, he will receive a % of discount for next purchases. </li></ul><ul><li>Point of sale material </li></ul><ul><li>DURATION PERIOD: Based on our experience the advertising campaigns should have an approximate duration of 60 days. </li></ul><ul><li>INCREMENTAL SALES FORECAST: 1) Optimist 10% </li></ul><ul><li>2) Conservative 5% </li></ul><ul><li>INVESTMENT MEASURE AND CONTROL PROCESS : Reception of a Sheet completed by each Dealer containing customers data and the specific promotion made, to be evaluated globally. </li></ul>
  25. 27. TECHNICAL SERVICE OBJECTIVES: &quot;To achieve post-sale service excellence &quot; Customer satisfaction is looked for and will be achieved with: Low repair costs Speed (the target is that the customer has the radio equipment repaired in no more than three days) To assure confidence of the repaired radio equipment. Database that will contain the whole record information of each radio equipment that enter to be repaired. This database will be updated with Dealers monthly Reports . Laboratory technicians training carried out by MOTOROLA. Our Laboratory technicians with MOTOROLA support will qualify each Dealer Technical Services Department. Technical Service Departments will be qualified according to Human and Technical Resources as follow: Very good Good Average This qualification will be updated periodically and promoted permanently Repair levels of complexity will be set for each product, so as Dealers repair the levels for those that have qualified, according to the previous point. Repaired radio equipment quality controls will be carried out. In the medium term, Technical Service Departments will be created for each geographic area depending from GALANDER S.R.L. This Departments will enable Dealers make the repairs of the highest levels. A permanent stock of repair parts per radio equipment will be maintained so as to avoid delays.
  26. 28. <ul><li>BANK REFERENCES </li></ul><ul><ul><li>Banco del Suquia </li></ul></ul><ul><li>Av. Sabattini 2375 – Córdoba - ARGENTINA </li></ul><ul><li>Cta. 115/4 </li></ul><ul><ul><li>Banco de Crédito Argentino </li></ul></ul><ul><li>Av. Sabattini 2301 – Córdoba - ARGENTINA </li></ul><ul><li>Cta. 618/2 </li></ul><ul><ul><li>Banco de Galicia </li></ul></ul><ul><li>Av. Juan B. Justo 233 – Córdoba - ARGENTINA </li></ul><ul><li>Cta. 975-0054/8 </li></ul><ul><ul><li>Santander Investment </li></ul></ul><ul><li>BANCO DE SANTANDER Y BANCO RIO </li></ul><ul><li>Chacabuco 1338 – Córdoba – ARGENTINA </li></ul><ul><ul><li>Bank Audi </li></ul></ul><ul><li>19 east 54 Street </li></ul><ul><li>New York , NY 10022 </li></ul><ul><li>USA . </li></ul><ul><ul><li>Banco de la Provincia de Córdoba </li></ul></ul><ul><li>San Jeronimo 137 - Córdoba </li></ul><ul><li>Cta. 53792/5 </li></ul>
  27. 29. <ul><li>COMMERCIAL REFERENCES </li></ul><ul><ul><li>Foreign </li></ul></ul><ul><li>YAESU U.S.A. </li></ul><ul><li>17210 Edwards Rd., Cerritos, California </li></ul><ul><li>USA. </li></ul><ul><li>AUDIOVOX CORP. </li></ul><ul><li>150 Marcus Blvd. Hauppage,N.York 11788 </li></ul><ul><li>USA. </li></ul><ul><li>UNITED WIRELESS TECHNOLOGIES INC. </li></ul><ul><li>1140 Holland Drive - Suite 4 – Boca Raton.,FLA. 33487 </li></ul><ul><li>USA . </li></ul><ul><li>TRANSCRYPT INTERNATIONAL INC. </li></ul><ul><li>4800 N.W. 1st. , Lincoln , Nebraska 68521 </li></ul><ul><li>USA. </li></ul><ul><ul><li>PRECISION TUBE COMPANY - COAXITUBE DIVISION </li></ul></ul><ul><li>620 Naylor Mill Road, Salisbury, Maryland 21801 </li></ul><ul><li>USA . </li></ul><ul><li>SIGTEC AMERICA INC. </li></ul><ul><li>1555 Howell Branch Rd., Winter Park, Florida 32789 </li></ul><ul><li>EEUU </li></ul><ul><li>LARSEN ELECTRONICS INC. </li></ul><ul><li>P.O.Box 1799, Vancouver, Wichita 98668-1799 </li></ul><ul><li>USA . </li></ul><ul><ul><li>Nationals </li></ul></ul><ul><li>TELECOM ARGENTINA S.A. </li></ul><ul><li>TELEFONICA DE ARGENTINA S.A. </li></ul><ul><li>COMPAÑIA DE RADIOCOMUNICACIONES MOVILES S.A. </li></ul><ul><li>(MOVICOM) </li></ul><ul><li>CTI COMPAÑIA DE TELEFONOS DEL INTERIOR S.A. </li></ul><ul><li>YPF (YACIMIENTOS PETROLIFEROS FISCALES) S.A. </li></ul><ul><li>GENERAL MOTORS ARGENTINA S.A. </li></ul><ul><li>FIAT AUTO ARGENTINA </li></ul><ul><li>CIADEA (RENAULT ARGENTINA) S.A. </li></ul><ul><li>BANCO ISRAELITA DE CORDOBA S.A. </li></ul><ul><li>ACEITERA GENERAL DEHEZA S.A. </li></ul><ul><li>BANCO DE LA PROVINCIA DE CORDOBA </li></ul><ul><li>FORD MOTORS ARGENTINA </li></ul><ul><li>ORESTE BERTA S.A. </li></ul><ul><li>BENITO ROGGIO S.A. </li></ul>
  28. 30. PROCEDURES (Spanish)

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