my assingment

8/3/2019 My Assingment

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1. The Economic Importance of Transportation

Like many economic activities that are intensive ininfrastructures, the transport sector is animportant component of the economy impacting on development and the welfare of populations.

When transport systems are efficient, they provide economic and social opportunities and

benefits that result in positive multipliers effects such as better accessibility to markets,employment and additional investments. When transport systems are deficient in terms of

capacity or reliability, they can have an economic cost such as reduced or missed opportunities.

Transport also carries an important social and environmental load, which cannot be neglected.Thus, from a general standpoint the economic impacts of transportation can be direct and

indirect:

Roads. The 20th century saw the development of road transportation systems and automobilemanufacturing. Individual transportation became a commodity available to the masses,

especially after the Second World War. This process was reinforced by the development of

national highway systems.

Transport also contributes to economic development throughjob creationand its derived

economic activities. Accordingly, a large number ofdirect(freighters, managers, shippers) and

indirect (insurance, finance, packaging, handling, travel agencies, transit operators) employmentare associated with transport. Producers and consumers take economic decisions on products,

markets, costs, location, prices which are themselves based on transport services, their

availability, costs and capacity.

4.5 Land Logistics

Land logistics is a very important link in logistics activities. It extends the delivery servicesFor air and maritime transport from airports and seaports. The most positive characteristic of

land logistics is the high accessibility level in land areas. The main transport modes of landlogistics are railway transport, road freight transport and pipeline transport.

Railway transport has advantages like high carrying capacity, lower influence by weatherconditions, and lower energy consumption while disadvantages as high cost of essential

facilities, difficult and expensive maintenance, lack of elasticity of urgent demands, and time

consumption in organizing railway carriages. Road freight transport has advantages ascheaper investment funds, high accessibility, mobility and availability. Its disadvantages are

low capacity, lower safety, and slow speed. The advantages of pipeline transport are high

capacity, less effect by weather conditions, cheaper operation fee, and continuous conveyance;the disadvantages are expensive infrastructures, harder supervision, goods specialization, and

regular maintenance needs.

The excessive usage of land transport also brings many problems, such as traffic jams,

pollution and traffic crashes. In the future, to improve the land transport in transportefficiency and reliability, a revolution of transport policies and management is required, e.g.

pricing.
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Detail of my Business

Name of the enterprises Green Hazara EnterprisesAddress Sheerian Jinnah colony kemari Karachi

Terminal Location Zulfiqarabad near Port Qasim

Nature Chemical and Petroleum TransportationE mail greenhazara.ent.comTelephone 021-39876543

Number of Employees 120

Services provided my green Hazra enterprises

Petroleum transportation services all over the country Chemicals transportation services all over the country

Molasses transportation services only Sindh and Punjab Palm oil transportation services in Sindh and Punjab

Competitors

Any person or entity which is a rival against

another. In business, a company in the same

industry or a similar industry which offers asimilar product or service. The presence of one or

more competitors can reduce the prices ofgoods

and services as the companies attempt to gain a

larger market share. Competition also requirescompanies to become more efficient in order to

reduce costs. Fast-food restaurants McDonald's

and KFC are competitors, in transportation ofchemicals and petroleum products Green Hazara and Al Haj Enterprises

Major competitors of green Hazara enterprises are

Al Haaj enterprises

Strong points

Working from last 15 years Have huge capital resources Very big fleet of vehicles Ability to invest more
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Weaknesses

Traditional style of business dealing Maximum fleet consist of old vehicles Unskilled and un trained staff

Mengal Enterprises

Strong points

Working from last 12 years Also have huge capital resource Have political background 50 percent fleet consist of new models vehicles

Weaknesses

Old style of keeping financial records Running other businesses also Mostly staff consist of uneducated people specially fleet management and

drivers

Market Share

Market share is used by businesses to determine theircompetitive strength in a sector as compared to other

companies in the same sector. It also allows you to

accurately assess your performance from year to year.

Market share shows us how much market we are grabbing.How much people are satisfied from our good, services and

products. Market share determine the influence of our

company in a particular sector or market. If any companygrabs more percentage of market share than its competitors

its mean this company influencing more in the market than

its competitors.

Increased market share is not always the best solution for

businesses. Increased market share must be related withprofitable terms rather than just holding more market and

not getting profit. It might not be profitable if it is associated with expensive advertising or a big

price decrease. A company may not be able to meet the demand of an increased market share

without huge investments in new equipment and employees. Managing market share, therefore,is a very important aspect of managing a business.


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The market share of Green Hazara Enterprises

I develop four basic strategies to improve and maximize the market share of Green HazaraEnterprises.

Improve our services than our competitors. We can reduce the price or offer special incentives for customers, such as discounts. Invest more in business if there is a need. This requirement can full fill by taking short

and long term loans.

Can advertise and make people aware the new standards of transportation, this strategywill help to improve market share.

Financial requirement

Finance is the back bone of any business. Without

finance no one can start any business. Ransom amount

of finance may increase the chance to combat with the

competitors. Every business man and organization mushhas the enough backup of more finance to put in if there

is a need to make our business stable.

Financial condition of Green Hazara Enterprises can be

analyzed from following balance sheet.

Market share 1st Al Haj 30%

2nd Mengal 24%

3rd Green hazara 21%

4th M.M Malik 11%

5th Remaining 14%


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GREEN HAZARA ENTERPRISES

BALANCE SHEET

AS ON OCT 31, 2010

Assets Liabilities & Owners Equity

Current Assets

Cash 800000

Bank 3000000

Prepayments 700000

Total current assets 4500000

Fixed Assets

Furniture 300000

Land 1000000

Building 900000

Office supplies 100000

Vehicles 3100000

Total Fixed Assets 5400000

Current Liabilities

Short term loan 1000000

Non Current Liabilities

LONG TERM LOAN 2300000

Total Liabilities 3300000

Owners Equity

Capital 6600000

Total Assets 9900000 Total Liabilities & Owners Equities 9900000


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Future prospective

Every business man wants to grow and expend more and more in

his business field. After analyzing the present conditions and the

chances of the success he made some future prospects. Future

prospects play a vital role in stabilizing and expending the

business. While making future prospects we must be very realistic

because any unrealistic or idealistic prospects will waste our time

and capital.

Future prospects of Green Hazara Enterprises are as follows.

To establish the standard and certified personal vehicles yard out side the city. To manage transport management program for our staff. To expend our business globally. With in next 10 years make my company the biggest transportation company of Pakistan. To open transport management institute with in coming 15 years. With in coming 2 years open 2 new offices 1st in Lahore 2nd in Islamabad Container transportation all over the country.

Swat analysis

Swat analysis provide information that is helpful inmatching the firms resources and capabilities to the

competitive environment in which it operates. As such, it is

instrumental in strategy formulation and selection.1

SWOTstands for strengths, weaknesses, opportunities, and threats.

Strengths and weaknesses are internal factors. Opportunities

and threats are external factors.

No business can be perfect in all aspects every business havesome strengths and weaknesses. As far as the externalfactors are concern the door of opportunities and threats

keep open for every business. This is the place where business has to combat the

competitors on huge basis.

1http://www.quickmba.com/strategy/swot/


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The swat analysis of Green Hazara enterprises is.

Internal factors

Strengths We have the well educated and trained staff including drivers. We have the latest models vehicles according to international

standard.

Health, safety and security rules are implemented strictly. We pay more to drivers as compare to our competitors. As we are providing standard transportation on same market rate

but our competitors dont concern about the standard. This point

will go in the favor of our transportation company.

Our all vehicles have tracker system which will reduce the chancesof robbery.

Weaknesses We are new in the market. We have small capital as compare to our major competitors. Its difficult to manage the modern transport standards in

traditional society.

As far as our society and competitor nature is concern they can useother indirect ways to suppress us like threats to our staff and

political pressure as well.

External factors

Opportunities As we are growing rapidly in a few years we can become the

biggest transport company of Pakistan.

As we are maintaining the international standards we can get theinternational transportation contracts easily.


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Threats Our competitors can hiear the trained people also Our competitors have huge capital to invest in their business. Road accidents may cause a real damage because transportation of

chemicals and petroleum products always being dangerous.

As we know the instability of political conditions in Pakistan andchanges in Government policies regarding to new taxes may affectthe health of our business.

Exit strategy

The method by a venture capitalist or business ownerintends to get out of an investment that he or she has made

in the past. In other words, the exit strategy is a way of

"cashing out" an investment. In the context of an active

trader, a plan as to trade will be closed out.2

Business organizations are also like living organism theyborn. They grow in particular environment and one day

either they end or merge with others and lost their identity. When we start a new business, or as

we develop strategies and plans to grow our business, we must need to think about our business

exit strategy. If, one day, we plan to exit our business and transform our equity into cashthrough a sale, merger and change into other business need to prepare for that every step along

the way.

The exit strategies for Green Hazara enterprises are as follows.

1st option is that I will try to make merger with other transportation organization.

2nd option is this that I will give my vehicles on rent to my competitors and otherbig organization like PSO, SHEL Pakistan, Total and Bosicor etc.

3rd and the last option is this that I will sellout all the vehicles, office furnitureand other office supplies at market price and try to minimize the loss. Having paid

the all liabilities I will reduce the chances of my capital loss.

2http://www.investopedia.com/terms/e/exitstrategy.asp


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