Business name: Emirati Courier and Errand Express ltd
Landmark: Opposite Four Point Sheraton Hotel
P.O Box: 242446, Dubai
Principals: Ali. M. Farouk, Riyadh bin Mohamed and
Executive summary
The mission of the company is to be the no.1 courier and errand service provider in the U.A.E providing the most reliable and consistent service realized through dedicated customer service that focuses on customers’ needs. The goal of the company is to cover at least three quarters of the areas of the U.A.E within an operational term of 5 years and increase the profits of the company by 40% within the same period of operation.
The company will provide errand services which are meant to conduct simple errands like laundry pick-up and dropping, shopping for household items etc. which would be an inconvenience to a busy middle class Emirati; letter mail service that provides dedicated rider services to pick up and deliver mail items; parcel services which offer the delivery of packages as a door to door service; and finally financial services, which is a future investment opportunity that the company will pursue in the near future, and is aimed to combat the fears of financial transactions through online shopping.
The company will target the professional Emirati middle class that has been thriving over the years. The market for courier and errand services has presented a ripe opportunity because many of these professionals are seeking services that offer convenience and reliability due their demanding work schedules. Competition is limited as many of the present courier services do not offer dedicated services and are mostly concerned with the wider regional and international market. The company therefore fills the gap by providing homebased solutions to the target market through dedicated services and understanding their day to day needs. These services are delivered by a highly qualified team of professionals that have a long standing knowledge of the locality as well as transportation needs in the country. Their dedication is unmatched as they are dedicated throughout to provide optimum customer experience.
The firm’s initial capital injection amounts to 1,500,000 AED will help in its growth throughout the three years reflected by an annual increase in profits of 12.5 %. During the third year, the company will have a good operating cash balance through which it will seeks to expand to other areas of operation as it is currently seeks operation in Dubai. The funds will to help hire more workforce and also buy more vehicles to step up its activities within the next 5 years.
History
The Emirati Courier and Errand Express ltd. was founded in the year 2015 and aims to be a leading company both in courier and errand services in Dubai. It was founded by a team of 3 professionals that have had substantial experience from the transport industry spanning over 10 years. The company was established to cash in the existing opportunity because the founders had wide knowledge of the local region and realizing the varied customer needs in regards to errand needs and transportation services. The company has hired 10 employees and has a range of 10 delivery vehicles handled by the professional staff. It will provides reliable, cost effective and dedicated services that eases our customer’s movement of both document and materials in their day to day lives.
Description of the business
Definition of the market
It is a clear fact that the U.A.E. is one of the most developed countries in both the Middle East. Its GDP has been increasing with more than 4.5% since 2010 and has a solid economic growth that has seen investors attracted to set up shop in the country. The country also has a robust infrastructure system and is favorably located geographically. The advantage that this creates is that it provides attractive investments from third parties who are involved in logistics. The creation of the free zone areas such as Dubai Airport Free Zone and Jebel Ali Free Zone is an additional advantage to the logistics market (Kunnanatt, 2013).
The domestic courier service under this backdrop also has a huge potential for growth. There is an increasing middle class growth with the country being the 94th most populous country in the world, with a population of 8.4 million people had an annual per capita consumer expenditure of US$21,823. This reveals that there is a lot of disposable income in the region and with it has seen the rise of different industries like the consumer foodservice industry (Agriculture and Agri-Food Canada, Global Analysis Division, 2014). Therefore majority of the Emiratis are looking for services and products that offer convenience. The e-commerce market is also a plus for the domestic courier services industry as it is projected to grow in the coming years with the highest penetration rate of 46% in the region. There has been a recent increase in e-commerce websites that are making an impact in the U.A.E like Sukar, Namshi and Souq. Festivals and celebrations are also part of the culture that sees buying and exchange of a myriad of items.
Competitors
Most of the courier service companies whether International like Aramex, FedEx and DHL or regional based couriers like Fast Track Courier Services, Sky Lane Express and Premium Courier Service are more focused on the international market and wide distribution networks within the Middle East region. Those that offer specific services to residents are limited and thus domestic courier service has limited dedicated service providers.
Description of services
The courier service will offer both business and individuals a service that is reliable, secure and affordable. The company will provide precise point to point pricing, real-time proof of pickup and delivery whilst ensuring fast and efficient delivery whether one is sending parcels or documents. Provision of security, tracking, signature, specialization, and individualization of services through committed delivery times will be done to ensure reliability and efficiency (Wang, Dessouky, & Ordóñez, 2015).
Errand services
With the growing middle class, who are fast paced and operate on tight schedules, undertaking basic errands is considered both time wasting and consuming. Some of the common errands that people seek are; laundry pick up and drop off, grocery shopping and personal shopping.
Letter mail service
Law firms, Government agencies, Judiciary and individuals want hand delivered messages that can be sent or received within short notification periods thus the company will provide dedicated mail service delivery and pickup.
Parcels services
This is another service that entails the provision of standard domestic parcel pick-up, delivery and return solutions for business customers as well as e-commerce logistics and facilitation services.
Financial services
This is a future development that the business will be exploring. With the advent rise of e-commerce sites in the country, there is a huge threat that is termed as cybercrime that puts the sector at risk. Money transfer services for e-commerce purchasing may not be that secure both to the buyer and receiver as one has to sacrifice for the trust of the other. This can however be changed through the application of the “Escrow Service”. The company will be looking into its viability in the country as there exist no regulations for the service.
Management structure
The company will employ a functional organizational structure, which will be headed by the director, assisted by two assistant directors who will have other personnel under them. This organizational structure is ideal because of the size of the company as well as for the ease of decision making and communication within the company (Mahrt-Smith, n.d.).
Objectives and goals
Profit plan goals
The company aims to increase revenues by 25% over the next two years
Profit plan objectives
The company will develop an effective online platform for ease and secure transactions.
Marketing plan goals
Enhance its presence in Dubai and seek new markets for its products and services
Expand its service lines over the next two years
Marketing plan objectives
The company targets to market its introduced services and also seek to invest in two more areas in the country that is Abu Dhabi and Sharjah
Financial data
Income statement
Cash flow analyses
Balance sheet
References
Agriculture and Agri-Food Canada, Global Analysis Division. (2014). Market Overview: United Arab Emirates. Ottawa, ON: Agriculture and Agri-Food Canada.
Finch, B. (2010). How to write a business plan. London: Kogan Page.
Kunnanatt, J. (2013). Doing Business in the United Arab Emirates - The Strategic Business Environment. Journal of Academy Of Business and Economics, 13(4), 145-152. http://dx.doi.org/10.18374/jabe-13-4.17
Mahrt-Smith, J. Organizational Structure, R&D Intensity, and Firm Value. SSRN Electronic Journal. http://dx.doi.org/10.2139/ssrn.972565
Wang, C., Dessouky, M., & Ordóñez, F. (2015). Routing Courier Delivery Services with Urgent Demand. INFOR: Information Systems and Operational Research, 53(1), 26-39.
