Travelers Company

Travelers Company

Company Introduction

Travelers Company is the name of my new company that am planning to start. The company will be located at Valdebebas near Barajas airport, Madrid in Spain. My company will specialize in offering transportation services to all the eligible customers residing within the Madrid city. Last month, I was privileged to attend a match that was being played at the Santiago Bernabeu. The game involved Real Madrid Football Club and Sevilla Football Club. After the match, I realized that many fans who come to watch the game do not have a reliable means of transport. Also, some citizens do not have transport means to take them to the Barajas airport and other parts of the country. Therefore, lack of a reliable means of transport at Valdebebas was a business gap that I spotted after the match. Launching a company by the name Travelers Company will meet the transportation services of many citizens. The aim of the company is to offer transportation services for the fans who attended football games at the Santiago Bernabeu stadium. The company will be strategically located at Valdebebas because the city is just adjacent to the stadium where all the fans pass after watching the game. The strategic physical positioning of my company will easily enable my new company to reach many customers.

Business Ownership

As a new entrepreneur, I understand the importance of making the right decision while selecting the type of business ownership. My transportation business will be a simple business; therefore, sole proprietorship type of business ownership will be suitable for my new transportation business. Sole proprietorship will be suitable in ensuring that the management of my business is simple (Blair, 249). Also, I have not discussed the business idea with any other person, so I am the only person who owns idea. I have vast experience in management skills, therefore choosing sole proprietorship type of business ownership will enable me to exercise my management skills, because as the owner of the transportation company, I will make most of the company’s decisions (Segal, 28). Also, the company does not require a huge amount of capital to start; therefore, there is no need for partnership ownership. In addition, I would like the business to be owned by my son in the future hence, sole proprietorship ownership will be suitable in transferring the ownership of the company to my son in the future without many legal and formal procedures.

Demand and Supply

At the Valdebeba city, there is a huge demand for transportation services. During the weekends, many citizens need to travel from different parts of Spain to come to Santiago Bernabeu to watch football games. After the football games, most fans do not have a faster and reliable means of transport because of congestion outside the stadium. Public means of transport that are available are not sufficient to ensure that all the fans are transported at their respective destinations easily. Also, no other company offers transportation services in Spain. Therefore, the demand for transportation services will be high. The only available means of transport for the fans who watch football games at Santiago Bernabeu stadium is the public means of transport that is not sufficient. Therefore, the supply for transportation services is low within Valdebeba city. High demand and low supply is a factor that will encourage me to start my new business because there are no other companies that will compete my business within the market (Karunanithi, 966). Due to the high demand for the transportation services at this part of Madrid city, I will set the prices at a relatively higher amount. However, I will ensure the amount is affordable to my customers to protect their needs. During the summer, the demand for transportation services is relatively low because there are no football games at this time. I will lower the charges for the transportation services at this season of the year to attract the only few available customers who require the transportation services. I will always consider how demand and supply of the transportation services change with seasons to ensure that the prices of my services are always at the optimum point.

Strategic Plan

In my new business, customers will book for transportation services through the company’s website. Also, the company’s application will enable customers who have smartphones to easily and conveniently book the transportation service (Amaro, 64). In the booking process, customers will identify their geographic location where they will be quickly accessed by the company’s private cars for transportation. I will use the SWOT analysis to establish the strengths, weaknesses, opportunities, and the threats related to the transportation services (Bull, 99). Use of online platform to identify the location of the customers, the strategic place of the business and use of new well serviced vehicles in offering the transportation services are the main strengths of my new the transportation business. The company will be the first of its kind to be ever established in Madrid city, so lack of the transportation market knowledge will be a weakness for my business. The transportation venture means that I will have to hire drivers to operate business vehicles. Not only drivers can be punctual, and this is another weakness for the new business venture. Booking of the transportation services will be purely through an online platform that will disadvantage customers who do not have access to smartphones, which is a major weakness for my business. Opportunities for my new transportation business include a lack of competition in offering transportation services, the strategic position of the company, and the use of technology in providing transportation services. In providing transportation services, accidents may occur, which is a major threat to the transportation business. Lack of customers during the summer season when there is no football activities and government’s plan to solve the transportation problem in the city in the future are the major threats for my transportation business.

Management Functions

I will use a consultative type of management style to ensure that all my employees are involved in making the decisions of the company (Iqbal, 2). The employees in the company will include the drivers, the technical personnel, the accountants and the Human Resource manager. I will then be the overall director of the company. The Human Resource manager will frequently meet the employees to discuss the emerging issues on the transportation market and problems. The report of the discussion will then be forwarded to me by the Human Resource manager where I will then make the final decisions. When making new decisions, I will be meeting with all the employees to hear their views, which will then help me to make the final decisions.

Process to Recruit, Hire, and Train Employees

Recruitment of employees will be purely done through the use of online platform. The job vacancies will be advertised on social media and television, where the interested individuals will be advised on how to apply for the vacancies using the company’s website. Online recruitment will enable the company to reach a wide pool of employees to select (Brandão, 274). After the online interview, only the successful applicants will be contacted to be hired permanently. The drivers will be trained on road safety measures every three months in a workshop. The technological employees will be offered with online courses throughout the year to make them conversant with new technologies in the market.

Marketing Mix

I will use the 4Ps marketing mix to ensure that my transportation company attracts and retains the target customers (Festa, 1550). The product of the business is the transportation service. Use of online booking platform will enable the customers to avoid any congestion that is witnessed while boarding the public vehicles, which will help my company to reach more customers. I will evaluate the amount used by the company to offer the transportation services to ensure that I set the price that is profitable and at the same time affordable to the customers. I will set the company at a place that is accessible to customers and this will lead to faster growth of the company (Ayan, 129). The company will be situated at Valdebeba near the Madrid stadium where the target customers pass after watching football games. Promotion of the company’s transportation services will be done through television advertising to reach many customers (Deng, 99). The promotion will also be done through the use of online advertising strategy to reach many potential customers who are online users.

Use of Basic Accounting Statements

I will be keen on the timely preparation of financial statements of the company after every month, which will be critical in determining the financial position of the company (Guptor, 29). I will employ some accountant personnel who will be responsible for preparing the balance sheet every month. The balance sheet will evaluate whether the company can pay its bills on time (Mckee, 178). The balance sheet will also help me to determine the company’s flexibility to acquire capital for future improvement. The accountant personnel will also be responsible for preparing the income statements and cash flow statements that will be critical in determining whether the transportation company is making profit or loss.

Works Cited

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Brandão, Catarina, Rita Silva, and Joana Vieira dos Santos. “Online recruitment in Portugal:         Theories and candidate profiles.” Journal of Business Research 94 (2019): 273-279.

Bull, Joseph William, et al. “Strengths, Weaknesses, Opportunities and Threats: A SWOT             analysis of the ecosystem services framework.” Ecosystem services 17 (2016): 99-111.

Deng, Yiting, and Carl F. Mela. “TV viewing and advertising targeting.” Journal of Marketing      Research 55.1 (2018): 99-118.

Festa, Giuseppe, et al. “The (r) evolution of wine marketing mix: From the 4Ps to the         4Es.” Journal of Business Research69.5 (2016): 1550-1555.

Guptor, Marina, and Kristina Rudžionienė. “Searching For Information Quality of Financial       Statements: From the Main Principles Up To Neuroaccounting.” Accounting Theory and       Practice (2018): 29-42.

Iqbal, N., S. Anwar, and N. Haider. “Effect of leadership style on employee          performance.” Arabian Journal of Business and Management Review 5.5 (2015): 1-6.

Karunanithi, Kandasamy, et al. “Integration of demand and supply side management strategies in            generation expansion planning.” Renewable and Sustainable Energy Reviews 73 (2017):          966-982.

Mckee, Gregory, and Albert Kagan. “Managerial implications of off-balance sheet items in           community banks.” Studies in Economics and Finance 35.1 (2018): 178-195.

Segal, Steven P., and Jae-Sung Choi. “Ownership form and quality of care in sheltered care          facilities: Chain-affiliated business vs. sole proprietorship.” (2016): 28-37.