Operations Strategy and Summary

Being in a very competitive business world, it is very important that an entity capitalizes on the small opportunity presented to it in the business world. By doing so, the entity has a very high chance of enjoying a competitive advantage over other rivals within the same industry. When an opportunity presents itself in the market, a product has to be developed; however, this product is of no use if there is no market for it. No matter how much an idea may be considered novel, it is important for that idea to be transformed into revenues. A company such as Bustonian Bus is growing at a very rapid rate, the entity is receive very attractive reactions from people and this is an indication hat the demand for its services will increase. Having started with a single bus “The Original Bustonian“, new buses have also been brought in to show how fast the entity is expanding. Some of the buses are, the mighty Bustonian, the Miss Bustonian, the 80’s Bustonian, the Mr. Bustonian and the most recent brand of The New Bustonian. In order to provide people with quality services and services that are of standards, it is important that up to date equipment and amenities are utilized to ensure that quality is given to the customers. We treasure our clients very much since they are the reason for our existence and whatever that we do, is done for their satisfaction. The general Bustonian idea was brought to function with the urge to satisfy the ever-increasing needs of the people. Needs such as bachelors parties, bachelorette parties, birthday parties celebrations of all kinds and corporate functions have become part of our daily lives. This to a business person is an opportunity, a chance to make money and at the same time helping people meet their needs in the lowest possible cost and feel satisfied.

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Company Facilities

The entity has prospered very well in Boston and having received a very positive reaction from the Boston people, we have decided to expand our business to Massachusetts, to the Cape region. This is a new location and it is expected to be treated with the greatest caution possible. For a start, we want to let the business develop step by step; we do not want to take the whole city of Massachusetts by storm in the first financial year after we have launched our business there. We are going to introduce only a single bus within the first financial year and observe the progress of it; this bus will determine the following trading period as the feedback that we receive from there will affect greatly the direction to be followed by the business. In the course of our studies, we identified a number of warehouses within the southern parts of the Cape region which would be very appropriate for the storage of our bus. The area measures around eight thousand square feet and goes for seventy dollars per month. The size of the area is adequate and since we shall be introducing a single bus every financial year, it will serve us for a good period before opting for a different channel. The area can accommodate approximately three buses for now. If need be, we shall expand the place over time. In the first trading period, we are planning to operate within the cape area over the periods running between the months of April to September. In order to run our business effectively, it is important that we get a place that we can park and ensure that our bus is safe. The place in mind should be very effective especially since we are going to require this spot during our on season. The place should also be accessible in order to reduce inconveniences. The place can also be let out when it is not being utilized, especially when we are not in season to earn income from it rather than leaving it idle. So as to cut costs, we are not going to require a new operation office in this new location. All the operations shall be conducted from the office in the Boston region. A fully equipped bus to operate within the Massachusetts cape region shall be estimated to cost around fifty thousand dollars for already used buses while new ones shall cost around seventy to one hundred thousand dollars. These average costs have been arrived at after carrying out an opportunity analysis.

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Company Equipment

After the introduction of new routes in Massachusetts, it is logical that the physical locational of the firm will have to increase. This is in order to cater for the storage space and other services that are essential for the provision of up-to-date services to clients. Over the next four years, we anticipate that the business in Massachusetts will kick at a high rate; this implies that the entities revenue will increase the same as its expenses. To cater for this increase in revenue, it would be important to carry out a cost-benefit analysis to note the most appropriate step to take. If the revenues that will result from this new introduction are high than expenses incurred, then it would be okay if the opportunity is capitalized on. However, if the vice versa is true, then more options should be looked into. The expansion of the business as already seen will need more space, therefore, we as the management team is looking forward into buying the building that neighbors our offices in Boston area so as to have enough storage and operations space. The building that neighbors Charlestown MA where our buses are currently being stored has been put up for sale and we are intending to buy it and increasing our storage facility. More information shall be communicated to our esteemed clients’ and customers on the company’s website. In the buses, we are planning to introduce a bar and a restroom where some recreational activities and some few games such as darts, chess and others. With such inclusion, we expect to keep our passengers occupied and generally give a different picture to the travel industry. The buses are also installed with the state of the art facilities such as sound systems, dancing rooms, dance poles and the whole ride is a party, an experience that will remain in the memories of a person for a very long time. All these are activities that require money to be invested in. As a result; the firm will be forced to spend some of its savings in the maintenance and purchase of new equipments that will be able to make the objectives of the entity achievable. Business personalities often assert that for one to get money, you need to spend money, so we are going to employ all the available channels to finance all our projects and ensure that we are able to achieve the said goals within the stipulated timeline. If need calls for, we will seek the assistance of some local financial institutions. New equipments are expensive but effective than old and already used equipments. First they contain warrants and their production capabilities are assured unlike old used equipments. Though it will be a little costly for the entity, this is an option that we have to face.

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An irreplaceable asset that an entity possesses is its workforce. Through the entity’s workforce, an organization is able to achieve set goals within the laid downtime period in the most efficient and comfortable time possible without having to struggle. Workforces that understand the goals of an entity and are involved in the implementation process will feel part and parcel of the organization and will work towards the good of the organization. We as an entity are geared towards ensuring that our employees get the highest satisfaction from what they do especially if it is related to the entity. After the introduction of the new branch in Massachusetts, it is apparent that more workforces will be inevitable; we will require to employee more employees to oversee the operations of the extra activities and the general operations. Drivers will be needed. The drivers are owed with the obligation of making sure that the services rendered to the people are of high standards and the people get value for their money. As the business keeps on growing, it will be important for a table to be drawn which will indicate the expansion rate and the specific points that will require employees to be channeled to prevent compromising the general operations and performance of the entity. A number of experienced part-time drivers will also be needed especially due to the seasonal operations of the buses in Massachusetts. The remuneration that is accorded to the drivers varies in accordance to their shifts. Drivers operating in the night shift take a remuneration of three hundred dollars and a cash tip that amounts to around one hundred and eighty to two hundred and forty dollars. The cash tip is highly defined by the bus that the driver is driving. However, irrespective of the bus being driven, the firm has a structure put in place that ensures all the drivers get the same tip at the end of the business day. For drivers driving buses that make a total of $240 a driver is expected to surrender $160 while a driver operating a bus that makes $180, the driver is supposed to put in $120. From this, no driver feels oppressed or exploited.

Service Capacity and Matching Capacity

Our services are season dictated, we expect to carry out our business activities from the month of April through September and during this period, and we want to receive the highest revenues from our operations. We are geared towards utilizing the weekends that run from may to September since this is the business peak period. We as a firm shall be geared towards providing effective services and ensure that these services are present wherever and whenever our clients require them. We shall ask all the employees to come up different observations and views and identify the most efficient option with the least and minimal costs possible. In case there is an increase in the demand of our services, we can hire more buses and drivers to cater for the increase. This will be an essential step as it helps avoid frustrating our clients who in fact have become our bosses. It is from these clients that we are in operation, and it is therefore important that whatever step that is taken, we have the clients in mind. We should do everything to ensure that they are satisfied and their needs are satisfied.

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Managing Quality

The presence of a business opportunity does not imply that an entity has a monopoly over this chance; there are many more organizations out there that are also interested with the opportunity. It is therefore important that the entity capitalizes on the available options so as not to be short-changed by rival companies. To maintain and keep the comparative advantage, an entity is supposed to be involved in planning, controlling and improvement tactics. Irrespective of the service industry that a firm operates in, it is essential that it delivers goods and services to clients within the stipulated time frame and respond to the needs of the clients. From the inspections and surveys that were carried out, a lot of information was unfolded and strategies that can be applied for the survival of an entity in this highly competitive market. By being involved in quality planning, an entity is armed with the information that will be required and considered essential for decision making, it s through this that the entity will be able to set goals and objectives. Controlling on the other hand, ensures that the activities taking place are governed and they are carried out in relation to the laid down the structure. We are also expecting to present our clients with our customer care office email address which they can use to air their views and give us different views regarding the services they expect from us. Similarly, the quality of a product is defined by how constant research is carried out. This research and development practices will make sure that new demands of the clients are identified and appropriate actions taken to respond to them. By responding to this, the entity is in touch with the changes taking place in the business environment and has enough time to take appropriate actions. By engaging in discussions with our clients, we have known the new specifications that they would like to have in the bus and we expect that by responding to them, our market will grow and new channels shall be opened.