The company ABC Security (pvt) Ltd., is a security firm; the company provides manpower for securing of the premises and special occasions where such support is required. The clients have many specific security needs and the company will be able to cater to their specific needs. The company employees trained and able personnel for providing these security services that are demanded by the clients of the companies. This highlights that the role of ABC Security (pvt) Ltd remains vital to achieve the needed benefits in the future context. The business plan allows identification of how the security plan is developed and the needed outcomes reached.
Security is required for various purposes; offices, residences and land; also, security is required for certain occasions and for certain high net worth individuals. The main purpose of this company is to provide that security to these parties as needed. This will benefit all the parties involved (Kryger, 2017).
Vision and the mission of the company highlights the key focus that the company has to maintain. The following statements highlight the mission and the vision.
|“To be the most preferred security service solution provider in the Sri Lanka by excelling in greater customer satisfaction”||“Provide Maximum protection to our customer while serving with great trust and understanding for their dedicated duties and fulfill all obligation in the right time & right way”|
Table 1 – Mission and the vision (Source: Company details)
The company provides the following services:
- 24 hours protection to the warehouses and offices
- 24 hours protection of the factories and shops
- Security services when the valuable products or money is transported
- Special guards to personnel who require such guards
- 24 hours protection to the homes
- Other services include unarmed guarding, fire rescue, investigations etc.
There is increased need for security with more businesses operating. With more business investments flowing in, the demand for the security of the properties and the buildings remain an area of importance (Marshall, 2012). The following analysis based on Porter’s five forces would indicate how the industry pressure is for the security companies.
- Bargaining power of customers – High – there are many different security firms operating in the country and the customers could select the best that meets their needs.
- Bargaining power of the suppliers – Low – the suppliers are the employees in this instance and they have a relatively lower bargaining power as lack of the alternative employee opportunities persist
- Threats from new entrants – High – There is less capital required; while there is a need for permission, the obtaining procedure is not difficult.
- Threats from substitutes – Medium – there are secured doors and CCTV systems that are being fixed; irrespective of these systems, there are continuous burglary that is taking place in various levels.
- Internal rivalry – High – the companies will need to reduce the level of price competition; there is high level of price cutting to gain larger customer accounts.
The company has to have the right strengths and the appropriate weaknesses in place. Knowing these aspects remain vital for the parties to match them with the opportunities and the threats that are in place (Abraham, 2013).
|Having the appropriate staff strength|
Having few customer accounts
Already established name in the field
Having the permit for the business
|Low in financial strength|
The contracts attract very poor margins
Poor training programs in place
The weapons are low grade
|There is increasing demand|
The rates are also increasing
The increased number of thefts
|Competition by the rival players in the market|
Substitute services such as CCTV systems get more sophisticated
Table 2 – SWOT analysis of the company (author developed)
Thus, the above analysis indicates that while the company offers a highly important business opportunity, the company has to be placed and re-structured in such a way that they will be able to gain better access and provide high end services to the clients in line with the needs they have. Thus, the organizational elements will have to be developed to fulfil these requirements.
The company has to develop the primary business objectives; these objectives will have to meet the needs of the various parties and achieve the needed results. The primary business objective in this instance is to grow the business. The following list indicates the main business objectives the company is seeking to achieve.
- The company is seeking to grow the business by 10% over the next five years period
- The company is seeking to maintain a margin of 40% as the gross margin affiliated with the operations
- The company is expecting to increase the personnel by 20% within the next three years period
- The company is also seeking to enhance the customer satisfaction score to reach 4.00 out of 5.00 within the next three years; the current level is at 2.60.
Thus, the company will work within the above objectives and make sure they reach the desired results in the future falling in line with the expectations of the customers.
The company has to be able to manage with the right structure; the following structure is the organizational structure that is in place. the main purpose of this is to maintain a simplified approach towards the organizational operations.
Figure 1 – The organizational chart (author developed)
The CEO works with the external and internal parties and handle the decision-making aspects. All functions managed by CEO directly. This will facilitate better decision making in the organization. CEO handles the main decision making responsibilities.
The marketing manger handles the marketing as well as the relationship management functions. The head of operations on the other hand handles the security related considerations by the parties. This shows that as a small firm at this stage, each of the key personal has some very important roles to play. The key management decisions are taken by the CEO, head of operations, HR, Marketing managers and the Accountant.
Each pf the security port has a OIC and all the officers assigned to the location are working under him. As the security personnel are paid on an hourly basis, they are not considered as permanent carder associated with the company.
The organization has to develop the right marketing strategies and ensure the products are introduced to the market in line with the expectations. Having the right approach towards marketing remains vital for them to gain the foothold and meeting of the exact customer expectations.
Competitive advantage – the company is looking to develop relationships with the insurance companies and work with them to provide a secured environment for the customers. This will provide them with the ability to act swiftly and ensure the safety of the employees as well as the clients are increased. The company could work with the insurance companies to handle the claims in case of any issues. This will lead to differentiation of the services and enhance the competitive advantage.
Marketing mix – the company has to develop the right marketing mix strategies and make sure they will be able to achieve positive results with these developments in the future context. the following are the main strategies attached with the marketing mix.
- Product – the company provides security services; they work with the insurance companies and make sure the full value in the sector is provided. The customers can feel secured with the company.
- Price – the price of the services is placed at highly competitive rates. This will make sure the products are provided in the market in line with the expectations of the parties. This will make sure they will position effectively in the market space.
- Place – the company will provide security in the place of the customer; it is important that the customers can contact the company through the website or other means.
- Promotion – the company will be able to promote the services directly to the potential customers. The company will identify such customers and communicate with them about the services they provide.
Communications plan – the company will reach the potential customers with a specific set of presentations. They would already be taking the services of another party. However, the company will reach them and indicate as to what the company can offer them and what are the main advantages they are likely to enjoy when they are working with the company. this will be an advantage for the other party and they will consider the proposal by the company. Based on the security needs of each of the company, they will provide a specific security plan that is in line with the needs of the customers. This will benefit all those who require these security services.
The company will work with the potential customers; the company will provide them with a plan that will allow them to look to the operational requirements. The need of the customer has to be taken into account when they are developing the security proposal (Leavy, 2013). This will then be presented to the customers in line with the needs they have.
- Once the company secures the deal, the contract is signed with the parties. The contract will indicate that the right direction has to be taken and the appropriate causes will have to be included in the contract. Thus, such will be the basis for the contracts development in place.
- Recruitment of the personnel will take place once the contract has been identified to be in place; this will allow the parties to carry out the right recruitment of the personnel in line with the needs of the markets.
- The company will then have to provide the personnel with the needed site training and strategies in case of any risks that could occur. The nature of the needs of the given situation will allow them to develop a specific guard plan in place and this will allow the company to achieve the needed results in terms of the outcomes.
This is the section that would indicate as to how the company is seeking to progress in the future, the financial forecast for the next five years period is carried out (Gundersen and Kubecka, 2011). This will show the financial viability of the projects and of the company can actually stay profitable.
|Average revenue per client||103,200||103,200||103,200||103,200||103,200|
|Number of clients||26||29||31||35||38|
|Profit and loss statements|
|Cost of revenue||1,609,920||1,770,912||1,948,003||2,142,804||2,357,084|
|Salaries and admin||37,500||37,500||37,500||37,500||37,500|
|Cash flow statement|
|Changes in the inventory levels||80,496||88,546||97,400||107,140||117,854|
|Changes in the receivables||214,656||236,122||–||–||–|
|Changes in the payables||965,952||96,595||1,072,207||213,475||1,200,775|
|Operating cash flows||1,268,510||432,559||1,704,651||912,489||1,972,823|
|Cash flow for the period||1,268,510||432,559||1,704,651||912,489||1,972,823|
|Opening cash balance||500,000||1,768,510||2,201,070||3,905,721||4,818,210|
|Closing cash balance||1,768,510||2,201,070||3,905,721||4,818,210||6,791,033|
|Property plant and equipment||1,250,000||1,250,000||1,250,000||1,250,000||1,250,000|
|Furniture and fixtures||560,000||532,000||505,400||480,130||456,124|
|Other current assets||13,152|
|Other current liabilities||310,000||601,533||575,458||1,516,518|
|Total equity and liabilities||3,873,662||4,320,889||5,758,521||6,655,480||8,615,011|
Thus, the above financial statements are indicative of the fact that the company will continue to operate in a profitable manner and will provide positive results to the customers. It is important that the company maintains a positive financial standing that will allow them to meet the customer expectations.
The above areas of discussion have indicated that the right kind of returns can be generated provided that the business sis managed appropriately. The long-term benefits of developing this is positive. The company has to be focused on the building of closer customer relationships and provide full values to the customers by providing differentiated services at a competitive price point. This will allow them to enhance the overall quality of the services to the customers and make sure they reach the right results in the future context.
Kryger, A., (2017) “Strategy development through interview technique from narrative therapy”, Journal of Organizational Change Management, Vol. 30 Issue: 1, pp.4-14.
Marshall, S.J., (2012) “An analytic framework to support e.learning strategy development”, Campus-Wide Information Systems, Vol. 29 Issue: 3, pp.177-188
Abraham, S., (2013) “Will business model innovation replace strategic analysis?”, Strategy & Leadership, Vol. 41 Issue: 2, pp.31-38.
Gundersen, A., and Kubecka, M., (2011) “Polish‐Norwegian cooperation on strategies for regional libraries”, Library Management, Vol. 33 Issue: 1/2, pp.104-111.
Leavy, B., (2013) “Rita McGrath explores the risks and opportunities of the transient‐advantage economy”, Strategy & Leadership, Vol. 41 Issue: 4, pp.10-16