BARWEST’S BANK TRADER CASE STUDY
Introduction
Barwest bank has been involved in many foreign trade and finance products. Within Barwests, all foreign trade work whether collected by the account-holding branch or was not forwarded to the specialist area, known as the Foreign Services Office (FOA) or its foreign local outlets, the Foreign Service Braches (FSB). These outlets handle a variety of business, including foreign policy, traveler’s cheques, and the provision of Letters of Credit and Collections for its customers (2008).
Business Plan
There are eight key points that a business plan should have:
The summary of the business plan—, which is the introduction to the client of the proposed business, product or service and a financial overview. Next is management. This must include the detail of the management and it partners, and the business experience. Then the product/s and service/s, the marketing that provides the past, present and future of sales capability, the competitors, and customer profile. After that, the sales. The product/service unique selling points and prices, and the advertising avenues. Next is operational. The business location and equipment that will be utilized must be incorporated here. Then the short term trading, it contains the short-term objectives and contingency plans. Lastly, the financial documents. Profit and loss account, balance sheet, and cash flow forecast are what comprise this most important business key point.
Barwest’s Bank Business Line:
An Introduction to Acme Training Services & Computer Sales
Acme Training Services & Computer Sales has been established for two months, and trade on a regional basis. There are currently two partners: and , who have extensive experience of computers and training. The product of computer sales and training services are aimed at the corporate market, with service contracts available. The two partners plans to run courses for 2 – 3 days, with quarterly 1-day progress and update courses to keep those under training up to date with the latest technology. and bring existing business and network contacts. Both parties believe that they could increase their own business areas by 200% within 6 – 12 months if they could delegate some less skillful areas within their current work schedules.
Financial Summary
As seen from the enclosed financials, the markup is 40% with an expected profit of £90, 00 in the first year. They have £20,000 capital to invest in the company and seek further funds of £40,000 from a lender – secured on Johns property. An overdraft facility of £15,000 is also required to finance larger than expected growth if cash flow is limited due to increased costs.
Business Goals and Benefits
The business goals are to introduce an automated international trade finance system based on the ABC package and Trader within 5 months. It is also to reduce staffing in the FSO and FSB’s by 25% after full implementation. It is to provide a sufficient return on investment that breakeven occurs in year three, with profits in year four onwards. The cost and total budget is 1 million pounds but it was unsuccessful because it took 7 months and an extra budget and equipment, and also extra ABC staff. There were 14 branches and the central office totaling at the time, 400 staff, of who about a quarter were involved in LC and DC work. The software supplier anticipated a staff saving in a region of 15%-25% once it is operational. The capacity for new business was expected to be enhanced by the new system and forecasts suggested the ability to capture the rival’s business to take a 40% market share by year three (2008).
Barwest’s Sample Business Plan
Page1
a) Introduction to Acme Business Services & Co
b) Product: Computer Sales
c) Product: Training Services
d) Why the Business will Succeed
e) Financial Summary
Page 2- Management
a) Proprietor: Employment Record
b) Junior Partners: Brief Summary
c) How and Why the Business Started
Page 3- Product / Service
a) Computers Sales
b) Printer Sales
c) Training Sales
Page 4- Marketing
The market Size
b) Future Growth
c) Market Sector
d) Expected Client Profile
d) Competitors
Page 5- Sales
a) Advertising
b) Promotion
c) Who will sell
d) The Unique Selling Points
e) Setting the Price
Page 6- Operational
a) Location
b) Equipment and Costs To-date
c) Equipment Required
d) Staff
Page 7- Short/Medium Term Trading
a) Objective Short Medium-term
b) What if? – Contingency plans
Page 8 Financials
References
Credit:ivythesis.typepad.com
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