Limousine Company Business Plan Essay

Table of Contents
Introduction. 2
Managers and Management 2
Planning. 3
Organizing. 4
Controlling. 5
The Managerial Skills behind the Success of the Company. 5
Conceptual Skills. 5
Human Skills. 6
Technical Skills. 6
Decision Making Process. 7
The Stated Goals of the Company are: 8
Approach to Establishing these Goals: 9
Organizational Structure. 10
Managing Change and Innovation. 12
Human Resource. 14
Implications of the Study. 15
Recommendations for the Adoption of Strategies. 16
Conclusion. 17
References. 17

Introduction

Statement limo is an executive limousine and chauffeured vehicles service provider. The company is located in Trinidad and Tobago. The limousines and chauffeured vehicles industry takes advantage of the upper class niche market. Such companies provide executive vehicles to transport wealthy consumers. It is a well-developed business in the US, but only developing in the Caribbean – specifically Trinidad and Tobago. In spite of the country’s relatively small size and population there is a growing market for luxury products and services. In this regard, this paper will analyze Statement Limo – a limousine and chauffeured vehicles service provider.
In the US, this industry brings a combined total of $12 billion in revenue to the service providers. The economy benefits from the 256,908 jobs created by the industry consisting of 200,509 businesses[1]. Just like in Trinidad and Tobago there are no dominant players in the industry. Most of the companies are medium sized. It is important to note that statement limo provides this service for business appointments, hospitality for overseas corporate clients, plant site visits, or personal events, such as weddings.

Managers and Management

The manager is responsible for controlling all major aspects of an organization. Management, thus, is the controlling, leading, planning, and organizing of resources (human and others) in a bid to achieve the goals of the firm. The success of a company is often hinged on the ability of the manager to fulfill these tasks. The company has a relatively small staff and the manager has to fulfill most of the main leadership roles. As the manager of the company I am expected to fulfill certain tasks including:

Planning

Planning is characterizing objectives, making procedures for accomplishing objectives and creating plans to arrange activities[2]. Planning is to evaluate the future and make preparations for it. It is taking the initiative for the plan of activity that managers do their administrative functions. The manager’s job involves a lot of planning. Naturally, he is the top level administrator, so he needs to be included in all the processes that set out to influence the future of the company. The main purpose of planning is to give direction, with the goal that representatives can organize exercises and cooperate with one another when they know where the association is going and what they need to do to achieve the objectives.
The manager of this organization sets the primary objectives of the association and after that they are separated into sub-objectives of every level of the association. Likewise, planning diminishes vulnerability by compelling managers to look ahead, suspect and consider the effect of progress. Managers plan to anticipate changes and prepare to the best reaction to them. Other than that, planning also  minimize waste and excesses, when work exercises are composed around centralized plans, squandered time and assets can be minimized. Subsequently, SMART (Specific, Measurable and quantifiable, Attainable, Realistic, Time outline) objectives are to be implemented by the managers. Thus, as Fayol depicts the general highlights of an item plan and the preferences and inadequacies of estimates, taking note of that the best plans consider shortcomings[3]. Fayol[4] affirms that it would be valuable for those whose worry is management, to know how experienced managers go about drawing up their plans[5].

Organizing

According to the authors organizing is characterized as figuring out what tasks are to be done, who is to do them, how the assignments are to be grouped, who reports to whom and where choices are to be made[6]. Organizing is orchestrating and organizing work to achieve the association’s objective. The manager’s performance is often hinged on how well they handle this function.  He needs to oversee and divide all the errands equally to all his workers keeping in mind the end goal is to spare time and increase proficiency. The manager isolates all the work exercises into independent employments errand to diverse division like finance, sales, and human resource. He also holds and arranges meetings to examine current issues propel representatives and name a group to join the board. On top of that, if managers change the association’s system, the structure ought to change to support the new methodology. The structure is adjusted in view of expanding level of intricacy and modernity. The more standard the innovation, the more robotic the structure can be[7].

Leading

Leading is characterized as “inspiring subordinates, influencing people or groups as they work, selecting the best correspondence channels, or dealing in any capacity with worker conduct issues.” The mission of leading is to get the association going[8]. The target of leading is to get the ideal return from all personnel, while the craft of leading depends on certain individual qualities and understanding of general standards of management. The manager guarantees all his specialists are in a comfortable workspace. He also gives guidance and direction to workers by leading at whatever point necessary[9]. This can identify with the Katz’s human aptitudes and Mintzberg’s interpersonal skills [10].As indicated by Katz’s human abilities, all level of management need human experience with a specific end goal to associate and communicate with other individuals effectively[11].

Controlling

Controlling is characterized as “observing genuine execution, contrasting actual with standard, and making a move if necessary[12].” Controlling is checking whether everything happens in line with the arrangement received, the guidelines issued and standards created[13] It is often less about controlling the employees and more about the coordinating the activities that are to be performed at the firm. This is the manager’s most important role in a company the size of Statement Limo. The target of controlling is to bring up shortcomings and mistakes to examine them and anticipate any repeat. Furthermore, the other target is to ensure the smooth working of every office specifically and of any concern that arises[14].

The Managerial Skills behind the Success of the Company

Conceptual Skills

Conceptual skills are shown in the general capacity to investigate and diagnose a circumstance and to tell the difference between cause and effect. Top managers need the best conceptual skills on the grounds that their essential obligations are organizing and planning. Formal instruction and preparing are essential in helping managers create conceptual skills. Business training at the undergrad and graduate (MBA) levels gives a large number of the conceptual devices that managers need to perform their roles adequately. The study of administration helps managers to build up the skills that permit managers to comprehend the main goal of their organization. The capacity to concentrate on the broad view lets managers see past the circumstance quickly and to consider decisions while still focusing on the association’s long term objectives. The manager has to be able to handle emergencies such as the sudden increase in fuel prices, competition etc.

Human Skills

Human skills incorporate the general capacity to comprehend, modify, lead, and control the conduct of different people and groups. The limousine industry involves a lot of PR. Consumers are always concerned about the reviews that companies in the service industry receive. Uber, a ridesharing app from the US, has proved the quality of service offered by the service provider often translates to more sales in the future. The capacity to convey, to organize, and to inspire individuals, and to form people into a durable group, distinguishes powerful from ineffective managers[15].
Like conceptual skills, human skills can be learned through training and it can be created through experience. Associations progressively use propelled projects in administration skills and group authority as they try to profit from self-managed teams. To oversee individual interactions viably, every individual in an association needs to figure out how to interact with other individuals to comprehend their perspectives and the issues they face. One approach to help managers comprehend their own qualities and shortcomings is to have their bosses, associates, and subordinates give criticism about their performance. Thorough and direct input enables managers to build up their human skills[16].

Technical Skills

Technical skills are the job-particular aptitudes needed to perform a specific kind of work or occupation at the highest level. This can include a manager’s assembling, bookkeeping, marketing, and IT skills. Managers require a scope of technical abilities to be effective at their jobs.
The cluster of technical skills that managers need relies on their position in their company. As noted before, managers and workers who have the same types of technical abilities regularly get to be members of a specific department, for instance, sales or finance. Managers are gathered into distinctive divisions on the grounds that a significant piece of a manager’s obligation is to screen, prepare, and regulate representatives so their job-particular abilities and skills increase. Clearly this is simpler to do when representatives with similar abilities are assembled into the same office in light of the fact that they can gain from each other and get to be more skilled[17].

Decision Making Process

The manager follows the seven steps of proper decision-making.

  1. Identify decision – The management realizes that a decision has to be made, and the nature of the decision has to be made.
  2. Collect Information – All major decisions require appropriate decisions. The most important part of this step is to understand which information is important, the best sources, and how to collect such information.
  3. Identify alternatives – After collecting the information, the management will identify various paths of action. The management lists all the possible alternatives towards making a decision.
  4. Review evidence – The management has to identify whether the need outlined in the first step will be adequately solved through the use of each alternative. In this process certain alternatives will suddenly appear to have a higher potential than others.
  5. Choose alternative – In this step, the management will settle on the best alternative towards solving the problem. Furthermore, this can involve the use of a combination of a set of alternatives.
  6. Implement Plan – The manager takes an action towards implementing the alternative selected in step 5.
  7. Evaluate decision and outcomes – In the last step, the company experiences the results of the decision made. The management has to evaluate whether it has solved the need identified in step one. If it has solved the need then the company sticks with the decision. However, if the need has not been solved, then the management will have to repeat certain steps in the process. Pricing decisions are often among the most important decisions that a company within the limousine industry has to set. Consumers are often insensitive to price changes, but a poor pricing strategy often leads to failure.

The Stated Goals of the Company are:

  1. To be the leading Limousine Service provider in the Trinidad and Tobago.
  2. To develop customer loyalty by providing exceptional customer-oriented service.
  3. Provide the largest range and most diverse fleet in the industry.
  4. Continuously increase market share by gaining advantages over other competitors.

Approach to Establishing these Goals:

The company makes use of MBO to ensure that the company will reach its full potential in a bid to become the largest limousine service provider in Trinidad and Tobago. The utilization of management objectives was first broadly supported in the 1950s by the prominent management scholar Peter Drucker. It can be characterized as a methodology whereby the workers and the bosses meet up to recognize common objectives, the personnel set their objectives to be accomplished, the models to be taken as the criteria for estimation of their performance and commitment and further choosing the strategy to be used. The main theme of MBO is participative objective setting, picking course of action and decision making. A vital aspect of the MBO is the estimation and the correlation of the worker’s genuine performance with the benchmarks set.

Preferably, when workers themselves have been included with the objective setting and picking the strategy to be followed, they are more likely to satisfy their obligations. In the modern business world where competitive advantage has turned into one of the primary objectives of firms, Management by Objective has turned into a standout philosophy amongst the most generally acknowledged philosophies of management. One of the elements that have made MBO the most worthy management philosophy is its rewarding and demanding styles of management. MBO further got distinguished when it turned into a necessary aspect of “The HP way”. Hewlett-Packard fused this management strategy at each level inside the organization; managers needed to create objectives and incorporate them with those of different managers[18].

This methodology centers consideration on the accomplishment of objectives through inclusion of the concerned gatherings. Case in point, through building solid solidarity as MBO is basically taking into account the supposition that individuals attain to perform more when they realize what is expected from them and can relate their own objectives to organizational objectives. Different highlights of MBO incorporate subordinate cooperation, joint objective-setting, backing and support from top-level manager to subordinates[19].

MBO is a democratic style of management philosophy where each subordinate is included and urged to partake towards accomplishing company objectives. MBO is a way to deal with planning that intends to overcome hindrances that may prevent an association from accomplishing its objectives. It includes the setting up of objectives by managers and their subordinates cooperating by determining responsibilities and relegating power for accomplishing the objectives. The last step includes constant checking of performance in order to initiate persistent change. The objectives act a guideline that is dynamic, changing depending on the role that each employee plays in a company. The objectives usually shift between departments. For example the drivers in the company are more customers oriented while the top level management is focused on increasing the wealth of the company[20].

Organizational Structure

The CEO is the main head of the company. Since this is small enterprise, there are various heads of departments working under him. The company implements a functional organization structure. Functional organizational structure is best for small organizations or those that lay emphasis on a solitary item or administration. Statement only offers one service and it is led by a single CEO. Not intended to change rapidly, functional structure functions admirably in a stable situation where the business systems are less slanted to need changes or upgrading. Functional associations contain specific units that answer to a solitary boss, generally called the top administration. Often referred to as functional units, these specific units contain staff with many but related abilities grouped by similarities. Every functional unit handles one part of the product or administration: sales, finance, research, etc. Top administration is in charge of facilitating the efforts of every unit and brings them together into one strong entity.

The relatively small size of the organization has relegated it to the use of a simple structure with the top management having the largest share of power and duties. Just as observed in most companies within similar industries the owner is the single company head. The company is further divided into three departments that formed the most important aspects of the auto industry. Customer communications receive the calls from customers making reservations, payments, and inquiries. Auto maintenance takes care of the company’s most prized assets – the vehicles. They ensure that all vehicles are in perfect working conditions throughout the period of use. The Drivers department handles all matters related to the welfare, compensation, and recruitment of drivers. Each of the main branches has a head who works under the directions of the CEO.

The structure makes communication between departments faster and easier for the departments to coordinate. Coordination is very critical in this industry, because of the importance of convenience to these customers. Suffice it to say that this structure favors the smaller organizations, with any increase in size prompting a change in the structure – often the addition of an extra department or two.

Managing Change and Innovation

Comprehension constrains that make requirement for innovation and change is prone to be critical for chiefs on the off chance that they are to actualize methodologies to help competitiveness. David highlights that competitive advantage can only be maintained for brief times as adversaries often undermine and copy new ideas. This is especially true in the transportation industry. Such needs emerge essentially from the outside environment where rivalry, globalization, mechanical advances, financial conditions and legislation influence success[21]. It could be contended that these link to a degree to Porter’s Five Forces where elements that drive market rivalry are examined. However, it is by and large censured for being excessively focused on picking up preferences over others in moderately static markets where in times of recession it is absent and is even more of a “Darwinian” battle [22]

Furthermore, Gollin highlights that inside components can likewise exude change and innovation, whether this is through hierarchical structure, society, partners, power, or the need to show improvement over others[23]. Regardless of this, Moore cautions that innovation only shows value in the event that it aids in accomplishing financial points of interest, and to acknowledge such favorable circumstances during recession, a methodology that managers may start is through product innovation[24].

Other writers distinguish technology and product innovation as a basic issue for hierarchical change: it is the procedure which permits administrators to adjust and change their association’s response to changes in the external environment[25]. The author notes that associations must plan to innovate forcefully amid recession to survive. The best undertakings are those that see downturns as chances to pick up and create competitive advantage.

The limousine industry is certainly in a need of better handling of change and the introduction of new ideas. In the US, conventional taxi services are being phased out. Uber works solely through a mobile app that connects independent taxi drivers working under the company to potential customers. Consumers have a preference of using Uber because the prices charged are usually lower than those charged by traditional taxis. Such technology is not being used in the Caribbean at the level that it is being used in the US and some parts of Europe.
The company should respond to such change positively and to embrace it by implementing its usage. This should cushion the company from any blow the industry gets when the popularity of mobile sharing apps finally hit the Caribbean. However, it is important to note that this is not a direct threat to the business due to the poorly developed supporting infrastructure in the region. It will take a number of years for the technology to gain a foothold in the Caribbean.  This period should give companies the chance to better embrace innovation while seeking for means of taking advantage of the smartphone convenience. Consumers within the industry generally prefer convenience over price.

Human Resource

Increased market condition has evoked companies to seek better methods to increase productivity, employee performance, and benefits. Companies are now more focused on increasing productivity, but not the performance of the employees. Such companies hardly place any emphasis on the significance of training and development, opting to acquire more material assets. Statement limo can be placed in this category of companies. The company increases productivity by acquiring more vehicles. Productivity can be increased by improving the performance of the workers, such as those working in the communication department[26]. GGG should focus on the improvement of its employees, even though the recruitment process calls for the hiring of a qualified workforce. Training programs have been proven to increase the performance and productivity of workers, improved customer satisfaction, better adherence to policies, increased revenue, and employee morale[27].

Most modern companies in the transportation industry use training to enrich their company culture. A common misconception among managers is that the cost of training will never be reflected in the performance level. According to Kirkpatrick & Kirkpatrick[28], it costs more to support untrained workers than it costs for trained workers. However, this is most noticeable in more technically-demanding jobs. Also, training is usually a key factor in the retention ability of a company. Kirkpatrick & Kirkpatrick further noted that 41% of individuals working in a firm that lacks training programs plan on leaving the firm within a year. This further proves that organizations that value training will end up having increased productivity and retention rates[29].

Training will prevent the occurrence of unprofessional behavior by taxi and limousine drivers recently. They will be able to impact the company objectives in the way the members of the communications and drivers department behave. This will increase the customer base the company has. Drivers can also be taught how to use modern communication methods such as through apps and to increase their visibility[30].

Implications of the Study

The study provides useful information on the limousine and chauffeured vehicles service industry in Trinidad and Tobago along with an analysis of the management of the company. Some major implications of the study include:

  1. Service providers in the industry will seek to use better management skills to gain competitive advantage over others.
  2. The use of modern and more advanced method of achieving the objectives of the organizations within the industry. An example noted in the study is that of MBO (Management by Objectives) where all unit leaders and subordinates are guided by set objectives[31].
  3. Training will become a crucial element is the development of the skill of the staff working within the limousine and chauffeured vehicles service industry.
  4. The industry will adopt better methods of embracing and encouraging change and innovation.

Recommendations for the Adoption of Strategies

  1. Creating training programs that are targeted at the workers within the limousine and chauffeured vehicles service industry. Traditionally, you usually don’t require training or college education to work in the industry. The introduction of such training programs will evoke the increase in the productivity of the employees. Furthermore, this will provider an equally large increase in the profits made by the company as it would have gained by purchasing more assets – vehicles.
  2. Better approaches to change and innovation. Change in an inevitable aspect in most industries. Even the limousine and chauffeured vehicles service industry is prone to the occasional change in trends and preferences by the consumers. This should cushion the company from any sudden fall in the demand for their services.
  3. Managers should evoke a shift of the companies within the industry towards management of the personnel. Companies should take up the use of the MBO strategy[32]. Such a strategy will enable them to increase their productivity in line with the goals of the organization.

Conclusion

To conclude, Statement Limo is a limousine and chauffeured vehicles service provider in Trinidad and Tobago. This company has managed to curve a niche in a market that has only recently fully embraced the use of such luxury vehicles. The industry has greatly developed in the US, and it is also expected to continue growing within the Caribbean. The case study further identified the functions of the manager within the organization, the skills required and the organizational structure. Other crucial managerial aspects of the organization that were analyzed include how the firm manages change and innovation, and the human resource practices. As a result, the implications of the study were further noted and the recommendations for the adoption of strategies.

References

[1] A. Moore, Dealing with Darwin: How Great Companies Innovate at Every Phase of Their Evolution (New York: Wiley and Sons, 2006), [Page 33] [2] S. Robbins et al., Management, 5th ed. (Sydney: Pearson Education Australia, 2008), [Page 65] [3] H. Fayol, General and Industrial Management (London: Roetledge, 1949),[Page 21] [4] Fayol, General and Industrial Management, [Page 34] [5] D. Lamond, “Henry Mintzberg vs Henri Fayol: Of Lighthouses, Cubists and the Emperor’s New Clothes,” Journal of Applied Management and Entrepreneurship 8, no. 4: [Page 6] [6]  Robbins et al., Management, [Page 111] [7] Lamond, “Henry Mintzberg vs Henri,” [Page 17] [8] Fayol, General and Industrial Management, [Page 38] [9] Fayol, General and Industrial Management, [Page 66] [10] Lamond, “Henry Mintzberg vs Henri,” [Page 86] [11]  S. Carroll and D. Gillen, “Are the Classical Management Functions Useful in Describing Managerial Work?,” The Academy of Management Review 12, no. 1 (1987): [Page 42] [12] Carroll and Gillen, “Are the Classical Management,” [Page 44] [13] Fayol, General and Industrial Management, [Page 55] [14] Fayol, General and Industrial Management, [Page 87] [15] Lamond, “Henry Mintzberg vs Henri,” [Page 22] [16] Carroll and Gillen, “Are the Classical Management,” [Page 39] [17] Carroll and Gillen, “Are the Classical Management,” [Page 40] [18] The Economist, “Management by objectives,” The Economist, last modified October 21, 2009, accessed April 9, 2015, http://www.economist.com/node/14299761
[19] The Economist, “Management by objectives,” The Economist.
[20] R. DelCampo, Human resource management demystified (New York: McGraw Hill, 2011), [Page 45] [21] P. Dawson, Managing Change, Creativity and Innovation, 3rd ed. (n.p.: n.p., 2014), [Page 56].
[22] Dawson, Managing Change, Creativity and Innovation, [Page 87].
[23] Gollin, Michael A. Driving innovation: intellectual property strategies for a dynamic world. [Page 215] [24] A. Moore, Dealing with Darwin: How Great Companies Innovate at Every Phase of Their Evolution (New York: Wiley and Sons, 2006), [Page 54] [25]  Gollin, Driving innovation: intellectual property strategies [page 219]
[26]  R. Ployhart, “Staffing in the 21st Century: New Challenges and Strategic Opportunities,” Journal of Management 32, no. 6 (2006): [Page 863]] [27] DelCampo, Human resource management demystified, [Page 54] [28] Donald Kirkpatrick and James Kirkpatrick, Evaluating Training Programs: The Four Levels, 3rd ed. (n.p.: Routlege, 2006), [Page 63] [29] Kirkpatrick and Kirkpatrick, Evaluating Training Programs: The Four, [Page 65].
[30]  Ployhart, “Staffing in the 21st,” [Page 863] [31] The Economist, “Management by objectives,” The Economist
[32] The Economist, “Management by objectives,” The Economist