It’s a group assignment and I want the 2nd part done, that is “Supply Chain and Logistics”. I have attached the assignment instructions file and the previous group assignments 1, 2 & 3 so you have

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It’s a group assignment and I want the 2nd part done, that is “Supply Chain and Logistics”. I have attached the assignment instructions file and the previous group assignments 1, 2 & 3 so you have the necessary background information as this assignment is a continuation of the previous 3 assignments.

“Supply Chain and Logistics”

2)     Review supply chain capability and operational logistics and provide recommendations – consider partner expectations

It’s a group assignment and I want the 2nd part done, that is “Supply Chain and Logistics”. I have attached the assignment instructions file and the previous group assignments 1, 2 & 3 so you have
Group Assignment #4 Integrated Industry Project BUSM 40000D   Evolve/develop marketing plan (assignment #3) recommendations at an operational level Review supply chain capability and operational logistics and provide recommendations – consider partner expectations Review human resource capability and provide recommendations – consider partner expectations, i.e. contract labour, task mgmt., professional/expert support Review information technology capability and provide recommendations – consider partner expectations, i.e. ecommerce and order fulfillment platforms Review social responsibility direction and provide recommendations – consider trade-off on perceived consumer value Vs price Financial model forecast – pro-forma P/L over 3 years (1st year quarterly and then annual for Years 2 & 3)– showing expected revenue streams from revenue model (assignment #2), incremental investments proposed based on above recommendations and complete full P/L Provide a risk analysis on proposed investments and expected benefits/revenues Consider and propose investment funding strategies, to fund recommendations Consider relevant metrics and measures of success – KPI’s over 3 years Consider change management plan for recommendations – consider entrepreneurial constraints/resistance and how to overcome Provide an Action plan (table format) – showing above recommendation priorities, sequencing and investment levels over 3 years, with a quarterly focus in the first year Appendix – references and supporting tables and analysis
It’s a group assignment and I want the 2nd part done, that is “Supply Chain and Logistics”. I have attached the assignment instructions file and the previous group assignments 1, 2 & 3 so you have
Sheridan College Integrated Industry Project Strategic Business Plan Statement of Work and Project Plan For: Personal Banker Authored By: Insightful Impacts May 27, 2022 Table of Contents 1EXECUTIVE SUMMARY 3 2CLIENT BACKGROUND 3 3SHERIDAN STUDENT CONSULTING INTRODUCTION 4 3.1Profile of Team members 5 4PROJECT SCOPE 6 4.1Scope and Methodology 6 4.1.1Situational Analysis 6 4.1.2Strategic and Marketing Plan 7 4.1.3Operational Plan 7 4.1.4Executive Report and Presentation 8 4.2Out-of-Scope 8 4.3Responsibility Matrix 9 5CONSULTING CHARGES AND EXPENSES 9 6Work Plan and Gantt Chart 9 6.1Work Plan 9 6.2Gantt Chart 10 7KEY ASSUMPTIONS/POTENTIAL RISKS 11 8SIGN-OFF 12 Accepted By: 12 EXECUTIVE SUMMARY As a fledgling financial services company looking to grow, Personal Banker has enlisted the expertise of Insightful Impacts to facilitate this goal. To do so, Insightful Impacts will produce several deliverables over the next several weeks including: an analysis of Personal Banker’s current state versus the market, a strategic business and marketing plan, and a proposed operational plan. This will culminate in a holistic overview of Personal Banker and Insightful Impacts’ recommendation moving forward. The attached document is a statement of work, dated May 27th, 2022 between Insightful Impacts and Personal Banker. The purpose of the statement of work is to provide a detailed look at Personal Banker’s business goals as Insightful Impacts understands them. Moreover, this document establishes the scope of Insightful Impacts’ work, as well as the deliverables, roles, and responsibilities of both Insightful Impacts and Personal Banker in this endeavour. CLIENT BACKGROUND Personal Banker is an aspiring financial service provider specializing in the review of personal taxes. Collectively, the team has over 30+ years of experience in financial services. It’s goal is to elevate Canadians’ financial standing through education and services, starting with its’ proprietary Tax ReClaim service. Operating out of north Toronto, Personal Banker operates utilizes a business to consumer framework and breaks from a traditional brick and mortar setup in favour a strictly digital service model. Doing business digitally allows Personal Banker to extend its ability to help Canadians nationwide. Target Customers While Personal Banker’s business model is designed to help Canadians from all walks of life, the ideal customer is in their prime earning and accumulation years. This demographic spans ages 30 – 50 years old. These customers are looking at more than just TaxReclaim, they need wholistic financial planning advice for their retirement, their family and future generations. Competitors Personal Banker’s main competitors focus on disability claims and RRSP reviews which directly competes with the Tax ReClaim service. As Personal Banker grows its’ suite of financial service offerings, they will see increased competition from banks, tax preparers and independent financial planners. Direct Indirect Family Tax Recovery Services Disability Services Wealth Simple Services Canada Tax Recovery Services Banks Tax Cycles What makes Personal Banker different? The Tax ReClaim service is the gateway to truly understanding a client’s financial position and the catalyst to introduce Personal Bankers other financial services. Personal Banker doesn’t impede its’ interaction with clients by asking for previous tax year paperwork. Personal Banker’s digital platform is both user friendly and aesthetically pleasing Challenges Personal Banker needs to increase both its sources of internal and external funding. Internal marketing communication needs to be streamlined and disseminated company wide. Need to re-evaluate current operational strategy to assist with operational bottlenecks. Acquiring accredited staffing to execute expansion into financial planning. Objectives Increase client base by 100% within the next 12 months – May 27, 2023. Expand service suite via educational services, asset management and app launch within the next 36 months – May 27, 2025. Acquire educational accreditation to provide educational services and certifications within the next 18 months – December 1, 2023. Double sales revenue from $163,000 to $326,000 (100%) by December 31, 2022. Attract third party funding to assist with company growth within the next 12 months – May 27, 2023. Create and implement a comprehensive marketing campaign prior to the tax return cycle – Feb 1, 2023. SHERIDAN STUDENT CONSULTING INTRODUCTION The following section introduces the team that will be delivering this consulting project. A brief profile of each team member is also provided. Name  Role  Contact Number  Email Address  Umer Amir Rashid Accounting/Finance 647-704-8357 [email protected] Adel Osaki Marketing 647-786-7923 [email protected] Shiza Akthar Finance 647-914-2736 [email protected] Yudav Rambali Human Resources 416-878-3740 [email protected] Muhammad Arsal Riaz Accounting 204-333-4007 [email protected] Profile of Team members Umer Amir Rashid Mr. Umer Amir Rashid is a student in the final year of the Honours BBA program at Sheridan College. Although his primary focus has been on accounting, he has studied numerous courses in finance, marketing, strategic management, supply chain, and others. He has acquired practical experience through multiple co-op semesters, summer jobs and part-time work. This includes taxation work at Hotay Financial, accounting work at Virtuous Bookkeeping, and accounting work at Markitech (Downtown Toronto Startup). He has also done part-time accounting work at BlueSurge Technologies and Skopos Limited. Most recently he completed a 14 weeks internship at SunLife Financial, where he was given the role of Financial Analyst Co-op. He had the opportunity to analyze financial data by capturing the data from Oracle Hyperion financial system. Adel Osaki Mr. Adel Osaki is a student at Pilon School of Business in the Honours BBA program. Currently in his final year, he is now focusing on garnering more experience in the industry. His focus is based around marketing and other disciplines related to marketing. Almost 5 years of work experience in the industry allows him to provide a valuable input in a consultation. Shiza Akhtar Shiza is a finance student in the BBA program. She is a focused individual in her field and is ready to put in efforts to be in a state of growth professionally and personally. She holds customer service experience as she just finished her 4-month co-op at Sheridan College as a Financial Aid Associate with prior experience as a finance intern at a bank. This role gave her a worldview of the banking industry. She believes in taking risks and exploring new things while living life to the fullest and doing what you love as your profession so you enjoy working every day in the same role. She is an emotionally intelligent individual who is oriented towards working in teams that are moving towards a common goal. Yudav Rambali A veteran of the financial services industry, Yudav Rambali brings with him several years of experience selling mutual funds and financial planning services at RBC and Scotiabank. Along the way he has completed multiple banking certifications including the Canadian Securities Course and a Certificate in Advanced Financial Advice. In addition, Yudav has a diploma in finance from the Pilon School of Business at Sheridan College, which will be complimented with a BBA in Human Resources this summer. An avid academic, Yudav is en route to completing a Master of Industrial Relations and Human Resources next fall at the University of Toronto. Yudav’s knowledge of the financial industry, academic horsepower, and passion for understanding the intersection of people and organizations make him a strong addition to this consulting team. Muhammad Arsal Riaz Arsal is an accounting student in the Honours BBA program, currently in his final year. He has gained some relevant industry experience through his co-op but has also been working for the past 2 years under supervisory roles. His agility and adaptability skills allow him to accommodate according to the requirements alongside teamwork and collaboration. He always welcomes criticism as that’s what helps him in moving forward and making the right decision. He plans on pursuing his CPA once he’s graduated. PROJECT SCOPE Scope and Methodology The scope of this consulting engagement includes the following: Situation analysis comprising of the internal and external analysis Strategic Business Plan Marketing Plan Operation Plan Executive report and presentation. The following section further explains activities that will be carried out by the Team in connection with the scope of this project and activities that fall outside the scope of this project. Situational Analysis This part of the project will cover a detailed internal and external analysis of the current situation. The consulting team will carry out an internal analysis based on information provided by the client. The team may raise certain questions and seek a response to those questions from the client. The situational analysis will also review the current product /service offerings of the company concerning the value proposition for the customers. The external analysis will be based upon secondary research into the financial services industry, relevant services segments of the industry, competition and any other information that may be relevant and useful to the analysis. In this connection, Insightful Impacts may leverage the Internet and other freely available secondary sources. The consulting team may use a number of different strategic tools to carry out a situational analysis. These may include but are not limited to PESTEL Analysis, Porter’s Five Forces Model, competitive matrix, SWOT analysis, and strategic pairing. The output of this situational analysis will be provided to the client, in the form of a report through the professor for review and feedback. Strategic and Marketing Plan This part of the engagement will cover the development of the strategic plan and action-oriented marketing plan. Based on the situational analysis, the consulting team will develop a strategic plan for the client. This strategic plan will be developed through extensive brainstorming between the consulting team members and in consultation with the client and Professor. The strategic plan may cover: Proposed vision, mission statement and values developed in consultation with the client If appropriate Identification of alternative courses of action Evaluation of alternatives based on defined criteria Recommending an overall business strategy This phase of consulting will also entail the development of a marketing plan, which will be within the framework of the overall strategy. The Sheridan team will attempt to cover product strategy, high-level distribution strategy, pricing, and promotional components, to cover the marketing mix. The promotional plan may cover a high-level digital marketing strategy in order to create awareness as well as demand for Personal Banker services. The Team will make recommendations on leveraging social media, based on its research. Operational Plan The Operational Plan will entail putting the strategic and marketing plan into action. It will elaborate upon necessary actions for the execution of the strategic and marketing plan. Based on the information provided by the client, as well as based on the strategic and marketing plan, a financial forecasting model will be developed, which will entail at least three years of P&L forecast as well as cash flow forecast. A risk assessment will also be carried out. The team will consider possible internal and external funding needs/ sources to implement the business plan. Executive Report and Presentation On completion of the four phases/milestones of the consulting engagement a summary report comprising of the conclusion of recommendations and action plan be submitted to the client through the professor. The same executive report will be presented to the client in a pre-scheduled meeting. Out-of-Scope The following activities are excluded from the scope of this engagement: Any primary market research activities such as surveys or interviews of third parties, except those of Personal Banker Management Any intentional effort by the consulting team to undertake marketing activities on behalf of the client during this project Any intentional effort to sell the client’s services by any member of the consulting during this project Purchase of any report from any research or publishing organization Approaching any competitor of the client to capture any information, i.e., the competitive analysis will be solely based on publicly available information of the competitor Responsibility Matrix S/NO Task Responsibility 1 Providing information on client’s current stage of business Client 2 Responding promptly to team inquiry’s questions Client 3 Carrying out internal analysis based on available information Team 4 Carrying out secondary research, capturing and analyzing external information Team 5 Carrying out a strategic analysis using tools such as PESTEL, SWOT, Porter’s Five Forces Model, Competitive Analysis, etc. Team 6 Submission of situational analysis report Team 7 Reviewing situational analysis report and feedback Client 8 Development of vision, mission, and values Team/Client 9 Submission of strategic and marketing plan Team 10 Review and feedback on strategic and marketing plan Client 11 Providing financial information on the existing business including margins for use in financial model Client 12 Submission of the operational plan Team 13 Review and feedback of operational plan Client 14 Submission of Executive Report Team 15 Final Presentation Team/ Client CONSULTING CHARGES AND EXPENSES The scope of work contained in the document will be delivered without any fee or expenses. Work Plan and Gantt Chart Work Plan The following represents a work plan for the project. The work assignments have been allocated for the Internal/External Analysis deliverable. For remining deliverable tasks will be assigned in due course. Activity Name June 10th July 8th July 22nd Aug 5th Internal/External Analysis SWOT Analysis Umer Strategic Pairing Umer PESTLE Analysis Shiza/Adel Porter 5 Forces Model Yudav Competitive Matrix Riaz Strategic and Marketing Plan -Vision & Mission Umer -Goals and Objectives Shiza -Strategic Alternatives Adel -Evaluation of Strategic Alternatives Yudav -Strategy Recommendation Riaz -Marketing Plan Adel Operational Plan -Financial Model Umer/Shiza -Key Actions Adel/Riaz -Implementation and Evaluation & Recommendation Yudav Executive Report and Presentation Team Gantt Chart The following is the project plan for the scope of work elaborated in this document. Task: W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 Completing Work Contract Submitting Confidentiality Statement of Work (SOW) Internal and External Analysis Carryout Secondary Research Develop Questions for Client Meeting Client Meeting Carryout SWOT Analysis Carryout PESTLE Carryout Competitive Profile Matrix Create Report Submit Report Strategic and Marketing Plan Vision & Mission Develop Questions for Client Meeting Client Meeting Goals and Objectives Strategic Alternatives Evaluation of Strategic Alternatives Create Deliverable Report Submission of Report Operational Plan Client Meeting Financial Model Key Actions Implementation and Evaluation Create Report Submission of Report Executive Report & Presentation Client Meeting Preparation of Presentation Presentation and Submission KEY ASSUMPTIONS/POTENTIAL RISKS Information and data that are vital to the success of the project will be shared freely between client and consultancy All information shared between the client and consultancy will be handled with the utmost regard for confidentiality All material and resources needed to complete the project will have zero effect on project cost Both client and consultancy will operate in good faith towards project success There will be no change in costs during the lifespan of this project Project scope will remain unchanged during the lifespan of this project Project deliverables will be delivered according to schedule and feedback from client will delivered in a timely fashion SIGN-OFF Accepted By: Name: Title: Client: Personal Banker
It’s a group assignment and I want the 2nd part done, that is “Supply Chain and Logistics”. I have attached the assignment instructions file and the previous group assignments 1, 2 & 3 so you have
Sheridan College Integrated Industry Project Strategic Business Plan Current State Analysis For: Personal Banker Author: Insightful Impacts June 10, 2022 Table of Contents 1Introduction 3 2PESTLE 3 1Political Factors 3 2Economic Factors 3 3Social Factors 5 1Banking Culture and Accessibility 5 2Investments 5 3Changing Demographic and Buying Habits 5 4Technological Factors 5 1Banking Technology 5 2Personal Banking Online and Wealth 6 5Legal Factors 6 1Banking Regulations and Financial Services 6 2Investments 6 6Environmental Factors 7 3Michael Porter’s Five Forces 7 1Buyer Power 7 2Supplier’s Power 8 3Competitive Rivalry 8 4Threat of New Entrants 8 5Threat of Substitution 9 4Competitive Profile Matrix 10 5SWOT 11 6Strategic Pairing 13 7Vision and Mission statements 15 8Conclusion and Next Steps: 16 1Conclusion 16 2Next Steps 16 9SIGN-OFF 17 10References 18 Introduction This deliverable aims to present an analysis of the internal and external environment in which Personal Banker is operating. An-in depth understanding of the internal and external environment will provide a framework for developing a business strategy for the company. Insightful Impacts is following a structured approach to complete a strategic analysis of the business environment. Accordingly, PESTLE (Political, Economic, Social, Technological, Legal and Environmental) Analysis, Michael Porter’s Five Forces Model, Competitive Profile Matrix, SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) and Strategic Pairing tools have been used to fully comprehend and document the internal and external environment of Personal Banker. PESTLE Political Factors Political factors, these are the factors which influence businesses including: taxes, policies, regulations, trade restrictions, tariffs, and the political situation of the country. The political situation determines the stability of the markets and industry which the company plans to enter or is existing in (Pathak, 2020). In the case of Canada, the political climate is very stable. In fact, the World Bank, calculates that Canada is in 90.09% stable condition in (Pathak, 2020). There are a number of different bodies, which aim to protect consumers. For example, financial services regulatory service of authority of Ontario (Financial Service Regulatory of Canada, 2022). Additionally, there are self-regulatory bodies such as Investment Industry Regulatory Organization of Canada or commonly known as IIROC (Investment Industry Regulatory Organization of Canada, 2022). Personal Banker is the company that is working towards providing each client a tailored service that would allow him or her to make a good decision that would yield a better and safe returns. There are different solutions that are offered under the entity, and it includes the Tax Solution continuum, and also the company helps in reducing the works that would capture most of the taxes and would not yield better returns. The analysis is done looking at the 10-year filing and it provides the best possible solution over what should be done with the amount recovered. Personal Banker is working in the consulting and solution providing industry where most of the individual investors and businesses are operating and are looking forward to the guidance that would allow them to move ahead with the best and feasible decision. Economic Factors Economic factors take into consideration the exchange rate of the country against another, economic growth and the indicators, inflation rate, interest rate, cost of living, labor costs, and also the purchasing power of the consumers. The inflation rate is important to take into consideration because it allows the businesses to gauge the market situation and make wise decisions regarding pricing and costs. The interest rate plays a vital role in determining the loan taking power of the business and if the interest rates are lower than the loans would increase, and companies would be able to expand their operations. Canada is a developed nation with improved standing in terms of inflation and interest rate where the inflation rate is 5.7% and the minimum wage set by the government is standing at $15.55 per hour and it is to save the consumers and allow them to live and support their families (Dodge, 2022). Furthermore, the economic indicators of Canada are optimal. Currently the literacy rate is at 99% which is quite impressive compared to other nations and one of the reasons why Canada is developed (Trends, 2022). Following the Covid-19, the global economy is under extreme inflationary pressure. Canada is also facing a 6.8% inflation rate, which is the highest in the last 31 years. Ukraine War has further aggravated the overall economic conditions. Personal Banker is established in Canada which is a sound country with a stable economic situation. Canada’s economic factors are quite healthy as more and more business opportunities, investors, and different entities are entering the markets of Canada which bodes well for Personal Banker as the entity provides solutions and financial assistance to individuals. Over 40 banks offer financial banking services to Canadians, IE: bank accounts, credit cards, investments, loans, etc. (Canadian Bankers Association, 2022). Only four percent of debt in Canada comes from credit card debt, the majority of debt comes from mortgages at 74 percent (Canadian Bankers Association, 2022). This information is valuable to Personal Banker as it shows that people in Canada are diligent with their money and have the means of learning how to be smart with it. The following additional economic factors are particularly relevant from Personal Banker’s perspective: The World Bank and many other economic gurus are forecasting an economic recession (Liang, 2022). The potential impact of this economic condition needs to be considered in developing a business strategy for Personal Banker. As per market data forecast, FinTech market is expected to grow at 25.18% rate during 20-27 to reach USD$324 billion (Market Data Forecast, 2022). The global financial services market is also expected to grow at a CAGR of 6% to reach 28.5 trillion, presenting an attractive opportunity (The Business Research Company, 2022). E-commerce market grew by $2019 billion in USA (Berthene, 2022). More and more financial institutions are aiming to offer more financial services, indicating increasing competition. The financial services as well as tax filing services market is characterized by many competitors Many financial services players employ certified individuals e.g., CFP, mutual fund license, etc. Social Factors Banking Culture and Accessibility Canada owns one of the world’s most accessible banking systems. More than 99 percent of Canadians have a bank account (Canadian Bankers Association, 2022). Over 90 percent of Canadians also believe that technology has made their way of banking much easier, this shows that in Canadian culture, they are eager to learn and grow as individuals, making personal banking services attractive to Canadians. Canadian behaviour also shows that they are wary of their debt and tend to focus on things that are marginally for bettering life rather than wasting money. Due the COVID-19 pandemic, we have also seen a shift of consumers wanting to do everything online rather than visiting a branch in person. Hence the culture of banking has slightly changed in terms of doing things in person (Young, 2021). Personal Banker can take advantage of this scenario as majority of their services are offered online. Investments In Canadian culture, it is quite apparent that most Canadians are investing regularly in some way or another, whether that be through RRSP, Stocks, Housing, etc. (Ray, 2019). Canadians are eager to improve their portfolio and grow their wealth. However not everyone takes advantage of personal banking services and information that is easily accessible to them. They have not taken the chance to learn about it which is why they haven’t invested more into personal banking. This is a great chance for Personal Banker to market how beneficial the service is and how easy it can make your life. Changing Demographic and Buying Habits The following factors are particularly relevant from Personal Banker’s perspective: Aging population is necessitating more and more retirement related financial services. Covid-19 has greatly increased acceptability of online services, which can enable financial services provider to reach across geographical boundaries and deliver services cost effectively Technological Factors Banking Technology Banks in Canada have been increasingly innovative in the technology sector and have been supporting the development of technologies to make the lives of customers easier (Technology-led innovation in Banking, .n.d.). The investments in the digital side of things have led to banks making all sorts of services available to their clients such as mobile banking, 24/7 service, easy to use web platforms, new account openings and many more. The main benefit of technology is the convenience it provides. However, traditional services are still available for those who prefer a personal touch. In house development of technologies and increasing the usage of AI systems can benefit any establishment, especially those that are providing a service for the public. Clients being able to access all of their data on a portal whether that be through their phone or their computer anytime they want is something that everyone is looking out for nowadays. More and more FinTech applications are being used, changing the financial services landscape (Market Data Forecast, 2022). Personal Banking Online and Wealth Almost every single bank operating in Canada currently offers an online banking or personal banking solution to its’ customers. TD offers a service called TD wealth financial planning, they pair you with an advisor and work with you to build your wealth (TD Wealth, n.d). Personal Banker can take advantage of people’s eagerness to building their portfolio and invite them to start with minimal amounts of funding and resources, because everyone starts somewhere, the most important thing is the mindset. Legal Factors Banking Regulations and Financial Services Banks and banking services in Canada are highly regulated by the following, Minister of Finance Canada, Office of the Superintendent of Financial Institutions, Bank of Canada, Canada Deposit Insurance Corporation and Financial Institutions Supervisory Committee (Graham et al., n.d). All these services ensure that everything is regulated, and that responsibility always falls on someone. No banks in Canada are allowed to carry on business in Canada without obtaining the proper approval necessary (Graham et al., n.d). Since banks can only do services related to banking, the role of a personal banker is safe and ensures that everything is done properly and under the right regulations. In Canada, financial services such as planning and advising is also regulated. Financial advisors must be approved by a Financial Services Regulatory Authority of Ontario (Financial Services Regulatory Authority of Ontario, n.d). This process and regulation make it safe for both the consumers and advisors so that proper service is being conducted within the organizations (Financial Services Regulatory Authority of Ontario, n.d). Investments There is a large section in the Investment Canada Act that talks about Investment in Canada under. This act is designed “to provide for the review of significant investments in Canada by non-Canadians in a manner that encourages investment, economic growth and employment opportunities in Canada and to provide for the review of investments in Canada by non-Canadians that could be injurious to national security.” (Sector, 2022). Simply put, there are a lot of rules and regulations that are in place that Canadians should make themselves aware about before they invest in something. This is also something that Personal Banker should be aware of so that they provide the best and most accurate information to customers. As long as everyone in the situation is educated about the ruling and regulations in place about investments and how they work, this would make the customer feel more informed and confident in the services that Personal Banker is providing to them. Environmental Factors These are the factors that includes climate as it plays a vital role for a business to operate because if the country is not having right suitable climate conditions, then the infrastructure facilities would be on risk and of increased costs. 196 nations around the world signed Paris Accord in 2015 targeting to achieve total de-carbonization by the end of this century (Wang, 2018). The idea is that global temperature should only increase by no more that two degrees Celsius when compared to the pre-industrial era. Each nation is setting its own goals for de-carbonization. Canada is also setting aggressive targets to achieve 17 sustainable goals for sustainable development (Government of Canada, 2022). Given the seriousness of the climate change, everybody needs to participate towards achievement of these goals. Already initiatives such as Green Banking, and green bonds are taking place (Wang, 2018). In general, the entity would not have serious problems from environmental conditions as its business does not cause any serious damage in the form of smoke or burning of fossil fuels. However, Personal Banker can also contribute by minimizing paperwork. The FinTech application can play a pivotal role in this regard. Personal Banker may also consider development of an environmental policy. Michael Porter’s Five Forces The purpose of this section is to analyze Personal Banker against a competitive analysis model known as Porter’s Five Forces. Created by Harvard Professor Michael Porter in 1980, the five forces analyze a company’s standing in relation to the external market (David & David, 2017). These five forces include the power of suppliers and buyers, the rivalry of competition, and the threat of substitute products new entrants. This analysis will be conducted from the perspective of Personal Banker’s ambition to become a multi-faceted financial services company, with acknowledgement paid to the fact that the client has informed Insightful Insights that tax services (namely Tax ReClaim) are the company’s primary business at the moment. Buyer Power The power of customers is high when it comes to financial services. Whilst the product offerings amongst institutions may be similar, a customer’s ability to move from one firm to another easily does empower them to explore new alternatives. Similarly, customers wield a lot of power when it comes to tax preparation. An increase in competition amongst firms may drive prices and margins lower (Kanda, 2022). Couple this with the low cost of switching service providers and clearly the importance of each customer increases as the industry grows. Key Takeaways Customers in this space can be “easy come, easy go” To acquire and retain customers, Personal Banker must establish brand credibility and create a brand that customers are enthusiastic about. Supplier’s Power Suppliers hold a low to medium amount of power in their relationship with Personal Banker. Looking at the core functions of Personal Bankers, suppliers of computers are plentiful, leaving them with a low level of power. Similarly, office stationery suppliers are easy to substitute as well. However, this power dynamic shifts slightly towards the supplier when in comes to internet services. The backbone of Personal Banker’s business presently is the ability to communicate with clients remotely and looking forward the ability to update the app and host the servers (possibly onsite). This leaves Personal Banker vulnerable to price increases from Internet Service Providers as there are two predominant suppliers in Ontario, Bell and Rogers (O’Day, 2022). Competitive Rivalry The competition in both tax preparation and all-inclusive banking is remarkably high. In tax preparation, 33.2% of the market share is split between H&R Block and Inuit Inc (Kanda, 2022). However, the overall concentration or saturation of the market is low as there are many small local practitioners and that leaves an opportunity for another major player (Kanda, 2022). In contrast, the top six bank in Canada account for a market share of approximately 90% (Kanda, 2021). This translates to an elevated level of competition and concentration. Key Takeaways The niche that Personal Banker is trying to fill is surrounded by bevy of competition There is a tremendous opportunity for Personal Banker to establish itself in the tax preparation space Moving forward with risk, asset and cash management services needs will require an exceptional customer experience to avoid customers being poached by the big banks Competitors such as WealthSimple and the big banks all offer a facsimile of the risk, asset and cash management services that TRAC recommends Threat of New Entrants As Personal Banker presently uses its’ proprietary TRAC (Tax, Risk, Asset and Cash) model to enrich the financial standing of Canadians, leading with tax, it would be best to split the threat of new entrants into two sections: tax preparation and all-inclusive banking. From a tax preparation perspective, the barrier to new entrants is low (Kanda, 2022). As such, 58.3% of tax preparation businesses in 2022 are expected to be independent businesses (Kanda, 2022) as there are no formal accreditations to become a tax preparer in Canada, as well as very low overhead costs. Moreover, tax preparation is an attractive field to enter as demand for tax preparation services is set to increase. This is driven by three reasons: Canada’s population is expected to grow by 5.3% over the next 5 years (O’Neill, 2022). Canada’s unemployment rate is expected to hold steady around 5% over the next 5 years (O’Neill, 2022) The number of households earning over $100,000 is growing by 2.9% annually (Kanda, 2022) When tax preparation is removed from the equation, and all-inclusive banking (risk, asset and cash) is the barometer then a comparison to Canada’s top five retail banks would be appropriate as they provide risk, asset and cash management services. Canadian retail banking has a high barrier to entry meaning the threat of new entrants is low (Government of Canada, 2021). These barriers include but are not limited to: regulations, compliance costs, and capital requirements (Logan, 2021). With that said, the industry remains attractive. According to a 2022 Statista survey, more than half of Canadians aged 18-64 intended to purchase a financial product in 2022 (Kunst, 2022). As well, industry revenue is expected to grow at annualized pace of 2.4% over the next 5 years (Kanda, 2021). Key Takeaways Personal Banker’s use of tax services to acquire clients works well in this environment as the barrier to entry is low Personal Banker must be cognizant of easy it is for a competitor to arise and offer a similar service The eventual move into other financial services will come with added costs, especially asset management. Specifically, costs related to compliance and accreditation Threat of Substitution The threat of substitute products is high for both tax preparation and financial services. In tax preparation, consumers have a plethora of choices to complete their tax returns, but the threat comes from self-serve options provided by sources outside of the industry, including the Government of Canada’s free NetFile service and free community clinics. Moreover, free software assisted returns from financial services companies such as WealthSimple are a threat to Personal Banker’s tax services. Additionally, free money management tools such has Intuit’s Mint software that amalgamates information from all of a client’s accounts (cash, credit, and investments) and returns personalized advice, does pose a strong threat to Personal Banker’s future plans. Key Takeaways It is integral to the success of Personal Banker that the marketing strategy highlight what makes Personal Banker different. Specifically, why TRAC is the right choice. With switching cost being low, Personal Banker must create a value proposition for its wholistic view of client’s financial success. Competitive Profile Matrix The purpose of the competitive profile matrix is to determine the relative position of Personal Banker against key competitors. As the focus of Personal Banker is on tax reclaim and financial services, the three competitors chosen to compare the relative position of Personal Banker are Tax Recovery Inc, Wealth Simple, and Disability Credit Canada. A set of eight key success factors have been identified to carry out this comparison. These factors are explained below: Current market penetration and strength can provide a company with the ability to further grow the business through referrals and word of mouth. For example, Tax Recovery Inc claiming 11000 successful claims puts them in a stronger position to gain more business through referrals by satisfied customers. Financial strength provides the company necessary to invest and grow its business and sustain setbacks if any. Marketing efforts are pivotal for the success of the company. One way to measure marketing efforts could be ranking on google search or google reviews, etc. The breadth of services provides the company to grow revenue by upselling additional services to the same clients. FinTech Application is critical for the business to deliver quality services in the most productive way. Customer Satisfaction plays a key role in repeat business as well as referral business. In the absence of any other objective means, the number of Google Reviews and average ratings have been used to assess customer satisfaction The strength of the team provides the ability to deliver services effectively when the business starts growing Years in business build creditability for the service provider. Critical Success Factor Weight Personal Banker Tax Recovery Inc Wealth Simple Disability Credit Canada Rating Score Rating Score Rating Score Rating Score Current Market Penetration/Strength 0.15 2.0 0.30 3.0 0.45 3.5 0.53 3.5 0.53 Financial Strength 0.15 1.5 0.23 2.0 0.30 4.0 0.60 3.0 0.45 Marketing 0.10 2.5 0.25 3.0 0.30 3.5 0.35 3.0 0.30 Breadth of Services 0.15 2.0 0.30 1.5 0.23 3.0 0.45 3.0 0.45 FinTech Application 0.20 2.0 0.40 3.0 0.60 3.0 0.60 3.0 0.60 Customer Satisfaction (Based on the number of Google reviews and ratings) 0.10 3.0 0.30 3.0 0.30 4.0 0.40 3.0 0.30 Strength of team 0.10 1.0 0.10 3.0 0.30 3.0 0.30 4.0 0.40 Years in Business 0.05 2.0 0.10 4.0 0.20 3.0 0.15 3.0 0.15 Total 1.00 1.98 2.68 3.38 3.18 The competitive profile matrix indicates that Personal Banker is relatively in a weaker position compared with more established players. Tax Recovery Inc. has been in business for over 10 years, with a narrow focus, but with a larger volume. Both Wealth Simple and Disability Credit Canada started their business in 2014 and have significant penetration in their respective areas. Wealth Simple has over 2500 Google Reviews compared to only 11 reviews for Personal Banker. The strategic implications for Personal Banker may be to develop a niche strategy in the area of strength. However, a business strategy will be developed during the next phase of the project. SWOT Based on publicly available information and input provided by the client, the following SWOT analysis has been carried out. Strength The partners have a combined experience of 30 years (Personal Banker, 2022) Evolving FinTech application with Robo Advisor capability e.g., mobile application in development User-friendly FinTech application 5 years in business gives rich experience through successes and failures Ability to deliver services without seeking too much paperwork from the client. Lean and agile operations Client base is spread across the country, 30% in Ontario, and 70% in the rest of Canada. Complementing automated service with personal interaction with advisors Weakness Very limited professional licensing in financial advisory area e.g., no Certified Financial Planner Lack of growth funding Limited marketing activities e.g., no blogs for the last one year, limited social media activities (older posts, small following) A small team limits the capacity to grow a business effectively Current business does not compensate partners sufficiently to gain full focus of partners The current client base is in less affluent segments (survival, safety), which means less revenue per customer Opportunity Global FinTech Market is growing at a 25.18% compound annual rate over the forecast period of 2022-2027 and is expected to grow to US$324 billion by 2026 (Market Data Forecast, 2022). Similar trends are expected in Canada Covid-19 has increased acceptance of online businesses e.g., coronavirus added $219 billion to US e-commerce sales (Berthene, 2022) The global financial services market is expected to grow at a rate of 6% to 28.5 trillion by 2025 (The Business Research Company, 2022) The aging population will necessitate more retirement-related financial services needs Threat Major financial institutions (Banks and investment advisors) offering more and more services for additional revenues and customer stickiness (loyalty) Increasing signs of recession e.g., world bank warning over global recession (Liang, 2022) More established competitors in tax reclaim e.g., Tax Recovery Inc. has served 11000 clients Strong tax filing players (H&R Block, Liberty Tax Services, etc.) Competitors with licensed financial planners/advisor Strategic Pairing The purpose of strategic pairing is to provide input into the strategy development by comparing numerous factors. Strength-Opportunities pairing enables the company to focus on capturing opportunities where they have a high level of strength. Strength-Threat enables the company to identify the way the company can use its strengths to minimize the impact of external threats. Weakness-Opportunities pairing indicates areas of opportunity where it is best not to focus because a weak position may lead to failures. If the opportunity is large enough, the company should first focus on addressing its weaknesses. Weakness-Threat is a risk area, and the company must focus on addressing weaknesses to respond to threats. The following is a strategic pairing matrix for Personal Banker. Strength-Opportunities (SO) Personal Banker have been developing and enhancing FinTech application, a market, which is projected to grow by 25.18% during 2022 to 2027. The company should absolutely focus on continuously enhancing this application to more productively and cost effectively deliver financial services, as this can help penetrate high growth market The combined experience of 30 years in financial services industry will help seize opportunities in a market that is growing at 6% annually. The ability to deliver services without seeking a lot of paperwork can help serve a growing aging population that may find it difficult to come up with extensive paperwork. The key is to define and deliver the most relevant financial services The fact that the current client base is across Canada, gives the ability to address opportunity in a larger market Strength-Threat (ST) Leverage FinTech application (Strength) to compete against large financial institutions (threat) in a niche. The key is to continuously enhance FinTech application to deliver high value Leverage lean and agile operations (strength) to effectively deal with the expected recession. Leverage industry experience to create financial planning/tax filing/reclaim/ family bundles to compete against large tax filing services (e.g., H&R Block) and large tax reclaim players such as Tax Recovery Inc. Leverage personal interaction with clients to gain repeat business and upsell other services Weakness-Opportunities (WO) Lack of financial planning/advisory Licenses limits the opportunity to address the growing financial services market, particularly for the aging population. It is proposed that Personal Banker initiate a plan to have some of there resources certified for financial planning/advisory services, e.g., CFP Limited financial strength is a major barrier to capture market opportunities e.g., limited marketing, insufficient funds to develop a powerful FinTech application or to recruit/ compensate human resources Entire Canada is the target market but limited capacity to penetrate Weakness-Threat (WT) Limited marketing activities while competing against larger firms offering financial services minimize chances of success. To overcome this situation, Insightful Impacts team will recommend certain marketing activities in next deliverable, which is strategic and marketing plan. Meagre financial resources may make it more difficult to sail through the expected recession. Limited means to enhance/develop FinTech application into a robust solution for financial services, beyond reclaim, may make growth more difficult to achieve requiring a longer period of time Vision and Mission statements Current Vision Statement: “Financial Success and Significance for Canada’s middle class (98% of the population), by taking our members through the 5 Stages of Wealth, from Survival to Significance.” (Personal Banker, 2022). The above statement does not clearly mention the industry it operates in and what does it offer. New Vision statement: To empower and enable Canada’s middle class to take control of their financial futures by guiding them to Wealth Significance by way of education, financial advice, and technological innovation. Current Mission Statement: “We Provide Tax Strategies by Leveraging Innovative Technologies and a Holistic Approach to Financial Independence, empowering Canadians to embrace and experience their life’s purpose with finance” (Personal Banker, 2022). New Mission Statement: To add value to the financial well-being of consumers across Canada by providing high-value financial services that leverage cutting edge technology and financial industry expertise, while deriving profitable growth for the company. Our team of highly motivated individuals actively support customers in the use of our technology supplemented by expert advice to help them make important financial decisions. We believe that the financial well-being of our customers contributes toward the overall prosperity of communities and result in economic growth. The mission statement proposed by Insightful Impacts satisfies all nine characteristics of a good mission statement. Customer – Consumers Products and Services – High-value financial services Market – Across Canada Technology – Cutting edge Growth – Profitable growth Philosophy – Financial well being Self-concept – We Public Image – Prosperity of communities Concern for employees – Highly motivated individuals Conclusion and Next Steps: Conclusion After thoroughly analyzing the internal and external environment Personal Banker competes in, there are clearly avenues of opportunity for Personal Banker to become a significant company in the financial services field. Those opportunities include: The growing appetite amongst Canadians for technology centric financial services A growing tax preparation space that is ripe for an innovative service like Tax ReClaim to flourish as the company’s best tool to acquire new clientele The number of affluent Canadians (those making over $100,000 per year) is growing at a steady pace and in turn their need for financial advice (Kanda, 2022). Personal Bankers’ ambition of launching a four-pronged service of Tax, Risk, Asset and Cash management is viable as per this analysis. Moving forward, the development of a comprehensive marketing plan that accentuates the uniqueness of Personal Bankers’ product offering should be a priority. As well as ensuring a Human Resources strategy is in place to have the right people hired, trained, and accredited to add to Personal Bankers’ creditability and execute its’ vision. Next Steps The following next steps are envisaged: Review of internal and external analysis by the client Based on input of client, initiate next milestone focused on Strategic and Marketing Plan SIGN-OFF Insightful Impacts Team: Umer Amir Rashid: Umer Amir Shiza Akthar: Shiza Akhtar Adel Osaki: Adel Osaki Yudav Rambali: Yudav Rambali Muhmmad Riaz: M. Arsal Riaz Accepted By: Name: Title: Client: Personal Banker References Berthene, A. (2022, March 15). 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IBIS World. https://my-ibisworld-com.library.sheridanc.on.ca/ca/en/industry/52211ca/major-companies Kunst, A. (2022, May 18). Financial Product Purchase Intention in Canada 2022. Statista https://www-statista-com.library.sheridanc.on.ca/forecasts/998541/financial-product-purchase-intention-in-canada Wang, E.K. (2018). Financing Green: Reforming Green Bond Regulation in the United States. Brooklyn Journal of Corporate, Financial & Commercial Law. https://brooklynworks.brooklaw.edu/bjcfcl/vol12/iss2/9/ Liang, A. (2022, 05 26). Ukraine war: World Bank boss warns over global recession. BBC. https://www.bbc.com/news/business-61575387 Logan, M. (2021, March 13). What barriers exist in the financial services sector. Investopedia. https://www.investopedia.com/ask/answers/031015/what-barriers-entry-exist-financial-services-sector.asp Market Data Forecast. (2022, January). Global Fintech Market Research Report – Segmentation By Technology (API; AI; Blockchain; Distributed Computing), Service (Payment; Fund Transfer; Personal Finance; Loans; Insurance; Wealth Management), Application (Banking; Insurance; Securities; & Others. https://www.marketdataforecast.com/market-reports/fintech-market O’Day, S. (2022, March 3). Market Share of Revenue in Canada by Service Provider 2020. Statista https://www-statista-com.library.sheridanc.on.ca/statistics/1171190/revenue-market-share-by-type-of-service-provider-canada/ O’Neill, A. (2022, May 6). Total Population in Canada. Statista https://www-statista-com.library.sheridanc.on.ca/statistics/263742/total-population-in-canada/ O’Neill, A. (2022, May 6). Unemployment in Canada. Statista https://www-statista-com.library.sheridanc.on.ca/statistics/263696/unemployment-rate-in-canada/ Pathak, R. (n.d.). What is PESTLE Analysis? Factors, Advantages and Disadvantages of PESTLE Analysis. https://www.analyticssteps.com/blogs/what-pestle-analysis Personal Banker. (2022). About us. https://personalbanker.ca/about-us/ Ray, R. (2019, October 31). Most Canadians are investing regularly: Scotiabank Study. Investment Executive. https://www.investmentexecutive.com/building-your-business/financial-planning/most-canadians-are-investing-regularly-scotiabank-study/#:~:text=The%20study%20also%20revealed%20that,almost%20double%20the%20national%20average. TD Wealth. (n.d.). Wealth Management & Financial Planning. https://www.td.com/ca/en/investing/wealth The Business Research Company. (2022, 03 31). Financial Services Global Market Report 2021: COVID-19 Impact And Recovery To 2030. Retrieved 05 27, 2022, from The Business Research Company: https://www.globenewswire.com/news-release/2021/03/31/2202641/0/en/Financial-Services-Global-Market-Report-2021-COVID-19-Impact-And-Recovery-To-2030.html Trends, M. (2022). 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Sheridan College Integrated Industry Project Strategic Business Plan Strategic and Marketing Plan: Personal Banker Author: Insightful Impacts Umer Amir Rashid Yudavraj Rambali Muhammad Arsal Riaz Adel Osaki Shiza Akhtar Professor: Lenny Dinnath July 6, 2022 Table of Contents 1Strategic Plan 4 1.1Mission and Vision Statement 4 1.1.1Vision Statement 4 1.1.2Mission Statement 4 1.2SWOT Analysis – Strategic Implications for Personal Banker 4 1.2.1Strengths-Opportunities 5 1.2.2Strengths-Threats 5 1.2.3Weakness-Opportunities 5 1.2.4Weaknesses-Threats 5 1.3Strategic Objectives 6 1.4Competitive Advantage 6 1.5Strategic Options 7 1.5.1Market Penetration – Existing Market & Existing Products 7 1.5.2Product Development-Existing Markets & Additional Products 7 1.5.3Market Development-Existing Products & New Market 8 1.5.4Diversification 8 1.6Evaluation of Strategic Options 8 1.6.1Evaluation Criteria 8 1.6.2Evaluation Matrix 8 1.7Recommended Strategy 9 1.8Short-term Priorities 10 1.9Action Plan 10 1.10Scorecard – Key Performance Indicators 11 1.11Conclusion and Recommendation – Strategy 12 2Marketing Plan 13 2.1Market Research Requirements 13 2.2Target Market 13 2.3Market Positioning 15 2.4Competitive Analysis 15 2.5Market Tactics 16 3Revenue model 18 4Strategic Partnerships 20 5Conclusion 22 Strategic Plan Mission and Vision Statement Vision Statement Based on Internal and External analysis of Personal Bankers environment as well as a discussion of priorities highlighted by the business owner, the following vision statement was proposed during the second milestone of the project. This vision takes into account opportunities identified in the market and goes beyond the existing tax filing and tax reclaim services. The vision also takes into account the client’s priority to educate its’ clients and leverages Personal Banker’s technology platform to drive business growth. “To empower and enable Canada’s middle class to take control of their financial futures by guiding them to Wealth Significance by way of education, financial advice, and technological innovation.” Mission Statement The existing mission statement of Personal Banker while strong, would be improved by including all 9 characteristics of an ideal mission statement. As such a revised mission statement is proposed by the Insightful Impacts team as a result of Internal and External analysis. As elaborated earlier, this mission statement satisfies all the 9 characteristics of an ideal mission statement (please refer to Internal and External analysis). This mission statement is inline with the proposed vision of the company. The proposed business strategy will aim to support fulfillment of this mission. “To add value to the financial well-being of consumers across Canada by providing high-value financial services that leverage cutting edge technology and financial industry expertise, while deriving profitable growth for the company. Our team of highly motivated individuals actively support customers in the use of our technology supplemented by expert advice to help them make important financial decisions. We believe that the financial well-being of our customers contributes toward the overall prosperity of communities and result in economic growth.” SWOT Analysis – Strategic Implications for Personal Banker During Internal and External analysis, a comprehensive SWOT Analysis was carried out, followed by Strategic Pairing to relate strengths and weaknesses with opportunities and threats. Based on the strategic pairing exercise, it can be concluded that Personal Banker should make capitalizing strengths to win market opportunities its’ highest priorities. The company must also focus on addressing some of the weaknesses that can cause a company to miss opportunities or face serious negative consequences from market threats. Based on the strategic pairing, the following sections summarize key implications, which must be taken into account when developing a business strategy for the company. Strengths-Opportunities A key strength of Personal Banker is its technology platform, which leverages proprietary algorithms to assist in making financial decisions. It is imperative that this strength area is used to capture opportunities in the FinTech market, which is growing at 25% per year. The company should continue to build on its 30 years of combined financial industry experience to capture market share within the financial services market, which is growing at 6% annually. As an action item the company will need to further strengthen financial expertise by adding licensed professionals (e.g. Professional Financial Planners or Certified Financial Planners). Leveraging its’ technology platform, the company should continue to focus on the entire Canadian market because the company has already shown the ability to win business across Canada Strengths-Threats The company should leverage technological strength in niche area related to taxation and financial planning to address threats from large financial institutions (Banks, etc.) The key is to develop a niche strategy. The company should leverage personal interactions to cross-sell and upsell multiple services to customers – enhancing customer stickiness and minimizing the threat customer attrition. The company can develop product bundles for families to be offered under a subscription model. This necessitates the use of a product development strategy. Weakness-Opportunities A lack of credentialed financial professionals is limiting the company’s ability to win new customers. In order to enhance the chances of penetrating this market, the delivery capacity needs to be improved by upskilling the existing workforce with necessary licenses. The company will need retirement planning and estate planning type capabilities to augment the existing skill sets. To address entire Canadian market, the company will need to invest in additional resources. Weaknesses-Threats The company has made minimal investments in marketing activities, which limits the company’s ability to compete against major players. A structured and more aggressive marketing plan is being proposed to address this weakness The technology application will play a critical role in company’s future. Limited financial investment aimed at continuously and rapidly enhancing this application, could cause the to company lag behind other major players and hence lose market. More aggressive investment, from internal or external sources, is essential to continuously enhance features, and possibly build artificial intelligence capability. Strategic Objectives Based on the earlier analysis and vision and mission of the company, the following SMART strategic objectives are proposed: Achieve 1.3 million dollars revenue in three years by doubling current revenue of 163,000 every year for next three years. Continuously enhance FinTech application, starting with completing mobile app within three months, and achieving artificial intelligence capabilities for defined services within three years. Strengthen service portfolio to enable comprehensive financial services packages for the target market achieving a least three family bundles within 12 months Continuously enhance financial services delivery capability by adding/upskilling human resources with necessary licenses in defined service areas. To enhance customer loyalty by offering multiple services with highest level of customer satisfaction, as measured through periodic surveys, achieving 80% excellent or very good overall rating and ensuring 4.5 or more Google Rating. The above five strategic objectives will help fulfill company’s vision and mission by achieving technology-driven revenue growth, customer satisfaction, and skill enhancement/satisfaction of employees. Competitive Advantage Personal Banker operates in a fairly competitive market with many established players within tax reclaim, tax preparation, or financial planning services. As assessed in competitive profile matrix (see milestone 2 in the Current State Analysis), Personal Banker is in a weaker position relative to direct competitors such as Tax Recovery Inc., WealthSimple and Disability Credit Canada. Personal Banker gained a total score of 1.98 against 2.68 of Tax Recovery Inc., 3.38 of Wealth Simple, and 3.18 of Disability Credit Canada. As the company is also pursuing tax preparation services market, it also faces intense competition from players such as H&R Block, Liberty Tax, and others. Given its weaker position in a highly competitive market, it is absolutely critical that Personal Banker builds its capabilities and capacity in some of the critical success factors in order to gain competitive advantage. Based on the Current State Analysis and current competitive position of Personal Banker versus the other players, the Insightful Impacts team is of the view that the company should focus on the following areas in order to develop sustainable competitive advantage over period. Technology: Continuous enhancement of FinTech application with eventual artificial intelligence (AI) capabilities to help customers make prudent financial decisions Education: Continuous education of customers with respect to services and use of FinTech application so that cost of service delivery can be minimized-customer satisfaction will be an absolute must Single Window Operation: As the target market is individuals, there is a synergy in offering tax reclaim, tax preparation and financial planning services to niche market. The synergy comes in the form of marketing, service delivery, and enhanced customer loyalty/stickiness due to multiple services. In order to develop a competitive advantage based on the above three critical success factors, the company will need to make concerted efforts during the course of next couple of years. The proposed strategy in the following section takes into account the need for a balanced approach focusing on short-term revenue growth and long-term efforts to gain competitive advantage based on the three critical success factors. Strategic Options The following four strategic options have been identified. Market Penetration – Existing Market & Existing Products This strategic option entails focusing on existing portfolio of services, which comprises of tax filing and tax reclaim services. The strategy will entail aggressively going after this market to increase market share and achieve desired objectives. Product Development-Existing Markets & Additional Products This strategic option entails expanding the service portfolio to go beyond tax related services. The company is currently offering life insurance and mortgage services with very limited revenue contributions. The product development strategy will involve development of a comprehensive portfolio of personal financial services. These services may include financial planning, retirement planning, and estate planning. This product development will help attract lucrative markets segments such as aging population. As the process involves significant time and effort, a product road map will be created to add these new services over period. It also necessitates building necessary delivery capability over period. Initially, family bundles can be created based on tax related services, and basic financial planning/advisory. Market Development-Existing Products & New Market As the current focus of Personal Banker is on entire Canadian market, the only option available for the company to develop new markets for existing products is to expand beyond Canada, possibly into the United States, a market ten times larger than Canada. This may necessitate heavy investment and possibly merger and acquisition activities. The feasibility of this option will be evaluated in the following section. Diversification This strategic options entail entering into a new market with a new set of products and services. This strategy is typically used to diversify away the risk associated with single industry. In the case of Personal Banker, entering into the Canadian real estate brokerage market is a possibility. However, this strategy maybe the most difficult one to implement. Evaluation of Strategic Options Evaluation Criteria The following evaluation criteria has been developed: Speed of Implementation – the sooner the strategy can be implemented, sooner the revenue growth can be achieved. Ease of Implementation – if the strategy entails relatively less effort it will be easier to pursue the strategy to achieve certain results. Financial Investment – more the financial investment is involved, the more difficult it will be to implement the strategy. Availability of Skills – if the skills are currently available within the company or can be easily acquired the chances of a successful implementation will increase. Growth Potential – the more the long-term growth potential, the more attractive the strategy becomes. Customer Loyalty – a strategy that enhances customer loyalties/stickiness can ensure a long-term sustainable business Regular Repeat Business – if the customer requires services on a regular and frequent basis, revenue growth will be faster through accumulation of existing and of new clients . Synergy with the Existing Business – if the strategy is closely related to the existing business, its implementation will deliver better results. Evaluation Matrix The evaluation is based on the following: Total weight of 1.0 allocated to different criterion based on importance Rating of individual strategic options from 1 to 5. Score is multiple of rating and weight. Table 1 shows evaluation for strategic options under 1.5. Criteria Weight Market Penetration Product Development Market Development Diversification Rating Score Rating Score Rating Score Rating Score Speed of Implementation 0.10 5 0.50 4 0.40 1 0.10 1 0.10 Ease of Implementation 0.10 5 0.50 4 0.40 1 0.10 1 0.10 Financial Investment 0.15 4 0.60 3 0.45 1 0.15 1 0.15 Growth Potential 0.20 2 0.40 4 0.80 4 0.80 4 0.80 Customer Loyalty 0.15 2 0.30 5 0.75 1 0.15 1 0.30 Skills Availability 0.10 4 0.40 3 0.30 2 0.20 1 0.10 Repeat Business 0.10 2 0.20 5 0.50 2 0.20 1 0.10 Synergy 0.10 5 0.50 4 0.40 3 0.30 1 0.10 Total 1.0 3.40 3.50 2.00 1.75 Recommended Strategy Based on the evaluation of the four options, it is clear that market development or diversification are not an option for the company. The market penetration and product development strategies have very close total score. Both these strategies have significant value for the company. Therefore, it is recommended that a combination of the two strategies be adopted to gain best results: In the short-term market penetration will help in gaining maximum number of customers. Although, with existing services there may not be regular repeat business (e.g., tax reclaim can only be every few years) and customer stickiness will be less, this strategy will be easy to implement with speed and relying on existing skills. Further, adding new customers will help in upselling other/future services. Parallelly, the product development strategy should be executed by initiating a product road map and plan to develop associated skills and technologies. While penetration strategy will help win higher number of customers, product development will help grow business by upselling new services to same customers and by enhancing customer stickiness through multiple services that offer repeat business potential. The operating plan Milestone 4 will identify the need, if any, for external funding to ensure implementation of these strategies. The following sections will now focus on action plan for executing a combination of these two strategies. Short-term Priorities The following short-term priorities are identified: Initiate an aggressive marketing campaign to acquire a maximum number of new customers for existing services, particularly the tax reclaim service as part of a short-term market penetration strategy. A campaign for tax filing services may be initiated Complete mobile application within Q3 of 2022 Develop a road map for development of services relating to financial planning, as part of product development strategy recommended earlier. Identify skills/professional licenses required for delivering services as per product road map Develop a plan for upscaling human resources Prepare Information Memorandum (IM) based on this strategy and proposed operating plan to raise growth capital, if required Action Plan The following action plan is proposed for the next 12 months in order to implement the proposed strategy: Table 2: Action Plan Strategy/Objective Action Completion Q3 2022 Q4 2022 Q1 2023 Q2 2023 Market Penetration Marketing Penetration campaign Tax Reclaim (existing service) Marketing Penetration Tax filing Product Development Strategy Road map for financial planning services Initiate and continue development of financial planning services Launch First Family Bundle on subscription basis Upsell developed financial planning to existing customers Technology For Product Development Complete mobile application Define specification for a next generation FinTech with AI capabilities Initiate development of enhanced FinTech Application HR for Growth/New Offerings Develop skills requirement for new wave of services Human Resources training/hiring with necessary licenses Customer Satisfaction Initiate customer satisfaction surveys (quarterly or half yearly) Development and implement customer education program External Funding (if Needed based on Fourth Milestone) Determine funding needs based on operating plan (milestone 4) Develop IM/presentation for raising funds (if needed). Initiate efforts to raise funds Scorecard – Key Performance Indicators Table 3: Scorecard Area of Objectives Objective Measure Target Time Expectation Revenue Growth 1. Number of customers New customer acquisition 500 Q1 2023 2. Number of Customer Total customer base 4000 Q4 2024 3. Revenue Gross Revenue 1.3 million 2024 Technology 1. Develop mobile application Completion Complete mobile application with currently defined features Q3 2022 2. Enhanced FinTech Completion of enhanced FinTech Application Application with AI capabilities Q4 2024 Product Development 1. Develop additional planning services (financial plan, life, investments, retirement planning, estate planning) Number of new services 6 new services/ bundles for subscription Q4 2023 HR 1. Enhanced Human Resources capacity and capability Licensed Professionals Required number of licenses resources for each domain including at least one CFP Q4 2024 Customer Satisfaction 1. Enhanced customer satisfaction Excellent or very good rating in survey 80% Q4 2023 2. Enhance customer loyalty Measure number of services per customer 75% customers with at least 3 services Q4 2024 Conclusion and Recommendation – Strategy Based on an extensive internal and external analysis of Personal Banker’s current environment, Insightful Impacts recommends a balanced strategy that focuses on short-term revenue growth as well as the need to gain competitive advantage for sustainable long-term growth. The team recommends that Personal Banker adopt the revised vision and mission statements proposed earlier in the report as they possess the nine characteristics of ideal statements. Given its current position against the competition, it is recommended that Personal Banker focus on three factors to gain sustainable competitive advantage: a robust FinTech application, customer education, and single window for multiple services. The Insightful Impacts team has recommended a combination of market penetration and product development strategies to achieve a balance of short-term revenue growth and positioning for sustainable long-term growth. A Market penetration strategy will help achieve short-term growth/ market share through aggressive customer acquisition, while product development will achieve long-term sustainable growth. Overall, these strategies will help achieve five SMART objectives revolving around revenue growth, enhanced FinTech application, product portfolio, HR enhancement, and customer satisfaction. To focus on these strategies, the Insightful Impacts has identified a set of short-term priorities and a detailed action plan for next 12 months. Additionally, to monitor progress towards achieving five strategic objectives with associated sub objectives a balance scorecard has been included. Marketing Plan Market Research Requirements Based on the findings from the previous assignments, the team has a general idea of what services are lacked and what services Personal Banker’s competitors are offering. The team also has a general understanding of the goals of Personal Banker and the first focus is to develop a larger scale marketing promotion. Currently the company is only using Facebook as its’ main outlet for advertisement. Once the app is launched, Personal Banker should aim to fully promote the app and the services offered by Personal Banker on all social medias IE: Facebook, Instagram, twitter, etc. The company should also aim to promote the company on other media outlets such as Newspapers, Magazines, and Radio. The team also has a general idea of how investments work culturally and in society within Canada. From previous research Insightful Impacts understands the general clientele who invests and takes care of their taxes with a personal service. There is a large demand, and it is growing every day, since this fact is also understood, Personal Banker does not need to further research it. Target Market Focus on target market segment(s), customer preferences/attributes/characteristics. Table 4: Target Market TARGET MARKET Geographics Demographics Psychographics Behavioral Individuals who live in Canada in the continent of North America. Age: 18 and over Gender: All genders Income: $30,200 – $534,000 with an average income of $120,000. Marital Status: Married/Single Any Ethnic Background: Any Personality: Individuals interested in improving their financial position. Individuals seeking guidance in their financial matters. Lifestyle: Since our age group is vast, we aim to target all types of individuals. Whether they are students, teachers, doctors, nurses., technicians etc. Whether they own houses or they rent them. Media usage: Media usage is not equal to zero. As long as they use at least 1 type of social media as we promote ourselves on these platforms majority of the time. Technology usage: If the technology usage is not a lot. It is okay because one of our targets is to educate our customers about the technology usage, so customers are able to make decisions on their own and work towards it. We expect basic usage of the phone as our app will be coming out soon. Usage rates: Individuals will be using the services of the bank as per their wish. If they want to use the tax benefits/increase their cash flow or use other financial services. Products benefits sought: Benefits of the services will be financial security and increased cash flow. Individuals will feel secure about their financial well being. They will be educated about their investments etc. and how to deal with different situations after receiving guidance from our bank. Loyalty status: Customers will most likely return to our company as we offer a vast range of services where each of the customers’ needs will be addressed. Market Positioning This section focuses on product value proposition and product differentiation and benefits. Customers will receive personalized advice from Personal Banker who will also empower customers to be an active participant in their finance via educational modules. The aim is to instill both a personal sense of confidence in customers and confidence in the Personal Banker brand. Competitive Analysis A competitive matrix analysis was carried out during internal/external analysis, which has also been briefly discussed in section 1.4 and three critical success factors have been identified to gain competitive advantage against direct competitors. These three critical success factors are Technology, customer education, and single window operation (multiple services). Accordingly, Insightful Impacts Team has recommended that Personal Banker focus on enhancing these three areas. In due course, all marketing messages will highlight these three areas of strength. For the sake of a quick comparison within indirect competitors another matrix is included here. Table 5: Secondary Competitive Analysis For context: The competitors chosen here are based upon goals procured to us by Personal Banker. IE: H&R would be the first stepping stone of a competitor to beat but eventually Personal Banker would like to become as large as Scotiabank and provide more financial services and not just personal banking/tax reclaim services. The weightings are given upon current standards based on our analyzation of services offered from each competitor versus Personal Banker. CPM Matrix Personal Banker H&R Block Scotiabank Weight Rating 1-5 Weighted Rating1-5 Weighted Rating 1-5 Weighted Factors Marketing 0.2 0.20 3.5 0.70 0.80 Reputation 0.1 0.10 0.30 0.40 Customer Service 0.2 3.5 0.70 3.5 0.70 0.80 Services Offered 0.5 1.0 2.5 Total 2.0 3.70 4.5 From reviewing the services offered on each competitors website and comparing it to the services offered by Personal Banker the team can see a large disparity even with just regular services that Personal Banker focuses on. We believe that this is mainly due to the size of the company and the time it took to establish, this means that with proper marketing and growth implementation, Personal Banker should be able to catch up to its competitors on a normal level. Market Tactics There are a number of marketing tactics that Personal Banker can experiment with. Currently, Personal Banker is running small campaigns on Facebook to gauge at how the company can advertise and if people are interested in the service. The campaigns have so far been deemed successful which means that Personal Banker can perform a larger scaled promotion. 4P Tactics Product: Tax reclaim services as well as other financial services. Financial guidance from experienced staff regarding the individual’s financial situation. Educating clientele on how to further grow their capital and helping them with making logical decisions that are beneficial to their portfolio. Place: Online via Personal Banker website, also through the app and telephone Price: Free consultation to clientele based upon their portfolio, currently offering a tax reclaim service at $40. Promotion: Main promotion via social media platforms, Facebook, Instagram, Twitter, and other media outlets such as Newspapers, Radio, and TV channels. Other campaigns Personal Banker plans to run or have the potential to run are email marketing campaigns, where the company may advertise referral campaigns and specials for email subscribers. The company can also generate some influencer marketing and gauge conversation rate with these campaigns, the more individuals that sign up and use the services, the more successful the campaign is. The main process for marketing tactics is the actions instead of the goal of the campaigns. The company will have to actively engage with customers directly and place campaigns that are easily accessible. 2.7 Budget It is proposed that Personal Banker investment $15,000 (180k/year) in marketing penetration related activities during 2022 to double its revenue to 326,000, which results in a revenue of 6.5 times the marketing spent. 2.8 Marketing Metrics A measurable marketing KPIs are presented for ensuring the effectiveness of marketing plan. Table 7: Marketing Matrix Item Goal Lead Generation Generate 2000 leads/registers in 2022 Conversion 25% of generated leads resulting in 500 new customers Upsell one additional service to existing customers Achieve 200 customers with multiple services by the end of 2022 Return on Investment The revenue generated is at least 6.5 times the investment in marketing Revenue model Current Revenue Model Projections Using Personal Bankers own projections of doubling current revenue streams every year and also assuming that the sources of revenue do not change, Personal Banker could anticipate its’ revenue rising from $163,000 in 2021 to approximately $1.3 million in 2024. Table 8: Revenue Projections Revenue Projections 2021 2022 2023 2024 $163,000 $326,000 $652,000 $1,304,000 In 2021, Personal Banker helped 252 clients reclaim an average of $1000 via the Tax Reclaim service and generated an average of $330 (33%) of revenue per transaction (Personal Banker, 2022). Moreover, Personal Banker helped 94 clients file their taxes with an average fee of $75 per return (Personal Banker, 2022). Using these averages and assuming a 50/50 split in services rendered moving forward, Insightful Impacts have created a three-year projection of Personal Bankers’ potential revenue. Moreover, it is to be noted that this projection was made under the premise that in 2022 there would be 2000 new registrants per month to PersonalBanker.ca and that 25% of these registrants would convert to a service (Personal Banker, 2022). Additionally, the number of registrants are assumed to double each year and as such the number of conversions will follow. Registrants Conversions 2022 2023 2024 2022 2023 2024 24000 48000 96000 6000 12000 24000 Table 9: Registrants & Conversions 3-Year Projection Table 10: New Revenue Projections with New Conversions Tax Reclaim Projection Tax Return Projection Total Revenue Projection 2022 2023 2024 2022 2023 2024 2022 2023 2024 $990,000 $1,980,000 $3,960,000 $225,000 $450,000 $900,000 $1,215,000 $2,430,000 $4,860,000 Alternative Sources of Revenue Projections Subscription Model: With Personal Banker’s ambition to serve clients multi-dimensionally in an ever-competitive financial services space, utilizing a subscription model may prove to be a unique point of differentiation. A subscription model would be a boon to clients as the monthly fee would give them access to all of Personal Banker’s services including Tax Reclaim and tax filing while allowing clients to avoid any upfront fees. A subscription model would be most appealing to Millennials and Gen Z as according to CorporateInsight.com 92% of all Millennials have a subscription method of some sort (Corporate Insight, 2022). Moreover, acquiring customers of this demographic gives Personal Banker the opportunity to acquire and establish long term clientele. To make this projection, Insightful Impacts used the projected customer conversion mentioned in the previous section and used a monthly a price point of $14.99 which was derived from a market scan of popular subscription services and monthly bank account fees of the big five Canadian banks. Table 11: Subscription Model Projections Conversions Subscription Revenues 2022 2023 2024 2022 2023 2024 6000 12000 24000 $1,079,280 $2,158,560 $4,317,120 Trailing Commissions: As Personal Banker endeavours to add more services to its portfolio such as financial planning and investment advising, a natural fit would be to partner with a mutual fund provider. This would serve two purposes for Personal Banker, one, it allows the company to provide financial advice and products without the burden of having to actively manage an investment fund and two, it allows Personal Banker to collect trailing commissions from the mutual fund provider regardless of the performance of the funds. According to the Mutual Fund Dealers Association of Canada, the average trailing commission is 0.25%-1% of the asset under management (MFDA, 2018), meaning that as Personal Bankers’ assets under management increase so does its’ revenue, again, regardless of performance. Another advantage to the trailing commission model is that it works in conjunction with other potential revenue models. To make the following projection of revenue derived from assets under management, Insightful Impacts used the average RRSP balance of Canadians in 2020 according to the Bank of Montreal – $101,155 (Button, 2020) and the average yearly RRSP contribution in 2020 according to Stats Canada – $8,071 (Statistics Canada, 2022) and assumed that Personal Banker would collect a 0.25% trailing commission. All the calculations would assume that 25% of the previously mention conversions (1500, 3000 and 6000) would have the average RRSP balance. For the sake of simplicity neither the average RRSP balance nor contribution is indexed. Insightful Impacts acknowledges that these revenue projections (assets under management) is missing other investment vehicles such as the Tax-Free Savings Account, Registered Education, and Registered Retirement Income Funds. Table 12: 3-Year Impact of Trailing Commissions Conversions RRSP Acquisition RRSP Contributions Assets Under Management 2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024 1500 3000 6000 $151,732,500 $303,465,000 $606,930,000 $12,106,500 $36,319,500 $84,745,500 $409,598 $1,259,059 $2,989,271 Strategic Partnerships Current and future survival of Personal Banker is dependent on partnership decisions that the organization makes. Choosing the correct partner ensures that the organization’s development will progress upward in terms of profit, market, and total organisational growth. Personal Banker acknowledges several departments where trading partners play a critical role in accomplishing the organization’s goals. The trading partners in these departments include suppliers, consumers, operational partners, associations, influences, and others who have direct or indirect relationships with the business performance. Choice of trading partners is a strategic process that requires resource investment and the inclusion of all organizational departments in decision-making. Suppliers Suppliers are responsible for the successful development of services offered by Personal Banker. Strategic partnership with suppliers ensures that the relationship between Personal Banker and the supplier contributes to the success of both entities. The right supply partner should be chosen by ensuring that the supplier has similar goals as the Personal Banker. Personal Banker will acquire new suppliers in vital areas that ensure the provision of financial planning services to clients. Data Security Dealing with the financial data of thousands of clients is a sensitive task that requires maximum security. Advancement in technology has led to increased cases of cyber security issues. For instance, in 2020, 78% of Canadian organizations experienced at least one cyber security threat (O’Driscoll, 2020). Therefore, personal Banker must hire a data security supplier who will offer data security for the increasing customer base. Among the organizations that Personal Bankers would choose from include 2KEYS, Adaware, and Aprivacy. These companies have a good reputation and serve organizations, including most government institutions, commercial clients, and financial institutions. Using these institutions to protect Personal Banker clients’ data will create a good reputation that will attract more customers to the organization. Cloud Storage Supplier Personal Banker should remain up to date with the advanced technology. The organization expects an increase in customer base, meaning more storage will be required for clients` data storage. Personal Banker has been using hard drive storage, which is subject to theft, misplacement, or damage. In order to reduce the risk, Personal Banker will acquire a cloud storage supplier who will help safeguard organization data and offer maximum storage to the organization. Sync.com, Box, and pCloud would make the best suppliers for Personal Bank. The organizations will provide unlimited storage accompanied by data security for the organization. For strategic partnership, the cloud storage supplier selected will work together with data security supply to develop a strategy to ensure a high level of security for the success of all three organizations. Customers Personal Banker requires to expand its customer base beyond working and individual clients. The organization will seek to incorporate individuals from other spheres of life, especially those who require management and planning of their finances. Making customers a strategic partner would mean that the relationship between Personal Banker and clients would be mutually beneficial. Students and workers from informal industry make could make for a new customer base. Students Post-secondary education is one of the sectors that holds many young investors and individuals who mismanage funds. In 2019, Canada had over 1.4 million students undertaking full and part-time education (Universities Canada, 2019). Students receive financial assistance from parents, the government, and their investment. Unfortunately, most financial planning organizations ignore this market despite it having the potential to make strategic partners. Personal Banker will educate and search for clients in learning institutions with the permission of the education sector. Through creating awareness, the organization will likely attain a huge customer base from students learning in tertiary institutions. Informal Sector Workers from the informal sector mostly mismanage their funds due to a lack of planning and education. Most financial planning institutions focus on the formal sector due to the guarantee of monthly or weekly contributions. Workers from the informal sector are likely to buy the idea of financial planning once they get an education on the positives of financial management. Operational partners Personal Banker requires financial organizations’ support to make better decisions for their clients. Strategic operational partners are those financial institutions that would consider the benefit of the client, the Personal Banker, and their own. Saccos are potential operational partners that would assist in the strategic development of Personal Banker. Saccos Saving and Credit Cooperative Organizations consist of individuals with similar interests in forming a credit union. Saccos would form the best operational partner for Personal Banker, especially for the new clients, including students and workers from the informal sector. Personal Banker would use Saccos to offer financial management for clients through saving and credit, which would ensure the development of the Personal Banker, the Sacco, and the client. In addition, SACCOs would allow clients to access or save money, which would help accomplish the set financial plans. Associations and Influencers Organizations with good reputations and social influencers are likely to influence decision-making on financial management. Personal Banker plans to use associations and influence to reach out to people in different sectors. The main aim of using these groups is to offer education, which would help individuals in these groups to succeed, while Personal Banker gains an increased customer base in return. Social support organizations and educators make perfect strategic partners for associations and influencers. Social Support Organizations Social support institutions have a good reputation that makes them gain the ability to create influence. These organizations can make perfect strategic partners who would assist in reaching out to more clients. Being associated with these organizations increases the chances of acceptability and embracement by society members. These organizations include charitable organizations. Personal Banker would offer financial assistance in return for association and a chance to interact with community members. Social Educators Social educators have followers who reach out to members of society. Personal Banker will strategically partner with these individuals by offering financial support and resources for awareness and representation in society. Social educators are trusted by society members, which will make them willing to engage with Personal Banker and hence increase the customer base. Conclusion This deliverable focused on developing a Strategic and Marketing Plan. A review of vision and mission is presented at the outset to ensure that the strategy and marketing plan remain inline with those. The implications of internal and external analysis, particularly those of strategic pairing are discussed as an essential input this strategy. A set of 5 SMART objectives have been identified within the framework of vision and mission. An approach to gain sustainable competitive advantage based on three critical success factors has been recommended. Insightful Impacts team has identified four strategic options and based on a set of criterion evaluation of these options has been carried out to recommend a combination of market penetration and product development strategies. A set of short-term priorities have been identified followed by an action plan for 12 months has been developed. A marketing plan comprising of target market, market positioning, competitive analysis, marketing tactics and marketing matrix. A detailed revenue model has been included for base services. Additionally, an upside in revenue is presented for subscription model and trailing commission in accordance with product development strategy. A set of partnership proposition has been identified, which can help grow the business. The next milestone will focus on translating strategic and marketing plan into operational plan, which will provide detailed action plan to implement strategic and marketing plan. It will also provide financial forecasting model for the next three years. References Button, A. (2020, May 1). This Is the Average RRSP Balance: Does Yours Measure Up?. The Motley Fool. https://www.fool.ca/2020/05/01/this-is-the-average-rrsp-balance-does-yours-measure-up/ O’Driscoll, A. (2022, May 17). Canada Cyber Security and Cyber Crime Statistics (2020-2022). Comparitech. https://www.comparitech.com/blog/information-security/canada-cyber-crime-statistics/#:~:text Corporate Insight. (2022, March 28). How Subscription Models Can Attract Millennials to the Financial Services Industry. https://corporateinsight.com/how-subscription-models-can-attract-millennials-to-the-financial-services-industry/ Universities Canada. (2018, July 31). Facts and Stats. https://www.univcan.ca/universities/facts-and-stats/#:~:text Mutual Fund Dealers Association. (2018, Sept 1). Mutual Fund Fees. https://mfda.ca/wp-content/uploads/IB-Sep2018-1.pdf Personal Banker. (2022). PPT Supplement – PersonalBanker. https://sheridanc.sharepoint.com/:b:/s/IntegratedIndustryProject-SS2022-PersonalBanker- StudentTeam4/EdH5X8YUCzxCpe6xP6lP58EBvNeCPnZB9bXurR0Pcyytmg?e=MkXQhI Statistics Canada. (2022, April 1). Registered Retirement Savings Plan Contributors, Canada, Provinces and Territories. https://www150.statcan.gc.ca/n1/daily-quotidien/220401/t001a-eng.htm
It’s a group assignment and I want the 2nd part done, that is “Supply Chain and Logistics”. I have attached the assignment instructions file and the previous group assignments 1, 2 & 3 so you have
Sheridan College Integrated Industry Project Strategic Business Plan Operations Plan: Personal Banker Author: Insightful Impacts Umer Amir Rashid Yudavraj Rambali Muhammad Arsal Riaz Adel Osaki Shiza Akhtar Professor: Lenny Dinnath July 20, 2022 Table of Contents 1Marketing Plan, Operational Level Recommendations 2 2Supply Chain and Logistics 2 3Human Resources Capability Building 2 4Information Technology Capability Building 2 5Corporate Social Responsibility 2 6Financial Model 2 6.1Financial Summary 2 6.2Projected Income Statement 4 6.3Projected Cash Flow 5 7Key Performance Indicators 6 8Risk Analysis 7 9Investment/Funding Strategies 10 9.1Funding By Directors 10 9.2Hiring Grants 10 9.3Research Grants 10 9.4Small Business Loan 11 9.5Angel Investors 11 10Change Management Plan 11 11Action Plan 11 12Conclusion and Next Steps 13 Appendix 1: Assumptions for Income Statement 14 Appendix 2: Schedules 15 Marketing Plan, Operational Level Recommendations Supply Chain and Logistics Human Resources Capability Building Information Technology Capability Building Corporate Social Responsibility Financial Model Financial Summary Chart 1 presents projected revenue over the next three years. The projections are consistent with desires of Personal Banker’s management to double revenue every year for next three years. Accordingly, current revenue of $163,000 will reach just over 1.3 million by the third year. For more details, please refer to 6.2 projected Income Statement and Appendix 1 and 2 for more details. Chart 1: Revenue Projection Chart 2: Per Service Revenue Projection Chart 2 presents per service revenue growth over period. These services include tax reclaim, tax filing, proposed family bundle, and other miscellaneous services as well as services that will be introduced as a result of product development strategy. For more details, please refer to 6.2 projected Income Statement and Appendix 1 and 2 for more details. Chart 3: Net Income Chart 3 presents net income growth during next three years. During the third year Personal Banker will be able to generate $246,137 after tax profit by achieving over 1.3 million revenue. For more details, please refer to 6.2 projected Income Statement and Appendix 1 and 2 for more details. Chart 4: Operating Cash Flow Chart 4 presents cash flow generated by the business, before investing and financing activities. Please not that with investing activities, technology and equipment, the cash flow position does change necessitating additional financing. For more details, please refer to 6.3 projected Cash Flow and Appendix 2. Projected Income Statement The following is projected Income Statement for the next three years. The assumptions related to projected income statements haven been included as Appendix 1. The starting point is assumed to be current quarter, Q3 2022. The volume and pricing assumptions are also contained in Appendix 1. The assumptions related to expenses are also listed in Appendix 1. The revenue exceeds $1.3 million by third year, which is consistent with Personal Banker’s desire to double revenue every year. The EBDITA exceed 330,000 by third year and pre-tax profit exceed 280,000 taking into consideration depreciation/amortization on technology platform (existing 90,000 investment as well as new investment) and equipment (e.g., computer for employees). Please refer to Appendix 2: Schedule 1 for more detail. The after tax profit reaches $246,137. Please note that tax rate used is current combined federal and provincial tax rate to arrive at after tax. Income. Please refer to Appendix 2: Schedule 2 for tax rate calculation. Projected Cash Flow The following projected cash flow reflects, the company will require around $100,000 additional funding to support growth initiatives. Please note that funding requirements may change if the income statement projections are not met, or CAPEX requirement change. With current projections, the first year operating cash flow is positive 28,434 but after investment in CAPEX the net flow will be negative necessitating investment. In Subsequent years the company may be able to finance CAPEX internally from operating cash flow. Please refer to Appendix 2: Schedule 1 for CAPEX detail. Key Performance Indicators The Following key performance indicators have been identified to periodically monitor achievement of goals/objectives by the company. Table 1: Key Performance Indicators Objective KPI Target Year 1 Target Year 2 Target Year 3 Business Growth Revenue Achievement ($) 328,533 651,042 1,309,688 Net Profit ($) 25,661 70,497 246,137 Technology Technology Enhancement for Competitive Advantage Completion and successful rollout of mobile app Completion of requirements and functional specifications of enhanced platform Completion of phase one of enhanced platform with at least 5 new and powerful features Completion of phase two of enhancement of platform with AI capability for decision making and impact analysis Product Development Introduction of additional services to meet critical success factors relating to one window operation Introduction of family bundle comprising of reclaim, tax filing, and personal financial plan. Introduction of two new services Full-service Personal Banker with financial planning, tax filing, investments, retirement planning, etc. Customer Satisfaction/ Loyalty Excellent or very good rating by customers in satisfaction survey Initiate first survey with 10% sample and achieve 65% excellent or very good. Achieve 75% excellent or very good rating Achieve 80% excellent or very good rating Percentage of customers with more than multiple services 25% 40% with more than two services 60% with more than one service Human Resources High skilled resources Add at least one financial planning expert in the team. Multiple resources with financial planning skills, necessary licenses, and Advanced Taxation Skills Resources with retirement/ estate planning with necessary licenses. Risk Analysis A number of risks have been identified, which could lead to Personal Banker’s inability to meet objectives stipulated in the strategic plan. Hence, the achievement of KPIs may become a challenge. The Impactful Insights team has also recommended certain mitigation measures which could help in minimizing the negative impact, should these risks come in to play. Table 2: Identified Risks and Mitigation Strategies SL NO Risk Mitigation Strategies Financial Risk: Due to shortfall in revenue the company may face financial difficulties. Two actions can mitigate this risk: Ensuring that an agile operation is maintained so that business can be quickly adjusted in accordance with changing conditions. A regular monthly management review should be carried out to understand challenges so that the business can be adjusted in a timely manner without serious negative impact. HR Cost: The strategic plan necessitates hiring of additional resources, in order to position for growth. This could lead to additional cost. In case the revenue numbers are not met the company may end up spending excessive amounts. HR plan should be tied up with a combination of quarterly forecast of revenue and long-term plan. The HR needs for short-term can be adjusted every quarter and hence the financial risk can only be equal to one quarter of wages. The long-term plan related investment should be based on growth funding. Recruitment: The company may find it difficult to recruit required human resources as the business picks up. An effective and proactive recruitment plan linked to expected growth can help address this risk. The recruitment from new immigrants and students/fresh graduates may provide good pool of resources. Family Bundle: Risk that proposed family bundle may not pick up as expected. A test marketing of family bundle with a selected sample of potential customers may help validating success of family bundle. Technology Risk 1: The acceptability of mobile app may be limited. Once the mobile app is developed, one or more focus group from customers could be given an opportunity to review the app and provide feedback, before formal launch. This will help in improving the app and ultimately the success. Technology Risk 2: The investment into enhanced technology application may not yield desired results. A good amount of time need to be invested in defining requirements/functionalities of the application. Additionally, a focus group session of customers could help in validating the features. An important consideration is to use agile methodologies in the development process, which can minimize the risk of failure. Technology Risk 3: A disruptive technology by a competitor may lead to serious negative consequences. The company needs to maintain an environment scanning approach to proactively understand what might be going on in the marketplace/ technology space. Cybersecurity: A malicious attack may compromise security of client data. The risk associated with cyber security needs to be regularly assessed for occurrence and impact. Higher risk and medium risk areas need to be addressed proactively. Some of the actions that can be taken include: Hosting application in a secure and reputable cloud providers such as Microsoft Azure, Amazon, etc. Regular security scan using available tools to identify and fix vulnerabilities. Cybersecurity insurance for any remaining risk. Investment/Funding Strategies Insightful Impacts team has identified the following funding opportunities that can be explored. Funding By Directors The existing directors/owners may consider funding the company from their own resources. This funding can be in the form of increased equity or loan from directors. This option provides an easiest route for funding but increases personal financial risk of directors. Further it is also dependent upon the availability of excess resources and willingness to contribute additional funds. Hiring Grants Certain government and non-government institutions extend financial support to employers for hiring/training employees. Some of those sources have been identified as below: Youth Employment Program, which is administered by the IRAP (National Research Council). The grant provides up to $30,000 per person for hiring fresh graduates Canada Job Grant, which can provide funding for training resources. The funding can be up to 10,000. The company could use this funding to upskill resources Canada Summer Jobs: This can enable company to hire students with partial funding (usually 50%) by the Canadian government. Research Grants The following are some of the sources for research grant, which the company can use to enhance/innovate technology application. National Research Council-IRAP- A program, which can provide funding for innovation to small and medium size businesses. The grant is usually provided to business with less 500 employees. Typically, a project proposal is required to be submitted to NRC-IRAP. Scientific Research and Development (SRED), which is managed by the CRA. This grant usually requires that company first invest in R&D/technology and then submit claim and the grant can be either refund of part of investment or tax credits. These grants are only available for funding technology initiatives and Personal Banker can use these funds for enhancing technology application. Small Business Loan Personal Banker can explore possibility of small business loan or start-up financing from BDC. For a company like Personal Banker, the bank may be able to provide the following loans: Up to 100,000 small business loan to support cash flow or to buy software and hardware. The funds can also be used for website, marketing campaigns for online services provided by Personal Banker Start-up financing up to 250,000 for buying assets, start-up fee, marketing, and working capital needs Angel Investors Personal Banker could explore possibility of finding an angel investor, who may be willing to finance the business for growth. These angel investors look for superior returns on their investments. Some of these investors can be found from the following: National Angel Capital Organization () Canadian Angel Investors () If this option is to be explored, the company will need to approach them a strong pitch and effective business plan. Change Management Plan Action Plan The following high level action plan is presented in this section to facilitate execution of strategy and operating plan. Table 3: Action Plan Activity Year 1 Year 2 Year 3 Q1 Q2 Q3 Q4 Marketing Customer Satisfaction Initiate first customer satisfaction survey Half-yearly customer satis-faction survey Half-yearly customer satis-faction survey Technology Mobile Application Complete Develop-ment Test and Launch Requirement and Functional Definition of enhance Platform Initiate defining require-ments and features Complete requirement, features, and roadmap Initiate Develop-ment Enhanced Platform Complete and Launch phase 1 Comp-lete and Launch phase 2 with AI capab-ilities Product Development Product Roadmap Development Initiate three year product development roadmap Complete roadmap Family Bundles Initial assessment and focus group Develop family bundle Launch family bundle Upsell to existing clients Continue enhance-ments in bundles and sales Continue enhance-ments in bundles and sales Enhanced Financial Planning Portfolio Define services and value prop. Develop service offeringstech-nology and product proposition need to be consis-tent Rollout new services Continue enhance-ment and rollout of services Human Resources Accounting/Finance Determine Funding Requirement Completed as per financial model Initiate funding efforts to achieve desired amount Required Funding achieved Supply Chain Corporate Social Responsibility Conclusion and Next Steps This deliverable has provided a detailed operating plan for the review by the management of Personal Banker. The operating plan covers 11 aspects including marketing, supply chain, human resource, Information Technology, corporate social responsibility, financial projections, key performance indicators, risk analysis, investment/funding, change management, and Action plan. As a next step an executive summary of all deliverables will be completed and presented to conclude this project. Appendix 1: Assumptions for Income Statement Revenue Related Assumption Expense Related Assumptions Payroll is assumed as 65% of revenue which is similar to current ratio (current monthly average payroll*12/yearly revenue) With growth in business company may need an office space hence monthly lease 3000 is assumed from second year Most other expenses will grow 20% in year 2 and 15% in year 3 from current level Appendix 2: Schedules Schedule 1: Capex and Depreciation Schedule 2: Tax rate Calculation 16 | Page

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