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Business Plan

In: Business and Management

Submitted By oiltrader
Words 3380
Pages 14
World Fuel Services Corporation (“The Company”) – PRISM (Singapore Office)
2011 Business Plan

1 PRIME OBJECTIVES

• Expand the coverage of The Company’s Energy Risk Management business in Asia.
• Enrich bunker services coverage in both the Physical Supply and Risk Management sectors.
• Build up After-Sale-Services to strengthen strategic relationship with ship owners.
• Form alliances with dealing room teams internally and externally to drive the strategy forward.
• Increase the Revenue of the Fuel Oil Paper business by achieving USD 3mm (EBIT) in the 1st year.
• Target revenue in excess of USD 10mm (EBIT) in the 2nd year.
• Include straight run / feedstock / low sulphur fuel oil business into global business portfolio.
• Develop bunker business for fishing fleet.
• Introduce Asia model globally to enhance The Company Brand.

2 CUSTOMER ANALYSIS

2.1 TARGET CUSTOMERS IDENTIFIED

Firstly, the team will focus on the Asian Customer Base in order to grow the business in this region. What follows is by no means exhaustive in terms of client coverage. The team will not only market paper products to the customer base, but will also risk manage our positions in order to maximize profits on the trading books.

Key Prospective Clients Industry Region Products Traded Swaps &/or Options (Vanilla &/or Exotics) Revenue Potential $mm
APL/NOL Shipping Asia Fuel oil Swaps & Vanilla options 0.4
Chellaram Shipping Shipping Asia Fuel oil Swaps & Vanilla options 0.1
COSCO Shipping Asia Fuel oil Swaps & Vanilla options 0.3
Daiichi Chuo Kisen Shipping Asia Fuel oil Swaps & Vanilla options 0.1
Emirates Shipping Line Shipping Asia Fuel oil Swaps & Vanilla options 0.1
Evergreen Marine Shipping Asia Fuel oil Swaps, Vanilla & Exotic Options 0.3
Hanjin Shipping Shipping Asia Fuel oil Swaps & Vanilla options 0.25
Idemitsu Tanker Shipping Asia Fuel oil Swaps & Vanilla options 0.1
Mercator Lines Shipping Asia Fuel oil Swaps & Vanilla options 0.1
MISC Berhad Shipping Asia Fuel oil Swaps 0.25
Mitsui OSK Lines Shipping Asia Fuel oil Swaps 0.35
NYK Logistics Shipping Asia Fuel oil Swaps, Vanilla & Exotic Options 0.2
OOCL Shipping Asia Fuel oil Swaps & Vanilla options 0.3
Pacific Basin Shipping Shipping Asia Fuel oil Swaps 0.25
PCL Shipping Asia Fuel oil Swaps, Vanilla & Exotic Options 0.15
PIL Shipping Asia Fuel oil Swaps & Vanilla options 0.15
RCL Shipping Asia Fuel oil Swaps 0.1
Sinotrans Container Lines Shipping Asia Fuel oil Swaps 0.1
Taiwan Maritime Shipping Asia Fuel oil Swaps 0.1
Tanker Pacific Management Shipping Asia Fuel oil Swaps 0.1
Tata NYK Shipping Asia Fuel oil Swaps & Vanilla options 0.25
Thoresen Thai Shipping Asia Fuel oil Swaps 0.2
TS Lines Shipping Asia Fuel oil Swaps & Vanilla options 0.2
Wan Hai Lines Shipping Asia Fuel oil Swaps, Vanilla & Exotic Options 0.25
Yang Ming Shipping Asia Fuel oil Swaps, Vanilla & Exotic Options 0.1
Zhang Hang Shipping Shipping Asia Fuel oil Swaps 0.1

The above list will conservatively generate USD 4.9mm for the first year of operations. The target for 2011 is USD 3mm, so this figure will be easily achievable. Promise Little; Deliver More is the mantra for the risk management team.

Secondly, our focus will widen into Europe as the brand name of The Company gathers momentum in Asia. Again, the following list is by no means exhaustive and will grow with additional hires for the team on the marketing aspect.

Key Prospective Clients Industry Region Products Traded Swaps &/or Options (Vanilla &/or Exotics) Revenue Potential $mm
AS Klaveness Shipping Europe Fuel oil Swaps & Vanilla options 0.2
Bibby Line Ltd Shipping Europe Fuel oil Swaps & Vanilla options 0.1
Clipper Group Shipping Europe Fuel oil Swaps & Vanilla options 0.1
CMA-CGM Shipping Europe Fuel oil Swaps & Vanilla options 0.1
D’Amico Intl Shipping Europe Fuel oil Swaps & Vanilla options 0.2
DFDS Shipping Europe Fuel oil Swaps & Vanilla options 0.1
Hapag Lloyd AG Shipping Europe Fuel oil Swaps & Vanilla options 0.1
Heidmar Inc. Shipping Europe Fuel oil Swaps & Vanilla options 0.1
Norden A/S Shipping Europe Fuel oil Swaps 0.2
Oldendorff Carriers Shipping Europe Fuel oil Swaps 0.1
Scandlines Shipping Europe Fuel oil Swaps & Vanilla options 0.1
Searland Shipping Europe Fuel oil Swaps & Vanilla options 0.1
Torm A/S Shipping Europe Fuel oil Swaps 0.1
Western Bulk Shipping Europe Fuel oil Swaps 0.1

The estimated earnings in the tables above are based on:
• Knowledge of these customers’ trading activities
• The Company’s capabilities in these markets
In total, with Asia and Europe coverage, the estimated P&L for The Company will be in the region of USD 6.6mm in 2011, taking into account that next year will be a conservative one for the shipping industry.

2.2 CREATE THE RELATIONSHIP WITH THESE CUSTOMERS

• By first establishing who the point of contact is
• By calling these points of contact as they will know who the trigger person is, cold calling the company to establish the point of contact
• By making business trips to build the relationship with these contacts
• By regular contact via phone, email and Instant messenger (e.g. Yahoo, Skype, or MSN)
• Daily communication with key parties via a morning bulletin (see section 6)
• By having a communication plan that will raise the awareness and profile of The Company brand name in the Bunker Derivatives industry
• By utilizing The Company’s existing physical bunker supply facility, building in the derivatives element into package sales
• By initiating After-Sales-Services to help the client to monitor the risk and adjust their portfolio whenever it is necessary.

2.3 CREDIT PUSH TO BUILD THESE RELATIONSHIPS

• Credit lines for customers are absolutely essential in order to establish a trading relationship with them.
• The credit department needs to understand our customers to enable them to establish credit lines.
• The risk management trading & marketing team will identify to the credit department which customers are top priority for credit lines.
• Once established, trading records with these customers will enable the credit department to refine and expand credit terms available to our customers.

2.4 THE COMPANY PRODUCTS & STRENGTHS FOR TRADING RELATIONSHIPS

The physical bunker market has been on the up-swing in 2009 and 2010. With projected increases in the movement of goods and services, 2011 is expected to be even better. This is where The Company will focus and develop its business initiatives.
• The Company is very strong in the physical bunker market which will help leverage the paper side of the business.
• The Company has/will have storage capabilities which will help in the risk management of customers’ profiles.
• The Company’s infrastructure has substantial room for expansion in the straight run and low sulphur market.
• The Company has significant potential to expand their business lines in Asia both on bunker supply and physical trading which will generate sizable derivatives business and revenue.

• The areas to strengthen, besides those above, are in the speed of pricing, knowledge of market participants (such as other traders and the brokers of the various products), increased communication between marketers and traders and should trades go awry, customer recovery which is key to business continuity.
• Once the above are addressed, the desk will be in a position to deliver outstanding services translating into increased revenue and profitability.

3 BUILDING THE TEAM AND AREAS OF COVERAGE

3.1 INITIAL TEAM STRUCTURE

• The team will consist of 2 people in the Singapore office, led by David Kang as Director of PRISM Asia, assisted by a person experienced and knowledgeable on the physical trading and supply side.
• The Director and Assistant Director will be proactive on both trading and marketing of the products and there will be an operations person to perform middle and back office duties.
• David Kang, with his extensive experience in the paper market through the trading and the marketing of fuel oil, will be indispensable at the start-up of the derivatives sales, trading and packaging of The Company’s strengths in the global bunkering world and a person, preferably of mainland Chinese origin will drive the growth of the physical supply side with Chinese counterparties to increase flow trading and marketing.

3.2 INCREASE DESK SIZE AND REGIONS FOR GREATER COVERAGE

• In order for the desk to bring in greater revenue, there must be more regions of coverage.
• Coverage will expand into North Asia, especially in Taiwan, Hong Kong and China as these are still growth regions for the energy industry.
• The untapped areas of Asia for future expansion will be Pakistan, Bangladesh, Sri Lanka, Myanmar, Cambodia, Vietnam, Papua New Guinea, and New Zealand. Understandably, obtaining credit for some of these regions will be difficult as their political situations can be unstable and unfavourable. However, with the likes of Vietnam receiving the attention of greater interest from developed nations such as the US and France, stabilization in the Indochina region is expected in the medium to long term.
• Full time and full range global coverage on both physical and paper hedging followed by After-Sale-Services will make The Company outstandingly different from its competitors
• In order for the desk to bring in greater revenue, there must also be more traders and marketers.
• With increased trading capacity, there will be increased customer interest in dealing with The Company.
• A trader with products experience, with an options trading background, will be an asset to the desk.
• A Chinese national, preferably one with structured products experience, will be a great advantage to the marketing efforts of the desk.
• With more traders and marketers on the desk, there will be more time for business trips and thus relationships will grow, new relationships can be forged and new business opportunities and lines can be created.

4 BUSINESS DEVELOPMENT

• Essentially, most of The Company’s current clients will form the base of initial business for the Risk Management Team.
• At the moment, many customers are looking to lower their unsystematic risk to investment banks, institutional investors and big hedge funds as many of these counterparties are still reeling from the subprime crisis. This creates potential for The Company to gain market share by using NYMEX Clearport, IceClear and SGX AsiaClear to trade with these smaller, and not-so-credit-worthy, companies at the beginning, hence minimising credit risk, later moving into Long Form Confirmations and eventually ISDA Agreements.
• Additionally, Asian refineries are upgrading and enhancing their complexity. Fuel Oil (FO) production is decreasing, however, as it is an emerging market, Asian bunker demand is rising constantly. For example, Korea and Japan have become net bunker FO importers. Chinese demand has increased from 500,000 tons to 10 million tons per year during last 10 years. Therefore stable cargo supply is very important to North Asia. With The Company’s global network in sourcing bunker fuel and storage facilities, it is strategically important for The Company to build relationships with North Asian bunker players. Both parties will benefit from the strategic partnership not only on the coverage of global physical bunker supply and physical sourcing, but also on risk management.
­ For example, Chimbusco is buying eight million tons of RMG 380/cutters from the rest of the world per year. The Company has following strengths to offer Chimbusco as a strategic partner:
1 The Company is able to deliver stable fuel oil supplies to all Chimbusco branches in a timely manner
2 The Company’s storage facility in Singapore provides blending and break-bulk capability
3 The Company’s financial strength can offer support to Chimbusco’s expansion
4 The Company is able to extend Chimbusco’s physical bunker supply arms globally
5 The Company can provide the full range of hedging services to cover both Chimbusco and its clients hedging demand
6 In short, The Company is the best candidate to partner with Chimbusco.
­ On the other hand, among The Company’s global bunker map, China is still one weak location needing to be developed.
• Next, straight run fuel oil/feedstock is another key element in the fuel oil business. Usually, sulphur content of straight run fuel oil ranges from 0.2 – 1.5 % v/v. Annually, China is purchasing 10-12 million tons of straight run fuel oil/feedstock. Again, with a global network of sourcing and storage facilities, The Company has strong comparative advantages in blending and shipping suitable grades to China. With coverage on both bunker and China markets, The Company can easily place most of the profitable grades into the right baskets. Hedging is another important business to be expanded with the packaging of physical straight run fuel oil sales. Partnering with a Chinese end-user with full use of existing facilities ensures a significant potential business area The Company should not miss.
­ One candidate is Petrowin Resources Pte Ltd. It is a procurement window in Singapore for 4 private refineries from Shandong, China. With The Company’s global network, it is a secure and stable resource for the refineries and can offer commitment of long term supply with a partial fixed price element.
­ Year 1 target: 1 million tons of straight run fuel oil long term contract with USD2 million conservative estimated profits.
­ Year 2 target: 2 million tons of straight run fuel oil long term contracts with at least USD4 million conservative estimated profits.
• Finally, with a strong balance-sheet, The Company is strategically positioned with great strengths that can be utilized. Cash and carry of Gasoil or Jet/Kerosene with cheap storage in South Korea, Taiwan, China and Japan with a contango that is steep enough to provide minimum risk business is another area that The Company should target. Storage of winter kerosene for the Japanese market is another low risk, but high profit business which can average an achievable profit of USD0.50/bbl. Meanwhile, regional bunker suppliers are also short of cash. Inventory financing for selected partners such as Chimbusco can provide minimum risk revenue.

5 TRADING STRATEGY

David Kang, with his years of experience working for JP Morgan and Sumitomo Corporation Global Commodities, understands trading and risk management and how to trade around customer business in order to produce a profitable book.
As a trading company, one could use either 1 day Value-At-Risk with a 95% Confidence Interval to govern the limits of the trading book and how much can be lost in that time span (e.g. USD 1 million), or set a mark-to-market one day, 1 week, or 1 month cash limit.
Any loss in excess of these figures requires the managers of the book to take action to reduce exposure to risks, such as market, credit, and operations, to name a few.
The trading of proprietary positions is as important, if not more so, than customer induced positions. Without the ability to trade proprietarily, The Company cannot take advantage of discrepancies and inefficiencies in the market, position the book appropriately so that the company can be “axed” to do the customer side of the business that it wants to take advantage of.
For example, coming off a proprietary position, if The Company is short inter-month spreads for 180cst and short Viscosity (the difference between 180cst and 380cst), the company is now axed to offer flat price 380cst to the shippers. The shippers will buy back-end 380cst from The Company as the company can offer a better price than its competitors based on the positioning of the book.
Another example, again coming off a proprietary position, is if The Company is long volatility at lower levels and shippers come in to buy options, the company is axed to win the trade from its competitors.
Curve trading is an essential part of working the contango, or backwardation. to The Company’s advantage. Understanding seasonality is another tool that can be exploited by the trading team and all this knowledge comes from years of experience.
David Kang has been trading and marketing for various companies for a combined 10 year window and has the experience to take The Company to the next stage.

6 MARKETING STRATEGY

Communications with the existing client base is fairly straightforward as existing relationships and ongoing dialogue provide the channel for the marketing messages. Although The Company’s existing customer base is large and diversified, it is still fairly US-centric and there are still a large number of untapped global customers that should be courted.
Organizing lunches and dinners will not only help build the relationships that already exist, but will also provide networking opportunities for The Company to gain introductions to more potential clients.
Attending conferences and seminars will help the marketing effort by allowing the attendees to network and educate the other participants on The Company push into trading and marketing of energy derivatives.
Customer retention is important and the team will work towards a balance of brand loyalty and client-marketer loyalty (employee retention is very closely linked to customer retention), as The Company is now another institution that has come into this market to fill the gap that others have left.

7 OPERATIONAL STRATEGY

At the start of the day, it is important to for the PRISM team to update spread-sheets and perform basic and advanced analysis of the market in order to give the physical marketers, and their customers, a morning bulletin summarizing overnight activity, technical and fundamental analysis and projections. So this should be a key part of the morning activity of the team.
In order to begin the day productively, it is important to make morning calls to customers, part social and part professional, in order to check on any current requirements and generally open the dialogue for the day.
Establish a common/shared internal system that provides real time, updated information to all team members on the current market activity.
The team in Singapore will work cohesively with teams from other international offices and will establish good communications.

8 KEY PERSONNEL

The Director will be in charge of trading, marketing, sales and packaging functions of the desk. He will be responsible for the motivation, performance and development of the team.
He will work closely with the relevant sections within the organization, not only to ensure the cross-selling of products, services and negotiating ISDA documents, but also of promoting The Company brand and profitability of The Company as a whole.
There will be room to expand by hiring, within the next 2 years, 2 more traders and marketers, and one mid-level manager, all having been in the industry for at least the last three years and understand the business, have the relationships and are able to work independently as well as with the team. Whether this will be on a more global level will depend on how effective the Singapore operation is within the first 6 months.
The managers will be responsible for effective communications with their clients. This takes place at three levels, in the following order of preference. Firstly, face-to-face communication, where possible, is most effective and builds rapport the fastest. Secondly, voice communication, and lastly by instant messaging (e.g. Yahoo messenger) and email.
We will have to hire at least one operations person to book, reconcile and update the trades on a daily basis.
A junior person, such as a recent graduate, or undergraduate from a decent university will come in at trainee/intern level and add value to the desk by helping to answer the phones, administrative issues and overall care for the desk. The cost for this person will be minimal.
The team will be small at the beginning, as keeping costs under control is important, whilst working on increasing market share and educating customers are the first steps to expanding the current business and opening new businesses.
The time frame the personnel should be working on to show a viable, profitable business will be anywhere from 6 months to 2 years, if credit allows.

9 TECHNOLOGY

The team should be proactive on all trading and marketing related technology issues (support and development) such as CQG, Global View, PlotTool, Bloomberg, Reuters, TradeCapture (now Amphora), etc., as a few examples.
Also, a dealer-board system for the desk will not only be helpful for the trading effort, but will also become indispensable in the marketing scope as the number of trading lines allows more customers to call at any one time.

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...Business Plan Your Escape Salon/ Spa/ Resort & So Much More! Oyster Bay Cove Academic Edition New York June 20, 2012 Academic Edition Confidentiality Agreement The undersigned reader acknowledges that the information provided by__ in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _Your Escape Owners_. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _Your Escape_. Upon request, this document is to be immediately returned to __ ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a business plan. It does not imply an offering of securities. Academic Edition Table of Contents 1.0 Executive Summary .................................................................1 Chart: Highlights ..............................................................1 1.1 Objectives .......................................................................1 1.2 Mission ...........................................................................2 1.3 Keys to Success .................................................................2 2.0 Company Summary ..................................................................3......

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...REPORT A Business Plan Franchise Business With Quiznos-Sub Company Submitted To: Mr. Md. Badiruzzaman Lecturer, B.B.A Dhaka City College Group Name Spark Section B B.B.A 10th Batch Dhaka City College Group Name: Spark Group members: ID NO Name: 77 Tanvir Ahmed Siddique 123 Fatema Rahmin 13o A.S.M Hasan Al Alim 131 MD Ferdous Alam 135 Mhammad Nazimuddin 138 Fahmida Huq Putul Letter Of Transmittal Date: June 15, 2011 Mr. Md. Badiruzzaman Lecturer, B.B.A Dhaka City College Subject: Solicitation for acceptance of the report Sir We are glad to be able to submit the report on the basis of our Business plan. This report is all about a company name “Quiznos Sub” which is new in our country. We tried our best to include information, which we collected from both primary & secondary sources. We eagerly believe that you will find the report according to your specification & will enjoy it as much as we’ve finished while preparing it for you. Thanking you Yours truly, All group members of Spark General Description Of The Venture Quizzes Sub is a fast food......

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................................................................................................................................... 4 1.1 Business Overview .............................................................................................................................. 4 1.2 Business Model ................................................................................................................................... 4 1.3 Market Analysis ................................................................................................................................... 4 1.4 Financial Projections ........................................................................................................................... 5 1.5 Financial Needs ................................................................................................................................... 5 1.6 Debt Repayment Plan ......................................................................................................................... 5 2. Business Overview ................................................................................................................................... 6 2.1 Vision and Goals .................................................................................................................................. 6 2.2 Business Location .................................................................................................................................

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...18-24). Delete those that are not relevant. • Age: • Income: • Gender: • Location: • Marital status: • Family size: • Occupation: • Language: • Education: • Values/Beliefs: • Activities & Interests: • Business size: Below is a snapshot of the size of our target customer market: • To find this information, go to http://www.zipskinny.com/ (for demographic statistics by zip code) and/or http://www.bls.gov (for number of businesses fitting your target customer profile). Customer Needs Below is a profile of the needs that our target customers have: Here you will specify why customers want or need your products and/or services. Below are several examples and customer need areas. For the relevant areas, modify to detail the needs of your customers (e.g., customers want products that work faster). Feel free to add to or delete from these customer needs. • Speed: • Quality: • Location: • Reliability: • Comfort: • Price: • Value: • Customer Service: • Convenience: • Ease of use: • Other: • Other: • Other: • Other: V. Competitive Analysis The following is an overview of [Company Name’s] competitors. Notes for completing this section of your business plan: • Any company or action that serves your customer’s needs is a competitor to you • There are Direct and Indirect competitors. Here are examples for a pizza shop: o Direct competitors (fills customer need with same......

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