NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 04 | Airway Delivery: A New Business Opportunity
Submission BCS
Financial Break-Even targets, Product Mix & Operational/HR capabilities of Boppity Hoppity Logistics
Submission Date & Time: 2022-01-26 13:06:48
Event Name: NMO S4 Sprint One - IIM Kashipur
Solution Submitted By: Buddha Kinkar Bhaumik
Assignment Taken
Financial-Break Even TargetsCase Understanding
The company is a courier service that delivers to most Indian pincodes. The company's board has resolved to enter the "Hyper Local Delivery Space" with drones. In India, all flying objects must be approved by the Director General of Civil Aviation (DGCA). Your firm has all required permits. Successful test delivery and BVLOS trials are undertaken. Due to the high purchasing cost of "long range drones", the company has opted to launch its business as "Short Range Drone Based Services". Build an end-to-end Drone Operations & Management Platform for quick company growth. Companies including food delivery services, pharmacies, and local businesses have benefited from the company's beta testing delivery services, and the company plans to expand its business sectors for low-cost cargo deliveries. Time saving is clearly the best use case for "drone services" according to Initial Users. Drone services are an expansion of the company's present service offerings. A section for Drone Business has been established by the company's board. To break even in the first year. Branding. Process and product innovation to dominate the market. The divisional budget for 2021-2022 is Rs. 10 Crore. With the following goals in mind, you are tasked to draught and submit a full business plan for the Company's Board approval. Business case, marketing strategy, brand journey projection, HR recruitment & training plan, financial planning for FY 2021-22, IT infrastructure plan would be created as per Leader's directions.BCS Solution Summary
A common cloud site collection should be set up to maintain all the storage databases, websites and the applications. Details such as Sender Name, Sender Address, Receiver address, Package content, Package Weight, Sent Time, Received Time should be maintained in a cloud-based storage. A CRM system that is properly implemented allows you to manage the client lifecycle and identify new prospects by targeting and retargeting them. You may choose an integrated solution that incorporates all three alternatives, or mix and match based on your company needs. The selection you make is critical since it affects the operation of your company, as well as satisfied consumers and vendors. India's Ministry of Civil Aviation has announced a framework for managing drone traffic. The framework includes both public and private third-party service providers. An automated unmanned aircraft system traffic management system (UTM) is needed to manage drone traffic below 1,000 feet.Solution
| Cost Module | Break Even Analysis: First Year | ||||||
| Particular | Quantity | Cost/Per Unit | Total Cost | Hit and Trial Method | Units | Approximate Number of Customers | Revenue Generated |
| Short Range Drones | 4 | ₹ 1,25,000.00 | ₹ 5,00,000.00 | 10000 | Customers | 10000 | ₹ 6,00,000.00 |
| Long Range Drones | 1 | ₹ 4,00,000.00 | ₹ 4,00,000.00 | 8000 | Customers | 8000 | ₹ 6,40,000.00 |
| Qualified Drone Operators | 4 | ₹ 50,000.00 | ₹ 2,00,000.00 | 14000 | Kgs | 5600 | ₹ 14,00,000.00 |
| Management Team | 5 | ₹ 1,00,000.00 | ₹ 5,00,000.00 | 15000 | Kgs | 2000 | ₹ 16,50,000.00 |
| Software | 1 | ₹ 25,00,000.00 | ₹ 25,00,000.00 | Total Revenue: | ₹ 42,90,000.00 | ||
| Software Development Team | 2 | ₹ 70,000.00 | ₹ 1,40,000.00 | ||||
| Support Staff | 4 | ₹ 20,000.00 | ₹ 80,000.00 | ||||
| Division's Share | 1 | ₹ -30,000.00 | ₹ -30,000.00 | ||||
| TOTAL | ₹ 42,90,000.00 | ||||||
| Customer Segmentation | |||||||
| Category of Couriers | Courier Weights | Price | Units | ||||
| A | 0.1 grams - 500 grams | ₹ 60.00 | Per Customer | ||||
| B | 501 grams - 1 Kg | ₹ 80.00 | Per Customer | ||||
| C | 1.01 Kg to 5 Kg | ₹ 100.00 | Per Kg | ||||
| D | 5.01 Kg to 10 Kg | ₹ 110.00 | Per Kg | ||||
| Solver Solution Break-Even Analysis | |||||||
| Particulars | A | B | C | D | |||
| Cost Per Units | ₹ 60.00 | ₹ 80.00 | ₹ 100.00 | ₹ 110.00 | Using Solver | ||
| Number of Customers | ₹ 7,500.00 | ₹ 5,000.00 | ₹ 8,50,000.00 | ||||
| Total Weight of Delivery | 10000 | 22181.82 | ₹ 34,40,000.00 | ||||
| Cost per Category | ₹ 4,50,000.00 | ₹ 4,00,000.00 | ₹ 10,00,000.00 | ₹ 24,40,000.00 | ₹ 42,90,000.00 | ||
| Constraints | Coefficients | SumProducts | Parameters | ||||
| Minimum Number of Type A Category Customers | 1 | 0 | 0 | 0 | 7500.00 | >= | 7500 |
| Minimum Number of Type B Category Customers | 0 | 1 | 0 | 0 | 5000.00 | >= | 5000 |
| Maximum Number of Type C Category Customers | 0 | 0 | 1 | 0 | 10000.00 | <= | 15000 |
| Minimum Number of Type C Category Customers | 0 | 0 | 0.2 | 0 | 2000.00 | >= | 2000 |
| Maximum Number of Type D Category Customers | 0 | 0 | 0 | 0.2 | 4436.36 | <= | 5000 |
| Minimum Number of Type D Category Customers | 0 | 0 | 0 | 0.1 | 2218.18 | >= | 1000 |
| Number of Customers in Integers | 0 | 0 | 1 | 1 | 0.00 | = | 0 |
| Total Weight of Delivery in Kgs | 1 | 1 | 0 | 0 | 0.00 | = | 0 |
Conclusion
Drone although an up-and-coming industry, which would in the coming decade is hoisted with hiring 100,000 people is still is rough waters. Although govt has been positive of late about the prospect of Drones in the sky, it will be some time before the business could harness the benefits to the max. But at this junction, the organization does have the advantage of being the blue ocean entrant. They could be the first to enter and start up a change in the logistics industry.Comments
Article Type: Business Case Scenario, Case Study Solution Submission
Business Case Detail
Title: NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 04 | Airway Delivery: A New Business Opportunity
Type: Case Study
Stream: Management
Kasper22 - IIM Ksh
Total Team Points: 10000
Strategy Honchos - IIM Ksh
Total Team Points: 36000
Consilium Beta - IIM Ksh
Total Team Points: 45500
Boppity Hoppity - IIM Ksh
Total Team Points: 34250
Metamorphic Resurgence - IIM Ksh
Total Team Points: 0