NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 04 | Airway Delivery: A New Business Opportunity
Submission BCS
FLYTER DRONE SERVICES
Submission Date & Time: 2022-02-10 02:50:59
Event Name: NMO S4 Sprint One - SB Patil
Solution Submitted By: Apoorva Bahirat
Assignment Taken
Financial Planning for the year 2021-22 ( Budget preparation and Estimated Budget)Case Understanding
Flyter Drone Services is a courier company which majorly operates across India and delivers to most pin-codes. The company wants to add the drone based services to conduct local deliveries as it is an extension of company’s current services portfolios. It will give an edge to the company among all the courier based companies. The company has all the necessary permissions from Director General of Civil Aviation (DGCA), as it is a mandatory rule from all the flying objects in India. Company was successful in testing deliveries. As per feedback received by Initial Users time saving is clear and best use case for "drone services". Company wants drone services to add value to end users and as it is an extension of company's current services portfolios.BCS Solution Summary
The budget has been prepared for the financial year 2021-2022. The budget given for the all divisions for financial year 2021-2022 was 10CR. The expenditure for FY 2021-2022 is moderate as of other delivery services. The overall expenditure of all department is around 4CR. So the remaining 6CR can be utilised for expansion of business, buying more drones and hiring team to manage drones.Solution
The detailed solution is given below:-
EXPENDITURE AND BUDGET FOR FINANCIAL YEAR 2021-2022
|
SL NO. |
PARTICULARS |
QUANTITY |
COST PER UNIT (INR) |
REMARKS |
|
1. |
Short Range Drone |
4 |
1,25,000 |
5,00,000 |
|
2. |
Long Range Drone |
1 |
4,00,000 |
4,00,000 |
|
3. |
Qualified Drone Operators |
4 |
50,000 |
24,00,000 |
|
4. |
Management Team |
5 |
1,00,000 |
60,00,000 |
|
5. |
Software |
1 |
25,00,000 |
25,00,000 |
|
6. |
Software Development Team |
2 |
70,000 |
16,80,000 |
|
7. |
Support Staff |
4 |
20,000 |
9,60,000 |
|
8. |
Drone Maintenance Cost |
5 |
24,000 |
1,20,000 |
|
9. |
Office Rent |
12 |
30,000 |
3,60,000 |
|
|
TOTAL |
1,49,20,000 |
||
|
10. |
Marketing Department Expenses |
2,00,00,000 |
||
|
11. |
HR Department Training Expenses |
40,00,000 |
||
|
|
TOTAL COST FOR FY 2021-2022 |
3,89,20,000 |
||
SALES TARGET FOR FY 2021-2022
|
CATEGOREY OF COURIERS |
COURIER WEIGHT |
PRICE (INR) |
BOOKING UNITS |
DAILY (INR) |
YEARLY (INR) |
|
A. |
0.1 grams to 500 grams |
60 RS |
700 |
42,000 |
1,53,30,000 |
|
B. |
501 grams to 1 Kg |
80RS |
600 |
48,000 |
1,75,20,000 |
|
C. |
1.01 Kg to 5 Kg |
100RS/KG |
500 |
50,000 |
1,82,50,000 |
|
D. |
5.01 Kg to 10 Kg |
110RS/KG |
450 |
49,500 |
1,80,67,500 |
|
TOTAL |
6,91,67,500 |
||||
Conclusion
As above mentioned the company is in profit and is less likely to go in loss in future. The profit can be used to expand company’s business. The company is like to have good position in market in long run. If the company goes with the targeted sales plan then it will surely reach break-even in its first financial year.Attached File Details
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
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