BWJ Driving School

Proprietary Information

BWJ Driving School

BWJ Driving School is co-owned and managed by the William Baloyi CEO

Wilson Baloyi CEO Offices47 Oyster BayMuizenbergCape Town7945

Contact Information Telephone 073 DRIVING 073 374 8464 availableCustomer Care ContactsCEO (079) 467 5971 (073) 233 4680Website www.bwjdriving.co.za

1 Executive Summary2 Strategic Window of opportunity3 Assessing the feasibility business

opportunity a. Demand & Supplyb. Market Forecastc. Duration of Opportunityd. Market Potential (Viability of

opportunity)e. Feasibility of the Business ( Do-ability) f. Sustainability (business continuity)g. Market Shareh. Assessing the feasibility Sales Volumes

4 Profit Planninga.Anticipated Revenuesb.Cost Planningc.Tax Planningd.Budgetary Planning e.Profitability Planning f. Financial Efficiency

5 Resource Planninga.Anticipated Markets b.Anticipated Processesc.Anticipated Labourd.Anticipated Equipment

BWJ Driving School

e.Anticipated Capital Expendituref. Budgetary Planning g.Return on Investment h.Resource Utilisation Efficiency

6 Operations Planninga.Supply factorsb.Value Chain Managementc.Seasonal Opportunityd.Capacity Planninge.Processes & Workflow f. Business Process Improvement

7 Quality Managementa.Service Excellenceb.Client Specificationsc.Communication Techniquesd.Standard Documents and Formatse.Delivery turnaround timesf. Client Base g.Training & Developmenth.Output & Productivity i. Occupational Safety & Health

8 Developing Sales Strategya.Sales Forecasting & Planningb.Sales/Profit/Volume Analysisc.Selling Strategy d.Product Lifecycle strategiese.Staffing and Motivation

9 Venture Risk assessment of the Permit Visa services Businessa.Customer Relationsb.Competitor Behaviour

c.Change of government Regulations d.Internal Business Riske.External Business Riskf. Legislation and compliance Riskg.Theft and Vandalismh.Labour Action

10 Risk Mitigation Strategy a.Business Insurance Coverb.Reimbursement Policiesc. IT Security Policiesd.Financial reservese.Customer Care Trainingf. Corporate Governance

11 Future Patternsa.Web Based Businessb.Online Registrationsc.Social Network Marketingd.Virtual Customer Servicese.Credit card payments

12 Technologya.Equipment and peripheral devicesb.Enterprise Solutionsc. IT Securityd.Networking e.Remote Access & Unified

Communication13 Innovation

a.New Service ideasb.New market development

1. EXECUTIVE SUMMARY

a. Overview BWJ Driving School cc is a close corporation that aims to capture the market by providing driver taining of an unprecedented quality and nature. The legislation and the banking regulations ensure that new vehicle purchasers should possess valid driver’s licences.

(i) the bank finance deal requires insurance cover because motor vehicles are expensive assets

(ii) the Road Traffic Act requires that Vehicle registration be issued in the name of a driver with a valid driver’s licence

Simply stated our business model involves three stagesBWJ Driving School (BWJ) offers a wide range of driver services. It is ultimately the goal of the company to be a one-stop facility for all driver needs, including registration, licensing, etc., but at this time BWJ Driving School mainly offers private and commercial driver education in the Cape Town, Western Province area. BWJ is positioned as a low-cost facility with excellent service.

One of our key dynamic strategies is to do sustainable business like Permit Assistance with VISA applications and related services and take advantage of the politically necessitated opportunities that are currently dominating the environment of South Africa

b. Keys to Successi) Service ExcellenceThe business of BWJ Driving School is a people business that involves the private individuals and government departments. It is the sensitivity of the needs, the variety of expectations & specific requirements of these stakeholders that drive the nature for the service.

We aim to capture the market by courtesy and diplomacy before professionalism as a cornerstone of our business. All permanent staff and temporary personnel will demonstrate trustworthy conduct with client’s documents and moneys, provide excellent service and good customer care in offering assistance with Learner and driver’s licence applications and related services.

We operate in a dynamic and fast-paced environment so we will use Guerrilla Marketing Strategies by being either readily reactive to sudden unexpected changes in the requirements and legislation on driver’s licence applications in South Africa.

We have a Risk Management Strategy in which we have detailed the business risks that may affect the welfare and survival of our business. These risks are likely to surface as new and imminent business threats.

The business will drive quality by doing thing right the first time and doing things first time right, because repeating the task without repeating the revenue is a loss of opportunity for the next job, a waste and an inefficient use of income generating resources. Perfection and zero error lowers input costs, improves throughput of the business system and drives costs to a bare minimum. Good business profits come from service excellence wherever possible.

We shall work closely with the traffic departments and the public in our attempt to add value to clients and keep up to date with intended changes and new developments, embrace new laws and systems proactively so that we become knowledgeable. This will make us “Driving School of choice” on the basis of consistency, reliability, quality, guarantee, and value for money, suitability for purpose, and affordability. An effective business strategy is to mind the communication, business documentation (professional envelops and sleeves) and branding (logo) of the receipts and invoices. Marketing and Sales efforts need to be articulated more through one-on-one selling in the field, signed referrals with photographs and dates, inhouse presentations and adverts on the internet and local newspapers. We aim to create value in the minds of clients by recreating an impression that our service is

quicker, cheaper more efficient and more reliable. Clients must perceive us as more client friendly and we deliver service using highly knowledgeable and professional staff service. Each Local government traffic department has a specific focus and Road safety strategy which are most sensitive. Our liaison and the continuous reading and research ensures that our business delivers service of highest ethical standards, maintain consistency of quality all the time, and we use the most up to date procedures and methods for Learner and Driver’s licence applications. This hallmark of success is portrayed by the equipment and business systems we use. We have planned and budgeted for service operations and administration to ensure we have visible display of customer care, professional conduct and that we are a systematic and well-managed business. We use clear and easy to understand marketing strategies, going green with our printing, using environment friendly materials in our business, and energy saving devices in our offices. We advocate for an occupational health and safety philosophy, we utilise Customer Relationship Management, straightforward management and procedure structures for the service operations.ii) Managing the BusinessWe believe only in intelligent business management that involves clear definition of processes, methods, and document management. Management proactively participates in the delivery of good customer service. We believe that maintenance of our cash flows, motivation of our staff and service quality are the signs of good business management.iii) MarketingMarketing decisions and actions are the most ceremonious activity in the firm because markets drive the business. Our business success will depend on how well we respond to these needs in terms of our flexible methods, quick delivery, invoicing system, and effective strategies of payment collection.Our marketing is done to the book because only intelligent businesses who cover the scope of the whole business scenario can survive. Business survival is a serious matter; so planning, execution, evaluation and control of research, budgets, resource allocation, strategies, and selling, adverting, customer care are all part of the ritual and ceremony of running our business. iv) Infrastructure-Administration: We have Small Office Home Office(SOHO) in an upmarket environment dedicated to administration and client liaison in which we have an office desk, high back office chair, Duo Core Laptop, Desktop Computer, telephone line, fax/ printer/ copier machine, internet connection. -Business Premises: We use as office space the domicile of Wilson Baloyi so as to keep running costs low. This enables us to competitively price the services, increase our profit margins, attract a healthy streamflow of clientele, stay in proximity to the source of prospects, stay close to the Department of Home Affairs and have a quick break-even on the investment. -Storage: Although services cannot be stored, we have designed policies and procedures and also generic templates which we customise in order to fast track the tasks. By this we are able to bulk process large volumes of client orders in a short space of time and we can easily recreate the same outstanding quality service. This also increases the revenues and lowers the input cost in terms of wages per hour. Stock of consumables in order to alleviate inconsiderate usage, theft, waste, we have a stores cupboard in which we keep printer paper, new printer cartridges, other forms of office stationery. Our service must be as smooth and oiled with no hitches and bumps.-Expansion: Top Management has a vision for bigger office space although nothing has been earmarked as yet. This is just what our government requires-(i) Investment in the urban communities (ii) the skills development through learnership opportunities and (iii) to create employment (iv) and run sustainable businesses that can maintain our nation through GDP increase and payment of taxes. -Dispatch: Effectively dispatching the finished job is an opportunity to show our flagship in the eyes of the customers. We use branded stationery in mint condition. We are dressed formally 5 days a week in order to give the office impression to the clients because prices in this industry are high. Although the clients will not insist on neatness and tidiness it is silently assumed that if you charge and receive amounts to the value of R3-000,00 at a go then, we must be appropriately dressed to get repeat business and even respect from customers.

-Document Courier: We are in close proximity to the department of Home Affairs our major office and at this juncture we do not need to have any standing contracts with document couriers. c. Brand StrategyThe name Eric is a much respected and permeating English name. It is a word that assures and guarantees reliability. The charismatic personality blended with the professional service rendered gives the business strong and reliable referrals that keep the business going on and on. The value proposition of VISA applications and related services given by BWJ Driving School is competitive and at par with many in the market but there is that distinct service differentiation that makes the clients prefer BWJ Driving School. BWJ Driving School is a highly marketable brand, it is the customer service, transparency, reliability, shorter turnaround times, our organisation culture, our etiquette, the professional conduct of our staff that creates one class of the most unique and tenacious brands. If the service is positioned correctly against market needs we are set to reach greater heights. Unlike most mundane Western brands there is curiosity and excitement in our names. Our success easily catches the world’s attention so under the brand of BWJ Driving School Services we aim to steal the limelight.

The CorporationBWJ Driving School was formed and incorporated as a Close Corporation at CIPRO in Pretoria under the Close Corporations Act 69 of 1984 (s2) in the year 2009 on the 20th day of the February month.

2. STRATEGIC WINDOW OF OPPORTUNITY

Eric Akumanyin Antwi and Amanda Opisso the owners and directors of BWJ Driving School has identified a business Opportunity in the Cape Town Metropolitan area. The following factors make it feasible for BWJ Driving School to attain profits in this line of business.

a. Business Opportunityi. For many years, South Africa has been a popular destination for holiday makers,

students, work seekers and business owners, investors and retirees. Many foreigners coming to South Africa are touched by the diversity and beauty of the country and its people, and many decide to prolong their stay or settle here altogether.

ii. The independence of the country in 1994 implied that doors were open for the former host countries that provided sanctuary for our comrades in the past to come and visit and even choose to stay, study, work, invest or do business in South Africa.

iii. The situation was further exacerbated by anarchy, military rule, dictatorship, human rights abuse, war and embezzlement of government funds that all lead to hunger and human suffering. With that we extended a gesture to open our doors to the rest of the continent be a safe haven for our fellow brothers and sisters.

b. Financial Resourcesi. The Eric Akumanyin Antwi is at the prime of his time being a seasoned entrepreneur

who understands the intricacies of the business and its markets. He has Business and accounting background, good banking record, clean credit record, and a number of assets of considerable value, is able to access finance through a number of alternatives such as normal lending from First National Bank, Standard Bank and Nedbank. The South African Reserve Bank’s monetary policies and favourable lending rates are structured to encourage business risk taking and investment rather than idle fixed deposits so that banks can dispense capital to the businesses that deserve the chance. There is also State Enterprises which ensure that entrepreneurs access funding for their businesses through credit guarantee.

c. Economic Conditions i. Our nation is rich in natural resources. Current economic policies favour immigration

into this country and the Immigration Consultancy industry is one of the keystones in this regard. Many foreigners come in huge numbers to take advantage of this situation and come to South Africa.

d. Growing Markets

i. The attraction of better education, health care and the quality of life creates a growing market due to increase in immigrants from Africa and abroad.

ii. International business brings many visitors to prospect for new opportunities in South Africa as a whole and Cape Town in particular; this growth in the number of potential applicants for permits increases the demand for our service.

iii. Political unrest and dictatorship, military rule and ‘coup d`é tat’s imply an increases the number of potential clients for our services.

iv. Immigrants intending to reside, study, work or start business in South Africa also contribute to the increase in the demand for the services we offer.

v. More foreigners more businesse. Political climate favours

i. Political climate favours sound foreign policies and international relations. The nation stands as a global symbol of a nation with a system of governance to emulate. The governing party “the ANC” is ranked as one of the best rated political parties in the world in terms of policy making and policy implementation.

f. Government Interventioni. The Department of Home Affairs (DHA) subscribes to global standards of Human Rights

and one of them is the right to reside, work or study in any place of one’s choice on the globe: this is evidenced by the ease of applying for a Visa and Residence Permit.

ii. In order to alleviate the workload that the department is so inundated with, there are structures to support privately operating Immigration Consultants with training in the processes and procedures the documentation and the legislation so that these Immigration consultants are conversant and proficient in the legislation, processes and procedures.

iii. There are many Key areas of improvement and new opportunities for development of new business services DHA and there are support structures as well for conducting business in those areas.

g. Post 2010 Turn of Events i. 2010 FIFA world cup brought an influx of football tourists into this country. These

visitors have seen for real what a splendid place this is in terms of immigrants, business and other facilities and will encourage others to visit or maybe even stay in this country. As such international advertising and online access to our services will enable us to capture the business we need in the post FIFA 2010 World Cup events.

h. International Trends in Human behaviouri. The present

trend is for humans to migrate to countries with opportunities that best match one’s capabilities and resources. The current foreign policies of many nations allow citizens to migrate freely to regions of their choice.

ii. Many graduates, professionals and entrepreneurs are coming in droves into this country due to many untapped resources and opportunity presented by the fact that this country is recently liberated to Black majority rule.

iii. International sanctions during the pre-1994 apartheid era brought the whole development to a stagnant growth and this is has been reversed and South Africa is budding with great prospects: another opportunity for the enterprising and experienced who are willing to come into the country and take advantage of these greener pastures.

iv. Political instability, poverty and hunger drives many from the African continent to seek refuge and asylum in this country.

i. Change in Legislation 1 July 2005 .i. The then Minister of Home Affairs’ (Nosiviwe Mapisa-Nqakula of the African National

Congress – ANC) as correction of the errors of the the immigration regime which had been introduced by the former Minister of Home Affairs Dr. Mangosuthu Buthelezi (Inkatha Freedom Party – IFP) and which had brought about revolutionary changes.

o Buthelezi and his advisors had introduced, amidst much controversy, an immigration regime which attempted to keep up with global trends and to attract investment into the country. It was meant to make immigration for bona fide applicants easier in order to free resources for combating illegal immigration, corruption and fraud.

oThe Immigration Act (Act No. 13 of 2002) and Regulations were widely criticised, especially for the lack of consultation of the relevant bodies and organs during its drafting.

ii. The recent amendments to the Immigration Act and Regulations were intended to correct legal errors, to close gaps, to make the application of the laws simpler and to improve the conditions for investors to South Africa.

iii. As is the case in all areas of South African politics, the situation of South Africa’s immediate neighbours and of the entire African continent is taken into special consideration.

iv. Although South Africa’s dire need for direct foreign investment is acknowledged, the government is increasingly differentiating between various types of investment and puts more and more value on a particular investment or foreigner’s contribution to the country’s sustainable growth and to employment creation.

j. Technologyi. Modern Technology is a dynamic and globally competitive allowing the Home Affairs

departments to easily access their databases, rapidly process queries and through integration with the International Police (Interpol) or by means of other diplomatic treaties governments department are sharing secure information across borders.

ii. Technology facilitates better screening of citizenship and permit applications.iii. World class technology is readily available in South Africa and this makes it easy for

DHA and agents to inter-operate.

3. QUANTIFYING THE BUSINESS OPPORTUNITY IN TERMS OF a. Demand & Supply

For many foreigners, however, obtaining the relevant residence permit poses a great challenge. As applicable laws, regulations and practice are complex and success is vital for the foreigner’s future life, seeking professional assistance is advisable.In choosing the permit category and the application procedure and in preparing the application, there are numerous pitfalls which can cause enormous delays and may jeopardise the application. Once an application has been rejected, obtaining a permit is a time-consuming exercise and may be impossible. Further, Departmental officials’ interpretation and application of the laws still lack transparency and consistency, which may lead to misunderstanding and frustration on the side of the applicant. With the help of a professional advisor, however, a foreigner’s immigration can be a pleasant and stressfreeprocess.

Definition of Demand: The demand for our service is the amount of permits and visas applications and related services a single consumer will require in a given time. An individual or consumer is a single person or a child or single organisation. Sector demand looks at the total applications for permits in a month, quarter or year for the service whether or not it is provided by Eric is Permit Assistance, our competitors, or even provided by the Home Affairs itself. This is the annual usage in millions of Rands. Market share is the % of the pie chart that BWJ Driving School or our competitors have in the annual business (or sales).

Demand Philosophy: Economic demand is effective demand. It is not what our customers are willing to pay but how much money customers have in the hand to spend on our service. To be profitable we seek customers with 1) need 2) money 3) willingness to pay and 4) clients who choose or prefer to use the ‘BWJ Driving School’ brand.

The Cape Town Metropolitan immigrant population is unofficially ±0,469 million persons including children and infants all of which by legislation require permits to reside in this town.

What drives demand?: Tyranny, dictatorship, human rights abuse, war, hunger, study, personal choice, business, sound legislation raises the need for residence/study/work permit applications. The exacerbation of the above factors means more opportunity for ‘BWJ Driving School’ to make money due to a greater possibility that we provide what is in demand.This is our assurance: that the immigrants need the necessary paperwork to stay here and avoid arrest fines, deportation and embarrassment. A second factor is the fact that they cannot bank, open any account, study, work, open own business, rent premises or drive a motor vehicle without a valid permit.We seek to take advantage of this opportunity to make profit for the business owners.b. Market ForecastThe applications are set to increase with the continuation of dictatorship and tyranny on the African continent impelling immigration, thereby contributing immigrant influx into Cape Town and South Africa in general. There is an imminent unexpected boom due to the post-FIFA 2010 referrals and consequently the highlighting of the splendour of the

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country or more sports events in the future due to availability of stadiums and infrastructure and our ability to market RSA on the globe. c. Duration of OpportunityThe permit assistance Permit Assistance business has been reported as being one of the fastest growing industries in South Africa today. The DHA is having trouble with keeping up with demand. The DHA system gives temporary permits that require continuous renewal. This trend is set to continue as much as humans continue to live on this planet.d. Market Potential (Viability of the opportunity for Permit Assistance Business)i. Foreigners all in all, earn or spend over R830 million per year on permit applicationsii. The City of Cape Town immigrants alone spend above R11 million per month iii. The family influences, stemming from the need to be together by bring families

together often pull relatives and friends into this country when immigrants send them invitations to come into the country

iv. The media (magazines, radio, television, and cinema) and the tales from our own people visiting other parts of the globe and giving invitations to the natives of those countries influence their desire to come into South Africa.

v. Alienation due to apartheid policies in the past made many political activists to seek refuge in host countries; the policies of the new South Africa have seen more and more individuals who were in host countries like Zimbabwe, Zambia take this opportunity to visit the land.

vi. The Colonialist Policies such as Witwatersrand Native Labour Act (WNLA) of 1937 saw the procurement of African (so called native) Labour from British colonies like Botswana Protectorate, former Southern Rhodesia (now Zimbabwe), Northern Rhodesia (now Zambia), Nyasaland (now Malawi) and Moçambique (now Mozambique).

vii. This advertised the country as a regional employment hub for the sub-continent. The famous tales and allure of the returning labourers lingers long in the minds of the growing up young men and women who then make an exodus into this country hoping to make a fortune from gainful employment.

With this endless list, market drivers and the amount of opportunities available in the country the need for immigration services is ever rising and in more demand.

e. Feasibility of the Business Project (Do -ability) –Value proposalThe individuals wishing to reside in South Africa face a lot of opportunities and these opportunities can only be tapped into if one is legally in this country and in possession of a valid permit to prove it. Because DHA offers temporary permits, the permits expire periodically and require extension and renewal. The queues are long and the process is very tiresome. Foreigners end up being frustrated and demoralised that they choose to rather pay upfront for some one to do the job professionally first time right.

The business shall always have a steady streamflow of clients requesting assistance. Obtaining the relevant residence permit poses a great challenge. Applicable laws, regulations and practice are complex and success is vital for the foreigner’s future life, seeking professional assistance is advisable. In choosing the permit category and the application procedure and in preparing the application, there are numerous pitfalls which can cause enormous delays and may jeopardise the application. Once an application has been rejected, obtaining a permit is a time-consuming exercise and may be impossible. Further, Departmental officials’ interpretation and application of the laws still lack transparency and consistency, which may lead to misunderstanding and frustration on the side of the applicant. With the help of a professional advisor, however, a foreigner’s immigration can be a pleasant and stressfree process.

f. Sustainability (Can the business continue as a going concern)BWJ Driving School operates using a carefully conceptualised BUSINESS MODEL that realises from the beginning that creating value requires infrastructure (at infrastructure cost), use of resources (at resource cost) to create services(at service cost) which are then sold (at service cost plus mark-up). The revenues always outweigh the costs thus

making it profitable to run the business. The volumes of incoming foreigners are high while business incomes are either growing and continuous.

Financial analysis of the business model reveals that the incomes (at 80% output capacity of per monthly) against customer orders (at 3 day payment period) will see monthly revenues exceeding monthly operating expenses.

BWJ Driving School Business Model © 2009

g. Market ShareMarket estimation has been on the basis of the immigration figures for Cape Town and for the `country as given by the DHA figuresConservative immigrant patterns showed an influx of about ±900 persons a day entering the country and not exitingOn average there were applications for permits of over 12 000 per monthAverage office clientele are 6 daily and 35 per week A benchmark consultation price of R3.700 per consultation job with 50% down payment to commence the job At weekly revenue of R 7,600 An estimated monthly revenue of R32.100

At 100% service capacity and 100% payments, BWJ Driving School will have a 1% market share.

Major industry players a)All Legal Practitioners never say no to a permit application, as this is low hanging fruit, b)Immigration Consultants c) Freelancers, working from home consultants and paralegals

are the typical businesses that compete for a slice of the cake.

h. Assessing

the feasibility Sales VolumesCash payments for services rendered are the lifeblood of our business. Cash revenues from Sales give BWJ Driving School the cash flow for business health. The sales transaction is the relationship of money payments in return for service rendered. Market entry There are no barriers to market entry except Legal requirements which can be fulfilled in many different ways such as employing Paralegal practitioners, lawyers or even operating under the ambit of a lawyer if not getting into partnership with a lawyer himself.Service differentiation Service differentiation is very difficult to achieve because of the level of specialisation of the Immigration Consultancy businesses and the type of clientele that they serve; but quicker turn around times, friendly and informative consultants, dress code and etiquette and multilingual communication all count in favour of the consultancy and does articulate service differentiationThe other differentials would be a vending machine, interior décor of the office and any artefacts which will exude an air of exuberance and success around the office environment.Sales Strategy We have effectively accessed the permits market and to this point we indeed reap the rewards. In the arena, we intend to establish ourselves by being a bestseller:100% success on first application, emergency applications and narrow deadlines, short turn around times, honesty with client’s monies, an impeccable reputation, etiquette, working the market and making demonstrations of what we do and customer quality preference will be our key retail value proposition. Sustainable Operability We place our best bet on the business as our money making machine and we are backed by on going study of the Immigration Act No 13 of 2002, (as amended by Act No 19 of 2004;) with its Immigration Regulations of 27 June 2005. Our proficiency and better insight as to how to unpack the policies gives us a good ground to enforce certain rules of law where need be, but most instances ordinary courtesy and politeness works better. The business always delivers revenues as per weekly Sales projections. Continuous uninterrupted operation will ensure we meet contractual obligations to our clients. We shall take Mutual and Federal Insurance as a Risk Mitigation Measure.

4. PROFIT PLANNINGThe relationship between the Incomes and the Cost of running the business is the profit. Profit is the main goal of BWJ Driving School and no matter how much Sales

ACN Consultants (Pty) Ltd Africa Immigration, Britannia Aidan K Movers S.A,Cape Immigration Campus, Cavendish Hauser, Global Migration SA, IBN Consulting,Imcosa Immigration & Consulting S A. Immigration Access, Immigration du Cap,

Intaglio Immigration& Financial ServicesInternational Immigration AllianceLinda Immigration Practioners,Maddies Immigration ServicesNewcor Immigration Services (Pty) LtdRelocation AfricaRelocation OnlineSA Migration ServicesSouthern Cross Alliance

and other Income we bring in, but if we do not make profit (gain) then we are losing; sooner we will be out of business.

a. Anticipated RevenuesMonthly revenues at full capacity gives output of 108 consultation sessions adds up to R79,550 per month and R954,600 per year

Sales Projections  Weekly Incomes R 7,500Monthly Incomes R 30,000Annual Incomes R 360,000

Marginal AnalysisFor our purpose, a margin is a value per unit i.e. per client consultation1. Our Service =Needs analysis Consultation+communicating of DHA procedures+form printing+form

completion+Submission of permit application+communication with client+follow up+collection+Packaging +delivery to client+Label+Branding

2. Direct Labour = Administration+Typing+Submission+ Lawyers fees3. Indirect Labour = Management+Secretary+Sales demonstration+Cleaning4. Direct Expenses =Electricity+Copy paper+Printer

Ink+Ventilation+Pesticides+Transport+Entertainment5. Indirect Expenses= Marketing+Office Administration+Tax+Bank Charges+Telkom+Internet

+Cellphone calls +Printer wear & tear+Office coffee/tea +Business travel

BWJ Driving School

Immigration Consulting-Profitability AnalysisCONFIDENTIAL

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R3,700 X1day

R3,700 X5days

R3,700 X21,5days

R3,700 X258days

Volumes (Consultation Sessions) 5 25 108 1300Marginal Revenue

income per session R1.750

R1.750 R18,500 R79,550 R954,600

Marginal Cost Cost of one session R 650

R 650 R 3,250 R13,000 R156,000

Marginal Profit Unit Profit per session

R1.100

R1.100 R 15,250 R66,550 R798,600

The healthy profit should be in the region of R1.100 per consultation at full capacity

Financial Accounts The Close Corporations Act, Income Tax Act, Insolvency Act, requires that proper Accounting Books be kept. It is recommended as a daily procedure and the books balanced every month by the 30th /31st. The balances are brought down the 1st day of the month. Final Accounts are done at the end of 6 months and maybe 12 months. They are known as Financials. This is history of past events (Historical Accounting).

Profit ProjectionsProfit Planning involves the Projections of Monthly Sales minus Monthly Expenses. It is these small contributions of small gains that give us the total year end profit.

Profitability Analysis

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The strategy for Gaining Profit is to increase the Profit Gap. The common two ways are:

1. Move Sales Curve higher e.g. by Increasing Price of our services 2. Move Expenses Curve lower e.g by

a. Service costs: improve process efficiency to reduce operation costs and minimising waste like ink and copy paper,

b. Quality improvement: do things perfectly the first time. A correction equals loss of opportunity to do the next task so avoid doing the same job twice.

c. Administration: A simple Quotation and Invoicing system saves time and money

d. Salaries: Work on time to avoid overtime paymentsBoth these methods assist the business to increase and plan for our profits.

b. Cost PlanningCarefully considering the running costs and looking at the marginal cost, what makes up every cost and what can we do better to reduce/avoid waste in the business. This we do so that we can lower operating the costs while we maintain revenues to increase the profit. Every additional benefit must be priced and charged to the customer without necessarily making it obvious. We clearly have a policy that states: we do not subsidise the customer but we give value for money for every service and we receive value for our efforts and use of our business resources. We have stringent service costing Policy.

c. Tax PlanningWe shall build into the cost of running the business a 28% provision for Tax so that after deducting all operating expenses the business realises a safe profit without having trouble with the Collector of Revenues at SARS.Value added Tax is not an issue to us as most big clients are VAT registered and VAT exempt so this does not affect our pricing or quotation. The only expense is paying and accounting for VAT which costs us administration time and costs us money to do VAT Accounting and bank charges when we make the bank transfers to SARS.

d. Budgetary Planning We shall always do budgetary planning so that we properly regulate the use of our finances and for the moneys spent, we shall set financial performance targets for the year in question. Variance analysis is a tool which we will use to monitor the monetary fluctuations in the value of our business. Our Profit and Loss Accounts, Cash Flow Statements and Management Accounts will be drawn from Month to Month to track changes and progress so that we have a sound Finance system. This will enable us to always have the working capital and cash flow we crucially need to survive.

e. Profitability Planning

For BWJ Driving School

a. Definition of Profit= Sales minus Expenses.b. Profitability is a measure of how the resources are fully utilised to make the most

profit for the business owner. c. We measure the efficiency of use of Capital. d. We are interested in the Return on Investment (ROI). e. We are interested whether the profits grow or decline (% growth in Profits). f. Increase the events that increase profitability-Gross Profit as a % Sales (GPP) g. Decrease the events that decrease profitability- Ratio of Debtors: Capital h. The cash invested must give us maximum profit. This profit maximization is our

Profitability. Total Capital employed in the business is our Input given by:Materials+Labour+Maintenance+Management is our operating expenses Throughput is Consultation+Research+Processing applications+customer liaison+Printing The approved permit printed and presented in a formal manner is our Output

We look at every rand spent; how much more it brings or what percentage it brings. We make sure that every rand does its job in the business, and everything for which a rand is spent does its job as well. A business can still make a profit but not work to the best of its potential. We will draw up work flowcharts our business activities and periodically inspect the processes for non-value adding activities, like duplication, waste, bad time management, theft, inadequacy of training and system bottlenecks that eat away our profits. Profitability is not luck but a carefully planned and structured event. The nuts and bolts of the profitability equation are all in the first picture and vision of the business at the beginning of every calendar year.

f. Financial Efficiency We shall have our accountants making final accounts and using Financial ratios and assisting us to be more efficient with our stock, payments, use of Financial resources so that the Financial input we make gives favourable Financial Outputs in return.Some of our tools for measurement will be The Return on Investment ROIReturn on Capital Employed ROCE.

5. RESOURCE PLANNING

Deployment of Manpower, Machines, Money, Materials, Management and our Methods(the Six M’s) shall be in a concerted effort to ensure coordinated teamwork with common goals and achievements.Decisions to use not more, not less, but optimum amounts of resources to suit seasonal markets and purposes will ensure we are well equipment for large demand and adequately prepared for slump seasons.We shall plan the quantities of the six M’s so that we can meet client orders in minimum time, we have staff when duty calls, we have materials and equipment to deliver continuous uninterrupted service, and we have working capital for smooth running and to meet our short term liabilities

a. Anticipated Markets Market Penetration Phase One -Cape Town

Input +Throughput =Output

Business owners and Spouses Business Investors and Spouses Retirees Foreign students and Spouses Refugees and Spouses Holiday makers Work seekers and Spouses Immediate family Consulates and Embassies

Market Penetration Phase Two-Western Cape Other areas in Western Province beyond Cape Town

Market Domination Phase Three National

b. Anticipated Processes

To be highly competitive, our processes are based on the Japanese Quality model:“Good quality, aggressive price strategy, high volumes, market domination”. To balance quality consistency, customer satisfaction and to continuous improvement.

Balance of Quality Consistency, Customer Satisfaction & Continuous Improvement

we have ISO 9001:2000 Standards detailing Policies, Procedures, Forms and Work Instructions so that every action and every decision in regard to the provision of the service is in line with service excellence.The Key Policy Areas are :

Customer Satisfaction

Continuous improvementQuality Consistency

1. Management Responsibility 2. Resource Management 3. Service Realization 4. Measurement, Analysis &

Improvement

c. Anticipated LabourBWJ Driving School will run a two shift working system similar to all Permit Assistance businesses. The morning shift will have initially two Immigration consultants. The length of each shift is 8 hours long. The off days are Sundays and then a casual worker is hired for 2 days per month.

The shuffling of consultants is to avoid fraud and misconduct due to consultants doing private jobs and sidetracking much needed revenues to themselves while using corporate resources and infrastructure.

The company has a strict Restraint of Trade Policy and will charge any perpetrator for fraudulent misconduct which will carry heavy internal disciplinary consequences and criminal charges will also be laid on the wrongdoer who will have to face fraud allegations.

We will continuously have a document to be read and signed to affirm and remind the individuals that they are under solemn commitment to refrain from professional malpractice and that they are still under restraint of trade. We shall make a non-competition payout to validate the restraint should the employee in question leave the employ after more than 12 months.

  Mon Tue Wed Thu Fri Sat Sun

Day Shift 8hours 8hours 8hours 8hours 8hours 8hoursAfternoon Shift 6hours

6hours 6hours 6hours 6hours 6hours

             

Day Shift Shift1 Shift1 Shift2 Shift2 Shift1 Shift1Afternoon Shift Shift2 Shift2 Shift1 Shift1 Shift2 Shift2

Day Shift Shift2 Shift1 Shift1 Shift2 Shift2 Shift1Afternoon Shift Shift1 Shift2 Shift2 Shift1 Shift1 Shift2

Day Shift Shift2 Shift2 Shift1 Shift1 Shift2 Shift2Afternoon Shift Shift1 Shift1 Shift2 Shift2 Shift1 Shift1

Day Shift Shift1 Shift2 Shift2 Shift1 Shift1 Shift2Afternoon Shift Shift2 Shift1 Shift1 Shift2 Shift2 Shift1

As part of our team we will have Immigration Consultants, Marketing Person, Legal Consultant, Admin Clerk work and a Messenger .

Organisation Chart for BWJ Driving School

Co-Directors

Immigration Consultant 1

Admin ClerkGirl Friday

Marketing Legal consultantImmigration Consultant 2

Messenger

Eric Akumanyin Antwi

Amanda Opisso

Week 1

Week 2

Week 3

Week 4

Roster change

d. Anticipated equipmentAt the present moment we shall utilise the following equipment for the business

i. 2 X Laptop computers;ii. 2 X Desktop computers iii. 1X Scan/copy/printer/fax machine,iv. Large Office Printer v. 5 X Office Desksvi. 5 X High-back Office chairsvii. 2 X Visitors Couchesviii. 1 X Flat screen monitor to run 90second Promos and ads about our services

and benefitsix. 3 X Office fansx. 1 X Water Coolerxi. 1 X Coffee makerxii. 1 X Microwave oven xiii. 1 X Pot plantxiv. 1 X Newspaper and magazine rackxv. 1 X Coat and Jacket Hanger

e. Capital Expenditure(Capex)

Capital expenditure is expected to be in the region of R180, 000 to cover for Purchase of additional equipment necessary for expansion and employment assistant immigration consultants, Fire Safety equipment, Ventilation and Air Conditioning, Physical (peripheral) Security, Fixtures and fittings for document storage.

f. Budgetary PlanningAnticipating costs and operating expenses required to yield the planned revenues and to fund the overall running of the firm both in short run and medium term is carefully planned using different methods of budgetary planning. Stock and other low value items we use a Activity Based Budgeting (ABB) approach and for other contingencies we shall use Zero Based Budgeting (ZBB).

We shall always do budgetary planning so that we properly regulate the use of our finances and for the moneys spent, we shall set financial performance targets for the year in question. Variance analysis is a tool which we will use to monitor the monetary fluctuations in the value of our business. Our Profit and Loss Accounts, Cash Flow Statements and Management Accounts will be drawn from Month to Month to track changes and progress so that we have a sound Finance system. This will enable us to always have the working capital and cash flow we crucially need to survive.

g. Return On InvestmentThe benchmark recognised by Standard bank on its own investments is anything above 25% return is viable. Our returns shall not go below the 25 points mark on Total Capital Employed.Every rand spent must give back at least an extra 25 cents after tax every 12 months. To cover for Taxes we aim to work on ±33% returns so that we may be able to derive healthy profits, pay back the loan amounts and harvest the yield while the economy remains favourable and supportive to the business model.

h. Resource utilisation EfficiencyThe International bench mark for world class standards is 80% efficiency and many local companies work efficiently above the benchmark and enjoy many incentives for high performance. Japanese management advocates for full utilisation of business operating hours, 100% labour utilisation, usage machine and equipment to maximum benefit of the BWJ Driving School.

6. OPERATIONS PLANNING

a. Supply factors These are production capacity and demand based factors that affect the volumes we can sell and produce. Demand and supply are called market forces. An increase in demand in the short run causes an increase in supply. Factors which can cause the demand to rise in our Industry

a. Annual spend on Learner and Driver’s licence applications b. Family influences: the need to be together often pull relatives and friends to RSAc. Media influences:(magazines, radio, television, cinema) influence the desire to come to SAd. The Colonialist Policies such as Witwatersrand Native Labour Act (WNLA) of 1937 saw the

procurement of African (so called native) Labour from British colonies like Besuthuland (now Botswana), Southern Rhodesia (now Zimbabwe), Northern Rhodesia (now Zambia), Nyasaland (now Malawi) and Moçambique (now Mozambique). Migration in which job seekers and refugees come into our country and settle in this city

e. The history and legacy of SA being a regional employment hub for Africa draws young men and women who then make an exodus into this country hoping to make a fortune from gainful employment.

f. Alienation due to hunger, disasters, war, dictatorship, oppression, human rights abuse military rule, tyranny and other political factors influence immigration to RSA

g. Better medical care causing natural population increase due to lower death ratesh. The pleasant climate fabled to cure Cecil John Rhodes which attracts holiday makers to RSAi. Affordable lifestyle and better standards of living attract business owners and investors to

stay in South Africaj. Business opportunities caused by the development and growth potential of the country

attracts foreign nationals to come and reside for a while in RSA k. Sound foreign policies and leadership in Africa and Latin America frontiers make it

convenient to come to SA to dwell, work, invest, own a business and study l. Better education, better discipline and lower cost on global comparison attracts the rich and

famous foreign nationals to enrol their children at our prestigious schools

Demand & Supply

There are changes and shifts in demand. A change in demand can be caused by an increase in price. A price increase causes a drop in the quantity demanded because fewer immigrant clients are prepared to pay for the service at the increased price. The availability of competitor services though typically inferior but cheaper for example the new and inexperienced in the industry affect the demand side of

Q1

P1

S2

D1

S1S2D1

S1

Po

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Price

Quantity

Shift

D2

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things. They have poor turnaround times, easily lose client documents, are unreliable when it comes to client monies, cannot easily make reimbursements for unsatisfactory work and clients may need to wait longer to receive their money. This may pose a cashflow difficulty to clients when the alternative solution needed to meet DHA deadlines is by quickly turning to a more professional immigration consultant firm. This implies starting the application process from the beginning and with the new system in place the turnaround time will double to more than 60 days. To be honest they are ineffective take much longer to deliver and the cost savings proves more expensive to the customer in the long run.

b. Value Chain Management

Supplier/Service provider - BWJ Driving School Business - Permit /VISA client relationship

A mutually beneficial supplier relationship is very essential. The business model shows our suppliers and service providers as business partners because they provide the essential equipment and services crucial to our business existence. Our competitive position against other Immigration Consultancy firms relies heavily on our ability to competitively source reliable service at value added prices from suppliers and service providers. Larger service providers like Telkom, and large suppliers like Hewlett Packard can deliver higher quality at lower cost or they may be monopolies who dominate the price setting. Smaller service providers like Vodacom and Neotel are always striving for growth in their market share and may be innovative in terms of new Service development and superior quality service that gives more returns per rand. New technology, better and cheaper materials and improved quality may be a competitive factor. Payment delays on monthly accounts, unreliable turnaround times and unannounced change of ownership by suppliers and service providers (e.g. mergers and acquisitions) and a failure to communicate intended price increases are the major problems affecting relationships between suppliers/service providers with businesses.The organization cannot succeed if it allows such hostile or uncooperative relationships with its suppliers/service providers.Since suppliers/service providers comprise an integral part of the business systems, which an organization needs to manage, creating a mutually cooperative relationship with suppliers will be a formally managed activity of our business. The supplier/service provider value proposition should demonstrate an understanding of the value chain or value adding process to which begins at the Supplier/service provider and ends with the Final Customer.

Business Partners BWJ Driving School ConsumerSupplier/ Service Provider

VA1 VA2 VA3

Value Add Stage 1 Value Add Stage 2 Value Add Stage 3

Value Add Stage 3

Customer Value

Dep. Home Affairs EskomVodacom ISPTelkomBankersCity of Cape TownStationersComputer SuppliesWebhostingLandlord Supplier Relationship

MarketingNeeds assessment Immigration AssistanceExplain DHA ProcessApplication formsAssist to completePhotocopy passportsSupporting documentCustomer care

SubmissionFollow upRectification of ErrorsOther DocumentsCustomer care

Receiving documentsClient liaisonPackagingInvoicingCash ReceiptCustomer care

Document hand over Sales Follow up After sales careReferrals Client informationSocial NetworkingCustomer care

The supplier needs to treat the customer as King. The customer’s customer as a king’s King. Suppliers should demonstrate this by giving margins that are profitable and sustainable for the survival and continuance of the business that further distributes the finished goods in a market of middlemen (wholesale and retail), sells against competitor brands and to immigrants in economic crisis.

c. Seasonal OpportunitiesMarketing philosophy is the way the business thinks about the a) the company Services in relation to the consumers. 1. Sales orientation-the sell, sell, sell and make the buyer buy approach! The problem more customer returns 2. Service orientation-make a Service then convince the clients it is the best thing to buy; the problem- a ‘hit and miss business’ can spend lots of money to produce what consumers dislike or a discontinued Service 3. Marketing orientation-research into the market types, particular details of consumer needs in each market type evaluate the spending potential on these needs and wants.

d. Capacity PlanningOur marketing philosophy is marketing orientation. This approach begins with the market, backward into business operations to create and mass produce the service package that best addresses specific requirements of a targeted immigrant market. BWJ Driving School thrives by providing the right service, of the right quality, to the right customers, at the right price, at the right place, at the right time, and in the right procedures.

We anticipate fluctuations in the markets as a result of political turbulence, new policies and incentives and changes in the exchange rates and by general hunch and intuitive intelligence.

We use desktop research to verify assumptions and ascertain by both qualitative and quantitative desk research to prove the validity and correctness of the premises made.Decisions are made to down scale or increase staff intake in order to cope with the imminent demand.

Market Intelligence will be the major driver of operations and this provide the impetus to marketing to attract the volumes of clients required to meet business targets. We are planning on 100% capacity and a lower Level variance of 80% in the case of changes in market forces.

e. Process & Work flowThe Process

The client is attracted to the business through adverts, referrals word of mouth selling, networking, internet adverts and the client then comes as a walk in or makes an appointment. On arrival the needs and problems are analysed through an interview process. A solution is drawn up based on the conclusion and experience of the immigration consultant. The consultant verifies that the client has legitimate travel or visitor documents. Next the Immigration consultant ascertains the need to make the application, and prices the service: at this point qualifying whether the client will be able to pay or not for assistance with permit or VISA application. On affirmative the Immigration consultant offers the client the relevant application forms and begins the consultancy process. The client is asked to produce all necessary documentation and copies are made. During the time the client is led through the Application process. The client is then asked to make a 50% down payment for the services to be rendered and the documents and letters and other paperwork ancillary to the application are type and attached. The documents are quality checked by two officials to ensure zero error. The client is notified of minimum delivery times and the business is indemnified from liability due to delays at Department of Home Affairs or other Embassy or Consulate. The next step is submission of the application(s).

The company then makes follow up liaison with the relevant authorities while awaiting the approval application(s).The other liaison is by sms to notify the client of any additional documents deemed necessary for the application process. On approval the documents are collected form the relevant office, checked for correctness, any query is made immediately within an hour and the documents returned within 24 hours for correction. If all is correct with the documents then the client is contacted to collect the documents and reminded to bring the outstanding balance with them the end product is a document of proof that the person in question has been approved to travel/reside in SA/study//work/run own business/invest in SA. The documents are packaged in a formal white envelope with the company name: BWJ Driving School and contact numbers and a receipt as proof of full payment. The client is thanked for doing business with BWJ Driving School and their hand warmly and assuringly shaken and they are asked to feel free to come back again anytime and to feel free to bring referral business.

The workflow Walk in /Appointment scheduling Reception and welcome, Waiting to be attended to Consultant Interview Affirmation of need for assistance and fees payable Application forms and down payment Document and ancillary paperwork Submission of Application Follow up and liaison with Department or Embassy Collection from Department or Embassy Client liaison Full payment and handover of document to client

f. Business Process Improvement

7. QUALITY MANAGEMENTManagement of Quality is a business strategy that we shall employ to eliminate waste save costs due to substandard output, customer returns and customer complaints that lead to loss of repeat business. BWJ Driving School believes in doing things right and doing the right things.

a. Service ExcellenceThe first aspect of quality management to begins with the suppliers/service providers. This is careful selection of the best machines, equipment and materials. Quality control of incoming materials makes sure that they meet our equipment specifications, our client expectations and operational requirements. Our machines are only as perfect as the materials we use. Otherwise, it will be garbage-in garbage-out and the Business sits with client documents we cannot use for applications or administrative work. Quality planning rests with us to ensure our Services meet customer requirements at competitive price. Our competitors should spend more money to match our standards. This means we can afford to price low and get customer preference before competitors. Quality will involve our processes, our machines and equipment, our finished Service, our price.We shall ensure quality in consultation, handling enquiries and customer care. We will invest in low cost, but effective packaging to avoid soiling, moisture and damage to documents.Quality saves operating costs, improves profit margins and keeps customer loyalty.

b. Client Specificationsc. Communication Techniquesd. Standard Documents and Formatse. Delivery Turn around timesf. Client Base

The following list are the Key Executives who are links to our client base

Democratic Republic of CongoGhana RepublicRepublic of ZimbabweUnited States EmbassyGerman EmbassyBritish High CommissionRepublic of Mozambique

Republic of AngolaRepublic of Tanzania Republic of SomaliaRepublic of UgandaRepublic of ZambiaRepublic of MalawiRepublic of Nigeria

OrdersWe have registered on a number of consulate databases list of Preferred Service Providers of Permit Application assistance. We have our BEE Verification Certificate, our Tax Clearance Certificate for Tender and for Good Standing, our VAT Registration in progress. We have made our value proposition to a number of organisations and have secured a few orders on start.

Our targets clients include are the nationals from these countries

g. Training & DevelopmentDHA offers Training at a fee every year and the training is easy to understand. Immigration Consultant training is transferable between trained employees. Customer care and Quality Management is readily available through Internal Programmes and SETA Accredited Providers of Education Training and Development.

h. Output and ProductivityOutput is set at 6 Consultation sessions per day which equates to 30 Consultation sessions per week. Client documents shall be filed in document cupboards ready for processing and submission or handover on collection. Time management shall require the workers to do a proper shift change, to have air time for their cell phone communications, and beepers for back up communication. If any member of staff is unable to come to work they should inform Management 2hours in advance and any failure to do so is a dismissible offence as it jeopardises customer service level agreements due to failure to deliver right quantities on time.Start and stop times shall be adhered to strictly. Operations shall be according to Procedure and in adherence to Policy by following Work Instruction (W.I).

i. Occupational Safety & HealthBWJ Driving School has a Occupational Safety & Health Policy in line with the Occupational Safety & Health Act and uses proper ventilation, Fire Protection Equipment and we shall have a Fire and safety representative trained in Fire fighting and First Aid Treatment and shall be adequately trained Safety Officers to deal with other disaster situations.

8. DEVELOPING A SALES STRATEGY

a. Sales Forecasting and PlanningMarket forecasts are high with the continent destabilised, immigrant numbers high and the imminence of electrically charged global politics bring greater prospects of business anticipated to be increased with more pressure to secure residence and asylum and so is consumer spending. The subsequent global spotlighting of South Africa and the reputation it has as a refugee destination will boost the Immigration permits industry even more. The word of mouth effect and the eyewitness tales about the weather and the people of this country to some will bring more visitors. More events happening in this country will see more influx into the country.

9. Seasonal opportunitySales are less sensitive to seasonal influences as is the demand is less variable due to seasons. Variability is expected as a result of more immigrants coming into our country with an intention to study, stay, work or start business hence increasing demand for the Permit Assistance Service.

b. Sales/Profit/Volume Analysis

c. Selling Strategy

d. The Product Lifecycle Strategies

Mixed Non-segmented Market(Heterogeneous Market)

Market Segmentation-Target Markets(Homogeneous needs)

Research to explore the unknown market and expose the assumptions about the market

Draw conclusions about findings & develop competitive Service/operation strategy

Develop a Service that gives maximum satisfaction of the needs of the target market

Test the Service against different consumers, different competitor brands, and stockists

Use a new Service strategy and launch the Service in the market

Generate customer awareness through campaigns and build customer loyalty

Eric’s Permit Marketing Process

The Product Lifecycle is a powerful tool which BWJ Driving School will use to analyse market behaviours in terms of customers buying behaviour, middlemen, competitor brands, competitor prices and to leverage around these in order to remain in the market and keep market share and Profits.

Our major strategies will variations of Skim Penetration-Strategy whereby we vary the different combinations of the amount of advertising and price (High/Low).

High Skimming Low Skimming Rapid Penetration Slow Penetration Strategies

e. Staffing and Motivation

“Marketing is our business attempt to anticipate market trends so that we integrate the business functions in a total effort to create a bundle of activities that ensure we gain maximum value form the current markets.”The business functions include and are not limited to Research, Operations, Selling, Public Relations, Customer Care, Distribution, Finance, Staffing and Administration.

Marketing Goals Marketing our Service involves the setting of marketing goals so that we can develop a series of actions that will enable us to meet our ultimate business objectives.Our main goal is to ensure that the sales team meets the sales objectives of the business. Sales mean pride and dignity of a business and this can be the most rewarding or most embarrassing issue about a business.

Our Business Objectives Market entry through better service offer to clients (efficient hassle free service) Shorter order to delivery times compared to competitors (simplified consultation and

application process) Sales Volumes through Team Selling, Consultative, Partnership Selling strategies Revenues through better debt collection-within 3 days of invoicing and delivery

R & D Introduction Growth Maturity Saturation Sales Decline Rejuvenation

Sales

Profits

Months and Years

Sa

les

in

Ra

nd

s

BWJ Driving School Product Lifecycle

Market share of 1% in line with our business capacity Market intelligence & CRM to keep in tune with clients’ thoughts, feelings, wants and

needs. 0% customer turnover and high Customer loyalty

9. VENTURE RISK ASSESSMENT OF THE LEARNER AND DRIVER’S LICENCE ASSISTANCE BUSINESS

Our successful strategy for managing business risks is built on a solid foundation of management-to-worker understanding each other, shared commitment by managers and workers, and top-down/bottom-up support.

I. To build that framework, our risk management strategy consists of three-parts

A risk glossary of terms. Processes for identifying, analyzing, planning, monitoring, and controlling risks. Identifying the tools and techniques that would support the framework.

The definition of a risk typically covers three areas: an event in the future, a potential threat, or a potential opportunity. The definition that we adopted was as follows:

II. Every risk consists of three components: An event A probability of occurrence An impact a. A risk event is a statistically possible future occurrence that may affect the

business for better or worse. It could be a wanted event, an opportunity with a potential positive impact, or an unwanted event or threat with a potential negative outcome. BWJ Driving School has to answer the question: What could happen, good or bad, to our venture?

b. Probability is the likelihood that this event will happen. We could express it as a number value between 1.0 (certain to happen) and 0 (impossible). We could also express it as a qualitative rating such as high, medium, or low. Frequently, we used quantitative and qualitative ratings interchangeably.

c.Impact is the consequence of the risk, if it occurred. We could express it as a qualitative rating such as high, medium, or low. We could also express it as a numerical measure between 0 (not serious) and 1.0 (disaster).

III. The major risks, to which the business is exposed, are set out below:

Credit risk; Country risk; Liquidity risk; Market risk; Operational risk;

Compliance risk; Taxation risk; Loss of insurance cover risk Reputational risk; Business risk.

A combination of these risks occurring concurrently would be the most likely cause of significant loss. The firm’s approach to managing risk on a holistic basis therefore ensures that risk types are not managed in isolation.

IV. Risk management approachThe firm’s approach to risk management is based on a well established management process and relies both on individual responsibility and collective oversight, supported by a reporting system. This approach balances strong management oversight at business level with independent consultancy structures.

V. Risk responsibilities and governance structureDue to the nature, simplicity and risk inherent of BWJ Driving School's activities, a simple risk management structure is in place to ensure adequate oversight.

Risk appetite and risk toleranceRisk appetite is the quantum of risk BWJ Driving School is willing to accept in the normal course of business in pursuit of its strategic and financial goals. Risk taken within appetite may give rise to expected losses, but these should be sufficiently more than expected earnings.Risk tolerance is an assessment of the maximum risk the firm is willing to sustain for short periods of time. Emphasises is on the downside of the risk distribution, and the firm’s capacity to absorb unexpected losses. The capacity for unexpected losses is dependent upon having sufficient capital and liquidity available to avoid insolvency. Risk tolerance typically provides an upper boundary for the group’s risk appetite.

a. Diplomatic RelationsDiplomatic relations may be easily strained due to a minor event and governments may go to war over a decision made irrationally or even without considering the impact or the consequences of the impact.

b. Competitor RetaliationThe immediate risk due to the competitors would be price wars, large suppliers forming cartels where there can be price fixing, more competitive Service strategies, cost efficiencies due to economies of scale, efficient distribution strategy that would lower competitor costs and hinder profitable sales, market entry, and generally tougher marketing strategy. Competitors can ignore minor activity form isolated small competitors but will definitely respond to the pack of wolves with a massive blow that would make marketing life uneasy.

c. Deregulation of Conditions

d. Internal Business Risk-Operations Threats Business Operations may be disrupted due to power supply problems, increase in power tariffs and surcharges for excess usage. New technology might supersede existing technologies at a rate faster than our breakeven point and repayment period. The processes may become too expensive to maintain at current prices.e. External Business Risk

Bad Publicity Bad publicity is one issue every business cannot avoid since it is impossible to control what comes from a human mouth and neither can anyone anticipate human reactions to improperly resolved business to client issues.TheftPilferage or theft from business is an issue that devastates the business progress by reducing profits little by little or one time as a major robbery.

Labour Action

Strikes and labour action are a prevalent event in nowadays in this country. Industry norms are now a serious matter as labourers are even manhandled by picketers if they attend work during strike action. Strikes may be in essential services and may hinder the fulfilment of client applications in any manner.VandalismVandals, arsonists, and saboteurs can deface and bring equipment and premises to bring business to a standstill.

f.Legislation and pressures of complianceImmigration legislation is ever changing because of abuse of the system, changes in global trends, diplomatic relations, changes in foreign policies, treaties and agreements reached, trade relations to accommodate our trade partners and international investors. Trends in the international relations cause drastic measures to be taken in the form of new policies to prevent bad practices. There are other pressures that are bound to surface that may not necessarily be about compliance, but may affect operations but may affect other ways of doing business.

10. Risk Mitigation Strategy Our risk management framework consisted of the following processes:

Risk management planning: Deciding how to approach and plan the risk management activities for identified business aspects.

Risk identification: Determining which risks might affect the business and documenting their characteristics

Risk analysis: Examining the risks in detail to determine the extent of the risks, how they relate to each other, and which are most relevant

Risk response planning: Developing procedures and techniques to enhance opportunities and reduce threats to the business’s objectives

Risk monitoring and control: Monitoring residual risks, identifying new risks, executing risk reduction plans, and evaluating their effectiveness throughout the project life cycle

Risk documentation and communication: Documenting and communicating risk information to facilitate the decision-making process

Risk Avoidance and Risk Planning A more effective investment has been in taking business insurance with Mutual

and Federal Insurance to cover the business-to-business liabilities. We have our own aggressive marketing strategies including our advanced

technologies in order to sustain Competitor Retaliation. We have tapped into social network markets I n order to be in tune with market

changes and changes in consumer behaviour. We have invested in open source software to run a cost effective Customer Relationship Management (CRM) system in order to keep track of customer patterns and to have the data readily available for immediate analysis at the push of a button.

We have sound Financial and Operations management policies for maximising our returns. Essentially twined together to the two policies is our loan repayment policy to ensure the equipment is paid up at the earliest date while keeping our liquidity. We aim to constantly upgrade our equipment to keep at pace with world class service delivery benchmarks of competitors. Threats to operations are usually customer , legislation, politically oriented.

By keeping ourselves online to www.sagov.org.za, attending seminars and workshops, liaising with the DTi, business networking and belonging to competitors associations we will keep ourselves informed of any changes in the legislation affecting our industry, our suppliers or the partners in our business model. We will attend Parliamentary Draft hearings and take part in the shaping of our economy so that our business response is prepared for the new and upcoming rather than have a panic attack every time new policies are implemented. We shall pursue highest cost effective compliance standards and be leaders rather than followers in compliance.

We have a public relations and a corporate social investment Programme to keep interactive relationship with our communities. Every business is prone to negative Publicity but a good public image masks many. We aim at a corporate image which will be favourable as best as we can to our clients and our markets.

We shall invest in security surveillance cameras with an offsite server for the peripheral security guard armed response 24hours a day, seven days a week.

There shall be panic buttons for immediate armed response. This will greatly reduce robberies and theft

Peripheral security will deter vandalism and our supervisors, closely monitor the workers to deter sabotage.

Loss of production and a subsequent loss of sales by business, inability to meet contractual obligations due to Labour Action will be met by our Insurance Cover.

11. FUTURE PATTERNSa. Web based Business

A successful e-Strategy for BWJ Driving School involves competence by the entrepreneurs to manipulate It based products dominantly used by web businesses. A quick course or training excursion for the two owner-managers will push them to a higher level of thinking that will take their business to a higher level of business. Agile use of technology is set to enter our markets as we are inevitably in a Web 2.0 generation. The need for survival has swung business focus on the hype cycle of Enterprise 2.0 technologies so that the business has the necessary network support data, business intelligence analytics and the relevant metrics and dashboards to indicate the course and state of business to enable intelligent decisions to be made more accurately, using the most valuable resource to the firm: it’s information about clients (CRM), markets, supplies, operational performance. The ability for clients to visit our website, download or communicate with us without using any Graphic user interface (GUI) based programme like Microsoft Outlook 2007/Outlook Express or their Gmail, Webmail , Yahoomail etc but simply complete their information on the spaces provided and press the send button with the result of an auto reply email or auto reply text message for South Africa mobile number beginning with “+27....... “ acknowledging their enquiry and promising a response as the soonest possible time. Macromedia flash player is another way of uploading information in a format which the client cannot easily copy and imitate. Information is presented more professionally and clearly and in format which is more dynamic than video and far more superior than conventional static Html, Xhtml. This guarantees more hits on the webpage.

b. Online Customer RegistrationsConsumers thrive on service quality, value for money and time saving. Anything be it a 3-D product, or a distinguishable service that bears a brand and logo of any company is judged alongside any brand the customers can get their hands on. These are customer feelings and transcend the realms of our daily lives without regard for place, money and time: typical to this is browsing a state of the art website of a blue chip company with a top notch e-Strategy only to return to a dull unprofessionally designed website, that is crowded, uninteractive, time and bandwidth wasting. Customers still make perceptual differentiation of the quality thresholds of each scenario whether this is done consciously or subconsciously. Bandwidth does not come cheap so the design of web based business processes should be designed around customer traits and behaviours.

c. Social Network Marketing The future technologies imply easier and speed of light communication that transfers moods sentiments and feelings globally to many individuals simultaneously and cumulatively within a short space of time. Mobile internet, more homes with broadband, cheaper internet, free public internet provided by government implies more social networking. This combined with high literacy levels implies more social awareness on Global and environmental issues. We are in the business that cuts trees to make paper and we are under the watchful eyes of the global public. Our proactive stand on consumer education, conservation, tree planting, and other social investment will be an investment in to some sort of grace period and that might come useful.

d. Virtual Customer ServicesMacromedia flash adds another dimension to web business in the Enterprise 2.0 age. Virtual customer services including avatars of our business premises, virtual shopping bags, and carts enable the clients and prospects to pick and choose the services they want and to add them to their online shopping carts, make online payments. Web interface through servers on an Xhtml platform using flash can enable a virtual customer care service. Intelligent database of common queries are mad in such a way that most queries are aligned with some common phrase or words and near correct responses are connected to the response so that text to speech is generated to answer

the online query. The high quality graphics for the virtual customer care figure emulates gesture, and other non verbal communication or body language. The high quality audio is crystal clear and closely resembling real human voice, while is still carries the soft innuendoes of a techno gadget which is what accentuates the excitement of it all.

e. Credit card paymentsSecure online payments is a version of Robert Kiyosaki’s pipeline building where the website brings money into the business bank account without much effort to physically influence customer purchase decisions. PayPal, SecurePay, and VeriSign are a few of the trusted brands. Hackers non the less are ingenious in their attempts to undermine the payment security over the web. One ingenious collaborative act was the joining together of more than 20 ’Playstation 3‘s’ to simulate the collisions made during a PayPal online credit card transaction. These unique collisions differentiate one credit card from a specific banker with another from the same banker or from different banker who may even be from another part of the globe. Sadly the hackers succeeded as they always finally do in the end.

f. Offshore BusinessOur own waters proffer limited opportunities for growth through limited scope of performance, slow paced pulse of business and markets in general and inadequate structures for consumer credit. The global village accessed through the World Wide Web opens doors to offshore business and offshore risk. The ability to count revenues in Euro, the British Pound and the American Dollar while sitting at our doorstep in our own hometown. g. International Laws

International Laws are very unpredictable, are not subject to debate by foreign countries are the forte and domain of the Sovereign nation, republic, Royal Kingdom or monarchy. Their change affects normal patterns, established methods and procedures. Our own internal processes will need to be changed to customise our business in adaptation to this changed environment.

12. TECHNOLOGY

a. Equipment and peripheral devicesTechnological equipment , peripheral devices and other artefacts play a huge role firstly to demonstrate the strength and success of the business through the assets we have amassed due to that service that we have given in the past. It also assures the client of quality and professionalism and portrays our environment as a classy and competitive place of business worthy to be associated with.

b. Enterprise SolutionsMore and more smaller businesses are investing in enterprise softwares either through government grants or through OpenSource software that is wittingly customised to suit the business system of doing things. This brings with it the benefit of system based standards like ISO 9001:2008 for all documents and procedures .

c. IT SecurityInformation security and data integrity, are the key critical issues of doing business. Information is a valuable resource, its significance is priceless and its compromise a huge embarrassment and maybe even loss of reputation (goodwill). In International business where the adoption of the Sarbanes Oxley Act of the USA in a must, loss of information may be a fraudulent excuse to eliminate criminal evidence of fraud and illegal activities within the business. Under normal circumstances data is archived in the sequence of grandfather, father, son generations of how old information should be kept. Any deletion or loss due to virus attacks should be detected and prevented.d. Networking

The computers should be linked as a single LAN Network which is connected to one database. Thi will enable data management, real time processing and automatic updates, and better sharing of files folders and information.

e. Remote Access & Unified CommunicationRemote access is a latest trend that enhances business efficiency even when staff and management is off duty, due to sickness, by leave of absence, AWOL which may include being out of town or out of the country.

13. INNOVATIONa. New Service ideasNew services and ideas are either through deliberate research and development attempts, company innovation strategy which may involve innovation forums, team incentive and prizes for innovation and creativity. Customers may even bring new ideas into the business and apporproiate finders fees must be carefully structured to reward the clients for their income generating or cost saving suggestions.

b. New market developmentThe same principles of innovation apply in new markets anu test marketing and product testing policies must be justifies and qualified before huge expenditure can be plunged into uncertain markets.c. Green BusinessEvery responsible business is gearing towards global sustainability.Critical and burning issues for every CEO all around the globe is The energy efficiency on electricity, and fossil fuels as consumed by their business modelEnvironment friendly-can use recycled paperVersatility of machines and due to their capability to use biodegradable materials, Extended service warranty High service capacity and longer service runs on minimum maintenance and serviceUser friendly, means fewer reprints, lesser and inexpensive training Service of high grade and quality Low risk in terms of Occupational Health and Safety

d. Financial

Cost Model Profit Model Revenue Model

Daily consultations

Days

Monthly consultations

Per Sesion

Golden Harvest Profits

Green Revenues

Red Costs

e. Finance Strategy The business strategy is to work on a net Return on Investment of above 25%. The Return on Investment should take into consideration Cost of Capital which is Interest ±11.5% per annum Corporate Taxation of 28%

Continual monitoring of financial performance through Variance analysis and reporting of changes in Cash Inflows and Cash Outflows by means of Management Accounts will enable and encourage consistent monitoring.Simplicity and clarity will enable quick referencing, ease of reading and participative involvement in the business affairs on a daily basis.

The loan repayment shall be entirely from the business and this shall be insured against any unforeseen events including sickness and disability. The loan Strategy is to repay the loan in a shorter period in order to reap the benefits of early payment that comes in the form of low total interest paid.