Financial Break-Even targets, Product Mix & Operational/HR capabilities of Boppity Hoppity Logistics

Assignment Taken

Financial-Break Even Targets

Case 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.

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