Regional Public Transportation

Business Plan: Renewable Energy Bus System

1.0 EXECUTIVE SUMMARY Situation: The need for a rural public transit system in area Kota Kinabalu, Sabah has been identified frequently by community groups and local businesses, through formal research and by citizen participation at public meetings. 1.1 Summary of Business Idea From the situation earlier, our business idea is we are going to provide transportation services to our valued customers which focusing environmental friendly type of transportation. Our business idea is generated from the discussion of all the partners. We are taking some appoarches to find the main problems faced by private operators that providing this type of services. Firstly, we found that due to the increasing of global fuel prices. This is very much linked to the increasing of ticket bus prices. Other factor that may relate is the capacity of the bus (space). In addition, people nowadays prefer more to use taxi limousine compare to bus because its more comfortable and convenience. By considering these problems and the new concept of our ideas that we bring, we believe that fast, comfortable, user friendly, environmental friendly and convenience concepts that we are applying in our service will attract customers. This will bring a good reputation of our company, as the increasing in term of profit. In order to achieve these goals, we need to take some actions to make it comes true. For example, we need set certain appropriate prices for our products that are affordable especially the students. 1.2 The Uniqueness of Products/Service Offered Environmental and user friendly (Bus using renewable energy) Safe Air conditioned bus Ticket price is affordable, accessible and efficient for all people

1.3 Type of Business Our transportation services company depends highly on the health of the global economy, which affects manufacturing output, commodity trade, consumer and business spending, and business and leisure travel activity. Because many costs are fixed, the profitability of a company is determined by efficient operations and on favourable fuel and labour costs. Large companies enjoy economies of scale in purchasing and the ability to provide more extensive services. Small companies like ours can compete by serving local or regional areas.

In order to implement our project, the first thing we need is financial capital. Our type of business is partnership business consists of 10 shareholders that contribute same amount of capitals that is RM 50,000. Therefore, our overall companys capital is RM 500,000. As we discussed before, our company is a company that provide transportation services. Therefore, the amount of money collected between the shareholders enough to buy a few buses, build a small headquarters building, to build a number of terminals buses and to pay other expenses such as labour cost, oil grease and lubricant. 1.4 Target Market and Customers A specific group of consumers at which a company aims its products and services or the market segments that are called target markets. The public bus system will have widespread benefit for local business, senior citizens, students, tourists, and rural families currently lacking affordable transportation. Expected outcomes include economic growth and the improved physical, mental and social status of residents. Access to affordable transportation is a key factor in attracting families to move to our communities, and is a primary force in retaining residents, especially young families, youth, and senior citizens within this rural region. 1.5 Competitive Advantage Our service at its best of quality Fast, efficient, safe and reliable service between locations Our transportation service using renewable energy to operate Purchasing buses with latest technology Food services in the buses

1.6 List of Management Team Director: Jessica Aaron Assistant Director: Ragu A/L Pathmanathan Finance Manager: Chui Pik Ling Marketing Manager: Jiijiy Bin Domin Strategy Manager: Daniel Lim Chen Wei Operation Manager: Chong Yee Won Sales Manager: Joanna Chee Woan Teen Human Resources Manager: Hirwani Sablee Service Manager: So Eu Jin Special Task Manager: Lieu Siaw Sang

1.7 Operation Management / Marketing Management Our operation management is consists the way we keep the buses in the very good condition. Our company will hire a number of mechanics to do the maintainance. The process in transforming the resources into final products and also the management process that we going to apply to make sure that our business activities is done smoothly. In our companys marketing management, we are using the marketing mix strategy (4 Ps). We discuss about the characteristic of our companys product, our products prices, the location of our business, and the promotion strategy that we will be doing. In order to increase the selling ticket, the marketing management has taking some actions such as doing advertisement on television. 1.8 Finance Management Our companys capital through share by the partners. Each of our shareholders contributes RM 50,000 as the companys starting and operating capitals. Our companys overall capitals are RM 500,000. Our companys profit or loss will be divided equally.

1.9 Implementation Strategies In our companys marketing management, we are using the market penetration strategy (because our company is producing a new concept of business which is the user friendly transportation concept), marketing mix strategies (consists of product, prices, location of business, distribution channel and promotion) and as well as the strength, weakness, opportunities and threat (SWOT) analysis strategy.

2.0 COMPANYS BACKGROUND Lowcountry Regional Transportation Authority (PALMETTO BREEZE) is the public transit provider in the region. PALMETTO BREEZE was preceded by the Jesselton Transportation Authority, which was formed in around 1978 to provide transit service in Kota Kinabalu territory. In 1984, the Authority was expanded to include Penampang, Tuarans area with service continuing to focus on transporting residents of more rural areas. To reflect the addition of these counties, the Authoritys name was changed to Lowcountry Regional Transportation Authority (PALMETTO BREEZE). Demand response service was initiated by PALMETTO BREEZE in 1997 to serve some Kota Kinabalu County destinations. 2.1 Vision Be the best nationwide transporter for everyone. 2.2 Mission Our main misson is to provide total customer satisfication. We will achieve this through developing people services in the high quality. 2.3 Motto "EXPECT MORE. PAY LESS." 2.4 Objective Cooperate objectives that are defend our care, achieve 88% profit in the 2 years and position for growth. 2.5 Location of Business

Companys Headquarters: PALMETTO BREEZE Sdn. Bhd., Lot 25, Jalan Lintas Square, 87050 Kota Kinabalu.

Companys Main Terminal: Terminal Bas Besar, Jalan Asia City, 87050 Kota Kinabalu. 2.6 Operational Time The initial core route proposed is the loop connecting Kota Kinabalu, Penampang, Tuaran and Putatan. Two buses would operate Monday through Saturday on a set schedule, stopping at established locations and running five (5) times per day in both directions along this route. 2.7 Flexibility The bus service is feasible at this time because: More housing subdivisions add to congestion; increased densities make public transit more feasible. Charactheristic of the buses that using renewable energy may cut out the cost to buy the highcost fuel for the machine. Changing population: older, different ethnic mix, newcomers from cities with transit creates opportunities. Increased number of choice riders that have transportation options (including visitors). Increased number of young people that need transportation after school and during the summer. Increased number or size of commercial and medical centers provides transit hubs.

2.8 Company Analysis and Competition We know that this business is highly competitive due to many of others company are doing the same business too. Some of the companies are giving special discount for certain ages, lucky draws and so on to attract more customers using their bus services. However, we chose to do this business because we believe in our capability in providing the best products and service to all the consumers. Analysis about the strength, weakness, opportunity and threat of our business. Analysis the micro and macro environment of the business that influences our business. Competitive advantages: Presently, there are numerous competitions with our company, but we differentiated our products by using the healthy food concepts. The important matter with rivals: Constitute the other business offer same service or thing alternate to costumer target market. A list about major competitor being in business. Need to know their strength and weaknesses

2.9 Competitive Advantage The competitive advantages that our companys products have compared to other companys products are: New concept of transportation style. Have more benefits to customer. Transportation facilities in providing convenience to customers. Friendly service to customers and improve the services in accordance with customer expectations. Increase the comfort and safety of customers

3.0 MANAGEMENT TEAM Managment team includes the members which make an intergral unit and govern the team to deliver the concept of the leader effectiveness in the organization. In most of the large organizations, there are proper management teams. Members of the management teams are the strategic thinkers, having diverse experience in various fields, show leadership attributes and are committed for continuous learning. Management teams bring value in the organization by getting the best from their people and setting the right directions. 3.1 Management Profile and Leadership Competencies POSITION Director PROFILE Director is a leader in the company. She leads the company in fulfilling the companys goals. She is the guider so that all the operation of the business is going on smoothly. Assistant Director The job of asst. director is as same as the director. He will replace the director if the director is not around. He also will help the director in the running the companys strategic planning. Finance Manager The manager involve in controlling and guiding the companys financial health. He/she also will do the financial report on the business operation. Marketing Manager The manager will apply the marketing strategy on the companys operation such as setting the price, promotion, the location. Distribution channel and the quality and quantity of products itself. Operation Manager The manager is responsible throughout the operation of business. She also responsible in monitoring the operation and the flow of selling process. Sales Manager The manager is responsible in handling with the sales of the business. He/she also need to do some publicity of the companys products. Human Resources (HR) Manager Service Manager Strategy Manager The manager concerning in the service during the process of selling tickets. The manager that responsible in creating and applying strategic strategy in The manager that manage the hiring new worker.

the business such as marketing strategy and the SWOT analysis. Special Task Manager The manager in charge with the work of helping other managers in their works.

3.2 Organizational chart

DIRECTOR Jessica Aaron

ASST. DIRECTOR Ragu

FINANCE Cha Pik Ling

MARKETING Jijiy B. Domin STRATEGY Daniel Lim Chen Wei

OPERATION Yee Won

SERVICE So Eu Jin

SALES Joanna

SPECIAL TASK Lieu Siaw Sang

H.R Hirwani