Background

Engineer Gaudencio Inductivo is the manager of the

Maintenance Department until he retired in 1995. He has joined
the Motorbus Company since it started operation in 1989. At
start, ten buses began plying the Manila-Isabella route. A
maintenance unit was put up at Manila Terminal and Isabella
Terminal. Each unit has a full-time mechanic and one assistant.

The maintenance units were operating normally until 40 new

buses were procured by the company in 1993. Mechanics began
complaining to quit their job unless additional mechanics are
hired. By the end of the year, each unit has reached 5 mechanics
and 5 assistants.

Even with current developments, the old method of purchasing

was not improved. Purchase requests and delays in the delivery of
needed parts started to pile up.

The VP for operations immediately sent a note to Engr.

Inductivo ordering that the problems should be resolved
immediately. The next day, Engineer Gaudencio has retired from
being the Manager of the Maintenance Department in 1995.

In his retirement, Engineer Inductivo has left his position

and the problem and in the hands of Engineer Hermogenes Ancheta.

Engineer Ancheta has joined the Motorbus Company after he

passed the board exam in 1993. Now, he is promoted from being the
Assistant Manager to Manager of the Maintenance Department.

Engineer Ancheta first inspect the storage room for parts

and found out that there is an uneven supply of parts. Some were
of excessive quantities and inadequately stocked.

At the end of the day, Engineer Ancheta was informed by the

VP of operations that there will be an additional 50 new buses
within 30 days. A total of about 100 buses will be servicing the
various routes assigned to Motorbus Company by the next month.
Problem Statement
Engineer Ancheta is now mulling over how he will make the
operations of his department as effiecient and effective as
possible.

Assumptions
You have no doubt heard the expression, Failing to plan is
planning to fail.

Many entrepreneurs write a business plan only when they need

to secure start-up financing. However, your plan is far more than
a document for banks and investors to read; its an invaluable
roadmap for launching and growing your business.

In order to put your business concept on paper, you need to

think through and research the many factors that are needed to
make sure your business is a success. With a plan, not only can
you spot potential weaknesses, opportunities and threats, your
plan can help you make informed decisions about your venture
before you commit yourself legally or financially.

A business plan is like a blueprint. It tells exactly what

youre working to achieve, but the end result happens only if you
hammer it into reality. Idealism must meet realism.

A blueprint for a new house guides every construction step

down to a fraction of an inch. A business plan is more of a
framework for success. It helps you organize your company around
your mission and vision, your goals and objectives, and the
strategy youve outlined to achieve success. It provides
milestones along the way to measure your progress.

Plus, it keeps everyone on the same page and working toward

the same positive outcomes. These sections outline how to
organize your company, assign duties and responsibilities to
employees, and set up systems and procedures based on your
business plan. By aligning your company and your business plan,
youll stand the best chance of achieving your goals and
objectives.
 The first step in putting your plan to work is to configure
your company to reflect your plan in every part of your
organization, from the structure of your management team to the
procedures you put in place to make your company work. As you
shape your organization, pay particular attention to these three
parts of your plan:

Company Description: Look at your companys capabilities and

resources and then develop your organization fortify strengths
and overcome weaknesses.

Company Strategy: Build programs and systems that support your

plan for reaching, serving, and satisfying your customers.

Action Plan: Detail all the steps necessary to implement your

business plan, including the priorities and timelines youll
follow as you make it all happen.

Construct a strategic plan in terms of the purchasing

method, financial aspects and inventory. In order to construct
strategic plan, it must contain the following:

1. Company or Corporate Mission.

As a transportation company, Motorbus Company envision

to service clients ensuring comfort and safety in
accordance to the clients financial capabilities and
companys rules and regulation.

2. Objectives or Goals.

As a business and a transportation company, Motorbus

Company aspire to offer an optimum quality service
possible to increase market existence and profit
results.

3. Strategies.

To be able to achieve and put the companys mission and

goals in to action, a planned strategy must be
constructed.

a. Gather as much information as possible.

 b. Develop multiple sources of information.
c. Involve others in planning process.

You can alter your companys structure at some point down

the road, especially if your business is growing rapidly,
for example, or your business environment has changed
significantly. In fact, maintaining the flexibility to
reshape your business has become one of the keys to success
in todays fast-changing business world.

Recommendation
Engineer Ancheta must therefore construct a business plan
based on the above information and guidelines. After constructing
it, he must put the paperwork into reality. He must hire someone
responsible for the inventory of the parts needed and items
already purchased and stocked in the storage room. This will
avoid the uneven storage of the items. Plus he, himself must
check if the requested items are going to be used in the
repairment of the buses. He can negotiate with the suppliers of
the product needed to perform a bidding process in purchasing the
needed items.

Reference:
Laurentian Bank of Canada, 2007. All rights reserved. Organize Your Company Around
Your Business Plan
By Steven D. Peterson, Peter E. Jaret, and Barbara Findlay Schenk from Business Plans
Kit For Dummies, 4th Edition