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1. Develop and present a detailed business plan for new engineering ventures, including; financial, supply chain, development team, marketing and production.

2. Analyse the roles of engineers in creating productive, economic, successful venture in a variety of engineering projects.

3. Demonstrate evidence of enhanced personal knowledge, skills and competencies relevant to the management of engineering entrepreneurship
 

Company Overview

 The new business which is going to be introduced in the market is related to a consulting firm that will offer solutions to structural engineering services. This business will be operated under the name “Tetra Tech Limited”. This newly started company will offer professionalism in engineering designs for their clients. They assist the customers to plan, control and design for business, residential and commercial type of buildings. The main concentration of business will be on the general population division within remote groups crosswise Australia.

Tetra Tech Limited will be a company with limited liability. The organisation will be owned privately, and its purposes will be to offer inventive and efficient plan services by keeping up cutting edge outline innovation. To remain competitive in the market, the organisation will address customer issues on tasks of all sizes and also handle special projects for design.

In the initial years, business will need a corporate office that will be set up in Melbourne, keeping in mind the end goal to lessen start-up charges. The workplace space is assessed to be 150 square feet, however; the business will introduce a committed fax line and additionally a fast Internet association. An intelligent site will likewise be produced which will fill in as a promoting instrument. The domain name of "tetratech.com" has just been saved to operate website smoothly. 

Tetra Tech Ltd. will significantly offer complete services for structural engineering. However, business will concentrate on structures with three areas 'Utilize and Occupancies': housing, business and industrial. The organization is scheme oriented where each task includes distinctive classifications such as redesigns, restoration, increments, new development. The main services of business are described hereunder:

 Project Consulting: The main service is project counselling that will be offered to   Client Company in a way to show company’s expertise in different domains.  There will be cost associated with every project that will be called as “Proposal costs”.

Forensic Investigations: The Forensic investigation services will be offered to serve the public and private sector market. However, the company will specifically focus on troubleshooting buildings where there is huge damage has occurred. The reports offered by company will outline the causes of damages and failure and will suggest remedial action with budgeting solutions

Project Management:  Furthermore, the business will provide special project management services including, identification of client needs, designing bid documents, biding analysis, review of the construction plan, verification and certification of payment, warranty inspections etc. for different types of products like as new amenities, renovations, maintenance, and restructuring.

Services Offered

Resolution of disputes:  The corporate entity will draw a distractive range of construction and contract administration to offer services for resolution of disputes.  This area of services will be supported by forensic engineering services as it will require assessing cause as well as remedies of failures.

Restoration Engineering: The next in line services that will be offered to the organisation will be condition survey, construction review and design, which will be specifically aimed at repairing buildings.

Home Inspections:  Under the service of home inspection, the company will offer potential homeowners with the lending services related to residential home. These services will include framing, repairing requirement, assessing mechanical systems, electrical systems as well as general protection. Both types of reports will be offered to the clients such as photographic record as well as written report. 

The new startup will move back and forth to qualified experts to add outline and draft services through the computer (CADD), claim to fame association plans, and examine the support service system that are regions which business can bear to contract out without taking a chance with the centre esteems offered to the customers.

The business entity is aimed at encouraging cooperations with its special offerings of auxiliary components, including stuck covered wood, pre-built measurement stumble trusses, designed timber, and steel to encourage this methodology.

From the second year of operations, the company is planning to secure retail existence in Sydney. At this stage, it will look for qualified students of engineering from north to give them the experience of the work in an auxiliary designing office condition.

Tetra Tech Limited will keep up the total and exhaustive Windows® based investigation instruments for the auxiliary outline. An incorporated plan and tool of drafting allows a few assessments to be made on a structure at negligible cost. Tetra Tech Limited will keep up an Internet site all complete up with the document exchange convention abilities. Following, its aggressive strategies of training its employees into different engineering domain, the company will enhances its market reach to quality control and assurance that will be specifically served to the needs of the welding industry, wherein company will ensure with a certified firms and their qualified welders to execute specific welds on the basis of requirements of clients.

The organisation will maintain good relations with customers while offering them a toll-free number to offer 24 hours a day services; this will be a competitive strategy of business to capture a huge market share in the industry. The organisation is going to deal with a highly competitive market, therefore; the business is aimed to give personal attention to elegant designs so that the client expectations can be exceeded.  However, under its unique business strategies m the corporation will offer a guarantee to meet environmental objectives and work with clients budget. 

Market Analysis

The engineering sector has hired millions of individuals and concentrates on the various types of markets such as industrial, mechanical, civil and electrical. Engineering is the most important industry for the development of the nation’s economy. The technology up gradation has mostly contributed to the industry as well as helped many innovative minds (Engineering Market Update Australia, 2018).

Tetra Tech Ltd. will focus on outmoded Architect/Engineering (A/E) contracts. The owner will usually contract the A/E to perform planning and design services. These design services include preparation of plans, specifications, and estimates.

According to the industry analysis, it has been noted that construction services are restricted to irregular field visits, and there are various requirements of contract administration.  The data from the engineering consulting industry indicates that there are four main types of projects along with the total design fees are distributed. These services are Mechanical Design (15%), Structural Design (10%), Architecture Design (65%), and Electrical Design (10%).

Tetra Tec Limited has significantly assessed the important clients from architectural/engineering firms who are in need of structural engineering services (Engineering Market Update Australia, 2018).

Within Australia, there is a high level of activities relating to building services that are being driven by an enormous range of commercial and housing development markets. Therefore the market for structural engineering services is continuously growing. There is a huge need in the market for focus and cutting-edge engineering solutions within three main sectors like as commercial, business and housing sectors.

The profits of the Engineering Services industry have developed moderately in the past years. The growth of the revenues has been greatly limited by weakening the expenditure on the capital on the personal construction of non-residency. This was because of the falling price of commodities and also the completion of the important projects of LNG. It has also lessened the investment from resources and mining companies.  On the other side, it has been noted that the trend in Australian government is rising about outsourcing major infrastructure projects. However, there is a significant move towards increasing public sector capital expenditure which is further supported by the growing industry demand over the past few years.  According to the recent data, the revenue of the industry has been expected to increase annually by 1.6% in next year i.e. 2017-18. The revenues of the industry will significantly be reached to $40.4 billion. Thus, there is a subdued growth of 0.6% over the last year (Heaton, 2017).

Quality Assurance and Control Program

Industry information & Market dimension

Revenue

$40bn

Annual growth

1.6%

Employment

132,404 people

Business

33,862

Tetra Tech Limited proposes their customer's predominant services along with the state of art analysis and outline abilities.  The company recommends three-dimensional perception services to lessen the likelihood of spatial clashes with structural components and other designing controls. In the examination, our rivals depend for the most part on two-dimensional models.

The business is going to actualise a quality confirmation and control program for all scheme attempted. This record will serve to concentrate on the gauges which will be accomplished and also the methods for estimating execution.

A precise way of arranging and recovering a library of auxiliary components and gatherings will be executed. Slide libraries will be accessible from an instrument bar inside Auto CADD for speedy access. To gain competitive advantage the business will embrace the layering gauges of the American Institute of Architects (AIA). In the examination, our rivals don't have a coordinated database.

Tetra Tech Limited will embrace the recording frameworks created by the AIA. All undertaking data will be followed utilising a coordinated database administration framework. The greater part of our business instruments will be the year 2000 acquiescent.

A pamphlet framework, which covers an expansive range of the objective marketplace fragment, will be produced at the time of underlying year of operations. This framework will be particular and incorporate many 'standard' segments which might be altered to suit particular needs. Pamphlet additions will be kept up as distinct sheets to encourage their get together in any conventional circumstances.

Our site will be created in the initial operational years and incorporate a portrayal of services, the territories which we intend to serve, contact data, a rundown of agent ventures, and a concise memoir of proprietors. A domain name has just been saved and soon will be registered with the website of https://www.tetratech.com

A sequence of the pattern will be created for plan proposals. The format for all proposals will include:

  • Cover letter.
  • The range of services for each plan.
  • Payment (if demanded).
  • Entity's experience to offer services.
  • Plan Team (describes tasks and qualifications of each authorized individual).
  • Beliefs of the design approach.
  • Significant experience.
  • Plan to offer services.

Tetra Tech Limited offers the subsequent competitive border that will include following points:

  • State-of-the-art modelling, drawing, examination, and drafting ability.
  • Excellence control and declaration program.
  • An Internet website (HTTP:www.Tetra Tech limited.com, and e-mail, info @Tetra Tech limited.com).  

The most imperative customers will be set up compositional and designing company who require basic building and engineering services. The market for designing services might be compressed with the accompanying gatherings:

  • Set up Architectural and Engineering Company:
  • Regional and Federal Legislative Section
  • Law Offices
  • Temporary workers
  • Civil Governments
  • Concealed Individuals:
  • Brokers

The probable chart of the market and the analysis of market table depend on rates which each of these gatherings could add to the administrations advertised. This way of depicting the impending marketplace is highly suitable for this kind of trade. By considering this fact it can be said that, the established engineering businesses represent 65% of the prospective market with alternate members asserting adjust in littler extents. 

Recording Systems

The pricing of projects will be as per billing rates which are going to be addressed at a variable rate.  The organisation is going to consult at three main levels so it easy to manage price quotes level. It is easy for a corporation to set prices from a low range to higher range. In both the sections, the prices are too low and are too high (Engineering Market Update Australia, 2018). The clients in the industry need to pay substantial fees against the best quality professional advice.   However, the nature of billing is too sensitive, and the clients are more likely to offer the job starts at $20K and end this cost up to $30K because the business is going to overrun, however for an extraordinary quality, the company is going to offer $ $35K and more

The clients tend to compare the services rarely however they can compare directly, and they always look for two or more possible providers of a significant project. More often than ever, word-of-mouth offers good recommendations to clients for the best services in the market m. Therefore, the new business will aim to develop goodwill in the market by offering the quality of services. The advertisements will help the business to gain the attention of the client from the intensely competitive market.

 The foremost important element of the corporation is general competition, but, it is what to keep clients happy to gain repeat business. Therefore, it is worthy to make huge concessions in a single project to maintain good client relationship that will force them to ask for services again and again.

For sales promotion, we will extensively make use of internet services (Kotler, 2015). We will accomplish this through a well organized direct mail services along with a well-directed email campaign. The main aim of this strategy will be to create awareness about the services we are offering to all the major market players. Though we have a limited budget for advertising these funds will be used wisely to promote sponsored the event in the community. As a part of our promotional strategy, we will also provide technical services to the organizations working at not for organization at a much-discounted rate. In some remote areas, we will approach the principles of local elementary school for offering them a counsellor for opting structural engineering as their career. The management team of Tetra Tech Limited will also reach in the Northwest Territories for business incentive policy. This policy will be directed towards the firms which are located in the area and provide them with incentives regarding the evaluation of services.

Competitive Advantage

Tetra Tech Ltd will also offer competitive and reasonable options for recognized engineering and architectural firms in located in Yellowknife requiring services of engineering sub-consultant. The projects may be handed over directly to Tetra Tech Limited, or they can even delegate to the arrangements that are made to complement and assist their in-house staff. (Rothaermel, 2016)

The consulting price of the services will be based on an hourly basis on established levels that will be dictated by the milestones of the project schedules. We have assigned the hourly price at the rate of $80/hr. For the drafting services, the rate is decided at $40/hr. These values are decided by rate prevailing in the market (Nagle, Hogan and Zale, 2016). We have made use of conservative unit rate to remain competitive in the market. 

According to Kowalkowski (2017), for gaining success in the consulting industry, it is important to focus on providing quality services to the clients that result in repeated business for the Company. By considering this fact; business will ignore the risk of buying project where the remuneration is very less than the scope of work. If the clients have questions regarding the cost of the project, we will explain them the benefits of our proposal that reflect the tasks which will be performed. The services will be decided according to the budget of the project. The rates for billing will be kept non-negotiable except for the not for profit organization.

The business herewith is going to deal with a services industry. Therefore, it is needed to have effective human resources which must be qualified enough in their task so that business can get competitive advantages. Within the first year of business, the business will open new vacancies with across most categories within the engineering sectors. Our business will be operated with the services of engineers who can meet project demand and add to customer’s service expectations. The person must be having some experiences however fresher will be invited for the job. The various departments will be handled by the owner itself, like as sales and marketing. The owner has sufficient management skills, therefore; the business process can be handled effectively. Tetra tech limited will be operated by the owner who will be operating as a general manager and will be accountable for the daily activities of the firm. The business will require a 2 technicians, 1 engineer and 1 telly caller a service boy who can will be responsible of supplementary activities. All the staff will have standard payroll, and there will be four members excluding the manager or the owner of the company.

Year 1

One engineer

AUD $350

Technicians 1

AUD $250

Technicians 2

AUD $250

1 tellycaller    

AUD $150

Total people

4

Total payroll

£1000

The start-up expenses of the Company will also include legal expenses that will be incurred initially along with the charges paid for getting the license and permit for the business and expenses related to stationery, office equipment, furniture and software. Apart from these start-up cost, the company will also place some amount of initial balance. The purchase of software comprises an allowance for $25000 for AutoCADD® 10000, and other expenses will be there. For registration fee, the company will pay AUD $2000. The owner will use personal savings of AUD $10000 and AUD $15000 will be taken as a loan. The financial plan is significantly dependent on important assumptions, wherein, it has been assumed that the business is operating in a strong economy, and therefore will be no major recession in the upcoming years. Furthermore, it has been assumed that this business will considerably transform the delivery of engineering services and the business will bear interest rates of the loan and will pay tax rates under the Australian law. 

Rent  is going to increase by 10% p.a.

Website Hosting Fees will remain same in all three years  

Salary will increase by 10% p.a.

Purchase of software comprises for an allowance for $25000 for AutoCADD® 10000

Utility expenses will remain same.

Revenues will be based on unit sales

Prices will not change so as to remain competitive in the market  

Electricity bill and the telephonic bill will be 500 p.a.

Repayment of loan will be done upcoming  3 years

Marketing expenses will be fixed @100 per year

Depreciation  will be charged straight-line method

7% interest rate  on a personal loan of AUD 10000

Tax rate  will be 20% as per Australia norms

Sales forecasting

Unit Sales

 Year1

 Year1

 Year1

Project Consulting fees

600

750

800

Project Management charges

200

240

260

Cost of Inspections

80

100

120

Computer Aided Drafting Services

800

900

1,000

1680

1990

2180

AUD $

AUD $

AUD $

Unit Prices

Year 1

Year 2

Year 3

Project Consulting fees

40

40

40

Project Management charges

50

50

50

Cost of Inspections

40

40

40

Computer Aided Drafting Services

30

30

30

Year1

Year1

Year1

Sales

AUD $

AUD $

AUD $

Project Consulting

24000

30000

32000

Project Management

10000

12000

13000

Home Inspections

3200

4000

4800

Computer Aided Drafting Services

24000

27000

30000

Total sales

61200

73000

79800

Direct Unit Costs

AUD $

AUD $

AUD $

Project Consulting

20

22

16

Project Management

20

20

16

Home Inspections

20

20

16

Computer Aided Drafting Services

12

10

8

Direct Cost of Sales

AUD $

AUD $

AUD $

Project Consulting

12000

16500

12800

Project Management

4000

4800

4160

Home Inspections

1600

2000

1920

Computer Aided Drafting Services

9600

9000

8000

Subtotal Direct Cost of Sales

27200

32300

26880

The income statement shows the significant areas of income and expenses for the firm in the upcoming years. The main income stream is four main services including Project Consulting

Project Management, Computer Aided Drafting Services, Home Inspections, from where business is going to earn huge revenues, however, some expense will be included that are explained in the herewith section 

Year 1

Year 2

Year 3

Utilities

1000

1000

1000

Rent

200

210

231

Marketing

100

100

100

Website Hosting Fees

500

500

500

salaries to staff

12000

13200

15720

Engineering Assoc Annual Fees

100

100

100

electricity bill and telephonic bill

500

500

500

Depreciation

1000

1000

1000

Interest payment

10500

7000

3500

other expenses

500

500

500

 Projected Income statement (AUD $) 

Year 1

Year 2

Year 3

Turnover

61200

73000

79800

Cost of goods sold

18360

21900

23940

Gross profit

42840

51100

55860

 Expenses

Utilities

1000

1000

1000

Rental cost

2400

2520

2772

Marketing expenses

100

100

100

Website Hosting Fees

500

500

500

salaries to staff

12000

13200

15720

Engineering Assoc Annual Fees

100

100

100

electricity bill and telephonic bill

500

500

500

Depreciation

1000

1000

1000

Interest cost

10500

7000

3500

Other expenses

500

500

500

Total expenses

28600

26420

25692

Profit before tax  (operating profit)

14240

24680

30168

Tax @20%

2848

4936

6033.6

Net profit

11392

19744

24134.4

From the revenues are expenses analysis, it can be predicted that the business is going to earn good profits from the 1st years of business. Cash flow projection is crucial to the success of business wherein the cash inflow and outflows of will be shown on either monthly or annual basis. The following table is showing 3-year forecasting of cash flow in business in which all the one time and regular investments are included.  The pre-operating and post operating expenses are as follows: 

Pre-operating expenses

AUD $

Registration charges

2000

Marketing expenses

20000

Software purchase cost

25000

AutoCAD

10000

Interior expenses

50000

Pre-operating expenses

AUD $

Year 1

 

Rent

2400

 

Marketing

100

 

Website Hosting Fees

500

 

Salaries to staff

12000

 

Engineering Assoc Annual Fees

100

electricity bill and telephonic bill

500

Predicted Cash flow (AUD $)

Particulars

Pre-operating year

year 1

year 2

year 3

Cash inflow

opening

-82000

-41400

9680

Turnover

61200

73000

79800

Initial investments

Owners contribution

10000

Bank loan

15000

Total cash inflow (A)

25000

-20800

31600

89480

Total cash outflow

Total direct expenses

27200

32300

26880

Registration charges

2000

Marketing expenses

20000

Software purchase cost

25000

AutoCAD

10000

Interior expenses

50000

Rent

2400

2520

2772

Marketing

100

100

100

Website Hosting Fees

500

500

500

salaries to staff

12000

13200

15720

Engineering Assoc Annual Fees

100

100

100

electricity bill and telephonic bill

500

500

500

Loan repayment

5000

5000

5000

Total cash outflow (B)

107000

20600

21920

24692

Total cash flow(A-B)

-82000

-41400

9680

64788

The Tetra Tech Limited will be a participant of the guidelines laid by BEB (Brand Equity & Brand Promotion) that ensures that the business abides by ethics, accountability and transparency across the Organization and in everyday activities (Crane and Matten 2016). Being a consultancy business, it brings many responsibilities towards the customers and community. Thus, we aim to manage our Company in compliance with the business ethics that are laid in the document, and the same will be in the top priority list for the Company. While conducting business, we will keep our promises and will be strictly resisted by activities like bribery and protect our core values of health and safety. The biggest investment of the business will be made in the human resource. All the staff working in and for the Company will be made known the values of the company and will be directed towards following it in all the activities they do. The company also aims to meet the expectations of our stakeholders by ensuring participation at all levels and respecting the endeavours of the employees. Some important steps taken in this regard are-

  • To be an innovative company by adhering to the quality norms and satisfying all the necessary legal requirements by working in line with the standards.
  • We will ensure satisfaction of the staff by conducting services within the established framework of legislation.
  • We will also make sure that our staff receives adequate training which improves their performance and personal skills.
  • To ensure that the requirements of the customers are met as per the primary and secondary legislation which result in increased satisfaction of the customers and maintain it
  • We consider gaining the trust of the segments of customers as our most important duty by reaching them through economic and fastest services that are aimed to maintain total quality and continuously improving them.

Tetra Tech Limited will maintain comprehensive and complete tool for analysis of the structural design. Windows® will serve the purpose of an integrated tool for computer-aided designing for drafting that makes it easier to carry on the business at minimal cost (Nicholas and Steyn, 2017). The business will also maintain an internet website for the FTP (with file transfer protocol) capabilities. The business will be created with a mindset of delegation. This starts with understanding the process of delegation to the lowest levels. This will lead to an organization surrounded by smarter people till the lowest level worker by which they can use their skills for the betterment of the business. It is important that the business stays align with the budget and reducing unnecessary expenditure. The company can switch to less costly software that provides equal features and benefits. The company can reduce travel expenses by video calling and online conferencing.

The business is a new start up and hence it will face many challenges with regard to managing the finance. If we fail to manage our funds, the business will face losses and fail to receive success. Thus, as per Hanssens, Deloof and Vanacker (2016), it is important to keep tabs on the expenses especially in the cases where large money is involved. The management will need to review the performance of the business according to the standards and projected cash flow. In the areas of health and safety, the risks are identified and assessed by training employees to work in a safe environment.

The business will aim to provide equal opportunities for employment to all the eligible candidates. The company is strictly against discrimination on the grounds of race, caste, religion, gender, marital status, sexual orientation, age, nationality, etc. (Klarsfeld, 2017)

The company aims at designing fair and transparent employee policies which will be aimed at promoting diversity and equality at the workplace. According to the words of Anitha, (2014), these policies laid clear rules regarding terms of employment and training. The company is committed to respecting the property rights of others and will never misuse the assets, trade secret and intellectual property including trademarks, some specialized software. The company will select their suppliers fairly. Tetra tech Limited seeks to work with their suppliers who demonstrate the same values as that of the company. 

The company is dedicated to ensuring the social well being of the society through initiatives of CSR activities. The company will engage by undertaking activities by approaching the society and other stakeholders by proactively approaching them to understand their needs and designing initiatives for their well being. The activities will be undertaken in the areas of education, healthcare, sustainable living, and infrastructure development. All the employees will be provided to all the employees. The company will also assume the moral responsibility for waste management and other environmental issues like reducing carbon emissions (Galea, 2017). The engineers of Tetra Tech are committed to design activities that incorporate sustainability to help the clients for resource conservation. The Company simultaneously incorporates technology and sustainability into the business activities. 

References 

Anitha, J. 2014. Determinants of employee engagement and their impact on employee performance. International journal of productivity and performance management. 63(3), P.308.

Crane, A. and Matten, D. 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

Engineering Market Update Australia, 2018. Retrieved on 27th January 2018, From < https://www.redpathpartners.com/news/engineering-market-update-australia/10221/>

Galea, C. ed., 2017. Teaching business sustainability: From theory to practice. Routledge.

Hanssens, J., Deloof, M. and Vanacker, T., 2016. The evolution of debt policies: New evidence from business startups. Journal of Banking & Finance. 65, Pp.120-133.

Heaton, A., 2017. Civil, Structural Engineers in Massive Demand. Retrieved on 27th January 2018, From < https://sourceable.net/civil-structural-engineers-massive-demand/>

Klarsfeld, A., Booysen, L.A., Ng, E., Roper, I. and Tatli, A. eds., 2014. 9.78 E+ 12: Country Perspectives on Diversity and Equal Treatment. Edward Elgar Publishing.

Kotler, P., 2015. Framework for marketing management. Pearson Education India. 

Kowalkowski, C., Gebauer, H., Kamp, B. and Parry, G. 2017. Servitization and deservitization: Overview, concepts, and definitions. Industrial Marketing Management. 60, Pp.4-10.

Nagle, T.T., Hogan, J. and Zale, J., 2016. The Strategy and Tactics of Pricing: New International Edition. Routledge.

Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and technology. Taylor & Francis.

Rothaermel, F.T. 2016. Competitive advantage in technology-intensive industries. In Technological innovation: Generating economic results (Pp. 233-256). Emerald Group Publishing Limited. 

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