1.

The Economic Importance of Transportation

Like many economic activities that are intensive in infrastructures, the transport sector is an important component of the economy impacting on development and the welfare of populations. When transport systems are efficient, they provide economic and social opportunities and benefits that result in positive multipliers effects such as better accessibility to markets, employment and additional investments. When transport systems are deficient in terms of capacity or reliability, they can have an economic cost such as reduced or missed opportunities. Transport also carries an important social and environmental load, which cannot be neglected. Thus, from a general standpoint the economic impacts of transportation can be direct and indirect:

Roads. The 20th century saw the development of road transportation systems and automobile manufacturing. Individual transportation became a commodity available to the masses, especially after the Second World War. This process was reinforced by the development of national highway systems.

Transport also contributes to economic development through job creation and its derived economic activities. Accordingly, a large number of direct (freighters, managers, shippers) and indirect (insurance, finance, packaging, handling, travel agencies, transit operators) employment are associated with transport. Producers and consumers take economic decisions on products, markets, costs, location, prices which are themselves based on transport services, their availability, costs and capacity. 4.5 Land Logistics Land logistics is a very important link in logistics activities. It extends the delivery services For air and maritime transport from airports and seaports. The most positive characteristic of land logistics is the high accessibility level in land areas. The main transport modes of land logistics are railway transport, road freight transport and pipeline transport. Railway transport has advantages like high carrying capacity, lower influence by weather conditions, and lower energy consumption while disadvantages as high cost of essential facilities, difficult and expensive maintenance, lack of elasticity of urgent demands, and time consumption in organizing railway carriages. Road freight transport has advantages as cheaper investment funds, high accessibility, mobility and availability. Its disadvantages are low capacity, lower safety, and slow speed. The advantages of pipeline transport are high capacity, less effect by weather conditions, cheaper operation fee, and continuous conveyance; the disadvantages are expensive infrastructures, harder supervision, goods specialization, and regular maintenance needs. The excessive usage of land transport also brings many problems, such as traffic jams, pollution and traffic crashes. In the future, to improve the land transport in transport efficiency and reliability, a revolution of transport policies and management is required, e.g. pricing.

Detail of my Business
Name of the enterprises Address Terminal Location Nature E mail Telephone Number of Employees Green Hazara Enterprises Sheerian Jinnah colony kemari Karachi Zulfiqarabad near Port Qasim Chemical and Petroleum Transportation greenhazara.ent.com 021-39876543 120

Services provided my green Hazra enterprises

Petroleum transportation services all over the country Chemicals transportation services all over the country Molasses transportation services only Sindh and Punjab Palm oil transportation services in Sindh and Punjab

Competitors
Any person or entity which is a rival against another. In business, a company in the same industry or a similar industry which offers a similar product or service. The presence of one or more competitors can reduce the prices of goods and services as the companies attempt to gain a larger market share. Competition also requires companies to become more efficient in order to reduce costs. Fast-food restaurants McDonald's and KFC are competitors, in transportation of chemicals and petroleum products Green Hazara and Al Haj Enterprises Major competitors of green Hazara enterprises are

Al Haaj enterprises
Strong points Working from last 15 years Have huge capital resources Very big fleet of vehicles Ability to invest more

Weaknesses Traditional style of business dealing Maximum fleet consist of old vehicles Unskilled and un trained staff

Mengal Enterprises
Strong points Working from last 12 years Also have huge capital resource Have political background 50 percent fleet consist of new models vehicles

Weaknesses Old style of keeping financial records Running other businesses also Mostly staff consist of uneducated people specially fleet management and drivers

Market Share
Market share is used by businesses to determine their competitive strength in a sector as compared to other companies in the same sector. It also allows you to accurately assess your performance from year to year. Market share shows us how much market we are grabbing. How much people are satisfied from our good, services and products. Market share determine the influence of our company in a particular sector or market. If any company grabs more percentage of market share than its competitors its mean this company influencing more in the market than its competitors. Increased market share is not always the best solution for businesses. Increased market share must be related with profitable terms rather than just holding more market and not getting profit. It might not be profitable if it is associated with expensive advertising or a big price decrease. A company may not be able to meet the demand of an increased market share without huge investments in new equipment and employees. Managing market share, therefore, is a very important aspect of managing a business.

The market share of Green Hazara Enterprises

Market share

1st

Al Haj

30%

2nd Mengal

24%

3rd Green hazara

21%

4th M.M Malik

11%

5th Remaining

14%

I develop four basic strategies to improve and maximize the market share of Green Hazara Enterprises. Improve our services than our competitors. We can reduce the price or offer special incentives for customers, such as discounts. Invest more in business if there is a need. This requirement can full fill by taking short and long term loans. Can advertise and make people aware the new standards of transportation, this strategy will help to improve market share.

Financial requirement
Finance is the back bone of any business. Without finance no one can start any business. Ransom amount of finance may increase the chance to combat with the competitors. Every business man and organization mush has the enough backup of more finance to put in if there is a need to make our business stable. Financial condition of Green Hazara Enterprises can be analyzed from following balance sheet.

GREEN HAZARA ENTERPRISES BALANCE SHEET AS ON OCT 31, 2010 Assets

Current Assets Cash Bank Prepayments 800000 3000000 700000

Liabilities & Owners Equity

Current Liabilities Short term loan 1000000

Non Current Liabilities LONG TERM LOAN 2300000

Total current assets

4500000

Total Liabilities

3300000

Fixed Assets
Furniture Land Building Office supplies Vehicles Total Fixed Assets 300000 1000000 900000 100000 3100000 5400000

Owners Equity
Capital 6600000

Total Assets

9900000

Total Liabilities & Owners Equities

9900000

Future prospective
Every business man wants to grow and expend more and more in his business field. After analyzing the present conditions and the chances of the success he made some future prospects. Future prospects play a vital role in stabilizing and expending the business. While making future prospects we must be very realistic because any unrealistic or idealistic prospects will waste our time and capital. Future prospects of Green Hazara Enterprises are as follows. To establish the standard and certified personal vehicles yard out side the city. To manage transport management program for our staff. To expend our business globally. With in next 10 years make my company the biggest transportation company of Pakistan. To open transport management institute with in coming 15 years. With in coming 2 years open 2 new offices 1st in Lahore 2nd in Islamabad Container transportation all over the country.

Swat analysis
Swat analysis provide information that is helpful in matching the firms resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection.1 SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors. No business can be perfect in all aspects every business have some strengths and weaknesses. As far as the external factors are concern the door of opportunities and threats keep open for every business. This is the place where business has to combat the competitors on huge basis.

http://www.quickmba.com/strategy/swot/

The swat analysis of Green Hazara enterprises is.

Internal factors
Strengths We have the well educated and trained staff including drivers. We have the latest models vehicles according to international standard. Health, safety and security rules are implemented strictly. We pay more to drivers as compare to our competitors. As we are providing standard transportation on same market rate but our competitors dont concern about the standard. This point will go in the favor of our transportation company. Our all vehicles have tracker system which will reduce the chances of robbery.

Weaknesses We are new in the market. We have small capital as compare to our major competitors. Its difficult to manage the modern transport standards in traditional society. As far as our society and competitor nature is concern they can use other indirect ways to suppress us like threats to our staff and political pressure as well.

External factors
Opportunities
As we are growing rapidly in a few years we can become the biggest transport company of Pakistan. As we are maintaining the international standards we can get the international transportation contracts easily.

 Threats

Our competitors can hiear the trained people also Our competitors have huge capital to invest in their business. Road accidents may cause a real damage because transportation of
chemicals and petroleum products always being dangerous.

As we know the instability of political conditions in Pakistan and

changes in Government policies regarding to new taxes may affect the health of our business.

Exit strategy
The method by a venture capitalist or business owner intends to get out of an investment that he or she has made in the past. In other words, the exit strategy is a way of "cashing out" an investment. In the context of an active trader, a plan as to trade will be closed out.2 Business organizations are also like living organism they born. They grow in particular environment and one day either they end or merge with others and lost their identity. When we start a new business, or as we develop strategies and plans to grow our business, we must need to think about our business exit strategy. If, one day, we plan to exit our business and transform our equity into cash through a sale, merger and change into other business need to prepare for that every step along the way. The exit strategies for Green Hazara enterprises are as follows. 1st option is that I will try to make merger with other transportation organization.

2nd option is this that I will give my vehicles on rent to my competitors and other big organization like PSO, SHEL Pakistan, Total and Bosicor etc.

3rd and the last option is this that I will sellout all the vehicles, office furniture and other office supplies at market price and try to minimize the loss. Having paid the all liabilities I will reduce the chances of my capital loss.

http://www.investopedia.com/terms/e/exitstrategy.asp