Business Plan - Action Plan for Risk Treatment - Assessment Answer

Assessment 2
Business plan

Task 2.1 Section 1
Vision
The vision of the organization is to maintain an appropriate relationship with customer and clients. We fulfil the high-class travelling experience at reasonable prices.
Mission
The mission is to provide excellent services at reasonable prices. The company focuses on providing quality services to customers.
Objectives
The main objective of the company is to provide the latest information about the vacation from their location.
ACA tours and travels focus on engaging customers through affordable prices.
The first step is to identify the potential customer and their needs and preferences about the travel agency. The second step is to research the major competitors and their pricing structures. The company should find valuable information about the agency. The third step includes research about the own industry.
Action plan for risk treatment
Identify risk
It is very crucial for a company to identify the risk associated with the company. In a travel agency, there are many types of risks which may affect the agencys reputation. If the staffs are not able to handle the customer properly then it will lead to poor management. The companys personnel should be able to provide better customer services.
Analyze and evaluate the risk
Risk can be analyzed in two ways. One is the possibility of the risk occurring and other includes consequences of the risk. By analyzing the risk it will be easy for the company to know the possibility of the risk. The risk level can be high, low and moderate.
Treat risk
Risk treatment refers to the treatment of risk at every level. If the risk is high then a plan to treat that risk should be developed. The company should identify whether they want to reduce the risk or eliminate the risk.
Monitor and review
After implementing the treatment plan it is very important for the company to monitor and review the action plan. The company should ensure that their treatment plan should be able to reduce the risk.
Communication of risk management
The agency should ensure that their staff and travellers should understand the duty and responsibility of their travelling. Stakeholders should be involved in every step of risk assessment. Risk involves proper planning and it is important to take consultation of the stakeholders.
There are many software tools which can be used by the agency to arrange all the documents in order. There are some important features which can be required by the company which includes Rollback, Annotation and stamps, locking and version control.
Indicators should be constructed to support the shareholder to invigilate the action plan and its implementation. Monthly and weekly meetings can be arranged to identify the current and future strategy of the plan.
Analysis of financial needs
Financial analysis helps to analyze the financial needs of a company. It describes the current financial position of a company and the financial requirement needed to strengthen the company. The process includes
Maintain a better relationship with customers and clients.
Collect and generate information about the clients financial status.
Analyse the financial position of the client and make a strategy about how to fulfil their requirement.
Make recommendations that will help the address the necessary goals of the clients.
Enhance customer services by successfully implementing that recommendation in the agency.
Monitor the progress of the recommendation.
Performance testing
The performance testing measurement systems include load testing, stress testing, endurance testing, spike testing, scalability testing and volume testing.
Methods for ensuring timely reports
Payments from cash in lieu offered to employees.
Minimum coverage essential plans should be offered to the employees.
Report to those employees who get conditional offers from the agency.
Determination of safety harbours by employees.
Track the employees who are receiving disability payments from the agency.
Reporting system for failure
The following steps included in the failure system are
The first step determines the end goal of the company and it helps to explain the future goals of the agency
The second step helps develop the data collection plan for the agency. It also explains the methods used in data collection and also analyses the data for the agency.
The third step explains the goals and responsibilities of the company and also determines the role of the company. It helps to identify the person who will be responsible for taking corrective actions through analyses results.
The fourth step includes developing the policies and procedures manual for the agency.
The goals and responsibilities explained in the third steps are executed in this step.
In this step policies and procedures are implemented. It also includes analyzing the results and taking corrective actions on the basis of the result.
The agency monitors and evaluates the quality and results. It also includes the monitoring of actions taken by the company. At the end data, collection plans are adjusted according to the results obtained from monitoring.
Analyzing Performance reports
Regulate the day to day activities of employees and developing a strategic plan for the agency
Delivering visibility and accountability in relation to expected performance
Analyzing individual performance to develop a compensation plan for the employees and documenting the career planning decision for the employees.
Developing the skills of the employees working in the company. It also includes developing a proper training plan for the employees to enhance their skills.
Constructing documentation to fulfil all the legal formalities and also reducing the conflicts in the company.
Planned processes
Risk increases when the organization is not able to analyze the accuracy and predictions made for the company. It can be reduced by taking proper actions.
Continuous checking of the implementation will help to reduce the effect of the risk on the company.
The company should be able to identify whether their objectives are meeting the target or not.
The strategy can be re-examined by the company to develop an analysis.
Task 2.1 section 2
3Rs
The 3Rs Repair, Replace and Refund
Repair The Company offers this policy when a consumer faces a problem with the service provided by the company.
Replace If the consumer is facing the problem with the existing service than replace policy helps him to get service from another agency.
Refund The Company fully refunded the money of those travellers who face any problem while booking the tickets. The cancellation policy is applicable on six days before travelling.
Risk management includes
Identifying the level of threat to staff travelling with the agency.
Use risk management tools for an emergency.
Educate the travellers about the risk management process of the company.
Policies and procedures to control risk.
Task 2.1 Section 3
Types of risk
Property centred risk
Property centred risk is associated with theft and poor asset management. The policy of the company can develop an insider program to control these risks. Threat awareness programs and training to the employees help to reduce the risk at a certain level
Personnel centred risks
This risk is associated with the safety and security of employees. It can be reduced by developing proper safety management practices for the employees.
Marketed centred risk
This risk is associated with competition, lack of innovation, poor services. The company should develop strategies and policies to understand the competitors move.
Task 2.2
Resources required for the travel agency
Inventory management includes travel agency software which helps manages the operations of the agency.
Multiple sales channels include b2b platforms or any other digital platform through which consumer can reach your agency.
Reservation management
Reservation management includes tracking of payment and issuing of tickets. It also includes payment confirmation and invoices.
Travel agent
A travel agent is a person who assists the traveller and arranges the vacation for the traveller.
Task 2.3 Section 1
Job titles in the travel agency
Travel agent
The role of a travel agent is to help the travellers in making their vacation successful. The travel agent assists the travellers by providing them with all the information. The agent is responsible for solving all the queries of customers. The agents also maintain the record of sales
Office manager
The office manager is responsible for smooth functioning in the organization. There are many responsibilities which need to fulfil. The office manager ensures that all the staffs are working properly or not. The manager supervises the staff and provides proper training to them. The role of office manager depends on the size and structure of the company.
Corporate travel consultant
The corporate level consultant helps to solve the issues of the company. The corporate level consultant is responsible for maximizing the growth of the company. The consultant gives advice to the company and helps in solving the issues of the company.
Senior travel agent
The senior travel agent is responsible for all the activities that are included in travelling. He is the senior person who is responsible for making the vacation successful. The main role of a senior travel agent is to improve the relationship of agency with customers.
Travel consultant
The travel consultant is responsible for providing personal assistance to clients. They help the customer to plan a vacation according to their needs and wants.
Staff required
Number of staff members required
Travel agent 4
Consultants 2
Office manager 1
Task 2.3 section 2
Organizational chart

Task 2.3 section 3
The remuneration offered by the agency to each travel consultant in AU 21.77 per hour. The company also provides tips, bonus and overtime pay to employees.
The remuneration packages that can be offered to the employees per year are
Position Package per annum
Manager AU 53,199
Consultants AU 40,052
Travel agents AU 45,000
Task 2.3 section 4
There are several sources available for recruiting the candidates such as recruiting softwares, split placements, social media and job boards. One of the most effective used method is recruiting software such as LinkedIn. The reason behind choosing this method is that it involves sincere professionals who have keen experience in particular fields which allows the recruiter to get the best appropriate candidate. The in-house-sources that can be used are referrals from existing clients and employees, advertising in the newspaper and on recruiting software. The available out-source are recruiting agencies, this method is least preferred as it increases operating cost for the business.
Task 2.3 section 5
Mandatory training by law Compliance training is mandatory by the legislation. It ensures that the employees work according to the law and regulation which is applicable to their respective jobs.
Special training required by industry Employees needed to have effective communication skills and research skills so that they are able to provide productive offers to the customers.
Special training required for a particular job position The special training for managers is to allocate the resources in an effective way and provides the best outcomes of the task.
Task 2.4
Marketing tools used by the company
Keeping contact with the clients and customer us very crucial part of a business and after developing the marketing plan. Every marketing plan is always developed on the basis of the customers and the environment in which it is established or establishing and keeping an eye on the customers for creating new ideas to attract the customers.
Plan your travel agency
This is a basic and primary work the company has to do that is planning for new business in a new country. The company already has a developed agency in another country and it wants to start it in another country it has started with the initial stage of starting a business that is making a business plan, the company should open a home-based travel agency or a host travel agency as an independent contractor or the wants to follow the existing plan.
Conducting a market research plan
Before going to the other market every marketer must have market research plan for product and services he is going to offer to that product like when to start a new business into that area, what kind of travel agency the market requires, the strategy to be developed for the Australian market and the interest of the people for travelling to different places and their spending on travelling. This can be analyzed by surveying the customers, income statements of the people and interest of the population to travel.
Initiating a referral program
It means that marketing your product via word of mouth, which is highly efficient and requires minimum time and effort and it is very low-cost marketing tools which a company can use for its new journey of the travel agency in Australia. Ask the customer to refer the company to their friends and family for travelling, giving those attractive offers and gifts for referring the company for tours and travel of the customers and giving them complementary trips for referring more customers also.
Local advertisement
This type of advertisements may help the company to develop its new plan in Australia through advertising in bulletin ads, newspapers and putting the companys information like name, logo and contact information publically to let them know about Tour Company, online marketing and advertisements on social media and television and through mailing the customers about the new services to be offered in the country. These are advertising opportunities the company has to grab for marketing about their agency.
Plan a travel night
Planning this for clients to let them know about further tour and trips and offer them booking incentives for their further trips and let them know about your new establishment in the other country and make sure that they are aware of your new tour and travel agency in that country. This may make the customers more interested in your services.
Branding the travel agency
Now days travel agency business is very competitive and establishing a well-known brand name will help the business to stand-out in competition and in a new market. ACA already has developed business and it has very good brand recognition and brand equity in the USA. To develop such brand in Australia the company has to focus on their values and vision of the company, customer focus and the business strategies to be adapted to establish the business in Australia.
Customer loyalty program
Customer loyalty refers to the customers who frequently come to the agency for their tours and trips. This type of program encourages the existing customer to be loyal to the company, instead of making new customers it is easy to retain your existing customers, this will maintain a smooth relationship between the customer and the company.
Market campaign timeline
Plan your travel agency
2-3 months
Conducting a market research plan
Initiating a referral program
5-6 months
Local advertisement
1-2 months
Plan a travel night
1 month
Branding the travel agency
6-7 months
Customer loyalty program
Once in six months
Task 2.5
Physical distribution methods
Direct selling method will involve the selling of tickets and bookings of the tickets directly to the customer without any intermediary. This type of method involves the direct interaction of the agent to the customer.
Indirect selling method involves the intermediaries in between the customer and the company like agents and brokers etc. this type of method is used when the customer is unable to contact the company.
Distribution channels used by the company
Online travel agencies
They list the schedule of your tour and travelling to their website for customer preview and easy bookings of the tickets. These agencies are useful because they view all the activities of your tour to the person. The reason to choose this is easy availability of the time schedule and cost.
Companys website
Companys website will provide the best tour offers to customers, going through the website the customer will get to know about the details of the tour, the further procedure of the booking and offer and discounts provided for the customer. Its very convenient and easy to handle by the customer himself just by following directions from the website.
Hotel caretakers
This can be one of the distribution channels used by the company by tying up with the hotel management by forecasting the tourists for a particular season or particular time in the tour and travel agency. This is suitable for the travel agency to contact to the customers of the particular hotels and ask them to use their facilities.
Task 2.5
Reviewing Market requirements
Practising the 30-second ad commercial
The advertisement should be very creative and attractive to a customer.
Creating a newsletter for every month
Send short emails to the existing clients of the company for further plans for tours.
Variety of social media posts
There must be variety to the social media ads and post on the websites.
Research pricing options
Conjoint analysis
This is one of major pricing research methods used by the company, where the price of the product is determined on the basis of the customers paying capacity for the product and comparing the features of product a customer is getting from purchasing the product.
Gabor-granger
This is a direct method of price analysis where the customers are directly asked about the price of the product or whether they will purchase the product at a particular price.
Van-Westendorf
This is a kind of survey method where the customer is given with the questionnaire about the product quality and the price of the product.
Pricing strategies
Mark-up pricing strategy is used by the company to set the prices on the basis of holidays and tour to make a profit on each sale. This pricing strategy attracts more customers.
Rack rates
An official rate the company always has for bookings of the trips. Every tourist business these rates, which is printed in the brochure. This pricing strategy is used to remain more competitive in the market.
Seasonal rates
These are the different types of price level within a year to cover high and low season rates of the bookings. This price strategy is used to make a profit in particular seasons.
Last minute pricing
These rates the rates which have the last minute bookings offered by the company to the customers to fill the last minute gap with discounted prices. This is used to fill the gap between the sales of the company.
Task 2.7 Section 1
List of the internal and external shareholders
Internal shareholders External shareholders
Board members Customers
Staff members Creditors
Volunteers Suppliers
Investors Community partners
Task 2.7 section 2
Stages and communication channel used
Stages Communicated To Channel used
Introduction stage Management Verbal communication
Planning stage Team members Verbal as well as non-verbal
Developing stage The staff as well as management Verbal communication
Execution stage All staff and stakeholders Verbal as well as non-verbal
Task 2.7 Section 3
Communication channels used to communicate by
Board members Call out for board meeting by the members. The verbal communication channel is used.
Manager Call a meeting with the subordinates. The verbal communication channel can be used.
Team leader Face to face and email meeting with employees and managers. Verbal, as well as non-verbal channels, can be used.
Employees Send letters and email to a manager or team leader. Interpersonal, as well as verbal communication channels, can be used.
Government bodies By appealing and sending letters to government authorities. Verbal communication can be used.
Gantt chart
Channels/Time-line Week 1 Week 2 Week 3 Week 4 Week 5 Week 6
Board members Manager Team leader Employee Government bodies

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