BWJ Driving School

Proprietary Information
 BWJ Driving School

BWJ Driving School is co-owned and managed by the

William Baloyi CEO
Wilson Baloyi CEO
Offices
47 Oyster Bay
Muizenberg
Cape Town
7945

Contact Information
Telephone 073 DRIVING
073 374 8464 available
Customer Care Contacts
CEO (079) 467 5971
(073) 233 4680
Website
www.bwjdriving.co.za

Executive Summary 3 Profit Planning

1 Strategic Window of opportunity a. Anticipated Revenues
2 Assessing the feasibility business b. Cost Planning
opportunity c. Tax Planning
a. Demand & Supply d. Budgetary Planning
b. Market Forecast e. Profitability Planning
c. Duration of Opportunity
d. Market Potential (Viability of opportunity)
f. Financial Efficiency
e. Feasibility of the Business ( Do-ability) 4 Resource Planning
f. Sustainability (business continuity) Anticipated Markets
g. Market Share Anticipated Processes
h. Assessing the feasibility Sales Volumes Anticipated Labour
Anticipated Equipment
 BWJ Driving School

e. Anticipated Capital Expenditure Competitor Behaviour

f. Budgetary Planning Change of government Regulations
g. Return on Investment Internal Business Risk
h. Resource Utilisation Efficiency External Business Risk
5 Operations Planning Legislation and compliance Risk
a. Supply factors Theft and Vandalism
b. Value Chain Management Labour Action
c. Seasonal Opportunity 9 Risk Mitigation Strategy
d. Capacity Planning Business Insurance Cover
e. Processes & Workflow Reimbursement Policies
f. Business Process Improvement IT Security Policies
6 Quality Management Financial reserves
a. Service Excellence Customer Care Training
b. Client Specifications Corporate Governance
c. Communication Techniques 10 Future Patterns
Standard a. Web Based Business
Documents and Formats b. Online Registrations
Delivery turnaround times c. Social Network Marketing
Client Base d. Virtual Customer Services
Training & Development Credit card payments
Output & Productivity 11 Technology
Occupational Safety & Health a. Equipment and peripheral devices
7 Developing Sales Strategy b. Enterprise Solutions
Sales Forecasting & Planning c. IT Security
Sales/Profit/Volume Analysis d. Networking
Selling Strategy e. Remote Access & Unified
Product Lifecycle strategies Communication
Staffing and Motivation 12 Innovation
8 Venture Risk assessment of the New Service ideas
Permit Visa services Business New market development
Customer Relations

1. EXECUTIVE SUMMARY
a. Overview
BWJ Driving School cc is a close corporation that aims to capture the market by providing
driver taining of an unprecedented quality and nature. The legislation and the banking
regulations ensure that new vehicle purchasers should possess valid driver’s licences.
(i) the bank finance deal requires insurance cover because motor vehicles are
expensive assets
(ii) the Road Traffic Act requires that Vehicle registration be issued in the name of a
driver with a valid driver’s licence

Simply stated our business model involves three stages

BWJ Driving School (BWJ) offers a wide range of driver services. It is ultimately the goal of
the company to be a one-stop facility for all driver needs, including registration, licensing,
etc., but at this time BWJ Driving School mainly offers private and commercial driver
education in the Cape Town, Western Province area. BWJ is positioned as a low-cost facility
with excellent service.

One of our key dynamic strategies is to do sustainable business like Permit Assistance with VISA
applications and related services and take advantage of the politically necessitated opportunities that
are currently dominating the environment of South Africa

b. Keys to Success
i) Service Excellence
The business of BWJ Driving School is a people business that involves the private individuals
and government departments. It is the sensitivity of the needs, the variety of expectations &
specific requirements of these stakeholders that drive the nature for the service.

We aim to capture the market by courtesy and diplomacy before professionalism as a

cornerstone of our business. All permanent staff and temporary personnel will demonstrate
 BWJ Driving School

trustworthy conduct with client’s documents and moneys, provide excellent service and
good customer care in offering assistance with Learner and driver’s licence applications and
related services.

We operate in a dynamic and fast-paced environment so we will use Guerrilla Marketing

Strategies by being either readily reactive to sudden unexpected changes in the
requirements and legislation on driver’s licence applications in South Africa.

We have a Risk Management Strategy in which we have detailed the business risks that may
affect the welfare and survival of our business. These risks are likely to surface as new and
imminent business threats.

The business will drive quality by doing thing right the first time and doing things first time
right, because repeating the task without repeating the revenue is a loss of opportunity for
the next job, a waste and an inefficient use of income generating resources. Perfection and
zero error lowers input costs, improves throughput of the business system and drives costs
to a bare minimum. Good business profits come from service excellence wherever possible.

We shall work closely with the traffic departments and the public in our attempt to add value
to clients and keep up to date with intended changes and new developments, embrace new
laws and systems proactively so that we become knowledgeable. This will make us “Driving
School of choice” on the basis of consistency, reliability, quality, guarantee, and value for
money, suitability for purpose, and affordability. An effective business strategy is to mind
the communication, business documentation (professional envelops and sleeves) and
branding (logo) of the receipts and invoices. Marketing and Sales efforts need to be
articulated more through one-on-one selling in the field, signed referrals with photographs
and dates, inhouse presentations and adverts on the internet and local newspapers. We aim
to create value in the minds of clients by recreating an impression that our service is
quicker, cheaper more efficient and more reliable. Clients must perceive us as more client
friendly and we deliver service using highly knowledgeable and professional staff service.
Each Local government traffic department has a specific focus and Road safety strategy
which are most sensitive. Our liaison and the continuous reading and research ensures that
our business delivers service of highest ethical standards, maintain consistency of quality all
the time, and we use the most up to date procedures and methods for Learner and Driver’s
licence applications. This hallmark of success is portrayed by the equipment and business
systems we use. We have planned and budgeted for service operations and administration
to ensure we have visible display of customer care, professional conduct and that we are a
systematic and well-managed business. We use clear and easy to understand marketing
strategies, going green with our printing, using environment friendly materials in our
business, and energy saving devices in our offices. We advocate for an occupational health
and safety philosophy, we utilise Customer Relationship Management, straightforward
management and procedure structures for the service operations.
ii) Managing the Business
We believe only in intelligent business management that involves clear definition of
processes, methods, and document management. Management proactively participates in
the delivery of good customer service. We believe that maintenance of our cash flows,
motivation of our staff and service quality are the signs of good business management.
iii) Marketing
Marketing decisions and actions are the most ceremonious activity in the firm because
markets drive the business. Our business success will depend on how well we respond to
these needs in terms of our flexible methods, quick delivery, invoicing system, and effective
strategies of payment collection.
Our marketing is done to the book because only intelligent businesses who cover the scope
of the whole business scenario can survive. Business survival is a serious matter; so
planning, execution, evaluation and control of research, budgets, resource allocation,
strategies, and selling, adverting, customer care are all part of the ritual and ceremony of
running our business.
iv) Infrastructure
 BWJ Driving School

-Administration: We have Small Office Home Office(SOHO) in an upmarket environment

dedicated to administration and client liaison in which we have an office desk, high back
office chair, Duo Core Laptop, Desktop Computer, telephone line, fax/ printer/ copier
machine, internet connection.
-Business Premises: We use as office space the domicile of Wilson Baloyi so as to keep
running costs low. This enables us to competitively price the services, increase our profit
margins, attract a healthy streamflow of clientele, stay in proximity to the source of
prospects, stay close to the Department of Home Affairs and have a quick break-even on the
investment.
-Storage: Although services cannot be stored, we have designed policies and procedures
and also generic templates which we customise in order to fast track the tasks. By this we
are able to bulk process large volumes of client orders in a short space of time and we can
easily recreate the same outstanding quality service. This also increases the revenues and
lowers the input cost in terms of wages per hour.
Stock of consumables in order to alleviate inconsiderate usage, theft, waste, we have a
stores cupboard in which we keep printer paper, new printer cartridges, other forms of office
stationery. Our service must be as smooth and oiled with no hitches and bumps.
-Expansion: Top Management has a vision for bigger office space although nothing has
been earmarked as yet. This is just what our government requires-(i) Investment in the
urban communities (ii) the skills development through learnership opportunities and (iii) to
create employment (iv) and run sustainable businesses that can maintain our nation through
GDP increase and payment of taxes.
-Dispatch: Effectively dispatching the finished job is an opportunity to show our flagship in
the eyes of the customers. We use branded stationery in mint condition. We are dressed
formally 5 days a week in order to give the office impression to the clients because prices in
this industry are high. Although the clients will not insist on neatness and tidiness it is
silently assumed that if you charge and receive amounts to the value of R3-000,00 at a go
then, we must be appropriately dressed to get repeat business and even respect from
customers.
-Document Courier: We are in close proximity to the department of Home Affairs our
major office and at this juncture we do not need to have any standing contracts with
document couriers.
c. Brand Strategy
The name Eric is a much respected and permeating English name. It is a word that assures
and guarantees reliability. The charismatic personality blended with the professional service
rendered gives the business strong and reliable referrals that keep the business going on
and on. The value proposition of VISA applications and related services given by BWJ Driving
School is competitive and at par with many in the market but there is that distinct service
differentiation that makes the clients prefer BWJ Driving School.
BWJ Driving School is a highly marketable brand, it is the customer service, transparency,
reliability, shorter turnaround times, our organisation culture, our etiquette, the professional
conduct of our staff that creates one class of the most unique and tenacious brands. If the
service is positioned correctly against market needs we are set to reach greater heights.
Unlike most mundane Western brands there is curiosity and excitement in our names. Our
success easily catches the world’s attention so under the brand of BWJ Driving School
Services we aim to steal the limelight.

The Corporation
BWJ Driving School was formed and incorporated as a Close Corporation at CIPRO in Pretoria
under the Close Corporations Act 69 of 1984 (s2) in the year 2009 on the 20th day of the
February month.

2. STRATEGIC WINDOW OF OPPORTUNITY

Eric Akumanyin Antwi and Amanda Opisso the owners and directors of BWJ Driving School
has identified a business Opportunity in the Cape Town Metropolitan area. The following
factors make it feasible for BWJ Driving School to attain profits in this line of business.

a. Business Opportunity
 BWJ Driving School

i. For many years, South Africa has been a popular destination for holiday
makers, students, work seekers and business owners, investors and retirees. Many
foreigners coming to South Africa are touched by the diversity and beauty of the
country and its people, and many decide to prolong their stay or settle here altogether.
ii. The independence of the country in 1994 implied that doors were open
for the former host countries that provided sanctuary for our comrades in the past to
come and visit and even choose to stay, study, work, invest or do business in South
Africa.
iii. The situation was further exacerbated by anarchy, military rule,
dictatorship, human rights abuse, war and embezzlement of government funds that all
lead to hunger and human suffering. With that we extended a gesture to open our
doors to the rest of the continent be a safe haven for our fellow brothers and sisters.

b. Financial Resources
i. The Eric Akumanyin Antwi is at the prime of his time being a
seasoned entrepreneur who understands the intricacies of the business and its
markets. He has Business and accounting background, good banking record, clean
credit record, and a number of assets of considerable value, is able to access finance
through a number of alternatives such as normal lending from First National Bank,
Standard Bank and Nedbank. The South African Reserve Bank’s monetary policies and
favourable lending rates are structured to encourage business risk taking and
investment rather than idle fixed deposits so that banks can dispense capital to the
businesses that deserve the chance. There is also State Enterprises which ensure that
entrepreneurs access funding for their businesses through credit guarantee.
c. Economic Conditions
i. Our nation is rich in natural resources. Current economic
policies favour immigration into this country and the Immigration Consultancy industry
is one of the keystones in this regard. Many foreigners come in huge numbers to take
advantage of this situation and come to South Africa.
d. Growing Markets
i. The attraction of better education, health care and
the quality of life creates a growing market due to increase in immigrants from Africa
and abroad.
ii. International business brings many visitors to
prospect for new opportunities in South Africa as a whole and Cape Town in particular;
this growth in the number of potential applicants for permits increases the demand for
our service.
iii. Political unrest and dictatorship, military rule and
‘coup d`é tat’s imply an increases the number of potential clients for our services.
iv. Immigrants intending to reside, study, work or start
business in South Africa also contribute to the increase in the demand for the services
we offer.
v. More foreigners more business
e. Political climate favours
i. Political climate favours sound foreign policies and
international relations. The nation stands as a global symbol of a nation with a system
of governance to emulate. The governing party “the ANC” is ranked as one of the best
rated political parties in the world in terms of policy making and policy implementation.

f. Government Intervention
i. The Department of Home Affairs (DHA)
subscribes to global standards of Human Rights and one of them is the right to reside,
work or study in any place of one’s choice on the globe: this is evidenced by the ease
of applying for a Visa and Residence Permit.
ii. In order to alleviate the workload that the
department is so inundated with, there are structures to support privately operating
Immigration Consultants with training in the processes and procedures the
 BWJ Driving School

documentation and the legislation so that these Immigration consultants are

conversant and proficient in the legislation, processes and procedures.
iii. There are many Key areas of improvement
and new opportunities for development of new business services DHA and there are
support structures as well for conducting business in those areas.
g. Post 2010 Turn of Events
i. 2010 FIFA
world cup brought an influx of football tourists into this country. These visitors have
seen for real what a splendid place this is in terms of immigrants, business and other
facilities and will encourage others to visit or maybe even stay in this country. As such
international advertising and online access to our services will enable us to capture the
business we need in the post FIFA 2010 World Cup events.

h. International Trends in Human behaviour

i. The present
trend is for humans to migrate to countries with opportunities that best match one’s
capabilities and resources. The current foreign policies of many nations allow citizens
to migrate freely to regions of their choice.
ii. Many
graduates, professionals and entrepreneurs are coming in droves into this country due
to many untapped resources and opportunity presented by the fact that this country is
recently liberated to Black majority rule.
iii. International
sanctions during the pre-1994 apartheid era brought the whole development to a
stagnant growth and this is has been reversed and South Africa is budding with great
prospects: another opportunity for the enterprising and experienced who are willing to
come into the country and take advantage of these greener pastures.
iv. Political
instability, poverty and hunger drives many from the African continent to seek refuge
and asylum in this country.
i. Change in Legislation 1 July 2005 .
i. The then
Minister of Home Affairs’ (Nosiviwe Mapisa-Nqakula of the African National Congress –
ANC) as correction of the errors of the the immigration regime which had been
introduced by the former Minister of Home Affairs Dr. Mangosuthu Buthelezi (Inkatha
Freedom Party – IFP) and which had brought about revolutionary changes.
o Buthelezi and his advisors had introduced, amidst much controversy, an
immigration regime which attempted to keep up with global trends and to attract investment into the
country. It was meant to make immigration for bona fide applicants easier in order to free resources
for combating illegal immigration, corruption and fraud. ii. T
o
he
The Immigration Act (Act No. 13 of 2002) and Regulations were widely criticised, especially for the
lack of consultation of the relevant bodies and organs during its drafting.

recent amendments to the Immigration Act and Regulations were intended to correct
legal errors, to close gaps, to make the application of the laws simpler and to improve
the conditions for investors to South Africa.
iii. As is the
case in all areas of South African politics, the situation of South Africa’s immediate
neighbours and of the entire African continent is taken into special consideration.
iv. Although
South Africa’s dire need for direct foreign investment is acknowledged, the government
is increasingly differentiating between various types of investment and puts more and
more value on a particular investment or foreigner’s contribution to the country’s
sustainable growth and to employment creation.
 BWJ Driving School

For many foreigners, however, obtaining the relevant residence permit poses a great challenge. As
applicable laws, regulations and practice are complex and success is vital for the foreigner’s future
life, seeking professional assistance is advisable.
In choosing the permit category and the application procedure and in preparing the application, there
are numerous pitfalls which can cause enormous delays and may jeopardise the application. Once an
application has been rejected, obtaining a permit is a time-consuming exercise and may be
impossible. Further, Departmental officials’ interpretation and application of the laws still lack
transparency and consistency, which may lead to misunderstanding and frustration on the side of the
applicant. With the help of a professional advisor, however, a foreigner’s immigration can be a
pleasant and stressfree
process.

j. Technology
i. Modern Technology is a dynamic and globally
competitive allowing the Home Affairs departments to easily access their databases,
rapidly process queries and through integration with the International Police (Interpol)
or by means of other diplomatic treaties governments department are sharing secure
information across borders.
ii. Technology facilitates better screening of citizenship
and permit applications.
iii. World class technology is readily available in South
Africa and this makes it easy for DHA and agents to inter-operate.

3. QUANTIFYING THE BUSINESS OPPORTUNITY IN TERMS OF

a. Demand & Supply
 BWJ Driving School

Demand & Supply

Relationship

Price S1
D

Equilibrium
Po

S1 D

Qo
Quantity

Definition of Demand: The demand for our service is the amount of permits and visas
applications and related services a single consumer will require in a given time. An
individual or consumer is a single person or a child or single organisation. Sector demand
looks at the total applications for permits in a month, quarter or year for the service
whether or not it is provided by Eric is Permit Assistance, our competitors, or even
provided by the Home Affairs itself. This is the annual usage in millions of Rands. Market
share is the % of the pie chart that BWJ Driving School or our competitors have in the
annual business (or sales).

Demand Philosophy: Economic demand is effective demand. It is not what our

customers are willing to pay but how much money customers have in the hand to spend
on our service. To be profitable we seek customers with 1) need 2) money 3) willingness
to pay and 4) clients who choose or prefer to use the ‘BWJ Driving School’ brand.

The Cape Town Metropolitan immigrant population is unofficially ±0,469 million persons
including children and infants all of which by legislation require permits to reside in this
town.

What drives demand?: Tyranny, dictatorship, human rights abuse, war, hunger, study,
personal choice, business, sound legislation raises the need for residence/study/work
permit applications. The exacerbation of the above factors means more opportunity for
‘BWJ Driving School’ to make money due to a greater possibility that we provide what
is in demand.
This is our assurance: that the immigrants need the necessary paperwork to stay here
and avoid arrest fines, deportation and embarrassment. A second factor is the fact that
they cannot bank, open any account, study, work, open own business, rent premises or
drive a motor vehicle without a valid permit.
We seek to take advantage of this opportunity to make profit for the business owners.
b. Market Forecast
The applications are set to increase with the continuation of dictatorship and tyranny on
the African continent impelling immigration, thereby contributing immigrant influx into
Cape Town and South Africa in general. There is an imminent unexpected boom due to
the post-FIFA 2010 referrals and consequently the highlighting of the splendour of the
country or more sports events in the future due to availability of stadiums and
infrastructure and our ability to market RSA on the globe.
 BWJ Driving School

c. Duration of Opportunity
The permit assistance Permit Assistance business has been reported as being one of the
fastest growing industries in South Africa today. The DHA is having trouble with keeping
up with demand. The DHA system gives temporary permits that require continuous
renewal. This trend is set to continue as much as humans continue to live on this planet.
d. Market Potential (Viability of the opportunity for Permit Assistance Business)
i. Foreigners all in all, earn or spend over R830 million
per year on permit applications
ii. The City of Cape Town immigrants alone spend above
R11 million per month
iii. The family influences, stemming from the need to be
together by bring families together often pull relatives and friends into this country
when immigrants send them invitations to come into the country
iv. The media (magazines, radio, television, and cinema)
and the tales from our own people visiting other parts of the globe and giving
invitations to the natives of those countries influence their desire to come into South
Africa.
v. Alienation due to apartheid policies in the past made
many political activists to seek refuge in host countries; the policies of the new South
Africa have seen more and more individuals who were in host countries like
Zimbabwe, Zambia take this opportunity to visit the land.
vi. The Colonialist Policies such as Witwatersrand Native
Labour Act (WNLA) of 1937 saw the procurement of African (so called native) Labour
from British colonies like Botswana Protectorate, former Southern Rhodesia (now
Zimbabwe), Northern Rhodesia (now Zambia), Nyasaland (now Malawi) and
Moçambique (now Mozambique).
vii. This advertised the country as a regional employment
hub for the sub-continent. The famous tales and allure of the returning labourers
lingers long in the minds of the growing up young men and women who then make
an exodus into this country hoping to make a fortune from gainful employment.

With this endless list, market drivers and the amount of opportunities available in the country
the need for immigration services is ever rising and in more demand.

e. Feasibility of the Business Project (Do -ability) –Value proposal

The individuals wishing to reside in South Africa face a lot of opportunities and these
opportunities can only be tapped into if one is legally in this country and in possession of
a valid permit to prove it. Because DHA offers temporary permits, the permits expire
periodically and require extension and renewal. The queues are long and the process is
very tiresome. Foreigners end up being frustrated and demoralised that they choose to
rather pay upfront for some one to do the job professionally first time right.

The business shall always have a steady streamflow of clients requesting assistance.
Obtaining the relevant residence permit poses a great challenge. Applicable laws,
regulations and practice are complex and success is vital for the foreigner’s future life,
seeking professional assistance is advisable. In choosing the permit category and the
application procedure and in preparing the application, there are numerous pitfalls which
can cause enormous delays and may jeopardise the application. Once an application has
been rejected, obtaining a permit is a time-consuming exercise and may be impossible.
Further, Departmental officials’ interpretation and application of the laws still lack
transparency and consistency, which may lead to misunderstanding and frustration on
the side of the applicant. With the help of a professional advisor, however, a foreigner’s
immigration can be a pleasant and stressfree process.

f. Sustainability (Can the business continue as a going concern)

BWJ Driving School operates using a carefully conceptualised BUSINESS MODEL that
realises from the beginning that creating value requires infrastructure (at infrastructure
cost), use of resources (at resource cost) to create services(at service cost) which are
then sold (at service cost plus mark-up). The revenues always outweigh the costs thus
 BWJ Driving School

making it profitable to run the business. The volumes of incoming foreigners are high
while business incomes are either growing and continuous.

Financial analysis of the business model reveals that the incomes (at 80% output
capacity of per monthly) against customer orders (at 3 day payment period) will see
monthly revenues exceeding monthly operating expenses.

BWJ Driving School Business Model © 2009

g. Market Share
Market estimation has been on the basis of the immigration figures for Cape Town and
for the `country as given by the DHA figures
Conservative immigrant patterns showed an influx of about ±900 persons a day entering
the country and not exiting
On average there were applications for permits of over 12 000 per month
Average office clientele are 6 daily and 35 per week
A benchmark consultation price of R3.700 per consultation job with 50% down payment
to commence the job
At weekly revenue of R 7,600
An estimated monthly revenue of R32.100
At 100% service capacity and 100% payments, BWJ Driving School will have a 1% market
share.
 BWJ Driving School

Major industry players

a)All Legal Practitioners never say no to a permit application, as this is low hanging fruit,
b)Immigration Consultants
c) Freelancers, working from home consultants and paralegals
are the typical businesses that compete for a slice of the cake.

ACN Consultants (Pty) Ltd Intaglio Immigration& Financial

Africa Immigration, Services
Britannia Aidan K Movers S.A, International Immigration Alliance
Cape Immigration Campus, Linda Immigration Practioners,
Cavendish Hauser, Maddies Immigration Services
Global Migration SA, Newcor Immigration Services (Pty)
IBN Consulting, Ltd
Imcosa Immigration & Consulting S Relocation Africa
A. Immigration Access, Relocation Online
Immigration du Cap, SA Migration Services
Southern Cross Alliance

h. h. Assessing the feasibility Sales Volumes

Cash payments for services rendered are the lifeblood of our business. Cash
revenues from Sales give BWJ Driving School the cash flow for business health.
The sales transaction is the relationship of money payments in return for
service rendered.
Market entry There are no barriers to market entry except Legal requirements
which can be fulfilled in many different ways such as employing Paralegal
practitioners, lawyers or even operating under the ambit of a lawyer if not
getting into partnership with a lawyer himself.
Service differentiation Service differentiation is very difficult to achieve
because of the level of specialisation of the Immigration Consultancy businesses
and the type of clientele that they serve; but quicker turn around times, friendly
and informative consultants, dress code and etiquette and multilingual
communication all count in favour of the consultancy and does articulate
service differentiation
The other differentials would be a vending machine, interior décor of the office
and any artefacts which will exude an air of exuberance and success around the
office environment.
Sales Strategy We have effectively accessed the permits market and to this
point we indeed reap the rewards.
In the arena, we intend to establish ourselves by being a bestseller:100%
success on first application, emergency applications and narrow deadlines,
short turn around times, honesty with client’s monies, an impeccable
reputation, etiquette, working the market and making demonstrations of what
we do and customer quality preference will be our key retail value proposition.
Sustainable Operability We place our best bet on the business as our money
making machine and we are backed by on going study of the Immigration Act
No 13 of 2002, (as amended by Act No 19 of 2004;) with its Immigration
Regulations of 27 June 2005. Our proficiency and better insight as to how to
unpack the policies gives us a good ground to enforce certain rules of law where
 BWJ Driving School

need be, but most instances ordinary courtesy and politeness works better. The
business always delivers revenues as per weekly Sales projections. Continuous
uninterrupted operation will ensure we meet contractual obligations to our
clients. We shall take Mutual and Federal Insurance as a Risk Mitigation
Measure.

4. PROFIT PLANNING
The relationship between the Incomes and the Cost of running the business is the
profit. Profit is the main goal of BWJ Driving School and no matter how much Sales
and other Income we bring in, but if we do not make profit (gain) then we are
losing; sooner we will be out of business.
a. Anticipated Revenues
Monthly revenues at full capacity gives output of 108 consultation sessions adds up
to R79,550 per month and R954,600 per year

Sales Projections
Weekly Incomes R 7,500
Monthly Incomes R 30,000
Annual Incomes R 360,000

Marginal Analysis
For our purpose, a margin is a value per unit i.e. per client consultation
1. Our Service =Needs analysis Consultation+communicating of DHA procedures+form
printing+form completion+Submission of permit application+communication with
client+follow up+collection+Packaging +delivery to client+Label+Branding
2. Direct Labour = Administration+Typing+Submission+ Lawyers fees
3. Indirect Labour = Management+Secretary+Sales demonstration+Cleaning
4. Direct Expenses =Electricity+Copy paper+Printer
Ink+Ventilation+Pesticides+Transport+Entertainment
5. Indirect Expenses= Marketing+Office Administration+Tax+Bank Charges+Telkom+Internet
+Cellphone calls
+Printer wear & tear+Office coffee/tea +Business travel
Daily

Weekly

Monthly

Yearly
Total
Total

BWJ Driving School

Total

Total

Immigration Consulting-
Profitability Analysis
CONFIDENTIAL
Sales forecast Margi R3,700 R3,700 R3,700 R3,700
n X1day X5days X21,5days X258days
Volumes (Consultation Sessions) 5 25 108 1300
Marginal income per session R1.75 R1.750 R18,500 R79,550 R954,600
Revenue 0
Marginal Cost Cost of one session R R 650 R 3,250 R13,000 R156,000
650
Marginal Profit Unit Profit per R1.10 R1.100 R 15,250 R66,550 R798,600
session 0

The healthy profit should be in the region of R1.100 per consultation at full capacity

Financial Accounts
The Close Corporations Act, Income Tax Act, Insolvency Act, requires that proper
Accounting Books be kept. It is recommended as a daily procedure and the books
balanced every month by the 30th /31st. The balances are brought down the 1st day
of the month. Final Accounts are done at the end of 6 months and maybe 12
 BWJ Driving School

months. They are known as Financials. This is history of past events (Historical
Accounting).

Profit Projections
Profit Planning involves the Projections of Monthly Sales minus Monthly Expenses. It
is these small contributions of small gains that give us the total year end profit.
Profitability Analysis

40,000
30,000
Sales
ZAR

20,000
Expenses
10,000
0
J an Feb Mar Apr J un J ul Aug Sep Oct Nov Dec

Financial Period

The strategy for Gaining Profit is to increase the Profit Gap. The common two ways
are:
1. Move Sales Curve higher e.g. by Increasing Price of our services
2. Move Expenses Curve lower e.g by
a. Service costs: improve process efficiency to reduce operation costs
and minimising waste like ink and copy paper,
b. Quality improvement: do things perfectly the first time. A
correction equals loss of opportunity to do the next task so avoid doing the
same job twice.
c. Administration: A simple Quotation and Invoicing system saves time and money
d. Salaries: Work on time to avoid overtime payments
Both these methods assist the business to increase and plan for our profits.

b. Cost Planning
Carefully considering the running costs and looking at the marginal cost, what
makes up every cost and what can we do better to reduce/avoid waste in the
business. This we do so that we can lower operating the costs while we maintain
revenues to increase the profit. Every additional benefit must be priced and
charged to the customer without necessarily making it obvious. We clearly have a
policy that states: we do not subsidise the customer but we give value for money
for every service and we receive value for our efforts and use of our business
resources. We have stringent service costing Policy.

c. Tax Planning
We shall build into the cost of running the business a 28% provision for Tax so that
after deducting all operating expenses the business realises a safe profit without
having trouble with the Collector of Revenues at SARS.
Value added Tax is not an issue to us as most big clients are VAT registered and
VAT exempt so this does not affect our pricing or quotation. The only expense is
paying and accounting for VAT which costs us administration time and costs us
money to do VAT Accounting and bank charges when we make the bank transfers
to SARS.

d. Budgetary Planning
We shall always do budgetary planning so that we properly regulate the use of our
finances and for the moneys spent, we shall set financial performance targets for
the year in question. Variance analysis is a tool which we will use to monitor the
monetary fluctuations in the value of our business. Our Profit and Loss Accounts,
Cash Flow Statements and Management Accounts will be drawn from Month to
Month to track changes and progress so that we have a sound Finance system. This
 BWJ Driving School

will enable us to always have the working capital and cash flow we crucially need to
survive.

e. Profitability Planning
For BWJ Driving School
a. Definition of Profit= Sales minus Expenses.
b. Profitability is a measure of how the resources are fully utilised to make the most
profit for the business owner.
c. We measure the efficiency of use of Capital.
d. We are interested in the Return on Investment (ROI).
e. We are interested whether the profits grow or decline (% growth in Profits).
f. Increase the events that increase profitability-Gross Profit as a % Sales (GPP)
g. Decrease the events that decrease profitability- Ratio of Debtors: Capital
h. The cash invested must give us maximum profit. This profit maximization is our
Profitability.
Total Capital employed in the business is our Input given by:
Materials+Labour+Maintenance+Management is our operating expenses
Throughput is Consultation+Research+Processing applications+customer
liaison+Printing
The approved permit printed and presented in a formal manner is our Output
Input +Throughput =Output

We look at every rand spent; how much more it brings or what percentage it brings.
We make sure that every rand does its job in the business, and everything for
which a rand is spent does its job as well.
A business can still make a profit but not work to the best of its potential. We will
draw up work flowcharts our business activities and periodically inspect the
processes for non-value adding activities, like duplication, waste, bad time
management, theft, inadequacy of training and system bottlenecks that eat away
our profits. Profitability is not luck but a carefully planned and structured event. The
nuts and bolts of the profitability equation are all in the first picture and vision of
the business at the beginning of every calendar year.

f. Financial Efficiency
We shall have our accountants making final accounts and using Financial ratios and
assisting us to be more efficient with our stock, payments, use of Financial
resources so that the Financial input we make gives favourable Financial Outputs in
return.
Some of our tools for measurement will be
The Return on Investment ROI
Return on Capital Employed ROCE.

5. RESOURCE PLANNING

Deployment of Manpower, Machines, Money, Materials, Management and our

Methods
(the Six M’s) shall be in a concerted effort to ensure coordinated teamwork with
common goals and achievements.
Decisions to use not more, not less, but optimum amounts of resources to suit
seasonal markets and purposes will ensure we are well equipment for large
demand and adequately prepared for slump seasons.
We shall plan the quantities of the six M’s so that we can meet client orders in
minimum time, we have staff when duty calls, we have materials and equipment to
 BWJ Driving School

deliver continuous uninterrupted service, and we have working capital for smooth
running and to meet our short term liabilities

a. Anticipated Markets
Market Penetration Phase One -Cape Town
• Business owners and Spouses
• Business Investors and Spouses
• Retirees
• Foreign students and Spouses
• Refugees and Spouses
• Holiday makers
• Work seekers and Spouses
• Immediate family
• Consulates and Embassies
Market Penetration Phase Two-Western Cape
• Other areas in Western Province beyond Cape Town
Market Domination Phase Three
• National

b. Anticipated Processes
To be highly competitive, our processes are based on the Japanese Quality model:
“Good quality, aggressive price strategy, high volumes, market domination”.
To balance quality consistency, customer satisfaction and to continuous
improvement.

Balance of Quality Consistency, Customer Satisfaction & Continuous Improvement

Customer Satisfaction

Quality Consistency Continuous improvement

we have ISO 9001:2000 Standards detailing Policies, Procedures, Forms and Work
Instructions so that every action and every decision in regard to the provision of the
service is in line with service excellence.
The Key Policy Areas are :
 BWJ Driving School

1. Management Responsibility
2. Resource Management
3. Service Realization
4. Measurement, Analysis &
Improvement
c. Anticipated Labour
BWJ Driving School will run a two shift working system similar to all Permit
Assistance businesses. The morning shift will have initially two Immigration
consultants. The length of each shift is 8 hours long. The off days are Sundays and
then a casual worker is hired for 2 days per month.

The shuffling of consultants is to avoid fraud and misconduct due to consultants

doing private jobs and sidetracking much needed revenues to themselves while
using corporate resources and infrastructure.

The company has a strict Restraint of Trade Policy and will charge any perpetrator
for fraudulent misconduct which will carry heavy internal disciplinary consequences
and criminal charges will also be laid on the wrongdoer who will have to face fraud
allegations.

We will continuously have a document to be read and signed to affirm and remind
the individuals that they are under solemn commitment to refrain from professional
malpractice and that they are still under restraint of trade. We shall make a non-
competition payout to validate the restraint should the employee in question leave
the employ after more than 12 months.

Mon Tue Wed Thu Fri Sat Sun

Day Shift 8hours 8hours 8hours 8hours 8hours 8hours
Afternoon 6hours 6hours 6hours 6hours 6hours
Week 1
Shift 6hours

Week 2
Day Shift Shift1 Shift1 Shift2 Shift2 Shift1 Shift1
Afternoon
Shift Shift2 Shift2 Shift1 Shift1 Shift2 Shift2 Week 3

Day Shift Shift2 Shift1 Shift1 Shift2 Shift2 Shift1 Week 4

Afternoon
Shift Shift1 Shift2 Shift2 Shift1 Shift1 Shift2
Roster
change
Day Shift Shift2 Shift2 Shift1 Shift1 Shift2 Shift2
Afternoon
Shift Shift1 Shift1 Shift2 Shift2 Shift1 Shift1

Day Shift Shift1 Shift2 Shift2 Shift1 Shift1 Shift2

Afternoon
Shift Shift2 Shift1 Shift1 Shift2 Shift2 Shift1

As part of our team we will have Immigration Consultants, Marketing Person, Legal
Consultant, Admin Clerk work and a Messenger
.
 BWJ Driving School

Organisation Chart for BWJ Driving School

Eric Akumanyin Co-Directors

Antwi Amanda Opisso

Immigration Immigration Admin Clerk

Marketing
Consultant 1 Consultant 2 Girl Friday Legal consultant Messenger

d. Anticipated equipment
At the present moment we shall utilise the following equipment for the business
i. 2 X Laptop computers;
ii. 2 X Desktop computers
iii. 1X Scan/copy/printer/fax machine,
iv. Large Office Printer
v. 5 X Office Desks
vi. 5 X High-back Office chairs
vii. 2 X Visitors Couches
viii. 1 X Flat screen monitor to run 90second Promos and ads about our services
and benefits
ix. 3 X Office fans
x. 1 X Water Cooler
xi. 1 X Coffee maker
xii. 1 X Microwave oven
xiii. 1 X Pot plant
xiv. 1 X Newspaper and magazine rack
xv. 1 X Coat and Jacket Hanger

e. Capital Expenditure(Capex)

Capital expenditure is expected to be in the region of R180, 000 to cover for

Purchase of additional equipment necessary for expansion and employment
assistant immigration consultants, Fire Safety equipment, Ventilation and Air
Conditioning, Physical (peripheral) Security, Fixtures and fittings for document
storage.

f. Budgetary Planning
Anticipating costs and operating expenses required to yield the planned revenues
and to fund the overall running of the firm both in short run and medium term is
carefully planned using different methods of budgetary planning. Stock and other
low value items we use a Activity Based Budgeting (ABB) approach and for other
contingencies we shall use Zero Based Budgeting (ZBB).

We shall always do budgetary planning so that we properly regulate the use of our
finances and for the moneys spent, we shall set financial performance targets for
the year in question. Variance analysis is a tool which we will use to monitor the
monetary fluctuations in the value of our business. Our Profit and Loss Accounts,
Cash Flow Statements and Management Accounts will be drawn from Month to
Month to track changes and progress so that we have a sound Finance system. This
will enable us to always have the working capital and cash flow we crucially need to
survive.
g. Return On Investment
 BWJ Driving School

The benchmark recognised by Standard bank on its own investments is anything

above 25% return is viable. Our returns shall not go below the 25 points mark on
Total Capital Employed.
Every rand spent must give back at least an extra 25 cents after tax every 12
months. To cover for Taxes we aim to work on ±33% returns so that we may be
able to derive healthy profits, pay back the loan amounts and harvest the yield
while the economy remains favourable and supportive to the business model.

h. Resource utilisation Efficiency

The International bench mark for world class standards is 80% efficiency and many
local companies work efficiently above the benchmark and enjoy many incentives
for high performance. Japanese management advocates for full utilisation of
business operating hours, 100% labour utilisation, usage machine and equipment
to maximum benefit of the BWJ Driving School.

6. OPERATIONS PLANNING

a. Supply factors
These are production capacity and demand based factors that affect the volumes
we can sell and produce. Demand and supply are called market forces. An increase
in demand in the short run causes an increase in supply.
Factors which can cause the demand to rise in our Industry
a. Annual spend on Learner and Driver’s licence applications
b. Family influences: the need to be together often pull relatives and friends to RSA
c. Media influences:(magazines, radio, television, cinema) influence the desire to come to SA
d. The Colonialist Policies such as Witwatersrand Native Labour Act (WNLA) of
1937 saw the procurement of African (so called native) Labour from British
colonies like Besuthuland (now Botswana), Southern Rhodesia (now
Zimbabwe), Northern Rhodesia (now Zambia), Nyasaland (now Malawi) and
Moçambique (now Mozambique). Migration in which job seekers and
refugees come into our country and settle in this city
e. The history and legacy of SA being a regional employment hub for Africa
draws young men and women who then make an exodus into this country
hoping to make a fortune from gainful employment.
f. Alienation due to hunger, disasters, war, dictatorship, oppression, human
rights abuse military rule, tyranny and other political factors influence
immigration to RSA
g. Better medical care causing natural population increase due to lower death rates
h. The pleasant climate fabled to cure Cecil John Rhodes which attracts holiday makers to RSA
i. Affordable lifestyle and better standards of living attract business owners
and investors to stay in South Africa
j. Business opportunities caused by the development and growth potential of
the country attracts foreign nationals to come and reside for a while in RSA
k. Sound foreign policies and leadership in Africa and Latin America frontiers
make it convenient to come to SA to dwell, work, invest, own a business and
study
l. Better education, better discipline and lower cost on global comparison
attracts the rich and famous foreign nationals to enrol their children at our
prestigious schools
Demand & Supply
 BWJ Driving School

D2
Price S1
D1 S2
Shift
P1

Po

D2

S1 D1
S2

Q1 Qo
Quantity

There are changes and shifts in demand. A change in demand can be caused by an
increase in price. A price increase causes a drop in the quantity demanded because
fewer immigrant clients are prepared to pay for the service at the increased price.
The availability of competitor services though typically inferior but cheaper for
example the new and inexperienced in the industry affect the demand side of
things. They have poor turnaround times, easily lose client documents, are
unreliable when it comes to client monies, cannot easily make reimbursements for
unsatisfactory work and clients may need to wait longer to receive their money.
This may pose a cashflow difficulty to clients when the alternative solution needed
to meet DHA deadlines is by quickly turning to a more professional immigration
consultant firm. This implies starting the application process from the beginning
and with the new system in place the turnaround time will double to more than 60
days. To be honest they are ineffective take much longer to deliver and the cost
savings proves more expensive to the customer in the long run.

b. Value Chain Management

Supplier/Service provider - BWJ Driving School Business - Permit /VISA client

relationship

A mutually beneficial supplier relationship is very essential. The business model

shows our suppliers and service providers as business partners because they
provide the essential equipment and services crucial to our business existence. Our
competitive position against other Immigration Consultancy firms relies heavily on
our ability to competitively source reliable service at value added prices from
suppliers and service providers. Larger service providers like Telkom, and large
suppliers like Hewlett Packard can deliver higher quality at lower cost or they may
be monopolies who dominate the price setting. Smaller service providers like
Vodacom and Neotel are always striving for growth in their market share and may
be innovative in terms of new Service development and superior quality service
that gives more returns per rand. New technology, better and cheaper materials
and improved quality may be a competitive factor.
Payment delays on monthly accounts, unreliable turnaround times and
unannounced change of ownership by suppliers and service providers (e.g. mergers
and acquisitions) and a failure to communicate intended price increases are the
 BWJ Driving School

major problems affecting relationships between suppliers/service providers with

businesses.
The organization cannot succeed if it allows such hostile or uncooperative
relationships with its suppliers/service providers.
Since suppliers/service providers comprise an integral part of the business systems,
which an organization needs to manage, creating a mutually cooperative
relationship with suppliers will be a formally managed activity of our business.
The supplier/service provider value proposition should demonstrate an
understanding of the value chain or value adding process to which begins at the
Supplier/service provider and ends with the Final Customer.

Business Partners BWJ Driving School Consumer

Supplier/ Service VA1 VA2 VA3
Provider
Value Add Stage 1 Value Add Stage 2 Value Add Stage Value Add Stage Customer Value
3 3
Dep. Home Affairs Marketing Submission Receiving Document hand
Eskom Needs assessment Follow up documents over Sales Follow
Vodacom ISP Immigration Rectification of Client liaison up
Telkom Assistance Errors Packaging After sales care
Bankers Explain DHA Process Other Documents Invoicing Referrals
City of Cape Town Application forms Customer care Cash Receipt Client information
Stationers Assist to complete Customer care Social Networking
Computer Supplies Photocopy passports Customer care
Webhosting Supporting document
Landlord Customer care
Supplier
Relationship

The supplier needs to treat the customer as King. The customer’s customer as a
king’s King. Suppliers should demonstrate this by giving margins that are profitable
and sustainable for the survival and continuance of the business that further
distributes the finished goods in a market of middlemen (wholesale and retail), sells
against competitor brands and to immigrants in economic crisis.

c. Seasonal Opportunities
Marketing philosophy is the way the business thinks about the a) the company
Services in relation to the consumers.
1. Sales orientation-the sell, sell, sell and make the buyer buy approach! The
problem more customer returns 2. Service orientation-make a Service then
convince the clients it is the best thing to buy; the problem- a ‘hit and miss
business’ can spend lots of money to produce what consumers dislike or a
discontinued Service 3. Marketing orientation-research into the market types,
particular details of consumer needs in each market type evaluate the spending
potential on these needs and wants.

d. Capacity Planning
Our marketing philosophy is marketing orientation. This approach begins with the
market, backward into business operations to create and mass produce the service
package that best addresses specific requirements of a targeted immigrant market.
BWJ Driving School thrives by providing the right service, of the right quality, to the
right customers, at the right price, at the right place, at the right time, and in the
right procedures.

We anticipate fluctuations in the markets as a result of political turbulence, new

policies and incentives and changes in the exchange rates and by general hunch
and intuitive intelligence.

We use desktop research to verify assumptions and ascertain by both qualitative

and quantitative desk research to prove the validity and correctness of the
premises made.
 BWJ Driving School

Decisions are made to down scale or increase staff intake in order to cope with the
imminent demand.

Market Intelligence will be the major driver of operations and this provide the
impetus to marketing to attract the volumes of clients required to meet business
targets. We are planning on 100% capacity and a lower Level variance of 80% in
the case of changes in market forces.

e. Process & Work flow

The Process
The client is attracted to the business through adverts, referrals word of mouth selling,
networking, internet adverts and the client then comes as a walk in or makes an
appointment. On arrival the needs and problems are analysed through an interview
process. A solution is drawn up based on the conclusion and experience of the
immigration consultant. The consultant verifies that the client has legitimate travel or
visitor documents. Next the Immigration consultant ascertains the need to make the
application, and prices the service: at this point qualifying whether the client will be able to
pay or not for assistance with permit or VISA application. On affirmative the Immigration
consultant offers the client the relevant application forms and begins the consultancy
process. The client is asked to produce all necessary documentation and copies are made.
During the time the client is led through the Application process. The client is then asked
to make a 50% down payment for the services to be rendered and the documents and
letters and other paperwork ancillary to the application are type and attached. The
documents are quality checked by two officials to ensure zero error. The client is notified of
minimum delivery times and the business is indemnified from liability due to delays at
Department of Home Affairs or other Embassy or Consulate. The next step is submission of
the application(s).
The company then makes follow up liaison with the relevant authorities while awaiting the
approval application(s).The other liaison is by sms to notify the client of any additional
documents deemed necessary for the application process. On approval the documents are
collected form the relevant office, checked for correctness, any query is made immediately
within an hour and the documents returned within 24 hours for correction. If all is correct
with the documents then the client is contacted to collect the documents and reminded to
bring the outstanding balance with them the end product is a document of proof that the
person in question has been approved to travel/reside in SA/study//work/run own
business/invest in SA. The documents are packaged in a formal white envelope with the
company name: BWJ Driving School and contact numbers and a receipt as proof of full
payment. The client is thanked for doing business with BWJ Driving School and their hand
warmly and assuringly shaken and they are asked to feel free to come back again anytime
and to feel free to bring referral business.

The workflow
• Walk in /Appointment scheduling
• Reception and welcome,
• Waiting to be attended to
• Consultant Interview
• Affirmation of need for assistance and fees payable
• Application forms and down payment
• Document and ancillary paperwork
• Submission of Application
• Follow up and liaison with Department or Embassy
• Collection from Department or Embassy
• Client liaison
• Full payment and handover of document to client
 BWJ Driving School

f. Business Process Improvement

7. QUALITY MANAGEMENT
Management of Quality is a business strategy that we shall employ to eliminate waste
save costs due to substandard output, customer returns and customer complaints that
lead to loss of repeat business. BWJ Driving School believes in doing things right and
doing the right things.
a. Service Excellence
The first aspect of quality management to begins with the suppliers/service providers.
This is careful selection of the best machines, equipment and materials. Quality control
of incoming materials makes sure that they meet our equipment specifications, our
client expectations and operational requirements. Our machines are only as perfect as
the materials we use. Otherwise, it will be garbage-in garbage-out and the Business
sits with client documents we cannot use for applications or administrative work.
Quality planning rests with us to ensure our Services meet customer requirements at
competitive price. Our competitors should spend more money to match our standards.
This means we can afford to price low and get customer preference before
competitors. Quality will involve our processes, our machines and equipment, our
finished Service, our price.
We shall ensure quality in consultation, handling enquiries and customer care. We will
invest in low cost, but effective packaging to avoid soiling, moisture and damage to
documents.
Quality saves operating costs, improves profit margins and keeps customer loyalty.
b. Client Specifications
c. Communication Techniques
d. Standard Documents and Formats
e. Delivery Turn around times
f. Client Base
The following list are the Key Executives who are links to our client base

Democratic Republic of Congo

Ghana Republic
Republic of Zimbabwe Republic of Angola
United States Embassy Republic of Tanzania
German Embassy Republic of Somalia
British High Commission Republic of Uganda
Republic of Mozambique Republic of Zambia
 BWJ Driving School

Republic of Malawi Republic of Nigeria

Orders
We have registered on a number of consulate databases list of Preferred Service Providers
of Permit Application assistance. We have our BEE Verification Certificate, our Tax
Clearance Certificate for Tender and for Good Standing, our VAT Registration in progress.
We have made our value proposition to a number of organisations and have secured a few
orders on start.

Our targets clients include are the nationals from these countries

g. Training & Development

DHA offers Training at a fee every year and the training is easy to understand. Immigration
Consultant training is transferable between trained employees. Customer care and Quality
Management is readily available through Internal Programmes and SETA Accredited
Providers of Education Training and Development.

h. Output and Productivity

Output is set at 6 Consultation sessions per day which equates to 30 Consultation sessions
per week. Client documents shall be filed in document cupboards ready for processing and
submission or handover on collection. Time management shall require the workers to do a
proper shift change, to have air time for their cell phone communications, and beepers for
back up communication. If any member of staff is unable to come to work they should
inform Management 2hours in advance and any failure to do so is a dismissible offence as
it jeopardises customer service level agreements due to failure to deliver right quantities
on time.
Start and stop times shall be adhered to strictly. Operations shall be according to
Procedure and in adherence to Policy by following Work Instruction (W.I).
i. Occupational Safety & Health
BWJ Driving School has a Occupational Safety & Health Policy in line with the Occupational
Safety & Health Act and uses proper ventilation, Fire Protection Equipment and we shall
have a Fire and safety representative trained in Fire fighting and First Aid Treatment and
shall be adequately trained Safety Officers to deal with other disaster situations.

8. DEVELOPING A SALES STRATEGY

a. Sales Forecasting and Planning

Market forecasts are high with the continent destabilised, immigrant numbers high and the
imminence of electrically charged global politics bring greater prospects of business
anticipated to be increased with more pressure to secure residence and asylum and so is
consumer spending. The subsequent global spotlighting of South Africa and the reputation
it has as a refugee destination will boost the Immigration permits industry even more. The
word of mouth effect and the eyewitness tales about the weather and the people of this
country to some will bring more visitors. More events happening in this country will see
more influx into the country.
 BWJ Driving School

Eric’s Permit Marketing Process

Mixed Non-segmented Market

(Heterogeneous Market)

Market Segmentation-Target Markets

(Homogeneous needs)

Research to explore the unknown market and

expose the assumptions about the market

Draw conclusions about findings & develop

competitive Service/operation strategy

Develop a Service that gives maximum

satisfaction of the needs of the target market

Test the Service against different consumers,

different competitor brands, and stockists

Use a new Service strategy and launch the

Service in the market

Generate customer awareness through

campaigns and build customer loyalty

9. Seasonal opportunity
Sales are less sensitive to seasonal influences as is the demand is less variable due to
seasons. Variability is expected as a result of more immigrants coming into our country
with an intention to study, stay, work or start business hence increasing demand for the
Permit Assistance Service.

b. Sales/Profit/Volume Analysis

c. Selling Strategy

d. The Product Lifecycle Strategies

 BWJ Driving School
Sales in Rands

BWJ Driving School Product Lifecycle

R&D Introduction Growth Maturity Saturation Sales Decline Rejuvenation

Sales

Profits

Months and Years

The Product Lifecycle is a powerful tool which BWJ Driving School will use to analyse
market behaviours in terms of customers buying behaviour, middlemen, competitor
brands, competitor prices and to leverage around these in order to remain in the market
and keep market share and Profits.

Our major strategies will variations of Skim Penetration-Strategy whereby we vary the
different combinations of the amount of advertising and price (High/Low).

• High Skimming
• Low Skimming
• Rapid Penetration
• Slow Penetration Strategies

e. Staffing and Motivation

“Marketing is our business attempt to anticipate market trends so that we integrate

the business functions in a total effort to create a bundle of activities that ensure we
gain maximum value form the current markets.”
The business functions include and are not limited to
Research, Operations, Selling, Public Relations, Customer Care, Distribution, Finance,
Staffing and Administration.

Marketing Goals
Marketing our Service involves the setting of marketing goals so that we can develop a series of
actions that will enable us to meet our ultimate business objectives.
Our main goal is to ensure that the sales team meets the sales objectives of the business. Sales
mean pride and dignity of a business and this can be the most rewarding or most embarrassing
issue about a business.

Our Business Objectives

• Market entry through better service offer to clients (efficient hassle free service)
• Shorter order to delivery times compared to competitors (simplified consultation and application
process)
• Sales Volumes through Team Selling, Consultative, Partnership Selling strategies
 BWJ Driving School

• Revenues through better debt collection-within 3 days of invoicing and delivery

• Market share of 1% in line with our business capacity
• Market intelligence & CRM to keep in tune with clients’ thoughts, feelings, wants and needs.
• 0% customer turnover and high Customer loyalty

9. VENTURE RISK ASSESSMENT OF THE LEARNER AND DRIVER’S LICENCE

ASSISTANCE BUSINESS

Our successful strategy for managing business risks is built on a solid foundation of
management-to-worker understanding each other, shared commitment by managers and
workers, and top-down/bottom-up support.

I. To build that framework, our risk management strategy consists of three-

parts
• A risk glossary of terms.
• Processes for identifying, analyzing, planning, monitoring, and controlling risks.
• Identifying the tools and techniques that would support the framework.

The definition of a risk typically covers three areas: an event in the future, a potential
threat, or a potential opportunity. The definition that we adopted was as follows:

II. Every risk consists of three components:

• An event
• A probability of occurrence
• An impact
a. A risk event is a statistically possible future occurrence that may affect the business
for better or worse. It could be a wanted event, an opportunity with a potential positive
impact, or an unwanted event or threat with a potential negative outcome. BWJ Driving
School has to answer the question: What could happen, good or bad, to our venture?
b. Probability is the likelihood that this event will happen. We could express it as a
number value between 1.0 (certain to happen) and 0 (impossible). We could also
express it as a qualitative rating such as high, medium, or low. Frequently, we used
quantitative and qualitative ratings interchangeably.
c. Impact is the consequence of the risk, if it occurred. We could express it as a
qualitative rating such as high, medium, or low. We could also express it as a
numerical measure between 0 (not serious) and 1.0 (disaster).

III. The major risks, to which the business is exposed, are set out below:

• Credit risk; Compliance risk;

• Country risk; Taxation risk;
• Liquidity risk;
Loss of insurance cover risk
• Market risk;
Reputational risk;
• Operational risk;
Business risk.

A combination of these risks occurring concurrently would be the most likely cause of
significant loss. The firm’s approach to managing risk on a holistic basis therefore
ensures that risk types are not managed in isolation.

IV. Risk management approach

The firm’s approach to risk management is based on a well established management
process and relies both on individual responsibility and collective oversight,
supported by a reporting system. This approach balances strong management
oversight at business level with independent consultancy structures.

V. Risk responsibilities and governance structure

Due to the nature, simplicity and risk inherent of BWJ Driving School's activities, a
simple risk management structure is in place to ensure adequate oversight.

Risk appetite and risk tolerance

 BWJ Driving School

Risk appetite is the quantum of risk BWJ Driving School is willing to accept in the
normal course of business in pursuit of its strategic and financial goals. Risk taken
within appetite may give rise to expected losses, but these should be sufficiently
more than expected earnings.
Risk tolerance is an assessment of the maximum risk the firm is willing to sustain
for short periods of time. Emphasises is on the downside of the risk distribution, and
the firm’s capacity to absorb unexpected losses. The capacity for unexpected losses
is dependent upon having sufficient capital and liquidity available to avoid
insolvency. Risk tolerance typically provides an upper boundary for the group’s risk
appetite.

a. Diplomatic Relations
Diplomatic relations may be easily strained due to a minor event and governments
may go to war over a decision made irrationally or even without considering the
impact or the consequences of the impact.

b. Competitor Retaliation
The immediate risk due to the competitors would be price wars, large suppliers
forming cartels where there can be price fixing, more competitive Service strategies,
cost efficiencies due to economies of scale, efficient distribution strategy that would
lower competitor costs and hinder profitable sales, market entry, and generally
tougher marketing strategy. Competitors can ignore minor activity form isolated
small competitors but will definitely respond to the pack of wolves with a massive
blow that would make marketing life uneasy.

c. Deregulation of Conditions

d. Internal Business Risk-Operations Threats

Business Operations may be disrupted due to power supply problems, increase in
power tariffs and surcharges for excess usage. New technology might supersede
existing technologies at a rate faster than our breakeven point and repayment
period. The processes may become too expensive to maintain at current prices.
e. External Business Risk
Bad Publicity
Bad publicity is one issue every business cannot avoid since it is impossible to
control what comes from a human mouth and neither can anyone anticipate
human reactions to improperly resolved business to client issues.
Theft
Pilferage or theft from business is an issue that devastates the business progress
by reducing profits little by little or one time as a major robbery.

Labour Action
Strikes and labour action are a prevalent event in nowadays in this country.
Industry norms are now a serious matter as labourers are even manhandled by
picketers if they attend work during strike action. Strikes may be in essential
services and may hinder the fulfilment of client applications in any manner.
Vandalism
Vandals, arsonists, and saboteurs can deface and bring equipment and premises
to bring business to a standstill.

f. Legislation and pressures of compliance

Immigration legislation is ever changing because of abuse of the system, changes in
global trends, diplomatic relations, changes in foreign policies, treaties and
agreements reached, trade relations to accommodate our trade partners and
international investors. Trends in the international relations cause drastic measures
to be taken in the form of new policies to prevent bad practices. There are other
pressures that are bound to surface that may not necessarily be about compliance,
but may affect operations but may affect other ways of doing business.

10. Risk Mitigation Strategy

Our risk management framework consisted of the following processes:
• Risk management planning: Deciding how to approach and plan the risk
management activities for identified business aspects.
 BWJ Driving School

• Risk identification: Determining which risks might affect the business and
documenting their characteristics
• Risk analysis: Examining the risks in detail to determine the extent of the risks,
how they relate to each other, and which are most relevant
• Risk response planning: Developing procedures and techniques to enhance
opportunities and reduce threats to the business’s objectives
• Risk monitoring and control: Monitoring residual risks, identifying new risks,
executing risk reduction plans, and evaluating their effectiveness throughout the
project life cycle
• Risk documentation and communication: Documenting and communicating risk
information to facilitate the decision-making process

Risk Avoidance and Risk Planning

• A more effective investment has been in taking business insurance with Mutual
and Federal Insurance to cover the business-to-business liabilities.
• We have our own aggressive marketing strategies including our advanced
technologies in order to sustain Competitor Retaliation.
• We have tapped into social network markets I n order to be in tune with market
changes and changes in consumer behaviour. We have invested in open source
software to run a cost effective Customer Relationship Management (CRM)
system in order to keep track of customer patterns and to have the data readily
available for immediate analysis at the push of a button.
• We have sound Financial and Operations management policies for maximising
our returns. Essentially twined together to the two policies is our loan repayment
policy to ensure the equipment is paid up at the earliest date while keeping our
liquidity. We aim to constantly upgrade our equipment to keep at pace with world
class service delivery benchmarks of competitors. Threats to operations are
usually customer , legislation, politically oriented.
• By keeping ourselves online to www.sagov.org.za, attending seminars and
workshops, liaising with the DTi, business networking and belonging to
competitors associations we will keep ourselves informed of any changes in the
legislation affecting our industry, our suppliers or the partners in our business
model. We will attend Parliamentary Draft hearings and take part in the shaping
of our economy so that our business response is prepared for the new and
upcoming rather than have a panic attack every time new policies are
implemented. We shall pursue highest cost effective compliance standards and
be leaders rather than followers in compliance.
• We have a public relations and a corporate social investment Programme to keep
interactive relationship with our communities. Every business is prone to
negative Publicity but a good public image masks many. We aim at a corporate
image which will be favourable as best as we can to our clients and our markets.
• We shall invest in security surveillance cameras with an offsite server for the
peripheral security guard armed response 24hours a day, seven days a week.
There shall be panic buttons for immediate armed response. This will greatly
reduce robberies and theft
• Peripheral security will deter vandalism and our supervisors, closely monitor the
workers to deter sabotage.
• Loss of production and a subsequent loss of sales by business, inability to meet
contractual obligations due to Labour Action will be met by our Insurance Cover.

11. FUTURE PATTERNS

a. Web based Business
A successful e-Strategy for BWJ Driving School involves competence by the
entrepreneurs to manipulate It based products dominantly used by web businesses.
A quick course or training excursion for the two owner-managers will push them to a
higher level of thinking that will take their business to a higher level of business.
Agile use of technology is set to enter our markets as we are inevitably in a Web 2.0
generation. The need for survival has swung business focus on the hype cycle of
Enterprise 2.0 technologies so that the business has the necessary network support
data, business intelligence analytics and the relevant metrics and dashboards to
indicate the course and state of business to enable intelligent decisions to be made
 BWJ Driving School

more accurately, using the most valuable resource to the firm: it’s information about
clients (CRM), markets, supplies, operational performance. The ability for clients to
visit our website, download or communicate with us without using any Graphic user
interface (GUI) based programme like Microsoft Outlook 2007/Outlook Express or
their Gmail, Webmail , Yahoomail etc but simply complete their information on the
spaces provided and press the send button with the result of an auto reply email or
auto reply text message for South Africa mobile number beginning with “+27....... “
acknowledging their enquiry and promising a response as the soonest possible time.
Macromedia flash player is another way of uploading information in a format which
the client cannot easily copy and imitate. Information is presented more
professionally and clearly and in format which is more dynamic than video and far
more superior than conventional static Html, Xhtml. This guarantees more hits on the
webpage.
b. Online Customer Registrations
Consumers thrive on service quality, value for money and time saving. Anything be it
a 3-D product, or a distinguishable service that bears a brand and logo of any
company is judged alongside any brand the customers can get their hands on. These
are customer feelings and transcend the realms of our daily lives without regard for
place, money and time: typical to this is browsing a state of the art website of a
blue chip company with a top notch e-Strategy only to return to a dull
unprofessionally designed website, that is crowded, uninteractive, time and
bandwidth wasting. Customers still make perceptual differentiation of the quality
thresholds of each scenario whether this is done consciously or subconsciously.
Bandwidth does not come cheap so the design of web based business processes
should be designed around customer traits and behaviours.

c. Social Network Marketing

The future technologies imply easier and speed of light communication that transfers
moods sentiments and feelings globally to many individuals simultaneously and
cumulatively within a short space of time. Mobile internet, more homes with
broadband, cheaper internet, free public internet provided by government implies
more social networking. This combined with high literacy levels implies more social
awareness on Global and environmental issues. We are in the business that cuts trees
to make paper and we are under the watchful eyes of the global public. Our proactive
stand on consumer education, conservation, tree planting, and other social investment
will be an investment in to some sort of grace period and that might come useful.

d. Virtual Customer Services

Macromedia flash adds another dimension to web business in the Enterprise 2.0 age.
Virtual customer services including avatars of our business premises, virtual shopping
bags, and carts enable the clients and prospects to pick and choose the services they
want and to add them to their online shopping carts, make online payments. Web
interface through servers on an Xhtml platform using flash can enable a virtual
customer care service. Intelligent database of common queries are mad in such a way
that most queries are aligned with some common phrase or words and near correct
responses are connected to the response so that text to speech is generated to answer
the online query. The high quality graphics for the virtual customer care figure
emulates gesture, and other non verbal communication or body language. The high
quality audio is crystal clear and closely resembling real human voice, while is still
carries the soft innuendoes of a techno gadget which is what accentuates the
excitement of it all.

e. Credit card payments

Secure online payments is a version of Robert Kiyosaki’s pipeline building where the
website brings money into the business bank account without much effort to physically
influence customer purchase decisions. PayPal, SecurePay, and VeriSign are a few of
the trusted brands. Hackers non the less are ingenious in their attempts to undermine
the payment security over the web. One ingenious collaborative act was the joining
together of more than 20 ’Playstation 3‘s’ to simulate the collisions made during a
PayPal online credit card transaction. These unique collisions differentiate one credit
card from a specific banker with another from the same banker or from different
banker who may even be from another part of the globe. Sadly the hackers succeeded
as they always finally do in the end.

f. Offshore Business
 BWJ Driving School

Our own waters proffer limited opportunities for growth through limited scope of
performance, slow paced pulse of business and markets in general and inadequate
structures for consumer credit. The global village accessed through the World Wide
Web opens doors to offshore business and offshore risk. The ability to count revenues
in Euro, the British Pound and the American Dollar while sitting at our doorstep in our
own hometown.

g. International Laws

International Laws are very unpredictable, are not subject to debate by foreign
countries are the forte and domain of the Sovereign nation, republic, Royal Kingdom or
monarchy. Their change affects normal patterns, established methods and procedures.
Our own internal processes will need to be changed to customise our business in
adaptation to this changed environment.

12. TECHNOLOGY

a. Equipment and peripheral devices

Technological equipment , peripheral devices and other artefacts play a huge role
firstly to demonstrate the strength and success of the business through the assets we
have amassed due to that service that we have given in the past. It also assures the
client of quality and professionalism and portrays our environment as a classy and
competitive place of business worthy to be associated with.

b. Enterprise Solutions
More and more smaller businesses are investing in enterprise softwares either through
government grants or through OpenSource software that is wittingly customised to
suit the business system of doing things. This brings with it the benefit of system based
standards like ISO 9001:2008 for all documents and procedures .

c. IT Security
Information security and data integrity, are the key critical issues of doing business.
Information is a valuable resource, its significance is priceless and its compromise a
huge embarrassment and maybe even loss of reputation (goodwill). In International
business where the adoption of the Sarbanes Oxley Act of the USA in a must, loss of
information may be a fraudulent excuse to eliminate criminal evidence of fraud and
illegal activities within the business. Under normal circumstances data is archived in
the sequence of grandfather, father, son generations of how old information should
be kept. Any deletion or loss due to virus attacks should be detected and prevented.
d. Networking

The computers should be linked as a single LAN Network which is connected to one
database. Thi will enable data management, real time processing and automatic
updates, and better sharing of files folders and information.

e. Remote Access & Unified Communication

Remote access is a latest trend that enhances business efficiency even when staff and
management is off duty, due to sickness, by leave of absence, AWOL which may
include being out of town or out of the country.

13. INNOVATION
a. New Service ideas
New services and ideas are either through deliberate research and development
attempts, company innovation strategy which may involve innovation forums, team
incentive and prizes for innovation and creativity. Customers may even bring new ideas
into the business and apporproiate finders fees must be carefully structured to reward
the clients for their income generating or cost saving suggestions.

b. New market development

The same principles of innovation apply in new markets anu test marketing and
product testing policies must be justifies and qualified before huge expenditure can be
plunged into uncertain markets.
c. Green Business
 BWJ Driving School

Every responsible business is gearing towards global sustainability.

Critical and burning issues for every CEO all around the globe is
The energy efficiency on electricity, and fossil fuels as consumed by their business
model
Environment friendly-can use recycled paper
Versatility of machines and due to their capability to use biodegradable materials,
Extended service warranty
High service capacity and longer service runs on minimum maintenance and service
User friendly, means fewer reprints, lesser and inexpensive training
Service of high grade and quality
Low risk in terms of Occupational Health and Safety

d. Financial

Cost Model Profit Model Revenue Model

Daily consultations
Days
Monthly consultations
Per Sesion

Golden Harvest Profits

Green Revenues

Red Costs

e. Finance Strategy
The business strategy is to work on a net Return on Investment of above 25%. The
Return on Investment should take into consideration
Cost of Capital which is Interest ±11.5% per annum
Corporate Taxation of 28%

Continual monitoring of financial performance through Variance analysis and

reporting of changes in Cash Inflows and Cash Outflows by means of Management
Accounts will enable and encourage consistent monitoring.
Simplicity and clarity will enable quick referencing, ease of reading and participative
involvement in the business affairs on a daily basis.

The loan repayment shall be entirely from the business and this shall be insured
against any unforeseen events including sickness and disability. The loan Strategy is
to repay the loan in a shorter period in order to reap the benefits of early payment
that comes in the form of low total interest paid.
BWJ Driving School