Integrated Accounting Narrative
INTEGRATED ACCOUNTING NARRATIVE
Business Strategy Document – Express Courier Service
1.0 Opportunity
The express courier industry for small to large packages can be divided into two groups; large international multi-diversified companies and small local operators. There is a current need for further capacity in the provision of courier services for medium – large boxes (spare parts, equipment, furniture etc) within the Sydney metropolitan area. The large international courier companies fulfill most of these orders however charge a premium price because of their strong brand in the marketplace. The background of the four owners of the business comprise the skills necessary to run a successful; commercial law, industry knowledge, customer relations, and accounting/finance. 2.0 Business Structure
The venture will be set up as a private company in accordance with the Australian Corporations Law requirements and ASIC pronouncements. Share capital will consist of 100,000 shares of $1.00 each par value. The ownership of the company is shared equally between the four owners. 3.0 Industry Structure
Three large firms with 70% of the express courier market in the Sydney metropolitan area, and the remainder market share is shared amongst a significant number of small owner/managed firms. The large firms account for even higher market share of the express courier service for larger items (i.e. medium-sized boxes & up). 4.0 Start-up Priorities
Several clients have been earmarked for initial services. A few offices have also been selected as possible sites for the Head Office. Once Head Office is set up, two delivery vehicles / computer equipment /delivery supplies will be purchased with the initial capital contributions from owners and then drivers will be employed to commence the delivery service. Further investigation will be made into buying vs. leasing of additional delivery vehicles. Advertising will not be undertaken until all pre-existing business contacts
Business Strategy Document – Express Courier Service
1.0 Opportunity
The express courier industry for small to large packages can be divided into two groups; large international multi-diversified companies and small local operators. There is a current need for further capacity in the provision of courier services for medium – large boxes (spare parts, equipment, furniture etc) within the Sydney metropolitan area. The large international courier companies fulfill most of these orders however charge a premium price because of their strong brand in the marketplace. The background of the four owners of the business comprise the skills necessary to run a successful; commercial law, industry knowledge, customer relations, and accounting/finance. 2.0 Business Structure
The venture will be set up as a private company in accordance with the Australian Corporations Law requirements and ASIC pronouncements. Share capital will consist of 100,000 shares of $1.00 each par value. The ownership of the company is shared equally between the four owners. 3.0 Industry Structure
Three large firms with 70% of the express courier market in the Sydney metropolitan area, and the remainder market share is shared amongst a significant number of small owner/managed firms. The large firms account for even higher market share of the express courier service for larger items (i.e. medium-sized boxes & up). 4.0 Start-up Priorities
Several clients have been earmarked for initial services. A few offices have also been selected as possible sites for the Head Office. Once Head Office is set up, two delivery vehicles / computer equipment /delivery supplies will be purchased with the initial capital contributions from owners and then drivers will be employed to commence the delivery service. Further investigation will be made into buying vs. leasing of additional delivery vehicles. Advertising will not be undertaken until all pre-existing business contacts