22 Nov In this assignment, you will compile the paper together, to meet the requirements. Perhaps two extra smart goals may need to be added (1-2 pages). This is to be written from 3rd perso
In this assignment, you will compile the paper together, to meet the requirements. Perhaps two extra smart goals may need to be added (1-2 pages). This is to be written from 3rd person perspective.
** Need this by Friday, 11/24 by 4 pm CST (US Central Standard Time)
Instructions: This minimum 10-page paper will incorporate the feedback you have received from your instructor on your first two drafts from the previous weeks including a problem statement, the background of the problem/opportunity, goals, and objectives as well as the feedback you received from your team on the financial aspects that you shared with your them last week. You will be halfway done with your paper after this week Content Outline: • Cover page • Problem/opportunity Statement (Approximately one to two paragraphs) • Background of this issue (Approximately one page) • Goals & Objectives ( Full paragraph form 6-7 pages) o Goal 1 4-5 SMART objectives o Goal 2 4-5 SMART objectives o Goal 3 4-5 SMART objectives o Goal 4 4-5 SMART objectives o Goal 5 (optional) 4-5 SMART objectives (optional) • Financial & Quantitative Analysis (3-4 pages) • Financial models/reports/data and measurement
Gabriel A. Nunez Unit 2.2 Assignment: Capstone Outline & Business Proposal/Plan
Concentration: Supply Chain Management
Malcolm Baldridge School of Business
BUS 700: Capstone
November 5th, 2023
Tentative Topic Title: Renting out vehicles utilizing a ride sharing platform that exist on the web and application for people to rent in the Houston area.
Target Organization: G&G Liberty
G&G Liberty, they are a car rental business that provides users with a peer-to-peer car-sharing platform for individuals to rent cars in Houston Texas and follows the principles of the shared economy approach. Utilizing Turo, a web and application platform that streamlines the car rental process, offering a wide range of vehicles, flexible rental options, and efficient payment and reservation systems while earning commissions from these transactions. Turo was selected by G&G Liberty due to the fact that of its brand and wide customer base reached all of the United States.
What is the Problem or Opportunity:
I propose to complete a feasibility report to explore the financial viability of a peer-to-peer car-sharing rental business model. The proposed rental business model revolves around earning commissions from rental transactions between app users. The purpose of this report is to assess the potential for success, identify key challenges, and outline a preliminary plan for the business under this specific context. Also, Peer-to-peer car sharing is a rapidly growing market segment within the rental industry. This business model provides an efficient alternative to traditional resource-hungry rental business models as it leverages shared economy principles through an app-based platform, and I would like to explore some of the market capabilities to produce maximum customer demand.
Case for Change (Why do it?):
I have selected this topic due to figuring out a way to get vehicles that have low mileage and cheaper than normal. Once I did some research, I found out that the peer-to-peer care-sharing market size reached US $1.6 Billion in 2021 and is expected to reach US $7.2 Billion by 2023. The market size is expected to grow with an annual growth rate of 17.6% from 2022-2030 ( P2P car-sharing market size, and Demand Insights, 2022-2030, n.d.). The sharing economy, including peer-to-peer car sharing, is a rapidly expanding market globally. It represents an opportunity for individuals to monetize their underutilized assets and for consumers to access convenient services. When I came up with the idea to venture into this type of business I felt that since Houston has two large airport on the north and south part of the city, there would be a steady customer demand base always generating positive cash flow.
MBA Concentration & Topic Format:
My concentration is in Supply Chain Management, I selected it because I have over 22 years of experience in that field. I have decided to create a business plan and target it with a feasibility report to help improve my business. This report is to assess the potential for success, identify key challenges, and outline a preliminary plan for the business under this specific context. This course will help me by sharpening my skillset and creating financial objectives and analysis on investments that would help with the success of my business.
Program Content: I plan to use several program concepts which I have learned throughout my MBA journey. These concepts consist of a feasibility report including an introduction, marketing aspect, the management aspect, the operational aspect, the financial aspect, the economic aspect, and the conclusion. These concepts will include several different types of analysis capturing a clear picture of the business which are all essential parts of my MBA program learning objectives.
Innovation would be introduced into G&G Liberty’s giving them an edge against their competitors which would be demonstrated through its project selection. Key competitors in the peer-to-peer car-sharing industry include Turo, Getaround, and Zipcar. The rental app business must differentiate itself from its competitors through the use of technology or optimization of delivery of services while beating the competitor’s usage prices.
Outcomes & Quantitative Thinking:
The project is not susceptible to appropriate financial analysis and quantitative measurement to evaluate its success and performance, revenue will primarily be generated through commissions on rental transactions, advertisements, and promotional collaborations with advertising platforms. We expect a 15% increase in the number of users and income on a year-on-year basis as the popularity of the app rises. The business is expected to reach profitability within the second year of operation, considering initial investment and operating expenses.
Such measurements could be demonstrated in the following methods:
Key Performance Indicators (KPIs):
Commitment rate: Measure the percentage of trips you accept. Track how often G&G Liberty meets or exceeds delivery to the customer.
Revenue Growth: Monitor the organization's revenue growth, analyze how this revenue stream contributes to overall growth and financial stability.
Customer Satisfaction: Use customer satisfaction reviews to quantitatively measure customer happiness and identify areas for improvement. High satisfaction scores can lead to repeat business and referrals and give you a 5-star host rating.
Cost Efficiency: Measure cost-efficiency by comparing operational expenses to revenue generated. Ensure that the business maintains a healthy profit margin while offering competitive prices.
Break-Even Analysis: Use quantitative analysis to determine the point at which the project becomes profitable and how much revenue needs to be generated to cover initial costs.
Cash Flow Analysis: Quantitatively analyze the organization's cash flow to ensure it has sufficient liquidity to meet operational and financial commitments, especially in case of unexpected setbacks.
G&G Liberty has proposed an initial financial investment limit of $50,000.
Cost Allocation Breakup
Operations and Maintenance
Marketing and Promotion
Customer Support and Operations
Legal and Regulatory Compliance
Quantitative Comparison: Quantitatively compare G&G Liberty’s performance with that of another ride share host. This can highlight areas where G&G Liberty excels and areas for potential improvement.
Defining Success: Defining the success of the G&G Liberty’s involves setting clear, measurable objectives and regularly assessing the organization's performance goals. A few of the goals that need to be assessed are as follows:
· Target Market
· Market Size
· Revenue Projection and Profitability
The proposed business model is expected to be a profitable business venture provided that the proposed app differentiates itself from the competitors through innovative technology and seamless delivery of services.
P2P car-sharing market size, and Demand Insights, 2022-2030. P&S Intelligence. (n.d.). https://www.psmarketresearch.com/market-analysis/p2p-carsharing-market#:~:text=Market%20Overview,17.6%25%20during%202022%E2%80%932030.
Goldman, S. (2008, 05).The North American Carsharing Industry Zipcar, Inc. and 3 Major Competitors. https://portfolio.du.edu/portfolio/getportfoliofile?fiuid=73397.
Enterprise Carshare – Hourly Car Rental and Car Sharing. (n.d.). Retrieved fromhttps://www.enterprisecarshare.com/us/en/home.html.
Gabriel A. Nunez
Unit 3.3 Assignment: The Capstone Project II: Goals & Objectives
Concentration: Supply Chain Management
Malcolm Baldridge School of Business
BUS 700: Capstone
November 12, 2023
Transforming Car Rental: A Peer-to-Peer Car-Sharing Platform for G&G Liberty in Houston
Problem or Opportunity
The peer-to-peer car-sharing market has emerged as a dynamic and rapidly expanding segment within the broader transportation industry. With a projected value of $7.2 billion by 2023, this market's growth signifies a fundamental shift in how individuals approach car rental services. G&G Liberty, recognizing its substantial market potential, seeks to position itself as a key player in Houston's shared mobility landscape. The opportunity at hand is to tap into the rising demand for convenient, flexible, and cost-effective transportation solutions (Valaštín, Košt’ál, Bencel, & Kotuliak, 2019). By embracing the shared economy principles through the Turo platform, G&G Liberty aims to facilitate a seamless connection between car owners looking to monetize their underutilized vehicles and consumers seeking on-demand and app-based car rental services.
The core of this opportunity lies in addressing the evolving preferences of modern consumers who increasingly value accessibility and efficiency. G&G Liberty's envisioned platform aims to provide a solution beyond traditional car rental models, offering a technologically advanced and user-friendly interface. This approach aligns with the broader trend of shared mobility, where individuals seek alternatives to traditional ownership and embrace accessing resources as needed (Svangren, Brereton, Skov, & Kjeldskov, 2019). By creating a platform that streamlines the rental process and incorporates the principles of the shared economy, G&G Liberty not only facilitates a means for car owners to generate income from their vehicles but also caters to the growing appetite among consumers for app-driven and hassle-free car rental experiences.
The traditional car rental industry is experiencing a profound transformation driven by the emergence of peer-to-peer car-sharing platforms. Companies like Turo, Getaround, and Zipcar have disrupted the conventional model by connecting car owners willing to rent out their vehicles with individuals seeking short-term rentals (Svangren, Brereton, Skov, & Kjeldskov, 2019). This shift signifies a broader societal move towards the shared economy, where the emphasis is on optimizing the utilization of assets, such as cars, through collaborative consumption.
The traditional paradigm of owning a vehicle outright is gradually replacing a more efficient and sustainable approach, aligning with contemporary trends emphasizing access over ownership. As a result, the peer-to-peer car-sharing model has gained traction, reshaping the dynamics of the transportation industry (Vélez, 2023). The success of G&G Liberty's venture hinges on several critical factors. Strategic planning is essential to negotiate the intricacies of the changing car-sharing ecosystem and understand the demands of both car owners and renters. Effective implementation entails developing a streamlined, user-friendly platform that promotes simple transactions and builds user confidence.
Staying ahead of the competition regarding creativity and customer experience is critical to differentiating G&G Liberty and ensuring long-term success. G&G Liberty wants to not only ride the tide of change in the automobile rental sector but also set new benchmarks for efficiency, accessibility, and customer pleasure by aligning with shared economy principles and personalizing services to match the unique demands of the Houston market (Vélez, 2023).
Overarching Goals and SMART Objectives
Goal 1: Establish a Robust Peer-to-Peer Car-Sharing Platform
Objective 1: Develop a user-friendly mobile application integrated with Turo, ensuring seamless navigation and transaction processes by Q2 of Year 1.
Creating a user-friendly mobile application is paramount to the success of G&G Liberty's car-sharing platform. By focusing on user-friendly design and functionality, G&G Liberty aims to facilitate easy navigation within the app, ensuring that users can effortlessly locate and reserve vehicles (Byun, Yang, & Chung, 2020).
Objective 2: Collaborate with Turo to customize the platform for the Houston market, considering local preferences, regulations, and specific user needs, achieving completion by Q1 of Year 1.
Customizing the platform for the Houston market is crucial for G&G Liberty to resonate with local users. This objective involves strategically collaborating with Turo to tailor the platform to Houston's unique characteristics, considering local preferences, regulations, and specific user needs.
Objective 3: Implement a comprehensive onboarding process for car owners and renters, including identity verification, vehicle inspection, and insurance validation, ensuring a secure and trustworthy platform by Q3 of Year 1.
Ensuring a secure and trustworthy platform is paramount for the success of G&G Liberty's car-sharing initiative. This objective entails implementing a thorough onboarding process for car owners and renters. Key components include identity verification, vehicle inspection protocols, and insurance validation procedures. By establishing a robust onboarding system, G&G Liberty aims to instill user confidence, fostering a sense of security and reliability.
Objective 4: Conduct user testing and gather feedback to refine the platform continuously, aiming for a minimum 90% satisfaction rate among users by the end of Year 1.
Continuous refinement based on user feedback is integral to the success and evolution of G&G Liberty's car-sharing platform. The target of achieving a minimum 90% satisfaction rate by the end of Year 1 underscores G&G Liberty's dedication to providing a service that meets and exceeds user expectations (Hoyer, Kroschke, Schmitt, Kraume, & Shankar, 2020).
Objective 5: Develop strategic partnerships with local influencers and businesses to enhance platform visibility and attract a diverse user base, achieving a 20% increase in registered users by the end of Year 1.
Building a diverse and engaged user base is critical for the success of G&G Liberty's car-sharing platform. This objective focuses on developing strategic partnerships with local businesses and influencers to enhance the platform's visibility. By leveraging the reach and influence of local entities, G&G Liberty aims to attract a broader audience.
Goal 2: Ensure Regulatory Compliance and Legal Framework
Objective 1: Conduct a comprehensive legal analysis to understand and comply with local and state regulations related to peer-to-peer car-sharing, completing the analysis by Q4 of Year 1.
This objective involves thoroughly examining local and state regulations pertinent to peer-to-peer car-sharing, ensuring that G&G Liberty operates within legal boundaries. By conducting a comprehensive legal analysis, the company aims to gain a deep understanding of the regulatory landscape by Q4 of Year 1. This proactive approach demonstrates G&G Liberty's commitment to compliance from the outset, mitigating legal risks and laying a solid foundation for the venture.
Objective 2: Establish partnerships with legal advisors and regulatory authorities to ensure ongoing compliance and stay updated on legislative changes, maintaining a 100% compliance rate.
Building partnerships with legal advisors and regulatory authorities is crucial for G&G Liberty's continuous adherence to evolving legal frameworks (Van Loo, 2019). This objective seeks to develop ongoing relationships that enable the firm to stay abreast of any legislative changes affecting the peer-to-peer car-sharing industry.
Objective 3: Develop a transparent and clear policy framework for users and communicate it effectively through the platform.
G&G Liberty aims to create a comprehensive policy framework covering key areas such as insurance coverage, liability, and dispute resolution to ensure user trust and compliance. This objective emphasizes the significance of clear and transparent communication of these policies through the platform.
Goal 3: Build a Strong Brand Presence in Houston
Objective 1: Develop a targeted marketing and advertising strategy, utilizing offline and online channels, to attract a minimum of 10,000 app downloads by the end of Year 1.
This comprehensive strategy will leverage digital platforms, traditional advertising channels, and local events to maximize reach and engagement. Achieving this target establishes a solid foundation for G&G Liberty's brand recognition and user base, fostering a strong initial connection with the Houston market (Lesscher, Lobschat, & Verhoef, 2021).
Objective 2: Implement a customer loyalty program, offering discounts, rewards, and exclusive promotions to encourage repeat business and positive word-of-mouth, aiming for a 30% increase in repeat customers by the end of Year 2.
Building on the initial user acquisition, G&G Liberty seeks to cultivate customer loyalty through a targeted program. This objective involves the implementation of a customer loyalty initiative, providing incentives such as discounts, rewards, and exclusive promotions to encourage repeat business.
Objective 3: Use social media platforms to engage with the local community and share user testimonials, achieving a 50% increase in social media followers within the first six months.
This objective involves leveraging social media for community building, sharing user testimonials, and highlighting the unique benefits of peer-to-peer car-sharing. This engagement strategy enhances brand visibility and facilitates direct communication with users, fostering a positive and interactive relationship with the local audience (Appel, Grewal, Hadi, & Stephen, 2020).
Goal 4: Ensure Financial Sustainability and Profitability
Objective 1: Conduct a detailed financial analysis to determine a sustainable pricing model, achieving breakeven within the first 18 months of operation.
By conducting a detailed financial analysis, including meticulous cost projections and revenue forecasts, the company aims to determine a sustainable pricing model. The target of achieving breakeven within the first 18 months signifies a strategic approach to financial sustainability.
Objective 2: Explore opportunities for additional revenue streams, such as advertisements and partnerships, to diversify income sources and enhance overall profitability.
This objective involves identifying and capitalizing on opportunities for partnerships and advertisements. This strategic approach aligns with the goal of creating a well-rounded and financially sustainable business model that can adapt to changing market dynamics.
Objective 3: Implement cost-efficiency measures, including optimizing operational expenses and negotiating favourable terms with service providers, to maintain a healthy profit margin of at least 15% by the end of Year 2.
By carefully managing costs and maximizing operational efficiency, the company aims to build a financially resilient platform that can weather industry challenges and sustain profitability over the long term (Rathnasiri et al., 2022).
Goal 5: Foster a Culture of Continuous Improvement
Objective 1: Establish a dedicated customer support team equipped with the necessary tools and training to address user inquiries, complaints, and feedback promptly, achieving a 95% customer satisfaction rate within the first year.
This objective strongly emphasizes customer satisfaction by establishing a dedicated and well-equipped customer support team. G&G Liberty aims to ensure prompt and effective resolution of user inquiries, complaints, and feedback by providing the team with the necessary tools and training.
Objective 2: Implement a continuous training program for employees, focusing on technological updates, customer service skills, and industry best practices, ensuring that the team remains well-equipped to adapt to changes and challenges.
To maintain a high level of expertise within its workforce, G&G Liberty plans to implement a continuous training program. This approach enhances employee satisfaction and ensures that the company remains agile in a rapidly evolving industry.
Objective 3: Conduct regular internal audits and performance evaluations to identify areas for improvement and innovation, fostering a culture of continuous learning and adaptation.
By fostering a proactive approach to learning and adaptation, the company can respond swiftly to emerging trends, customer feedback, and industry developments (Christ, Eulerich, Krane, & Wood, 2021). This objective creates a dynamic organizational culture that values learning and growth, positioning G&G Liberty as an adaptive player in the peer-to-peer car-sharing market.
Specific and quantifiable aims and objectives lead G&G Liberty's entry into the Houston peer-to-peer car-sharing sector. This initiative's success depends on execution, technical innovation, regulatory compliance, and a customer-centric strategy. By fulfilling these objectives, G&G Liberty hopes to establish itself as a market leader in the Houston car-sharing sector, adding to the bigger story of the shared economy's influence on the transportation industry.
References Appel, G., Grewal, L., Hadi, R., & Stephen, A. T. (2020). The future of social media in marketing. Journal of the Academy of Marketing Science, 79-95. Byun, D. H., Yang, H. N., & Chung, D. S. (2020). Evaluation of mobile applications usability of logistics in life startups. Sustainability, 9023. Christ, M. H., Eulerich, M., Krane, R., & Wood, D. A. (2021). New frontiers for internal audit research. Accounting Perspectives, 449-475. Hoyer, W. D., Kroschke, M., Schmitt, B., Kraume, K., & Shankar, V. (2020). Transforming the customer experience through new technologies. Journal of interactive marketing, 57-71. Lesscher, L., Lobschat, L., & Verhoef, P. C. (2021). Do offline and online go hand in hand? Cross-channel and synergy effects of direct mailing and display advertising. International Journal of Research in Marketing, 678-697. Rathnasiri, S., Ray, P., Vega-Mejía, C. A., Islam, S. M., Rana, N. P., & Dwivedi, Y. K. (2022). Optimising small-scale electronic commerce supply chain operations: a dynamic cost-sharing contract approach. Annals of Operations Research, 453-499. Svangren, M. K., Brereton, M., Skov, M. B., & Kjeldskov, J. (2019). Investigating the use of an online peer-to-peer car-sharing service. Human-Computer Interaction–INTERACT 2019: 17th IFIP TC 13 International Conference, Paphos, Cyprus, 740-759. Valaštín, V., Košt'ál, K., Bencel, R., & Kotuliak, I. (2019). Blockchain-based car-sharing platform. International Symposium ELMAR, 5-8. Van Loo, R. (2019). Regulatory Monitors. Columbia Law Review, 369-444. Vélez, A. M. (2023). Economic impacts, carbon footprint and rebound effects of car sharing: Scenario analysis assessing business-to-consumer and peer-to-peer car sharing. Sustainable Production and Consumption, 238-249.
Gabriel A. Nunez
Unit 4.4 Assignment: Capstone Project
G&G Liberty Financial Consideration
Concentration: Supply Chain Management
Malcolm Baldridge School of Business
BUS 700: Capstone
November 19th, 2023
Business Capstone Project – Financials
The proposed project aims to establish a peer-to-peer car-sharing platform, leveraging a web and application-based interface, to facilitate vehicle rentals in Houston. This initiative, spearheaded by G&G Liberty, aligns with the principles of the shared economy, allowing individuals to monetize their vehicles and offering consumers a convenient, app-driven alternative to traditional car rentals. This section of the capstone project delves into the financial aspects of the venture, assessing its overall health through an exploration of management and managerial accounting practices, financial statements, and analytical models.
Appraisal of Financial Health
The evaluation of the financial health of the peer-to-peer car-sharing platform involves a meticulous analysis of various aspects derived from management and managerial accounting practices. This comprehensive examination encompasses operational costs, revenue projections, and investment requirements (Gossen et al., 2019). It is crucial to ensure that the financial foundation is robust, considering the dynamic nature of the shared mobility market. The financial appraisal begins by breaking down the proposed initial investment limit of $50,000, providing a detailed understanding of where the financial resources will be allocated.
A critical aspect of the financial health appraisal is the breakdown of the initial investment limit. Operations and maintenance account for most of the budget at $40,000, covering essential aspects like platform development, maintenance, and operational logistics. Marketing and promotion, with an allocation of $2,500, emphasizes creating awareness and attracting users to the platform (Yun et al., 2020). The allocation for customer support and operations ($2,500) underscores the importance of establishing a robust support system for user inquiries and concerns. Legal and regulatory compliance, with an allocation of $5,000, reflects the commitment to ensuring that the platform operates within the bounds of local laws and regulations.
Understanding the projected revenue streams is fundamental to assessing the financial health of the platform. The primary source of revenue is commissions earned from rental transactions facilitated through the platform. This direct revenue model aligns with industry standards and establishes a clear path to monetization (Frohmann, 2023). In addition, exploring opportunities for additional income, such as advertisements and promotional collaborations, adds a layer of diversification to the revenue model. This diversification mitigates risk by reducing reliance on a single income stream and opens avenues for strategic partnerships that can enhance overall profitability.
The strategic exploration of additional income sources is a key element in fortifying the financial health of the platform. By considering opportunities in advertisements and promotional collaborations, G&G Liberty aims to create a more resilient business model. Advertising partnerships can generate supplementary revenue while promoting brand visibility. Collaborations with other businesses can lead to mutually beneficial promotions, further expanding the platform's reach.
Assessment and Interpretation of Financial Statements
Financial statement analysis is critical to evaluating the overall performance of the peer-to-peer car-sharing network. Key financial statements, like balance sheets, income, and cash flow statements, offer a full picture of the firm’s financial standing (Fridson & Alvarez, 2022). These statements offer insights into revenue generation, expenses, assets, liabilities, and the overall cash flow dynamics. By del