Table of contents

Particulars         Page number

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Introduction          3

Analysis of company’s activities       4

Analysis of company’s financial performance    9

IT systems of the company       14

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Marketing and strategic decisions      19

Franchise agreement        26

Learning at internship        28

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Recommendation         32

Reference          33

Annexure          34

Introduction

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The company was started by its present director Mr. Derek Roger Wiseman on 16-December-2013. The director was a UK citizen and got retired from the BBC. He draws pension from the UK government and from the BBC. Apart from this he gets pension from the New Zealand government. The director owns another company called Granvia Holdings Ltd, which is into the business of home-stays and residential renting.

From the humble beginning in 2013, the company has grown to an annual turnover of 142,990 NZD as on 31-Mar-2018. The company is operated from the director’s residence in the North Shore.

The company offers airport pick-ups and drops, transfers within the city and customized inter-city transits also.  Another division of the company does courier service for the North-Shore hospital network. The courier service involves transport of various laboratory equipment and consumables across the hospital network and connects the Warkworth Community Health Clinic, Warkworth Birthing Centre, Red Beach clinic, North-shore hospital (NSH) and the Waitakere hospital (WH).

The courier service connecting the Warkorth clinics runs on alternate days, starting from MondayThe service connecting the Waitakere Hospital and the North-Shore Hospital runs daily, in the late evening and involves the transportation of the specimens from the WH laboratory to the laboratory at the NSH.

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The financing, marketing and other business decisions are taken by the director only hence the business is operated as a single man company. Apart from the director himself, the company employs other drivers, each one specific to Hibiscus Coast, South Auckland and the North Shore.

1.0 Analysis of the company’s activities

The company uses a Nissan Leaf for the major portion of its transport and courier services. As the vehicle runs on electric drivetrain, the cost incurred on the traditional fossil fuels are saved. This adds to the company’s profit margin especially on long runs involving the Warkworth clinics which is 45 kilometers away from the North Shore. The director has calculated the operating costs for the electric vehicle, which is 5 cents per kilometer and the car runs 124 kilometers on a full charge. The diesel van has a running cost of 5 cents per kilometer (as calculated by the director) and the fuel cost of 19 cents per kilometer (calculated with the fuel economy of 8 kilometers per liter and diesel price of 1.5 dollars per liter).

When comparing the two vehicles, the electric car is the profitable option for transports involving 4 passengers and 370 liters of luggage. Moreover, with the growing network of charging stations across New Zealand, the electric car can be used for long trips also. The Toyota Granvia is an 8-seater vehicle with substantial amount of luggage space. The luggage space can be varied because the third row of seat can be moved forward and backward as desired. As per the passenger feedback, the van is more comfortable for long trip, owing to its heightened seating position compared to the electric car. Over the years the company has understood that van’s fuel economy drops in ‘stop & go’ traffic of the city roads, but it maintains consistency in long trips over motorways and highways.

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1.1 Contractor drivers

The passenger trips for the company is attended by the director and other contractor drivers depending on the area of service. Majority of the passenger trips in the North Shore area is attended to by the director himself. If there is a clash of timing with another trip, the company employs Mr. William Sumpter, who is a contractor driver, to attend to the North Shore customers. This contractor is used for passenger trips involving more than 4 passengers and huge amounts of luggage. He sends invoice to the company on weekly basis and payment is made after deducting a commission of 10%. As on 24^th August 2018 the company has generated a gross revenue of 6,983 NZD through this contractor. A commission from this source stands at 698 NZD as on 24^th August 2018.

We have another contractor named Phillip Theophanous, who attends to the customer calls from the Hibiscus Coast. The company employs this contractor for customers from other areas also when there is a requirement. This contractor sends his invoice on a weekly basis and the payment is made after deducting a commission of 10%.

The South Auckland is attended by another contractor called Vinit Sharma, who also operates in the similar fashion as the two above mentioned contractors. We have been facing competition from Uber in the South Auckland region and the business from this area is negligible compared to other areas. As on 24^th August 2018 the gross revenue from the South Auckland stands at 2,643 NZD and the net revenue (10% commission) stands at 264 NZD.

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1.2 Passenger business

The company has some regular customers for the passenger trips. These customers are invoiced and are given a credit period of 1 week. The rest of the customers pay the fares in cash and are not invoiced and do not get a credit period.

Chequer Trust – The customer is a care home for the aged and mentally challenged people. On weekdays the inmates are taken to a handicrafts shop, where they employed and work for earning their livelihood. Our company transports the inmates to their work place in the morning and returns them back to their care home, at the end of the office hours.

This customer is invoiced on monthly basis and the payment is received on the 15^th of the subsequent month. The revenue from this customer for the current financial, as on 24^th August 2018 stands at 5,710 NZD. For the same period in the previous financial year the company earned an amount of 4,330 NZD.

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Specsavers – Specsavers is a chain of spectacle dealers in Auckland. The store at Albany uses our services to transport their staff from their store to various places in the city. The staff uses our services for travelling to their homes from the workplace and vice versa.

The customer is invoiced on a weekly basis and the payment for the whole month is received as a lump sum on the 15^th of the subsequent month. The revenue from this customer for the current financial year as on 24^th August 2018 stands at 975 NZD. For the same period in the previous financial year, the company had earned a revenue of 3,252 NZD, showing a drop of 70% in revenue. The drop in revenue is due to the increased competition from Uber and other cab operators who allow for real-time booking of the services.

Since our company does not have any real-time booking facility, some customers find it convenient to use the competitors.  I had made a research into designing a website with real-time booking facility. The efforts are elaborated in the following sections of this report.

1.3 Courier business

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The courier business of the company has two customers namely:

(a) Health Alliance FPSC – This is the division of the North Shore hospital network that handles the various vendors. As on 31-March-2018 the company generated a revenue of 30,296 NZD from this source. The customer is invoiced monthly and the payment is received on the 15^th day from the date of invoicing. The revenue from this customer remains the highest in the current financial year also. As on 24^th August 2018 the company has generated a revenue of 11,687 NZD from this customer. The revenue from this customer for same period in the previous financial year stood at 11,061 NZD, which shows negligible growth, but this customer is a consistent source of revenue.

The daily service for this customer starts at the North Shore hospital (NSH) where the consumables for the Warkworth and Red Beach clinics are loaded from the NSH and then delivered at the respective centres. After that the packages from Warkworth and Red Beach clinics are returned to the NSH. These items mainly involve, laboratory samples, equipment requiring to be sterilized and other miscellaneous items. This completes the morning run for the customer.

In evening at 9:00 pm the laboratory items from the Waitakere Hospital is delivered to the North Shore Hospital. This run involves only two chilled boxes containing the laboratory samples.

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The director of Allbays Transport is directly involved in this service and occasionally employs another lady driver, Megan Shaw. The lady driver works as a part time contractor for the company and is assigned this task when the director has another customer to attend to, at the same time.

(b) Miller Books – This customer is supplies books of various publishers to the libraries in the North Shore. They deliver these books in bulk to Allbays Transport and we in turn deliver these packages to the individual libraries. ‘Miller Books’ send the books in separate packages to Allbays Transport, so the task of segregation is not done by Allbays Transport. The company acts as the lower end of the supply chain.

The revenue from the source for this financial year as on 24^th August 2018 stands at 1,500 NZD. The company had a revenue of 2,617 NZD, during the same period in previous financial year. There is a decline of 57% in the revenue from this source. The director is aware of the drop and is in process of negotiation for increasing the business with Miller books.

Customer name	Revenue (2017)	Revenue (2018)	Decline / Growth
Health Alliance FPSC	11,067	11,687	620
Miller Books	2,617	1500	-1,117

2.0 Analysis of company’s financial performance

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The company was incorporated on 16-December-2013, but the actual operations started in the next financial year ‘April 2014 – March 2015’. The first financial reports were published on 31^st of March 2015. In the first year of operation the company made sales worth 174,130 dollars. The company’s cost of sales was 25,576 dollars so the company reported a gross profit of 148,554 dollars. However, the operating expenses for the year equaled its gross profit, so the company ended up making zero net profit for the year. During that year the main component of the operating expenses was the shareholders’ salary which was 78,239 dollars.

In the next financial year ‘April 2015 – March 2016’ the same trend continued. The company reported a gross profit of 150,043 dollars and the operating expenses equaled the gross profit. So, the company ended up having zero net profit. This year also the major component of the operating expenses was the shareholder salary, which is reported as 57,036 dollars.

The trend reversed in the ‘April 2016 – March 2017’ financial year. During this year the sale of the company dropped to 139,652 dollars from the 174,131 dollars earned during the first year of operation. Another major change was the appointment of contractor drivers, who were not under the GST system. During this year these contractors were paid an amount of 51,537 dollars. The company reported a gross profit of 80,170 dollars during this financial year. Another change during this year was the absence of shareholder salaries, due to which the company could report a net profit of 26,790.

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In the financial year ‘April 2017 – March 2018’ the sales made a small improvement to reach 140,928 dollars from the previous year figure of 139,653 dollars. But the improved sales could not be carried forward to the gross profit. This was because of the increased dependence on contractor drivers to the tune of 5,334 dollars. During this year the reported gross profit was 78,939 dollars. The operating expenses for this year was 58,105 dollars and the net profit was 20,883 dollars. In this financial year a major increase in the rental expenses. The reported rent was 22,945 dollars, which is 18,701 more than the previous 3 years average of 4,243 dollars. I searched for the reasons behind this surge and found that the rental expenses from another business of the director was erroneously reported under this company’s accounts. This was intimated to the director and the company’s accountant. The rectification entries will be passed by the company’s accountant.

2.1 Observation on the existing records of accounts.

The company’s book keeping was handled by different people over these years. This has resulted in inconsistency in the reporting of figures.

During my internship it was found that some business expenses paid from the director’s personal income is not reported in the company’s accounts. Subsequently the director transfers the amount from the company’s bank account to his personal account. These transfers are getting recorded as owner’s drawings. One of the tasks I did during my internship was to streamline this inconsistency. I made a system wherein all the ‘bills’ paid by the director, related to the business was filed daily. These files or scanned copies are sent to the company’s accountant on a regular basis. The accountant creates an ‘expense claim’ entry in the Xero system to record the transactions.

Another observation made by me was regarding the company’s asset register. The Nissan Leaf and the Toyota Granvia, which are owned by the company were not recorded as the assets of the company. As a result, the depreciation on these vehicles were not reported and the loan repayment on the Nissan Leaf was recorded as ‘Owner’s Drawings’ in the Xero accounting system. Due to these mistakes, the tax liability of the company and the owner was inflated. The loan repayment and the depreciation on the assets are expenditures that are not taxed.

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To rectify these mistakes, we retrieved the vehicle’s loan documents and the purchase invoice and sent it to the accountant for including the vehicle in the company’s asset register.

The payment made to the contractor drivers were not regularly recorded in the Xero system. When these payments are made, a voucher is to be raised in the Xero system and it should be tagged off with the corresponding debit from the bank account. Due to the inconsistency in recording the driver payments, the debits from the bank accounts used to remain unreconciled in the system. I started a system that whenever a contractor driver is assigned a trip, it is recorded in an excel sheet format. This excel was updated daily and this ensured that all the driver payments are invoiced in the Xero system and tagged off with the corresponding bank debit.

The company has two accounts with the Kiwi bank. Each of these accounts were used for managing both income and expenditure, resulting in debits and credits in both these accounts. This practice created confusions during the bank reconciliation process and as a solution I suggested that one account is to be used for only incomes and the other to be used only for expenditures. This suggestion was welcomed by the director and we informed the regular customers to pay us through the ‘01’ account only. Similarly, while making the payment to the contractors and other vendors, the ‘00’ account will be used. When the payments are to be made through the POS machines, the director will be using his credit / debit card and then raise an expense claim from the company account.

The below figure shows the flow of money across various accounts of the director and the accounts of the businesses owned by the director.

From the figure, we can identify that the money is flowing across different accounts without proper channelization. One of the works I did during my internship was to advise the director on streamlining the flow of money.

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(a) Separate business money from personal money – The pension from the New Zealand government is credited into the Westpac account. This account is also used for collecting, cash sales and the credit cards sales of the Transport business. This creates confusion during the reconciliation and is now being streamlined. This account will be used only for receiving the government pension and meeting personal expenses. Further arrangements are in progress to credit the credit cards sales of Allbays Transport to the Kiwibank account of the company.

(b) Avoid mixing funds from businesses – Granvia Holdings Ltd is a rental and home-stay business run by the director. The property managed by this company is a rented house and the rental income from this business is credited to the Kiwibank account of Granvia Holdings and then transferred to the Kiwibank account of Allbays Transport. This direct transfer is to be avoided and the money is to be channelized through any one of the director’s personal account. Further the rental expense of this property is paid from the Kiwibank account of Allbays Transport. It was advised to stop this practice and to pay this expense from the Kiwibank account of Granvia Holdings Ltd.

3.0 IT systems of the company.

The company has a website, which is in a crude state and needs to be improved in terms of appearance and utility.

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Improvements on the website was one of my duties during the internship. Hosting the website was one of the main issues involved in improving this website. The existing website is hosted by a company called ‘Maxnet’. I contacted this company for their quotes on website hosting. They quoted an amount of 150 dollars per year. The director approved the cost.

The next step was to identify a website designer. The Director knows a website designer who designs and maintain the website. The designer is a lady named Melinda, who works from her office in Kumeu. The director had done some free trips for the lady, in return for which she had promised to make some improvements on the website. However she did not respond to our mails and we decided to contact other designers who are available in the market.

As a next step I contacted some companies – ‘Little Giant’ and ‘Fuel Design’. I sent a mail to these companies asking for quotations. ‘Little Giant’ is a company that works for leading brands like Fonterra, Spark, ASB, FairFax Media, Les Mills and many other leading brands. They had quoted an amount of 30,000 and 15,000 dollars respectively. The quotation received from the ‘Little Giant’ company is attached as an annexure. These quotations are above the budget set for this purpose, we decided to keep the project on hold for some time. Later on towards the end of my internship period, I contacted a designer called Bronson Yandall. He quoted 1,600 dollars for designing the website. This price was approved by the director and the mail was sent to the designer for further process.

A major project I undertook was the setting-up of an ‘Interactive Voice Response’ (IVR) system on the 0800 number of the company. Earlier, the voice on the number was that of the director himself. Now the director wanted to change the voice and wanted to filter the calls based on the geographical location of the caller. The calls from the landlines had to be filtered and the calls from the Hibiscus Coast should be diverted to the contractor driver, Mr. Phillip Theofanous. The remaining calls are to be diverted to the director’s mobile number. Customers calling from their mobile phones will be diverted to the IVR system, where they had to select the relevant option according to the area of service requirement.

As the first step towards this project I contacted the ‘Spark’ company, who is existing service provider for the 0800 number. I asked for the quotation for setting up the process and the applicable rates for the maintenance of the system.

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The quote received from ‘Spark’ is given below:

Monthly Charges (+ GST)

Monthly usage fees  – $20.00                                  Distinctive tone                            – $5.00                                                                                                                 Simple Geographic control              – $5.00                                                                                                                              Call prompting                                          – $5.00

One-time set-up charges (+GST)

Set-up call prompting  – $35.00                                  Add terminating number              – $25.00                                                                                                                Geographic control set-up              – $35.00

After receiving the quote, the next step was to get a voice recording for the IVR system. The voice recording had to be in ‘.WAV’ file and formatted in 8000 hz 16-bit mono sound. I contacted a lady named Gael Ludlow, in Hamilton. She is a singer and runs a recording studio in Hamilton and she is one of the company’s customers.

I asked for a quotation and a sample recording. She quoted the work for $75.00 plus GST and send us a sample recording. The director listened to the recording and asked me to further process the set-up. For the actual recording, we had to prepare a script of the matter to be recorded. I prepared the script and sent it to the lady along with the transaction details for the payment made. The script of the message reads as follows –

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“Welcome to ALLBAYS Transport. Please select from the following     

options.                                                                     

Press 1 for North Shore, (goes to 09 XXXXXXX)                                

Press 2 for Hibiscus Coast, (goes to 09 XXXXXXX)                               

Press 3 for South Auckland, (goes to 09 XXXXXXX)                  

Press 4 for any other region or head office. Thank you” (goes to 09 XXXXXXX).                

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The recording along with the script of the message was sent to the service provider. The IVR system was set-up within 1 day of sending the final mail. After the set-up I received an excel file from Spark, which contained the details of the IVR set-up. This excel was passed on to the director for safe storage.

Another project undertaken was the improvement of the faxing system. The company uses a fax machine to receive and send the faxes. The director wanted to move on to an e-fax gateway wherein he will be able to use his e-mail to send and receive faxes. This would enable him to use the faxing system even when he is away from the office.

I contacted three e-fax companies – Digital Island, Faxapp and Go Fax. We received quotations and a brochure explaining the set-up process, from the companies. After comparing the quotations and the set-up process, we decided to use the services of ‘Go Fax’ company.

Go Fax is an Australian company based in Cairns, Australia. The company offers the services from a starting package of $14.95 AUD per month. This package includes 150 incoming fax pages per month and allows us to use the existing fax number. However this plan is designed for the Australian market, so the we had to purchase the send credits for $15.00 AUD. These send credits remain as a prepaid balance and will not expire until the credits are used.

Apart from the above-mentioned costs, the company will charge us for the initial set-up. The set-up costs are mentioned below –

(a) Simple Porting – A stand-alone number on own fax line; no other services associated. This would cost $30.00 AUD per number.                                                                                                                              (b) Complex porting – $110.00 AUD per application + $10.00 AUD per additional number.

Before starting the process, the company gave us a porting checklist to ensure that, the porting request is not rejected by the current service provider. This porting check-list is to be completed and signed by the business owner. However there was a rejection from the existing service provider due to some billing issues in the broadband connection. The issue was resolved and the porting request was successful in the second attempt. We received a test fax from the Go Fax company, confirming the set-up. The outgoing fax was checked by sending a test fax to the Auckland Institute of Studies reception.

4.0 Marketing & Strategic decisions

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The company is not into any active marketing and promotional initiatives. So the improvement of the company’s marketing activity was one of my tasks.

4.0.1 Logo Designing

When I took up this initiative, I noticed that the company did not have any logo. A logo is an important part of the marketing and other promotional activities. All the successful brands around the globe has easily recognisable logos. When we see a logo that is immediately likeable and matches our thinking, chances are that we look at it again and feel like keep looking at it. (Shadbolt, 2015)

So I decided to design a logo for the company. Martin Christie of the London based logo design firm Alchemist says that the logo is the first thing that people see and it is going to reflect what business, the company is into. (Shadbolt, 2015). I researched more about branding and logo designing.

While designing a logo, few things I considered was: (Ray, 2018)

(a) Research the business – The Company was into transportation business and the logo should create an image of movement.                                                                                                                                                         (b) Adopt Minimalistic approach – The logo should not have excessive elements in it. Only the shapes or lines needed to convey a message are to be included in the logo.                                                                 (c) Make it scalable – The logos should not lose the proportion when printed on a billboard. When printed in different proportions, the logo should not lose its design elements.                                                 (d) Logo should standout – Our logo should look different from the competitors. This is an important consideration when the company is into promotional activities. The logo that looks different from the competitors grabs the attention from the customers.

Here is the comparison of logos of the competitors in Auckland:

Allbays Transport

Auckland Co-Op taxis

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Corporate Cabs

Green Cabs

4.0.2 Customer satisfaction survey

The next initiative was a customer satisfaction survey among the company’s customers who have not availed our services for a period of more than 6 months.

Customer satisfaction surveys gives your feedback on the effectiveness of the company’s marketing strategies and its promotional activities. The responses from the customers helps to identify, the strengths and weaknesses of the business and the reasons for customer discontent. It also provides a view of the future requirements of the customers and helps us to plan the services accordingly. Furthermore, customer satisfaction surveys give a feel that the company is paying attention to the customer feelings. This helps in customer retention and building brand loyalty. (Deeb, 2018)

The survey was done through the ‘Survey Monkey’ website. They provide the service free of cost and has a set of customer survey templates with options for modifying the questions. We used one of the existing templates for service industry. Initially there were only 6 questions with one open ended question in the template. But we decided to add a second open-ended question that invited the customers for a discussion along with an option to leave their contact details.

We identified 6 customers who were our regular customers until few months back. The director shared the name and e-mail IDs of these customers. This contact details was loaded into the survey template and an e-mail was sent from the ‘Survey Monkey’ website.

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Out of the six customers we received responses from 2 customers initially. The customers were satisfied about our service and said that they have moved positions within their organisations. This reduced their travel requirements and hence they did not avail our service. The remaining 4 customers had to be contacted over phone. I got the contact numbers of the customers from the director and contacted the customers. One lady customer was not ready to take the survey and ended the call. The customer was talking in an agitated tone and the director told me to drop the customer from the further contact. Out of the remaining three customers, two have been replaced in their organisations and one customer was not picking the calls.

The two customers who responded to our survey, referred us to their colleagues who are currently undertaking travels for the business requirements. I sent quotations to the new customers and talked with them over phone. One of the customer works for the New Zealand Transport Agency (NZTA) and the other one works for Harcourts Real Estate Company. The new customers have started giving us business.

The customer survey was a success and we could two new corporate customers.

4.0.3 Designing Visiting cards & Brand’s tag-line

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The next marketing related activity was the designing of visiting cards. The existing design was not an attractive one and the director wanted me to design a new visiting card. My first thought was to make the visiting card a visually appealing one. Our company’s business is concentrated in the Auckland and the surrounding regions. So the visiting cards had to carry a visual that goes synonymous with the Auckland region. With this idea in mind, I selected the image of the Auckland city’s coastline.

Along with the visiting card I had to write a tag line for the brand. I tried to make a tag-line that sounds appealing and attached the business to the popularity of the New Zealand. With this idea I created this tag-line: ‘Proudly Kiwi Owned & Operated’.

The director reviewed the tag-line and said that “It had a Kiwi sounding but, the businesses that carry these Kiwi tagged wording gave a subtle image of racism. New Zealand being a multi-cultural society, the businesses cannot afford to satisfy the sentiments of just one sect of the society. Also that there is narrow line of difference between patriotism and racism”.

Keeping the director’s comment in mind, I created another tag-line that says – ‘Locally Owned & Operated’. This was accepted by the director and was approved to be placed in the visiting card. The final version of the visiting card designed by me is attached below –

4.0.4 Business improvement activities

The company is planning to get enrolled in the panel of service providers for the Accident Compensation Corporation (ACC). The service providers are involved in transporting the injured staff from their workplaces to the hospitals. To get enrolled in the panel, the company has to be registered in the website of ‘Government Electronic Tender Services’ (GETS) system.

The ‘GETS’ website provides the entire user guide for getting enrolled in the system. The process starts with a ‘Guide to Procurement’. This section of the website elaborates on the process, starting from the initiation of the project and provides the following steps: (Ministry of Business, Innovation & Employment, 2018)

1. Initiate the project
2. Identify your needs and options
3. Specify your requirements
4. Develop your procurement plan

Further to this the company should create a ‘RealMe’ account for progressing the enrolment process.

Before proceeding further I discussed with the director on the progress of the proposal. Due to the volume of efforts required, the director dropped the plan for the time being and decided to engage a consultant, later this year.

Another project planned by the company was to get enrolled in the ‘Total Mobility Services’. This is a social service funded by the government, enabling the eligible people with long term impairment to access public transport to meet their daily requirements.

This scheme subsidises the transport fare by 50%. The scheme funds the purchase and installation of wheelchair hoists in taxi vans. (Ministry of Transport, 2017)

In Auckland region the scheme is administered by Auckland Transport and they will pay half the fare up to a maximum of $80. Additional fares will be paid by the user. As an initial enquiry, I sent a mail to the Auckland Transport’s enquiry section. We got a reply that there is no requirement for any additional service providers in the current financial year. (Ministry of Transport, 2017)

Another initiative of the company is to expand its fleet of electric vehicles. The company is looking at acquiring a Nissan E NV200 (40 KwH) van. The government of New Zealand runs a scheme through the Energy Efficiency and Conservation Authority (EECA) to encourage innovation and investment that will accelerate the uptake of electric and low-emission vehicles in New Zealand. (Energy Efficiency and Conservation Authority, 2018)

To get the EECV funding, we should submit a project report. The report should highlight the features of our project that will help to achieve the objectives of the fund.

The task of preparing the project report was handed over to the new intern at the company.

5.0 Franchise agreement

The director is planning to change the business model to a franchise, wherein the existing contractor drivers will be the franchisees of ALLBAYS Transport Ltd. To create a franchise the first step is to have a franchise agreement. The company has its legal advisor but the director wanted me to draft a franchise agreement, which can be forwarded to the legal advisor for final vetting.

I had the ‘International Business Law’ as my elective module. The knowledge I gained in the class was used for framing the franchise agreement.

As per the plans of the director, individual companies will be floated in the areas of North Shore, Hibiscus Coast, and South Auckland. These companies will be named as ALLBAYS North Shore Ltd, ALLBAYS Hibiscus Coast Ltd and ALLBAYS South Auckland Ltd. These individual companies will be franchisees for the ALLBAYS Transport Ltd. Each of these individual companies will be sold to the existing contractor drivers for an initial amount, and they will continue to pay the franchisee commission for each passenger trip. The courier business will continue with ALLBAYS Transport Ltd.

The agreement was created with the help of the template given by the professor Mr.Richard Worth. He had given these templates with the permission to use it in our career assignments. The agreement draft has 16 clauses. The clauses mentioned in the draft is mentioned below –

1. Definition of business
2. Validity of the agreement
3. Industrial property rights
4. Vehicles used
5. Maintenance of the vehicles
6. Call handling
7. Rates for service
8. Commission
9. Payment of commission
10. Good faith clause
11. Ownership of customer data
12. Advertising and expenses
13. Entire Agreement Clause
14. Termination of the agreement
15. Force Majeure Clause

The draft was forwarded to the company’s legal advisor for final vetting. The vetted draft is still awaited from the legal advisor as on the last day of my internship.

6.0 Learning at Internship

I spent 12 weeks at ALLBAYS Transport, dealing in accounting, negotiations with stakeholders, researching on the company’s planned projects, and other duties on the promotion and marketing of the business. My first learning was –

1. Xero accounting system – The Company maintains the accounts using Xero accounting system. It is a cloud based accounting system and suited for small scale businesses. I learned the Xero system using the online tutorial videos. The first screen displayed after logging in is called the Xero dashboard. The dashboard shows the summary of various heads of accounts selected by the user. In this company, the director has chosen to display the summary of the company’s bank accounts, list of pending customer payments, list of creditors and the director’s personal Westpac account.                                The summary of the bank accounts shows the list of pending bank reconciliation entries. When you select a particular account, the system shows the entire list of credits / debits in the bank account. We can match these entries with the corresponding expense or income in Xero. As seen in the picture below the left side of the screen shows the list of debit / credits in the account and the right side shows the options to reconcile the bank entry. Against one of the entries you can see that the Xero system has found a possible match for the credit entry of $50.00. The user has to manually check the match, and reconcile the entry. If the match provided by the Xero system is not matching then we have to manually create the required entry.

The next learning in Xero was to issue an invoice in the system. The dashboard shows a ‘+’ sign on the top right side of the screen. Clicking that button gives you option to create a new invoice, bill, contact, quote and various other options.

In this screen, you enter the customer name in the ‘To’ column and various other details and finally you can approve the invoice by pressing the ‘Approve’ button. When pressing the drop-down button besides the ‘Approve’ button, you will the option to send the invoice to another user for the approval. Once the invoice is approved in the Xero system, the system sends an automated mail to the customer’s e-mail ID. After this process, the invoice will be shown as pending in the dashboard. A sample screen-shot of the pending list is attached below.

From this screen, we will the options to print a copy of the invoice or e-mail the invoice to the customer manually.

The ‘+’ sign at the dashboard allows to create a ‘bill’ for a payment made to the vendor. The ‘bill’ creation follows the same process as the customer invoice.

The Xero system generates all the required accounting and other required reports for Tax returns and business analysis. The reports can be generated from the ‘Report’ tab in the dashboard.

This screen provides an exhaustive list of reports required for analysis and reporting.

2. Negotiation – I undertook two projects for setting-up the IVR system for the ‘0800’ number and the e-mail fax system. These two projects involved discussion with the business representatives of the ‘Spark’ company and the ‘Go Fax’ Company.

I had to make enquiries regarding the pricing, set-up process and the after sales support availability. The company is also into the process of developing the website. For this project, I had to talk with different web-designing companies in Auckland. This process boosted my confidence to take-up further projects and I developed an understanding of the corporate culture and the negotiation process in New Zealand. This will help me in my future assignments.

3. Business Culture in New Zealand – I was involved in the logo and the visiting card design for the company. During this process, I interacted with the director and this gave me lot of insight into the business culture in New Zealand. In my home country the negotiation and the corporate interactions are on an aggressive mode, whereas in New Zealand, the interactions are gentle and more courteous than in my home country. This will help me in my future assignments.
4. Customer handling – During the course of my internship, I handled the customer satisfaction surveys for the company. I had couple of other opportunities to interact with some of the regular customers of the company. Through these interactions I understood the customer culture in this Country. This company has built its customer base with the help of courteous service and more importantly through the ‘Word-of-mouth’ publicity from the customers. So the each customer we serve is important for the company’s reputation.

7.0 Recommendation

(a) For Myself

– I need to acquire more skills in using the Xero accounting system.

– I need to have more people management skills.

(b) For the company

– The company should streamline the flow of money across the accounts, as mentioned above in the report.

– The bank reconciliation should be done regularly.

– The pending tax returns should be filed on priority.

References

Deeb, C. (2018). Importance of Customer Satisfaction Survey. Retrieved from Chron: https://smallbusiness.chron.com/importance-customer-satisfaction-survey-40463.html

Energy Efficiency and Conservation Authority. (2018, August 27). Low Emission Vehicles Constestable Fund – Round Five. Retrieved from Energy Efficiency and Conservation Authority: https://www.eeca.govt.nz/funding-and-support/low-emission-vehicles-contestable-fund/low-emission-vehicles-contestable-fund/

Ministry of Business, Innovation & Employment. (2018). New Zealand Government Procurement. Retrieved from Procurement.govt.nz: https://www.procurement.govt.nz/procurement/guide-to-procurement/plan-your-procurement/

Ministry of Transport. (2017, November 28). The Total Mobility Scheme. Retrieved from Ministry of Transport: https://www.transport.govt.nz/land/the-total-mobility-scheme/

Ray, H. (2018, January 30). Logo Development: 10 Things To Consider When Creating A Company Logo. Retrieved from DesignHill: https://www.designhill.com/design-blog/logo-development-things-consider-creating-company-logo/

Shadbolt, P. (2015, May 7). BBC News: Business. Retrieved from BBC News: https://www.bbc.com/news/business-32495854

Annexure

Little Giant Quote

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