Ccamping holiday company
As you can see I have decided on sources of finance for both ways of investigating in camping holidays from which I done through the investigating and analysing of the possible sources of finance. But both will have their downsides, and so I will use the knowledge I gained from the sources of finance to recommend the best way of investing in the extension of camping holidays. I have chosen to start a joint venture with an existing camping site or camping holiday company.
The main reasons for this is because it would be cheaper in paying back the repayments and that if the company want to one day change their plans, that they do not want to concentrate on camping as much any more they could get out of the venture quicker than with the other possible investment. The reason for this is that the company would have to sell the land, but would have to get a buyer first and if they cannot get one fast enough they might loose money e.g. camping not popular to customers anymore. This way of investing does have its strong points over the over such as there would be no disagreements between the two companies, but the repayments of the loan would be much harder to cope with if the plan failed.
I researched this through textbooks, my own knowledge and the teacher’s note. The strengths of it are that is very detailed, the weaknesses are that it is very long and not very concise. I would improve it by making it more concise.
Swift Transport Plc has already taken over a company called Happy Hold Ltd, and is considering taking another over called Keepsake Ltd. Swift wants to try and capitalise on the Olympic games in Sydney 2000, and for them to do this they need to take over companies which can have some involvement in the event. If Swift was to take over Keepsake Ltd, it would be able to capitalise very easily as each company, including Swift would be able to profit from the Olympics. As Swift Transport Plc is a road haulage company, it could try and strike a deal with the British athletics team, or any other in the U.K., for it to transport its equipment over to Australia. It could also try with other neighbouring countries, so that it can get as many European country’s athletic teams equipment over to Sydney.
This means that it will make a lot of profits, as it can charge high prices, as it is an important event for the athletics world. Also, it could negotiate with the country’s athletics teams to allow their logo to be among their sponsors, this would give them publicity, and could increase their sales. Also as the Olympics are seen world wide, people in countries, which Swift Transport Plc does not operate in, might see the logo and remember it. As Happy Hols Ltd is a travel agency, it could also try to profit from the Olympics. It could buy tickets for the Olympics and sell them as a package with holidays to Sydney during the Olympic games. As many people will want to go and see the Olympics, as well as go on holiday, the deal would seem good and so Happy Hols Ltd would be able to charge extra. This way, they would be able to make high profits.
Swift could capitalise more if they were to take over Keepsake Ltd, and use them in their plans to capitalise on the Olympic games. They could use Keepsake Ltd to strike a deal with the Olympic committee, for them to be suppliers of the equipment needed for the events; these would include medals, cups, platforms, etc. Also through this Keepsake Ltd could sell its own merchandise as official Olympic merchandise, such as T-shirts, souvenirs etc, this would get Keepsake Ltd even more money. Though there are chances that Swift might not be granted these benefits, and so they would not be able to capitalise on the Olympics, and would have to set themselves on another business venture.
So if Swift were to do this and take over Keepsake Ltd, they would be able to capitalise on the Olympics, which was one of their aims. As all the companies would make a profit, Swift would get a percentage of the other two companies profits, thus leaving them in a very good financial position. So Swift should take over Keepsake Ltd so that they profit from the Olympics as much as possible, but also for them to expand. Also Swift should carry on expanding after they take over Keepsake Ltd.
In the future as Swift would have expanded even more, with Keepsake Ltd under its wing, and so would carry on growing internally. But instead of growing by taking over companies in the U.K., they would take over companies in Europe. This would make it easier for swift to transport goods into Europe but also let it grow much bigger. It should carry taking over other companies that it can, also it might consider merging with a rival company.
This would make it a very big company especially in its market; this would help it to a larger market share, profits, market growth etc. In the future Swift should think about setting up in Europe so that it is much easier for them to transport goods, but also for them to carry on growing. From there Swift can try and provide its service further in other continents such as North America and Asia. This would make it a multi national, along with its subsidiaries in other countries. This would make Swift a very powerful force and very successful.
But for Swift Transport Plc to grow, it must follow the acts passed by the government, especially when merging, that they follow the mergers act. When Swift does become multinational, they will have to implement changes in the organisation. They will have to organise their structure to that of a regional structure, so that they have their service in different continents. From all this Swift would become a very successful company, and perhaps one of the largest road haulage companies in the world, and due to their name being publicised during the Olympic games, people would recognise them giving them a great advantage. This is because they would not have to build up a brand loyalty, as people would recognise them. Keepsake Ltd would make profits after the Olympics and would carry on its usual business, while Happy Hols Ltd would get its camping holidays. This would increase the sales of the business, and so they will make a profit as well.