Business venturing - feasibility study (March 2008): Hexabus

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Business venturing - feasibility study (March 2008): Hexabus

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Abstract

The main objective of feasibility study is to know if our business idea is sustainable, and if we could invest it. for this, first we are going to do the analysis of potential customers and competitors. This analysis will approach company's target in terms of age and social class. We determine the potential customers with a small budget and willing to travel throughout France. After that, the report analyse of this target represent an important group in terms of potential customer's number, because we have to prevent the market from overloading. Then, the report will present you a competition estate; it considers the potential existence of competitors and their network. This analyse will allow us to choose a special network for our bus travel; we will exploit the lack of the current network on this market. Besides, Hexabus made a timetable for both the routes and has planned the working times for each driver. Thanks to that, it will be easier to determine the required number of drivers. Finally, the report is going to detail the financial part. It will determine if the company will rent or buy buses. For that, Hexabus will compare the traditional credit, the leasing and the financial hiring.

Acknowledgements.
Executive summary.
Introduction.
Methodology.
The service.
1. Description of the service.
2. Group product declaration form.
3. Study of service.
The market.
1. Description of the market.
2. Analysis of the potential customers.
3. Analysis of the competition.
4. Case of megabus.
Timetables.
1. Timetables of buses.
2. Schedule for drivers.
Financial study.
1. Financing solutions of the buses.
2. The drivers wage budget.
3. Break - even analysis.
Resources required.
Conclusions.
References.

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[...] As a link with our project, France brings together all our principal criteria: - A mobile population - A small budget to travel Thus, the bus company creation based on the “Megabus” model in U.K, could be totally integrated in French market. Analysis of potential customers The following chart sumps up the target choice of Hexabus. When French people travelled throughout France, it is usual to take the train speed train”) or use the car. However, price for both is quite expensive. [...]

[...] So, in order to do our feasibility study we are going to determine, firstly, which part of France is still isolated, and which travel we are going to be chosen. Later, the report will analyse the different ways to buy a bus. Moreover, it seems evident to foresee a timetable and a rotation planning for the drivers. Lastly, we will calculate the different costs of a bus and make a break even analysis. Methodology The objective of this report is on the investigation of feasibility of future business Bus Company. [...]

[...] By this way, it was possible to identify which group of people match with our criteria. Then, to carry out the two first bus lines to start our business, a special method was used. Indeed, the aim was examination of the lacks in network train, so from this identification we will know which cities to clear away. To reach this objective, there were used two maps, one of “high speed train network” and the other of road network. With those documents, it was realized a comparison between train network and road network. [...]

[...] Bordeaux Toulouse Total ratio Bordeaux Variable costs = 1,5*6*588,66*365 = - 1,5 = cost per kilometre - 6 = number of journey per day - 588,66 = number of kilometre between Lyon and Bordeaux - 365 = number of days during one year Variable cost margin = Fixed cost Result= Variable cost margin - Fixed cost Turnover= Result + fixed costs + variable costs Variable costs margin ratio = Variable costs margin / Turnover Break even point = Fixed costs / Variable costs margin ratio Turnover when Result = The company will have 2190 journeys in one year for each line. [...]

[...] So Hexabus studied the lacks of train network to determine the lines it will set up. For the beginning of the business running it would have only two different lines with two different destinations, with regularly travels. French train network map The purple lines represent the TGV (Train à Grande Vitesse in French or “High speed train”) and the yellow and white ones the classical train line. TGV trainsets travel at up to 320km/h (200 mph) in commercial use. Following the inaugural TGV service between Paris and Lyon in 1981, the TGV network, centred on Paris, has expanded to connect cities across France and in adjacent countries. [...]

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