Before developing any of the projects it is important for the company to focus on developing an effective plan which can help them in developing the project in an effective manner and making it a successful project. XYZ company is an which is operating in the finance industry and the organization is dealing with foreign exchange solutions. This company operating in the United Kingdom and the firm is working as a currency broker. Such companies are generally buying and selling the currencies from the customers and their transfer the money internationally. The company is having a better market position and managing the international transfer in an effective manner and the company is having better opportunity to expand their business for generating a higher profit and offering better services to the customers. In this report, the researcher is developing a business plan for the case company which is looking forward to developing the online remittance product (Nurse, 2019). This report will focus on offering better knowledge related to all the important requirements for the development of this project and what are the different risks and challenges which are likely to be faced by the company.
PROJECT AIM AND OBJECTIVES
The aim of this project is to develop an online remittance product for the case company XYZ.
- To develop an effective project plan for the organization.
- To help the company in developing an effective online remittance product.
CURRENT SITUATION-PROBLEM /OPPORTUNITY STATEMENT
Currently, the case company is working in an effective manner but having a great opportunity for offered advanced service to the customers which can help the company in developing a better market image and generating higher profits. The case company is having a license for operating the money transfer in the uniter kingdom (De Koker, et. al., 2017). It can be said that with the better market position and better services the case company is having an opportunity to develop the Remittance Product of their own for offering more advance and efficient services to their customers.
ANALYSIS OF OPTIONS AND RECOMMENDATIONS
The license for operating the money transfer is a better opportunity for the company and the company should focus on using this opportunity in an effective manner. In the current era of technological advancements, money transferring is becoming more advance and easy to use day by day and according to this case, the company should also focus on making their business operations more effective for their customers to use. The company is focusing on developing and developing its own remittance product which is a better option for the company. In the traditional transfer, the remittance is of two types which are outward remittance and inward remittance but in the present era of technological advancement, this process is considered to be complex (Jeong, et. al., 2018).
It can be recommended that the case company should focus on developing a remittance that can offer both inward and outward remittance services to their customers. In the present scenario of technological advancement, the company is focusing on developing online remittance which is a better opportunity for the firm. It can be said that it would be beneficial for the company to make better use of this opportunity and develop an effective business plan for developed an online remittance for the users. The company is focusing on developing online remittance from the United Kingdom to Nepal in the first phase. It is recommended that the company should develop this online remittance and if the company successfully manages the business operations in an effective manner then the company should focus on developing more online remittance for other nations as well.
PRELIMINARY PROJECT REQUIREMENTS
Analyzing the project requirements is an important part of the project plan as it helps in developing an effective plan. In the project, the company is developing a remittance which is not an easy task, and the firm needs to follow a lot of requirements. For developing an online remittance the company needs to develop an effective online platform that can help the customers in doing online remittance. The company needs to develop an app that can offer better services to the customers and can offer easy to access platform for sending money directly to another person living in another country without involving a bank or a foreign exchange provider. The most important requirements for this project are human resources, financial resources, great technological support, getting permission from both countries, and technical requirements.
The company needs to have an effective human resource who is highly qualified and can develop an effective app that can help the company in offering more reliable and easy online remittance services to their customers. Apart from human resource financial resources are also the most important resources which are required for the company in developing this online remittance. The case company is having a license of operating money transfers in the UK but now the company needs to take permission from the government for the development of the online remittance and had to follow all the rules and regulations made by both the UK and Nepal governments. The company needs to have great technical support which can help them in developing an effective app and ensuring the proper functioning of the app or the online remittance services offered by the company. The estimated time which is required for completing this entire project is 1 year in which the company has to do all the tasks such as app development, taking concern from the government, completing all the legal requirements, and executing the plan in an effective manner.
Estimating the overall budget of the project is important as the organization needs to make all the funds available so that they can execute the plan in an effective manner. It can be estimated that the company needs to make an investment of around $25,000-$30,000. For developing the online remittance service providing app the company would require the amount of around $25000 and for other expenses required in the project, the organization would require $5000. The amount required for developing the online remittance is high and the company needs to make a great investment in this project (Konstantin, and Konstantin, 2018).
Financial investment analysis
While making an investment it is important for the company to focus on financial investment analysis which can help the company is estimating that how suitable would be the investment made by the company and also helps in predicting the future performance of the project. The company should focus on using the net present value (NPV) which is an effective tool for analyzing the profitability of the project. In this case, the company is making an investment of around $30,000 and it is estimated that after launching the online remittance app the company will generate a cash flow of around $50,000 after 3 years. Firstly we have to calculate the discount rate and then the NVP.
Discount Rate= (future cash flow/present value)1/n – 1
Discount rate = ($30,000/$24,000)1/3 -1
Discount rate =5.9%
NPV= [$50,000/(1+0.05)3]- $30,000
It is being found that the NVP is positive and the positive NVP shows that the company is having a better opportunity to invest in this project.
POTENTIAL HIGH-LEVEL RISKS
With technological advancement, the risk for online transaction service providers is also increasing. The finance service providing businesses face a lot of issues related to terrorist financing and the case company is offering the remittance service and will have to face the same risks including the risk of cybercrimes as well. Although the remittance systems are having higher regulations for the businesses operating in this sector which can reduce the risks of financial frauds and money laundering as well (Rubini, 2018). Another important risk for this project can be a lack of financial resources and human resources so the company should ensure proper availability of these resources. Along with this, the risk related to the regulations made by the government for the remittance service providing organizations is also a high-level risk so the company needs to ensure that they should follow all the regulations so that they cannot face risk or issues such as loss of reputation or facing paying penalties for not following the rules properly.
While offering financial services it is important for the company to ensure that they might deliver high-quality service to their customers (Tabassum, 2017). The case company should focus on developing a high-quality app that can be offering better performance and more reliable online remittance services to their customers.
It can be recommended that the company is looking for a great opportunity so the company should focus on making available all the important resources required for this project in an effective manner and should focus on ensuring that should have better financial resources for implementing this plan in an effectively (Bloe, and Opoku-Owusu, 2019). Along with this, the company should focus on following all the legal requirements properly which would help them in reducing the risks which can affect the outcomes of this plan. The company should also focus on having better technical support which can help them in reducing the chances of frauds and fake transactions and claims so that the company can run the business in an effective manner and can lead the company towards success and development in the remittance and foreign exchange industry.
Bloe, D.P. and Opoku-Owusu, S., 2019. Beyond remittances: Understanding UK diaspora investment platforms and networks. In Diaspora Networks in International Business (pp. 591-607). Springer, Cham.
De Koker, L., Singh, S. and Capal, J., 2017. Closure of bank accounts of remittance service providers: Global challenges and community perspectives in Australia. U. Queensland LJ, 36, p.119.
Jeong, Y.J., Jeon, H.M., Ock, Y.S. and Jeong, S.C., 2018. A study on the acceptance factors to use mobile easy remittance service. Institute of Electrical and Electronics Engineers.
Konstantin, P. and Konstantin, M., 2018. Investment appraisal methods. In Power and energy systems engineering economics (pp. 39-64). Springer, Cham.
Nurse, K., 2019. Migration, Diasporas, Remittances and the Sustainable Development Goals in Least Developed Countries. Journal of Globalization and Development, 9(2).
Rubini, A., 2018. Rethinking Payments and Remittances. In Fintech in a Flash (pp. 31-44). De Gruyter.
Tabassum, S., 2017. Remittance service: a Study on Trust Bank Limited.