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T.A.G. Partners System Case Analysis

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*TAG Partners System*, Inc. TAG’s business plan is to provide small trucking companies complete back office solutions and strategic alliances to eliminate the competitive advantage large trucking companies’ benefit from. The small trucking companies will receive greater revenue per mile and have lower operational expenses through TAG’s services, which are gained by leveraging a large client base, forming strategic alliances, and implementing their software. TAG’s management team is offering a 20% stake in the company for $100,000 in equity funding. Management’s perceived value based on the 20% stake for $100,000 indicates a valuation of $500,000 would be necessary in order for an investment to be considered. SWOT Analysis …show more content…

Other back office trucking services could enter the market and create a rivalry. Competitors with an established client base and existing operations would be better suited to expand their operation into a software program that could integrate all of the functions TAG hopes to implement. Predatory pricing could severely hurt a new venture as the established company would have the upper hand. If TAG could truly differentiate their product from the current marketplace, then they may be able to withstand the competition. Risks Character Risk – High Risk TAG’s business plan does not mention anything to help mitigate character risk. The perceived embellishment of previous business experience, which is described in detail under “Management Risk”, does take away from the level of trust I have for the information provided throughout the business plan. Management Risk – High Risk Prior Start-Up Experience Mike Goodwin successfully built and managed The Content Management Experts, LLC. However, after a background check, The Content Management Experts Entity is inactive and there is no history concerning the company’s operations (Exhibit 2). Industry Knowledge Timothy J. Murray has been in the transportation industry for seven years. He served as Vice President of TransSolve, Inc. from 1998 to 2000 and grew annual revenues from 1.3

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