Project Proposal of Circa Manufacturer - Report Example

Response to Project Proposal Report (CIRCA) Table of Contents Requirement of Project 3 Response to requirements of project brief 3 Scalability: 3 Intellectual Property: 3 Financial Sustainability: 3 Skills Required 4 Information Required 4 Value Proposition 4 Key activities 4 Key Partners and Key Resources 5 Channels and Customer Segments 5 Customer Relationships 5 Cost streams and Revenues Streams 5 Other information or questions from the brief 5 Sources of information 6 Skill Audit 7 Conclusion 7 Reference List 8 Appendix 9 Personal Development Plan 9 Requirement of Project Circa is an Australian manufacturer engaged in the business of chemicals owning rights to a proprietary technology, that converts biomass prepared out of non-food items into a value added chemical (Sherwood, et al., 2014). This product has allowed Circa enhancing its portfolio of chemicals, which are prepared from ingredients other than petrol. Cyrene, the new chemical, is a bio-solvent that can be widely used in the pharmaceutical and chemical processing industries because of its unique properties. Circa is contemplating establishment of a standalone business unit in the Australasian market. Response to requirements of project brief Scalability: The business is presently restricted to marketing and development of Cyrene alone, along with its existing products. This chemical can act as a substitute to NMP, DMF and sulpholane, which have been used widely within the pharmaceuticals and other high chemical manufacturing industries. Then again, in order to be successful in a limited market such as, Australia and New Zealand, the company needs to research mode on the utility of Cyrene in other industries that can use the produce based on the same within products (Duncan, 2014). Intellectual Property: The chemical, Cyrene, has been prepared by Circa in association with the University of York Green Chemistry Centre of Excellence. It is important for the company to acquire sales rights to this innovation so as to gain maximum benefits of the development. The company should also apply for copyrights pertaining to the development so as to become the sole developer and owner of the bio mass based chemical. Certain patents are underway. Financial Sustainability: The market for NMP is presently of about 100,000 tonnes worldwide and its price per kilogram varies between USD5 to USD25. These figures reflect that in order to capture the market of NMP, Circa has to bring down the per kilogram costs to a minimum of USD 25 so that switchover of companies is facilitated. The present per kilogram cost is USD 50 (Circa, 2014). Additionally, the switchover to Cyrene would also make them sustainable companies through increased compliance of the environment regulations. The company also has to account for the costs of plant establishment in Australia and compare the same with the estimate of revenues therein in order to realise the average rate of return and the estimated period for breaking even. Skills Required Marketers must make the proposition of adoption of Cyrene as a substitute for NMP and also allow companies to realize the benefits of environmental sustainability (Teeter and Loving, 2001). Plant feasibility is to be ensured for which the company needs a local financial advisor and project manager so as to properly manage the cost minimisation issue. Operation managers are required for ensuring smooth manufacturing flow and also maintaining the standards and compliances related to manufacturing. Information Required With a view to meet the expectations, the information that is critical for Circa are as below: Value Proposition The values being provided by Circa through establishment of a Cyrene manufacturing plant in Australia are: Local production of environment friendly bio-solvent Cheaper access to environment friendly bio-solvent for the pharmaceuticals and chemical manufacturing companies of Australia. Allowing the companies to become competitive in the industry through use of environment-friendly bio-solvent in their manufacturing process (Grad, 2013). Key activities The key activity related to production and sales of Cyrene and associated chemicals alone should be sufficient for the firm to be profitable in Australia and New Zealand. Is the promotion and acceptance of bio-solvents sufficient in the industry of pharmaceuticals and other high chemical manufacturing businesses in order to provide a good market for Cyrene in the region? Key Partners and Key Resources Circa can use online marketing media to popularise utility and availability of Cyrene as well as such other bio-solvents in the Australian region (Sturges, 2002). Is Circa associating itself in business relationships with dealers of chemical or is it engaging in direct marketing to large pharmaceuticals companies alone? Is there a possibility of expanding the product offering or bundling the product in a manner that can make the chemical more attractive for adoption or increase sales in the Australian plant? Channels and Customer Segments How is the company going to reach out to its customer set in a region that has limited market to offer? What methods can be adopted in order to market its product in the region? The customer demographic is restricted to the pharmaceutical companies and heavy chemical manufacturing companies. Is there a scope for marketing the bio-solvent into other industries as well for promoting the use of environment friendly produce? Customer Relationships Who shall be the key stakeholder to the new plant in the Australian region? Are the stakeholders aware of the project plan and do they have sufficient reach to information, products and project plan (Batt, 2002)? What shall be profile of the customers? What is the basis for making target segments? How shall these target segments be approached (Lovelock and Wirtz, 2004)? Cost streams and Revenues Streams The cost patterns need a review so as to reduce the cost implications per unit. Is the revenue streams judged effectively and do they provide sufficient grounds for profitability? How shall the plant provide benefit over direct marketing of the products in the region? What shall be the cost benefits (Ferrell and Hartline, 2010)? Other information or questions from the brief What shall be the legal compliances that need to be met for establishment of a plant in the region? What is the location and what shall be the location benefits for plant establishments? Which are the laws that protect or promote such an industry that is engaged in environment friendly inputs production? Are there any regional laws in the Australian region that provide financial benefits to the company? What are the legal compliances that Circa needs to meet being a foreign company planning a market entry in Australia? Sources of information Circa http://circagroup.com.au/cyrene/ Details about Cyrene Production http://pubs.rsc.org/en/content/articlelanding/cc/2014/c4cc04133j#!divRelatedContent Marketing Australian Bureau of Statistics (www.abs.gov.au) Weiner, B. 2000. Attributional Thoughts about Consumer Behavior. Journal of Consumer Research, 27(3), 382-387. Chemical Marketing in Australia (http://www.ibisworld.com.au/industry/default.aspx?indid=346) Innovation Strategies for the Australian Chemical Industry (http://www.businesschemistry.org/article/?article=67) Competitors http://www.coreindex.com/f-1287131759/Chemical-Compounds/N-Q-R-T-Ultramatik-International.htm Commercial Practice http://www.che.com/chementator/process_technology/A-step-closer-to-commercialization-for-a-new-green-solvent_10449.html http://city.bizbilla.com/Chemicals-Dyes-Products-in-Cyrene-4280414-cat11.html Blogs http://www.che.com/archives/chementator/process_technology/ Skill Audit I have a background of Bachelors in Management of Small Businesses and I also own a small business in Indonesia. As an owner of a small business, I believe that I shall be able to guide the group regarding the business niches as well as help in grasping the critical decision making areas of a business proposition. Having arrived at the last semester of Masters course in Business Commerce of Management, I reckon that I am academically well-equipped to provide useful insights into development of a project plan by way of focusing on critical areas of financial management, economics and analytical business thought. With a rich experience in the business field and being part of my own start up, I believe that there is a need for tremendous commitment and passion so as to successfully attain any business task. This also requires proper research and field analysis. I believe that owing to my personal experiences, I shall be able to understand requirements of the client better and also make comprehensive and realistic decisions in business for achievement of highest levels of success. Conclusion Circa is a growing and innovating company that is venturing into development of environment friendly bio-solvents, which has the potential to revolutionise ingredients used in the pharmaceuticals and chemical manufacturing industries. This project is aimed at developing the most feasible plan for the company for its establishment in Australia. Reference List Batt, R., 2002. Managing customer services: Human resource practices, quit rates, and sales growth. Academy of management Journal, 45(3), pp. 587-597. Circa, 2014. Cyrene. [online] Available at: [Accessed 19 August 2014]. Duncan, T., 2014. Harnessing European Biotechnology Research for Growth. [PDF] Circa Sustainable Chemicals. Available at: [Accessed 19 August 2014]. Ferrell, O. C. and Hartline, M. D., 2010. Marketing strategy. 5th ed. Connecticut: Cengage Learning. Grad, P. 2013. A step closer to commercialization for a new green solvent. [online] Available at: [Accessed 19 August 2014]. Lovelock, C. and Wirtz, J., 2004. Services Marketing: People, Technology, Strategy 5/e. London: Prentice Hall. Sherwood, J., De bruyn, M., Constantinou, A., Moity, L., McElroy, C. R., Farmer, T. J., Duncan, T., Raverty, W., Hunt, A. J. and Clark, J. H., 2014. Dihydrolevoglucosenone (Cyrene) as a bio-based alternative for dipolar aprotic solvents. Chemical Communications, 50, pp. 9650-9652. Sturges, P., 2002. Remember the Human: The First Rule of Netiquette, Librarians and the Internet. Online Information Review, 26 (3), pp. 209-216. Teeter, Jr., D. L. and Loving, B., 2001. Law of Mass Communications. New York: Foundation Press. Appendix Personal Development Plan Learning Goals: Despite my entrepreneurial experience that gives me an advantage over other students, I believe that this project shall give me adequate opportunity to learn in the fields of: Group Skills: Through team work, I will be able to overcome my quiet nature and develop my group skills such that the team objective is achieved successfully and effectively. This shall also require me to appreciate the differences in personal and professional attitudes of the group members and try to make best use of their respective abilities. Communication abilities: I shall be able to present my ideas and thought appropriately through practice and group tasks. Analytical thought: The task requires immense research and brainstorming related to the ways of conducting business in difficult business environments, thereby helping in building analytical thoughts so as to develop solutions to the project issues. I plan to conduct extensive research that is required to develop the business plan. Although research demands extra efforts, it shall provide me with full knowledge of the business processes. Consequently, I will be able to use my experience in the business field to explain the complicated insights to my team members, allowing the team to produce higher qualities of work. Similar to any other group, our group shall also face challenges and I shall try to resolve them by way of applying tactical thought in association with appropriate reasoning, so that decisions taken are best for the group as a whole. Success of the team shall be measured through appraisal reports over the project plan. At the personal level, the unity and concentrated group effort shall be the reward for efforts made. Read More