Business Plan-Eco Plastic & Mould Company - Case Study Example

Business Plan-Eco Plastic & Mould Company Table of Contents 0 Executive Summary 3 2 Business 4 1.3 Business environment analysis 5 1.4 Industry Background 6 1.5 Competitive Analysis 6 1.6 Market analysis and Plan 7 1.7 Operation Plan 8 1.8 Management Summary 8 1.9 Financial Plan 9 1.10 Assumptions and Milestones 9 1.0 Executive Summary The plastic manufacturing industry has made strides in today’s economy. Industrial revolution has made various resources scarce thus the need to develop new products. Timber and metal have become scarce commodities therefore fetch high prices in the market. Therefore, in Taiwan plastic products have been dear to the populations. Plastic products as well as mould are essential in Taiwan. This products have are important in the production of various range of products (Luo, 2014). Plastic manufacturing in the country have been important in the production of plastic food containers, precision moulds used for injection. Other products include the production of irrigation equipments, Co2 detectors as well as bottles. Eco plastic and mould company concentrates in the manufacture of plastic products. It has been in operation in Taiwan for the lasts 12 years. In developing this business plan, the company wishes to introduce a new production unit. Recent technological advancement has ensured that manufactures of plastic use materials economically. Therefore, Eco- plastic and Mould Company provides new plastic containers that replace traditional metal containers. For the last 50 years, metallic containers have been important feature in industries. However, metallic containers are prone rust, require painting, and are difficult to recycle. With this in mind, the company provides drums with same structural strength but of plastic material (Luo, 2014). On the other hand, plastics have an ability to take various shapes through molding. Since plastic products are rust, proof, able to stand diverse climatic conditions, their use in Taiwan captures a wide market. In Taiwan, plastic products have gained acceptance with diverse consumers. The company uses advanced engineering on polymer to produce high impact materials, long lasting materials. Such engineering advances have made it necessary for the production of industrial drum products. The company enjoys a market opportunity for recycling plastic products. Taiwan’s growing population provides great market opportunity for Econ plastic and Mould Company. On the other hand, the greater Asian market provides a wide market opportunity for the company (Miltenburg, 2005). In terms of competition, Formosa Plastic corp. probably is the most competitive organization in the region. 1.2 Business Description Eco plastic and Mould Company operate in Taiwan and within the Asian region. The company began its operations over 10 years ago. It specializes in producing quality plastic products as well as plastic moulds. Its market includes industrial companies, private consumers as well as laboratories. On the agricultural front, the company has been on the forefront in the provision of irrigation pipes and accessories. It has also been a contributor in the manufacture of plastic bags as well as packaging materials for other organization. The company has its leadership pegged on an effective management team (Miltenburg, 2005). This management team comes under the leadership of the companies C.E.O. Its employee’s team consists of plastic engineering experts. In order to gain a complete edge in the Asian market, the company enlists its cooperation with financial service providers. Financial institutions have been important in its expansion. Through loans, the company can finance its operations. The company further uses loan facilities to acquire new plants and equipments (Luo, 2014). The company on the other hand has its presence in the Taiwan stock market. With this approach, the company can finance its operations and gain popularity among competitors (Miltenburg, 2005). In relation to the market, it is imperative to note that plastic and its products are popular among companies and consumers. The company faces stiff competition from Formosa Plastic Corp a leading company in the region. In relation to employee relation, the company’s production plants employ new technologies. This new form of technology ensures a high degree of safety within the organization. Eco-plastic Mould Company further has several subsidiary plants within the country. On its marketing, the company liaises with other companies in production of bottles, packaging materials as well as other products. 1.3 Business environment analysis There is a strong demand for plastic a recycling product among consumers in Taiwan. There is a rising demand from users of plastic packaging bags. Supermarkets, fruit markets and other industries require plastic products. Therefore, Eco plastic and Mould Company recognize that there is a rising need for such products. Recycled resins products are on high demand on a global scale (Yen & Huang, 2013). Major products on this category include HDPE and PET (Luo, 2014). In relation to PET, it is apparent that over 800 million pounds meet market demand of an annual basis. This figure is likely to rise to a billion pound given another five years. On the other hand, plastic manufacturing industries have developed various mechanisms in marketing recycled Resin products. Plastic manufacturing organizations face stiff competition from other industries. In Taiwan, various plastic manufacturing industries dominate the market. However, some influences act a barrier to entry. The barriers to entry include high cost of acquiring equipment. Such equipments are industry specific thus high costs of exit. Legal aspects of such organizations are issues of concern. Plastic organizations face challenges from environmentalists, competitors and funding (Miltenburg, 2005). 1.4 Industry Background The first plastics came into the market in the year 1909. Since then plastic products have been everyday life. One wonders how plastic products have become popular in the modern world. A century ago there was no commercial products made from plastic. However, today surgeons use plastic to join bones; architects use it to make models. In Taiwan plastic industries exists because of consumer’ demand for products for packaging and for other uses (Luo, 2014). Therefore, in the country there are industry players responsible for development of resins. Others are processors who shape products from resins. Further fabricators are important in the development of finished products. Plastics have the ability to take various shapes and forms at considerable low temperatures. On the other hand, mould can be made to replace metallic products. One can attest to the fact that most pipes of our times come from plastic materials. Such qualities of plastic have led to the development of various industries providing employment to many. Most consumers in today’s market recognize that plastic products are important in the designing of electrical fixtures, packages, detergent, soft drink bottles, radar, radio, toys and other products (Luo, 2014). With such market possibilities, various organizations have sprung to provide such products for the market. 1.5 Competitive Analysis In terms of competitive analysis, Eco plastic and Mould Company faces competition various players in Taiwan. Some of these players include Formosa plastic Corp, Allen plastic industries as well as other companies. On the global scale, the company exports its products to almost the entire world. In such transactions, the company faces stiff competition from other global plastic manufacturing firms. Since the company trends in providing packaging products, it specializes in provision of innovative products that appeal to customers. On the other hand, to maintain a competitive edge on the packaging front, the company observes various packaging legislations (Yen & Huang, 2013). Sustainability, green production and recycling are some of the important features of the organization. On the packaging front, come of key competitors in Taiwan include Taipoly industries Corp, Taiwan Hon Chuan enterprise and Taiwan lamination Industries (Luo, 2014). 1.6 Market analysis and Plan Taiwan market reveals that there is a great demand for plastic products. The country is undergoing various economic growths. Such growth in the economy necessitates the facilitation of building products. In addition, the population of the country has been on the increase. Therefore, there is an increase in consumers markets and plastic products fill this void. There is an increasing demand of plastic products for construction, packaging and for irrigation. Eco plastic and Mould Company wishes to fill this void using various strategies. Part of its marketing plan involves using the internet in marketing (Yen & Huang, 2013). On the other hand, the company will carry out marketing drives that will cover rural areas of the region. Another strategy for the marketing plan will be coordinating with shops and supermarkets in providing packaging materials. 1.7 Operation Plan Part of Eco Plastic and Mould Company’s plan will be the creation of new outlets around the country. These outlets will act as suppliers of its products. On the manufacturing front, the company wishes to open new plants for production of products. These plants are essential in the provision of products to satisfy various market destinations. Part of the organization’s operational plan is to open different websites depending on the needs of the plan. The project also includes provision of support services to farmers in installation of irrigation equipments. For a period of one year, the business wishes to recruit new employees to Oversee Company’s operation (Miltenburg, 2005). 1.8 Management Summary The company’s management team consists of a hierarchy that begins with company’s C.E.O. Other departments come under the leadership of a General Manager followed by assistants to the lowest level. In respect to the various departments, the organization has a logistical department, finance, Accounting, auditing, production, marketing as well as human resource departments (Miltenburg, 2005). The human resource department is important in compensating employees, management of recruitment processes as well as maintaining safety. The logistical department oversees the marketing and manufacturing of products. This department provides a link between the production unit and the marketing unit respecting market trends (Luo, 2014). On the other hand, the financial department manages funds of the organization. The accounting and auditing departments provides constant checks and balances in relation to financing. 1.9 Financial Plan Eco plastic and Mould Company wishes to setup new production plants. Part of its plan is to construct three new production plants around the region at a cost of $300 million. These costs include the costs of acquisition of land and machinery. On the other hand, the firm wishes to acquire an additional $ 100 million to assist in logistical activities as well as employment of new staff. Part of its financial plan includes acquiring $ 200 million loan from banking institutions (Miltenburg, 2005). The remainder of the funds comes from disposal of assets and floating of shares on the Taiwan stock exchange. 1.10 Assumptions and Milestones For Eco Plastic and Mould Company acquisition of finances will be one of the first activities. It is then imperative for the organization to consider recruiting new employees to oversee operations on the new plan. It is also an assumption that the market condition will remain constant over the period of operation. On the other hand, it is an assumption that the interest rate remains steady over the period. Further, it is an assumption that the political condition of Taiwan will remain the same over the period of the project. References Miltenburg, J. (2005). Manufacturing strategy: how to formulate and implement a winning plan. New York: Productivity Press. Luo, K. (2014). Plastic Sheets, Pipes and Tubes Manufacturing. TIER Industry Report - Plastic Sheets, Pipes & Tubes Manufacturing, 1-12. Retrieved from http://eds.b.ebscohost.com/ Yen, S., T., & Huang, C. (2013). Trade Vertical Specialization, Inter-industry diffusion effects and technology imports: The case of Taiwan. Innovation. Management, policy & practice, 15(4), 484-499. Read More