Queensway Plastics Business Plan - Example

Business Plan Student's Name: Course Name and Number: Instructor's Name: Date Submitted: QUEENSWAY PLASTICS BUSINESS PLAN TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY 4 1.1PREAMBLE 4 1.2HISTORY AND BACKGROUND 4 1.3. MISSION STATEMENT AND STRATEGIC PLAN 5 1.3.1. Mission statement 5 1.3.2. Strategic plan 5 1.4. GROWTH PROJECTION 5 1.5. SWOT ANNALYSIS 6 2.0. ORGANISATION PLAN 9 2.1. Management personnel 9 2.2. Consultancy of specialist services 9 2.3. Employees 10 3.0. LEGAL STRUCTURE 10 4.0. FINANCIAL MANAGEMENT PLAN 11 5.0. OPERATION PLAN 12 6.0. PRODUCTION FACILITY AND EQUIPMENTS 13 6.1. Types of machineries and equipments. 13 6.2. Cost of machineries and equipments. 13 6.2. Cost of material inputs 14 7.0. BUDGET AND EXPENDITURE ANALYSIS 14 7.1. Cost of investment 14 7.2. Monthly budget and expenditure 14 7.3 Profit margin 14 8.0. MARKETING PLAN 15 9.0. PRODUCTION PROCESS 17 10.0. CONCLUSION 18 11.0 REFERENCES. 19 1.0 EXECUTIVE SUMMARY 1.1PREAMBLE Queensway Plastics Ltd will be a new manufacturer of polythene products in Australia. It will be a proprietorship business, and as such, I shall be the owner. Queensway Plastics Ltd shall manufacture polythene products such as bottles, recycle bins, water reservoirs, carrier bags, planting bags among others. 1.2HISTORY AND BACKGROUND Polythene packaging has become a common phenomenon in the modern world. The rise in usage of these polythene packaging can be attributed to the availability of low-priced plastics. Thus, companies both small and large are producing high volumes of polythene particularly from waste disposals. The plastics are nonbiodegradable and hence a nuisance as far as the urban environment is concerned. In order to curb environmental pollution, a new trend that is, recycling of packaging materials has been developed. As a result, such products as carrier bags have been on the rise. Polythene products have a ready market both locally and globally due to their low costs. Recyclable materials are collected from households and industries. Production process takes place whereby the waste is purified, segregated, graded, chopped and palletized. 1.3. MISSION STATEMENT AND STRATEGIC PLAN A research, which was done by Porcher, (2003) stated that both vision and mission statement plays a crucial role in organizational planning. They both provide a future direction the company (Porcher, 2003, P.178). The mission statement and strategic plan of Queensway Plastics Ltd is as follows; 1.3.1. Mission statement The company guarantees customer satisfaction through the provision of excellent services and branding. 1.3.2. Strategic plan The company aims at committing a substantial amount of resources that is, time, finances and labor in order to target local and global markets. 1.4. GROWTH PROJECTION Queensway Plastics Ltd is projected to grow into three phases; PHASE FURTHER PROCESS MONTHS YIELD Phase #1 Film blowing (shaping) 3 months 60Tonnes Phase #2 Side & bottom seal (bag making) 3month – 6month Plus20T Phase #3 Injection and blow moldings 6months – 12months Plus20T Total tonnage after one year 100Tonnes 1.5. SWOT ANNALYSIS An evaluation of Queensway Plastics Ltd strengths, weaknesses, opportunities, as well as threats, will help to determine the scope upon which the company will accomplish its desired objectives (Hill & Jones, 2009, P.19). STRENGTH Strengths that will enable Queensway Plastic Ltd to have distinctiveness over other firms in polythene manufacturing industry include the following; Most goods sold are packaged in polythene bags and, therefore, there is availability of a ready market. Demand for these bags is always high and thus, profit potential for Queensway Plastics Ltd will be enormous. Plastics are readily available and, therefore, starting up this business will not be a major challenge. The road networks around Queensway are fabulous and, therefore, transportation of raw materials and finished goods will not be a problem. The cost associated with producing a polythene bag is relatively low implying that the commodity is easily affordable by all classes of consumers. Other strengths include; availability of skilled workforce, favorable weather conditions in Australia, a simple production process and uncomplicated delivery channels. WEAKNESS The following aspects can create a disadvantage to Queensway Plastic Ltd; Small allocation of advertising resources and hence a smaller market share. Stiff competition from other leading polythene manufacturers in Australia like Qenos. Start-up cash-drains. Gaps in financial capabilities OPPURTUNITY Opportunities refer to aspects that allow a company to carry out its operations in an effective manner (Hill & Jones,2009,P.19) The main opportunities of Queensway Plastic Ltd include the following; An increase in Australia’s population over the last few years will increase the polythene bags’ sales volume. Queensway Plastics Ltd is mostly vulnerable and thus, will not provide intense competition to the firm’s product. THREATS Threats relate to factors outside the firm that hampers the firm from attaining its set objectives (Hill & Jones, 2009, P.19). The following factors can prevent Queensway Plastic Ltd from achieving growth and profitability; Expensive license and permits. Change in legislation laws. Presence of many organizations on the same line. 2.0. ORGANISATION PLAN 2.1. Management personnel I will take the responsibilities of the executive manager as the owner of Queensway Plastic Ltd. With this regards, I will be the supervisor of all departments of the organization .Also, I will be assigning duties to my employees. Since I have other commitment elsewhere, I will be managing the organization part time. I shall hire two executives to assist in managing the organization that is; financial controller and administrator and production engineer. The salary of the executive shall be AUD 1,134 each. 2.2. Consultancy of specialist services The specialists will provide services in the technical and engineering field. They will also assist in installing and maintenance of machinery. I shall pay them on the market consultation rates. 2.3. Employees The business shall employee 20 workers plus one office secretary. I will advertise the job giving full job descriptions and requirements to interested persons through print media like Sydney Morning Herald and The Sunshine Coast Daily . After the advertisement and applications have been received, I will then conduct an interview whereby, I will select the best candidates for the job. The employees shall be classified into machine operator of which 10 shall be in day shift and 10 shall be in night shift. The day shift rate shall be 11.34 AUD and night shift rate shall be 17.01 AUD. Employment shall be based on experience, testimonial and professional. As the business grows, the workers will attend training programs and seminars in order to enhance their skills. The company intends to appreciate its employees by giving them incentives such as salary increments. 3.0. LEGAL STRUCTURE The business shall be operated within the legal frame work of Australia’s Factories and Shops Act. The business shall obtain all licenses and permits through laid down procedures. The business shall thus subscribe to the following that is; Occupational Health and Safety Act, Australia’s Environment Laws and Australia Standards Bureau. 4.0. FINANCIAL MANAGEMENT PLAN The expenditure and investment funds shall be put on priority of value addition, and profit generation cost control parameters. The management shall outsource monthly auditors to ensure all accounting procedures are adhered to. The financial control shall prepare the document that is; Trial balance, financial budget and Profit and loss account. 5.0. OPERATION PLAN The enterprise plan shall be based on: 1. Machinery layouts. 2. Output capacities. 3. Product design and development. 4. Standard operational procedures. 5. Relevant factory ACT regulation. 6. Stores management. 7. Final dispatch plan. 8. Technology changes 9. Market demand and customer preferences. 6.0. PRODUCTION FACILITY AND EQUIPMENTS 6.1. Types of machineries and equipments. No MACHINE QUANTITY CAPACITY 6.1.1 Agglomerating m/c 1 100Kgs/Hr 6.1.2 Palletizing m/c 1 100Kgs/Hr 6.1.3 Extrusion m/c 2 35Kgs/Hr 6.1.4 Bag making m/c 2 220bags/Minute Note: Bag making machine should be high speed servo drive. 6.2. Cost of machineries and equipments. 6.2. Cost of material inputs The business shall require 40Tonnes of waste at a cost of 0.23 AUD per Kg for every month. 7.0. BUDGET AND EXPENDITURE ANALYSIS 7.1. Cost of investment 7.2. Monthly budget and expenditure No. Description Cost Cost 7.1.1 Machine cost 4,968,080.00 7.1.2 Raw material 2,400,000.00 7.1.3 Licenses and permits 150,000.00 6,518,080.00 7.2.1 Senior staff salary 200,000.00 7.2.2 Wages and salary 267,000.00 7.2.2 Go-down rent 100,000.00 7.2.2 Electricity bill 300,000.00 7.2.2 Finance cost 100,000.00 7.2.2 Administration cost 100,000.00 7.2.2 Maintenance cost 33,000.00 Total subtotal 10,818,080.00 7.3 Profit margin NOTE: Profit margin is summed after 3months of operation. 7.3.1 3months turnover 20,400,000.00 7.3.2 Less raw material 2,400,000.00 18,000,000.00 7.3.3 Less license & permits 150,000.00 17,850,000.00 7.3.4 Less budget expenditures 3,300,000.00 14,550,000.00 7.3.5 Less machine cost 4,968,080.00 9,581,920 7.3.6 Less miscellaneous 2,000,000.00 7.3.7 Profit margins 7,581,920 8.0. MARKETING PLAN The sales shall be channeled through 2 avenues that is; three major distributors and three wholesalers. They shall be given targets to achieve on a monthly basis. Incentive shall be given to achievers. The business shall be very competitive in terms of service delivery, quality products, benchmarking and cost effectiveness. In order to perform better than its rivals, Queensway Plastic Ltd shall benchmark its services against those of competition in the industry. The company shall also consider robustness for its products. Robustness will provide Queensway Plastic Ltd with core competency by making it hard for the rival firms to imitate. Also, Queensway Plastic Ltd shall strive to deliver quality products. To attract customers, the prices will be reduced at the rate of 3% from the normal price which the competitors are charging. Due to high price and poor services offered by competitors, there will be an advantage since the company will render services at a reduced cost but of high quality. The company shall thus strive to manage costs in order to keep the price of polythene bags as low as possible (Modern, 2007, P.433). 9.0. PRODUCTION PROCESS 10.0. CONCLUSION According to the business plan, Queensway Plastic Ltd can be a great business opportunity. Therefore, the return on investment will be extremely high. 11.0 REFERENCES. Hill, C & Jones, G.2009.Strategic Management Theory: An Integrated Approach.Ed:9.London: Cengage Learning. Modern, T.2007.Principles of Strategic Management: Innovative.Ed:3.Farnham: Ashgate Publishing, Ltd. Porcher, D.J.2003.Public and Community Health Nursing Practice: A Population-Based Approach .New York: SAGE. Read More