Business Plan and Launching of a Recycling Event (Term Paper Sample)

BUSINESS PLAN AND LAUNCHING OF A RECYCLING EVENT
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TABLE OF CONTENTS
EXECUTIVE SUMMARY…………………………………………….. 2
Objectives
Mission
Strengths
Weaknesses
FINANCIAL PLAN…………………………………………………… 5
COMPANY SUMMARY……………………………………………… 7
Ownership of the company
PRODUCTS…………………………………………………………… 7
Product description
MARKET ANALYSIS………………………………………………… 9
Target Market Segment Strategy
INDUSTRY ANALYSIS…………………………………………….. 10
Barriers to Entry
STRATEGY AND IMPLEMENTATION……………………………. 13
Market strategy
Sale strategy
Organization structure
LAUNCHING OF A RECYCLING EVENT………………………………15
REFERENCES…………………………………………………………… 16
EXECUTIVE SUMMARY
The rising use of plastics caused by industrialization and consumption applications, along with augmented customer knowledge on close solid waste recycling, has caused an increase in demand of recycled plastics, and resins as well as related products. Polyethylene terephthalate (PET) is one of the highest increasing types of recycling plastic materials collected from water bottles and used consumer beverage bottles. Two main divisions namely, recycling division and packaging division will capitalize on the available opportunities in the markets available for packaging and recycled resin.
The recycling Company will make a Polyethylene terephthaline plant which will be used to clean and upgrade the PET in Australia. Its earlier capability will be 46 million dollars, and it will make use of used bottles and PET at the moment collected in Australia which gathers over 300 million dollars annually. The recycling company will have vertical integration, and it will utilize nearly all of the recycled materials available in the packaging division. Any clean flake (surplus materials) formed will be sold to external companies. The manufacturers will buy thermo form, the extruded sheet, to a high visible package or make use of it in other manufacturing operations which are of high value. The companies with large shipment of big packages or pallets will be sold the strapping. An example of such a company is lumber milling industry. The Queensland Recycling Company at present is committed to purchase all the products that are produced from its customers.
Objectives
To achieve sales of over 15 million dollars in year one, 31 million dollars in the second year, increasing to 43 million dollars. 
To hit 35% of gross margin or more in year one, 45% in year two after that 50% or more.
To make 13% net return in year one, then above 20% per annum starting in the second year.
Mission
The recycling company is a manufacturing company which is devoted to convert wastes from plastic materials into products which are commercially viable, employing environmentally pleasant methods of recycling and manufacturing. We propose to make adequate returns to generate considerable profits for our investors and finance sustained growth and constant development of products of high quality (Hines, 2008). We will also ensure maintenance of a welcoming, just, and innovative work atmosphere, which compliments diversity, hard work and new ideas.
Strengths
Queensland recycling company has the following strengths which lead to success:
To Secure Supply- Contract for provision of used bottles and the wastes from manufacturing industries to be used as PET raw materials supply stock.
Marketing - contractual planning for the sale of nearly all the primary production.
Management - strong superior administration with widespread, sophisticated, industrial knowledge.
Potential Weaknesses
Lack of raw materials for low cost feed stock
Queensland recycling company is positive that it has excellent feed stock of low cost which is as a result of Australian based post-consumer beverage bottles recycling collectors, and is backed up by other identified sources. 
Unreliable technology
Queensland recycling company will use a verified, original technology that had been earlier established by one of its leaders to be used in the cleaning in addition to recycling phase. Commercially proven technology will be employed in the extrusion division. The company is employing exceptional recycled PET equipment which is employed by well-known PET manufacturer’s extrusions. 
Unavailable market for Queensland Company's products
The wide skill of the team in charge of management has permitted them to be familiar with available markets for the company's products. Their proficiency and reputations have permitted them to achieve commitments for nearly all of the designed primary production. 
Lack of enough markets near the company
Markets that have already been recognized are mainly nearby therefore the company enjoys the advantage of delivery on time and freight expenses.
Unattractive top management 
Queensland Company has a world-class executive team with verified capability and direct knowledge in the market segments of the Company.

Company may fail to meet up environmental principles
This environmentally-friendly endeavor seeks to provide for the establishment of technically viable and economically feasible solutions to recycling of post-consumer plastic bottles, in addition to environmentally conscious home recycling practices which sort out and return almost all of the procedure of water to the lines of production.
Company may be incapable of selling all of its capable production.
Through the superior Management's contacts, Queensland Company has recognized possible clients and acknowledged commitments for every of the production latent to the primary facility.    
FINANCIAL SUMMARY
Following duration of four months to start-up of construction of the recycling and packaging facilities, the company will purchase equipment, and integrate the business. Sales will commence in the month of February, and the sales in the first year will be more than $10 Million. The first year net profit to be realized is targeted at $ 2.5 million. Approximately $500,000 is being invested by the companies owners where the total is 1.8 million dollars and they are securing a long- term loan of $800 000 million.
The Recycling Company is also looking for $270, 000 investments to start its operations. These finances will be used to acquire a recycling line and a manufacturing line, in order to put in place plant facilities and for operational capital. About 48% of equity will go to an outside investor who will be providing this amount and also receive an internal rate. There will be a public consideration to offer stock or a buy- out by a connected business at the end of that period. The transactions below $25 million have an average of 5.3 times EBITDA, whereas transactions in the range of $25-250 million have an average of more than 7 times EBITDA. This information has been indicated by the current information on private sales of industries which are similar. Additional information is in the Financial Plan shown below (Green Event Ideas, 2007).


COMPANY SUMMARY
Queensland Company will benefit from the opportunities available in the packaging markets and recycled resin markets through two main divisions namely recycling division and packaging division.
Ownership of Queensland Company.
Queensland Company is owned by its first founders, K. Braddock, B. McGuire and J. Smith. They are the planned operating entity executives. This plan was developed by these three persons, with the intention of applying for their widespread knowledge and establishes associates in the business so as to structure a thriving beneficial corporation.
PRODUCTS
Queensland recycling company will operate using two processes in the similar facility to produce.
PET flakes clean and recycled, recovered from used bottles and wastes produced by its sheet clients.
PET strong strapping in order to secure big packages; via 100% RPET created in-house
Product Description
Custom thermo formers will be sold to roll stock sheet so as to mainly be used to manufacture highly-visible wrapping. Also it will be sold to lubricated and fabricated manufacturers of plastic products. Strong PET wrapping strapping will be used to produce packages in such industries as corrugated and lumber milling. The two merchandises will be extruded from used PET bottles. Through the use of a patented process, Queensland recycling company will engage into cleaning and purifying the PET material. Even if the business expects to adapt all of its feedstock into extruded products, exterior manufacturers will be sold to any surplus flake (CRNA...