Development of a Business

Development of a condescensionExecutive summaryThe proposed stemma go forth be a Production crinkle named as Sangay Tissue in mathematical harvest-tideion and sales of interweave topic cover under sole proprietorship. The employment is to be set up at Bjimina in Thimphu at Bjimina as the emplacement for main production and supply site for the business and on that point be more population and ease of transportation and communication to other regions. The business testament produce soft tissue which is durable comp ared to the alive tissue and which is not yet produced by anyone in the country. SANGAY TISSUE allow provide bore tissue at a very reasonable impairment than the existing tissue, which is merchandiseed from India and Thailand. The proposed business is to provide salutary satis incidention to the customers and meet their needs by providing elevated quality, and cost-effective product. The mission of the business is to have Continuous improvement in produc ts and services to meet the customers needs.Generally the customers are divided into three categories and they are heavy users like hotels, restaurants, resorts and lowlifeteen which leave alone be mainly focus by the business. Light users like high income earners will also be focused as they use it in their residents. The business will also target and encourage remote people to use the product but not forgetting the case-by-case customers who use tissue. Being a monopoly loaded, almost all the Dzongkhag where there are more numbers of hotels, restaurants, resorts and understructureteen are targeted. However, initially, Thimphu, Paro, Punakha and Phuntsholing will be the most targeted areas to remove the product, since large number of hotels and restaurants are running well in these places. Marketing strategy of the proposed business is to emphasize the quality of tissue paper and to keep the equipment casualty as much as low to increase the sales volume and receive repeated customers.To get into international market and to use the resources available is the firms target, working towards achieving it is the firms patience, gaining fame and goodwill for the business is the firms destiny and keeping up with the same or in fact better, is the firms continuous vision.With the business philosophy, given integration of inputs, the first priority, taking into account is the customers satisfaction and with continuous innovations, SANGAY TISSUE hopes to establish long marches and steady business relations with most purchaser from home and abroad and seek mutual development.Project ProfileProposed Business NameSANGAY TISSUEProposed Business TypeProduction(sole proprietorship)Proposed FinancingNu. 20,00,000/-Sangay tissues VisionTo get into international market and to use the resources available is the firms target, working towards achieving it is the firms patience, gaining fame and goodwill for the business is the firms destiny and keeping up with the same or in fact better, is the firms continuous vision.delegationThe proposed business is to provide full satisfaction to the customers and meet their needs by providing high quality, and cost-effective product. The business mission is to have Continuous improvement in products and services to meet the customers needs. The following are also the missions of the business beside the mentioned oneAfter the few years from the day of the establishment, to produce different sizes of tissue in different design as per the desire of the customers, to meet their requirements.To make efficient and effective use of the resources available without causing any harm to the environment.Objectives The main objective lens of the project will be aimed towards self-sufficiency and independent which is one of the pillar of GNH and rather than relying and depending on other country for such a small product like tissue.Besides there are objectives as followsHuman objectivesTo create employment opportunity for th ose who are unemployed.To help employees in gaining experiences and skills.Economic objectivesTo recoil import in the country, this is likely to make the balance of trade favorable, thereby increasing the national income in the economy.To mobilize the available resources.Keys to Success1. Project locationSince it is regain in the capital of Bhutan, it is expected to be very suitable for the business where the business can have easy and direct access to get the defenseless materials. The chosen location is also expected to bear the following advantages to run the business efficiently and successfullyThe business can get the Bhutanese laborers slow at cheaper rate since there are many local places where there are many native people who are unemployed.2. CompetitionThere is no existing tissue familiarity in the country till now but import of the similar product from the nearby countries is in fact a competition. So the competitor as such allows the business to upgrade or improve t he product.3. approachability of resourcesThe resources for the tissue qualification are unwanted rot of books or paper from offices and schools and the forest (woods) which are easily available in the country. So the business need not worry about the availability of the resources (raw materials). It can be obtained easily at cheaper rate. Since the TEE PEE business is more focusing on recycling the paper waste, this can be the competitive advantage of the business.4. Availability of laborAs the proposed business firm will be located at the capital it will be easy to get labor at a cheaper rate since there are many constructions taking place in Thimphu so it will be easy to get labor.5. Low selling priceThe business is planning to sell its product at a low price compared to the competitors since the business dont spent more bullion on the raw materials because the materials for the tissue production are easily achieved and the labor are also easily available in the capital (bus iness location).SWOT analysisStrengthsAdvanced tools, equipments andMachine.Location of the Business.WeaknessesLack of able business information and research.Difficult to familiarize the brand name of the product.Initially, the business cannot produce variety of tissues in term of style and design. OpportunitiesCan sell the product without the country.Can easily find the regular customer.Good labor supply.No competition.Availability of resources at cheaper price.Threats contention whitethorn arise.May lead to price war after existence of competitor.Forest rule and regulation.1. StrengthsAdvanced tools, equipments and form.Since the production is comprised of quite long procedure for which individually machine is allocated for doing individually work, these will make task easier and job gets done quickly and efficiently which will reduce manual work. Following such quality play will not only lead to mass production but it will also lead to division of work and so possiblenes s of specialization, which will increase workers productivity.Location of Our Business.As the location is going to be located at the capital, the working atmosphere will be suitable since there will be ease of raw material and consumer. The place is very suitable because we can get raw materials nearby where the business need not have to bear much transporting charges. The business can get skillful labors from that region since people of that region have already got work experience.2. WeaknessesLack of sufficient business information and research.Since the proposed business is the first firm producing tissue in the country, the business doesnt have any reference to look at the existing firms experience. Lack of information and experience can makes the business less confident in decision making and investment. Therefore, the business has to do lots of research to test itself which requires some investment, involving higher risk in leading to unproductive result.Difficult to familiar ize brand name of our product.Even though the business is a monopoly in producing tissue, the business cannot differentiate the product from existing firm, since the business has to use same machine. Initially, the business cannot produce variety of tissue in harm of design and style.3. OpportunitiesCan sell our product throughout the country.Being a monopoly business, the firm can sell its product throughout the country. And in every get out of the country where there are restaurants and hotels, where the business can supply the product to them. The business can easily find regular customers.No competitors.Being a monopoly firm there will be no competition in the market unless impudent firm arises. So the business can win all over the full share of the market for the product, therefore continuous mass production is possible.4. ThreatsCompetitors may arise.Since resources are available and after studying the firms new competitors may arise with new innovative and improve product and compete with the business in the market.Operational Plan for SANGAY TISSUE is as follows1. EquipmentSi. No. commentary1Pulper2Breaker3Beater / refiner4Washer5Refining equipment6De-flaking equipment7Screen8Cleaners9 4 drainer machine10Head box or flow-box11Press12Dryer13Reeling, winding and sheeting equipment,14Handling equipment15Size press Machine16Cutting machine17Laboratory equipment18Auxiliary equipment19BoilerCapital itemsCost in Nu.Machine Set (15,00,000+20% tax)18,00,000Computer and printer20,000Furniture, fittings and fixture-Table (3)3000-Chair (6)4200-Curtains3000Telephone (2)4000Modem2000Total18,36,2003. Tissue paper production processThe raw materials (waste paper, waste survey, recycled paper) can be easily obtained from everywhere at heart Thimphu or other Dzongkhags. The intended business can obtain the waste paper or books from schools and offices, waste cartoon and other papers (Kuensel, paper, etc) from shops or resident.In aver to convert the raw material into finished product a set of tissue paper machine is call for which is the main and the basic asset of the business. So the proposed business will import all the materials needed from china as china deals in these tissue making machineries at an affordable price. The glue and the chemical needed will be purchased from India. As the proposed business is a partnership business with 5 partners, each partner will contribute some come ins and the rest will be taken loan from the bank.So basically the key supplier of all the machineries required will be China, India and the supplier of finance will be the five partners and the bank. Whereas the suppliers of raw materials would be the schools, shops, households and offices.The whole set of tissue production machineries will be purchased from Zhengzhou city Henam, China. One of the company officials can either go there or buy machineries or the company will deliver the machine within 30 days after fulfilling certain criteria which is m uch cheaper compared to the first option. About the glue and the chemical, it can be easily purchased from India.Diagrammatic representation of the whole processFirstly the raw materials for the proposed business are paper waste which will be easily available from schools, shops, household and offices. Paper waste includes books (text books, note books, magazines, etc), papers (newspapers, Kuensels, etc) and cartoon boxes which are useless.The second process is to collect them from the places mentioned above. These materials are also transported from different Dzongkhags to help keep environment clean and then the materials collected will be sorted out.The third process would be to clean the materials and recycle them to use for the next process.The fourth process will be to make the cleaned and recycled materials into physique by using the chemicals and the glue.In the next process the pulp will be the raw material for the production process and it will go through various machines . There will be some more process namely, coloring the tissue into various colors and then the tissue will be cut into different sizes (refer appendix 1.ii) and this process will give the final output.SANGAY TISSUE will be produced as the finished good.After achieving the final product the tissue paper will be distributed to the customers such as shops, restaurants, hotels and individuals. It will be made known to the customers through advertisement on local channels, newspaper and internet where the business will create its own account or web page.Market analysis for SANGAY TISSUEProduct description.Types of tissues.The types of tissues that SANGAY TISSUE will be producing areNapkin (which will be mostly used by hotels and canteens)Toilet paper roll.Wet tissue (which will be produced in future)Types of packaging.Colour. description/quantitySmallPink, White, Light blue, Yellow.The small package will contain 6 Number of toilet paper roll.(3 ply roll)MediumPink, White, Light blue, Yel low.The intermediate package will contain 12 Numbers of toilet paper roll.(3 ply roll)LargePink, white, Light blue, Yellow.The large package will contain 24 Numbers of toilet paper roll.(3 ply roll)The reason behind producing this particular product areTo use the waste paper in an efficient way.To reduce import and increase the export.To give value addition to the waste papers.To maintain healthy environment.2) Target marketSANGAY TISSUE production firm will be focusing 30% on hotels and 30% on restaurant as well. It is because more number of tissue paper is used by these two sectors. At present there are more number of hotels and restaurants in different Dzongkhags, in future there seem to be more restaurants and hotels coming up so that is why the business will sell 60% of its total product to restaurants and hotels. Another reason for selling more than half of the product to restaurants and hotels is that the amount of tissue is imported more by these sectors and the businesss t arget sectors are restaurants and hotels.25% of the product will be available in the shops particularly in those Dzongkhags where there are more restaurants and hotels. From the shop anyone who wants to buy tissue paper can easily get it. Shops would be one of the channels of the proposed business to sell its product to the customers.3) Competitive analysisThe proposed business has many indirect competitors of tissue product that are imported from different countries (such as India, Thailand, China and etc) with price ranging from 25 to 55 and it is also available in different colors.The raw materials used by SANGAY TISSUE is the waste papers so therefore some other indirect competitor can be the use of waste papers by the shopkeeper for the purpose of raping doma, the rural people using waste paper for sanitary purpose and the Greenery way using the waste materials for the recycling purposes.Marketing strategies1. ProductSANGAY TISSUEs tissue paper will be eco-friendly tissue pap er. This product will have no harm on the eco system since it will be entirely made by using waste paper so there is no cutting down of forest and moreover the raw materials used are the waste papers. There will be reduction in environment pollution because the proposed business will be making good use of all the waste papers.2. PromotionIn order to make SANGAY TEE PEEs tissue paper known to the general public, the business will be distributing pamphlets to the people and the business will submit some dancers from the dance academy and attract many people through this process. At the end of the dance the employees of the business will distribute shrive samples to the people. The business will even advertise its product in the local channels. There will be a website created under the businesss name so that if anyone is interested in buying online, they can just contact the concerned people through it and get the product. There will also be free gifts provided when buying in bulk su ch as if anyone buys the large packet there will be a small packet free with it.3. noteThe product will be available from the retailers, wholesalers and shops. It will be available online on the companys web site if the company generates sufficient revenue to diversify its operations efficiency. The business will also be selling the product directly to the customers.4. PriceThe business will be demand oriented and competition oriented. The business will give more importance to the customer and focus on consumer taste and preferences. The business will use other competitors as a bench mark to fix the price of the product and will follow the pricing strategy of the competitors.5. Exit strategyThere is no imprimatur that a business will be a success. If ever the proposed business fails or is not successful then the business will be liquidated in order to pay back the suppliers and the banks. The machineries will be sold to other production company who are carrying out the same produ ction or the company will give the machineries in rent on monthly or yearly basis.The proposed businesss sloganConclusionSince the intended business is in operation(p) within the country there will be creation of job opportunities for the Bhutanese people. By setting up of such business there will be reduction of import and the business can supply the product to the border area of India, which will help the government to generate the revenue.The resources for making tissues are unwanted waste of books or paper from offices and schools. There will be reduction in environment pollution because the proposed business will be making good use of all the waste papers. The business is focusing on recycling the waste paper and giving additional value to the waste which can be the competitive advantage for the business. The Product will have no harm on the eco system since it will be entirely made by using waste paper and wont cut a single tree. So therefore due to this there are chances tha t the government may support the intended business like greener way company.The intended business has every opportunity to grow and expand in the future the company will tend to continue and expand with the team spirit and loyalty to customers with the quality product that the business is launching in the market. The product will give full satisfaction as it will satisfy the customers in matters of color, size, brand, technology and quality.