SEB725 Engineering Entrepreneurship- Methodological Foundations
Demonstrate evidence of enhanced personal knowledge, skills and competencies relevant to the management of engineering entrepreneurship Communication: using oral, written and interpersonal communication to inform, motivate and effect change Critical thinking: evaluating information using critical and analytical thinking and judgment.
Answer:
Human waste sludge has long been a waste issue for cities that basically control waste treating plants. In urban regions that basically deal with large quantities of waste, human waste is usually disposed in volumes at municipals land-fills. Compelled by federal and state orders, composting and recycling of municipal compact waste has basically augmented intensely in the past ten years (Bong, Hashim, Ho, Tan, & Lee, 2017). There are about ten thousand curb side recycling plans in USA and about 20,000 drop off centres for decomposable materials. Sigma Waste Management business idea presents a chance to recycle a land-fill bound wastes, save the land-fill space and provide the customers the chance to benefit from the various affirmative properties of the composted materials. Human waste sludge basically comprises of a high nutrients value that can be treated in order to provide a quality solid enhancer and plant food as far lower than organic manures presently sold in the market.
Business Description
The name of the business will be Sigma Waste Management. The name originates from the word solid which means waste. The uniqueness in the name will attract many customers since it is different and the only one in the region. Since it is the one and only, the name will be easy to be identified thus making the customers of the product and services being offered by the business have an easy time in recognizing the name easily without any difficulties (Economides, & Tåg, 2013). The company reprocessed waste will be directed towards fertilizers producers, landscapers, farmers, nurseries and government organizations who will basically profit from the composts plentiful soil improving its characteristics.
Sigma Waste Management has a noble and bright concept which requires a sizeable amount of start-up capital. The start -up capital requirement is occasioned by the fact that the waste management will trade in a wide array of solid waste to meet its one stop waste management status (Mathur, Patan, & Shobhawat, 2012). Borrowed from well- known waste management business found in major world cities, such a business for survival and competitiveness will need funding to cater for business space rent which ideally is offered at a premium because of the building importance in Mumbai, India. Additionally, Sigma Waste Management will go an extra mile to rebrand the products to have a taste and appearance of Mumbai, India. The business address is as follows.
Business location and map
Sigma Waste Management will be located at the City of Mumbai. The company plant will be at Mumbai which is along the Sigma Beach Rd, opposite the Sigma Supermarket. The company is located at this region since it the landscape slopes towards the company which makes it easy to collect the waste products from the residents.
Business Idea
After vibrant feasibility analysis, the reasons below influenced the owners of the business to select this specific location. No waste management business is situated in this region or in the neighbouring cities (Guerrero, Maas, & Hogland, 2013). The area population mostly relies on one waste management that is India waste management which is situated 20 miles away. The number of rivals was also an influencing aspect.
Strategy and purpose of the Business
Si
gma Waste Management is a partnership made of four people. The partners have decided to contribute INR1.5 million as start- up capital which would be translated as share capital. The partners will share the profits and losses according to each partner capital contribution (Parks, Olson, & Bokor, 2015). The partners will be mainly involved in strategic decisions and maintain a passive management. The will be represented in the day to day operations of the business by the waste management manager.
Business mission statement
- To start a business that will help conserve the environment, reduce waste and recycle waste products that will satisfy customer’s needs.
Business objectives
- Flush revenues for the first one year of business and increasing each year afterward.
- Launch the recycling plant in Mumbai City to incorporate five composting divisions in the first year (Edjabou, Jensen, Götze, Pivnenko, Petersen, & Astrup, 2015).
- Open further plans in year 2 and year 3 so as to serve other parts of the country and the Mumbai City parts of the state.
- Continue to promote Sigma Waste Management by soliciting and contacting business from further cities and fertilizer using customers.
Permits and licenses
The business license will be attained from Mumbai municipality as it will cost INR5,000 whereas permit will be attained from India certifying board via the Local Government Ministry that will cost INR4,000.
By laws
The business should embrace corporate social responsibility by employing the local residents and embracing the region structures like roods (Gunda, & Nleya, 2016). The business must not be health threat but a promoter of health and therefore will recycle and manage the waste products from the entire municipality because the company will have a well-managed and constructed pipe system to avoid water or land pollution.
Market research and analysis
Sigma Waste Management is entering a market where human waste sludge’s has not been reprocessed on any substantial scale in Mumbai or the neighbouring regions. This is a viable and unique idea that addresses the desires of diverse clients and reaches an unexploited market with incredible growth prospective (Demirbas, 2011). One of the smartest aspects is that the company is anticipated to achieve a strong cash situation and realize profitability in its initial year of operation. Because of a large desire for these services and products, and a lack of direct rivalry, our prediction of quick success is achievable.
Market analysis
Market analysis is the study on the attractiveness and a dynamic market for a business entity such as the Sigma Waste Management. The market analysis directs the business profitability markets as well as the finding the integral market for the business. Market analysis plays a vital part in the efficiency and the effectiveness of the Sigma Waste Management, the analysis will define the direction of the business operations based on the customers’ certifications as well as identifying the shortcomings, opportunities and the strengths of the business (Diamond, & Tolley, 2013). Market analysis in Sigma Waste Management will focused on well-defined strategies on promoting the business products and services not only in Mumbai but in the global market. The phenomenon will also consider the business predetermine activities such as the decision on the inventory, workforce, promotional activities as well as the purchase of new business equipment and assets.
Potential market
The target clients are couples and families who live in big houses around the town. The business potential consumers will be individuals living around the area and this will be people from diverse classes, occupation, religion and geographical setting. The consumers will benefit with reasonable products from business since the services will be accessible at all times hence consumers will enjoy the products well without interruptions (DeYoung, & Baas, 2012). Organizations will also be the targeted clients as the business will be situated near several institutions. Diverse companies are also the company potential customers as people of different companies who will require my products to be supplied to them. From the 95% market segment, the business anticipates approximately 40% of the customers to use Sigma Waste Management products since the company plans to produce high quality products that will entice several clients (Pires, Chang, & Martinho, 2011).
Market plan
This intends to give insight on how the operations will be piloted. The business anticipates to exploit the sales as well as creating long-term consumer relations and channel members assurance marketing strategy for a medium businesses (Guerrero, Maas, & Hogland, 2013). Medium business management description of rivals comprising of the demand level for the products or services and strength and weakness of the competitors.
Market Share
The population of Mumbai City is approximately 81 Million people which they cover an area of 100 Sq km and may be each person will produce at least 500 Kgs of solid and 500 litres of solid per day.
SWOT Analysis
The measurement is the investigation approach used for Sigma Waste Management to review the likelihood of options tending to ecological and industry patterns, the anticipated interested groups, and the opponent (Club, & Chen, 2015). The SWOT analysis table is demonstrating all the threats, weaknesses and strengths, and opportunities are launched to be deliberated by the investors.
|
Strength |
Weakness |
Opportunities |
|
Full time working by employees Skilled Personnel Strongly reputable Well positioned |
Still new in the market |
Steady market in the state It’s the only waste management in the area |
|
Qualified workers Firmly reputable High safety |
Concentrate in diverse types of waste management products |
High quality fertilizer and services |
PEST Analysis
|
Political The political status is stable Existence of strict labour law Several regulations should be followed to start up the business like the business license |
Economic Mumbai Expo 2020 is a great chance to market our products. The economy is favourable Strong currency in relation to other currencies |
|
Social Increasing in population and it is also expected to increase in future. Increased number of travellers in the country Young population like using toilet Low tax in India thus increasing the purchasing power of residence |
Technology The country spent a large amount of money into improving the waste technology The use of social network such as Twitter and Facebook has increased by 45% Availability of diverse Webpages |
|
Environment Favourable weather condition India attitude towards waste management The issues of global warming |
Legal factors Availability of strict labour laws Availability of customers’ protections units Existence of employment laws like age and wages |
Competitor analysis
Stiff rivalry in waste management business is the key obstacle that inhibits diverse companies from entering into the market. Presence of firm competition in the business has barred new rivalry from entering into the market (Connole, Shannon, Watson, Wrisberg, Etzel, & Schimmel, 2014). Sigma Waste Management basing on efficiency and quality, the company will lay down its plans which will facilitate it to overcome its competitors for example, ensuring extreme best public relations by introduction of consumer care service, ensuring well qualified and sufficient personnel and through the use of different media channels to advertise its products to ensure maximum number of customers.
Distribution strategy
The proposed business will have the distribution channels. This will involve wholesalers, retailer and also directly to the customers. Whole sellers and retailers will sell further the products to the consumers or end users, hence making profit. The enterprise will on other hand sell its products directly to customers. Below is the representation of the distribution channels of the products (Hollensen, 2015). The options for developing the technology are subcontracting because of the simplicity that is usually involved when outsourcing some of the products. The options for producing the product will involve subcontracting and licensing other firms to deliver goods that are of high quality to the business. The options for sales and distribution will comprise of whole sale and use of distributors or the sale representatives so as to enhance speed.
marketing plan
The business marketing plan is a provision to meet management of waste in India to enhance clean environment as well as constant business growth (McKenzie, 2015). The business plan should allocated INR10,000 for marketing products both online as well using the perspective passive strategy which employs social media or personal selling, print media and electronic. They enhance numerous aspects of gift brand awareness thus instigating the differential reaction that improves market (Pires, Chang, & Martinho, 2011).
The website will be registered with the directories gift product sites and search engines substantiating the marketing of the waste management business product and stores location. The website will comprise of testimonials and FAQs page. Other links which may be useful to us include product prices and discounts.
Operation and staffing
Human Resource Management
Sigma Waste Management will recruit its workers through advertisements where it will publish its opportunities on the internet at whatever point it will need employees (Gunda, & Nleya, 2016). This aspect will be a rational trail for me to convene diverse persons and communication will less challenging because it will pull in varied potential candidates and workers by relocation the production and the organization itself. The business will select the best employee for my trade by ensuring he or she is fit for the trade and must to be ready to work for the achievement of the business.
The business will be a partnership kind of business this is for easy management of the business. The business will employ skilled and qualified persons (Blank, 2013). The real owners of the business comprises of the Engineers, Entrepreneur, Technical Expert who will combine all their diverse efforts and combine all the factors of production to ensure that the business objective is uphold to a greater heights (Queiruga, Benito, & Lannelongue, 2012). The owners of the waste management is the Engineers himself, his role is that of risk taking, taking part in managerial competencies that concerns the growth of the waste management like planning leadership and accounting, the manager whose responsibility is that of marketing, planning, administration and coordinating Sigma Waste Management services such as cleaning and colection facilities. The technical and management experience that is needed for the business include; managers who oversee the whole operations, the finance director who will be in charge of finances and the waste management directors.
|
Personality |
Qualifications |
Duties |
Responsibilities |
|
Chief Engineer -Manager |
Should be aged between 30-40 years with resilient personality and dynamism Masters in Engineering |
Chief engineer will provide decisions by selecting a best course of action that the business will follow in pursuit of its goals. Design in advance what to do. |
Resolving any problem which may arise between the business and also between the employees |
|
Senior supervisor - Engineer |
Should be minimum 27 years. Graduate from a recognized institution or youth polytechnics. Has experience of 2 years. Hardworking individual and cooperative. |
Should be able to keep accounts of the daily business operation. Should be able to ensure that all workers are working on their respective areas. |
Should be able to advise the manager and also report on any occurrence in the business |
|
Accountant. |
Should be a minimum of 25 years old. Should graduate from a recognized accounting college. Should have reached minimum degree in Accounting Should posse’s good public relation skills. Should have a working experience minimum 3 years. |
In charge of business accounts. Should be able to keep the financial analysis documents for the business and be able to record the business financial status. |
Preparing the budget and receiving business documents |
|
Employees |
-Should be minimum 18 years old - Should have graduated from a recognized college or known polytechnics. |
-The employees are supposed to do check diverse services in the company premises. -Should be able to handle emergencies and must have at least one year experience. -Should be hardworking and willing to cooperate. |
-They should report any malfunction of the machines to the manager through the senior supervisor machines and the business equipment. |
The business will reward my employees by their level of education and also through their hard work. The business will motivate my employees by taking them foe a trip at the end of the year or giving them little amount of money to celebrate for Christmas (Queiruga, Benito, & Lannelongue, 2012). The business will compensate my employees as it will pay them on time to reduce complications. The best approach in compensating the employees is compensating them for production, time and knowledge this will motivate them and make them work extra hard because they will feel appreciated by the management.
|
Post |
Salaries |
Medical allowances only |
Total |
|
Manager Account Head Engineer Receptionist Chief Engineer Engineers Cleaners |
18,000 15,000 12,000 11,000 10,000 8,000 7,000 |
1,000 850 850 850 850 850 850 |
19,000 15,850 18,850 11,850 10,850 8,850 7,850 |
|
|
|
|
88,100 |
Breakdown salaries and wages for service staffs
|
Post |
Basic salaries |
Medical allowance |
Commuter |
Total salary |
|
Receptionist |
8,000 |
850 |
4,000 |
12,850 |
|
Engineers |
7,000 |
850 |
4,000 |
11,850 |
|
Service men |
6,000 |
850 |
4,000 |
10,850 |
|
Cleaners |
5,000 |
850 |
4,000 |
8,850 |
Motivation of employees
Set little weekly goals
As a manager he is responsible for setting up smaller targets for every employee this is one way of making them work and work responsibly, find ways of motivating them having achieved their targets, by doing so it will make them understand why working is important.
Radiate positivity
As a Director or manager I will create a tradition where you become so much enthusiastic and make your employees to have that same positive energy, include them in making fun, joke around, playing games and even playing music (Karmperis, Aravossis, & Sotirchos, 2011).
Financial plan, analysis and forecasting results
The picture of financial projections is establishment based on accounting professional who is expert financial engineer (Queiruga, Benito, & Lannelongue, 2012). At initial stage, the business will invest most on own asset as well as taking long-term loans from various financial institutions with lower interest rates to facilitate the enough funds to meet the business projections.
Assumptions in preparation of business financial plan
Most vital assumption in the financial planning is cash flow statement because the statement should consists of cash flow for 1 year and cash flow of three years and breakeven point (Mariotti, & Caroline, 2011). It includes best projections based on the possibility analysis and braced by the new inclinations in the waste management markets. The financial plan will totally rely on some assumptions such as,
- There will be a high growth of Indian economy in the city since there is little rivalry in Mumbai region (Pires, Chang, & Martinho, 2011).
- There is insignificant influence on technological trend that may render the company and its services and products outdated.
- The accessible equity capital will enable support and finance of the company activities.
Simplified financial analysis and projections
Finance
Sigma Waste Management will require INR5.0 Million of business financing as a start-up capital for leasing the business space, workforce, business permit, sustainability, supplies, legal expenses, advertisement, promotion and credits repayments. The funds related plan depends on upon necessary uncertainties, the bigger part of which will appear in the projected income statements and financial records (Mathur, Patan, & Shobhawat, 2012). The capitals sources are INR3.0 Million provided by the owners' worth. Another INR0.5 Million provided by the trade partners. A credit advance for INR1.5 Million will be borrowed from bank. INR5.0 Million is the total amount projected for the business to operate.
Projected cash flow
Cash flow statements usually offers comprehensive entries of cash inflows and outflows and also indicates the data in a concise manner. Sigma Waste Management is seeking for capital amounting to INR5.0 Million (Queiruga, Benito, & Lannelongue, 2012). However, no requirement for any other extra resources would be required. The table shows below shows Sigma Waste Management cash flow for one year.
Projected statement of financial position
A statement of financial position is considered to be a financial report that often exhibits company assets, liabilities, and shareholders’ equity at a particular period of time. The below projected balance sheet express Sigma Waste Management liabilities, assets and capital invested by shareholders (Pires, Chang, & Martinho, 2011).
Break Even Analysis
A Break Even analysis sums the amount that revenues exceeds the point at which the business starts to generate profit (Schutz, Rezg, & Léger, 2013). For Break-Even analysis, Sigma Waste Management uses the following information, Total fixed expenses and PBIT.
Breakeven point in units = Fixed Cost/ (Sales Price - Variable Cost)
Breakeven point in units = 1,200,000
(600 – 200)
Breakeven point in units = 3,000 units
Breakeven point in value = INR1, 200,000
Sigma Waste Management financial ratios
Financial ratio analysis is usually calculated using the financial data, and this analysis is affected by the changes that arises in the financial statements from various items like financial inflation (Yay, 2015). Financial ratio analysis is important as the first step of the financial analysis in order to attain rapid pointer of the business economic health in its economic life.
Compliance with Sigma Waste Management code of conducts
Sigma Waste Management employees are required to comply with all the rules specified by the business as part of the employees communications on the day to day basis.
Employee’s personal duties
The company employees should sustain their personal roles as further code of conducts. This particular business ethic usually comprises of diverse data that considers the moral and legal results to any individual employee who goes against the stipulated policies.
Personal values
The employee’s qualities will be conversed concerning how the experts execute everyday communication with different employees, clients and suppliers and how they perform their daily duties (Oguntoyinbo, 2012). The aspect of teamwork must to be kept at the most notable possible state as this will provide the company with a better capability to reduce unessential issues in the business.
Sigma Waste Management business control
The company is basically controlled by a team of managers who basically ensures that efficient procedures and processes have been initiated well. Controls are the intelligent procedures, processes and safeguards that basically protects the business from inappropriate or uninformed decisions by any of the team manager (Guerrero, Maas, & Hogland, 2013). Sigma Waste Management will ensure that it has more than one person basically being involved in any one cycle of money since this is considered to be an essential check and balance. Having more people being involved sign off on all funds cycles thus reducing any potential temptation and also makes theft or fraud less likely. The company will also thoroughly check independent contractors and employees before it hires them so as to ensure that the company deals with a trustworthy individuals. The company will also attempt to reduce liquid cash because this is always an aspect that provide diverse temptations to the employees.
Sigma Waste Management business sustainability
Sigma Waste Management will have a role of improving the environment and also dealing with climate changes is basically certain. India’s corporate social responsibility rules purpose as a self-regulatory structure that the business observes and ensure its active compliance with the India law, moral practices, and global standards. Business sustainability is an appositive aspect that assists develop the welfare of the society entirely (Barringer, 2012). The aspect of business sustainability seeks to heighten responsibility for numerous corporate actions and also to sustain a positive force on the environment and stakeholders that incorporates communities, employees and investors. Sigma Waste Management will express business sustainability through;
Waste and pollution decrease procedures as levied by Indian law
Contributing diverse educational and social plans as essential to the Indian people
Attaining sufficient revenues on the exploited resources in India.
Conclusions
This business plan offer substantial information and actual figures to be utilized in starting-up with the waste management company that recycle both solid and liquid wastes to both the existing and the new customers in the entire nation (Oteng, Arguello, & Gabbay, 2012). The SMART goal should also be utilized as this aspect is considered to be an apparent determination of the whole business performance and this will ultimately rise the firm’s revenue and share in the market. Sigma Waste Management will also add the Gross Domestic Product of India since the company will offer diverse jobs openings to the Indian people. The nation will thus expend few resources in the overall services provision to the general public as a result of the concentrated work chances available to the public. The business will also increase the countries national income because of the aspects that the business will provide employment opportunities to the citizens. Several people will work in the company and it will reduce the countries dependency ratio.
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