11
BUSINESS PLAN
RERU PVT. LTD
Salvador, Brazil, 40015-060
PH: +13456287622
EMAIL: [email protected]
SUBMITTED BY: - VINOD KUMAR PROFESSOR NAME: ANA ANDROSIK
STUDENT ID: - 4347576
COURSE CODE: BICG9604-02
Table of Contents
Executive Summary 2
2. Corporate Profile and Nature Of The Business 4
3. Management and Human Resource 6
4. Communication and Social Responsibility Strategies 7
5. Target Market and Environmental Scan 8
6. Market Entry Strategy 10
7. Operations 12
8.Financials 15
RERU PRIVATE LIMITED FINANCIAL FORECAST: 16
Sales forecast – Domestic: 16
Sales forecast – Foreign currency: 18
Sales forecast – Units: 20
9. Risk Management 23
10. Summary 24
11.References 25
12. Appendix 27
Executive Summary
RERU Pvt. Ltd, was established in 2010 in Salvador. Brazil - RERU Pvt. Ltd is a plastic product manufacturer and seller Produces high quality plastic products, with high benchmark scores. RERU Pvt. Ltd has been manufacturing plastic for commercial purposes and has a range of products in its offering. The company is well established in the Brazilian country and is having a strong market for the plastic products which are of high quality. The company is further planning to expand its base and the current business plan uses RERU Pvt. Ltd as the chosen case organization, who is aiming to enter Canadian meat processing market by supplying freeze bags. The business the details of the chosen organization, followed by information about the required human resource, target market knowledge, operation and finance. The plan also offers details about potential risks of the project concluding with a summary of the finding. In each section of the business plan, a minimum of three bullet points has been included for faster assessment.
To have a further expansion, there would be need of different resources which will help the company to expand on its base. RERU Pvt. Ltd will need new as well as existing managers, negotiators and marketing skills enabled human resource, as the production of freeze bags will be done in Brazil with the help of the existing employees. In Canada, people with command over English, Canadian culture and business trend knowledge will be required, which is different from that of Brazilian market, therefore, new hires are inevitable.
One of the biggest markets that the company is planning to capture is the Canadian market. The company is inclined towards Canadian market as it is one of the biggest meats producing country which will help RERU to expand on its new product and would be able to have a strong market and the base.
For the entry in the Canadian market, RERU Pvt. Ltd will directly enter the Canadian meat processing market as a new freeze bag supplier. The prices of the products will be comparatively lower because of the high dollar value in Canada as compared to Brazilian Real. As RERU focus on different benchmarks and is quite particular about the quality of the products which it produces and sells, the company will be able to stand out in the market. The company will follow the standards of quality, non-pollutant and low-priced products with which it would be able to capture the Canadian market and will stand out in the competition in the market.
The home country, namely Brazil's currency Brazilian Real is less than the targeted Canadian Dollar (1 Brazilian Real - 0.35 Canadian Dollar), therefore, for the convenience of the calculation and better assessment of risk, RERU Pvt. Ltd will use the Canadian Dollar as the currency.
The sales of the company are expected to grow 10% per month.
2. Corporate Profile and Nature of The Business
RERU Pvt. Ltd, was established in 2010 in Salvador. Brazil - RERU Pvt. Ltd is a plastic product manufacturer and seller Produces high quality plastic products, with high benchmark scores. RERU Pvt. Ltd has been manufacturing plastic for commercial purposes and has a range of products in its offering. The company has scored in the top ten plastic manufacturing companies in the globe in terms of the surface quality, the rate of corrosion, the degree of recyclability, hardness and flexibility. RERU Pvt. Ltd has also scored very high in terms of chemical passivity, which has made it safe for human contact. The company's mission is to promote responsible usage of commercial plastic and inclusion of recycling as a means of business profiting.
In terms of the vision of RERU Pvt. Ltd, the company has aimed at becoming a global leader in plastic production and selling, with its high dedication of Corporate Social. Responsibilities and reliance on modern technologies that safeguard environment from pollution and generating sustainable growth. The company has recently developed biodegradable plastic sheets that are very thin and flexible. The company is planning to export the thin plastic in the form of meat freezing bags to Canada as it has one of the largest meat processing industries, which requires plastic freezing bag. The Freezing bag has been selected by RERU Pvt. Ltd, as they have low production cost and environmentally less legally entangled, making it an easy export product.
3. Management and Human Resource
· New employees will be needed
· Only managerial staffs will be recruited
· Existing staffs meeting the re-profiled eligibility will be included in Canadian market venture
· Corporate social responsibility
· Open door policy
· Health and safety
· Opportunity to do more than best
· Learning and development
· Recognition for achievements
· Care and support
RERU Pvt. Ltd will need new as well as existing managers, negotiators and marketing skills enabled human resource, as the production of freeze bags will be done in Brazil with the help of the existing employees. In Canada, people with command over English, Canadian culture and business trend knowledge will be required, which is different from that of Brazilian market, therefore, new hires are inevitable. As mentioned by Kabiesz and Bartnicka (2018), existing employees face additional pressure from the exports of products, in addition, the new managers hired by a company would have to get the support of the taskforce as well as the management, and therefore, re-profiling will be evident and necessary for existing staffs. In the home country RERU Pvt. Ltd will follow a simple tall organizational structure, while in case of the new country market, there will be an extend arm of RERU Pvt. Ltd, which would perform in a flat organizational structure sty le, making the organizational chart from differ from its home country chart.
· Organization structure – to be kept same for streamlining operations
· Recruitment and selection – external hiring
· On-boarding and training – for uniform sales methods
· Performance management – 360 degree, biannual
· Learning and development – based on 360 degree
4. Communication and Social Responsibility Strategies
1. Improving energy efficiency
a. Contribution to reducing CO2 emissions
b. Transparency of all energy flows in the company
c. Optimization of processes
d. Systematic improvement of energy use, energy consumption and energy efficiency
2. Benefits for society and the environment
CSR activities like Occupational Health and Safety, Trainings, Meetings, 360-degree feedback etc. with a focus on employees, consumers, suppliers and dealers.
educate consumers about proper disposal of plastics and in addition implement technologies that support proper reuse, recovery and recycle of plastic waste
5. Target Market and Environmental Scan
· High production rate of processed meet all over Canada
· Low supply of employees in meat processing industry
· Increasing demand for meat
Canada is highly popular for its meat processing, domestic consumption and international exports, making it require high amount of freeze bags consistently, generating a market for plastic manufacturers to sell their products, which is a major strength of choosing the country (IBIS World, 2018). As supported by Tauro, García, Skutsch and Maseru (2018), a country market with demand is a country market with consistent profit potential. Considering the decentralized distribution of meat procession organizations all over Canada, RERU Pvt. Ltd will target the entire country market instead of focusing on one province. However, the labors required for meat processing has a significant shortage, making the production of processed meat inconsistent, which is a major weakness of choosing the...