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Everyone now a days better aware about recycle reuse. The issues related to the environment are becoming a serious problem for government as well as for the society. Therefore, before commencement of any business it is crucial to keep in mind the social responsibility. This part of report analysis describe that there are so many opportunities in New Zealand for recycling of paper as well as plastic. The main aim of this new company named Junk Movers is to give a green and clean environment to the communities of New Zealander. The company will must try to make public aware and understand the maximum use of the concept of "recycle and reuse". The first step of the company will start with process of gathering paper and plastic waste, then segregate it into several types and grades, and then transform plastic and paper into large bundles/bails, supplying all the collected waste to concerned recycling companies and will export them as well.
Main goals of the company and important key factors are as follows: -
Selection of good location for the company and suppliers identifications of tangible asset such as machinery to commence the business.
Identification of suppliers for supplying waste of paper and plastic. The company will focus on all regions such as residential, corporate community, markets and various other part of the society. The company will try to bring strong image of the company among society.
The company will sustain good relationship with distributors and buyers and all other stakeholders to keep a profitable business.
The company by encouraging the concept of reuse & recycling in the society; it will transform their attitudes to collect waste materials to resources. So, participation of people will be increased.
The company will cover the entire Auckland and then expand the business to other parts of New Zealand.
The company will work to survive in a competitive environment and will make sufficient profits.
Recruiting skilled staff and provide them proper training so that they work more efficiently.
After doing the entire environmental scan at micro and macro level, it proves that it requires very high initial funds to commence the business and therefore there will be a need for the financial resources. To recognize all these resources, value chain is analysis will be done to get a clear picture. After completion of the environmental scan it will obvious that we have to survive in a high competition industry and the company has to be more competent in Human Resources, skills, experience, technology and a good business environment. The report then continues with identification of key tasks to attain goals.
The word Waste itself indicates main problem now a days. It should be taken seriously in order to resolve the difficulty of resources of the world and problems of shortage of energy. Plastic and paper are those resources which can be recycled easily. Paper and plastic both are recyclable and renewable. Plastic is prepared from a very scarce fossil fuel such as petroleum. As it linked to the natural resources of earth and it gives very bad impact on earth, recycling is getting much necessary. I feel all are aware of the word "recycling" very well and it is no longer stranger to us. Considering the reality, the business of recycling of paper and plastic in high demand and even the government is also appreciating such business projects. Recycling of papers and plastic can conserve our natural resources such as trees. It also lessens the production cost and reduces to utilize natural fibers. There are very good opportunities in Auckland for business of paper and plastic recycling.
This report is made by Neha for a bank manager to obtain loan for commencement of a business. This report is made to start a new business named "Junk Movers Ltd." The company will start its operation in Auckland. This recycling business will mainly focus on collecting papers and plastic waste from all the areas of Auckland and making bails from this waste will be the next process. These bails will be delivered to concerned recycling companies and also exported to different other countries.
The main objective of Junk Movers is to encourage the eco-friendly trend in Auckland. The business will contribute to conserve and save our environment. Some campaigns will also be promoted to educate the community on need of recycling. The Junk Movers will mainly engaged in activities such as gathering paper and plastic waste from all the areas, segregate it accordingly and process it into bundles of paper and plastic and then delivering those bundles to recycling based companies and will export these bails to different countries.
The report then proceeds with vision and mission statement, and attainment of company's goals. Then it will also carry out the micro environmental and macro environmental scan. Further company will able to know about the Key Success Factors (KSFs) and try to attain the business goals accordingly.
At Junk Movers, struggle to attain "Eco-Green Living." and become the leader of the quality services is the vision. It will turn into the suitable solutions for the recycling of waste papers and plastics to the customers. Company will motivate people and spread awareness among people for recycling. This will be the goal of the company to make this process so easy so that no waste gets dumped on the earth. The company will serve all the areas in Auckland such as commercial, residential, malls. It will instill the process of "recycle" in people's mindset.
By 2015, Junk Movers will become the most leading recycling company. Through innovative ideas and campaigns the community of Auckland will be served with recycling of waste. It will be dedicated to serve the customers in all areas and the process of recycling will made much cheaper and much easier.
Services which will be customer oriented and customer focused will be provided by the company for recycling. It will collect the wastes of paper and plastic from all the areas, segregating waste, and then processing will be done to make the bundles and further delivered to other businesses. The mission is very straightforward: Recycle and Reuse. The main objective is to protect and save our environment, and make profit. The company will make every effort to educate community of Auckland on process of recycle. So, the mission of the company is to give qualitative services, educate people, and protection of our natural resources and the environment.
The strategy of a business is totally depends upon the capability and potency of environmental scanning. The company's success is always depends on the capability to sustain in the continuous changing environment which is always unexpected. Environmental scanning process is further divided into two parts macro and micro analysis.
4.1 Macro Analysis
It contains the problems and new challenges in the external world. The Macro Environment Analysis is usually the first and primary step of a strategic analysis; it is also known as an external analysis, a pest analysis or a pestle analysis.
"The main purpose of the Macro Environment Analysis is to recognize all the possible opportunities and threats to the business those are out of the control of the business." (What makes a good leader, 2011) The main elements are political, economical, social, technological, legal and environmental areas. It is also known as PESTLE.
PESTLE source: - (ignitestrategicsolutions, 2010)
This analysis is always done before commencement of business. It includes the analysis of current policies of the Government, rules and regulations. The main policy a company should follow is the tax policy and it has to be taken seriously as it is the main source of revenue for the New Zealand government. The company has to consider certain factors such as freedom of press, corruption level and bureaucracy. The legislation of customer protection is also includes in this analysis.
Below measures are also keeping in consideration while doing Political analysis: -
Trading policies: - The Company will have to work according to the current trading policies.
Funding and grants: - The Company will uphold healthy relations with all its stakeholders. Whenever expansion will be required stakeholders will be helpful in future funding. All funding and granting processes will be taken care of.
Wars and conflicts: - As New Zealand does not have differences with any nation therefore our business is safe from such problems.
Government policies: - As this is an environment friendly business so Government also supports such business and the company will be in safe hands.
Relationship with neighboring and other countries: - As New Zealand has healthy relations with other countries. So no problems will be faced by the company in dealing with them.
Terrorism: - This threat will not affect the company as the percentage of terrorism is zero in New Zealand.
Junk Movers will be abided by all the aspects of political rules and regulations. The complete survey will be done of entire political trends which may affect the company.
To reduce and dispose off the waste and to make New Zealand as an environment friendly nation New Zealanders has been encouraged by "Waste Minimization Act 2008". The conference held in Auckland in 2010 Waste MINZ , they followed a subject of 'The Value of Good Science' the purpose of the conference was to show the role that science plays in attaining the target of 'towards zero waste'.
The percentage of freedom of doing business in New Zealand is 99. 9 %. It shows that to do business in New Zealand has much better surroundings (Index of economic freedom, 2011).
A series of workshops runs by the environment ministry discussing on below mentioned topics:
Betterment of application of fund on Waste Minimization
Assessment on Frameworks and on Intervention Logic
The importance of collected data
Territorial Authorities and the Waste Minimization Act.
There is no detailed legislation of waste in New Zealand. The present recycling aim includes 20% for plastic and 68% for paper. These targets were set in 2010 as per the rate of consumption (APEC-Human resources development working group, 2009). The Junk Movers will aim to accomplish these targets made by Government of New Zealand through collecting waste of plastic and papers and sending them for the further process to the recycling companies.
This business of paper and plastic recycling also give contribution in the economy. It is viable in Auckland because of low density of population. Auckland has population of around 1.4 million people. New Zealand earns a big amount in industry such as processing of wood. Recycling of paper waste not only concern about environment even it give its contribution to country's GDP. It will be much cheaper available if more and more people recycle it.
The major other factors have to focused are: -
Season/ weather: - The weather of Auckland is very moderate as compared to any other parts of New Zealand. There is no difficulty in collecting the waste as there is no snow in Auckland. So, it is one of the best places in terms of season/ weather to starting up a new business.
Trade policies: - Trading is another important concern. The plan of the company is to export the waste materials to other countries as well as to sell in local market. Government always support in these types of business. The company will recognize all the policies and procedures of trading.
Customers: - No business can succeed without the customers. The company has chosen the centre location Queen Street for its business operation so that it will draw attention of maximum customers.
Market: - The business of recycling has very high in demand but quite difficult because of high competition. Competition in the market also affects the industry, but Junk Movers with its quality services will easily tackle such situation.
Inflation rate: - Inflation rate is always variable and there is no stability in economic conditions. The company will be equipped and plan accordingly to overcome such situation.
Import and Export: - As one of the aims of the company is to export, so the company will keep eye on foreign trade policies.
Keeping all the economic factors in mind, Junk Movers will contribute to the economy and provide employment opportunities with income generation.
These days' products made up of paper and plastic items are used by everyone in their day to day life. So, it plays a very important role in New Zealanders life as well. We cannot imagine our life without paper and plastics because most of the things today are we use in our daily life such as books, news papers, household items, milk bottles, containers, and switches are made up of paper and plastic. These two common things make our life so easy and it became impossible to survive without them. Therefore the process of recycling becomes more significant to cover the rising demand. It requires very less energy to recycle the plastic and paper.
It also includes:-
Customer's attitude: - It is always crucial to analyze the behavior of the customer's and their attitude. Company will conduct surveys in order to make good clientage.
Media:- Media plays a very vital role to make up and down the image of the business. So, it is always important to deal professionally with media in order to build good brand image.
Company's brand: - Making brand image is a necessity for every business. Through advertisements and promotions company will make its brand image in the market. Well-organized marketing will be done to build brand image and make all services more customer focused.
Lifestyle: - Lifestyle differs in every culture so it is crucial to understand each culture and their lifestyle and provide services accordingly.
Population: - According to the density of population Auckland is the more feasible area. The Company will try to maintain demands and supply.
Everyday new technology is being introduced and has welcomed in Auckland which is the hub of technology in New Zealand. The recycling process became more convenient due to technology advancements. From Plast India Foundation "Centre for Environment Education (CEE) got award for the innovation of 'Polyloom' as 'Plasticon 2004 Award' on First October 2004 in Mumbai in the category of 'Innovation in Recycling Technology'. For recycling the waste plastic bags Polyloom is a weaving handloom (Plastemart, 2003). Junk Movers will adopt these technologies and provide effective and better recycling services.
According to the data collected by Ministry for the Environment in New Zealand in 2010 approximately 2.50 million tones of plastic and paper waste has been disposed to municipal landfills. This reflects that the resources are not effectively used by people of New Zealand and they are contributing in pollution.
To levy the efficacy the Minister for the Environment has to conduct a frequent examination which is required by the Waste Minimization Act. By conducting such examination, the success noted by the Minister in attaining levy goals.
Increase revenue to promote and minimization of waste will be achieved.
The technique to raise the waste disposal cost in order to identify that disposal of waste has a cost on the society, and environment (newzealand.govt.nz, 2010).
Junk Movers will follow all rules and regulations made by the government under the Waste Minimization Act by recycling the waste papers and plastics.
Micro Analysis: -
Micro environment analysis scrutinizes the business environment. The forces in the same industry which influence the business are examined by Micro Analysis.
"It is the competitive environment faced by a business. It consists of the industries and markets in which the organization conducts its business" (Stonehouse.G, Campbell.D, Hamill.J, & Pudie.T, 2004)
The five forces are as mentioned below:
Power of the Buyers;
Power of the Suppliers;
Threat of Substitute Products;
Threat of New Entrants; and
Intensity of Rivalry
(MGMT 488 - STRATEGY AND POLICY)
Below diagram shows the influence of five forces on each other: -
Porters Five Force Model Source: (MGMT 488 - STRATEGY AND POLICY)
Threat of New Entrants: -
Junk Movers will face a very low threat of new entrants, as initial cost of capital is high to start a new recycling business. Lots of assets are needed such as bins, trucks, machinery to separate waste and to make bails by compressing the paper and plastic, and a centrally located office to operate which can be taken on lease. Therefore it will not easy for the new entrants to become a business rival.
Power of Buyers: -
The Junk Movers will target all the clients from residential/commercial areas and the happening events the waste collection service is used by massive numbers of customers. The number of clients is high and the companies in this same trade are very few. Therefore, the power of the customers will become less and the company will take the benefit of it.
Power of Suppliers: -
There are so many suppliers are available in Auckland for the material required by the company. There are many suppliers who provide all types of bins with the logo of the company. Truck dealers are also available in the local market for the purchase of trucks on easy installment. China is famous for cheap machinery; company will import machinery from China. Therefore, there will less power of suppliers.
Threat of Substitutes: -
The inimitable services provided by the company through keeping in mind the customers need. It will use a common bin for both papers and plastics and the segregation process will be done by the automated machinery. It will be in favor of the company. The highly differentiated services will be provided by the company which will not give chance to the substitutes to grab the market. Initially there will be a threat for time being but slowly our company will lead the market.
Intensity of Rivalry: -
The rivals of Junk Movers are: -
Zero waste: - It is the division of Kaipatiki Project (NZ) and one of the top waste service providers. The main function of Zero waste is to collect waste, transportation, treatment process and recycling. Kaipatiki Project (NZ) leads in services such as collection of waste for the local customers. It mainly operates in New Zealand. They have committed for management of waste conscientiously, authoritarian execution and growth of the environment (Zerowaste New Zealand, 2009).
Any Junk: - This Company provides disposal of all sorts of waste such as appliances, bathroom fixtures, firewood, furniture, garden rubbish and garden debris from every part of the Auckland. Everyone wants to keep their houses clean. Some people want to sell their house and demand for some free spaces in the house. This company is not restricted to anything! Most of the recycling does not allow putting certain things in the bin. All the lifting and collection work is done by company's employees on its own to save customers precious time. It is known for its QUICK & COMPETENT service!" (ANY-JUNK, 0508- ANY JUNK?, 2006)
Paper Reclaim: - This is the largest private sector recycling business and employed more than 150 employees in New Zealand. The company's was established nearly 35 years back, it has stable growth, and now became the most leading company in recycling business market. It deals in gathering and processing of waste cardboard and paper, steel cans, aluminum, plastic film, and bottles. The company owns more than 35 trucks and other work related vehicles to enhance their services as per the demand (Paper Reclaim, 2011).
KEY STRATEGIC FACTORS (KSFs): -
The important key success factors for the company are as follows: -
Supplier Identification: -
One of the important key factors is to identify the suitable supplier and get assets for the commencement of a business. Maintaining and retaining good relationship with the suppliers is helpful in getting the materials at a good price.
Identifying Location: -
A very big place is required as the company needs space for processing of plastic and paper into bails, trucks parking, entire machinery set up and space for loading and unloading of materials.
For performing daily operations an office will be taken on lease in a good location. The process of taking collection orders, orders of supply to the recycling company; completing export orders for the international clients.
It is one the crucial task to hire talented and efficient staff. There will be need of employees to perform all functions such as collection of waste, dispatching of orders, and maintaining account books. While recruiting new staff their skills and experience needs to be checked.
Customer Identification: -
Every business is depends on its customers so, good customers needs to be identified for the growth of business locally and overseas and building healthy relations with them. It is important to build the trust and faith among the customers for the growth of the company.
Import of machinery and technology: -
It is essential to make contacts with the supplier for high-tech machinery and other instruments. And follow all the excise policies to get the machines from other countries.
Building a brand image is very long term process. It takes years to build the goodwill in the market. By keeping in mind competition in the market it becomes more crucial. Once the brand image will be built company will try to maintain and time to time add value to it. It is important because no company can survive in the market without it.
Strategy of use of a Single Bin: -
The strategy to use a common single bin for all type of disposals is beneficial as it reduces the cost and a different concept from the rivals. This new technique will encourage people because there will be no need of thinking of recyclable or recyclable item which people used to dispose in different bins.
The report analysis shows that opportunities are there good to establish a recycling company of plastic and paper in New Zealand. The major aim of the Junk Movers is to provide healthy environment and advanced recycling services to the communities in New Zealand. And enhance the trend of "re-use and recycle". The company indulges in the procedure of gathering waste and converts all the junk of plastic and paper waste into big bails and supplies it to the companies locally and overseas.
The process of environmental scan of Micro and Macro analysis presents us a concise estimate of funds required as the initial cost of capital. So, the business needs sufficient resources of finance. And the key strategic factor those are required to be successful in the business market.