Abb Essay

As a result the front-line profit center managers’ performance is getting affected. * The conflict between long-term technical development and short-term profits is making the situation worse. As per the Business Area’s concern, the COMSYS project should be given priority over other activities as this project, if successfully implemented, would enhance the operations and efficiency of our relays business across the world. However, the development of the project is affecting the daily activities of the company. The problem spilled-over to the regional transmission performance and thus allocation of funds to the project COMSYS (in this case investing in R&D) rises as an important issue to be discussed. * Such an issue increases the difficulty in reaching to a decision. The more time we take in reaching to a conclusion; more will the performance of the company get affected. First of all, we need to ensure that the development of project COMSYS doesn’t affect the operations and performance of the company. Second, we need to allocate suitable resources like funds, workforce etc. or project COMSYS separately. Moreover, from the short-term perspective we need to implement the project as soon as possible as the resources allocated to the project would then be available for daily operations, and from the long-term perspective we would be able to eliminate the compartmentalized framework of the profit centers and thus form a common base of software and hardware. * In the current situation it would be difficult to achieve this goal as the priorities within the organization doesn’t coincide. Project COMSYS is important for long-term development of the organization and, thus, needs sufficient resources for its implementation. I would, therefore, request the committee to take the afore-mentioned points into consideration and carry this discussion forward and helps us to reach to a decision. 2. ABB’s Global Matrix: As mentioned in its annual reports for the year 1988 and 1989, the Chairman(s) has(ve) clearly mentioned about the strategy of â€Å"think global, act local†. Since the merger the ABB group has been following the philosophy of decentralization; its aim to be close to the customer, to have short-lines of communication and decision-making and clearly defined accountability, all are reflected in its matrix structure. The matrix structure was proposed by a 10-person top management so that it enables the group to achieve a balance between its global business focus through its 58 business areas with the market created by the 1300 local companies under the umbrella of several country-based holding companies. The structure focuses on the principles of decentralization and individual accountability with clearly defined responsibilities from business areas heads to regional and front-line profit center managers. The business areas were responsible for carving out strategies while the local companies were responsible for implementing the strategies and achieving the objectives. All the business area heads had additional responsibilities of their national company’s operations. Thus, the overall goal of the top management was to develop managers who can take leadership roles as a result of which â€Å"a self-driven, self-renewing organization† would be formed. One of the main reasons for the success of the matrix structure in ABB was proper communication of the philosophy by the top management to every single employee of the organization. Communicating values to the managers was given priority based on the belief that managers are loyal to values rather than to the company or a particular boss. The core values included quality not only in products but also in the organizational processes and relationships. The management emphasized on dedication to productivity and performance at all levels of the organization. The structure implemented was well in line with the overall strategy of the organization. With rapid acquisitions after the merger ABB grew bigger, spreading its operations throughout the world. The matrix structure, therefore, provided a platform for ABB to absorb the acquired companies and made implementation of its strategies in them easier. One of the important initiatives taken by the top management was to translate the company’s philosophy to specific task requirements for managers at all levels. Throughout the internal restructuring process it was ensured that the organization was not distracted from the market place. Important issues were delegated to teams consisting of front-line managers. The company also had a unique philosophy of resolving of problems wherein the problem, if escalated to the higher level manager, was pushed back to the team to resolve and to reach to a conclusion. This process enabled and enhanced the problem solving capabilities of the managers. In order to implement individual accountability, a transparent reporting system named ABACUS was developed to collect performance data for all the 4500 profit centers in dollar denomination. The business area heads did not stop with just crafting strategies, rather they were personally involved up to some extent in implementing the strategies and policies. The top management, also, was well informed of the daily activities as well as the performance of all its companies. In case any business underperformed, the top management would step in and demand explanation and offer help if needed, thus, giving proper attention to all its businesses. All the above mentioned points explain why ABB was successful with the matrix structures while many could not. Having explained the advantages of the matrix structure, I would like to mention few disadvantages which were prevailing in ABB too. 1. The complex structure with dual hierarchy sometimes leads to confusion and conflicts within the organization resulting in decreased productivity as is visible in case of the COMSYS challenge faced by Don Jans in ABB. . It is sometimes time consuming and delay in taking decision may affect the organization’s performance largely. 3. In such a structure it is difficult to ascertain accountability. The larger the organization, the complex the structure, thus, more difficult is individual accountability. 3. Management roles and responsibilities in ABB and Don Jansâ€℠¢s performance in ABB The management of ABB has been playing a vital role in the post-merger restructuring of ABB. The structure evolved as a pathway for the management to achieve its goal of operating in a global scale. It provides managers the flexibility and autonomy in taking decisions. The management was driven by policies made by the CEO, Percy Barnevik. The frameworks set by Barnevik were well implemented throughout the hierarchy, for example, Barnevik implemented â€Å"7-3 formula† which says that it is better to decide quickly and be right 7 out of 10 times than delaying action in search of a perfect solution. This policy was driven by the principle that the only unacceptable behavior is not doing anything. Under his leadership, the company grew rapidly with numerous acquisitions across the world. Nevertheless, the same philosophy, values were implemented in each of its companies. The matrix structure of ABB defined responsibilities for business area heads to work on the strategy whereas the front-line managers were held responsible for the daily operations of the local company. The managers were provided autonomy to the extent that they had control over their company’s balance sheet such that they inherited their results year to year and, thus, the top management had no say in the decisions regarding their company’s operations. This particular autonomy motivated many managers to perform better and better. As ABB was acquiring companies, it became important for ABB to ensure that the acquired companies imbibed the culture and values of ABB. The management took this as a challenge and ensured this by communicating the strategies and goals of the organization to managers from corporate level to business area heads to country level managers. One such regional manager for the relays division in the Coral Springs, Don Jans, who became part of ABB after the acquisition of Westinghouse in early 1989, had well-received the communication from the head of the ABB’s power transmission segment, Goran Lindahl, where he emphasized on the responsibilities of the local companies to implement the plans and achieving positive results. It was not an easy task for Don Jans and his team from Westinghouse to adapt to the culture of ABB, however, he found the management of ABB much supportive and involved as compared to that by Westinghouse’s. When first exposed to the philosophies of ABB, Don Jans found it to be much different than Westinghouse, where the decisions were taken by the top management, unlike ABB where he had the autonomy of taking the decisions. He found ABB to be much more flexible as the decisions were very much delegated and the organization was result oriented, i. e. he top management continuously monitored results of each of its companies, and would interfere only when the results were not satisfactory. Proper communication of the organization’s strategies to the managers was given importance as they were the ones who were responsible for achieving results. For Don Jans this experience was exhilarating, as he mentions once in a meeting where the corporate managers(for relays business) were presenting to his team â€Å"about how the industry was developing, where ABB wanted to be, how it was going to get there, and so on. †. Such meetings were received in a positive manner as they educated his team about the organization. Moreover, the meeting did not end there, the proposals for investing in relays business by his team were given proper attention, which further encouraged Don Jans to provide better performance. The matrix structure provided Don Jans with the flexibility of operations and taking decisions. Due to which the performance of relays business (of which Don Jans was in charge) had improved. With clear communication from the top management, he was aware of what was required to deliver. He used his experience in the industry to invest in a small-scale in microprocessor relays technologies as he had financial resources at his disposal. He used his freedom to improve the product lines of the relays division by broadening the microprocessor technologies experiment to solid state devices, and thus gave ABB a competitive advantage in the market where other players were taking advantage of the technology. Thus, Don Jans tried to improve the performance of the relays division by leaps and bounds by regular investment in newer and better technologies.

Modernism Versus Postmodernism

Modernism vs. Postmodernism Post-modernism follows and shares many of the same ideas as modernism. Though, at the same time, they differ in many ways. These distinctions can be seen in the two works of literature, â€Å"Death of a Salesman† by Arthur Miller and â€Å"Glengarry Glen Ross† by David Mamet. â€Å"Death of a Salesman† represents the modernist literature. Modernism is a style of literature that came about after World War I in Europe. It emerged in the United States in the late 1920s. Modernism was the response to the commotion, which occurred during World War I.The narrator in the play is limited and omniscient; he or she observes the thoughts and actions of Willy, Biff, and other central characters in the story, a type of narration that was new to literature. Instead of writing literature objectively, many authors started to use a subjective writing style. Miller captures this in the character of Willy. The readers are able to see the world through th e eyes of this one character and what is going on inside of his head in many instances such as when he imagines seeing his brother and says â€Å"Ben, I’ve go to talk to you. †The idea of rejection of tradition but trying to find answers is one of the central themes throughout the play. The setting is captured around the American Dream. Willy, like the rest of men around him, only wish to have a perfect job to provide for a perfect family in a perfect home. Though, Willy’s job, family, and home are nowhere near perfect. Throughout the story, Willy struggles to live up to this materialistic society but is unable to and this is what leads to his downfall. Throughout the story he is looking for an answer, and he believes the answer is if he dies, his son, Biff, will be successful and rich.This leads to Willie’s death. Miller also shows the clear distinction between high and low popular culture. High culture, being the elite, and low culture, being the oneâ⠂¬â„¢s less well off. It is evident there are people who are better off than others in the play. Charlie is very well off and so is his son. Throughout the story, Willy collects money from him in order to support his family. He also tells him, â€Å"I offered you a job. You can make fifty dollars a week. And I won’t send you on the road† (Miller 96). There is a difference between Charlie and Willy’s well being, in that Charlie is able to provide jobs and Willy does not have a job.Modernism embraces the idea of a high culture. This is clearly evident because Willy is striving to become part of it. The idea of a low brawl is also evident, in which money is beauty. Because this play is subjective, and we see it through Willy’s eyes, money representing beauty and priority becomes a central idea throughout the play. In the play, it becomes evident that Willy does not know himself. Willy dies because of his inability to be happy and to be happy would mean he wo uld to know himself. Death of a Salesman also has a very ambiguous ending, which is another characteristic of modernist writing.It is left for the readers to identify and interpret that Willy has died and that not many people showed up to his funeral because he was not a well-liked person, even though he said he was. â€Å"Glengarry Glen Ross† represents postmodernism literature. Postmodernism emerged during the late years of WWII and started to appear more during the mid 1980s. Instead of having a grand narrative, postmodernism has many narratives. Post-modernists ideas had a large affect on economy, politics, and the way people. These aspects can be seen in the play through the idea of capitalism and consumption.In â€Å"Glengarry Glen Ross,† the idea of consumption is wrong, which is contrary to â€Å"Death of a Salesman. † The want to make money leads to stealing, with Shelley breaking into the office and later becoming arrested for it. In the play, it is se en that money drives people to do crazy things and only leads to their downfall. Postmodernism proves to embrace the low culture, where the idea of elite, power, and money is not as important. Trying to make meaning becomes impossible and repressive and millions die in desire to create a great collective. Postmodernism is more accepting in regards to chaos.The idea of being okay in a world where there are no universal truths had become accepted. This can be seen in the play, because no characters are represented as true. They are living in a false world. This false world is made up of a false business with false leads and false people trying to sell them. When Shelly steals the leads, he is not doing anything different, because the leads are non-existent, imaginary properties that he stole to steal the money of other people, so in reality he is not stealing something of value and can relate to the rest of the characters.With this example, it is also seen that sympathy flows around. Mamet allows reader’s to like and relate to Shelley in some instances, like when he needs the money for his daughter, but at the same time Marnet allows us to dislike Shelley at some instances, because of his lying, scamming, and stealing. Our sympathy moves for different characters at different moments throughout the play, not only Shelley.

Boeing vs Airbus

In todays marketplace, distinct differences in the way competitive products work have become increasingly rare. But functional product differentiation is exactly what the rivalry between the Airbus A380 and the Boeing 787 Dreamliner is all about: Two companies with fundamentally different products, based on diametrically opposite visions of the future, engaged in a Hatfields versus McCoys battle with billions of dollars at stake. Each company has made a series of big bets. The Airbus A380 super-jumbo is a plane for the annals of aviation history. When it goes into service later this year, it will be the biggest, baddest airliner around, capable of ferrying from 550 to 800 passengers (depending on configuration). With its two full-length decks and the promise of amenities such as sleeper cabins, cocktail lounges and a gym, it is sure to capture the publics imagination. But for all its promise of innovation, the A380 represents a bet-the-house wager on one of the most disliked same-old models of air travel: the hub-and-spoke. The A380 is built around the assumption that airlines will continue to fly smaller planes on shorter routes (spokes) into a few large hubs, then onward to the next hub on giant airplanes. It also presumes that passengers will want to put up with the hassles of changing planes in exchange for the privilege of traveling in a jet-powered cruise liner. Whether the A380 will live up to the hype remains very much to be seen. Passengers may become disenchanted with the plane if it turns out to be a freighter rather than a luxury liner. When airlines can choose between more seats and a gym, out goes the gym. Sound cynical? Not to those of us who fondly remember the upstairs first-class lounge in the early 747s. Second, and even more importantly, Boeings (nyse: BA news people ) 787 represents an appealing alternative. Its based on a fundamentally different vision, and it is radically different by design. Boeing doesnt take the current hub-and-spoke model as a given. Marty Bentrott, vice president of sales, marketing and in-service support for the 787, says that since 1990, the number of city pairs more than 3,000 nautical miles apart served by the worlds airlines have doubled, the number of frequencies offered by the airlines have doubled, and the number of available seat-kilometers (seating capacity times miles flown) have doubled. None of these trends show any signs of abating; meanwhile, the average airplane size has actually declined slightly. Clearly, customers prefer more point-to-point flights, flown more frequently, on smaller airplanes. Marketplace insight is at the core of 787 product development. Our strategy has been to design and build an airplane that will take passengers where they want to go, when they want to go, without intermediate stops; do it efficiently while providing the utmost comfort to passengers; and make it simple and cost-effective for airlines to operate, Bentrott says. Rather than seek economies through scale, the 787 will deliver economy through technological innovation, making the most of newly designed, fuel-efficient twin engines and lightweight composite materials. The 787 offers a very different take on the flying experience, too, focusing on comfort rather than perks that could be eliminated by airlines: more standing headroom, larger windows and bathrooms, and higher humidityall features that will benefit passengers regardless of seat configuration. If Airbus appears to covet recognition in the Guinness Book of World Records, Boeing seems predisposed to making a favorable impression in airlines inventories. To date, carriers have ordered 159 A380s, and almost twice as many 787s. Both Airbus and Boeing have a hedge in their back pocket. To compete directly with the A380, Boeings 747-8 uses fuel-efficient engines like the 787 to carry 450 passengers. To counter the 787, Airbus is offering a white elephant called the A350, which has been widely derided as out of step with the changing times. According to Boeing, the 787 is the result of over a decade of focus groups and scientific studies to gain a better understanding of passenger comfort and how the design of airplane interiors can make flying a more pleasant experience. If Airbus made comparable efforts, we are hard-pressed to find the evidence. The ordeals of air travel after Sept. 11, 2001, make even short flights feel like long hauls. Did people really tell Airbus that they are perfectly happy to stand in more lines in exchange for a cocktail lounge? Airbus could not be reached for comment. Boeing versus Airbus is one of the most hard-fought, closely watched marketing battles out there. Its also one of the most fascinating. Not long ago, it appeared as if Airbus had gained the upper hand. If Boeing succeeds in winning this battle and it appears to be well on its wayit will amount to one of the great reversals of business fortunes. It will also serve as proof of the wisdom of understanding the marketplace well enough to lead, rather than follow. Airbus In the summer of 1988, a group of Airbus engineers led by Jean Roeder began working in secret on the development of a ultra-high-capacity airliner , both to complete its own range of products and to break the dominance that Boeing had enjoyed in this market segment since the early 1970s with its 747. McDonnell Douglas unsuccessfully offered its smaller, double-deck MD-12 concept for sale . Roeder was given approval for further evaluations of the UHCA after a formal presentation to the President and CEO in June 1990. The megaproject was announced at the 1990 Farnborough Air Show, with the stated goal of 15% lower operating costs than the 747-400. Airbus organized four teams of designers, one from each of its partners to propose new technologies for its future aircraft designs. The designs would be presented in 1992 and the most competitive designs would be used. In January 1993, Boeing and several companies in the Airbus consortium started a joint feasibility study of an aircraft known as the Very Large Commercial Transport , aiming to form a partnership to share the limited market . This joint study was abandoned two years later, Boeings interest having decreased because analysts thought that such a product would unlikely earn the $15-billion in development costs. Despite the fact that only two airlines had expressed public interest in purchasing such a plane, Airbus was already pursuing its own large plane project. Analysts suggested that Boeing instead would pursue stretching their 747 design, and that air travel was already moving away from the hub and spoke system that consolidated traffic into large planes, and toward more non-stop routes that could be served by smaller planes. In June 1994, Airbus began developing its own very large airliner, designated the A3XX . Airbus considered several designs, including an odd side-by-side combination of two fuselages from the A340, which was Airbus’s largest jet at the time. The A3XX was pitted against the VLCT study and Boeing’s own New Large Aircraft successor to the 747 . From 1997 to 2000, as the East Asian financial crisis darkened the market outlook, Airbus refined its design, targeting a 15 to 20 percent reduction in operating costs over the existing Boeing 747-400. The A3XX design converged on a double-decker layout that provided more passenger volume than a traditional single-deck design, in line with traditional hub-and-spoke theory as opposed to the point-to-point theory of the Boeing 777, after conducting an extensive market analysis with over 200 focus groups . Still, since the 1995 forecasts to the present, others including a former Airbus executive have disputed the hub-and-spoke justification, and continued to predict that the market for very large aircraft such as the A380 is small. Boeing During the late 1990s, Boeing began considering replacement aircraft programs as sales for the 767 and Boeing 747-400 slowed. The company proposed two new aircraft, the 747X, which would have lengthened the 747-400 and improved efficiency, and the Sonic Cruiser, which would have achieved 15% higher speeds while burning fuel at the same rate as the existing 767. Market interest for the 747X was tepid, but the Sonic Cruiser had brighter prospects. Several major airlines in the United States, including Continental Airlines, initially showed enthusiasm for the Sonic Cruiser concept, although they also expressed concerns about the operating cost. On 11th September 2001increased in petroleum prices, making airline company more interested in efficiency rather than speed. The worst-affected airlines, those in the United States, had been considered the most likely customers of the Sonic Cruiser, and thus Boeing officially canceled the Sonic Cruiser on December 20, 2002. Switching tracks, the company announced an alternative product using Sonic Cruiser technology in a more conventional configuration, the 7E7, on January 29, 2003. The emphasis on a smaller midsize twinjet rather than a large 747-size aircraft represented a shift from hub-and-spoke theory towards the point-to-point theory, in response to analysis of focus groups. â€Å"The 7E7 looks fairly traditional on the outside, but it will be dramatically different on the inside. † -Time The replacement for the Sonic Cruiser project was dubbed the 7E7. Technology from the Sonic Cruiser and 7E7 was to be used as part of Boeings project to replace its entire airliner product line, an endeavor called the Yellowstone Project (of which the 7E7 became the first stage). The E was said to stand for various things, such as efficiency or environmentally friendly; however, Boeing ultimately claimed it merely stood for Eight. Analysis Comparing Boeing and Airbus development and decision in aircraft manufacturing, both have same final target: to deliver high capacity, low-fuel-consume, long-travel-range airplanes. But if we compare Boeing 787 with Airbus 380 decision we can conclude that Boeing’s decision to modify the 747 model to improve its capacity is better than Airbus decision to develop new kind of jumbo-jet because: * Single Airbus 380 production cost is US$346.3 million while Boeing 787-9(the most expensive models) is US$218. 1 million. * Airbus 380 total orders (by the end of November 2010) is 234 with deliver ratio of 17. 75% (41 delivered) while Boeing 787 total orders (by 14th December 2010) is 846 with deliver ratio of 0% (0 delivered) As the fact goes, we can see that production cost of Boeing 787 is lower than Airbus 380, this is ha ppen because Boeing 787 is slight modification of Boeing’s earlier aircraft such as 747 and 767 (787 will be the successor of the 767. Airbus 380 is entirely new kind of airliner in Airbus line of product. The development cost only of A380 is â‚ ¬11 billion (production cost not included). Seeing from customer eyes, the fact is Boeing 787’s orders have reached the number of 846 units while Airbus 380 orders only 234 units. But because of the numerous delays on both sides, the delivered unit only reaches 41 units for Airbus and 0 units for Boeing. Latest Facts Graph Conclusion Boeing and Airbus have always been two major aircraft production company in the market. Both of them are competing to be the best in their field whether in terms of business strategy or fuel-saving technology to meet the market demand. They keep developing their ideas to be innovative and improved in order to maximize the demand of their products. In the early years, it’s clear that Boeing dominates the market, overthrow the Airbus. But since the 1970s Boeing has faced increasing competition from Airbus, which has expanded its family of aircraft to the point where Airbus and Boeing now cover an almost identical market. Airbus has delivered more planes than Boeing every year from 2003 onwards. Airbus orders have exceeded Boeings in every year since 1999 except for 2000, 2006 and 2007, which went to Boeing. In 2005 Airbus won more orders by number, but Boeing won 55% by value. In summary, of the last 10 years (2000–2009), Airbus won 6,452 orders while delivering 3,810, Boeing won 5,927 orders while delivering 3,950. Therefore the managers are required to filter, analyze all the information that can take part in building a better improvement for the aircrafts and are necessary to do decision-making carefully. Firstly they need to identify the alternatives, secondly evaluating alternatives and last but not least selecting the best alternatives. A deep thoughts and long process are needed as procedure to reach for the final best decision that can contribute to the increase in the growth of sales. Both Boeing and Airbus have different business strategy to win the market value. Although basically they have similar technology, they have different body specifications and capacity. Given the scale of investment, the effort to design jetliners and competition in the same markets, it stands to reason they are similar in both size and technology. But it doesn’t always work that way: Airbus developed the huge and less successful A380 while Boeing concentrated on the more modest 787. From a business standpoint, Boeing is in a slightly better situation. The 787 is sell very well and is already a profitable product, as is the 777. Airbus is in a worse position because of the number of duds they have in the portfolio. The A380 will not be profitable in the next decade if ever it is not selling at all in the past couple of years and they need about 450 to break even it is also doubtful that the A350 will match the total sales volume of the 787 and the 777 (or its replacement) which is the A350s mission. The 787 is also a fuel-efficient aircraft that is more likely to reduce the cost of fuels during the long-haul journey. The possible high reduction cost during travelling is a big advantage for the airline companies who purchased the 787. Lower operating costs mean lower ticket price for the consumers. This creates a mutual benefit between the business airline companies and consumers. Boeing 747 already existed in late 1960s and became the first biggest passenger plane on earth that time. The reasons why this plane is made are to reduce air traffic, to reduce airfare and try to make another success like 707. Because the plane is massive, it can bring many people at once. Therefore, it’ll reduce the cost and reduce air traffic. In size A380 is bigger than Boeing 747. In capacity also, A380 carries more passenger than Boeing 747, but the cons are Airbus A380 much more expensive than Boeing 747 and Boeing 747 has lower cost per trip rather than A380. Thus, it’ll make the company makes more profit. Basically the two competitors had a different approach in their basic foundation. For Airbus, the answer is â€Å"bigger and better. † The A380 is a massive plane designed for long trips, conserving fuel by consolidating passengers onto one flight where two were needed before. Boeing has a different approach flexibility. Its three versions of the 787 are adapted for different purposes. The 787-3 has a large passenger capacity over short distances, while the 787-8 and 787-9 are built for longer trips, but carry fewer passengers to maintain fuel efficiency. References

Article analysis Essay Example | Topics and Well Written Essays - 1500 words

Article analysis - Essay Example The research data has shown that there is need for future development of theoretical frameworks and analytical tools that are used to assess effects of stress and psychological factors on health ought to be grounded in the historic understanding of African American experience on the family and their knowledge of culture. The study also found out that the concept of motherhood is a source of power among women and their families and it also noted that the media shapes our perceptions about good or bad mothers. The main strength of the study is that it sought to outline empirical evidence about the experiences that are faced by African American women in their transition to motherhood. These people are certainly impacted by both sociological and cultural factors such as class structures that are racially based in different societies in America. These factors have a bearing on the experiences that are often encountered by the African American women as they develop into motherhood stage. P revious researches have excluded how factors such as race, class and gender impact on African American women on their maternal role attainment. ... The other strength of the research is that it used a Hermeneutic phenomenology from an Afrocentric feminist perspective methodology. â€Å"Hermeneutics is a research method that seeks to interpret the human experience of the world through the use of language to provide both understanding and knowledge,† (Draucher, 1999, as cited in Fouquier, 2011). It can be seen that this approach is effective since it is designed to create new data through understanding of the world around people. Language is a very important factor that can be used in the understanding of the world around us. For instance, people learn as well as communicate using language hence the reason why it is a very important aspect of our lives. In carrying research, this design is also very important particularly in the clinical field since it helps to draw information from the participants involved in the study. The third strength of the research is that it used the snowball technique to recruit a purposive sample of 18 African American women from three generations to participate in the study. The advantage of this method is that people with similar characteristics are selected to participate in the study. Therefore, consistency is likely to be obtained in the data collected since people who share the same features and characteristics are chosen to participate in the study. These people are likely to represent the general views of the people selected for the study. The method used for data collection is also a major strength of the study. The research utilised open ended and semi structured interview questions to solicit data from the participants. The advantage of this method

Urban Sustainabiliy Essay Example | Topics and Well Written Essays - 1500 words

Urban Sustainabiliy - Essay Example Populations grow vertically because families stick together and find space to work and connect with people through wealth. Urban places have a better chance of growing horizontally than those places with poorer services who are growing vertically as each person in the block or family or cross-section investigated has to grow out on their own and wish selfishness for himself while growing up. Defining what an urban citizen needs is what every citizen in the world requires:clean air,natural beauty,less pollution and intoxication of natural resources,peace and quietude and simplicity of living and understanding life and people with less complicated structure of behaviour than that which is by the people of rural or countryside places. 'In the context of sustainable urban development, we discuss the assessment of residential environmental quality and the importance of considering inhabitants' perceptions of natural resources in urban areas. Two series of studies, conducted in Guildford (United Kingdom) and in Rome (Italy), addressed the correspondence, or contrast, between inhabitants' and experts' assessment of urban quality concerning two crucial natural resources: air quality and biodiversity. The Guildford study emphasized the accuracy of the assessment of urban air quality by experts and the public. The Rome study focused on the evaluative criteria employed by scientists and the public in assessing the quality of urban green spaces. The results from both studies shed more, albeit complex, light on the simple conventional wisdom about public versus expert understanding and assessment of environmental quality.' (1) This is true as scientists do not have themselves living under the pressure of the persons in need of the changes and challenges especially that their points of discussions could be more of a story than of a realistic impression of what goes on and what is the fact that results in such concerns and what they mean and what they impose on the people who live such conditions which could be fatal to their lives because there is no escaping it. Scientists speak for the purpose of being heard even though much of them speak to solve,but the point of differences resulting in both words of the inhabitants and experts is the realism of what the inhabitants speak of and in the semi-realism of what the experts speak of. As always,the words of inhabitants shown in expert's words leads to the fact and result that inhabitants speak out of emotions and not realization and realization of facts;that their perspectives of the problems is nave and unemploying reason and facilities to exert more effort t o bring thoughts and understanding of the nature of the problem to the person who really lives such an issue. It is like what a doctor's manner of trying to soothe the pain of a dying patient by telling them that they are going to be alright except that they just have to wait a while 'and see furthermore solutions to solve

Mummers Parade Essay Example | Topics and Well Written Essays - 2500 words

Mummers Parade - Essay Example Historians believe that Mummers Parade is the only tradition that has lasted for a long time running fork festival in the United States. The parade usually consists of thousands of performers who spend months developing and rehearsing so that it will be enjoyable. They build costumes and scenery and make the parade to be perfect preparing for entire day moving their way up Broad Street where day drinking marks the event. For those who do not go for the parade choose to keep drinking the whole night and in the morning while others use the New Year Eve to move to other countries for leisure. People usually come to the parade by train, bike and others on foot carrying glasses and thermoses of beer so that they can wear their costumes which will depict foreign cultures. Some people who do not like to be associated with racism do not let their children to go to the parade since they say that the parade is a racist tradition that is usually carried from one generation to the next despite t he parade being banned. The participant of the parade dress like a person or a thing that they are not, where they colour themselves and others depicts creatures which are colourful though they are white men they present simplistic cartoons which depicts foreign people and their culture showing that the parade is usually prepared to mark racist agendas in each and every year. During the 18th and 19th century   the slaves who were transported to United States and later employed in the plantation used to play instruments in the plantations.

Evaluate how an organisation implemented an information system (such Essay

Evaluate how an organisation implemented an information system (such as a CRM, SCM or ERP - Essay Example In the modern world with increased expectations from customers, relationship marketing has become an important factor in financial services. Therefore, the management function of banks needs to critically analyse those areas where prospects can be found owing to industry amalgamation, virtual distribution and the growing ability to transfer cash just with the snap of a mouse which has made it efficient for customers to shift their loyalty from one bank to the other. It is this necessity that has prompted many banks to establish a relationship with their customers by coming up with a well-managed system that ensures that banks fully understand their customers, retain existing clients through enhancedconsumer experience, remain attractive to new customers and gain new clienteles and contracts, increase cost-effectiveness and cut back on consumer organization costs. In this scenario, CRM (Customer Relationship Management) is an information system that presents an opportunity for banks t o develop concrete relationships with their clients who can then market their services through word of mouth, making it hard to change loyalty by switching to other banks among others (Hwang and Wen,2009; Kamakura et al., 2005). HDFC Bank, India, launched the use of CRM in 2008 to achieve its vision of â€Å"One Bank† to enable it make available to the customers more information about the bank and attract new customers in order to boost its profitability and customer satisfaction. HDFC Company Profile and Porters Five Forces Analysis HDFC is a commercial bank based in India and is the largest private universal bank by market capitalization having a customer base totalling over 25 million, an elaborate distribution network consisting of 2,544 branches spreading across 1399 cities around the world. The bank also has a huge workforce with over fifty five thousand employees. For HDFC Bank to effectively apply its core competencies to achieve a profit above the industry average, i t is important to assess its potential for profitability and strategic position in the Indian banking industry. The Indian banking sector is defined by a high bargaining power of customers owing to the fact that banks provide uniform services. This is mainly due to the fact that nearly all banks strive to make available requisite information to their clients through such facilities as internet and mobile banking thus increasing buyer information availability and buyer price sensitivity. On the other hand, The Reserve Bank of India, the nation’s central bank and regulatory body, has created numerous regulatory standards and benchmarks which have to be met by banks. This in effect lowers the bargaining power of commercial banks in general and HDFC in particular. The industry is also highly competitive given the numerous numbers of public, private, foreign and cooperative banks offering financial services similar to those offered by HDFC. The availability of substitutes outside of the realm of common product boundaries of HDFC such as mutual funds, Government securities and T-bills increases the propensity of customers to switch to alternatives. Lastly, HDFC faces a low level of threat of new entrants to the industry due to the high number of banking regulations created by the Reserve Bank of India (Goyal and Joshi, 2012). CRM Customer Relationship

Why was the civil war significant Essay Example | Topics and Well Written Essays - 1000 words

Why was the civil war significant - Essay Example Other than the cause or the objective which originally motivated the pursuit and concretization of the Civil War, one could also look into matters of consequence from which to judge the grounds it is signified by. Pondering on the significance of U.S. Civil War bears the equivalent work of recounting the occurrences which essentially depict the post-war impact and which may be put together and labelled into what has since been known in U.S. History as ‘Reconstruction’ at the height of which could be found the tumultuous state of political affairs which not merely distinguished the philosophy of the Radical Republicans from that of the Democrats but even shaped the fate of the ‘freedmen’, in the process. During the period of Reconstruction (1865 - 1877) particularly with respect to the early years of its commencement by the persistent rule of Congress that was then chiefly composed of the Radicals, the federal government experienced yet another severe case of division between the two dominant political parties. On one hand, the Radical Republicans who had become accustomed to dealing with the issue of slavery conveyed the desire for implementing Reconstruction policies in a manner that would materialize a vision in which â€Å"Equality of opportunity created a more fluid social structure† as exemplified via â€Å"the model of free individuals, competing equally in the labor market and enjoying equal political rights† (Faragher et al, 464). On the contrary, however, Pres. Andrew Johnson who belonged to the Democratic Party contested such visionary scheme by augmenting the powers of civil governments in the South as well as replacing certain military officials with a commanding staff that seemed less likely persuaded in advancing the cause of the blacks especially in matters concerning suffrage (Wheeler et al, 310). Before the Civil War broke out and by the time it took place, factions generally existed between the federal N orth and the confederate South but after the test of martial skills, bloodshed, and the taste of several deaths came another era that would eventually justify whether or not the Civil War deserved to be treated with significance. Apparently, through these factions narrowed within the political domains of the federal government, Reconstruction served as a projection of Civil War or the rebirth of a principle which resembled a test by fire designed to refine and determine whose spirits remained driven and sincere in defending the great original cause. This became evident the moment when the Moderates and the Radicals of Republicans united to form a single huge force in the House of Representatives aimed at impeaching Johnson whom they charged heavily for violating the Tenure of Office Act in spite of the truth that the president’s removal from office was due to his intense opposition toward the policies of Congressional Reconstruction which the Republicans could not afford to t ake any longer (466). Through the victory of the Radical Republicans, Reconstruction Acts triumphed over those of Restoration which Johnson attempted to promulgate during his effective term. Hence, with zeal kept on continuing to promote the core ideals of the Civil War, the Republicans managed to enable the Congressional Reconstruction to establish the Freedmen’s Bureau which, according to the findings of Wheeler and company, â€Å"was given additional federal support to set up schools for African Americans, negotiate labor contracts, and with the military, help monitor elections†

Personal statements Essay Example | Topics and Well Written Essays - 250 words

Personal statements - Essay Example I have advanced proficiency levels in the use of basic computer programs which can assist in business applications like writing business correspondences and computing through spreadsheets. I am genuinely interested in pursuing higher education in business to harness my professional skills and keep me abreast on contemporary applications of management of global organizations. By applying in this institution’s business program, I am optimistic to gain a more comprehensive approach in managing business organizations through the development of leadership, entrepreneurial, interpersonal, negotiation, conflict-resolution, information technology, electronic business applications and research skills and abilities that are needed in business organizations in the future. As more organizations become global enterprises, I would like to improve my skills in becoming part of a global organization that could give me opportunities to experience other cultures and contribute to its growth and advancement.

Comparing news reports Essay Example for Free

Comparing news reports Essay On the day of 3rd February 1998, a Marine Corps EA-6B Prowler jet crashed into a wire, along which a yellow cable car was running along in the Dolomites area of Cavalese, Northern Italy. The car fell, killing 20 people. The victims were nine women, ten men, and one child. At least six of them were German, whereas two of them were Hungarian, and two Polish. The operator of the car, who was Italian, also died. Three newspapers. The Times, The Mirror, and the American Newsweek was very different from the rest. It contained no pictures, and was very much more biased towards the Americans, and was trying to shift the blame from them, to the Italians: pilots flight plan had been cleared by Italian authorities. The Americans treated the tragic accident, as a political affair with Europe attacking America: Europe questions Americas character. The Times contains a great deal more fact than The Mirror which also contains fact, but with some opinion: Regional President Carlo Andreotti should stop these war games The Times and The Mirror contained much more factual information about the incident, than Newsweek did. The Mirror and The Times both commented on how the cars fell 300ft and killed 20 people. They also both say that a second car was left dangling precariously on the wire. The Mirror goes on to describe who the casualties were (men, women, and children), whereas The Times talks about what time the accident occurred at, and that if it were to happen in the morning, that the car would have been packed with around 40 people, as it would have been peek time: If it had happened in the morning, the car would had been packed and the death toll would have been even higher. This is because a lot more tourists would have been going up the hill, in the morning. The Times also gives, what I consider, as useless facts at the end, such as that the mountains have become a popular tourist spot. It also goes on to talk about irrelevant things about the area of the incident: The area The Val di Fassa is renowned for the quality of its wood, from which Strdivarius violins are made. The Newsweek report, does still have some fact, but a lot more of it, is political facts, trying to shift the blame onto the Italians: We fly the routs they lay out Here, the Americans are clearly trying to shift the blame, by saying that the pilots flying the EA-6B prowler, exactly where the Italians had told them to fly. The main differences between the English papers The Times, and The Mirror and the American newsmagazine Newsweek, is that there is no pictures or diagrams, helping to explain the incident in the Newsweek report. These pictures featured in the two newspapers, not only to help to explain what happened in the incident, and where it took place, but they also made a welcome break, from reading large sections of text. The language used in each report also is very different in each report. The Newsweek report has a lot of American language in it: hot dogging clipped tumbling returned safely fighter jet clipped cherry pie These words are not only the type you would expect from a typical American, but they are also a lot softer and less dramatic types of words: fighter jet clipped skiers tumbling returned safely , compared to the harsher, more dramatic words found in The Mirror and The Times: warplane screamed dangling precariously plunged horror smashed open like a cardboard box Sliced screaming collided smashed crumpled bad jolt twisted The tone also differs dramatically between the two British newspapers, and Newsweek. The Newsweek report is very sceptical, and is constantly tying to shift the blame, or to change the subject: Overshadowed by anti-Americanism This time analysts found links violence is as American as cherry pie The English news reports are laid out much better than the Newsweek report. The English newspapers have at lest two pictures, with captions per report. Both article also maps, which describe where the incident occurred. There are no pictures, captions, or maps in the Newsweek report. The extract is determined as an article, due to how it is split up, with three columns. The most predominant point, or main clause, it the last four words, contained within the sub-headline. Europe questions Americas character This is the main point, which the Americans are trying to argue in the report, so it is the point that stays in the back of the readers mind, throughout the report. The article that explains the incident most effectively is the extract from The Times. This is because the report form The Mirror contains a lot of opinion however, this report gets the main points over quicker. The Times contains a great deal of facts, so you could get the most information from this. The Newsweek report is basically a political argument conceived by the Americans about the Europeans. 1

Plastics Recycling Business Plan

Plastics Recycling Business Plan Executive Summary Recently, the growing utilization of plastics are specifically used domestic purpose and produced from industrial and consumer applications and need Students Paper: and need to combined with increased consumer awareness surrounding solid waste recycling, has led to an increased demand for recycled plastic resins and products for our general consumer applications, combined with increased consumer awareness surrounding solid waste recycling, has led to an increased demand for recycled plastic resins and products. One of our general purposes. One of the quickest increasing Students Paper: quickest increasing types of collected plastic materials for recycling is polyethylene terephthalate (PET) from post-consumer beverage and water bottles. Replay Plastics will capitalize on the opportunities in the recycled resin and packaging markets through two main divisions: a Recycling Division and a Packaging Division. The Company will create a PET cleaning and refining plant where located fastest growing types of collected plastic materials for recycling is polyethylene terephthalate (PET) from post-consumer beverage and water bottles. Replay Plastics will capitalize on the opportunities in the recycled resin and packaging markets through two main divisions: a Recycling Division and a Packaging Division. The Company will create a PET cleaning and refining plant located in where Students Paper: plant where located in the western United States (all 16 major North American PET recycling plants are currently located in the eastern United States or Canada). To be and refining plant located in the western United States (all 16 major North American PET recycling plants are currently located in the eastern United States or Canada). Its initial ). To be honest, Students Paper: be honest, Its initial capacity will be 46 million pounds, and it will utilize post-consumer bottle feed stock presently collected in California, Oregon and Washington States, which collect over 200 million pounds per year. The Company will be vertically integrated and utilize almost all of its recycled material in its Packaging Division and any surplus materials (clean flake) produced will be sold to outside companies. The extruded sheet may then be sold to manufacturers who will thermoform it into high-visibility packaging or use it in other high value added manufacturing operations. The strapping will be sold to companies who ship large packages or pallets, such as the lumber milling industry. The Company currently has commitments available from customers to purchase the entire product or Canada). Its initial capacity will be 46 million pounds, and it will utilize post-consumer bottle feed stock presently collected in California, Oregon and Washington States, which collect over 200 million pounds per year. The Company will be vertically integrated, and use almost all of its recycled material in its Packaging Division. Any surplus materials (clean flake) produced will be sold to outside companies. The extruded sheet may then be sold to manufacturers, who will thermoform it into high-visibility packaging or use it in other high value added manufacturing operations. The strapping will be sold to companies who ship large packages or pallets, such as the lumber milling industry. The Company currently has commitments available from customers to purchase all of the product produced entire product produced. MANAGEMENT Ben Braddock, President who has experienced since 30-years of history and related with Students Paper: related with encompassing all aspects of Polymer Raw Material, Plastic Conversion Methods, and Venture Development. Moreover, he of experience encompassing all aspects of Polymer Raw Material, Plastic Conversion Methods, and Venture Development. He has . Moreover, he has founded great Students Paper: founded great ventures in the plastic converting industry, and assisted in the launch of five plastic converting manufacturing plants. In his personal founded successful ventures in the plastic converting industry, and assisted in the launch of five plastic converting manufacturing plants. Sam McGuire his personal life, Students Paper: personal life, Sam McGuire, Executive VP and COO, is a graduate Engineer with almost over manufacturing plants. Sam McGuire, Executive VP and COO, is a graduate Engineer with over 20 almost Students Paper: with almost over 20 years experience in the post-consumer plastics recycling industry and is the inventor of the primary cleaning refining technology used in the process for this project. He has received a patent for his technology and has been directly involved in over twenty-five major post consumer plastics recycling projects. Carl R. Smith, CFO, has over 30 years investment and merchant banking and management experience. He has assisted in raising over $500 million and served as board member and/or officer in over 40 public and private companies. FINANCIAL SUMMARY Moreover, after Engineer with over 20 years experience in the post-consumer plastics recycling industry and is the inventor of the primary cleaning refining technology used in the process for this project. He has received a patent for his technology and has been directly involved in over twenty-five major post consumer plastics recycling projects. Carl R. Smith, CFO, has over 30 years investment and merchant banking and management experience. He has assisted in raising over $500 million and served as board member and/or officer in over 40 public and private companies. FINANCIAL SUMMARY After a Moreover, after a four month grow- Students Paper: month grow-up period to build the recycling and packaging facilities, buy equipment, and incorporate the business, Replay Plastics will begin a quick turnaround of product. Sales will begin in May, and with over $15 Million in sales the first year, we will see a first year net profit of $2.3 Million. The owners are investing $500,000 each, for a total of $1.5 Million, and are securing an $800K long-term loan. The Company is also looking an month start-up period to build the recycling and packaging facilities, buy equipment, and incorporate the business, Replay Plastics will begin a quick turnaround of product. Sales will begin in May, and with over $15 Million in sales the first year, we will see a first year net profit of $2.3 Million. The owners are investing $500,000 each, for a total of $1.5 Million, and are securing an $800K long-term loan. The Company is also seeking an looking Students Paper: also looking an investment of $2,700,000 in order to begin operations. Then, these also seeking an investment of $2,700,000 in order to begin operations. These funds . Then, Students Paper: operations. Then, these funds will be used for the purchase of one recycling line and one manufacturing line, for create of begin operations. These funds will be used for the purchase of one recycling line and one manufacturing line, for the set up create Students Paper: for create of the plant facilities and for working capital. An outside investor providing this amount would receive 48% equity in Replay, and receive an IRR of 69% from simple dividends alone over the next 5 years. At the end of that period, we will consider a public offering of stock or a buy-out by a related business. Recent information on private sales of similar industry companies has indicated that transactions under $25 million have averaged 5.3 times EBITDA, while transactions in the range of $25-250 million have averaged over 7 times EBITDA. Further details can be found in the Financial Plan, below. 1.1 Objectives Sales passing $15 million in first year set up of the plant facilities and for working capital. An outside investor providing this amount would receive 48% equity in Replay, and receive an IRR of 69% from simple dividends alone over the next 5 years. At the end of that period, we will consider a public offering of stock or a buy-out by a related business. Recent information on private sales of similar industry companies has indicated that transactions under $25 million have averaged 5.3 times EBITDA, while transactions in the range of $25-250 million have averaged over 7 times EBITDA. Further details can be found in the Financial Plan, below. 1.1 Objectives Sales passing $15 million in firstyyear, $31 first Students Paper: in first year, $31 million in year 2, growing to $43 million. Gross margin in firstyyear, $31 million in year 2, growing to $43 million.y Gross . Gross margin of 35% or more in first Students Paper: in first year, 45% in second year then 50% or more. Net profit of in firstyyear, 45% in second year then 50% or more. Net profityof 13 profit of 13% in year one, then exceeding 20% Students Paper: exceeding 20% annually starting in year two. 1.2 Mission Replay Plastics is a generally manufacturing then exceedingy20% annually starting in year two. 1.2 Mission Replay Plastics is a manufacturing company generally Students Paper: a generally manufacturing company dedicated to converting waste plastic materials into commercially viable products, utilizing environmentally friendly recycling and manufacturing methods. We intend is a manufacturing company dedicated to converting waste plastic materials into commercially viable products, utilizing environmentally friendly recycling and manufacturing methods.yWe intend . We intend to make enough profit to generate a significant Students Paper: a significant return for our investors and to finance continued growth and continued development in quality products. We will generate aysignificant return for our investors and to finance continued growth and continued development in quality products.yWe will . We Students Paper: products. We will also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas and hard work. 1.3 Keys to Success The main keys to the success of the Company are: Secure Supply- Contract for supply of post-consumer products.yWe will also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas and hard work. 1.3 Keys to Success The main keys to the success of the Company are: Secure Supply- Contract for supply ofypost-consumerybottles post-consumer bottles Students Paper: consumer bottles and post-industrial manufacturing waste for PET raw material feed stock. Marketing Contractual arrangements ofypost-consumerybottles and post-industrial manufacturing waste for PET raw material feed stock. Marketing -yyContractual arrangementsyfor Contractual arrangements for Students Paper: arrangements for the sale of virtually all initial production. Management Strong senior management with extensive, broad-based, industry-specific experience. 1.4 Potential yyContractual arrangementsyfor the sale of virtually all initial production. Management Strong senior management with extensive, broad-based, industry-specific experience.http://www . Students Paper: specific experience. 1.4 Potential Risks Unavailable or scarce raw material feed stock for production Replay is confident that it has secured good availability of low cost post 934697d142204abeb7020c6e32f2e18d.png 1.4 Potential Risks Unavailable or scarce raw material feed stock for production Replay is confident that it has secured good availability of low costypost-consumer cost Students Paper: low cost post-consumer PET bottles (feed stock) derived from post-consumer beverage bottles from California based recycling collectors, and has back up sources identified. Technology employed may be unreliable or unproven Replay will use a proven, patented technology that was developed by one of its principals for the cleaning and recycling phase. The extrusion division will employ commercially proven technology the industry is employing unique recycled PET technology which is used by prominent eastern U.S. manufacturers of PET bottlesy(feed stock) derived from post-consumer beverage bottles from California based recycling collectors, and has back up sources identified. Technology employed may be unreliable or unproven Replay will use a proven, patented technology that was developed by one of its principals for the cleaning and recycling phase. The extrusion division will employ commercially proven technology the industry is employing unique recycled PET technology which is used by prominent eastern U.S. manufacturersyof PET manufacturers Students Paper: U.S. manufacturers of PET extrusions. There may not be a market for the Companys products The Industry-wide experience of the Management Team has allowed them to identify markets U.S. manufacturersyof PET extrusions. There may not be a market for the Companys products The Industry-wide experience of the Management Team has allowed them to identifyymarkets for identify markets for the Companys products. Their Students Paper: products. Their expertise and reputations have allowed them to obtain commitments for virtually all of the planned initial production. The location may products.yTheir expertise and reputations have allowed them to obtain commitments for virtually all of the planned initial production.y The Students Paper: initial production. The location may not be near enough to markets The markets that have production.y The location may not be near enough to markets Theymarkets that Students Paper: The markets that have been identified are primarily in the western U.S., which will markets Theymarkets that have been identified are primarily in the western U.S.,ywhich will , which will provide a distinct advantage Students Paper: distinct advantage to the Company because of freight costs and delivery timing. The Company may not be able to attract top distinct advantageyto the Company because of freight costs and delivery timing. The Company may not be able to attractytop managementy attract top Students Paper: attract top management The Company has assembled a world class management team with proven ability and direct experience in the Companys market segments. Company may not meet environmental standards This environmentally-favorable venture provides attractytop managementy The Company has assembled a world class management team with proven ability and direct experience in the Companys market segments. Company may not meet environmental standards This environmentally-favorable ventureyprovides for venture provides Students Paper: venture provides for the development of technically feasible and economically viable solutions to PET plastic beverage bottle recycling, as well as environmentally aware in-house re-use practices which filter and return nearly favorable ventureyprovides for the development of technically feasible and economically viable solutions to PET plastic beverage bottle recycling, as well as environmentally aware in-house re-use practices which filter and returnynearly all return nearly all of the process water Students Paper: process water to the production lines. The Company may not be able to sell all of its production capability Through the Senior Managements industry-wide contacts, the Company has identified potential customers and received commitments for all of the production potential of the initial facility. Company Summary The the processywater to the production lines. The Company may not be able to sell all of its production capability Through the Senior Managements industry-wide contacts, the Company has identified potential customers and received commitments for all of the production potential of the initial facility.yyyy Want Summary Students Paper: Company Summary The Company will capitalize on the opportunities in the recycled resin and packaging markets through two main divisions: a Recycling Division and a Packaging Division. Recycling Division Using a Replay Plastics will capitalize on the opportunities in the recycled resin and packaging markets through two main divisions: a Recycling Division and a Packaging Division. The Company will create a Using a patented process, Students Paper: patented process, the Company will create a PET cleaning and refining plant located in the western United States; we have Packaging Division. The Company will create a PET cleaning and refining plant located in the western United States (all 16 ; we have chosen this region because Students Paper: region because all 16 major North American PET recycling plants are currently located in the eastern United States or Canada, despite western the western United States (all 16 major North American PET recycling plants are currently located in the eastern United States or Canada). Its initial , despite western states favorable recycling attitudes among consumers. Its initial annual Students Paper: initial annual capacity will be 46 million pounds and it will utilize bottle feed Its initial capacity will be 46 million pounds, and it will utilize post-consumer bottle feed stock from Students Paper: stock from California, Oregon and Washington States, which collect over 200,000,000 pounds collected in California, Oregon and Washington States, which collect over 200 million 200,000,000 pounds per year. The Company will become totally vertically integrated, and use all or Students Paper: all or almost all of its recycled material in its Packaging Division. Any surplus material produced will and use almost all of its recycled material in its Packaging Division. Any surplus materials (clean flake produced will be sold to outside companies. Packaging Division We will create a plant (actual facilities to be shared with the Recycling Division) to manufacture extruded plastic roll stock sheet or high-strength strapping, employing state-of-the-art technology developed to utilize recycled PET resin. The extruded sheet will be primarily sold to thermoformers who will convert it into high visibility packaging, as well as laminators and fabricators. The strapping will be sold to commercial users for use as package or pallet strapping. The Company currently has commitments from customers to purchase all of the initial production capacity. Excess flake will be sold to outside customers. 2.1 Company Ownership Replay Plastics is owned by the initial founders, B. Braddock, S. McGuire and C. Smith, who are the proposed three executives of the operating entity. The plan was conceived and developed by these individuals, with the intent to apply their extensive experience and contacts in the industry to building a successful profitable corporation. 2.1.1 Potential Conflict Our COO, Mr. Sam McGuire, the inventor and patent holder of the recycling process to be used by the Company, is a principal in Company A of Chicago, IL. For many years, Company has designed, manufactured and assembled plastic recycling equipment, and has given us quotes on meeting our needs in this area. After a thorough investigation, Replay has found that Company A is able to source or supply the required equipment at considerably lower cost than any other company from which a quote was available. Mr. McGuire has disclosed that Company A has included a smaller than normal margin in their quote on goods they will manufacture, to cover overhead, contingency and profit which might result in a small benefit to him. They have agreed to source all of the equipment possible with no added margin. Replay has concluded that the savings available outweigh any other consideration and that we will purchase the cleaning and refining equipment from Company A. 2.2 Start-up Summary Our start-up expenses are budgeted at $210,000, which is mostly for on-site contractor services during facility preparation. $50,000 has been set aside for legal and accounting, $25,000 for special consulting that may be required during start up and $50,000 each for local engineering and lab equipment and supplies. $30,000 has been set aside as a contingency for the start up period. Our largest Start-up Requirement is the building of the recycling and extrusion facility. Its final value at completion is listed below as a long-term asset of $3,620,000 (excluding expensed items like consultants and engineering listed above). Aside from the building itself, we need $25,000 in machinery and fixtures, $500,000 of inventory (plastic bottle feed stock) and cash to cover us through the initial year. Start-up Funding Start-up Expenses to Fund $210,000 Start-up Assets to Fund $4,790,000 Total Funding Required $5,000,000 Assets Non-cash Assets from Start-up $4,145,000 Cash Requirements from Start-up $645,000 Additional Cash Raised $0 Cash Balance on Starting Date $645,000 Total Assets $4,790,000 Liabilities and Capital Liabilities Current Borrowing $0 Long-term Liabilities $800,000 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 Total Liabilities $800,000 Capital Planned Investment Founders $1,500,000 Investor $2,700,000 Additional Investment Requirement $0 Total Planned Investment $4,200,000 Loss at Start-up (Start-up Expenses) ($210,000) Total Capital $3,990,000 Total Capital and Liabilities $4,790,000 Total Funding $5,000,000 Start-up Requirements Start-up Expenses Legal Accounting $50,000 Stationery etc. $5,000 Consultants $25,000 Lab Equipment $50,000 Local Engineering $50,000 Misc Start up $30,000 Other $0 Total Start-up Expenses $210,000 Start-up Assets Cash Required $645,000 Start-up Inventory $500,000 Other Current Assets $25,000 Long-term Assets $3,620,000 Total Assets $4,790,000 Total Requirements $5,000,000 Products Replay Plastics will utilize two processes in the same facility to produce: Cleaned and recycled plastic PET flake (RPET), recovered from post-consumer beverage bottles and manufacturing waste produced by its sheet customers Extruded roll stock sheet PET. Extruded PET high-strength strapping for securing large packages or pallet loads; each using 100% RPET produced in-house 3.1 Product Description Roll stock sheet will be sold to custom thermoformers primarily to be used to produce high-visibility packaging. It will also be sold to manufacturers of laminates and fabricated plastic products. High strength PET packaging strapping is used to secure packages or pallets in such industries as lumber milling and corrugated and other paper production. Both products will be extruded from post-consumer polyethylene terephthalate (PET) bottles. The recycling programs in California, Washington and Oregon collect in excess of 200,000,000 pounds of PET bottles per annum. Replay initial capacity will be 46,000,000 pounds. Using a patented process, Replay will clean and refine the PET material from the post-consumer bottle stock and post-industrial manufacturing waste. The PET flake resin produced will be extruded into roll stock sheet or high-strength strapping. Although the Company expects to convert all of its bottle feed stock into extruded products, any surplus flake will be sold to outside manufacturers. 3.2 Competitive Comparison While quality and delivery are important factors to our potential clients, price is most often the determining factor in a buying decision. Good-quality packaging products manufactured from recycled (less expensive) resins, as close as practical to the end customers operations, will be most competitive and achieve a significant market share. These factors have helped to determine the business parameters of Replay Plastics. 3.3 Sourcing In excess of 200,000,000 pounds of post-consumer PET beverage bottles are collected and available as feed stock for manufacturers who can re-process this material into commercial products. The Company has excellent relations with the firms and associations that collect and distribute these materials and has been assured that its requirements will be available for the foreseeable future. The Company has entered negotiations with a California based source of post-consumer bottles and is confident that sufficient volumes are available on a contract basis from this source to satisfy its requirements. In addition, the Company intends to purchase production waste from its sheet customers and blend it into its feed stock. Currently, the majority of the post-consumer PET bottles collected in California, Oregon and Washington are exported to China. The Chinese have absorbed the amounts surplus to the use in North America. Their interest has kept the industry in the position of being able to maintain a steady price range for this bottle stock. A significant percentage of all sales of such bottle stock are managed by Plastics Recycling Corporation of California (PRCC), an industry funded marketing agency which operates similarly to a co-operative. They accept bids from potential buyers on behalf of the firms which act as consolidators, which accumulate stocks from the smaller, individual bottle-recycling depots. Some amount of the available stocks are regularly bought by recyclers in eastern North America who focus on the carpet manufacturers who use RPET resin in their process, but the high cost of transport from the western U.S. makes eastern sources more desirable. Replay has a good relationship with Company B, one of the larger consolidators in California. Company B has indicated a desire to contract to supply Replay with all of its raw material needs. They prefer to deal with a local consumer such as Replay, rather than the uncertainty and extra preparation requirements of the export market. There are other sources of post-consumer feed stock known to Replay, and we are confident that we will have sufficient materials available for our production needs. 3.4 Technology Sam McGuire, a key member of our Management team, is one of the original innovators of cleaning and refining technology for post-consumer PET, and we will be utilizing his patented process in our recycling facility. Sam has worked in the establishment and operation of facilities employing similar technologies over the last several years. On the manufacturing side, Management has been an integral part of the advancement of industry practices over the last twenty years or so, and includes in their knowledge base most, if not all, of the state-of-the-art available equipment and manufacturing techniques. Students Paper: manufacturing techniques. Market Analysis Summary Strong demand for recycled plastics is working in the industrys favor. Major users http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm 8 y Market Analysis Summary Strong demand for recycled plastics is working in the industrys favor.y Major . Students Paper: industrys favor. Major users of plastic packaging, apparently responding to consumer desires, have begun incorporating at least some recycled plastic content in their products as part of the growing interest in recycling. Recycled resin demand http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm favor.y Major users of plastic packaging, apparently responding to consumer desires, have begun incorporating at least some recycled plastic content in their products as part of the growing interest in recycling.y Recycled Students Paper: growing interest in recycling. Recycled resin demand is on the rise as prices for the two major recycled resins, PET and HDPE, continue to hold value or appreciate against their virgin counterparts. In volume, PET is currently the number one recycled resin. Supply of http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm recycling.y Recycled resin demand is on the rise as prices for the two major recycled resins, PET and HDPE, continue to hold value or appreciate against their virgin counterparts. In volume, PET is currently the number one recycled resin.ySupply of . Supply of recycled PET is in excess of 800 million pounds per year. This figure is expected to grow, reaching over 1 billion pounds during the next few years. Students Paper: few years. The plastics industry has developed new markets and applications for recycled resins from both post-consumer and post-industrial sources. PET leads the recycled recovered resins as the most visible and valuable, and its use is increasing. Of the http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm years.yThe plastics industry has developed new markets and applications for recycled resins from both post-consumer and post-industrial sources. PET leads the recycled recovered resins as the most visible and valuable, and its use is increasing.yOf the . Students Paper: is increasing. Of the total 3.7 billion pounds of PET consumed in 1997, just 16% was from recycled sources. Of the more than http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm increasing.yOf the total 3.7 billion pounds of PET consumed in 1997, just 16% was from recycled sources.yOf the Students Paper: just 16% was from recycled sources. Of the more than 90 billion pounds of plastics produced annually in the United States, less than 5% is from recycled sources. Plastics, after aluminium http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm sources.yOf the more than 90 billion pounds of plastics produced annually in the United States, less than 5% is from recycled sources.yPlastics, after Students Paper: recycled sources. Plastics, after aluminium, represent the second highest value material in the waste stream and have the highest projected growth rate. Markets and uses for recycled plastics are rapidly expanding. Plastic containers are http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm sources.yPlastics, after aluminium, represent the second highest value material in the waste stream and have the highest projected growth rate. Markets and uses for recycled plastics are rapidly expanding.yPlastic containers Students Paper: expanding. Plastic containers are being collected at the curb for recycling in nearly 500 communities, representing more than 4 million households. U.S. demand http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm expanding.yP Plastics Recycling Business Plan Plastics Recycling Business Plan Executive Summary Recently, the growing utilization of plastics are specifically used domestic purpose and produced from industrial and consumer applications and need Students Paper: and need to combined with increased consumer awareness surrounding solid waste recycling, has led to an increased demand for recycled plastic resins and products for our general consumer applications, combined with increased consumer awareness surrounding solid waste recycling, has led to an increased demand for recycled plastic resins and products. One of our general purposes. One of the quickest increasing Students Paper: quickest increasing types of collected plastic materials for recycling is polyethylene terephthalate (PET) from post-consumer beverage and water bottles. Replay Plastics will capitalize on the opportunities in the recycled resin and packaging markets through two main divisions: a Recycling Division and a Packaging Division. The Company will create a PET cleaning and refining plant where located fastest growing types of collected plastic materials for recycling is polyethylene terephthalate (PET) from post-consumer beverage and water bottles. Replay Plastics will capitalize on the opportunities in the recycled resin and packaging markets through two main divisions: a Recycling Division and a Packaging Division. The Company will create a PET cleaning and refining plant located in where Students Paper: plant where located in the western United States (all 16 major North American PET recycling plants are currently located in the eastern United States or Canada). To be and refining plant located in the western United States (all 16 major North American PET recycling plants are currently located in the eastern United States or Canada). Its initial ). To be honest, Students Paper: be honest, Its initial capacity will be 46 million pounds, and it will utilize post-consumer bottle feed stock presently collected in California, Oregon and Washington States, which collect over 200 million pounds per year. The Company will be vertically integrated and utilize almost all of its recycled material in its Packaging Division and any surplus materials (clean flake) produced will be sold to outside companies. The extruded sheet may then be sold to manufacturers who will thermoform it into high-visibility packaging or use it in other high value added manufacturing operations. The strapping will be sold to companies who ship large packages or pallets, such as the lumber milling industry. The Company currently has commitments available from customers to purchase the entire product or Canada). Its initial capacity will be 46 million pounds, and it will utilize post-consumer bottle feed stock presently collected in California, Oregon and Washington States, which collect over 200 million pounds per year. The Company will be vertically integrated, and use almost all of its recycled material in its Packaging Division. Any surplus materials (clean flake) produced will be sold to outside companies. The extruded sheet may then be sold to manufacturers, who will thermoform it into high-visibility packaging or use it in other high value added manufacturing operations. The strapping will be sold to companies who ship large packages or pallets, such as the lumber milling industry. The Company currently has commitments available from customers to purchase all of the product produced entire product produced. MANAGEMENT Ben Braddock, President who has experienced since 30-years of history and related with Students Paper: related with encompassing all aspects of Polymer Raw Material, Plastic Conversion Methods, and Venture Development. Moreover, he of experience encompassing all aspects of Polymer Raw Material, Plastic Conversion Methods, and Venture Development. He has . Moreover, he has founded great Students Paper: founded great ventures in the plastic converting industry, and assisted in the launch of five plastic converting manufacturing plants. In his personal founded successful ventures in the plastic converting industry, and assisted in the launch of five plastic converting manufacturing plants. Sam McGuire his personal life, Students Paper: personal life, Sam McGuire, Executive VP and COO, is a graduate Engineer with almost over manufacturing plants. Sam McGuire, Executive VP and COO, is a graduate Engineer with over 20 almost Students Paper: with almost over 20 years experience in the post-consumer plastics recycling industry and is the inventor of the primary cleaning refining technology used in the process for this project. He has received a patent for his technology and has been directly involved in over twenty-five major post consumer plastics recycling projects. Carl R. Smith, CFO, has over 30 years investment and merchant banking and management experience. He has assisted in raising over $500 million and served as board member and/or officer in over 40 public and private companies. FINANCIAL SUMMARY Moreover, after Engineer with over 20 years experience in the post-consumer plastics recycling industry and is the inventor of the primary cleaning refining technology used in the process for this project. He has received a patent for his technology and has been directly involved in over twenty-five major post consumer plastics recycling projects. Carl R. Smith, CFO, has over 30 years investment and merchant banking and management experience. He has assisted in raising over $500 million and served as board member and/or officer in over 40 public and private companies. FINANCIAL SUMMARY After a Moreover, after a four month grow- Students Paper: month grow-up period to build the recycling and packaging facilities, buy equipment, and incorporate the business, Replay Plastics will begin a quick turnaround of product. Sales will begin in May, and with over $15 Million in sales the first year, we will see a first year net profit of $2.3 Million. The owners are investing $500,000 each, for a total of $1.5 Million, and are securing an $800K long-term loan. The Company is also looking an month start-up period to build the recycling and packaging facilities, buy equipment, and incorporate the business, Replay Plastics will begin a quick turnaround of product. Sales will begin in May, and with over $15 Million in sales the first year, we will see a first year net profit of $2.3 Million. The owners are investing $500,000 each, for a total of $1.5 Million, and are securing an $800K long-term loan. The Company is also seeking an looking Students Paper: also looking an investment of $2,700,000 in order to begin operations. Then, these also seeking an investment of $2,700,000 in order to begin operations. These funds . Then, Students Paper: operations. Then, these funds will be used for the purchase of one recycling line and one manufacturing line, for create of begin operations. These funds will be used for the purchase of one recycling line and one manufacturing line, for the set up create Students Paper: for create of the plant facilities and for working capital. An outside investor providing this amount would receive 48% equity in Replay, and receive an IRR of 69% from simple dividends alone over the next 5 years. At the end of that period, we will consider a public offering of stock or a buy-out by a related business. Recent information on private sales of similar industry companies has indicated that transactions under $25 million have averaged 5.3 times EBITDA, while transactions in the range of $25-250 million have averaged over 7 times EBITDA. Further details can be found in the Financial Plan, below. 1.1 Objectives Sales passing $15 million in first year set up of the plant facilities and for working capital. An outside investor providing this amount would receive 48% equity in Replay, and receive an IRR of 69% from simple dividends alone over the next 5 years. At the end of that period, we will consider a public offering of stock or a buy-out by a related business. Recent information on private sales of similar industry companies has indicated that transactions under $25 million have averaged 5.3 times EBITDA, while transactions in the range of $25-250 million have averaged over 7 times EBITDA. Further details can be found in the Financial Plan, below. 1.1 Objectives Sales passing $15 million in firstyyear, $31 first Students Paper: in first year, $31 million in year 2, growing to $43 million. Gross margin in firstyyear, $31 million in year 2, growing to $43 million.y Gross . Gross margin of 35% or more in first Students Paper: in first year, 45% in second year then 50% or more. Net profit of in firstyyear, 45% in second year then 50% or more. Net profityof 13 profit of 13% in year one, then exceeding 20% Students Paper: exceeding 20% annually starting in year two. 1.2 Mission Replay Plastics is a generally manufacturing then exceedingy20% annually starting in year two. 1.2 Mission Replay Plastics is a manufacturing company generally Students Paper: a generally manufacturing company dedicated to converting waste plastic materials into commercially viable products, utilizing environmentally friendly recycling and manufacturing methods. We intend is a manufacturing company dedicated to converting waste plastic materials into commercially viable products, utilizing environmentally friendly recycling and manufacturing methods.yWe intend . We intend to make enough profit to generate a significant Students Paper: a significant return for our investors and to finance continued growth and continued development in quality products. We will generate aysignificant return for our investors and to finance continued growth and continued development in quality products.yWe will . We Students Paper: products. We will also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas and hard work. 1.3 Keys to Success The main keys to the success of the Company are: Secure Supply- Contract for supply of post-consumer products.yWe will also maintain a friendly, fair, and creative work environment, which respects diversity, new ideas and hard work. 1.3 Keys to Success The main keys to the success of the Company are: Secure Supply- Contract for supply ofypost-consumerybottles post-consumer bottles Students Paper: consumer bottles and post-industrial manufacturing waste for PET raw material feed stock. Marketing Contractual arrangements ofypost-consumerybottles and post-industrial manufacturing waste for PET raw material feed stock. Marketing -yyContractual arrangementsyfor Contractual arrangements for Students Paper: arrangements for the sale of virtually all initial production. Management Strong senior management with extensive, broad-based, industry-specific experience. 1.4 Potential yyContractual arrangementsyfor the sale of virtually all initial production. Management Strong senior management with extensive, broad-based, industry-specific experience.http://www . Students Paper: specific experience. 1.4 Potential Risks Unavailable or scarce raw material feed stock for production Replay is confident that it has secured good availability of low cost post 934697d142204abeb7020c6e32f2e18d.png 1.4 Potential Risks Unavailable or scarce raw material feed stock for production Replay is confident that it has secured good availability of low costypost-consumer cost Students Paper: low cost post-consumer PET bottles (feed stock) derived from post-consumer beverage bottles from California based recycling collectors, and has back up sources identified. Technology employed may be unreliable or unproven Replay will use a proven, patented technology that was developed by one of its principals for the cleaning and recycling phase. The extrusion division will employ commercially proven technology the industry is employing unique recycled PET technology which is used by prominent eastern U.S. manufacturers of PET bottlesy(feed stock) derived from post-consumer beverage bottles from California based recycling collectors, and has back up sources identified. Technology employed may be unreliable or unproven Replay will use a proven, patented technology that was developed by one of its principals for the cleaning and recycling phase. The extrusion division will employ commercially proven technology the industry is employing unique recycled PET technology which is used by prominent eastern U.S. manufacturersyof PET manufacturers Students Paper: U.S. manufacturers of PET extrusions. There may not be a market for the Companys products The Industry-wide experience of the Management Team has allowed them to identify markets U.S. manufacturersyof PET extrusions. There may not be a market for the Companys products The Industry-wide experience of the Management Team has allowed them to identifyymarkets for identify markets for the Companys products. Their Students Paper: products. Their expertise and reputations have allowed them to obtain commitments for virtually all of the planned initial production. The location may products.yTheir expertise and reputations have allowed them to obtain commitments for virtually all of the planned initial production.y The Students Paper: initial production. The location may not be near enough to markets The markets that have production.y The location may not be near enough to markets Theymarkets that Students Paper: The markets that have been identified are primarily in the western U.S., which will markets Theymarkets that have been identified are primarily in the western U.S.,ywhich will , which will provide a distinct advantage Students Paper: distinct advantage to the Company because of freight costs and delivery timing. The Company may not be able to attract top distinct advantageyto the Company because of freight costs and delivery timing. The Company may not be able to attractytop managementy attract top Students Paper: attract top management The Company has assembled a world class management team with proven ability and direct experience in the Companys market segments. Company may not meet environmental standards This environmentally-favorable venture provides attractytop managementy The Company has assembled a world class management team with proven ability and direct experience in the Companys market segments. Company may not meet environmental standards This environmentally-favorable ventureyprovides for venture provides Students Paper: venture provides for the development of technically feasible and economically viable solutions to PET plastic beverage bottle recycling, as well as environmentally aware in-house re-use practices which filter and return nearly favorable ventureyprovides for the development of technically feasible and economically viable solutions to PET plastic beverage bottle recycling, as well as environmentally aware in-house re-use practices which filter and returnynearly all return nearly all of the process water Students Paper: process water to the production lines. The Company may not be able to sell all of its production capability Through the Senior Managements industry-wide contacts, the Company has identified potential customers and received commitments for all of the production potential of the initial facility. Company Summary The the processywater to the production lines. The Company may not be able to sell all of its production capability Through the Senior Managements industry-wide contacts, the Company has identified potential customers and received commitments for all of the production potential of the initial facility.yyyy Want Summary Students Paper: Company Summary The Company will capitalize on the opportunities in the recycled resin and packaging markets through two main divisions: a Recycling Division and a Packaging Division. Recycling Division Using a Replay Plastics will capitalize on the opportunities in the recycled resin and packaging markets through two main divisions: a Recycling Division and a Packaging Division. The Company will create a Using a patented process, Students Paper: patented process, the Company will create a PET cleaning and refining plant located in the western United States; we have Packaging Division. The Company will create a PET cleaning and refining plant located in the western United States (all 16 ; we have chosen this region because Students Paper: region because all 16 major North American PET recycling plants are currently located in the eastern United States or Canada, despite western the western United States (all 16 major North American PET recycling plants are currently located in the eastern United States or Canada). Its initial , despite western states favorable recycling attitudes among consumers. Its initial annual Students Paper: initial annual capacity will be 46 million pounds and it will utilize bottle feed Its initial capacity will be 46 million pounds, and it will utilize post-consumer bottle feed stock from Students Paper: stock from California, Oregon and Washington States, which collect over 200,000,000 pounds collected in California, Oregon and Washington States, which collect over 200 million 200,000,000 pounds per year. The Company will become totally vertically integrated, and use all or Students Paper: all or almost all of its recycled material in its Packaging Division. Any surplus material produced will and use almost all of its recycled material in its Packaging Division. Any surplus materials (clean flake produced will be sold to outside companies. Packaging Division We will create a plant (actual facilities to be shared with the Recycling Division) to manufacture extruded plastic roll stock sheet or high-strength strapping, employing state-of-the-art technology developed to utilize recycled PET resin. The extruded sheet will be primarily sold to thermoformers who will convert it into high visibility packaging, as well as laminators and fabricators. The strapping will be sold to commercial users for use as package or pallet strapping. The Company currently has commitments from customers to purchase all of the initial production capacity. Excess flake will be sold to outside customers. 2.1 Company Ownership Replay Plastics is owned by the initial founders, B. Braddock, S. McGuire and C. Smith, who are the proposed three executives of the operating entity. The plan was conceived and developed by these individuals, with the intent to apply their extensive experience and contacts in the industry to building a successful profitable corporation. 2.1.1 Potential Conflict Our COO, Mr. Sam McGuire, the inventor and patent holder of the recycling process to be used by the Company, is a principal in Company A of Chicago, IL. For many years, Company has designed, manufactured and assembled plastic recycling equipment, and has given us quotes on meeting our needs in this area. After a thorough investigation, Replay has found that Company A is able to source or supply the required equipment at considerably lower cost than any other company from which a quote was available. Mr. McGuire has disclosed that Company A has included a smaller than normal margin in their quote on goods they will manufacture, to cover overhead, contingency and profit which might result in a small benefit to him. They have agreed to source all of the equipment possible with no added margin. Replay has concluded that the savings available outweigh any other consideration and that we will purchase the cleaning and refining equipment from Company A. 2.2 Start-up Summary Our start-up expenses are budgeted at $210,000, which is mostly for on-site contractor services during facility preparation. $50,000 has been set aside for legal and accounting, $25,000 for special consulting that may be required during start up and $50,000 each for local engineering and lab equipment and supplies. $30,000 has been set aside as a contingency for the start up period. Our largest Start-up Requirement is the building of the recycling and extrusion facility. Its final value at completion is listed below as a long-term asset of $3,620,000 (excluding expensed items like consultants and engineering listed above). Aside from the building itself, we need $25,000 in machinery and fixtures, $500,000 of inventory (plastic bottle feed stock) and cash to cover us through the initial year. Start-up Funding Start-up Expenses to Fund $210,000 Start-up Assets to Fund $4,790,000 Total Funding Required $5,000,000 Assets Non-cash Assets from Start-up $4,145,000 Cash Requirements from Start-up $645,000 Additional Cash Raised $0 Cash Balance on Starting Date $645,000 Total Assets $4,790,000 Liabilities and Capital Liabilities Current Borrowing $0 Long-term Liabilities $800,000 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 Total Liabilities $800,000 Capital Planned Investment Founders $1,500,000 Investor $2,700,000 Additional Investment Requirement $0 Total Planned Investment $4,200,000 Loss at Start-up (Start-up Expenses) ($210,000) Total Capital $3,990,000 Total Capital and Liabilities $4,790,000 Total Funding $5,000,000 Start-up Requirements Start-up Expenses Legal Accounting $50,000 Stationery etc. $5,000 Consultants $25,000 Lab Equipment $50,000 Local Engineering $50,000 Misc Start up $30,000 Other $0 Total Start-up Expenses $210,000 Start-up Assets Cash Required $645,000 Start-up Inventory $500,000 Other Current Assets $25,000 Long-term Assets $3,620,000 Total Assets $4,790,000 Total Requirements $5,000,000 Products Replay Plastics will utilize two processes in the same facility to produce: Cleaned and recycled plastic PET flake (RPET), recovered from post-consumer beverage bottles and manufacturing waste produced by its sheet customers Extruded roll stock sheet PET. Extruded PET high-strength strapping for securing large packages or pallet loads; each using 100% RPET produced in-house 3.1 Product Description Roll stock sheet will be sold to custom thermoformers primarily to be used to produce high-visibility packaging. It will also be sold to manufacturers of laminates and fabricated plastic products. High strength PET packaging strapping is used to secure packages or pallets in such industries as lumber milling and corrugated and other paper production. Both products will be extruded from post-consumer polyethylene terephthalate (PET) bottles. The recycling programs in California, Washington and Oregon collect in excess of 200,000,000 pounds of PET bottles per annum. Replay initial capacity will be 46,000,000 pounds. Using a patented process, Replay will clean and refine the PET material from the post-consumer bottle stock and post-industrial manufacturing waste. The PET flake resin produced will be extruded into roll stock sheet or high-strength strapping. Although the Company expects to convert all of its bottle feed stock into extruded products, any surplus flake will be sold to outside manufacturers. 3.2 Competitive Comparison While quality and delivery are important factors to our potential clients, price is most often the determining factor in a buying decision. Good-quality packaging products manufactured from recycled (less expensive) resins, as close as practical to the end customers operations, will be most competitive and achieve a significant market share. These factors have helped to determine the business parameters of Replay Plastics. 3.3 Sourcing In excess of 200,000,000 pounds of post-consumer PET beverage bottles are collected and available as feed stock for manufacturers who can re-process this material into commercial products. The Company has excellent relations with the firms and associations that collect and distribute these materials and has been assured that its requirements will be available for the foreseeable future. The Company has entered negotiations with a California based source of post-consumer bottles and is confident that sufficient volumes are available on a contract basis from this source to satisfy its requirements. In addition, the Company intends to purchase production waste from its sheet customers and blend it into its feed stock. Currently, the majority of the post-consumer PET bottles collected in California, Oregon and Washington are exported to China. The Chinese have absorbed the amounts surplus to the use in North America. Their interest has kept the industry in the position of being able to maintain a steady price range for this bottle stock. A significant percentage of all sales of such bottle stock are managed by Plastics Recycling Corporation of California (PRCC), an industry funded marketing agency which operates similarly to a co-operative. They accept bids from potential buyers on behalf of the firms which act as consolidators, which accumulate stocks from the smaller, individual bottle-recycling depots. Some amount of the available stocks are regularly bought by recyclers in eastern North America who focus on the carpet manufacturers who use RPET resin in their process, but the high cost of transport from the western U.S. makes eastern sources more desirable. Replay has a good relationship with Company B, one of the larger consolidators in California. Company B has indicated a desire to contract to supply Replay with all of its raw material needs. They prefer to deal with a local consumer such as Replay, rather than the uncertainty and extra preparation requirements of the export market. There are other sources of post-consumer feed stock known to Replay, and we are confident that we will have sufficient materials available for our production needs. 3.4 Technology Sam McGuire, a key member of our Management team, is one of the original innovators of cleaning and refining technology for post-consumer PET, and we will be utilizing his patented process in our recycling facility. Sam has worked in the establishment and operation of facilities employing similar technologies over the last several years. On the manufacturing side, Management has been an integral part of the advancement of industry practices over the last twenty years or so, and includes in their knowledge base most, if not all, of the state-of-the-art available equipment and manufacturing techniques. Students Paper: manufacturing techniques. Market Analysis Summary Strong demand for recycled plastics is working in the industrys favor. Major users http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm 8 y Market Analysis Summary Strong demand for recycled plastics is working in the industrys favor.y Major . Students Paper: industrys favor. Major users of plastic packaging, apparently responding to consumer desires, have begun incorporating at least some recycled plastic content in their products as part of the growing interest in recycling. Recycled resin demand http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm favor.y Major users of plastic packaging, apparently responding to consumer desires, have begun incorporating at least some recycled plastic content in their products as part of the growing interest in recycling.y Recycled Students Paper: growing interest in recycling. Recycled resin demand is on the rise as prices for the two major recycled resins, PET and HDPE, continue to hold value or appreciate against their virgin counterparts. In volume, PET is currently the number one recycled resin. Supply of http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm recycling.y Recycled resin demand is on the rise as prices for the two major recycled resins, PET and HDPE, continue to hold value or appreciate against their virgin counterparts. In volume, PET is currently the number one recycled resin.ySupply of . Supply of recycled PET is in excess of 800 million pounds per year. This figure is expected to grow, reaching over 1 billion pounds during the next few years. Students Paper: few years. The plastics industry has developed new markets and applications for recycled resins from both post-consumer and post-industrial sources. PET leads the recycled recovered resins as the most visible and valuable, and its use is increasing. Of the http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm years.yThe plastics industry has developed new markets and applications for recycled resins from both post-consumer and post-industrial sources. PET leads the recycled recovered resins as the most visible and valuable, and its use is increasing.yOf the . Students Paper: is increasing. Of the total 3.7 billion pounds of PET consumed in 1997, just 16% was from recycled sources. Of the more than http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm increasing.yOf the total 3.7 billion pounds of PET consumed in 1997, just 16% was from recycled sources.yOf the Students Paper: just 16% was from recycled sources. Of the more than 90 billion pounds of plastics produced annually in the United States, less than 5% is from recycled sources. Plastics, after aluminium http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm sources.yOf the more than 90 billion pounds of plastics produced annually in the United States, less than 5% is from recycled sources.yPlastics, after Students Paper: recycled sources. Plastics, after aluminium, represent the second highest value material in the waste stream and have the highest projected growth rate. Markets and uses for recycled plastics are rapidly expanding. Plastic containers are http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm sources.yPlastics, after aluminium, represent the second highest value material in the waste stream and have the highest projected growth rate. Markets and uses for recycled plastics are rapidly expanding.yPlastic containers Students Paper: expanding. Plastic containers are being collected at the curb for recycling in nearly 500 communities, representing more than 4 million households. U.S. demand http://www.bplans.com/plastics_recycling_business_plan/market_analysis_summary_fc.cfm expanding.yP