Business Plan: Bonnie Bio Certified Compostable Plastic Alternatives
Question
Company
Description Worksheet
Business Name |
Bonnie
Bio Certified Compostable Plastic Alternatives |
Company Mission Statement |
Dedication
to promoting a safe atmosphere, |
Company Philosophy/ Values |
Establish
yourself as an organization that can be relied upon, employing skilled
workers and offering competitive prices. Bonnie
Bio Certified Compostable Plastic Alternatives is designed to assist in manufacturing
waste bags, 3-ply disposable masks, and hot water soluble tote bags. |
Company Vision |
Set
a target for the next five years to reach annual growth of at least 50
percent in net profit. |
Goals & Milestones |
1.
The primary goal of marketing is to understand the demands and levels of
contentment experienced by existing customers. 2.
The annual growth in net profit should be increased by at least 50 percent as
a goal for the next five years. 3.
Develop the products that it currently sells by understanding the
requirements of its customers and by creating distinctive opportunities for
the introduction of new products.
|
Target Market |
Large
corporations that ship their waste bags and hot water soluble tote bags to
retailers, distributors, or brokers make up the Bonnie Bio Certified
Compostable Plastic Alternatives target market. |
Industry/ Competitors
|
1.
Newlight Technologies is a California-based company.
2.
Zenpack
|
Legal Structure/ Ownership |
The
business structure is an LLC, or limited liability company, and applies to
Bonnie Bio Certified Compostable Plastic Alternatives. project management
concept may be used to determine the execution of a marketing The
campaign by time limits, human resources criteria, and financial or budgetary
costs. |


Solution
Business Plan Template for a Startup
Business
Business Plan: Bonnie Bio Certified
Compostable Plastic Alternatives
Student’s Name
Institution of Affiliation
Professor
Class
19th May 2022
Company name: Bonnie Bio Certified Compostable Plastic
Alternatives
Street address 1:
Street address 2
City, state, ZIP:
Business Phone:
Website URL:
Email address;
Confidentiality Agreement
The undersigned reader acknowledges that
any information provided by _________________________ in this business plan,
other than information that is in the public domain, is confidential in nature,
and that any disclosure or use of same by the reader may cause serious harm or
damage to ________________________. Therefore, the undersigned agrees not to
disclose it without express written permission from
________________________________.
Upon request, the undersigned reader will
immediately return this document to ___________________________.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
Table
of Contents
I. Instructions: Executive Summary 4
II. Instructions: Company Description 5
Company
Description Worksheet 5
III. Instructions: Products & Services 6
Product & Service Description Worksheet 6
IV. Instructions: Marketing Plan 9
Product/service
features and benefits 12
Competitive Analysis Worksheet 16
Marketing Expenses Strategy Chart 18
Pricing 19
Location
or proposed location 20
V. Instructions: Operational Plan 26
Production 26
Location 27
Personnel 28
Inventory 28
Suppliers 29
I.
Instructions: Executive Summary
Bonnie Bio Certified Compostable Plastic Alternatives is a
new company whose goal is to manufacture environmentally friendly products such
as compostable plastic alternatives for the following items: disposable masks,
3-ply waste bags, and hot water soluble totes. The legal structure of this
company is LLC (Limited Liability Company). The competition in this market is
companies such as Newlight Technologies, a California-based company, Zenpack,
and many others that manufacture disposable masks and similar products. The
marketing plan for this company will be implemented through traditional marketing
methods such as social media advertising, word of mouth advertising, and other
online advertisements. The pricing for the items has yet to be determined;
nevertheless, they will be competitively priced so that consumers will be ready
to pay for them without hesitation. Distribution channels will be set up
through Amazon Marketplace, Walmart Marketplace, and other major retailers like
Target or Kroger, where customers can buy these types of products directly from
them without having to go through an intermediary seller like Amazon or
Walmart, which would increase costs incurred by the buyer due to shipping fees
which could make them less likely to purchase. The distribution channels used
include direct sales, Retail Sales, Online Sales, and sales representatives.
The marketing plan includes promoting our products through social media sites
like Facebook, Instagram, and Twitter. The marketing budget will also have paid
search engine optimization (SEO), pay per click (PPC) advertising on Google
AdWords and YouTube video ads for Facebook advertising campaigns, as well as
paid search engine optimization (SEO) advertising on Google AdWords.
II.
Instructions: Company Description
Company
Description Worksheet
Business
Name |
Bonnie Bio Certified Compostable Plastic Alternatives |
Company
Mission Statement |
Dedication to promoting a safe atmosphere, |
Company
Philosophy/ Values |
Establish yourself as an organization that can be relied
upon, employing skilled workers and offering competitive prices. Bonnie Bio Certified Compostable Plastic Alternatives is
designed to assist in manufacturing waste bags, 3-ply disposable masks, and
hot water soluble tote bags. |
Company
Vision |
Set a target for the next five years to reach annual
growth of at least 50 percent in net profit. |
Goals
& Milestones |
1. The primary goal of marketing is to understand the
demands and levels of contentment experienced by existing customers. 2. The annual growth in net profit should be increased by
at least 50 percent as a goal for the next five years (Zwicker et al., 2020). 3. Develop the products that it currently sells by
understanding the requirements of its customers and by creating unique
opportunities for the introduction of new products.
|
Target
Market |
Large corporations that ship their waste bags and hot
water soluble tote bags to retailers, distributors, or brokers make up the
Bonnie Bio Certified Compostable Plastic Alternatives target market. |
Industry/ Competitors
|
1. Newlight Technologies is a California-based company. 2. Zenpack
|
Legal
Structure/ Ownership |
The business structure is an LLC, or limited liability
company, and applies to Bonnie Bio Certified Compostable Plastic
Alternatives. The project management concept may determine the campaign’s
execution by time limits, human resources criteria, and financial or
budgetary costs (Zwicker et al., 2020). |
III.
Instructions: Products & Services
Product & Service Description
Worksheet
Business
Name |
Bonnie Bio Certified Compostable Plastic Alternatives |
Product/
Service Idea |
Bonnie Bio Certified Compostable Plastic Alternatives is
designed to assist in manufacturing waste bags, 3-ply disposable masks, and
hot water soluble tote bags. Bonnie Bio Compostable Waste Bags - These bags are made
from a blend of biodegradable materials such as rice husks and other
plant-based materials. They are designed to safely contain waste until it is
correctly disposed of at your local landfill or composting facility (Zwicker et al., 2021). The bags come in various sizes,
including 1 gallon, 2 gallon, and 4-gallon sizes. Bonnie Bio Compostable Hot Water Soluble Tote Bags - These
bags are made from a blend of plant-based materials such as cornstarch and recycled
paper fibers, which allow them to dissolve under hot water within minutes. |
Special
Benefits |
This product aims to make it easier for people and firms
to use a compostable items by minimizing waste production. This may be an
alternative to non-biodegradable plastic bags or other disposable goods. This
new product will work as an alternative for all plastic products such as food
packaging, shopping bags, etc. Other unique benefits of using this product
include: 1) It is made from renewable resources 2) An independent laboratory has tested it, and it has
passed all of their required tests 3) The material can be recycled into other products such
as paper or fertilizer 4) It does not contain any harmful chemicals or additives
like polystyrene containers
|
Unique
Features |
The unique features of our product/service idea include: 1) The product is more eco-friendly than traditional
plastic alternatives. 2) Our product is made from plant-based materials, which
means it will biodegrade in a compost pile, allowing our customers to save
money on landfill costs and become more environmentally friendly (Zwicker et al., 2021). 3) By promoting the usage of compostable materials in
place of traditional plastic alternatives, we may assist businesses in
reducing the amount of garbage that ends up in our landfills. |
Limits
and Liabilities |
The company has a limitation on its liability of $500 per
person or $1000 per accident/incident/injury, with a maximum aggregate limit
of $5 million. They also do not accept any responsibility for loss caused by
delay or default or consequential damages or loss of profits or savings
arising from the services provided (Teymourian et al., 2021). |
Production
and Delivery, |
The production of these products will be handled by a
third-party manufacturer with Bonnie Bio approval. The product will then be
delivered directly from their facility to your location. This process will
allow us to maintain high-quality standards and ensure consistency throughout
our supply chain. Bonnie Bio Certified Compostable Plastic Alternatives will
deliver the products through an online store or by mail order. The company
will provide a tracking number for each Delivery. |
Suppliers |
Bonnie Bio will work closely with our suppliers to ensure
that they have met our program’s needs and requirements. They believe that
this partnership will help us improve our business and make it more
sustainable and profitable in the long run (Zwicker et al., 2020). |
Intellectual
Property Special Permits |
They have also applied for an Intellectual Property
Special Permit (IPSP) through the Environmental Protection Agency (EPA). This
permit allows us to produce products using recycled materials. |
IV.
Instructions: Marketing Plan
1.
Market
research
Market
Size: The
worldwide market for compostable plastic alternatives is worth about $1 billion
each year. Over the next five years, the growth rate is expected to be around
5% each year. This is because many challenges need to be overcome before this
type of plastic can be used universally (Teymourian et al., 2021).
Size
of Target Market-The
total size of the target market is approximately $1.3 billion annually. There has
been a steady increase in demand for these products, with an average annual
growth rate of 8% (Taufik et
al., 2020).
Trends
in the target market
– The plastic bag industry is growing at 2% per year due to increased demand
from retailers who want to use this product to replace paper bags and other
non-biodegradable options.
Barriers to entry
High startup costs: The startup cost for this business
is about $32,000. The primary purpose of this investment is to purchase a
state-of-the-art manufacturing facility that can produce compostable plastic
alternatives. This includes the necessary equipment and machinery required to
make plastic bioproducts.
High
production costs:
Several steps must be considered to produce compostable plastics. First, raw
materials need to be sourced (i.e., corn starch). Second, the raw materials
need to be converted into plastic bioproducts using high-temperature processes
that require significant energy consumption (Teymourian et al., 2021). Third, these products
must be sold at a competitive price.
High
marketing costs:
Marketing costs include advertising on television and radio channels and online
advertising such as Google AdWords campaigns or Facebook ads.
Finding
qualified employees:
The current labor pool for the plastics industry is very small in the U.S.,
making it difficult for a startup company like Bonnie Bio to find qualified
employees. However, this problem can be solved by hiring a larger pool of
candidates from other countries like China or India (Taufik et al., 2020).
Need
for specialized technology or patents: A patent is required for any new product you develop to
protect your intellectual property rights from other companies trying to copy
your idea or using it without permission. This barrier can be overcome by
signing an NDA (nondisclosure agreement) with other companies who want to use
your product or technology without authorization or credit.
Tariffs
and quotas: Tariffs
and quotas limit how much of a particular product can be imported into a
country at one time. Directly selling from another nation, rather than through
distribution channels in the U.S. (like Amazon), may help you over this
barrier.
2.
Threats
and opportunities
●
Changes in government regulations. The government can enact new
regulations that would require Bonnie Bio’s products to be more difficult to
manufacture or use. This would increase their cost of goods sold (COGS). In
addition, if COGS grow too much, then Bonnie Bio may not be able to compete
with their current competitors using non-biodegradable plastic alternatives.
●
Changes in technology. Technology is constantly changing
and evolving, resulting in an innovation that makes it easier or cheaper for
other companies to produce similar products as Bonnie Bios. Therefore, Bonnie
Bio could lose market share and revenue if this new technology is introduced
into their industry (Teymourian
et al., 2021).
●
Changes in the economy. The economy can go through cycles
where there is an abundance of money available or not enough money available;
either way, this can directly impact Bonnie Bio’s profitability. This can
affect how many disposable items are being sold and used. It can also affect
the amount of funding available for R&D and marketing.
SWOT
Analysis Worksheet
|
Strengths |
Weaknesses |
Opportunities |
Threats |
|
s |
|
|
|
|
|
Brand/ Marketing |
s |
|
|
|
|
Staff/H.R. |
|
|
o |
|
|
Finance |
|
w |
|
|
|
Operations/ Management |
S |
|
|
|
|
Market |
|
|
|
t |
|
Can any of your strengths help
with improving your weaknesses or combating your threats? If so, please
describe how below. |
|||||
The strength of our company is that we can provide
different types of biodegradable plastics and compostable plastic
alternatives. This is because we serve various clients, some of whom still
require these supplies (Taufik et al., 2020). |
|||||
Based on the information above,
what are your immediate goals/next steps? |
|||||
Conducting more market research ensures that the
products and services can compete favorably. |
|||||
What are your long-term goals/next
steps based on the information above? |
|||||
Training and developing the organization’s employees |
3.
Product/service
features and benefits
Bonnie
Bio Certified Compostable Plastic Alternatives is designed to assist in
manufacturing waste bags, 3-ply disposable masks, and hot water soluble tote
bags. The essential features of our product are that it is a biodegradable
alternative to plastic. Our product will break down in a landfill, or compost
bin in 30 days. It also has a lower carbon footprint than traditional plastic
products. Our product is made from renewable resources like cornstarch and
sugar cane which can be grown on farms. The 3-ply disposable masks are designed
specifically for those who need protection from airborne particles such as dust
and pollen without worrying about washing their face masks after use (Sijtsema et al., 2016).
Each mask is designed with three layers of material, so when one layer becomes
dirty, you replace it with another without ever washing it. Moreover, the most
important benefits of our product are that it is better for the environment and
less harmful to animals than traditional plastic products.
After
Sales Services,
Product
delivery: Bonnie Bio
manufactures compostable waste bags foe will deliver the goods to your address
via UPS or FedEx.
Warranty/guarantee: Our company is confident about its
products and offers a guarantee of 100% satisfaction. If you have any questions
or concerns about our products, please contact us immediately. We will be happy
to help you out with any issues you may have with our products or services.
Service
contracts: No
service contract is needed – just call us anytime! We are here 24/7 to assist
you in any way possible.
Ongoing
support: Bonnie Bio
can give ongoing support to our clients through email or telephone
communication and by visiting your location personally if need be. All of our
employees are always accessible to answer any queries you have regarding our
products (Sijtsema et al.,
2016).
4.
Target
customer,
The target customer is anyone who
needs plastic wrap or clings wrap replacement. This could be home users looking
for an environmentally friendly alternative or people who need something more
durable than wax paper when storing food in the refrigerator or freezer. The
product may also be utilized as a sterile wrapping material in hospitals. Healthcare,
food processing, pharmaceuticals, and the hospitality industry are just a few
examples (Sijtsema et al., 2016).
For example, a grocery store’s
target customers will be families with children between 0-5 years old. They
will also likely have high incomes, allowing them to purchase more expensive
items such as organic foods and specialty meats/seafood that require
refrigeration. When it comes to businesses that want to reduce their carbon
footprint and help the environment, they may be located in any part of the
world, but they must have annual revenue of at least USD 100,000 (Scherer, Emberger-Klein, and
Menrad, 2018).
Key
competitors
1. Newlight Technologies is a California-based company. They produce a
similar product called BioDegradable Plastic Alternatives (BDPAs). The company
has been in business for about eight years. They are located in Oakland, CA,
and have several employees (Mehta
et al., 2021).
2. Zenpack is a small startup based in Los Angeles, CA, in business
since 2016. They produce a similar product called Plantware™, made from
mushroom roots (mycelium) grown on agricultural waste like corn stover or wheat
straw. Zenpack is another company that specializes in compostable packaging for
food and beverage products (Sijtsema
et al., 2016).
Competitor
Data Collection Plan
Price
|
The first step is to figure out the product’s cost. You
need to know how many people are selling the same product and their prices. |
You can find this information by doing a little research
on the internet or asking your customers. |
Benefits/Features
|
Bonnie Bio Certified Compostable Plastic Alternatives are
environmentally friendly because they help reduce waste management’s carbon
footprint by reducing the amount of plastic utilized in the manufacturing
process (Mehta et al., 2021). |
Recyclability - Bonnie Bio Certified Compostable Plastic
Alternatives can be recycled in curbside recycling bins or at recycling
facilities that accept paper products with a high starch content like paper
plates. |
Size/profitability |
How profitable is each competitor’s business model? |
What are their
gross margin percentage and net profit margin percentage? |
Market strategy |
How does each
competitor market their product? |
Do they use traditional advertising methods such as television
or radio ads? |
Competitive Analysis Worksheet
FACTOR |
Me |
Competitor A |
Competitor B |
Competitor C |
Importance to
Customer |
Products |
s |
s |
s |
s |
1 |
Price |
s |
w |
w |
w |
1 |
Quality |
s |
w |
w |
w |
1 |
Selection |
s |
s |
s |
s |
2 |
Service |
s |
s |
w |
w |
1 |
Reliability |
s |
w |
w |
s |
2 |
Stability |
w |
s |
s |
s |
3 |
Expertise |
s |
s |
s |
s |
2 |
Company Reputation |
s |
w |
w |
w |
4 |
Location |
s |
w |
w |
w |
2 |
Appearance |
s |
w |
w |
w |
5 |
Sales Method |
s |
w |
s |
w |
3 |
Credit Policies |
w |
s |
s |
s |
4 |
Advertising |
s |
s |
w |
w |
2 |
Image |
s |
s |
w |
w |
3 |
5.
Positioning/Niche
A unique critical niche provides a
more sustainable compostable alternative to plastic waste bags, 3-ply
disposable masks, and hot water soluble tote bags. With our solution, customers
may minimize their carbon impact by reducing the amount of plastic in landfills
or seas (Allison et al., 2021). They will position themselves as a leader in
the green movement by highlighting our company’s commitment to sustainability
and providing the best product at an affordable price point for any type of
business (Mehta et al., 2021). Compostable Plastic
Alternatives is positioned as an environmentally friendly alternative to
petroleum-based plastics. This unique segment of the market has been growing
for decades. Marketing Strategy
Bonnie Bio Compostable Waste Bags will be advertised using a
variety of channels. We plan on promoting our products through online media
such as Google Adwords, Facebook Ads, and Instagram Ads. We also plan to
advertise through cable television spots and print ads in local newspapers and
magazines. We will also be hosting an online contest where customers can submit
their ideas for how they would use our product. The winner will receive $1,000
worth of free products (Sijtsema
et al., 2016).
Out-of-home
advertising will be used at grocery stores and other nearby locations where
customers may be interested in purchasing their products. We will also use
mobile marketing through applications like Facebook Messenger, Instagram Direct
Messages, and SMS Text Messaging (SMS). This will allow us to send out quick
reminders about our products directly to customers who have already purchased
them. We plan on spending about $200 per month on these marketing efforts.
The company wants to project an image of being a company
that cares about its customers’ environment and health. My logo will be green
and black with a leaf in the shape of an “L” for my last name (Leaf). Several
leaves will be combined in a circular pattern to create the logo. I want to use
a design element representing nature or plants because my product is
compostable waste bags made from plant material (Bonney, 2009). The design should also be modern,
with clean lines to appeal to all ages and genders. The interior design of the
office space should have neutral colors like beige or white with accents of
green like plants or nature scenes on the walls or other decorations that
reflect nature.
6.
Promotional
budget
Marketing Expenses
Strategy Chart
|
Target
Market 1 |
Target
Market 2 |
Target
Market 3 |
One-Time |
$ 4500 |
$5000 |
$3000 |
Monthly
or Annual Expenses |
$450 |
$500 |
$300 |
Labor
Costs |
$70 |
$60 |
$90 |
7.
Pricing
The company has a well-defined pricing strategy for its
products. They have set their prices at an average price level compared to
other competitors in their industry. The company’s pricing strategy is designed
to reflect the quality of its products and services offered to customers. The
company believes that offering high-quality products and services will help
them compete with large corporations that may offer lower prices due to
economies of scale (Bonney,
2009). The company has decided not to compete on price but rather to
provide high-quality products and services at average prices.
Pricing Strategy Worksheet
Business Name |
Bonnie Bio
Certified Compostable Plastic Alternatives |
||
Which of the following pricing
strategies will you employ? Circle one. |
|||
Cost
Plus
|
Value-Based
Bonnie Bio Certified Compostable Plastic Alternatives will
also use a Value-based pricing strategy. This pricing strategy is used when a
company has built up brand loyalty or perceived value among customers (which
can lead to higher margins). The idea behind value-based pricing is simple:
you set your price based on what customers perceive as valuable and worth
paying for not necessarily what it costs to produce or deliver that value to
them (Kymäläinen e al.,
2022). |
Other: |
|
This strategy is ideal for Bonnie Bio because it will
maintain its competitive advantage over similar products by charging more
than competitors and maintaining profitability (Bonney, 2009). |
|||
8.
Location
of the proposed location
Location: I have chosen a place at an
industrial park close to a major highway. This location allows for easy access
by customers traveling from all over the country. The space is large enough for
my business, and it has ample parking for employees and customers. The room is
close to other companies such as banks, convenience stores, and restaurants.
This will help with the marketing aspect of my business because there will be
potential customers nearby when they need something from me.
Convenient
Location: My location
is suitable for both customers and employees because there is adequate parking
on-site and public transportation nearby (bus stop). This makes it easier for
people who do not have cars or do not want to drive themselves around town. If
they do not have cars, they can take advantage of public transportation, saving
them money on gas and parking fees and time spent searching for parking spots
when driving around town (Koenig-Lewis,
Grazzini, and Palmer, 2022). Lastly, the building we have chosen is a
warehouse space located in an industrial park. There is plenty of parking
available on-site, which will make it easy for our customers to drop off their
waste material.
9.
Distribution
channels
Inside
salesforce -
an inside sales force will be selling the products directly to retailers,
distribution centers, and wholesalers. The company will also be hiring outside
sales representatives to sell our product directly to businesses and consumers
through home delivery programs, trade shows, and other events.
OEMs
- The company has relationships with
several OEMs who manufacture products with our material and sell them directly
to consumers through retail channels such as Amazon or as part of their line of
products sold online or in retail stores (Koenig-Lewis, Grazzini, and Palmer, 2022).
Outside
sales representatives
– Outside sales representatives will also be responsible for selling directly
to customers or other businesses who wish to purchase our products directly
from the company.
Distribution
Channel Assessment Worksheet
|
Retail
|
Direct
Sales
|
Wholesale
|
Ease
of Entry. |
The company has entered the market with ease. It has
established its presence with its customers by providing quality products at
competitive prices and excellent customer service. |
The company has to hire people who can do sales and
marketing activities and research and development. It must also establish a
physical location where it may sell its items and services (Kymäläinen et
al., 2022). |
The company uses a wholesale form of distribution to sell
its products. This means that the company does not sell directly to the
consumer but instead sells its products to distributors who then resell them
to other companies. This helps the company maintain control over its
product’s quality and consistency across all retail outlets. |
Geographic
Proximity |
Bonnie Bio Certified Compostable Plastic Alternatives in
the United States, allowing it to be closer to its customers. This also helps
with shipping costs and the time it takes for orders to arrive at their
destination. |
The business must be established in a location with a
significant concentration of potential consumers. This may be done globally,
but the closer they are to their consumers, the more successful they will be.
|
The company sells its products through Distributors
because it allows them to have a more significant reach while maintaining
control over its brand image and quality standards. The distributor also
handles sales, marketing, and customer service issues on behalf of the
manufacturer, |
Costs |
The company has a very low-cost structure due to its
direct-to-retail model and minimal overhead costs. The company has an
aggressive growth strategy, which will require them to increase its inventory
levels, but this will be offset by the low-cost structure and a lean business
model (Kymäläinen e al.,
2022). |
Business
distribution is mostly done through direct distribution. Because the firm has
a limited budget and staff to handle it, it employs this approach. The
company employs one sales representative who visits various outlets to sell
its products. |
Distributing products through a wholesale network is much
less than retail. This allows for lower prices for consumers and more profits
for producers. |
Competitors’
Positions |
No one else has entered this market because it is the only
firm that makes compostable plastics that may be utilized to create waste
bags, 3-ply throwaway face masks, and hot water soluble tote bags. |
Bonnie Bio Certified Compostable Plastic Alternatives
competes directly with other companies that produce similar products, such as
Bioplastics, Inc., which manufactures compostable food service products for
restaurants, hospitals, and other businesses that serve food on-site; as well
as Zednik. |
There are no significant competitors because no other
companies produce these products for wholesale purposes. The company does not
have any direct competition within the same industry because it only makes
these products for wholesale purposes rather than retail sales like most
other businesses do. |
Management
Experience |
The founder of Bonnie Bio Certified Compostable Plastic
Alternatives has over 20 years of experience in the recycling industry and
has worked. For big companies like Waste Management Inc, one of America’s
largest waste management companies (Klein, Emberger-Klein, and Menrad, 2020). |
The management experience of Bonnie Bio Certified
Compostable Plastic Alternatives is also very good as they have been in this
industry for many years, so they know what they are doing and how they should
go about doing it if they want to stay successful in the future too |
The company’s management has experience manufacturing
bio-plastic alternatives such as bags and masks. They are also experienced in
marketing products through social media and online platforms such as Amazon,
eBay, etc. |
Staffing
Capabilities |
Due to its direct-to-retail model, the company does not
need additional personnel. However, they may need additional staff if they
begin to pursue wholesale or distributor channels for their products. |
The company has a small staff, so they do not require many
human resources for this business. They can manage all aspects of their
business, such as customer service and marketing. They do not need anyone
else to do these things because they already have experience doing them
beforehand or know how they work. |
Bonnie Bio Cerbeforehandostable Plastic Alternatives has a
team of professionals with several years of expertise in plastic production. The
company also employs modern technologies to meet customers’ needs among the
wholesalers. |
Marketing
Needs |
The company does not currently require any marketing
assistance as they are already selling their products directly to customers
via their website and social media platforms. |
The company does not have any marketing needs because they
are just starting out and still working on getting their name there. However,
in the future, as their business grows, we can expect that they will need
more marketing help, such as advertising and social media management (Klein, Emberger-Klein, and
Menrad, 2020). |
A wholesaler’s marketing needs are different from a retail
business since the latter does not have to sell directly to consumers.
Instead, they sell their products through other retailers, who then sell them
directly to customers. |
V.
Instructions: Operational Plan
1.
Production
The production process will require a vacuum forming machine
to shape the product into its final form. The equipment used for this process
can be found at most hardware stores and costs around 100 dollars (Gaffey et al., 2021). We
will also need an oven to bake our products, and we will rely on our local
bakery to provide us with one that they no longer need. The hot water-soluble
bags will be made from high-density polyethylene (HDPE) derived from corn
starch. This material is certified by the Biodegradable Products Institute
(BPI). The compostable waste bags will be produced using HDPE material derived
from sugar cane. This material has been tested by BPI and has been shown to
pass their requirements for biodegradation at commercial composting facilities.
2.
Quality
control
Bonnie Bio will use only high-quality raw materials that
meet our strict specifications to ensure quality control and stability. The
products will be produced in a controlled environment under strict temperature
and humidity conditions to ensure consistency in product quality. The company
will initiate a complete Q.C. program that includes sampling each lot during
production and testing for chemical properties at periodic intervals throughout
the year (Gaffey et al.,
2021). All of the products will conform to the ASTM D6400 specification
for compostability.
3.
Location
The business owner plans on leasing
space at this location for at least another year before moving into a larger
space elsewhere in downtown Los Angeles. The current lease rates are $2 per
square foot per month plus additional expenses such as utilities, taxes, and
insurance, which add up to about $6 per square foot per month total cost for
rent alone (not including other expenses). The company is located in a
warehouse easily accessible to our customers and employees. The company has
been in business for one year, and the owners are currently looking to expand
the business. The building consists of two floors, each with a separate
entrance (Gaffey et al.,
2021). The current owners purchased the building and renovated it into a
modern office space. The building was used as an auto repair shop before they
purchased it.
4.
Legal
environment
The legal market is quite
competitive. Because there are so many firms that create identical products, we
need to be able to set ourselves apart by providing high-quality products at a
reasonable price. At this time, I am not aware of any required licenses or
permits. At this moment, I am not aware of any trademarks, copyrights, or
patents. Before making any judgments about handling trash disposal at the
location, the company will speak with an attorney who specializes in
environmental law. They’ll also contact local government authorities to check
if any educational programs or workshops on how to comply with their rules are
available. All federal, state, and local regulations and local bylaws will be
required of the company. The legal environment that Bonnie Bio Certified
Compostable Plastic Alternatives will operate in is very favorable for business
owners because there are no special regulations that apply specifically to our
industry or business model (Zwicker
et al., 2020). The insurance coverage required by the company is minimal
due to the location and size of our operation. However, we do have worker’s
compensation insurance that covers all employees, including part-time employees
and volunteers who work for us on a volunteer basis when needed. The insurance
coverage is $1 million for general liability, $1 million for property damage,
and $1 million for employee injury.
5.
Personnel
The company will be looking for persons who can manage the
business. For example, the C.EO will be responsible for running a small
business, from ordering supplies to managing employees. The ideal candidate
would have experience manufacturing or retailing products, but no specific
educational requirements exist. The company will need salespeople who can work
with customers to develop marketing strategies for their products. The company
will also need an accountant who can help manage the business’s finances. The
pay structure is hourly, with a $16/hour base salary. (Teymourian et al., 2021). They also plan to
find qualified employees and contractors through word of mouth and Craigslist.
Training is necessary for both employees and contractors. Employees will be
trained on the products themselves and how to package and ship them out. Contractors will learn how to perform each assignment given
by clients, such as bag wrapping or logo design for bespoke bags. Inventory
Work-in-Process: Work-in-process (WIP) is the inventory
typically produced during manufacturing activities before it is completed and
transferred as finished goods to other locations within or outside the
organization’s facilities (shipped). Bonnie Bio will be using an inventory
management system to manage its inventory ordering process, including
forecasting demand and maintaining adequate stocks. Inventory turnover is an essential
financial ratio used by management and investors to evaluate a company’s
ability to convert its assets into cash (Taufik et al., 2020). The higher the inventory turnover, the
more efficiently the company uses its assets. It also indicates whether it has enough
inventory to meet customer demand.
6.
Suppliers
•Name: Thomas Industries, Inc.
•Address: 1565 N. Highway 80, Little
Rock, AR 72211
•Website:
www.thomasindustriesinc.com/index1.html
•Credit rating: Excellent (Better
Business Bureau)
•Delivery policy: Prompt Delivery;
usually within 24 hours of order placement
• History
and reliability: We have been using them for over ten years with no problems,
and they carry a wide range of materials needed for our manufacturing facility
(Gaffey et al., 2021).
The suppliers are reliable and
trustworthy. We have been dealing with them for many years. We have no reason
to think that their credit or delivery standards will change soon.
7.
Credit
policies
We will offer credit to all customers who have been in
business for at least one year and have a minimum of $50,000 annual sales
volume. We will extend credit for 90 days from purchase on an individual basis.
We will also require a credit card number for each customer order over $500 (Sijtsema et al., 2016). New
customers will be required to provide references from other companies with whom
they have done business and a letter from their bank stating that they are in
good standing. We will call these references and ask them about the quality and
timeliness of the customer’s service and products. We will not give them credit
if we have any concerns about their service, product quality, or timeliness.
They must be in business for at least six months and receive favorable feedback
from several other clients before we offer them credit. We will send a reminder
notice 30 days after the due date of payment has passed if there are any late
payments. If payment is still not received after 60 days, we will send out a
second reminder letter informing them that if payment is not received within 15
days of receiving this letter
VI. Instructions: Management &
Organization
Management
Worksheet
Bio/s
|
-The CEO – is responsible for managing the finances and
making sure everything runs smoothly within the company -Vice President of Sales – responsible for increasing
sales through advertising and marketing (Allison et al., 2021). -Vice President of Operations – responsible for the entire
production process -Human Resources Manager – responsible for hiring and
training new employees |
Gaps
in Management or Experience |
Depending on the industry we enter, we plan to fill any
deficiencies in management and/or experience by employing an in-house manager
or engaging outside sales reps. Depending on the type of firm we enter, we
will either engage an in-house manager or use outside salespeople (Adamcová
et al., 2018). Once the business generates revenue, we will recruit
accountants, bookkeepers, and CPAs. |
Advisors
|
We have several advisors who have assisted with our
business plan. These advisors include: Attorneys have several advisors who have assisted with our
business plan. These advisors include: Attorney – will assist with legal issues, including
contracts, trademarks, and copyrights; Accountant – will assist with financial matters, including
accounting procedures; Board of directors – will assist with strategic decisions; The Advisory board –shall assist with marketing decisions;
(Adamcová et al.,2018). Insurance agent – assist with insurance needs; Banker – assist with banking needs;y – assists with legal
issues including contracts, trademarks, and copyrights; Accountant – assist with financial matters, including
accounting procedures; Board of directors – assist with strategic decisions; Advisory board – assist with marketing decisions; Insurance agent – assist with insurance needs; Banker – assist with banking needs; |
Organization
Chart
References
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