Solar Energy Business Plan for Saudi Arabia

This assignment delves into the development of a comprehensive business plan for a solar energy company operating in Saudi Arabia. It explores the country's market potential, considering factors like population growth, renewable energy demand, and government initiatives. A thorough SWOT analysis, Porter's Five Forces framework, and strategic recommendations are presented to assess the competitive landscape and guide the business towards success.

Business Development Proposal
Oracle Energy Solution

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
CHAPTER 1: INTRODUCTION....................................................................................................2
1.1 Business opportunity rationale.........................................................................................2
1.2 Rationale for this topic chosen.........................................................................................3
1.3 Approach chosen for designing and structuring of report................................................4
1.4 Relevant models and use of evidence sources..................................................................4
1.5 Time-scale for achievement.............................................................................................5
1.6 Structure of the report.......................................................................................................6
CHAPTER 2: CONCEPT OF BUSINESS .....................................................................................8
2.1 Description of business concept.......................................................................................8
2.2 The Concept Statement.....................................................................................................9
2.3 The Window of opportunity...........................................................................................10
CHAPTER 3: FEASIBILITY RESEARCH..................................................................................11
3.1 The feasibility research plan...........................................................................................11
3.2 Primary and secondary data needs.................................................................................11
3.3 Research methodologies.................................................................................................12
3.4 Five key areas of feasibility research.............................................................................13
3.5 Results of the research in terms of ambition vs ability..................................................22
3.6 Emergent resource needs ...............................................................................................23
CHAPTER 4 THE BUSINESS MODEL .....................................................................................26
4.1 Introduction....................................................................................................................26
4.2 Elements of business models..........................................................................................27
4.2.1 Business model canvas...........................................................................................27
CHAPTER 5 THE BUSINESS PLAN .........................................................................................36
5.1 Overviews of the plan.....................................................................................................36
5.2 Products and service.......................................................................................................36
5.3 Marketing plan (500)......................................................................................................37
5.4 Plan of sales....................................................................................................................39
5.5 Proposed plan of action..................................................................................................39

5.6 Personnel plan................................................................................................................41
5.7 Financial Summary.........................................................................................................42
5.8 Statement of likely risk and the ways it can be managed ..............................................46
5.9 Critical factors for success .............................................................................................47
REFERENCES..............................................................................................................................49

EXECUTIVE SUMMARY
Sources of energy such as fuel and electricity are common and highly consumed sources.
In the present era with non renewable energy is rapidly emerging as the alternative to fossil fuels
within the market. Solar panels are considered to be the effective and well defined sources of
energy generation aspects in the market. Present business plan will be developed for Oracle
Energy Solution (OES) to establish a solar panel manufacturing plant in Saudi Arabia. The
organisation will focus on enhancing the energy supply in the market by offering a wide and
significant range of products within the economy. The business unit will set up a manufacturing
plant in Rihad to enhance the sales and growth aspects in the market.
The business plan focuses on significant aspects of the feasibility study of the business. it
develops a well defined understanding about the factors associated with products and features
associated with the same. The business plan has proposed to develop a market for solar panels in
the Saudi market where by an investment plan of 2500000 SAR is proposed. Moreover the study
evaluated that the business success demands a well defined aspect of consumer relations and
quality aspects to enhance trust and loyalty in the market. The market analysis revealed that
government intervention in the economy in high for the business which has developed an
insignificant aspect for the business growth and development aspect. OES will focus on taking
advantage of government support for expanding market to enhance sales. The risk within the
market was analysed to be low due to low market competition in the economy.
It can be evaluated from the study that solar energy source is considered as one of the
most effective market which has developed its demand among household market in Saudi Arabia
and thus enhances the economy of the country. However, it also impacts upon different sources
and thus creates a great impact upon growth factor within international market. Solar panels are
considered to be the effective and efficient sources of energy generation so that it can be utilized
within households so that energy consumption can be saved. Hence, solar energy sources assists
households in providing best support in terms of using renewable energy and thus save the power
consumption. Further, it has been assessed that there is great market for solar energy which
proves to be golden opportunity and attain desired success and growth.
Furthermore, OES helps firm to focus upon using different solar panels as they are in
high demand among the household consumers of target market. Also, company focuses upon
developing manufacturing plant in Rihad city in order to fulfil the needs and wants of consumers.
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Here, main focus of business is to determine and assess the energy requirements among
culturally diverse customers of Saudi Arabia and thus offers them energy efficient and cost
effective aspects of power. The mission of the business will be attain individual consumer needs
of consumers, offering them high quality products by successfully associating with employees,
suppliers and government of the country.
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CHAPTER 1: INTRODUCTION
1.1 Business opportunity rationale
Illustration 1: Solar panel implementation in household
(Source:The Sun's Energy. 2015)
Energy industry is facing challenges within the market due to contracting resources and
rising demand in the economy. Sources of energy such as fuel and electricity are common and
highly consumed. In the present era with non renewable energy is rapidly emerging as the
alternative to fossil fuels within the market. It has been analysed that these sources have huge
potential to grow and develop within the economy. Solar energy source is one of the significant
market which has developed significant demand in the economy. The impact of the same has
created a wide and well developed growth measures in the global market. It has been analysed
that solar energy market has the golden opportunity for growth and development in the present
market. It has helped the companies in creating a well defined impact on demand and supply
aspects in the country. The above figure represents the installation of solar panels in the
household which works as a significant energy substitute for daily operations.
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Solar panels are considered to be the effective and well defined sources of energy
generation aspects in the market. Companies are continuously developing and designing the new
and developed models of solar panels to create and achieve demands within the market. Saudi
Arabia is one of the significant market for the proposed plan. The government is developing high
interest in enhancing the solar energy sector within the market. Considering the above factors
present business proposal for Oracle Energy Solution (OES) has been designed and developed
to establish a solar panel manufacturing plant and market in Saudi Arabia. As per the researches
the stated country has wide scope of development and is developing high demand for solar
panels. Moreover, the overall growth aspects for the proposed product is high in Saudi Arabia as
government is developing effective infrastructure for the renewable energy industry thus Solar
panel manufacturing will be a successful business opportunity in the country.
1.2 Rationale for this topic chosen
The analysis of energy industry revealed that the scope of the segment growth and
development is high and effective in the nation. It was evaluated that countries are seeking
alternatives for fossil fuel to enhance the growth and development aspects. Solar panel models in
the current era are developing at an effective rate. Solar power is an increasing market due to low
cost association and environmental aspects associated with the business. The present topic will
develop an extensive and in-depth analysis related to market demand and growth associated with
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Illustration 2: Working process of solar panel
(Source:Solar Mounting Systems 101, 2015)

the selected product. It has been evaluated that wide number of projects have been undertaken on
the selected aspect. Government and organisations are handling the projects in an effective
manner. The topic thus have been selected to develop an in-depth understanding about the topic
and analyse the opportunity associated with the proposed products. Solar panels are developing
market all over the globe. Business proposal on this topic will help in developing an extensive
understanding about the same.
1.3 Approach chosen for designing and structuring of report
The present study will undertake a detailed an extensive study regarding solar panel
manufacturing and installation in residential aspects for the study. The research will be carried
out on the exploratory approach which will help in analysing the concept, methods and analysis
of solar energy and its demand in the overall market. This approach will be effective for
understanding the information analysed and to seek the effective gap within the market to
establish the proposed product. Exploratory approach will help Oracle Energy Solutions (OES)
to understand the customer requirements and demands in the market. It will be identify that how
the company can produce the sustainable net cash flow and profit. Secondary research analysis
will be carried out to identify the significant information for the study.
1.4 Relevant models and use of evidence sources
OES is developing a feasible study to start up a new development project within the
market. Relevant concepts and models will be analysed and evaluated for the overall analysis.
The list of concepts and models applied in the study are effectively discussed henceforth.
 Timescale
 The Statement of concept
 Value Added Analysis
 Target market evaluation
 Feasibility of the research
 Gap analysis
 Segmentation analysis
 Value propositions
 Behaviour of buyers
 Start-up capital
 Working capital
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 Cash flow
 Break even analysis
 Marketing plan
 Assessment of risk
 Sustainability of business
 Statements of Finances+
1.5 Time-scale for achievement
The overall analysis will be undertaken as per the scheduled time frame and in a
structured manner. This will help in developing effective and well defined results for the
organisation. This aspect for the study will help in ensuring the well defined structure and
activity schedule to carry out the business plan for the proposed product.
Table 1: Time scale for Business plan
No. Tasks Duration in
weeks
Dependency
1 Conducting Market and Feasibility Analysis 3 -
2 Arrangement of funds 2 2
Selecting and finalizing the location 3 2
4 Appointing Employees 2 3
5 Buying essential equipment’s and tools 1 4
6 Installing the machines and tools 3 3
7 Marketing activities 2 5
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1.6 Structure of the report
The overall analysis of the study focuses on creating a detailed evaluating of research
structure. The report will analyse different aspects which the organisation will carry out to
conduct a detailed analysis of the study. The business development proposal consists of the
following chapters: Chapter 1 Introduction: This chapter of the study will develop an overview of the overall
study. This section of the study will develop a synopsis of the business plan and aspects
related to the same. This chapter will introduce the product idea, its relative market, and
significance of the study as well. It also provides a detailed analysis about different
models and frameworks which will be applied in the study to attain business objectives. Chapter 2 Business concept: This aspect of the study will analyse the detailed planning
about the business concept. It will examine the product features demanded in the country
the target market for the product and the value that the product will provide to its
potential buyers. Thus, it develops a well defined understanding about the factors
associated with products and features associated with the same.
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 Chapter 3 Feasibility Research: This chapter of the study will analyse the methodology
aspects of the analysis. The data collection aspects and research analysis will be
investigated in the section mentioned. It will help in developing a detailed planning about
five major areas of feasibility research. Chapter 4 The Business Model: This section of the study is one of the significant and
most crucial part of the study. The chapter will evaluate the financial viability and
competitiveness within the market. This section will critically determine the
sustainability and growth aspects of the venture.
 Chapter 5 The Business Plan: This is the last and most effective section of the analysis
which will focus on analysing the overall study and will analyse the feasibility of the
study to generate effective and well defined results for the business.
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CHAPTER 2: CONCEPT OF BUSINESS
2.1 Description of business concept
This section discusses that energy industry possess huge growth and success in the
market due to raising demand among consumers. However, main issues faced by such business is
increasing imbalance for resources contracting supply and rising demand for fuel and gas within
economy. It involves wide range of sources such as fuel and electricity that are common and
highly consumed by every sector of the country. Consumers are focusing upon more renewable
energy in comparison of using fossil fuels which is non-renewable sources. Also, the mentioned
resources which are cheaper as compared to fossil fuels that are high priced. Hence, renewable
energy sources possess huge potential to grow and develop within the economy. Solar energy
consumption is increasing among household in day to day lives which helps them to save the
cost of electricity and other energy sources. Therefore, solar energy source is one of the crucial
market that has developed its demand within the economy. However, it impacts upon the sources
and creates a wide and well developed growth measures within the global market. Solar energy
sources also helps in providing best support to consumers in the form of saving renewable
energy and thus using solar panels to absorb the sun rays and utilize for household purposes.
However, solar energy market has developed golden opportunity for current market growth and
success. It also assists several companies to create a wide market in order to fulfil the demand
and supply aspects within the nation. Solar panels are considered to be the effective and efficient
sources of energy generation so that it can be utilized within households so that energy
consumption can be saved.
There are different companies which are regularly working in the field of solar panels in
regard to develop and design different innovative models of solar panels to fulfil the needs of
Saudi Arabia target market. Here, government of the country is focusing upon enhancing the use
of solar energy sector within market. Oracle Energy Solution aims to design and develop
innovative solar energy panel so that they can set up their manufacturing plan in Riyadh, Saudi
Arabia. It has high population as well as developed by all means. A 200 KW rooftop installation
is planned to establish in Riyadh which is expected to generate 330 Mwh/year. It can be
evaluated that country possess significant scope of development and also possess huge demand
in relation to set up solar panels to utilising renewable energy sources. Hence, the proposed plan
for setting solar panels in Saudi Arabia requires huge infrastructure for the renewable energy
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industry and thus solar panel manufacturing could be successful business opportunity within
country. Energy industry is wide spread and thus it has high growth and development within
market. Also, it can be assessed that countries are focused upon using renewable energy sources
as compared to fossil fuels. Implementing solar panel models assists in developing the country
and using renewable energy resources to save the cost and sources of country. Saudi Arabia is
wider market for the extensive and in depth analysis so that market demand and growth aspects
can be identified.
2.2 The Concept Statement
The Product/Service
Solar panels are the best source of using renewable energy and thus helps in saving
electricity within the country. Energy industry has been revealed as one of the main factor of
growth and development within the nation. These are most preferred sources as compared to
fossil fuels. Solar power is the sector which requires low cost and environmental effectiveness
associated with the business.
Target market
In the current business that is Oracle Energy Solution the target market includes the
households of Saudi Arabia. The reason for selecting cited country because it is using efficient
utilisation of renewable energy resources and focused to attain best results.
Value added
In the current case, the value added for solar panel technology offers best renewable
resources for target marker. It is an innovative system of utilising the resources efficiently in
order to overcome the wastage of high cost. Additionally, firm also offers additional services
which is related to provide best renewable energy sources so that electricity can be saved within
the nation.
Specific features
Here, in the business plan the main features of business is that it is focusing upon
installing quality solar panels so that renewable energy sources can be best utilized and save the
electricity cost of households. Firm also aims to use renewable sources as compared to fossil
fuels so that cost can be saved by firm.
Who is involved
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Firm involves different households within firm in order to implement the solar panels so
that energy can be saved. However, priority will be offered to the individual who possess greater
experience. Requirements of different households will be identified in relation to know the
significance of solar panels and then such innovation would be implemented to attain desired
results.
2.3 The Window of opportunity
Solar panels business possess greater opportunity that helps customers to gain a good
outcome and society as a whole. However, the energy industry is a major area for investment and
thus such sector is looking forward to be the best driver of future prosperity. Such sector possess
wide potential to grow the business in the market. Furthermore, there is an effective opportunity
in the segment for a well managed business to grow faster and more profitably than the industry
average because of existing fragmentation of the business and attracting different households to
implement the solar efficient resources to save cost and energy as well. In the present business
plan, Oracle Energy Solution develops and designs effective solar panels so that they can be
implemented within the households of Saudi Arabia as it is the highest energy saving sector.
Such industry is growing faster and more profitably than other industry and thus enhancing
efficiency of firm in market. However, such sector possess high potential and thus they need to
identify the current needs of individuals and then develop t he energy efficient resources so that
success can be attained in an effective way.
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CHAPTER 3: FEASIBILITY RESEARCH
3.1 The feasibility research plan
It is essential for scholar to identify the feasibility of the business plan which means that
the idea will work out effectively in reality to attain desired goals. For instance, when any one
individual is discussing the business plan with another it seems easy to be implemented but at
certain times it becomes very difficult to open the same business as there are various issues
present. Therefore, it is necessary for entrepreneur to identify the feasibility of the business plan
before implementing the same in the business. Thus, in regard to check the feasibility of the
business plan, a detail analysis needs to be carried out with the help of selecting primary and
secondary data. Furthermore, projection of financial statements need to be made so that income
and expense within firm can be analysed. Thus, the estimated statement of profit and loss,
balance sheet and cash flow needs to be prepared.
Through preparing such statements it is the best way that helps in identifying the
feasibility of the study and measure the success of firm in market. Hence, profit of the projected
business plan could be measured so that appropriate investment can be made. Business model is
considered as one of the crucial thing which needs to be taken into consideration so that viability
of the project could be analysed. Business model states that it is the way through which solar
panels installed will help the households to save energy. Hence, in regard to make sure that the
particular business plan of installing solar panels for domestic households energy supply helps in
preparing appropriate business model. In regard to this, in depth research is being carried out on
the business models that are adopted by various businesses within Saudi Arabia market. Through
evaluating and finding out the advantages and disadvantages of business model adopted by the
entrepreneur planning to install solar panels for domestic households needs to test the feasibility
of the business venture. Thus, it is the best way through which feasibility of the business plan
will be measured in an effective manner.
3.2 Primary and secondary data needs
Both primary and secondary data research are considered as the crucial component of the
study. In the current study, secondary data research is being carried out. However, on single sight
upon the facts or figures, viability of the business idea could not be measured. Thus, through
conducting secondary research within the current study before starting a new venture it is
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essential to understand the business conditions. For such purpose, it is essential to understand the
previous researches done on the business model and take assistance to understand the process
effectively. Hence, for this secondary research is done which helps in analysing the business
information so that set targets can be attained. However, the secondary data information will be
collected from different sources so that best information can be gained. Here, different sources
such as business newspapers will be taken into consideration so that significant data can be
collected. Through business journals it helps in identifying the requirement of people towards
power consumption can be identified so that solar panel needs for domestic households can be
assessed in order to implement the same so that success can be attained. Further, books, online
articles and magazines can also be helpful in collecting secondary data so that crucial
information can be gained. In addition to this, periodic reports of market for solar panels for
domestic households energy supply will also be evaluated in order to access demand for product
in the market. Hence, collection of all such facts and figures will help in creating deep
understanding regarding the business conditions that will be used to develop appropriate business
plan.
3.3 Research methodologies
Research design
It involves three types of research design such as descriptive, experimental and
exploratory research design. Thus, all such research designs are used in various conditions. As
per the research requirements appropriate research design is selected for the research and obtain
desired results. Here, in the present study, exploratory research design will be suitable for the
study. It involves different categories of data collection that falls under this category. As per the
research requirement, appropriate data collection method will be adopted in regard to collect data
for the study.
Research approach
In regard to carry out the current study, it involves two different types of data such as
qualitative and quantitative. Quantitative data assesses to the facts and figures which are
collected in relation to the research title. While, there is qualitative data that states to the
theoretical data which does not involves the facts or figures. However, in regard to conduct
extensive research both type of data will be collected in order to execute the business plan. The
present business proposal is such that needs application of both the approaches within the study.
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Data collection methods
Data collection is considered as one of the significant tool for carrying out the business
plan. In the current study of creating an effective market for solar panel for domestic households
within Saudi Arabia, secondary data collection method will be undertaken. Here, different
published articles, books, online journals etc. will be researched so that appropriate information
can be obtained. Further, newspapers, business magazines and reviewing online blogs will be
adopted to accomplish the study.
Data analysis
In the current business plan on identifying the effective market for solar panel for
domestic households within Saudi Arabia quantitative technique is being adopted in regard to
assess the data. However, the main reason of quantitative analysis is that with this the scholar
aims to obtain best insight to the future usability of solar panels within the households. Hence, it
helps in identifying the profitability of such new venture. Hence, it helps in undertaking crucial
decision regarding investing in such type of business plan. Quantitative analysis helps in
adopting effective analysis of the financial statement which helps in developing business plan so
that desired results can be attained.
3.4 Five key areas of feasibility research
Product/service
The present study will be based upon effective market for solar panel for domestic
households within Saudi Arabia and thus it possess effective core competencies to work for
target market and attract different households for the same. Here, the focus of business is upon
offering superior quality services to the customers living in Saudi Arabia. Oracle Energy
Solution (OES) would strive to be accurate as well as honest with their target households in
regard to provide them detailed knowledge and information about the solar panels and its
benefits.
Moreover, honesty would be complied with while communicating the installation time
constraints to households. However, the services would be delivered as per the promise made by
the business owners so that it could satisfy the needs of clients. It lays emphasis upon developing
strong relationship with customer which is base upon the trust and integrity in order to develop
strong relationship among each other (Allen, 2012.). Here, business uses effective use of
technology for the purpose of managing the new venture and thus attain desired targets. The
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main aim of Oracle Energy Solution (OES) would like to facilitate the customers in making
appropriate selection of the suitable parts for their application at suitable price so that they can
meet the expectations of customers and enhance more number of people towards firm. Further, in
case of any issues faced by business it would help and counsel the customer so that solution can
be done within minimum span of time (Bolton, 2013). Also, business engages in installing large
amount of solar panels that involves various procedures for new venture.
Cited venture requires to involve different types of solar panels in the market because
they are of great demand among the households. Thus, it helps in meeting the requirements of
the clients in an effective way. Installing solar panels would help in performing an effective
approach so that best results can be attained. Hence, it offers a greater convenience to the clients
in terms of saving cost as well as energy in order to attain effectiveness. Further, there are
different services that are delivered by company in relation to installation so that household
consumers are benefited from the same and thus best results can be attained. Such new venture
would help in offering them appropriate services which helps in fulfilling their requirements with
greater case and attain maximum results. Moreover, workers of business employs greater
expertise and thus they are being able to offer quality services and products to attain success.
Industry and market analysis
It can be assessed that there is an increasing demand for solar panels for household
consumers in order to save energy and other resources (Burns, 2014). Hence, it can be assessed
that it helps in obtaining greater role of increasing technology that affects the demand within the
solar panel energy sector. Through improvement in the awareness among individuals, today
almost each and every person prefer to install solar panels at their homes. It is the reason that
provides ease to consumers by providing them different factors that helps in saving their cost and
energy. Main strength lies towards making innovations in the solar panels so that it affects the
demand to a significant level (Evans, 2011). However, it has been assessed that in the current
time period, it is one of the significant industry that possess effective growth with the passage of
time. Hence, firm plans to enhance the manufacturing of solar panels so that large number of
customers can be attracted to implement solar panels in their homes (Bangs, 2002).
Solar panels play a significant role in regard to facilitate households in regard to offer
desired outcomes within the market (McKeever, 2012). Also, the demand of solar panels within
individuals has been increased and thus it brings advancement so that success can be attained. In
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regard to fulfil the requirements of target market it is essential to establish the solar panel
business and thus attain success. Business also plans to provide best products or services to
households in regard to enhance the sales and profitability of firm in Saudi Arabia market.
Further, a total of 24 GW of renewable energy is expected by 2020 and 54 GW till 2032 (Solar
Achieves Grid Parity in Saudi Arabia – Significant Developments Expected, 2013). However, till
the year 2015 it has been announced that the plan was delayed with completion of not occurring
till the year 2040. Further, a 200 KW rooftop installation is planned for Riyadh and thus it
expects to generate 330 MWh/year.
It has been assessed that electricity demand in Saudi Arabia is increasing and thus it
means that it requires to expand the generation of power. Also, conventional generation is a
major cause of environmental pollution and it also negatively impacts human health through
greenhouse gas emissions (Borlase, 2012). Moreover, there is an alternative method of
generation is found that helps in preserving the environment and health which would support
existing conventional generation during peak hours. Saudi Arabia is geographically suitable
because it is located in the sun belt area and thus it is the major source of solar energy producers.
However, solar energy is direct competitor to conventional generation when the indirect costs of
fossil fuels are involved. Hence, processing sunlight through photovoltaic cells is an crucial
method of generating clean energy. Also, households prefer to invest money in solar panels
because it is less than the cost of fossil fuel energy when the cost of environmental and health
damages is taken into consideration (Bowhill, 2008).
Through increasing the awareness and usage of technology among the customers it
enhances the popularity of firm among customers to enhance the sales and profitability. As
renewable energy is considered as the major sources which helps in attracting customers to
install solar panels instead of using fossil fuels that are higher in cost. It also helps business to
assess that firm is being able to attain better quality services to end users and save their time and
cost. It would also help in fulfilling their requirement up to a great extent so that individual can
implement such cost effective resources and save resources (Brunsman, DeVore and Houston,
2011). Also, there has been regularly increase in demand to install solar panels within the
households of Saudi Arabia so that energy and cost can be saved.
Furthermore, it can be assessed that solar power is considered as the major goal for Saudi
Arabia and thus it is essential for them to implement renewable energy sector so that they can
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survive for long term in market. Solar program at one point aims to establish the framework for
the new renewable energy plan and needs more time to complete its planning. Also, they are
responsible for renewable energy policy in order to invest in them so that best targets can be
attained. Further, a large combination of different economic problems being faced by firm in
order to install solar power plant. It has also resulted into increase the number of capacity so that
best results can be attained. However, such trends towards overcoming non renewable sources
needs to be overcome so that best results can be attained. Hence, it is significant for firm to
install the solar panels so that best results can be attained in regard to enhance the sales and
profitability of firm.
Organisation
PESTLE ANALYSIS
The external factors effecting the organizational operations of the company has a
significant and well defined impact on overall growth and development of the business. The
factors analysed for the same involves: Political factors: The impact of government policies and regulations within the market
plays a significant role in analysing and evaluating the growth and development aspects
of the business unit. Saudi Arabia is a sovereign nation where monarchs still regulates the
policies and procedures of the countries. This has enhanced political stability in the
nation. Moreover policies regarding business growth and development has created a well
defined impact on the business development impact in the country. However government
is focusing on developing a well developed infrastructure for solar power industry.
Hence, solar power plant has high development measures in the country. Moreover
effective government policies will help the business in creating a high growth measures
for the industry and company as well. Economic factors: These factors are crucial in analysing and evaluating the demand and
supply aspects for products and services within the country. Factors such as population
rate, per capita income, rate of inflation, living standards of people etc are the factors
analysed for the stated aspect. Saudi Arabia is a well developed nation which has
developed a strong economic position. The per-capita income of the residents is high
which provides them high purchasing power. Thus it clearly reflects that economic
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aspects of the country will help the industry to grow and develop high demand within the
market. Social factors: These factors focuses on analysing the changing trends and demands of
the consumers within the economy. It helps the countries in developing high and
significant impact on the demand for products and services. The industry analysis of solar
sector in Saudi Arabia reveals that the country has developed high and significant
demand for solar power. Population of the nation is demanding economic and efficient
source of power to develop well defined growth measures within the market. In addition
to this it has also been evaluated that the global shift in energy demand has helped people
in finding cost effective source of energy supply in different households. Hence demand
for solar power is continuously increasing in the country which has effected the
production aspects of the nation in a significant manner. Technological factors: technological growth and development within the country
enhances the production capacity of the industry and create high development aspects for
the companies. Saudi Arabia is technologically advanced nation which has developed
significant market for energy industry. The country is technically advanced and growing.
The solar power plant manufacturing aspects have high development aspects in the
country as the technological infrastructure is effective. Moreover government support and
subsidiaries have helped in strengthening the technical aspect of the company. Moreover
electronic infrastructure of the country is also advanced. However the manufacturing
aspect may demand specific machinery and equipments which will develop high and well
defined demand in the economy. Environmental factors: Environmental aspects is one of the most crucial factor which has
created high and significant impact on manufacturing nations around the world. The
environmental aspects of the country has to be analysed in an effective and well defined
manner. Solar energy industry has developed significant growth aspects within the
market. Solar panel industry has a positive impact on environmental growth and
development aspects. The products focuses on minimizing the wastage of non renewable
resources. It efficiently utilizes solar energy for household operations and day to day
work. Thus solar energy will help in minimizing the cost and pollution factors in the
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market as well which will help the industry in attaining positive environmental results for
businesses and people. Legal factors: The legal aspects associated with the industry and country will help in
determining the operational business factors. Solar energy sector is a developing industry
which has developed high pressure of rules, regulations legal aspects. This has helped
companies in enhancing the demand and supply aspects in the organisations as well. The
regulations regarding manufacturing framework and quality aspects of the business need
to be evaluated closely and efficiently to attain success in the economy.
Financial planning
Finance is the blood of the business which helps in attaining the business objectives in
significant and well defined manner. Financial aspects of Oracle Energy Solutions (OES) will be
kept conservative and simplified to attain well defined objective of the business. This aspect will
focus on managing cost of the company to enhance profitability. This will help in attaining
developing the project plan of the business in a budgeted and planed manner. In addition to this
the organisation will ensure to optimise the cost in order to minimise the expenses of the
organisation.
The financial aspect for the proposed plan will be attained in a well defined manner. The
project will demand the capital funding of 2500000 SAR for enhancing business development
within the market. The financial requirement for enhancing the business will be met through
taking a loan at effective 4% annual rate of return repayment of which will be in 15 years. This
will help the business unit in budgeting the needs and requirements of the business plan in an
effective and well defined manner. The risk associated with the plan is moderate. Normal
business risk is for the plan is high. However the financial and economic risk is low because the
country's demand for solar energy is growing subsequently. Moreover, the technological factors
and demand risk is the market will pose minimum risk for the proposed plan because the selected
energy alternative will develop high market in the coming years which will make the venture
profitable for the future. Moreover rising cost for non renewable energy sources will make solar
panel demand favourable in the future.
Table 2: Financial forecast for 5 years
(a) CAPITAL 2017 2018 2019 2020 2021
19

FUNDING 2,500,000
Loan repayments
(b) SALES FORECAST 2017 2018 2019 2020 2021
Sales Value 1,000,000 1,050,000 1,102,500 1,157,625 1,215,506
(c) COST OF GOODS 500,000 525,000 551,250 578,813 607,753
(d) EXPENSES
Premises 20,000 20,000 20,000 20,000 20,000
Wages 61,000 62,830 64,715 66,656 68,656
General Expenses 60,000 61,800 63,654 65,564 67,531
Interest
Market survey 2,000
Preliminary expenses 10,000
Lease payments 7,000 7,000 7,000 7,000 7,000
Dividends
(e) FIXED ASSETS
capital
cost
Building
Furniture 8,000
Vehicles 40,000
Plant and Machinery 30,000
total 78,000
The above table represents the financial aspects of the start-up business operations. The
table clearly reflects that that OES will invest 2,5000,000 SAR as initial capital of the business.
The expected sales of the business are reflected as per the market research assumptions. The
above table reflects that the sales value of five year is expected to rise on a continuous basis. The
sales of solar panel in household section will be 1000000 SAR which by 2021 is expected to rise
to 1215506 SAR. Associated expenses are also mentioned in the table.
Table 3: Financial planning for Oracle Energy Solution
(a) SALES
20

FORECAST
Year 0 1 2 3 4 5
(a) Sales Value
1,000,0
00
1,050,0
00 1,102,500 1,157,625 1,215,506
(b) Cost of goods 500,000 525,000 551,250 578,813 607,753
ALL
VALU
ES IN
SAR
HERE
AFTER
(2) CASHFLOW
FORECAST
Year 0 1 2 3 4 5
CASH INFLOWS
Cash from Sales
1,000,0
00
1,050,0
00 1,102,500 1,157,625 1,215,506
Directors loans 0
Share capital 2,500,000
Other external
finance/loans
Other cash inflows
TOTAL CASH
INFLOW 2,500,000
1,000,0
00
1,050,0
00 1,102,500 1,157,625 1,215,506
21

CASH
OUTFLOWS
Payments for
materials 500,000 525,000 551,250 578,813 607,753
operating expenses (
) 0
Premises (rent, rates) 20,000 20,000 20,000 20,000 20,000
Wages and salaries 0 61,000 62,830 64,715 66,656 68,656
General expenses 0 60,000 61,800 63,654 65,564 67,531
Interest and bank
charges payable 0 0 0 0 0 0
Lease payments 7,000 7,000 7,000 7,000 7,000
Corporation Tax 171,643 96,530 102,906
Market survey costs 2,000
Other preliminary
expenses 10,000
capital expenditure
Plant and other
capital expenditure 78,000
financing
repayments
Loan repayments 0 0 0 0 0
Dividends 0 0 0 0
TOTAL CASH
OUTFLOWS 117,000 648,000 676,630 878,261 834,563 846,846
Cash flow summary
NET CASHFLOW
FOR PERIOD 2,383,000 352,000 373,370 224,239 323,062 368,660
OPENING CASH
BALANCE 0
2,383,0
00
2,735,0
00 3,108,370 3,332,609 3,655,671
22

CLOSING CASH
BALANCE 2,383,000
2,735,0
00
3,108,3
70 3,332,609 3,655,671 4,024,331
(3)
DEPRECIATION
SCHEDULE
Year 0 1 2 3 4 5
Building 0 0 0 0 0 0
Furniture 8000 7,200 6,400 5,600 4,800 4,000
Vehicles 40000 32,000 25,600 20,480 16,384 13,107
Plant and Machinery 30000 24,000 19,200 15,360 12,288 9,830
total book values (ie
net fixed assets) 78000 63,200 51,200 41,440 33,472 26,938
Annual
Depreciation
Land-0%
Building-4% straight
line 0 0 0 0 0
Furniture-10%
straight line 800 800 800 800 800
Vehicles - 20%
reducing balance 8,000 6,400 5,120 4,096 3,277
Plant & machinery-
20% reducing
balance 6,000 4,800 3,840 3,072 2,458
total annual
depreciation 14,800 12,000 9,760 7,968 6,534
(4) PROFIT AND
LOSS FORECAST
23

Year 0 1 2 3 4 5
Revenue 0
1,000,0
00
1,050,0
00 1,102,500 1,157,625 1,215,506
Cost of sales 0 500,000 525,000 551,250 578,813 607,753
Gross profit 0 500,000 525,000 551,250 578,813 607,753
Expenses/overheads
Premises (rent, rates) 20,000 20,000 20,000 20,000 20,000
Wages and salaries 61,000 62,830 64,715 66,656 68,656
General expenses 60,000 61,800 63,654 65,564 67,531
Interest and bank
charges payable 0 0 0 0 0
Lease payments 7,000 7,000 7,000 7,000 7,000
Depreciation 14800 12000 9760 7968 6534
Other expenses 12,000
Total
expenses/overheads 0 174,800 163,630 165,129 167,188 169,721
Profit before tax 0 325,200 361,370 386,121 411,625 438,032
Tax @25% 171,643 96,530 102,906 109,508
Profit after tax 325,200 189,728 289,591 308,718 328,524
Dividends 0 0 0 0
Transfer to reserves 325,200 189,728 289,591 308,718 328,524
24

ROEI 13% 8% 12% 12% 13%
The above table reflects that different financial aspects of the proposed plan of
implementing solar panels for household consumers in Saudi Arabia. The company is planning
to invest 2500000 SAR as initial investment amount. Expected sales of the business is to grow
by 5% each year which will help the company in attaining effective growth aspects till 2021.
Also ROEI has been rep[resented in the table in a clear manner which reflects that the business
will attain minimum of 8% returns each year which makes the venture a successful prospect in
Saudi Arabia.
3.5 Results of the research in terms of ambition vs ability
In order to ensure the success of the venture well defined the company must ensure that
the gap between planning and execution is minimum which will help the business unit in
attaining high and well defined growth aspects within the economy. It will also helps the
companies in creating a significant measure of development in the competitive market in the
economy. The success of bushiness plan depends on effective analysis of the concept of ambition
and ability (Fox, 2009). This focuses on analysing the capacity of the company to plan and
analyse the future growth and development aspects of the business. The current business
proposal focuses on creating demand for solar panels within households and culturally different
residents of the country. The above discussion of the proposal determines the growth and
development aspects of the business unit within the economy to create a well defined impact on
the enhancement of business profitability in the economy.
Oracle Energy solution is the globally established company which is focusing on
developing demand for solar panels in households of Saudi Arabia. The major aim of the
business is to develop demand and to provide quality ascertained goods and services within the
economy. This will help the business in enhancing customer satisfaction aspect and enhance
growth and development measures within the people. In order to accomplish the stated ambition
the company needs significant knowledge of the market, culture and demographic aspects of the
area. In addition to this, a team of experts who are able to enhance knowledge of the consumers
about the products and services to ensure wider and effective energy consumption will also be
helpful. The product has significant potential to grow in the market (Jones, 2009). Effective
marketing and promotional aspects will be required to attain the business objectives ambition.
25

OES has developed effective plan to ensure success and growth aspects in the market.
The capacity of the company to high profitability in the market is significant. Moreover it has
also been analysed that the organisation need an expertise team of employees who can persuade
employees towards product purchase and growth in the market. OES has developed a significant
base to attain the stated aim and objectives of the company. The business unit needs effective
and well defined source of human and technical support to ensure development aspect in the
economy. This will help the business unit in generating specific products as per the local needs
and demands of the consumers. It will enhancing demand and high level of satisfaction within
consumers in the mentioned market.
3.6 Emergent resource needs
Oracle Energy Solution will need effective and well defined resources for the business
which will help the company in attaining high and effective growth and development aspects
within the market. Starting a business venture is a challenging task. The companies analyses the
need and demand of resources for ensuring the growth and development of the venture. This also
creates a significant development plan for the business functioning in the market. The analysis of
resources required by the business for attaining business objectives includes: Financial resources: Finance in the lifeline of the business which help companies in
attaining high and effective growth and development aspects in the economy. This
measure is significant for attaining success aspects in the economy (Kraten, 2010). OES
is a start up business venture which will establish the overall business effectively within
the market by creating a significant and well defined impact on the financial needs and
demands of the business. Funding is one of the most significant aspect of the business
which will help the company in attaining high and effective growth measures. Funds will
be needed from the most significant to smallest business operations. It will help in
attaining the business needs of production, setting up plant, attaining technical resources,
developing communication aspects, printing business cards etc. it will help the company
in attaining high and valuable measures of growth and success within the economy.
 Human resources: These are the resources which helps the business in attaining
successful growth and development aspects within the market while enhancing
development measures (Learning, 2005). By the means of understanding the competition
and attaining knowledge smarter decisions can be developed by the researcher in an
26

effective manner. This assist in offering suitable direction with respect to
implementation of the plan to a significant extent. This will help the company in attaining
high growth and development aspects in the market. Employees for OEL will help in
attaining business objectives and enhancing organisational sales. The employees for the
business will help in developing a competitive edge in the market which will help in
effectively attaining growth and development aspects in the company. The human
resource requirement of OES will be
Table 4: Employee need assessment
Employees Number
Finance executive 2
Marketing executives 3
Inventory managers 1
Technical employees 3
Relationship managers 1
Operational employees 6
 Physical resources: This aspect of the business will focus on attaining high and effective
growth and development measures for the business unit. The physical resources will be
significant aspect of business growth and development. OES will be selling installing and
evaluating solar panels for effective and well defined usage of solar energy for the future
growth aspects. The physical resources required for the stated aspect includes, material,
machinery, warehouses and transaction aspects for the business. This will help the
organisation in successfully managing and attaining the business growth aspects within
the market. The mentioned physical resources will help the company in attaining high
and significant growth and development measures. Proper space for working, telephone
lines, effective marketing materials as well as sufficient information systems are some
27

other physical resources that the business will need to ensure growth and development
aspects in the economy.
 Technical resources: This organisational aspect also consist of significant growth and
demand within the economy. It will help the business unit in creating high and well
defined growth measures within the market (Martin, 2002). Selling and installing solar
panels in the households demand highly technical aspect for the analysis. It will also help
the business unit in attaining high and significant growth and development measures in
the company. The entity will require technical resources in terms of solar panel boxes,
installation boxes, pressure monitoring panels, control panels, etc. these resources will be
significant for effective and well defined functioning of the channels. Moreover for
household installation demand of effective and well defined growth aspects for the
business will also be demanded in a significant manner to attain safety and successful
functioning of the products installed. Also Technical executives with effective
mechanical and technical knowledge will help the business unit in attaining high and
effective growth aspects in the market.
28

CHAPTER 4 THE BUSINESS MODEL
4.1 Introduction
Business model is a crucial and significant aspect of attaining business objectives and
attaining structured measures to target market and attain well defined business results for the
organisation. It helps in developing a significant relationship between different aspects of
organisation al structure and consumers networks as well. The business model entails the
strategies that must be used by the business organisation in order to attain success in the
competitive market. Business canvas model will help in analysing the overall business
structure and functions which helps in operating the business activities within the market
(McCabe, 2010). It is significant for attaining high and successful growth aspects within the
market. The value chain analysis of the business helps in attaining high and well developed
measures of success and growth within the market. It assess the strategic resources applied in
the business and contribution of the same in business development. Moreover competitive
analysis of the business will be carried out in the study and effective strategies for attaining the
competitive edge in the market will be applied in the plan. This section will help in drawing a
detailed planning analysis of business plan for attaining effective and well defined business
objectives for the organisation.
29

4.2 Elements of business models
4.2.1 Business model canvas
Illustration 3: Business canvas model
(Source:Bowhill, 2008)
 Key partners: OES will produce solar panels and sell them in the market to attain high
and well defined growth in the economy. This will help the company in attaining high
growth aspects. The key partners of the company will be the suppliers of raw material for
production. The raw material will be acquired from the local traders of the country. The
company will develop a strategic partnership with government bodies of the country who
will regulate and monitor the business performance. Key activities: Manufacturing, selling and installation activities will be strategically
focused by the business unit to attain high and well defined business objectives within the
economy. In addition to this marketing and consumer networking will also be focused
upon by the business unit (McKeever, 2012).
30

 Key resources: The key resources of the business will include financial resources
(investment fund), physical resources (Vehicles and manufacturing unit) and intellectual
resource (Engineers and employees) for the business which will help the company in
attaining high success aspects. Value preposition: The company will offer services of developing and installing the solar
panels for households of Saudi Arabia. The value preposition offered by the company
will include customised solar panels for the individual household needs and demands.
The installations and after sales services of the product will also be provided. A wide
range of services will be offered in the section. Customer relations: relationship management and direct contact will be effective and
well defined measures to develop consumers relations within the economy. Developing
networks from local power dealers will help the company in enhancing consumer
networking in Saudi Arabia. Channels: OES will develop a well defined supply chain in the economy which will help
the company in enhancing sales in the market. The channels of distribution for the
business will include retailers and dealers assigned in the market. They will help in
creating demand and enhancing sales. Direct selling is yet another significant aspect of
enhancing business sales. Customer segments: The consumer segments for the stated business will be culturally
diverse household segment. This will help the company in attaining high and valuable
growth measures within the economy. Cost structure: The cost structure of the business demonstrates the means that acts as an
in making selection of the final selling price for the products. The cost structure of OES
involves different elements which will help the business unit in attaining effective pricing
strategy for the business. The cost structure of the business will include retailer's and
dealer's margin. Revenue stream: This is another crucial aspect of attaining well defined growth measures
within the market. The revenue stream for the business will focus on attaining high and
well defined aspects of revenue for the business enterprise. The major source of revue for
OES will be sale and installation of solar panels in household. In addition to this proving
dealerships will also generate revenue for the business unit.
31

4.2.2 Value chain analysis
This is an analytical framework which helps in effectively determining the internal
analysis of the business to attain high and well defined measures of business growth in the
competitive era. It comprises of support activities as well as primary activities of the business.
The value chain analysis for OES is discussed as below.
Primary activities: Inbound logistics: The company will develop strategic partnership with the sole traders of
Saudi Arabia to attain economic material for production aspects of the business. It will
help the company in attaining high and valuable business growth
 Operations: The company will be undertake the overall business process where by
activities related to production, selling and installation of the product will be managed by
the business. This will demand strong internal health of the business. Outbound logistics: This aspect of the company will focus on making the final products
available to the ultimate consumers within the economy. Well defined distribution
channel and supply chain will be developed for the same (Berggren, Magnusson and
Sushandoyo, 2015).
32
Illustration 4: Value chain analysis
(Source: Morato, 2013)

 Marketing and sales: The marketing and promotional aspects of the business will be
efficiently managed and regulated by the business unit. Both traditional and modern
aspects will be used. Tele-advertising, direct marketing, online marketing and
sponsorship will be adopted by the business unit. Service: The company will provide installation and after sales services to the consumers
in an effective and well defined manner.
Support activities: Infrastructure of firm: The company will focus on developing a significant organizational
infrastructure which will define the roles and responsibilities of every employees in the
business. Also the physical infrastructure of the business will be technically advanced
and updated. Human resources: The company will manage a strong and competitive team of
employees in the business. OES will hire technically qualified engineers and market
experts for resolving business issues (Martins, Rindova and Greenbaum, 2015). Technology Development: The production and organisational functions of the business
will adopt modern means of technology which will help the business unit in attaining
high and well defined growth measures within the market. Procurement: The concept of procurement can be defined with perspective of attaining
quality material from the suppliers. OES focuses on manufacturing and selling the solar
panels to the household consumers. The procurement aspects will be managed by
developing a strategic partnership with the suppliers in the market.
4.2.3 Swot analysis
This section of the study will focus on developing an extensive and well defined means
of analysis regarding the strengths and weaknesses of the business for attaining high and well
defined demand within the market. SWOT analysis of OES is mentioned below:
Strength
 High potential product to enhance sales
 Low market competition
 Quality ascertained product Technically advanced strategies to enhance sales in the market.
Weaknesses
33

 Low brand identity
 High cost of production
 Rigid legal framework
 Unrecognised national culture for the business Low market knowledge
Opportunities
 High market potential
 Potential product Low competition in the market
Threats
 Legal issues in the economy
 Restrictive policies High and significant cost of production in the market.
4.2.4 Porter 5 force analysis
Competitive analysis of the business plays a significant and well defined role in
enhancing the business growth and developments aspect of the company. It helps in evaluating
the competitive position of the business in the stated market thus to enhance growth and
development measures of the business unit. Porter five force analysis will help the company in
analysing the same.
34

 Threat of new entry: Production and installation of solar panels demand high cost of
investment for the business unit. Moreover enhancement of product knowledge and
market is also demanded. Threat of new entry will thus have a low impact for OES in
Saudi Arabia. Threat of substitute: Saudi Arabia is developing the solar energy market potential in the
market. The country has few market players. Moreover government support for the
business has helped companies in developing demand in the market. However the major
operational aspects of the business is focusing on the corporate sector. National solar
system which deal in the same aspect in he country (Parks, Olson and Bokor, 2015). OES
35
Illustration 5: Porter five force analysis
(Source : Kraten, 2010)

will expand the operations National Solar system which currently is dealing in corporate
sector to enhance the market sales in the economy. Hence threat of substitute for OES is
moderate in Saudi Arabia at the p[resent moment. Suppliers power: Production of solar panels demand effective raw material by the
business units. Suppliers plays a significant role in attaining the stated needs within the
market. The supplier's power for enhancing sales and growth in the market will be
moderate as raw material demanded for solar panel production are not exclusive. Hence
companies can easily switch to other supplier if one enhance cost of material. Buyers power: The buyers power in Saudi Arabia is low as the the organisation has low
market competition and the impact of the same can be significantly analysed by
evaluating the market competition in the economy. Competitive rivalry: The solar energy industry in Saudi Arabia is an emerging and
developing economy as the country is widely focusing on enhancing the market segment
to create high and well developed demand in the economy. The competitive rivalry
within the industry for OES is low as the company is dealing in the growing market.
4.2.5 Generic strategies for competitive advantage
Oracle energy solution will develop a well defined market in Saudi Arabian economy in
order to enhance sales and develop high market sales within the economy. Managing cost,
focusing on specific needs of consumers and providing differential products are the measures
which help companies in developing an edge within the economy. Application of the following
model will help in analysing the technical aspects for developing competitive advantage for
OES.
36

 Cost leadership: Oracle Energy solution focuses on establishing the plant for
manufacturing PV solar panels for the consumers and attaining substantive demand
within the economy. In order to ensure growth and development aspects within the
economy the company will focus on attaining cost leadership in the market. The
organisation will attain the raw materials and products from local traders. Moreover it has
also been analysed that labour cost in the market is low. This will help the business in
minimising production cost and offering products at competitive prices. Differentiation: OES will offer a portfolio of different products as per the individual
consumer needs and requirement. Solar panel needs of the business will be attained as per
the technical growth and requirement in the individual business unit. It will create a
significant impact on the demand of the products and services in the market.
 Focus on Household market: OES will focus on the niche market of household segment.
The products will specifically target on the household consumers. The organisation thus
37
Illustration 6: Porter Generic strategies
(Source: Martin, 2002)

will develop project plans and marketing measures as per the target market. OES
analysed that household market in Saudi Arabia has high potential for growth and
development which will help the company in attain significant success in the economy.
38

CHAPTER 5 THE BUSINESS PLAN
5.1 Overviews of the plan
Oracle Energy Solution is the energy company which is currently focussing on
developing solar panel demand for household consumers of Saudi Arabia. The company will
develop a manufacturing plant in Rihad to produce products as per the consumer needs and
demands. OES will manufacture polycrystalline solar panels in Saudi Arabia to develop market
sales and growth aspects in the economy. The company will be privately owned managed. The
company will establish a small size business unit in which will gradually expand to different
parts of Saudi Arabia. The main aim of the business unit is to analyse and attain the energy needs
of culturally diverse consumers of the country by offering them energy efficient and cost
effective aspects of power. The mission of the business will be attain individual consumer needs
of consumers, offering them high quality products by successfully associating with employees,
suppliers and government of the country.
5.2 Products and service
The company will offer wide range of products and services to its consumers. This will
help the company in attaining high and well defined growth measures within the market. The
consumers will be offered variety of products and services in accordance to the needs and budget
aspects on the buyers. The company will manage the quality aspects in the market in order to
develop a well defined brand identity in the economy. The product range of the organisation will
include:
 Rooftop installation panels: This will provide an overall energy solution for the
household by providing solar energy for powering up the homes.
 Solar water pumps: A customised option which offers a cost effective alternate to
conventional water pumping systems.
 Solar home light set. Solar energy operated products and which helps the business unit in
attaining high and valuable growth aspects in the market.
 Solar inverters: Energy saving inverters operated through solar panels to enhance power
suspension in the household.
39

 Solar PV module: Polycrystalline solar panels to process and develop solar energy
products and devices for household consumers.
Solar panel sales and installation demands effective consultation and design aspcst to understand
the individual needs and demands of the consumers and develop services accordingly. For
enhancing the market sales the company will offer a wide range of services to its consumers.
OES will offer the following services:
 Consultation and design: OES will provide Engineering Study, Site Survey, Cost
Analysis and Planning of new construction plans as well as existing structure
 Supply and installation: Analysing and evaluating the performance of every product and
system installed
 Operation and inspection: An Engineer will inspect each system installed to verify
that it is fully functional and it passes final inspection by local authorities.
5.3 Marketing plan
Marketing and promotion is one of the crucial and most significant aspects of attaining
the business growth and development aspects for the company in the selected market. The
marketing plan of OES has been discussed and evaluated in detail as below:
Competitive analysis
Saudi Arabia is a technologically advanced country. The demand for solar energy
products and services is increasingly rising in the country which has developed a significant
impact on the business growth measures. The solar energy industry is developing within the
nation. The country has established large solar energy producing plants for industrial and
corporate sector however household sector of the country still remains unexplored. Oracle
Energy solution will offer wide range of services to the household consumers in Saudi Arabia.
The level of competition in the country is significantly low. This will help the company in
attaining high and well defined growth aspects in the economy.
Segmentation, targeting and positioning
STP analysis is the basic aspect of marketing planning for the business unit. Oracle
Energy solution will develop a well defined marketing plan for the company in order to attain a
significant growth aspects in the market.
40

Illustration 7: STP analysis
 Segmentation: This aspect of marketing focuses dividing the vast market into small
potential market size to attain high and valuable business results. OES will segment the
market on demographic (Family size and income) and psychographic (Life styles and
social class) aspects which will help the business in attaining high and valuable impact on
the business. Targeting: Targeting will help the company in developing marketing plan as per the
target consumers. OES will adopt undifferentiated marketing for the consumers. The
company will target overall household consumers and develop sales and promotional
plans accordingly. Positioning: OES is focusing on establishing an quality ascertained brand identity within
the economy. The company will establish the brand identity on the basis of service
differentiation in the economy. This will help the company in attaining high sales while
offering value for money to the consumers.
Marketing mix
The marketing Mix of OES will be as follows: Product: OES will ensure that the product is quality ascertained and effective which help
the companies in developing an effective brand identity. The products range will be high
and customised options as per budget and area will be offered in the market.
41

 Place: The manufacturing plant of the business unit will be established in Rihad. OES
will adopt selective distribution strategy in Saudi Arabian market to enhance sales and
develop a quality ascertained brand image for the business. The company will open outlet
in Rihad where all products will be sold and offered. Price: The company focuses on middle income employees of the country hence the price
range for the products will offer medium to high range products as per the needs and
demands of buyers in the market.
 Promotion: Marketing and promotion will be crucial aspects of the business. Traditional
and modern means of promotion will be adopted. Sales promotion through coupons and
discounts, personal selling, direct marketing, online advertisement, social media
marketing, television advertisement and consumer relationship will be commonly
adopted measures by the business unit.
5.4 Plan of sales
The feasibility of the business is directly related to the sales plan of the company which
helps the business unit in attaining high and valuable growth measures for the employees. The
sales aspect of the company will be developed in an effective and significant manner for the
business unit. The sales plan of the company has been discussed henceforth.
Rihad is one of highly populated and technologically advanced company which consist of
significant urban population. The company will focus on generating high sales in the city at
initial stage where direct selling and marketing measures will be adopted to enhance knowledge
about products and services offered. Moreover promotion of product will play a significant role
enhancing product knowledge and demand in the market. Sales force from local market will be
hired by the company to enhance product knowledge and growth in the market.
5.5 Proposed plan of action
The project plan which will be carried out to attain the business objectives for enhancing
organisational sales is discussed henceforth.
Task Activities Weeks
1 Undertaking market survey 4
2 Development of business plan 6
3 Evaluating and attaining financial requirements 2
42

4 Infrastructure development 2
5 Attaining physical resources 4
6 Purchasing material needed 3
7 Attaining human resources for the business 2
8 Establishment of physical store 1
9 Marketing and promotion 5
10 Targeting the potential buyers 3
Activity/
Months 1-4 5-12 13-
17
18-
21
22-
27
28-
30
31-
34
35-
40
41-
43 44-48
Undertaking
market survey
Development of
business plan
Evaluating and
attaining
financial
requirements
Infrastructure
development
Attaining
physical
resources
Purchasing
material
needed
Attaining
human
resources for
the business
43

Establishment
of physical
store
Marketing and
promotion
Targeting the
potential
buyers
The above mentioned plan demonstrate the proposal for the new business venture. This
provides a detailed analysis of different activities that the business will undertake in order to
attain well defined business objectives within the economy. There is greater role of the
organization to comply with the series of actions so that it can sustain in the market for longer
course of time. The plan starts with conducting of the market survey at initial level and ends with
targeting potential buyers for the business unit.
The business unit will attain well defined growth aspects in the market at the initial stage
market research will help the business in analysing the market trends in Saudi Arabia and
consumer demand as well. After that business plan was drafted and constructed to develop a
feasible study for new venture. It helped in analysing the financial aspect of the business which
was 2500000 SAR. Bank loan was attained to meet the financial need of the business. After that
infrastructural needs will be attained which will then be followed by physical resource
attainment which includes machinery and vehicles. Raw material acquiring is another significant
aspect of the study which helps in attaining business needs.
The company will produce and sell polycrystalline solar panels in the market. The
material for the same will be attained from the local traders to manage the cost of operations. The
staff requirement will be attained simultaneously to meet the business needs which will then be
followed by establishing physical store for the business. Marketing and promotion aspects will
be crucial to attain high and significant market demand in the economy. On the basis of the
overall plan targeting activities for the business will be carried out for the companies.
5.6 Personnel plan
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Table 5: Employee need assessment
Employees Number
Finance executive 1
Marketing executives 1
Sales person 1
Inventory managers 1
Technical employees 2
Relationship managers 1
Operational employees 2
Table 6: Manpower planning for OES
Employees Year 1 Year 2 Year 3 Year 4 Year 5
Finance executive 11000 11000 11500 12000 12500
Marketing executives 12000 12000 12500 13000 13500
Sales person 8000 8500 9000 9000 10000
Inventory managers 5000 5330 5500 6000 6000
Technical employees 3000 3000 3110 3325 3500
Technical employees 3000 3000 3110 3325 3500
Relationship managers 12000 13000 13000 13000 13000
Operational employees 3500 3500 3500 3500 3500
Operational employees 3500 3500 3500 3500 3500
TOTAL 61000 62830 64714.9 66656 68656
Oracle Energy solutions will demand a significant team of technically advanced team of
employees which will help the company in attaining high and well defined aspects of growth
within the economy. OES focuses on developing and generating the market for solar panels
within the household consumers and develop well defined demand in the market. This will help
45

the business in attaining high and well defined growth measures in the economy. The number of
employees demonstrated above are sufficient for the sake of carrying out the present business
plan. In case of expansion of the firm there would requirement of more number of helpers in
future course of time. The proprietor of the company possess significant experience in the field
which will help the company in enhancing growth and success measures in the market.
5.7 Financial Summary
Table 7: Financial forecast for OES
(a) CAPITAL
FUNDING 2,500,000
Loan repayments
(b) SALES FORECAST
Sales Value 1,000,000 1,050,000 1,102,500 1,157,625 1,215,506
(c) COST OF GOODS 500,000 525,000 551,250 578,813 607,753
(d) EXPENSES
Premises 20,000 20,000 20,000 20,000 20,000
Wages 61,000 62,830 64,715 66,656 68,656
General Expenses 60,000 61,800 63,654 65,564 67,531
Interest
Market survey 2,000
Preliminary expenses 10,000
Lease payments 7,000 7,000 7,000 7,000 7,000
Dividends
(e) FIXED ASSETS
capital
cost
Building
Furniture 8,000
Vehicles 40,000
Plant and Machinery 30,000
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total 78,000
The above table represents the financial aspects of the start-up business operations. The table
clearly reflects that that OES will invest 2,5000,000 SAR as initial capital of the business. The
expected sales of the business are reflected as per the market research assumptions. The above
table reflects that the sales value of five year is expected to rise on a continuous basis. The sales
of solar panel in household section will be 1000000 SAR which by 2021 is expected to rise to
1215506 SAR. Associated expenses are also mentioned in the table. The assets requirements of
the start up venture has also been revealed in the table which will help in clearly analysing the
capital assets expected to start the venture.
Table 8: Financial plan and feasibility
(a) SALES
FORECAST
Year 0 1 2 3 4 5
(a) Sales Value
1,000,0
00
1,050,0
00 1,102,500 1,157,625 1,215,506
(b) Cost of goods 500,000 525,000 551,250 578,813 607,753
ALL
VALU
ES IN
SAR
HERE
AFTER
(2) CASHFLOW
FORECAST
Preop
Year 0 1 2 3 4 5
CASH INFLOWS
47

Cash from Sales
1,000,0
00
1,050,0
00 1,102,500 1,157,625 1,215,506
Directors loans 0
Share capital 2,500,000
Other external
finance/loans
Other cash inflows
TOTAL CASH
INFLOW 2,500,000
1,000,0
00
1,050,0
00 1,102,500 1,157,625 1,215,506
CASH
OUTFLOWS
Payments for
materials 500,000 525,000 551,250 578,813 607,753
operating expenses (
) 0
Premises (rent, rates) 20,000 20,000 20,000 20,000 20,000
Wages and salaries 0 61,000 62,830 64,715 66,656 68,656
General expenses 0 60,000 61,800 63,654 65,564 67,531
Interest and bank
charges payable 0 0 0 0 0 0
Lease payments 7,000 7,000 7,000 7,000 7,000
Corporation Tax 171,643 96,530 102,906
Market survey costs 2,000
Other preliminary
expenses 10,000
capital expenditure
Plant and other 78,000
48

capital expenditure
financing
repayments
Loan repayments 0 0 0 0 0
Dividends 0 0 0 0
TOTAL CASH
OUTFLOWS 117,000 648,000 676,630 878,261 834,563 846,846
Cash flow summary
NET CASHFLOW
FOR PERIOD 2,383,000 352,000 373,370 224,239 323,062 368,660
OPENING CASH
BALANCE 0
2,383,0
00
2,735,0
00 3,108,370 3,332,609 3,655,671
CLOSING CASH
BALANCE 2,383,000
2,735,0
00
3,108,3
70 3,332,609 3,655,671 4,024,331
(3)
DEPRECIATION
SCHEDULE
Year 0 1 2 3 4 5
Building 0 0 0 0 0 0
Furniture 8000 7,200 6,400 5,600 4,800 4,000
Vehicles 40000 32,000 25,600 20,480 16,384 13,107
Plant and Machinery 30000 24,000 19,200 15,360 12,288 9,830
total book values (ie
net fixed assets) 78000 63,200 51,200 41,440 33,472 26,938
Annual
Depreciation
Land-0%
Building-4% straight
line 0 0 0 0 0
49

Furniture-10%
straight line 800 800 800 800 800
Vehicles - 20%
reducing balance 8,000 6,400 5,120 4,096 3,277
Plant & machinery-
20% reducing
balance 6,000 4,800 3,840 3,072 2,458
total annual
depreciation 14,800 12,000 9,760 7,968 6,534
(4) PROFIT AND
LOSS FORECAST
Year 0 1 2 3 4 5
Revenue 0
1,000,0
00
1,050,0
00 1,102,500 1,157,625 1,215,506
Cost of sales 0 500,000 525,000 551,250 578,813 607,753
Gross profit 0 500,000 525,000 551,250 578,813 607,753
Expenses/overheads
Premises (rent, rates) 20,000 20,000 20,000 20,000 20,000
Wages and salaries 61,000 62,830 64,715 66,656 68,656
General expenses 60,000 61,800 63,654 65,564 67,531
Interest and bank
charges payable 0 0 0 0 0
Lease payments 7,000 7,000 7,000 7,000 7,000
Depreciation 14800 12000 9760 7968 6534
Other expenses 12,000
50

Total
expenses/overheads 0 174,800 163,630 165,129 167,188 169,721
Profit before tax 0 325,200 361,370 386,121 411,625 438,032
Tax @25% 171,643 96,530 102,906 109,508
Profit after tax 325,200 189,728 289,591 308,718 328,524
Dividends 0 0 0 0
Transfer to reserves 325,200 189,728 289,591 308,718 328,524
ROEI 13% 8% 12% 12% 13%
The above table reflects that different financial aspects of the proposed plan of
implementing solar panels for household consumers in Saudi Arabia. The company is planning
to invest 2500000 SAR as initial investment amount. Expected sales of the business is to grow
by 5% each year which will help the company in attaining effective growth aspects till 2021.
Also ROEI has been rep[resented in the table in a clear manner which reflects that the business
will attain minimum of 8% returns each year which makes the venture a successful prospect in
Saudi Arabia.
5.8 Statement of likely risk and the ways it can be managed
There are number of risks that are associated with this business. Some of these risks are
as follows.
Strategic risk- It is well known fact that Saudi Arabia government delay its solar projects worth
8 million USD. The cost of production of solar energy us very high and Saudi government wants
to reduce it. It can be said that mentioned nation intends to produce solar energy but at low cost.
In this regard it is carrying out research and development projects. In some years Saudi Arabia
will be able to generate solar power at low cost. This is one of the main strategic challenge for
the firm. This is because firm current focus is on opening of business not on carrying out
research and development projects. In some years Saudi government will be able to generate
solar power at low cost than firm. Hence, in future proposed venture may face a lot of difficulties
51

in managing its market share. It can be said that this is big strategic challenge for the firm. In
order to manage same proposed venture must allocate funds separately for carrying out research
and development activities. By doing so firm can bring itself in competitive position in
comparison to government company.
Financial risk- Loans are available at two rates fixed and floating interest rate. OEC can take
loan at fixed interest rate from banks. If flexible interest rates are lower than fixed rate then debt
can be taken at non static rate. By doing cost of finance can be minimized. However, there is a
risk and it is possible that flexible interest rate become greater than fixed interest rate. If this will
happen then cost of finance will increase for the firm. In order to solve this problem investment
can be made in derivatives of debt and equity. By doing so loss faced in the debt can be offset by
profit that will be earned on derivative debt contract. In this way risk can be handled by OEC.
Operational risk- Mentioned type of risk arises in the business when things are not determined
clearly and there is lack of proper coordination among different activities of the firm. Due to lack
of coordination among the employees tasks can not be performed and strategies as well as tactics
can not be implement in proper way at the ground level. In order to handle operational risk in
OEC proper organisation structure will be developed under which roles and responsibility in
respect to each designation will be clearly defined. Moreover, all departments activities will be
interrelated to each other. By doing so it can be ensured that operations will be performed
smoothly at the workplace.
5.9 Critical factors for success
This is a very significant and crucial aspect of the business plan and feasible study of the
project. It focuses on analysing the factors which widely and significantly contributes in the
success and growth of the business unit. OES focuses on developing a significant market for
solar panels in Saudi Arabia. The target consumers of the company will be culturally diverse
household consumers. The critical success factors for the business are enumerated henceforth. Product quality and lifespan: product quality and performance is the significant and well
defined impact of the business success within the economy. It will help the business unit
in attaining high and significant growth aspects within the market. This will help the
company in attaining high trust and demand for the products. As solar panel in household
sector product performance will be another crucial aspect for he business development.
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 Consumer service: Being a new venture in the market consumer service is a crucial
aspect for enhancing product demand growth in the economy. Effective services will help
the consumers in attaining knowledge and usability for the product. It will also help the
company an effective measure to attain success in the economy.
 Consumer relationship manager: The key aim of the business is to enhance demand and
sales within the economy. Consumer relationship aspect for the product range will help
the business in developing high demand and promotional aspects for the business unit. It
will also create an insignificant impact on product sales and growth within the economy.
Thus the business unit will focus and on generating high and significant sales within the
market for the business unit.
53

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APPENDIX
A.1 Basic requirements as per family size
A.2 Solar panel functioning
56