Business Proposal for GANK: Analysis, Strategy, and Financials

This report provides an analysis of the product pricing, target market, competitive position and all other marketing activities that are associated with the business in detail. It concludes stating the key operational issues as well as the startup costs of the business group.

Running head: BUSINESS PROPOSAL
BUSINESS PROPOSAL
Name of the student
Name of the University
Author Note

1BUSINESS PROPOSAL
Executive Summary
The aim of this report is to form a business proposal for GANK, a company which is
concerned with the creation of flower pots and other decorative items using non
biodegradable products. This report provides an analysis of the product pricing, target
market, competitive position and all other marketing activities that are associated with the
business in detail. It concludes stating the key operational issues as well as the startup costs
of the business group.

2BUSINESS PROPOSAL
Contents
Company Overview...................................................................................................................3
The Problem Statement..........................................................................................................3
Mission Statement..................................................................................................................4
Goals and Objectives..............................................................................................................4
Products and Services Summary............................................................................................4
Analysis and Strategy.................................................................................................................5
Industry Analysis...................................................................................................................5
Market Analysis.....................................................................................................................6
Target Market.........................................................................................................................7
Strategic Positioning and Competitive Advantage................................................................7
Marketing...................................................................................................................................8
Brand Image...........................................................................................................................8
Product/Service Description...................................................................................................8
Pricing Description.................................................................................................................8
Location/Distribution Description.........................................................................................8
Promotional Description........................................................................................................9
Management and Human Resources..........................................................................................9
Management and Staff team...................................................................................................9
Advisors and Consultants.......................................................................................................9
Summary of salary, wage and benefits..................................................................................9

3BUSINESS PROPOSAL
Operations................................................................................................................................10
Key Operational Issues........................................................................................................10
Preliminary Financials.............................................................................................................10
Start Up Costs......................................................................................................................10
Break-Even Analysis............................................................................................................10
References................................................................................................................................11
Appendices...............................................................................................................................13
Figure 1: Summary Statement..............................................................................................13
Figure 2: Break-Even Analysis............................................................................................13

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Company Overview
The company GANK had been started by Gurpreet Singh, Alisha Dimma, Navjot
Singh and Khushpal Singh, and they have been in business for almost 5 years. They can be
considered as a very new and recent business group that deals with using biodegradable items
to create plastic pots and other decorative and customizable items at a cheap price.
The Problem Statement
The company GANK has been conducting business for almost 3 years and is still very
recent to the market. It is due to this reason that the total number of consumers at present is
quite low and hence sales have been low and unsatisfactory. Therefore, the group wishes to
expand its business operations and reach a wider consumer base than it is currently operating
on.
Mission Statement
The company GANK is mainly focused with providing environment friendly products
to its consumers. The company converts waste into decorative items and lays stress on the
preservation of the environment. The company wishes to extend its range of products and
services that it provides to the consumers and, increase its overall annual profits.
Goals and Objectives
The main goals and objectives of the company are as follows:-
 To increase the overall sales of the company by 50% in the coming months,
 To increase its current consumer base and target other areas and potential consumers,
 To provide environmental friendly products to its consumers, made out of recyclable
waste and reduce the impact of pollution and waste on the environment,
 To provide unique decorative items to its consumers, and lastly,

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 To provide products based on the choice or preferences of the consumers and
customizing accordingly.
Products and Services Summary
The company is concerned with the creation of plastic pots. They are made out of
plastic bottles and waste, which are non-biodegradable and have adverse affects on the
environment. The products being made out of plastic are breakage proof and can be either
used as a decorative item or as containers for storing other items. The plastic pots are filled
with stones, marbles, sand or mud depending on the customer choice. The customers may
also provide their own plastic items for customization to the company. The company also
provides options to its customers regarding the type of color that is to be used, the nature of
the product and its application and various other options.
Analysis and Strategy
Industry Analysis
At present, there are around 500 plastic recycling companies in North America and
they are in direct competition to the GANK Company. The main problem that may arise is
the sourcing of large number of plastic items that have been used before and need to be
cleaned and refined at an effective cost that would allow the company to operate at a
competitive cost (Collis & Hussey, 2013).
The Canadian Plastic Industries Association (CPIA) supports the plastic recycling
business and the industry currently has thousands of employees under its payroll. Almost
79% of the plastic waste is reported to have been reclaimed by the plastic recycling industry,
which reveals that plastic recycling is a popular practice in Canada and the market is
currently in its growing phase. It has been observed that almost 322 million kg of plastic has

6BUSINESS PROPOSAL
been collected for recycling purposes (Nguyen, Stuchtey, & Zils, 2014). Currently the
industry is only focused on conducting business within North America and exports are not yet
conducted on a large scale basis (da Cruz, et al., 2014). It has been observed that the plastic
industry has contributed to 6.5% rise in the GDP of Canada (Huysman, 2017). It has been
observed that major companies have been acquiring medium and small sized companies for
the purpose of gaining access to their consumer base (Coelho & de Brito, 2013).
The major players of the plastic recycling industry are:-
 Petco in Montreal, Canada
 Klockner, VA
 Kama, Pittsburgh, PA
 Advance Extrusion, Becker, MN
Market Analysis
The market analysis of the GANK Company is conducted regarding the following
factors:-
 Political- The GANK Company falls under the green technology line of policy. The
business conducted by the company has no adverse impact on the environment and
also serves to reduce the generation of harmful waste in the environment, and this
nature of business is supported by the CPIA. Therefore, the company does not face
any political problems in its business operations (Ohnishi, et al., 2016). The company
is also associated with internal business within Canada and so remains unaffected by
international political conflicts.
 Economical- Canada has the presence of a mixed economic system and the country is
placed at the 10th position in terms of its nominal GDP and 17th position in terms of

7BUSINESS PROPOSAL
GDP by PPP on the global ranking. Therefore, the economic conditions of the country
are favorable for the GANK Company to conduct its business here.
 Social- The business conducted by the company is of great significance to the society
since, it addresses the issue of degradation of environment and plans to control the
level of impact on the environment (Man, Naidu & Wong, 2013). The company
makes use of plastic wastes and items and recycles them into new products,
promoting sustainable development and also being responsible towards increasing the
awareness of the impact of non biodegradable waste on the soil to the common people
(Ferrell, Fraedrich & Ferrell, 2013). Apart from this the company is involved in CSR
activities as well, donating 95% of its earnings to the sexual assault centre of
Edmonton.
 Technological- The products sold by the company are mostly hand made in nature.
Therefore, the use of technology is very limited or almost absent. Additional
technological costs therefore are very limited (Buekens & Yang, 2014).
 Environmental- The company is focused on the improvement of the environment
and also reducing the plastic waste accumulated in it. Therefore, it can be said that the
business conducted by the company has no adverse effects on the environment and
rather focuses on its sustainability and development of the environment (Zhang &
Chen, 2013).
 Legal- The company needs to operate keeping in mind the policies imposed by the
Canadian Government regarding the recycling of plastic waste. However, since the
products it sells are environment friendly and have been made from accumulated
plastic waste, therefore not many strict laws are imposed on the company
(Dalhammar, 2016). However it must follow the protocols of cleaning and refining
the plastic waste before being recycled into a new product. Similar to the political

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factors, the company remains unaffected by changes in international legal policies and
taxes since its business only takes place domestically.
Target Market
The products that are sold have no specific target consumers. However, the company
targets individuals from the age of 15 years to 50 years regarding all its products. It also
emphasizes on targeting the female population more as they are inclined to buy decorative
items more than males.
Strategic Positioning and Competitive Advantage
The company has kept its product pricing at a very low and affordable range. It
provides recycled products, which eliminate the issues regarding waste disposal (Gandy,
2014). Apart from this, the company also customizes products for the consumers according to
their choices, wants and needs, therefore fulfilling the requirements of the consumers and
satisfying their needs. The business conducted can be said to be small scale in nature and
would not be affected by large corporations and competition is also low (Bansal &
DesJardine, 2014).
Marketing
Brand Image
The company at present enjoys a brand image of being an eco-friendly company that
produces and sells environment friendly products. Therefore, the goodwill of the company
has the potential to see a positive growth in the future (Kumar & Christodoulopoulou, 2014).

9BUSINESS PROPOSAL
Product/Service Description
The products are made from plastic wastes and are transformed into decorative items.
They are in the form of plastic posts, wall hanging décor, plastic containers and others. It also
provides customized products according to the customer preference.
Pricing Description
The plastic pots are priced at $5 and the other items are priced at $2 per item. The
price of customizable items may vary from $6 to $10.
Location/Distribution Description
The company at present is concerned with domestic/internal business within Canada.
The products are distributed via the staff and the operations of the company are not large
scale in nature.
Promotional Description
The company has recently announced the scheme of providing a free item on the
purchase of two items. Apart from this it also states that 95% of its accumulated income is
contributed to the sexual assault centre in Edmonton. The company also has the presence of
an Instagram and Facebook page where the pictures of new products are posted from time to
time for promotional purposes. Advertisements in broadcast or print media is absent in case
of the company.
Management and Human Resources
Management and Staff team
The GANK Company consists of 4 owners who serve as the management heads.
Being a small-scale company, the staff comprises of 10 members.

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Advisors and Consultants
The owners/managers act as the advisors as well as consultants for the company, with
initial discussions with members of staffs regarding implementation of new decisions.
Summary of salary, wage and benefits
The salary for the staff members is mostly target based depending on the number of
sales they have secured. Apart from this, the company donates almost all of its income and
hence, the salary of the employees is quite low amounting to $100. Most of the staff members
work part time in the organization and hence there is no requirement for providing additional
benefits and incentives.
Operations
Key Operational Issues
The key operational issues of the company are as follows:-
 It lacks in adequate number of staff.
 It donates almost all of its income and therefore the costs of operation are difficult to
recover.
 The company lacks proper promotional activities.
 The low scale of operations of the company threatens its survival in future business
operations.

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Preliminary Financials
Start Up Costs
The start up cost of the company comprises of a 20% return in investment.The
revenue generated in the first year of business is $1,1236 and cost of goods sold in year 1 is
$247. The tax is calculated annually at 30% and in case of long term debt being used to
finance operations, the loan value is $1500. The total startup expense is $1350 and the total
startup funds is $1750.
Break-Even Analysis
The break-even analysis reveals the actual break even period for the company
occurring at 4 years and 1 month.

12BUSINESS PROPOSAL
References
Zhang, H., & Chen, M. (2013). Research on the recycling industry development model for
typical exterior plastic components of end-of-life passenger vehicle based on the SWOT
method. Waste management, 33(11), 2341-2353.
Buekens, A., & Yang, J. (2014). Recycling of WEEE plastics: a review. Journal of Material
Cycles and Waste Management, 16(3), 415-434.
Ohnishi, S., Fujii, M., Fujita, T., Matsumoto, T., Dong, L., Akiyama, H., & Dong, H. (2016).
Comparative analysis of recycling industry development in Japan following the Eco-Town
program for eco-industrial development. Journal of Cleaner Production, 114, 95-102.
Man, M., Naidu, R., & Wong, M. H. (2013). Persistent toxic substances released from
uncontrolled e-waste recycling and actions for the future. Science of The Total
Environment, 463, 1133-1137.
da Cruz, N. F., Ferreira, S., Cabral, M., Simões, P., & Marques, R. C. (2014). Packaging
waste recycling in Europe: is the industry paying for it?. Waste management, 34(2), 298-308.
Kumar, V., & Christodoulopoulou, A. (2014). Sustainability and branding: An integrated
perspective. Industrial Marketing Management, 43(1), 6-15.
Ferrell, F., Fraedrich, J., & Ferrell, L. (2013). Business ethics and social
responsibility. Mason, OH: Cengage.
Huysman, S., De Schaepmeester, J., Ragaert, K., Dewulf, J., & De Meester, S. (2017).
Performance indicators for a circular economy: a case study on post-industrial plastic
waste. Resources, Conservation and Recycling, 120, 46-54.

13BUSINESS PROPOSAL
Coelho, A., & de Brito, J. (2013). Economic viability analysis of a construction and
demolition waste recycling plant in Portugal–part I: location, materials, technology and
economic analysis. Journal of Cleaner Production, 39, 338-352.
Nguyen, H., Stuchtey, M., & Zils, M. (2014). Remaking the industrial economy. McKinsey
Quarterly, 1, 46-63.
Gandy, M. (2014). Recycling and the politics of urban waste. Routledge.
Dalhammar, C. (2016). Industry attitudes towards ecodesign standards for improved resource
efficiency. Journal of Cleaner Production, 123, 155-166.
Bansal, P., & DesJardine, M. R. (2014). Business sustainability: It is about time. Strategic
Organization, 12(1), 70-78.
Collis, J., & Hussey, R. (2013). Business research: A practical guide for undergraduate and
postgraduate students. Palgrave macmillan.

14BUSINESS PROPOSAL
Appendices
Summary Statement
Sources of Capital
Owners' and Other Investments
$
200
Bank Loans 1,500
Other Loans -
Total Source of Funds
$
1,700
Startup Expenses
Bldgs / Real Estate
$
450
Leasehold Improvements -
Capital Equipment 500
Location / Admin Expenses -
Opening Inventory -
Advertising / Promo Expenses 100
Other Expenses 300
Total Startup Expenses
$
1,350
Figure 1: Summary Statement
Net income (loss)
-
$1,364.88 $307.88 $322.54 $347.55
$383.9
0
$433.2
6
Cumulative income
-
$1,057.00
-
$734.46
-
$386.91 -$3.01
$430.2
5
Positive Cash Flow? FALSE FALSE FALSE FALSE TRUE
Undiscounted break even
year 5 years
Actual break even period 4.01 years
Figure 2: Break-Even Analysis