Business Plan Analysis and Recommendations

This assignment focuses on analyzing a provided business plan and offering strategic recommendations for improvement. Tasks include developing a competency framework aligned with the plan's goals, identifying key strengths, weaknesses, opportunities, and threats (SWOT analysis), and recommending specific actions to enhance the plan's effectiveness.

Running head: ENGINEERING MANAGEMENT BUSINESS PLAN 1
Engineering Management Business Plan
Name:
Institutional Affiliation:

ENGINEERING MANAGEMENT BUSINESS PLAN 2
Engineering Management Business Plan
Currently, plastics have become essential item in the manufacturing industries and in
homes, together with increased consumer understanding about the solid waste recycling, has led
to an increase of demand for the plastic products. One of the most collected plastic materials
collected for recycling is the Polyethylene terephthalate (PET). It originates from post-consumer
beverage and water bottles. Due to the high demand of recycled resins and the availability of
market for the plastic packaging markets, the founder of the Replay Plastics Company decided to
put up a polyethylene terephthalate cleaning and refining plant. They decided to locate the plant
in western United States where there are no such companies. On the other hand, Application
Technologies Inc. is a company that is looking forward to produce packaging technologies that
will be able to better effectiveness and simplicity in topical consumable products. It is planning
to use Appli-K Pouch packaging technology. Appli-K Pouch is a usable patent-pending
packaging that has built-in applicator that uniquely separates it from the previous packaging
technologies. (Operations Strategy for Application Technologies Inc., 2017). Application
Technologies Inc. company is mainly driven by the unique opportunities offered by their first
packaging technology. The company believes that their product will solve all the problems that
other pouches have not been able to tackle. However, for these two companies to be successful,
they must have a business plan. Business plan is a written guide for a business that outlines its
objectives and details on how it plans to achieve those objectives. It outlines the structure, the
products, customers, financials, and the growth potential of the business. Therefore, this paper
intends to produce a report that analyzes and evaluates Replays Plastic Company and
Application technologies Inc. business plans.
Three Strongest Components

ENGINEERING MANAGEMENT BUSINESS PLAN 3
Some of the three strongest components of Relay Plastics company business plan include
the company’s Management team, market analysis, and financial plan. When referring to the
Relay Plastic management team, the company has the most experience personnel in relation to
recycling, manufacturing, and marketing of plastics. Because of such experienced employees, the
company is better positioned to compete with others as quality and efficiency is concerned
(Zhouying & Ying, 2011). Additionally, the company has done an extensive market analysis.
Their research has shown that there is a strong demand for recycled plastics and that major users
of plastic packaging have started incorporating some recycled plastic content in their products;
hence, increasing market for recycled plastics. Apart from high demand, the business has also
been located in a strategic location where there are no proximity compactors. It is located in
Western United States away from Northern 16 major recycling companies (Plastics Recycling,
2017). Moreover, the company has put a superior financial strategy by using important financial
assumptions, break-even analysis, and the projected profit and loss accounting. Besides, it has a
well-planned projected cash flow, which can help them in arranging how to pay for the
company’s long-term loan.
On the other hand, Application Technologies Inc. company three strongest business plan
components include financial projection, risk management and reduction, and management team.
The company has put in place a commendable financial projection. Even though the product is
new, the company focuses a self-sustaining operation with positive cash flow that should occur a
year later after the initial production (Operations Strategy for Application Technologies Inc.,
2017). The company has a positive projection of superior sales within a period of four years of
which they also expects profit of $11.6 million and $20.8 million cash on hand. Besides, the
company has also laid down strategic risk management and reduction plans through the use of

ENGINEERING MANAGEMENT BUSINESS PLAN 4
risk factors such as insurance among others. They have also made sure that all of their products
and ingredients have been approved by the FDA. Other than financial projection and risk
management, Application Technologies Inc. also has competent management team that
comprises of seasoned professionals with significant experience in all elements needed for the
success of Application technologies. For example, Johann Verheem who is the CEO and Vice
President of New Product Development has twelve years working experience in developing such
products.
Three Weakest Components
Some of the three weakest components on the Relay Plastics Business plan are the
competitive comparison, potential conflict, and financial summary. When comparing Relay
Plastics with the other plastic manufacturing and recycling companies, it is evident that it offers
its product at a cheaper price (Plastics Recycling, 2017). Being that its products are cheaper,
customers might be of the opinion that they are of low quality and might opt for going an extra
cost to acquire quality product (Ludwig, 2001). The price should have remained the same as of
its competitors being that it is located far away from the major recycling companies and that its
products are of high quality due to its experienced personnel behind the production. Other than
that, the potential problem that may arise is the conflict of interest. Sam McGuire being one of
the executives and has been awarded tendering of acquiring equipments from Company A and
yet he is a principal stakeholder in the same company. Moreover, under financial summary, it is
evident that the company is seeking almost half of its financial support from a single source.
What can happen to company in case it fails to meet the agreement as stipulated in their contract
and decides to withdraw his support? This could lead to a major setback to the entire company. It
is because the company business plan lacks exit strategy.

ENGINEERING MANAGEMENT BUSINESS PLAN 5
On the other hand, the three weakest components of the business plan of the Application
Technologies Inc. Company include operational strategy, target markets and competition, and
investment and return. In the operational phase, the company main goal is to acquire the four
licenses for its operations; however, it is not able to have its labeling department within the
company. Having labeling department within the company could have helped to produce a
complete product without lying on the private labeling company. The private distributor could
have given the exclusive right to distribute the completed product, but not to function as one of
the departments of the corporation. Other than that, the Application Technologies Inc. is also
facing a direct competition R.P. Scherer Company that has sales of almost $ 700 million
(Operations Strategy for Application Technologies Inc., 2017). Therefore, it could have been
wise thing for company to clearly make a different labeling of its products being their product
offers extra built in application. Being that the product is new; the company should have taken
the first step to educate the consumers though advertisement for it to compete with the rest of
companies that offers almost same products they produce. Moreover,
Ways of Improving the Business Plan
The two companies could improve their business plans by not hiding their weaknesses,
but instead address them. Most of the investors pick out the potential flaws in the business;
therefore, there is need for openness (Card, 2017). It is better for businesses to point out the
potential drawbacks and provide an explanation on how the company will overcome them. For
example, Relay Plastics has not put in place any exit strategy in case the investors wants to leave
the company before the end of the investment contract. On the other hand, Application
Technologies Inc. also has not fully explored ways through which the consumers shall know
more about their new product and new features.

ENGINEERING MANAGEMENT BUSINESS PLAN 6
It is also evident that the two companies have outlined their goals but have not factored in
the human resource. Defining goals should go in hand with a comprehensive employee-focused
management strategy, which makes an integral part of strategic management (Card, 2017). t. It
means that a company should analyze the major initiatives and translates them into reasonable
and workable goals. Moreover, the two companies should have looked a better way of keeping
their customers. The two business plans have not clearly mention the methods they intend to use
in keeping the already acquired customers. Therefore, I would be best for them to create a system
that they may use for getting and keeping customers for life.
Furthermore, it is vital for any business to focus on what it can control. For example,
Replay lies heavily on the low cost post-consumer PET bottles from a single company from
California without considering an alternative in case there happened to be high competition for
the same raw materials. High competition for the same raw materials can lead to higher price of
the materials; hence, affecting the production cost (Fox, 2010). It is therefore, vital for Replay
Plastics to avoid relying on a single source just for them to be on the safer side as raw materials
supply is concerned. It would be essential for Application technologies to improve in their
marketing strategy because of the stiff competition they are facing from various companies that
produce the same products. Therefore, the company has to make a clear distinct between what
they are offering from what others provide for them to succeed by performing thorough
consumer education.
Challenges and How to overcome them
There are various challenges that businesses face. These challenges may include paying
the loans, ability to keep customers, the economy, accountability, and increasing customer
purchases, handling health insurance, increasing sales and business development among others.

ENGINEERING MANAGEMENT BUSINESS PLAN 7
Getting customers may be easy but to maintain may prove to be difficult. It is therefore,
advisable for a business to build a network that will maintain the invariable ebbs and flows of the
business (Syrett & Economist Newspaper, 2007). Also acquiring financial support by the larger
businesses may not be hard, but hiring employees than can truly help the business to grow is a
major challenge. As a result, the company should give its employees a sense of wanting to build
and grow with it. It is important that the companies research what their employees want for them
to make enough profit that will enable it to pay its loans.
Additionally, the business should ensure that their financial projections have catered for
any economic instability. The biggest challenge facing businesses to day is awful economy. it is
not an easy thing to get new consumers and generate sale when the business and people are not
spending. It is the reason why a company needs to make its business different and better for
people to benefit from doing business with it than they cannot get from somewhere else. Besides,
the businesses that turn out successful are those ones with high performing employees, however,
the biggest impediment is lack of accountability (Van der Heijden, Selsky & Ramírez, 2008).
Therefore, it is vital for a company to employ with objective and quantifiable goals. The goals
they set for themselves define the outcome of what they are expected to achieve.
Lessons Learnt
The five lessons that have come out clearly from the two business plans include putting
audience your first, developing a brief plan, the plan should not be overrated, looking for a
strategic location, and having financial projections.
Firstly, the two companies have considered their consumers and the investors who are the
primary audiences. Therefore, they have written their plans putting in mind their audiences. For
example, Replay Plastics have shown that the business is lucrative by providing the evidence

ENGINEERING MANAGEMENT BUSINESS PLAN 8
from the companies in the Northern that are doing so well. The company has also outlined their
financially summary showing the sales amount, profit, and how much an investor will earn after
the first year of the business transaction. These projected incomes are meant to attract investors.
Replay Plastics also has affordable products that intend to use as the basis of customers
attraction. On the other hand, Application Technologies Inc. made sure that their Appli-K pouch
was unique and different from the other products offered by other company. They did this to
ensure that they get customers and investors.
Secondly, the two business plans shows that it is important to prepare a plan that is
simple and easy to analyze. It should cover the main points of the business, interesting to read,
and show that a lot of consideration was taken through the opportunity (Barrow, 2009). From the
two business plans, it is also evident that enough interesting plan attracts investors. Both the
plans have attracted external investors because they believed in the goals and the objectives of
the business as shown in the plan.
The third lesson from Replay Plastics and Application Technologies Inc. is that business
plan is a marketing document and should get lenders and investors exited. Although, the
intension should be to excite investors and customers, one needs to be careful not to load a
business plan with exceptional. It is not advisable to say that the company has the best
technology, world-class management team, among others (Holbeche, 2009). Quoting such
compliments without supporting facts can take away the credibility of the plan if at all anything
goes wrong. This is clear from how the two businesses have described their management teams.
The companies have described them as experience but not the best in the world. The fourth
lesson is that businesses can sell the same product but still succeed depending on where the
business is located. For example, Replay Plastics decided to locate their business in the Western

ENGINEERING MANAGEMENT BUSINESS PLAN 9
United States to avoid competing with the major companies that offer the same product in the
Northern United States. The last lesson is that with the right financial projections that are in line
with the company’s objectives are in place, the company could determine their cash flow as time
goes. With positive cash flow the business could manage to sustain its operations.
Competencies
Competencies are the integrated skills, judgment, knowledge and attributes the makes
people perform their duties as required. Therefore, defining set of competencies for every role in
the business will guide workers in knowing the kind behaviors required by the company to help
it meet its objectives (Turner, 2001). Some of these competencies that the two companies were to
demonstrate include:
1. Sufficient expertise
2. Recruitment and selection of new staff more successfully
3. Evaluation performance more efficiently
4. Identifying skills and competency cracks more successfully
5. Providing more customized professional development and training
6. Planning adequately for succession
The extent to which such competencies should have been demonstrated was through the
inclusion of the competency framework to the talent management program. Competency
framework is developed by collecting and combining competency information. Having
competency framework helps in outlining the specific tasks that one need to do to effectively
perform their roles (How to Develop a Competency Framework, 2017). It also clearly establishes
how their roles are connected to the organizational goals and success. To ensure that the
framework is used as required, it is vital to make it relevant to the people who will be using it for

ENGINEERING MANAGEMENT BUSINESS PLAN 10
them to feel owning it (Tenney & Marquis, 2017). For any business to efficiently develop a
framework, it needs to consider involving the people doing the work, communicate, and use
relevant competencies. To conclude with, it is evident that business plan provides a direction,
future vision, Attract financing, attract stakeholders, and manage businesses. Because of this, it is
vital for every company to have a business plan and follow it fully for it to meets its goals.
Justification
 Definition of business plan is in last part of the first paragraph.
 I have changed the headings as required
 I have also rephrased the introduction as requested
 Formatting style is apa 6th edition reference
 Recommendation is in the second paragraph of competencies

ENGINEERING MANAGEMENT BUSINESS PLAN 11
References
Barrow, C. (2009). Get Backed, Get Big, Get Bought : Plan your start-up with the end in mind.
Chichester, U.K.: Capstone.
Card, J. (2017). Planning for success: seven ways to improve your business plan. the Guardian.
Retrieved 23 August 2017, from
https://www.theguardian.com/natwest-partner-zone/2016/jul/11/planning-for-success-
seven-ways-to-improve-your-business-plan
Fox, J. J. (2010). How to Be a Fierce Competitor : What winning companies and great managers
do in tough times. San Francisco, CA: Jossey-Bass.
Holbeche, L. (2009). Aligning human resources and business strategy. Amsterdam: Routledge.
How to develop a Competency Framework. (2017). Rhodes Business School (Australia).
Retrieved 23 August 2017, from http://www.rhodesbusinessschool.edu.au/how-to-
develop-a-competency-framework/

ENGINEERING MANAGEMENT BUSINESS PLAN 12
Ludwig, T. A. (2001). You can get there from here--if you have a business plan. Nursing
Management, 32(5), 58-59.
Operations Strategy for Application Technologies Inc.. (2017). Businessplans.org. Retrieved 23
August 2017, from http://www.businessplans.org/Applicat/Applic05.html
Plastics Recycling Business Plan Sample - Executive Summary | Bplans. (2017). Bplans.com.
Retrieved 23 August 2017, from
http://www.bplans.com/plastics_recycling_business_plan/executive_summary_fc.php
Syrett, M., & Economist Newspaper, L. (2007). The economist: successful strategy execution :
How to keep your business goals on target. London: Economist Books.
Tenney, D., & Marquis, J. (2017). SWOT as a constructive predictor for business success of
SMEs: A Case Study. Proceedings for the Northeast region decision sciences institute
(NEDSI), 1014-1023.
Turner, M. F. (2001). How does your company measure up?. Black Enterprise, 32(4), 52.
Van der Heijden, K., Selsky, J. W., & Ramírez, R. (2008). Business planning for turbulent
times : new methods for applying scenarios. London: routledge.
Zhouying, J., & Ying, B. (2011). Sustainable development and long-term strategic management.
World Future Review (World Future Society), 3(2), 49-69.