Financial Request for Project Expansion - Assignment
Added on 2021-06-15
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Financial Request for Project Expansion 1FINANCIAL REQUEST FOR PROJECT EXPANSIONby Student’s nameCourse code+nameProfessor’s nameUniversity nameCity, StateDate of submission
Financial Request for Project Expansion 2IntroductionThe production department of Rhino Steel Industry is seeking a financial support topurchase the necessary machinery and equipment for project production expansion. Theobjective of this expansion is to gain partnerships and to capture ready local and foreign markets.The machinery in question is capable of increasing our production to meet the market demandson a low cost of labor but quality production. The machinery will also not require additionallabor investment but rather maintain the current labor force and still operate effectively. Thisproject is based on the research carried out to determine possible market niches and partnershipswith India, Maldives, and Bangladesh which proved viable and ripe for the taking as manybusiness people have shown interest in our products especially the supply of office furniture,cabinets, and lockers. We, therefore, propose a diversification of production at Rhino Steel Industry byintroducing a new product line capable of serving the markets already identified. This comeswith a few desired changes in the technological use at the production unit to ensure we produceaffordable quality products that meet the market demands at a low cost without the disturbanceof the current workforce. In line with this vision, therefore, the production unit puts forward thisproposal of funding for the introduction of the new woodwork technology to help meet marketdemands.Statement of needRhino Steel Industry operates two branches, the main branch is headquartered in Leeds,United Kingdom and the factory at Negombo, Sri Lanka. Currently, Rhino Steel industryproduces steel chairs, tables and cupboards which are sold locally in the UK and Sri Lanka
Financial Request for Project Expansion 3where the two industries are established. There is need to expand the company’s markets tocapture market niches available in the foreign lands which are currently not occupied hence lessor no competition exists. Currently, we have established partnerships with business individualswho are interested in our products so long as we can supply high-quality products, on low costsand also durable, conditions which we are able to meet and surpass.Program description and production projectionsWith the machines at our disposal, we will be able to produce high-quality products,reduce significantly our cost of labor, no need to higher more workforce and still increase ourrevenues through exports. Most importantly, the machinery will aid our company in diversifyingour business by introducing new lines of products within our production unit. We intend to addto our product line the production of office furniture, cabinets, and lockers, all of which ourcustomers in the foreign market have shown great interest in trading with us. Currently, as westand, the company does not have the capacity to produce these highly desired products.Secondly, it would very costly to indulge in the production of these products with the currenttechnology at our disposal. We will require employing more labor force for the production of thenew product line. Therefore, it will not be feasible to introduce the product line with our currentstate at the production unit. With the machinery at hand though, we stand a better chance of operating at the bareminimum costs. First, we will be able to retain the current workforce hence there will be no needof raising our costs through engaging more labor force. Secondly, we will be able to diversify thebusiness at production level by introducing to our list of products the office furniture, cabinetsand lockers and upholding quality. Thirdly, we will be able to produce a high quantity of quality
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