Integrated Business Strategies Report

Running head: INTEGRATED BUSINESS STRATEGY
Integrated Business Strategy
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Overview of the Business Case:..................................................................................................2
Business Case..................................................................................................................................3
Feasibility Analysis.....................................................................................................................5
External and Internal Analysis of the Business...........................................................................7
Stakeholders Analysis................................................................................................................10
Program Logic Model................................................................................................................11
Resources...................................................................................................................................11
Financial Analysis.........................................................................................................................12
Sales Analysis............................................................................................................................13
Cost of Goods Sold....................................................................................................................14
Operational Expenses................................................................................................................14
Breakeven Analysis...................................................................................................................16
Reference.......................................................................................................................................17

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Overview of the Business Case:
Notpla is the packaging strat-up company which inaugurated in the year of 2019. This
company is founded by Rodrigo Garcia Gonzalez and Pierre Paslier. This company designed a
material known as NOTPLA. This company is the combination of the chemistry, designers,
engineers and entrepreneurs. This company created a solution for the degradation of the plastic
by introducing a new solution which is known as NOTPLA that disappears naturally from
nature. The company is seeking to build a plastic product which is unlike other plastic products
like plastic bags, plastic bottles and other plastic items are degraded naturally. The normal plastic
bags take a elongated period of time to degrade but the plastic products which NOTPLA is
making is degradable naturally. This is a great idea which not only one of the best ideas for the
start-ups but the company also focuses the health of mother nature. The company now wants to
create a new product which is a recycled bottle. These bottles are not only recycled but it will
naturally degrade with soil and does not cause any ill-effect to the nature.
As per the analysis of Earth play network it is found out that the above 480 billion plastic
bottles are sold worldwide. More than 1 trillion of plastic bags are used annually around the
globe. This plastic product will cause huge amount of problem to the environment and hence the
recycled product is the best solution for the product. As NOTPLA plastic bottles are made from
the organic products like seaweed and plants. The plastic product which are made from this
solution are biodegradables within a week unlike its counterpart which takes more than a billion
years to decompose.
NOTPLA has devoted time to create the product which will not only recolonize the
plastic product industry but it is very grateful for the environment. The company mainly focuses
on the packaging of products and also selling the plastic bags which are biodegradable. The

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scope of the company of doing business itself is the CSR project which not only focuses to
increase the revenue of the business but it aims to increase the health of the mother nature by
reducing the usage of the product which are harming the environment since the time of
industrialization. The product which is chosen for the business is the recycled bottle which is
also made from the same solution so that the usage of the plastic bottle decreased and the new
biodegradable bottle should take it place. This is easier to make than the making the plastic bottle
so the cost per bottle are also less than the plastic bottle. Moreover, it is biodegradable and hence
the product is not harmful to the environment. This part of the product fulfills the criteria of the
CSR project of the company.
NOTPLA has raised £850,000 in just three days of crowdfunding. There are total 900
investors who have invested in the vison of the company and provided the investment. In August
2018, the company has first opted for the venture capital round from the venture company known
as Sky Ocean Ventures. After the first investment the company is aspiring to pioneer through the
innovator in Residence which made the company to collaborate between the startups and the
corporations.
Business Case
The business is totally depending on the idea of creating the recycled bottles which will
replace the plastic bottle from the market. This will not only help the company to intervene in the
market where plenty of opportunity awaits but it will also help the company to provide the
product to the world which is biodegradable in nature and hence not harmful to the environment.
As per the analysis it is observed that over 480 billion bottles are sold in the market worldwide.
These bottles are used and then thrown away as these bottles are maximum use and throw bottle.

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This bottle is mainly made of plastic which harm the environment as these bottles are non-
degradable which causes huge damage to the soil. To resolve such problem NOTPLA are
creating the recycled bottle which will not only help the environment as it is degradable and
vanishes within one week but it also will provide safer source of water as the bottles are mainly
made with seaweed and plants which is organic in nature. This biodegradable product and
chemical protected product will help the company to sustain in the plastic industry and even
recolonize the whole plastic industry.
When the recycled bottle launches in the market it will not only have a considerable market share
due to its idea on the basis of which it is made but it will also help the company to maintain its
mission statement to saving the environment. The recycled bottle will curb down the pollution
which are associated with the bottle making and also increase the quality of the soil which was
degrading due to the usage of the plastic bottle. As the products are organic so it is very safe for
storing water for elongated period of time. The market share of the company will also increase
after the introduction of this recycled bottle. The company will deal with B2B business mostly as
the drinks industry needs most of the bottle. The company can also intervene in the retail market
so that the organic and recycled bottle can be used by the locals which will also increase the
health of the individuals.
To implement this product in the product line of the company, the company need to
restrict the time frame of the project. As per the increasing demand of the organic products and
the conditions of the market it is very essential for the company to start manufacturing of the
product immediately. The time frame will enhance production of the unit which in turn helps the
company to grow as the company will introduce the product in the market and fulfill the demand
of the consumers and also the demand of the companies.

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Feasibility Analysis
The company which is considered for the assessment is Notpla Company which is
engaged in providing appropriate packaging solutions for companies and the management of the
company is also dedicated to maintaining proper sustainability practices in the operations of the
business. The analysis is conducted for a new branch which the management of Notpla Company
is planning to open. The business would be offering biodegradable bottles, water jars and
aluminum containers. The business would be focusing on sustainable practices in the business so
that the business can earn revenue at the same time contribute to the CSR requirements for the
business. In order to effectively establish the new branch, the management of the company needs
to conduct a market analysis for the business.
The market analysis of Malaysia with respect to the business of Biodegradable industry is
constantly on the growth phase as the emphasis on CSR responsibility has significantly increased
over the years. The government of Malaysia is also dedicated to reduce the usage of plastic bags
and polymers and introducing biodegradable packaging material so that the market is favorable
for such a purpose. This shows that the market is quite favorable for businesses which are
offering products which are environmental friendly specially in terms of packaging goods. The
market trend also shows that the business is in its right path to expand the operations and the
products would also be in demand in the market. The plastics products which are used for
packaging are generally organic and recyclable in Malaysia which is the major reason due to
which the market is significantly expanding. The Malaysian plastics market is expected to
register a CAGR of more than 6% in the next 5 years which shows that the demand for
sustainable products are high even in the packaging industry. The packaging industry has

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experienced significant growth over the past few years. The increased demand for packaged
goods has accelerated the demand for high-density polyethylene (HDPE) which is one of the
products which would developed by Notpla Company. The revenue share which is made by
biodegradable packaging products in the market as per current scenario is appropriately
presented below:
Figure1: (Chart showing market share of Bio Packaging)
Source: ()
The above, figure shows the market share which is generated by the packaging industry
and the figure shows significant demand for bio plastics which is a positive sign and the same
suggest that the society is accepting eco-friendly practices in the operations of the business. It is
anticipated that the demand would be increasing further in the years to come. Therefore, it can be
said that it is a positive sign for the business of Notpla company to open a bio packaging

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business so that the business can not only expand the operations of the business but also
contribute to the CSR responsibilities of the business.
External and Internal Analysis of the Business
In order to take major decisions regarding the operational process of the new business,
the management of the company needs to take appropriate steps for identifying the strengths and
weaknesses of the business (Brooks, Heffner and Henderson 2014). In addition to this, the
opportunity and threats which can affect the operations of the business also needs to be
identified. It is on the basis of all these factors that a proper decision is to be taken by the
management of Notpla Company.
SWOT Analysis
Strengths
 Eco-friendly approach and products which would be causing zero harm to the
environment and thereby would be promoting sustainability in the operations of the
business.
 Effective technology and human resources for supporting the operations of the business
and thereby generation of more revenue from the operational process of the business
(Abraham 2013).
Weaknesses
 The cost of operations of the business would be high thereby affect the profit margin of
the business (Scolozzi et al. 2014). The major cost which the management needs to incur
is related to cost of research and innovations which needs to be taken by the business.

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 Availability of proper resources can also be recognised as one of the weaknesses of the
business and the same can have an impact on the operational process of the business.
Opportunity
 There is a considerable opportunity to expand the operations of the business as the
emphasis is more on products which can have sustainability and even packages are
considered to be part of the products (Salar and Salar 2014). The same needs to be
biodegradable.
Threats
 The major threat which is faced by the business in terms of producing biodegradable
packages is the resources which is required for the same.
 There is also a threat of competitive pressure in the market as most of the other
competitors are also switching to biodegradable products so that the overall sales can be
enhanced and trend can be maintained in the operations of the business.
PESTEL Analysis
In order to analyse the external market of the business, PESTEL analysis would be
undertaken to establish the different parameters which can have an impact on the operations of
the business and therefore, the same needs to be considered by the management of the company
in taking appropriate decisions (Cadle, Paul and Turner 2014).
Political Factors
The political situation in Malaysia can have an impact on the revenue generation process
of the business n thereby should be considered in major decision-making process of the business.

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A change in the political conditions in the market can have an impact on the revenue which is
generated by the business.
Economic Factors
One of the major factors which is covered in the economic factors is the element of costs
which is associated with the packages which is produced by a business (Paul, Yeates and Cadle
2014). The high costs of the packages should be able to protect the product inside but the same is
not always the case and therefore, might get unproductive for the business. In case of
Biodegradable packages, the costs is significantly high and therefore, the same affects the
business more.
Social Factors
The main purpose of packaging design is used to capture customers’ attention as they are
shopping and therefore attract the customers so that they ultimately purchase the products. The
social factors involve the taste and preference of the customers and the same can impact the
decision-making process of the business.
Technological Factors
The use of technology is very essential in developing bio-degradable packages which can
be used by the business for developing biodegradable products. The advancement of the
technology can help in better production of water bottles and containers. These factors can also
help the business to gain competitive advantage in the market.
Legal Factors

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At every stage in the packaging development process, there is a need to consider the
implications of legislation. Some of the regulations are brought about so that clean competition is
ensured and there is no violation of laws which are already established in the market.
Environmental Factors
The main focus of the business is to create packages which would be environmental
friendly so that the same can cause minimum harm to the environment and also contribute to
sustainability practices in the operations o the business. The environmental factors affect the
decision taken by the business and overall objective of the business.
The above analysis therefore shows the new project which the business of Notpla
Company is undertaking would be successful as the demand for sustainable products in the
market is significant and even the government is supporting those products which re not harming
ecosystem in any manner. The business plans to develop packages which would be attractive and
at the same time organic and recyclable. This would ensure that the business is able to earn
appropriate revenues from the operations of the business.
Stakeholders Analysis
The stakeholders of a business are the individuals which are most affected by the
decisions which are taken by the management of the company. The stakeholders for the business
of Notpla Company which are anticipated are listed below in details:
 Customers: The major stakeholders of the company are the customers which purchases
the packages which are generated by the business (Missonier and Loufrani-Fedida 2014).
The type of packages which is used by the customers or business manufacturers is the
basis on which the packages are created in the first place.

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 Society: The general society at large is also one of the stakeholders of the business and
they also play a vital role in decisions (De Brucker, Macharis and Verbeke 2013). The
business of Notpla Company is trying to complete a business project which benefit the
society and also contribute to the CSR requirements of the business.
 Debtors: The debtors are individuals from whom the business would be taking loans so
that the financing requirements of the business is met in an effective manner. The debtors
are also customers to whom the business supplied on credit sales basis.
Program Logic Model
The business intended to follow certain objectives for the newly established project
which aimed to create biodegradable bottles, water jars and aluminum cans. These packages can
be used for packaging mineral waters and other types of chemicals as well. The objectives which
can be identified for the business are listed below in details:
 The business intended to sell the bottles, containers and jars to manufacturers who are
engaged in packaging of mineral waters or chemicals.
 The business ensured that the products which was offered by the business provided leak
proof solution to the customers and it also ensured that the customers are attracted to the
products which was offered by the business (Hammel et al. 2013).
 The business intended to provide priority to the environment and CSR responsibility of
the business and therefore developed packages which can be decomposed or reused again
in an efficient manner.
 The business was also involved in efficient utilization of resources and further expansion
of the operations of the business.

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Resources
The resources which would be required by the business would be both human resources
and physical resources. The appropriate resources of the business allowed the management of the
company to develop a product which can meet the requirements of manufacturer and also be
biodegradable at the same time.
Gannt Chart
Activity Months
M
Jan
M
Feb
M
Mar
M
April
M
May
M
June
M
July
Recruitment of Employees 
Get Raw Materials HPDE  
Production of Bottles, Jars and
Cans

Innovation and Research   
Designing and Branding  
Promotion  
Sales process  
The Gannt chart which is presented above shows the timeline in which the different
resources of the business would be used for developing the final package product for the
manufacturer. The Gannt chart also shows the crucial steps which needs to be taken by the

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management of Notpla Company for support each step for developing the new product for the
business.
Financial Analysis
The financial analysis for the new business project would be done by taking the initial set
of $1 million for the business where the company would be investing the same for the purpose of
starting up a new business initiative. The key products that would be manufactured and sold by
the company primarily would be in the field of Pet Bottles, Cans and Water Jars. The designed
business model would be a complete business to business model where the company would be
aiming at providing recycled bottle to the various beverages companies operating in the food and
beverage industry (Burns and Dewhurst 2016). The financial projections has been done for a sum
of three-years for the company in which various sources of income and expenses were taken into
account for the company. Breakeven Analysis was done in order to find out units that needs to be
sold by the company for the purpose of selling and covering the desired level of sales activity for
the company.
Sales Analysis
The sales of the company in the projection would be solely determined with the help of
demand of various beverage containers such as pet bottle, cans and jars. The sales estimates for
the Pet Bottle would be the highest given the high demand of beverage and soft drinks, followed
by Aluminum Cans and then the Water Jars. In the first year of operations the company expects
to make a Total Sales of 4.95 million units coming from Pet Bottles, Aluminum Cans and Water
Jars. Out of which almost 50% of the revenue will be contributing the total sales, 30% by Cans
and the rest 20% by Water Jars making the total sales of the company to be around $750,000 in

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the first year of operations (Finch 2013). The increase in the sales of the company in the three
year time period would be completely based on the market penetration rate that will be around
10% for the company from the second year itself. The sales highlight for the company in the
financial projection developed is as follows:
Revenue Growth
Particulars Year 1 Year 2 Year 3
Pet Bottles 375000 412500 453750
Aluminum Cans 225,000 247,500 272,250
Water Jars 150000 165000 181500
Direct cost of sales 300000 330000 363000
Operating Profit 450000 495000 544500
Cost of Goods Sold
The cost of goods sold or the total variable cost for the company would be around 40% of
the total sales that would be done by the company in the financial trend period analyzed for the
1 2 3
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
375000
412500
453750
225,000 247,500 272,250
150000 165000 181500
Sales Analysis
Direct Cost of Sales

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company (Fatoki 2014). The variable cost would also be taken into consideration for the purpose
of calculating the breakeven point that would be used by the management of the company to
determine the level of sales activity that the management of the company needs to do for the
purpose of overall financial stability of the company.
Operational Expenses
The operational expenses for the company would be taken as the fixed costs of the
company that the company would be incurring for the purpose of sustainable operations of the
company in the trend period analyzed for the company. The operational expenses for the
company primarily would be in the form of Rent of Warehouse, Salary and Wages, Accountant
fees, sales and marketing costs and other costs that the company would be incurring in the trend
period to successfully carry out the various operational activity of the company, the total fixed
costs of the company would then be undertaken into consideration for the purpose of evaluating
the breakeven point of the company (Cant, Erdis and Sephapo 2014). The rise in the operational
costs for the company would be done on a 5% basis where each of the operational expenses for
the company would be rising by around 5% on an yearly basis thereby accounting the inflation
and rise in interest rate in the economy.
Financing Sources
The financing sources that would be undertaken by the company for the purpose of
funding the various operations and activities primarily would be equity and debt financing. The
equity finance coming from the seed stage finance would be around $800,000 and the rest of
$200,000 would be contributed from the debt financing (Cornwall, Vang and Hartman 2016).
Financial Risks and Business Risks are an important source of consideration for the business and
keeping in view the same context the company would be deploying a minimum amount of debt

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financing to take advantage of the tax advantage as well as the lower cost financing available.
However, in the projections it is also considered that the company would be repaying the debt
amount in the three years of time.
Profitability and Return on Investment
Profit generated from the business would be the sole mark for determining the overall
financial viability of the business and the same would be reviewed for a sum of three years
where material information’s would be taken into consideration for the purpose of planning. In
the first year of operation the company is expected to earn about $249,683 earning about 31% in
the first year which is expected to increase from the second year to around $293,149 which is
37% return and finally in the third year the company would be generating $327,854 which is
around 37% of return on equity investment (Ward 2016).
Breakeven Analysis
The breakeven analysis would be done further for the purpose of analysis of the company
in the field of determining the total amount of sales that would be done by the company for the
purpose of covering all the fixed expenses of the company. The breakeven analysis for the
company were primarily done for all the three products that would sold by the company in the
first year of operations which is as follows reflecting the units that needs to be sold in each of the
product category.
Breakeven Analysis
Particulars
Pet
Bottles
Alluminium
Cans
Water
Jars
Fixed Costs (Total Fixed Costs*Revenue % Generated) 80,125 48,075 32,050
Revenue Per Unit $0.10 $0.25 $0.50
Variable Cost Per Unit (Total Revenue Percentage* COGS) $0.04 $0.10 $0.20
Units Sold
375000
0 900000 300000

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Breakeven Analysis: Fixed Cost/(Price-Variable
Cost) (In Units)
13354
17 320500 106833
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