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Project overviewThe XYZ private ltd is basically a manufacturer of petrochemical products such as propylene,xylem isomers, benzene, and others. The company was established in 2010, and the trend ofprofit is increasing with the span of time. The company is located in the United States. Thecompany is focusing on reducing its operational cost by applying the cost minimization strategyin order to maximise the profit margin of the company. The company is using sustainable andinnovative methods for manufacturing the products which help to provide the competitiveadvantage to the company.According to the trend of the petrochemical industry, the demand for per capita petroleumconsumption is 24% in 2009 (Yuan et al., 2015). The demand for cars, computers and mobilephones is tremendously increasing which shows that the profit margin of the company will bemaximised in the future. The price elasticity is also low despite the increase in the price of oil perbarrel.The strength of the companies in Middle East region has been increased due to oversupply whichmaximises the profitability of the companies. According to the research, the petrochemicalindustry is one of the fastest growing and lucrative industries around the globe (Ben et al., 2013).The expansion of petrochemical products helps to maximise the profitability of the companywhich enables the competitive advantage by fulfilling the demand for petrochemical products.The effective supply of petrochemical products helps to distinct the brand among the competitorswithin the same industry.
Statement of the problemThe company requires expanding its refinery in order to overcome the shortage of petrochemicalproducts with its demand. According to the future forecasting, the demand for petrochemicalproducts will increase in the future due to which the company requires funds for expanding itsoperations. The company also requires new equipment such as production platform SS s FPSOand others in order to improve the efficiency of the company. The company is at expansion stagewhich helps to maximise the profitability of the company by funding the expansion ofoperations.Project detailsObjectivesThe objective of the company is to utilise the natural resources in a sustainable manner and tosatisfy the needs and demand of customers with high quality of products in order to maximise theprofitability of the company. The objective of the company is to provide excellent products witheffective supply which helps to unique the identity of the company.ClienteleThe customers of the company are mainly large industrialists such as urea and methanolfertilizers, electricity generation, agriculture, packaging, automotive, and others. The companyhas mainly big industries that purchase the products in large quantity. The bargaining power ofthe customer is high because other competitors are providing similar products to the customers.