Proposal for Petrochemical Products Expansion

The XYZ private ltd is a manufacturer of petrochemical products aiming to reduce operational costs and maximize profit margins by applying cost minimization strategies. The company plans to expand its refinery operations, requiring funding for new equipment and resources. The objective is to utilize natural resources sustainably, satisfy customer demands, and provide high-quality products while maintaining a competitive advantage.

Proposal

Project overview
The 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 of
profit is increasing with the span of time. The company is located in the United States. The
company is focusing on reducing its operational cost by applying the cost minimization strategy
in order to maximise the profit margin of the company. The company is using sustainable and
innovative methods for manufacturing the products which help to provide the competitive
advantage to the company.
According to the trend of the petrochemical industry, the demand for per capita petroleum
consumption is 24% in 2009 (Yuan et al., 2015). The demand for cars, computers and mobile
phones is tremendously increasing which shows that the profit margin of the company will be
maximised in the future. The price elasticity is also low despite the increase in the price of oil per
barrel.
The strength of the companies in Middle East region has been increased due to oversupply which
maximises the profitability of the companies. According to the research, the petrochemical
industry 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 company
which enables the competitive advantage by fulfilling the demand for petrochemical products.
The effective supply of petrochemical products helps to distinct the brand among the competitors
within the same industry.

Statement of the problem
The company requires expanding its refinery in order to overcome the shortage of petrochemical
products with its demand. According to the future forecasting, the demand for petrochemical
products will increase in the future due to which the company requires funds for expanding its
operations. The company also requires new equipment such as production platform SS s FPSO
and others in order to improve the efficiency of the company. The company is at expansion stage
which helps to maximise the profitability of the company by funding the expansion of
operations.
Project details
Objectives
The objective of the company is to utilise the natural resources in a sustainable manner and to
satisfy the needs and demand of customers with high quality of products in order to maximise the
profitability of the company. The objective of the company is to provide excellent products with
effective supply which helps to unique the identity of the company.
Clientele
The customers of the company are mainly large industrialists such as urea and methanol
fertilizers, electricity generation, agriculture, packaging, automotive, and others. The company
has mainly big industries that purchase the products in large quantity. The bargaining power of
the customer is high because other competitors are providing similar products to the customers.

Methods
The company is using sustainable methods in order to protect the environment from the
operations, and innovative methods are used to maximize the profitability of the company. The
innovative methods of manufacturing the petrochemical products help to provide a competitive
advantage to the company which enables to promote the brand in the eyes of the customers
(Coley et al., 2016).
Self-administration
The company is supervising its operations in a most efficient and effective manner in order to
maximise the profits of shareholders. The human resource of the company is managing its
operations in order to provide a competitive advantage to the company (Thomas et al., 2012).
The management of the company is effective which helps to manage the available resources of
the company in order to provide the competitive advantage of the company. The human
resources of the company are skilled and innovative which enables to maximise the profitability
of the company.
Available resource
The available resource of the company includes advanced technology, technically oriented
employees, logistics location and manufacturing facilities which manufacturer’s high quality of
petrochemical products in order to enable the competitive advantage to the company.
Required resources
The company needs additional manufacturing machines in order to expand the operations of the
company. The company also requires additional resources in order to expand the refinery of the

company. The expansion of operations requires funding which helps to expand the profitability
of the company.
Budget
The total budget for expanding the operations of the company requires $20,000 which includes
complete setup cost of machinery, tools, equipment, promotional activities, and others. The total
budget for the expansion of operations helps to provide the competitive advantage to the
company which improves the profitability of the company. The budget helps to achieve the goals
and objectives of the company which includes satisfying the needs and demands of customers by
providing the high quality of petrochemical products.
Facilities
The expansions of operations require machinery, land, equipment, manpower and finance which
help to meet the demand of operations.
Equipment
The equipment for expanding the operations include four types of machinery, gas processing
plants, cleaning filter, tools, and raw material. The machinery helps to produce the high quantity
of petrochemical products which helps to fulfil the demand of customers in a most efficient and
effective manner.
Personnel
The additional human resource is required for expanding the operations of the company. The
human resource is the main element which helps to successfully expand the operations of the
company. The total twenty-five human resources are required for expanding the operations of the
company. The human resource includes general manager, operational manager, labour,

technicians, engineers, and others. The human resource helps to provide a competitive advantage
to the company by doing the processing of plants in a most efficient and effective manner (David
et al., 2016). The use of innovative idea enables to distinct the company among the competitors
within the same industry. The knowledgeable human resource helps to provide a competitive
advantage which directly impacts on the brand image in the eyes of the customers which enable
the high-profit generation of the company within the particular time period.
Evaluation plan
The company requires ten percent of the total profit of the company in order to expand the
operations of the company. The company will evaluate the performance of plan by comparing
the actual performance with the desired performance which helps to determine the problems in
achieving the desired performance of the company. The evolution process is one of the most
important steps which helps to examine the actual performance of the company by comparing the
actual performance with the desired performance. It helps to resolve the hindrance which is
coming in achieving the desired performance of the company.
Future funding
The future funding of the company will be done through initial public offerings which help to
raise funds to achieve the goals and objectives of the company. The company will start its initial
public offerings after improving the brand's image in the eyes of the customers and building
distinct image among the competitors within the same industry

References
Thomas, M., Kiefer, H. D. F., & Forschungsgemeinschaft, D. (2012). Antrag auf Gewährung
enter Sachbeihilfe/Proposal for funding of a research project (TH 1781/1-1).
Coley, S. M., & Scheinberg, C. A. (2016). Proposal Writing: Effective Grantsmanship for
Funding. SAGE.
Ben, H. (2013). Resources and energy trends of petrochemical industry in low carbon era. CIESC
Journal, 1.
Yuan, T. H., Chio, C. P., Shie, R. H., Pien, W. H., & Chan, C. C. (2015). The distance-to-source
trend in vanadium and arsenic exposures for residents living near a petrochemical
complex. Journal of Exposure Science and Environmental Epidemiology.
David, F., & David, F. R. (2016). Strategic Management: A Competitive Advantage Approach,
Concepts and Cases.