Detailed Business Case Analysis: Recycling Waste Project Proposal

This case study presents a comprehensive business case analysis for a recycling waste project, evaluating its feasibility, benefits, costs, and risks. The proposal aims to introduce a new business on recycling waste, targeting profitability within five years while promoting environmental sustainability. It employs traditional project development methods, highlighting five key stages: initiating, planning, executing, controlling, and closing. The analysis includes a SWOT analysis, quantitative ROI assessment, and detailed cost estimations. The project intends to address environmental pollution by collecting waste from individuals and transforming it into useful products for the retail market, leveraging social media marketing to reach environmentally conscious consumers. The study concludes that effective implementation of the project plan can lead to significant revenue generation and positive community engagement towards sustainability.

Running head: BUSINESS CASE ANALYSIS
Business case analysis
Name of the student
Name of the university
Author note

1BUSINESS CASE ANALYSIS
Table of contents
Executive Summary.........................................................................................................................3
Overview..........................................................................................................................................3
Expected Benefits............................................................................................................................6
Costs................................................................................................................................................8
Major Risks....................................................................................................................................12
Timescale.......................................................................................................................................13
Conclusion.....................................................................................................................................16
Reference list and bibliography.....................................................................................................17

2BUSINESS CASE ANALYSIS
Executive Summary
In this study, it has been identified that a new project idea on recycling waste will be introduced.
Based on the traditional project development method, the project idea has been defined by
highlighting the five stages. Understanding thee benefits and the risk factors of the project plan,
the study has mentioned about different solutions. Based on the solutions it can be assumed that
if the project plan can be effectively implemented it will be beneficial for achieving its target.
Overview
a. Purpose or objectives of this proposal
The purpose of this proposal is to shed light on the small entrepreneurial behavior. By
analyzing both the opportunities as well as risk factors, the new business idea will be developed
in this analysis. Based on the study area chemical engineering, the new business on recycling
waste, will be introduced through this proposal. Analyzing the entrepreneurial risk in every
business, it cannot be denied that it is a complex factor in which not only the economic risk
arouses, but also social cultural aspects denote the strong impact on the entrepreneurial business
initiatives. The study will propose a business plan and understanding the expectation of the
community, justification against the project plan will be provided.
 To introduce a business on recycling waste for gaining maximum profit within coming 5
years
 To introduce strategic initiatives by critically analyzing the business idea
 To understand both strength and weakness of the business idea and its impact on
satisfying community expectations

3BUSINESS CASE ANALYSIS
i. Identify the problem to be solved or need to be filled.
By understanding the chemical engineering industry, it can be said that based on the
current challenges, it can be said that due to changing demands of the customers, business
environment has become highly competitive. In this situation, with the limited budget, it is tough
for the entrepreneur to develop new business idea. Due to the rapid environmental regulatory
changes in the chemical trade sectors, it has become challenging for the entrepreneurs to develop
new business effectively in this sector (Rana, Kalla and Csetenyi 2017). In order to understand
the situation, proper strategic initiative is required so that emerging problems can be solved.
ii. Definition of iterative and traditional method and those importance in project development.
Process for conducting the project.
Interactive development method is being considered as the process in which the lifecycle
of the software development planning. In this process, the ultimate decision has been reached
based on the analytical operation cycle (Bendell 2017). Therefore, it can be said that the purpose
of the interactive process is to bring the desired result by discovering repetition of each activities.
It cannot be denied that in case of interactive method of project development, mathematical
implications are being highlighted. On the other hand, traditional project management is being
considered as the universal method in which estimating, planning, controlling and operating
activities are being performed by the entrepreneur. By continuing this it can be said that the
traditional project development is the important process of business in which five stages of
lifecycle is being followed by the project developers (Ramazani and Jergeas 2015). The five
stages of lifecycle cover initiating, planning, executing, controlling and closing.

4BUSINESS CASE ANALYSIS
In order to conduct this project, the traditional method of project development will be
followed by the entrepreneur. In the stage of initiation, the ultimate goal for gaining profitability
and developing a sustainable position in the market will be developed (Bendell 2017). The
planning stage will define the activities, which will be done while conducting the project. By
estimating the time duration for the process, necessary resources such as raw materials, human
resource and machinery equipment are being planned. In the planning process, the distribution
channel for the project will be critically analyzed. Documentation of the project plan is
necessary. At the stage of execution, legal formalities regarding the project development plan
will be done. In this stage, based on the efficiency of individuals and requirement for the
particular job, recruitment and selection process will be done. Information regarding the project
will be transferred with the individuals so that the project objectives can be clarified properly. In
monitoring stage, scope for change as well as different cost initiatives are being highlighted. In
this stage, monitoring is being done so that the improvements can be properly analyzed. By
continuing this, it can be said that in order to monitor the growth of this business, activities of
individuals will be recorded, so that the required growth areas can be easily identified. In the last
stage of closing, final report with the design, budget and time will be developed. Based on the
issues, identified while conducting the research, proper recommendations will be provided.
b. Describe how you believe is the best way to measure the success of the project
Not only the project development, but also it is important for the entrepreneur to identify
the best way for measuring the success of the project. The aim of project development is reach at
the end of project success. In order to analyze the project success, effective evaluation plan is
being introduced. As per my understanding, in the first stage it is very important to understand, if
the project has followed its planned time duration (Bendell 2017). Quality review is must for

5BUSINESS CASE ANALYSIS
understanding the success rate of the project. Good time and quality review needed to be
collected from the customers. Based on the feedbacks from the customers, it can be easily
understood that if the project has brought any benefit or not. Stakeholder satisfaction is very
important for maintaining uninterrupted supply chain. As per my understanding, developing
strong relation with the stakeholders, it will be easier for the entrepreneur to understand their
needs and demands.
Expected Benefits
Based on the analysis, it can be assumed that the business project can play an influential
role in case of achieving its profit target. If the project plan can be effectively implemented, in
that case, it can be expected that within coming 5 years, the business revenue will reach $89
million. On the other hand, it will also play a beneficial role for bringing sustainability in the
environment. By reducing amount of pollution in the environment, the project idea can increase
the community engagement towards sustainability process.
a. Context and analysis
Waste has huge negative impact on the natural environment. With the increasing
environmental pollution as well as water contamination, both the natural and anthropogenic
resources are getting affected (Ramazani and Jergeas 2015). In this situation, it has become
necessary for introducing an effective way so that the products can be effectively recycled. In
this situation thee idea of recycling the waste can be highly appreciated by the customers.
i. Organizational strategy and community expectation

6BUSINESS CASE ANALYSIS
In order to enter in the market, cost effective strategy will be adopted by the entrepreneur. As per
the business strategy, waste will be collected from individuals’ houses and by making useful
products, it will be send to the retail market through distribution channel. In order to gain
marketing advantage, social media marketing will be done so that target customers can be easily
identified. Basically the people who are aware of increasing environment pollution will be
targeted by the company (Ramazani and Jergeas 2015). Analyzing the strategy, it can be
assumed that by introducing the waste recycling idea, it will be easier for the company to grab
community attention.
ii. SWOT analysis of the project
Strength Weakness
 It is an creative idea and can be
appreciated by the community
 Employees are efficient
 The project plan can be achievable as
contribution of individuals raw
material can be easily collected
 Lack of public awareness regarding
the product recycling process
 Increasing numbers of competitors in
thee market
Opportunities Threats
 Increasing concern regarding the
environmental sustainability is the
major opportunity for the project
 Government has introduced various
waste management regulations, that
can be beneficial for the project
 Increasing taxation policies and
supply chain issue are major
weaknesses for the project
 Climate can create important barrier
for collecting the waste

7BUSINESS CASE ANALYSIS
development
iii. Quantitative Analysis
The ROI of Return on Investment technique is employed in order to analyze the viability
of the new business project. The projected ROI for the project will be compared with the
benchmark set for projects such as of western apparel retail store in Australia.
Return on Investment (ROI) = Net Profit / Total Investment * 100
= $ 100000 / $ 50000 * 100
= 200 %
It is gathered from the above calculation that by making an investment of $ 50000, the new
business will be able to attain ROI of 200% over a 1 year span. From analyzing the benchmark
for the Australian apparel industry, it has been observed that the western apparel retail stores
generally have the benchmark trends of attaining an average ROI of 150 to 220 % in their first
year of business. Considering same, the projected ROI is viable for this new business.
Costs
a) Estimation of Costs
The estimated total investment for the new business project of western appeal retail store
is considered to be $ 50000. Other estimated costs related with successful business project
launch are explained below:
Sources of Capital
Owners' Investment (name & %
ownership)
Your name & % ownership $

8BUSINESS CASE ANALYSIS
40,000
Other Investor 5,000
Other Investor 5,000
Other Investor -
Total Investment
$
50,000
Bank Loans
Bank 1
$
2,500
Bank 2 2,500
Bank 3 -
Bank 4 -
Total Bank Loans
$
5,000
Other Loans
Source 1
$
40,000
Source 2 10,000
Total Other Loans
$
50,000
Summary Statement
Sources of Capital
Owners' and Other Investments
$
40,000
Bank Loans 5,000
Other Loans 5,000
Total Source of Funds
$
50,000

9BUSINESS CASE ANALYSIS
Startup Expenses
Bldgs / Real Estate
$
5,000
Leasehold Improvements 2,000
Capital Equipment 4,000
Location / Admin Expenses 4,000
Opening Inventory -
Advertising / Promo Expenses 1,200
Other Expenses 1,000
Total Startup Expenses
$
117,200
Startup Expenses
Buildings / Real Estate
Purchase
$
40,000
Construction 10,000
Remodeling -
Other 500
Total Buildings and R / E
$
50,500
Leasehold Improvements
Installation of fixtures
$
5,500
Shop fit out
$
5,500
Computer equipments
$
5,500
Stationary and office supplies
$
5,500
Total L / H Improvements
$
22,000

10BUSINESS CASE ANALYSIS
Capital Equipment List
Furniture
$
55,000
Equipment
$
1,500
Fixtures
$
1,500
Machinery
$
6,500
Other
$
2,500
Total Capital Equipment
$
67,000
Location and Admin Expenses
Rental
$
-
Utility Deposits 5,500
Legal and Accounting Fees 4,500
Prepaid Insurance 55,000
Pre-opening Salaries 5,500
Other 5,500
Total Location and Admin Expenses
$
76,000
Opening Inventory
Business assets
$
2,560
Jeans clothing materials
$
2,560
Supplies
$
2,560
Clothing raw materials
$
2,560
Manufacturing equipments
$
2,560
Total Inventory
$
12,800

11BUSINESS CASE ANALYSIS
Advertising and Promotional
Expenses
Advertising
$
1,500
Signage
$
1,500
Printing
$
1,500
Travel & Entertainment
$
1,500
Other / Additional categories -
Total Adv and Promo expenses
$
6,000
Payroll and payroll taxes
Expense 1
$
25,000
Expense 2 25,000
Total Payroll and payroll taxes
$
50,000
b) Viability of Estimated Costs
The estimated costs for all the necessary activities or material needed within the new
projects is deemed to be viable for the reason that it is aligned with the financial feasibility of the
project to attain an estimated ROI of 200%. Certain considerations have also been taken into
account while cost estimation of the project to ensuring its viability to attain the project bet
profit. These considerations includes variations on shipping and taxes for purchasing raw
materials, employer tax contributions in deciding the salaries and wages, rental or purchasing
sources along with instance and licensing of equipment in deciding equipment costs.
Additionally, the project implementation plan is reviewed to ensure operational efficiency can
impact the costs decided as estimated start-up expenses.