Business Plan: Construction of Electrical Transformers in Iraq

This project presents a comprehensive business plan for establishing a construction factory in Iraq, specializing in electrical transformers. The plan focuses on exporting construction services within Iraq and the Middle East, capitalizing on high profitability and addressing the country's development needs. The company aims to achieve cost leadership and product differentiation through core competencies. Key partners include local organizations and IT companies for automation. Strategic activities encompass direct material purchases, promotional campaigns, and value propositions centered on quality and customer satisfaction. The plan details customer segments, support systems within the value chain, key resources, cost structures, and revenue streams. The business model incorporates innovative technologies, cyber systems, and stakeholder alignment strategies, aiming for a 20% increase in production efficiency. The plan also references key business model concepts and tools.

Module Code:
Construction of electrical
Transformers in Iraq

Introduction
 This presentation focuses on newly set up business would be
construction factory in Iraq which will focus on providing and
construction of electrical Transformers.
 In this business, export of construction services would be made to
mainly in Iraq.
 Construction of transformer in Iraq and the Middle East due to the
high profitability.
 Company focuses on the creation of the core competency the cost
leadership and product differentiation in its construction factory in
Iraq.
 The Company will aaddress an opportunity for international
creative action as in Iraq unemployment rate is way too high,
some prime martial available in Iraq like steel and oil in easy
manner, the country is developing and the weather is very high
temperature in summer this lead to consumption electrical
equipment

Key partners of the
business
 The key partners of business would be small organizations in Iraq
who will provide talented employees and support to run the
business of construction of transformer in Iraq.
 Company will also undertake alliance with the IT companies in
Iraq to set automation in the process.
 Marketing advertisement and alliance will be made by using the
merger and amalgamation with the existing organizations in Iraq
(Pedersen, & Netter, 2015).

Key Activities
 Direct purchase of the oil and other raw material such as copper
and cold rolled grain accompanied with the silicon steel.
 This will be done by entering into the joint venture with the
suppliers.
 It could also be done by undertaking the backward integration wit
the suppliers in the process.
 Promotional activities such as use of the social media and cyber
computing enterprises resources planning would also be used for
promoting the business.

Value Proposition
 Company focuses on the creation of the core competency the cost
leadership and product differentiation in its construction factory in
Iraq
 This will be done by hiring the expert employees and using the
advance technologies in the system.
 The newly set business will focus on delivering the quality
transformers in Iraq for its sustainable future.
 Some of the expert employees from the other country will also be
migrated in the business set in Iraq (Pedersen, & Netter, 2015).

Promotional offers
 Focuses on using the loyalty card approach.
 Offer high cash discount to business organizations
who wants to have transformer in their business
premises.
 Focuses on the business to business.
 The price of the transformers will be low as we
import cost cutting advance technologies such as
ERP (Enterprises resources planning), Inbound
process machineries in the process which will also
lower down the costing of constructing the
transformers in Iraq.

Setting effective
customer relation
 Setting effective brand image by using the promotional tools
such as social media and loyalty card approach.
 Optimum constructions of the transformers due to imported
advance technologies and experts in the process.
 Loyalty card approach will be used to attract more clients. This
will record the client’s data in system and direct message will
be sent to them to attract them to buy transformers.

Customer Segments
 There will be easy availability of the Cold Rolled Grain
Oriented (CRGO) Steele which will be used for the construction
of Transformers.
 Customizing transformers will be constructed for the different
customers segments.
 Integrating advance cyber system and advancing the features of
the transformers will bring new experience for providing electrical
transformer (Barquet, et al. 2013).

Support Systems in value
chain activities.
 Support Systems can be defined as the system that enables the
maintenance management in a smart way.
 There are many programs and software which are designed
specifically to help in planning and execution of the maintenance
process.
 Examples of such support systems include critical chain project
management systems which helps in prioritizing the activities
based on their importance (Katsikeas, et al. 2016).
 Low cost transformers will be constructed to attract price sensitive
clients.

Support Systems in value
chain activities.
 Generation= It would be the total output level of the transmission
or transformers in the process.
 IPP= It is the electrical inventory used in the process.
 Transmission- It is the process to covert the oil and other material
converted into the finished goods.
 Distributor- These will the local retailers who will directly contact
with the clients.

Key resources
 More than 100 employees will be indulged in the sales team.
 Use of the advance technologies and cyber system will set
automation in the inbound process for construction of the
Transformers.
 Effective communication among employees will be made through
the advance technologies.
 The promotional channels would be social media and SEO process.
 Alliance with the Small contractors and sales personnel will be
done to reach to the clients (Meertens, et al. 2012).

Cost Structure
 Value chain expenses would be 50% of the total cost of the
transformers i.e. $900,000.
 Cost for transformer foundation and appurtenant materials
would be $ 150000.
 Marketing expenses would be 10% of the overall sales cost of
transformers in Iraq.
 Fixed cost for arranging factory arrangement would be
approximately $ 300000
 Infrastructure development cost would also be required for setting
up office and factory premises for the employees (Osterwalder, &
Pigneur, 2010).

Revenue streams
 Offering electrical customized transformers.
 Focus on developing Transformers based on the available prime
goods in Iraq by using the oil and available raw materials in Iraq.
 Integrating the advance technologies and cyber system to set
automation in process to create synergy in the value chain
activities of the business ( This will be done by using the
technologies in process for production of transformer).
 This will increase the production of the transformers by 20% by
increasing the efficiency of the employees through the
automation.
 Aligning the interest of the stakeholders with the organizational
development by setting code of conduct and selling stake to
general public in Iraq (Joyce, & Paquin, 2016).

References
 Joyce, A., & Paquin, R. L. (2016). The triple layered business
model canvas: A tool to design more sustainable business
models. Journal of Cleaner Production, 135 (1), 1474-1486.
 Osterwalder, A., & Pigneur, Y. (2010). Business model generation:
a handbook for visionaries, game changers, and challengers.
Australia: John Wiley & Sons.
 Meertens, L. O., Iacob, M. E., Nieuwenhuis, L. J., Van Sinderen, M.
J., Jonkers, H., & Quartel, D. (2012). Mapping the business model
canvas to ArchiMate. In Proceedings of the 27th annual ACM
symposium on applied computing, 23(3)., 1694-1701).
 Barquet, A. P. B., de Oliveira, M. G., Amigo, C. R., Cunha, V. P., &
Rozenfeld, H. (2013). Employing the business model concept to
support the adoption of product–service systems (PSS). Industrial
Marketing Management, 42(5), 693-704.
 Pedersen, E. R. G., & Netter, S. (2015). Collaborative
consumption: business model opportunities and barriers for
fashion libraries. Journal of Fashion Marketing and Management,
19(3), 258-273.