Reasons/Business objectives of this proposal
The need to be filled is that there is no waste recycling centre in the community of Kewdale in Perth, Australia. The aim is to set up a community waste recycling centre. Companies, which operate in the waste and recycling industry, collect both hazardous and non-hazardous waste material. The recycling and waste industry has greatly benefited from recovery of the industrial, construction and commercial business sector (Kerzner, 2017). These sectors have greatly expanded hence producing more waste. The community in Kewdale has also grown tremendously hence increasing the amount of household waste. The business objectives of this proposal will be to form a household recycling company that will work together with the Kewdale Municipality, to develop a recycling center which is based on sound business practices, to ensure that recycling is sustainable in Kewdale, minimization of land filling, creation of Jobs and investigation of options for processing and adding value to recycled products.
Benefits to the Community
Reduction of Landfills – It will lead to less strain on the environment by reducing the number of landfills. As the population grows, it is important to have sustainable waste management policies so that the environment is not strained (Jeston & Nellis, 2014). Pollution will also be kept in check and the Kewdale landscape will be maintained.
Conservation of Natural Resources – Recycling enables the use of junk items over and over again hence new resources do not have to be exploited. It also leads to conservation of natural resources like water, oil, gas and timber. It also creates more emphasis on technology to utilize whatever already exists. Elite recycling centre will be able to collaborate with other companies so that they convert recyclable material into new items.
Creation of Employment – There will be creation of employment within the Kewdale community as Elite recycling centre opens. The centre will need workers who will sort the items and for general office management. As the industry grows, more and more staff will be employed.
Cash Benefits – Elite Recycling management will be able to benefit from their recycling activities. Financial benefits will be realized and this will enable the company to sustain itself
Saving of Money-Overall, it will lead to saving of money within the economy. The cost of maintaining landfills is reduced and due to recycling, a lot is saved on having to mine new resources.
Reduction of Greenhouse Gas Emissions- Recycling of products leads to energy saving hence leading to less greenhouse gas emissions. Greenhouse gases are usually responsible for an increase in global warming. Recycling will lead to less air and water pollution in the Kewdale community by reducing the number of pollutants, which are released into the environment.
Energy saving- A lot of energy is saved when recycling occurs hence organizations are able to save on energy that would be needed in production of new products.
Stimulating Use of Green Technologies – The use of recycling products will push the Kewdale community into using renewable technology like solar, wind and geothermal means. This will lead to energy conservation and reduction of pollution.
Bringing the community together-The Kewdale community will be brought together through the Elite recycling centre. The community will be able to come up with programs and initiatives for improving waste management.
Prevent Biodiversity Loss – Less raw material will be needed in recycling of products. There will be less soil erosion and water pollution in Kewdale hence protection of the environment.
Expected Outputs
Paints will be mixed with waste solvents and used as an alternative to fuel in cement kilns (Chadwick, 2013). Metal paint containers are recycled.
Lead and acid batteries are sent to recyclers where the lead, acid and plastic are recovered and recycled.
Gas cylinders have any remaining gas recovered, and the steel is sent for recycling. Many cylinders are retested and recycled into the hire market.
Fluorescent tubes and globes contain mercury. Tube recycling involves crushing the tubes to separate the phosphor powder from the glass. The powder is fed through receiving containers with a filtering process to capture any fugitive mercury emissions. The mercury is then processed for separation by distillation and sold for a range of industrial uses. The glass and metals remaining from the process are also recycled.
Gas bottles have any residual gas captured for reuse. Undamaged bottles are retested, re-stamped and entered into the hire industry. Damaged bottles are punctured and recycled as scrap metal.
Used oils are processed to become a lubricant or used for waste to energy
Performance measurement (quantifiable)
The performance measurement of the project will be done through (Wheelen & Hunger, 2017) projected Income, projected cash-flows, impact to the community and benefits received from the recycling plant
Collections – Ensuring that the collection of waste is sustainable and continous so that Elite Recycling Community continues to sustain itself.
Processing – Elite Center will ensure that it produces quality-recycled products and with time, it expands its activity beyond collection and resale. The other aim is to provide employment.
Marketing – Elite Recycling Centre will have a workshop with eco-waste collectors and the community to encourage households to drop off waste. The aim is to become the main household waste collector in Kewdale.
Education and Awareness Building – Workshops will be held to encourage recycling and separation in the source homes. Community groups in churches and schools will be encouraged to visit the Elite centre and learn more on recycling.
Training – Training of the staff at Elite and engaging of NGOs and the local municipal council to fund and encourage recycling.
The Australian population reached 24 million in February 2016. Waste generation is considered as a function of population growth and Australians now produce 50 million tons of waste annually. This averages over two tones per person. Between 1996-2015, the population rose by 38% and waste generation went up by 170%. Recycling has also been growing at a faster rate since 2005 hence leading to a decline in waste, which is sent to the landfill. State governments should set policies and direction for management of waste. There are many recycling and waste management companies in Australia who are assisting the government in waste reduction. There is a large market for this project as many households have waste, which they are unsure of how to manage. The level of waste keeps going up with urbanization hence market for recycling companies is still large.
SWOT Analysis
|
STRENGTHS Central Location of Elite Waste Recycling Center Regular and Free waste Collection Strong Awareness and Training |
WEAKNESSES No system yet for solid waste management Obtaining government support Yet to get strong recycling systems |
|
OPPORTUNITIES Food waste sorting Low management of waste dumping |
THREATS Competition Some household still not keen on waste management |
Output analysis
Elite Waste Recycling center is centrally located hence will be easily accessible to the residents of Kewdale hence it will be easy for them to access and take their household waste. The fact that residents are not paying for waste management will mean that many will be attracted to the facility (Gilding, Gregory & Cosson, 2015). There will be strong awareness and training of the community so that they embrace environmental policies. The target market is individual households and small businesses that are not able to successfully dispose wastes without hiring waste management companies. The services will be specifically marketed to construction sites, farmers, dry cleaners, printing companies ,automobile repair shops, photo processing centers ,household who generate sludge and hazardous waste and small business owners who generate hazardous waste.
The benefits review plan will look at the benefits that the project will bring to the community. This will be looked at in terms of costing and impact to the community.
The project will take 11 months. The milestones will be as follows.
|
Milestone |
Start Date |
End Date |
Budget |
|
Complete Business Plan |
1.8.17 |
30.8.17 |
|
|
Funding |
30.10.17 |
30.11.17 |
|
|
Site Preparation |
1.12.17 |
14.12.17 |
|
|
Machinery Purchase |
15.12.17 |
31.12.17 |
$15000 |
|
Setup of Machinery |
1.1.18 |
1.2.18 |
|
|
Hire Staff |
1.3.18 |
30.3.18 |
$ 4000 |
|
Recycling Process |
1.4.18 |
Ongoing |
Overall Budget
Start-Up Requirements for Elite Waste Recycling Centre
|
Requirements |
Cost |
|
Legal |
$ 500 |
|
Licenses |
$ 3000 |
|
Insurance |
$ 1000 |
|
Brochures |
$ 500 |
|
Advertising |
$ 1000 |
|
Employee Salaries |
$ 4000 |
|
Start-up Assets-Machine Purchase |
$ 15000 |
|
Website |
$ 2000 |
|
Furniture and Supplies |
$ 5000 |
|
TOTAL |
$ 32000 |
Tools Used for Cost Analysis
Cash Flow Projections
|
Year 1 |
Year 2 |
Year 3 |
|
|
Cash Sales |
130400 |
180700 |
200300 |
|
Cash from Receivables |
110000 |
181000 |
198000 |
|
Subtotal Spent on Operations |
240400 |
361700 |
398300 |
|
Cash Spending |
56000 |
65000 |
77000 |
|
Bill Payments |
30000 |
34000 |
39000 |
|
Total Expenditure |
86000 |
99000 |
116000 |
|
Long Term Liabilities |
10800 |
11500 |
13700 |
|
Long term Assets |
31000 |
40000 |
|
|
Total Cash Spent |
96800 |
141500 |
169700 |
|
Net Cash Flow |
143600 |
220200 |
228600 |
Net present value (NPV) analysis
Return on investment (ROI)
|
Initial Investment |
Earnings |
Return on Investment |
|
$ 32000 |
Year 1- 50,800 |
58.75% |
|
$ 32000 |
Year 2- 73,200 |
128.75% |
|
$ 32000 |
Year 3- 87,400 |
173.125% (Smith, 2017) |
Payback Analysis
|
Initial Investment |
Periodic Cash Flow |
Payback Period |
|
$ 32000 |
Year 1- 143,600 |
0.22 |
|
$ 32000 |
Year 2- 220,200 |
0.15 |
|
$ 32000 |
Year 3-228,600 |
0.14 (Joseph, 2014) |
Five Major Risks
The company may face reputational Risk if the recycling firm is not managed properly. If the company does not serve customers well there will be the risk of its reputation getting spoilt and this will lead to loss of customers.
Financial Risk is another risk, which will be faced by the company. If the company does not get enough funding or recycle enough to generate income to run operations, there will be a risk of operations failing.
Disaster Risk occurs due to the risk of any arising disasters. The company faces the risk of natural disasters like floods occurring, and also other operational factors can also lead to disasters.
Operational Risk will occur when the operations of the company cannot go on well due to hindrances in the flow of operations. It can be brought about by many factors like staff not being trained on their work or machines not being adequate for the recycling process.
Technological Risk will occur of the company does not keep up with latest technologies. This will make the company lag back in terms of its recycling process. They have to know the latest technology used in recycling.
Managing Risks
Elite Recycling centre will have to come up with a risk register that will enable it manage all the risks that it faces (Kerzner, 2017). The risk register will be reviewed frequently depending on the impact of the risk and the probability.
|
Risk |
Management |
|
Reputational |
Ensure efficiency in service |
|
Financial |
Ensure there is enough funding Ensure recycling activities are adequate to bring in funding |
|
Disaster |
Business Continuity Plan Disaster Management Plan |
|
Operational |
Ensure staff are trained and procedures followed |
|
Technological |
Keeping up with technology |
The company will identify and assess risks and classify them according to different risk categories. They have to know the numbers so that they can identify and rank risks by order of magnitude. Risks must be continually reassessed as the market changes hence risks also keep changing. Elite waste management company must commit adequate resources that will enable adequate risk analysis and risk management. The cost of risk mitigation must be reviewed, as strategies will depend on the capacity of the business to sustain risks and any possible losses. The company will ensure that the exposure to risk is reduced. The company will also create a risk aware culture in the whole organization. The business must be educated in the practical aspects of risk management to all employees. Responsibilities on risk management should be clear and training and awareness building must take place. This will lead the company to have a risk management culture that will lead to business success.?
Conclusion?
The Elite Waste Recycling Centre is a viable project, which will be beneficial to the community. The project should go ahead as it will be beneficial to the sustainability of the environment. It should therefore be implemented, as the benefits are immense.
References
Chadwick, G. (2013). A systems view of planning: towards a theory of the urban and regional planning process. Elsevier.
Gilding, M., Gregory, S., & Cosson, B. (2015). Motives and outcomes in family business succession planning. Entrepreneurship Theory and Practice, 39(2), 299-312.
Jeston, J., & Nelis, J. (2014). Business process management. NY,Routledge.
Joseph, M. (2014). Debt to Society: Accounting for Life under. University of Minnesota Press.
Kerzner, H. (2017). Project Planning. Project Management Case Studies, 179-200.
Ushio, S., & Kazusa, Y. (2013). The development of accounting calculations as chronological network effects: Growth rings of accounting calculations. Journal of Accounting & Organizational Change, 9(4), 380-407.
Wheelen, T. L., & Hunger, J. D. (2017). Strategic management and business policy. Ny,pearson.
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