Comparative Analysis of Recycling Industry †MyAssignmenthelp.com

Question: Discuss about the Comparative Analysis of Recycling Industry. Answer: Introduction: The company GANK had been started by Gurpreet Singh, Alisha Dimma, Navjot Singh and Khushpal Singh, and they have been in business for almost 5 years. They can be considered as a very new and recent business group that deals with using biodegradable items to create plastic pots and other decorative and customizable items at a cheap price. The company GANK has been conducting business for almost 3 years and is still very recent to the market. It is due to this reason that the total number of consumers at present is quite low and hence sales have been low and unsatisfactory. Therefore, the group wishes to expand its business operations and reach a wider consumer base than it is currently operating on. The company GANK is mainly focused with providing environment friendly products to its consumers. The company converts waste into decorative items and lays stress on the preservation of the environment. The company wishes to extend its range of products and services that it provides to the consumers and, increase its overall annual profits. Goals and Objectives The main goals and objectives of the company are as follows:- To increase the overall sales of the company by 50% in the coming months, To increase its current consumer base and target other areas and potential consumers, To provide environmental friendly products to its consumers, made out of recyclable waste and reduce the impact of pollution and waste on the environment, To provide unique decorative items to its consumers, and lastly, To provide products based on the choice or preferences of the consumers and customizing accordingly. Products and Services The company is concerned with the creation of plastic pots. They are made out of plastic bottles and waste, which are non-biodegradable and have adverse affects on the environment. The products being made out of plastic are breakage proof and can be either used as a decorative item or as containers for storing other items. The plastic pots are filled with stones, marbles, sand or mud depending on the customer choice. The customers may also provide their own plastic items for customization to the company. The company also provides options to its customers regarding the type of color that is to be used, the nature of the product and its application and various other options. At present, there are around 500 plastic recycling companies in North America and they are in direct competition to the GANK Company. The main problem that may arise is the sourcing of large number of plastic items that have been used before and need to be cleaned and refined at an effective cost that would allow the company to operate at a competitive cost (Collis Hussey, 2013). The Canadian Plastic Industries Association (CPIA) supports the plastic recycling business and the industry currently has thousands of employees under its payroll. Almost 79% of the plastic waste is reported to have been reclaimed by the plastic recycling industry, which reveals that plastic recycling is a popular practice in Canada and the market is currently in its growing phase. It has been observed that almost 322 million kg of plastic has been collected for recycling purposes (Nguyen, Stuchtey, Zils, 2014). Currently the industry is only focused on conducting business within North America and exports are not yet conducted on a large scale basis (da Cruz, et al., 2014). It has been observed that the plastic industry has contributed to 6.5% rise in the GDP of Canada (Huysman, 2017). It has been observed that major companies have been acquiring medium and small sized companies for the purpose of gaining access to their consumer base (Coelho de Brito, 2013). The major players of the plastic recycling industry are:- Petco in Montreal, Canada Klockner, VA Kama, Pittsburgh, PA Advance Extrusion, Becker, MN Market Analysis The market analysis of the GANK Company is conducted regarding the following factors:- Political- The GANK Company falls under the green technology line of policy. The business conducted by the company has no adverse impact on the environment and also serves to reduce the generation of harmful waste in the environment, and this nature of business is supported by the CPIA. Therefore, the company does not face any political problems in its business operations (Ohnishi, et al., 2016). The company is also associated with internal business within Canada and so remains unaffected by international political conflicts. Economical- Canada has the presence of a mixed economic system and the country is placed at the 10th position in terms of its nominal GDP and 17th position in terms of GDP by PPP on the global ranking. Therefore, the economic conditions of the country are favorable for the GANK Company to conduct its business here. Social- The business conducted by the company is of great significance to the society since, it addresses the issue of degradation of environment and plans to control the level of impact on the environment (Man, Naidu Wong, 2013). The company makes use of plastic wastes and items and recycles them into new products, promoting sustainable development and also being responsible towards increasing the awareness of the impact of non biodegradable waste on the soil to the common people (Ferrell, Fraedrich Ferrell, 2013). Apart from this the company is involved in CSR activities as well, donating 95% of its earnings to the sexual assault centre of Edmonton. Technological- The products sold by the company are mostly hand made in nature. Therefore, the use of technology is very limited or almost absent. Additional technological costs therefore are very limited (Buekens Yang, 2014). Environmental- The company is focused on the improvement of the environment and also reducing the plastic waste accumulated in it. Therefore, it can be said that the business conducted by the company has no adverse effects on the environment and rather focuses on its sustainability and development of the environment (Zhang Chen, 2013). Legal- The company needs to operate keeping in mind the policies imposed by the Canadian Government regarding the recycling of plastic waste. However, since the products it sells are environment friendly and have been made from accumulated plastic waste, therefore not many strict laws are imposed on the company (Dalhammar, 2016). However it must follow the protocols of cleaning and refining the plastic waste before being recycled into a new product. Similar to the political factors, the company remains unaffected by changes in international legal policies and taxes since its business only takes place domestically. The products that are sold have no specific target consumers. However, the company targets individuals from the age of 15 years to 50 years regarding all its products. It also emphasizes on targeting the female population more as they are inclined to buy decorative items more than males. Strategic Positioning and Competitive Advantage The company has kept its product pricing at a very low and affordable range. It provides recycled products, which eliminate the issues regarding waste disposal (Gandy, 2014). Apart from this, the company also customizes products for the consumers according to their choices, wants and needs, therefore fulfilling the requirements of the consumers and satisfying their needs. The business conducted can be said to be small scale in nature and would not be affected by large corporations and competition is also low (Bansal DesJardine, 2014). The company at present enjoys a brand image of being an eco-friendly company that produces and sells environment friendly products. Therefore, the goodwill of the company has the potential to see a positive growth in the future (Kumar Christodoulopoulou, 2014). Product/Service Description The products are made from plastic wastes and are transformed into decorative items. They are in the form of plastic posts, wall hanging dcor, plastic containers and others. It also provides customized products according to the customer preference. The plastic pots are priced at $5 and the other items are priced at $2 per item. The price of customizable items may vary from $6 to $10. The company at present is concerned with domestic/internal business within Canada. The products are distributed via the staff and the operations of the company are not large scale in nature. The company has recently announced the scheme of providing a free item on the purchase of two items. Apart from this it also states that 95% of its accumulated income is contributed to the sexual assault centre in Edmonton. The company also has the presence of an Instagram and Facebook page where the pictures of new products are posted from time to time for promotional purposes. Advertisements in broadcast or print media is absent in case of the company. Management and Human Resources The GANK Company consists of 4 owners who serve as the management heads. Being a small-scale company, the staff comprises of 10 members.The owners/managers act as the advisors as well as consultants for the company, with initial discussions with members of staffs regarding implementation of new decisions. The salary for the staff members is mostly target based depending on the number of sales they have secured. Apart from this, the company donates almost all of its income and hence, the salary of the employees is quite low amounting to $100. Most of the staff members work part time in the organization and hence there is no requirement for providing additional benefits and incentives. The key operational issues of the company are as follows:- It lacks in adequate number of staff. It donates almost all of its income and therefore the costs of operation are difficult to recover. The company lacks proper promotional activities. The low scale of operations of the company threatens its survival in future business operations. Preliminary Financials The start up cost of the company comprises of a 20% return in investment.The revenue generated in the first year of business is $1,1236 and cost of goods sold in year 1 is $247. The tax is calculated annually at 30% and in case of long term debt being used to finance operations, the loan value is $1500. The total startup expense is $1350 and the total startup funds is $1750. References Zhang, H., Chen, M. (2013). Research on the recycling industry development model for typical exterior plastic components of end-of-life passenger vehicle based on the SWOT method.Waste management,33(11), 2341-2353. Buekens, A., Yang, J. (2014). Recycling of WEEE plastics: a review.Journal of Material Cycles and Waste Management,16(3), 415-434. Ohnishi, S., Fujii, M., Fujita, T., Matsumoto, T., Dong, L., Akiyama, H., Dong, H. (2016). 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