Individual Assignment

TECHNOLOGY PARK MALAYSIA

BM028-3-M-ENT

ENTREPRENEURSHIP

NPCMF1807MBA
HAND OUT DATE: 04 Aug, 2019
HAND IN DATE: 04 Dec, 2019
WEIGHTAGE: 50%
STUDENT ID: NP000269-NP000257

INSTRUCTIONS TO CANDIDATES:
1 Submit your assignment at the administrative counter
2 Students are advised to underpin their answers with the use of references (cited
using the Harvard Name System of Referencing)
3 Late submission will be awarded zero (0) unless Extenuating Circumstances (EC)
are upheld
4 Cases of plagiarism will be penalized

5 The assignment should be bound in an appropriate style (comb bound or stapled)

6 Where the assignment should be submitted in both hardcopy and softcopy, the
softcopy of the written assignment and source code (where appropriate) should be on
a CD in an envelope / CD cover and attached to the hardcopy

7 You must obtain 50% overall to pass this module

1
 Table of Contents

1. Introduction to Plastic Pollution......................................................................................3

1.1 Background of the company...................................................................................................3
1.2 Objectives...............................................................................................................................4

1.3 The keys to success.........................................................................................................4

2. Description of product and services.................................................................................5

2.1 The purpose of the Business...................................................................................................6

3. SWOT, PEST and competitive analysis.............................................................................7

3.1 SWOT Analysis.......................................................................................................................7
 Strengths:...................................................................................................................................8
 Weakness:..................................................................................................................................8
 Opportunities:............................................................................................................................8
 Threats.......................................................................................................................................9
 Economical:.............................................................................................................................10

3.3 Competitor Analysis......................................................................................................11

4. Management Team composition...................................................................................12

5. Market Analysis.............................................................................................................13
5.1 Marketing strategy...............................................................................................................13
5.2 Marketing mix Strategies.....................................................................................................14
 Product:...................................................................................................................................14
 Price:........................................................................................................................................15
 Place:........................................................................................................................................15
 Promotion:...............................................................................................................................15
5.3 Marketing research...............................................................................................................15
5.4 Financial Plan.......................................................................................................................16

References...........................................................................................................................18
1. Introduction to Plastic Pollution

The plastic pollution is produced by the collection of waste plastic in the environment. The
plastic pollution can be classified as the primary plastic that includes the butts of cigarette and
the caps of bottle and the secondary plastics involves the result of degradation from the
principal ones. It is defined as by the size from the small plastics like the small rudiments of
scattered plastic in the atmosphere. These days can be found on every beach all around the
world. The pollution is coming in the form of plastic litter, Marine Debris, the plastic particle
pollution that has become most common today. “Today the plastic pollution has accumulated in
the environment of the synthetic plastic products that helps in showing where actually the
problems are being created for wildlife with their habitats as well as human populations
[ CITATION Moo19 \l 1033 ].

1.1 Background of the company

Weave Bags, Inc. is a premium handbag manufacturing company that uses recycled plastic
materials as a primary raw material. The vision of the company is to encourage the use of
recycled material into the mainstream of purse manufacturing industry and hence eliminates the
plastic wrapper pollution in Nepal. The mission of the company is to establish itself as a leading
handbag manufacturer in Nepal within the next 5 years. Weave Bags will manufacture premium
quality handmade handbags that provide maximum utility to the customers in terms of
functionality and also have an artistic value. The products will meet the fashion demand of
today’s youth.

Although handbag industry in Nepal is a highly competitive market, there is no clear leader in
the market. Also, a lot of the handbags in the market are similar in material and design. Fake
products at different price point are also common in the market. The customers of Weave Bags
will have a completely unique product that is clearly distinct and premium than any other
handbags in the market. Weave Bags, Inc. wants to manufacture its products so that owning its
bag will be a matter of privilege and style. The initial priority for the company will be to
establish one outlet in a projected shopping mall in Kathmandu. Later, the strength will be to
further develop retail openings in the surrounding districts.

The strategy has been arranged to attain a position for the primary introduction of this concept.
Supplementary financing that will need to be protected for the two successive outlets,
anticipated in month 10 and early in year three. The supporting, in addition to the wealth
assistances from shareholders, will allow Weave Bags to positively open and enlarge through
year two.

1.2 Objectives

 To establish a presence as a successful handbag manufacturer and gain a market share in
Kathmandu's handbag manufacturing industry.

 To make Weave Bags a must have brand for fashion conscious youth.

 Develop into a number of channels within the country by year three and collaborate with
international brands for new product designs.

1.3 The keys to success

 It creates exclusive, advanced, artistic and premium products that will distinguish us from the
rest of the opposition.
 Control costs at all times, in all areas and implement a conservative approach to growth policy. We
are providing more than sufficient fund to open more than one outlet; we want to be on the safe side
of the business.
 Selling the products that have are of the maximum quality, as well as maintenance the
customers happy with all of our product lines.
 70% of approval is provides to our customers that maintains the equal of excellent services
among other participants.
 Inspiring is the two most significant values in fashion industry: which includes trademark
and the image, as these two ingredients is a couple of main drivers in marketing
telecommunications.
 Promoting of the outstanding values of company society and business philosophy.

2. Description of product and services

The following highlights some of the products that are made by Weave Bags, Inc company by
the recycle products: -

1. Cotton & Canvas Bags:

The cotton and canvas bags are usually the most mutual bags, which are made by the natural
fibers. These bags are usually made from the organic cottons, and the recycled cotton bags and
traditional cotton. The traditional cotton remains usually made up of renewable crop source, but
it entails insecticides as well as chemicals and it needs the enormous amount of water.

2. Calico Reusable Bags:

Calico Reusable Bags are also known as the cotton fiber that is usually unbleached and is fully
processed. As, it is basically a cotton bag; and is very reserve concentrated, that gives a high
carbon footprint. It should be used many times so that the balance of the environment
performance has there own alternatives. It fabric is relatively very cheap to produce.

3. Jute Reusable Bags:

It is popular for the ordinary plant fiber that can be turned into uneven and the tough threads
being used. The jute reusable grows in the areas were there high rainfall and that needs little to
no pesticides or the irrigation.  They often mentioned to as hessian in Europe and burlap in North
America.
4. Reusable Paper Bags:

Specialty, non-grocery stores and the grocery stores are using the paper bags most often, but
reusing of the bags can create problematic situation. There is no important recycle of the bag.
They misplace power mostly. These products are made from renewable resources.

5. Nylon Reusable Bags:

The Nylon Reusable bags are that type of bags made up of synthetic polymer initially made so that
it can be replace with silk in fabrics and the materials are compacted into a small storage and there
should be the ease of the time. As we know that the bag that are made from nylon are strong and
durable.

6. Hemp Reusable Bags

Hemp Reusable bags are the natural fiber bags that are stronger than the cotton. This type of
reusable bags is recycled for textiles and as well as industrialized application. These bags are
dissimilar plant from the similar family of hallucinogenic marijuana. Crops usually grow in the
poor soils, those droughts the olerant and grow well without pesticides or the fertilizers.

2.1 The purpose of the Business

The purpose of this business is to those reusable bags that company has no or very less ideas about
how to make such products. The schedule these days of the people are very busy, these days as
they prefer ready-made products and also want immediate delivery to their home-place.
3. SWOT, PEST and competitive analysis

In this section it is necessary to analyze SWOT, PEST and competitive analysis, as the PEST
and SWOT are closely connected methods towards the business analysis.

3.1 SWOT Analysis

SWOT analysis can be defined as the gathering of the companies’ strengths, weakness,
opportunities and threats. The main objective of SWOT analysis is to help organizations to develop
a full consciousness that helps in business decision-making process. The performing of SWOT
analysis is necessary before committing any kind of the company actions, whether there is
exploring new initiatives, revamping internal policies and the considering opportunities, finally it
is necessary to determine recommendations and the strategies [CITATION Sch23 \l 1033 ].
 Fig 1- SWOT Analysis
 Strengths:

There are always promotions on environmental issues and it is particularly targeted on the
reusable plastic bags. The main policy to minimalize the use of plastic bags with the help of
reusable bags, and it has the longer use of the durability and convenience. As, the plastic
campaigns are developed in the mass media. School and churches does the collaborating with
parents and students to help sell the bags and encourage the use of reusable bags. Also, churches
use reusable bags as a good foundation for fundraising to increase the budget while encouraging
eco-friendly. The cost of material is low and has government subsidiary. It has artistic value, and
has become easy for the people to endorse, we can find the Niche market.

 Weakness:

The plastic bags movements have done different events all everywhere the country to benefit
prospective awareness of the existing condition and the plastic bags problem. However, it appears
to be campaigns that is rarely posted and is further news about how the actions move contributors
and whether knowledge that participants learned from the campaigns have changed their daily life.
The campaigns, such as reuse of the Bag campaign, have hurled their own reuse bags to the
markets. Most use of recycles reuse bags are not in different colors and has boring designs of few
in the other words, a logo and picture that makes the bag unwanted as well as featured. There is
lack of style and as well designs, that the bags are not usually not attractive enough for people to
carry around. The low product lifecycle can be found in reusable products, R&D cost are needed to
increase utility and strength. The high cost is needed to create buzz in the market and is difficult to
find usable wrappers in bulk.

 Opportunities:
In the current, political and in the media situation, the plastics bags usually promotes reusable bag
campaigns will increase more kindness and permit more well organized influence to spectators. At
the same time, a product that uses fewer resources and produces fewer impurities becomes popular,
that will absolutely drive the demand for the reusable bags. People are using reusable bags more
these days and have become meaningful method for raising the fund. The partnership could also be
developed with the local markets or in the grocery stores and as well as school organizations that
includes sororities and fraternities. Many campaigns launched the customized reusable bags that
creates customizing feature on the own website or they corporates with current customizing
website that involves Zazzle, with the private characters been added, the viewers are more
enthusiastic to carry that bags everywhere and present them to the networks.

 Threats

Many cities have disqualified and imposed tax on plastic bags. These campaigns are restricted
power that promotes plastic bag ban on the number in the large scale that make everyone willingly
are not using the plastic bags. The industry of plastic bags includes manufactures the lubricant
companies and the raw material suppliers are faced to the plastic bag because they will
conceivably suffering significant reduction in production levels and as well as sales if these
campaigns will run magnificently. This type of businesses or industry regularly sponsors local
campaigns to against plastic bag bans or fees in order to sustain the business and the profits. The
reusable bags are very luxurious to manufacture as well as to retailed at the advanced prices rather
than to plastic bags, as the bags are not durable, not water resistant.. The main threats are there is
increased number of competitors and negative initial review from customers can be found.

3.2 PEST Analysis

PEST analysis is a condensation of political, economic, social and technological. The way of
understanding how the external forces impact the production. In 1967 the PEST analysis was
created by Harvard professor Francis Aguilar and should be included in every business plan, with
the supplement to the SWOT analysis, as it is part of the risk management and strategy design.
The entrepreneurs, usually tries to predict how the products and the services will reverberate
between the public. However, there will always be factors outside of the control affecting how
business will operate. One method for discovering and measuring those factors is the PEST
analysis [ CITATION Jen18 \l 1033 ].

Fig 2: PEST Analysis

 Political:
There is political support of the government initiatives towards the plastic pollution reduction.
Government are taking activities as well as ensuring confirming that the companies who are
manufacturing the plastic products or either the company are selling with the wrapper are
mainly accountable for managing or looking after the collection and they are recycling their
plastic waste.

 Economical:
The plastic pollution is economically viable because of low cost of raw materials and artistic
value of the creation.

 Social:
There is social acceptance of the products due to the clean initiatives found.

 Technology:
The technology can be found of the lost cost and there is also the job creation for the low level
of the manpower.
3.3 Competitor Analysis

Competitive analysis is analysis of the competitors that the business compares with each other.
The strengths and weaknesses is the competition, begins to formulate and how to give the
company an advantage. It helps professional to determine the prospective benefits and obstacles
within a target advertise around of a product as well as service, it generally helps the products to
supervisor, direct and indirect competitors that are performing tactics that includes marketing,
valuing, and dissemination.

Some of the major players of the global recycled plastic markets are as follows: -

1. Custom Polymers
2. B&B plastics INC, B. Schoenberg & Co, Inc
3. Envision Plastics
4. Jayplas, Joe’s plastics, KK Asia (HK)
5. Berry global Inc, MBA polymers Inc
6. Plastipak Holdings, Inc
7. Green line polymers

In the high competitive markets, the strategic decisions strongly influences business outcomes,
and become even conclusive in the relation to survival and not with this firm along time. Many
plastic industries divide transformed plastic industry, plastic laminate, plastic packaging and
artifacts. The amount of plastic processed in the plastic transformation market overcame.
4. Management Team composition

The management team composition is such collection of individuals’ peoples that functions at
the greater levels of an organization as they have regular accountability for handling other
personalities that maintains the responsibility for key business purposes. The team is also
usually accountable for putting together the business strategy and ensuring the business
objectives are met. The Management teams are held responsible by the companies’ board of
directors.

The management team composition of this company includes the following members of the company: -

1. Founder and CEO- Ram thapa

2. Financial Officer:- Madhu Ghimire
3. Marketing Manager:- Karuna Khadka
5. Market Analysis

Market analysis mainly specifies knowledge about the industries, customers, and
competitors. It refers to the larger part of the market research and is known as the essential
element of the business plan. Where the business idea is documented in writing. The specific
market is taken into account under the market analysis. The companies can identify with the
help of the result for that specific market that has been displayed. Usually we can find the
target groups that form the basis of the market analysis. There is strong demand for the
plastic that has been recycled and as it is working in the industry’s favor. The plastic
packaging is usually answering to all the consumer desires. The recycled bag has 10 crore of
the annual business that is very good for the company. The recent market share of the
recycled bags is 15%, per piece of the bag we are selling for R.s 200 so that every customer
can purchase the bag. The expected growth of the bag consumption is almost of 10%.

5.1 Marketing strategy

Marketing can be defined as the activity, the organizations and processes that creates,
communications, delivers and exchange offers that includes the value of customers whereas, the
strategy is known as the action plan. The strategy prepared by us is not complex or we can say that it
is organized in simple form. It is an essential part for every business to reach the goal.

In our country Nepal most we can find that in many groceries shops offers the consumers
the shopping bags that is reusable, we can also find that some traders have the method to do
their part so that it can be cut down in the plastic waste. Many companies choose to be
focused on the plastic packaging material production that includes varieties of recycled
products.
 5.2 Marketing mix Strategies

The marketing mix is defined as the set of actions and as well as strategies which is used by
the company for the promotion of its brand. The marketing mix strategies usually includes
the 4P’s that includes typical marketing mix and they are price , product, place and
promotion. In the recent days marketing mix have using the Ps like packaging, positioning,
people and even the vital mix elements. It is the set of controllable, strategically marketing
tools that are used by the company to produce a preferred response from its target market.
Marketing mix consists everything that is influenced by the company and the demand for its
products.

FIG 3: Marketing Mix strategy

 Product:

The products will be handmade and according to the design and it will be under the supervision
of the renowned artist. Many type of handbag products are being found in the market and the
customers are attracted towards it.
 Price:

The premium pricing strategy will be implemented that is based on the complexity of the
design and it is based on the number of hours taken to do the work. The company arranges
various systems for the customers like it will be operating from the online store, third party
delivery service for the online customers and the cash can be done at the time of delivery.

 Place:

It products can be found anywhere at the exclusive high traffic malls. The place or
distribution represents all the activities that can move a firm of the product from its place to
the customer. This business provides the delivery facilities to the customer destination. Since,
our targeted people are religious people so, the business will be near the main roads so that
people can be attracted towards it. Some of the intermediaries we use to reach by the help of
facebook, twitter, Instagram etc.

 Promotion:

The promotion of the products can be done by the help of endorsement conscious celebrity
and by the influential artists. It can also be done by the help of social media promotions for
the online websites. The advertisement can be done by the help of YouTube through the
influencers. The promotion mainly refers to such activities that firms take to communicate
the merits of its product to its target market. The Promotion is the main goal to persuade
people to buy product. The intention will be highlighted to benefits of utilizing.

5.3 Marketing research

Marketing Research can be defined as the process that identifies the market value and as well
as the targeted customers. It is an important element that introduces the products and services
to produce value in the mind of the customers. The customer’s perception is different from
each other such as the way one believes and may not be same with others believe. It is very
 essential to find out customer’s perception about the product and services you are offering
them. So, this factor needs to be analyzed which is possible through research. The Research
will give us a clear picture of both negative and positive sides about the products.

In the year 2018, the global reusable bag market share was a enormous of 400 million USD
and is predictable to reach 550 million USD by the end of 2022.

5.4 Financial Plan

Weave Bags, is focused towards providing various type of recycled products of the bags.
So, for the objective, which is the success of Weave bags, it is essential to have the financial
growth. The Repetition has allowed for 40 days to collect the receivables due to knowledge
and experience with the customers in the industry. The account receivable financing of 75%
at the interest rate of 15% per annum has been offered.

Assumptions

Company Capital Structure

Capital Structure Amount (Rs.) Weight (%)
Equity 40000 200
Debt 5000 150
Total 45000 350

Assets Depreciation rate

Calico Reusable Bags: 50%

Nylon Reusable Bags: 40%

Reusable Paper Bags: 45%

The company purchased the different kind of fixed assets that are essential for the smooth
operation of the activities. The company follows the straight-line method of depreciation for
fixed assets. They will follow the rate of depreciation based on the assets category.
References

Jenifer. (2018, Sep 21). What is PEST analysis .

Moore, C. (2019, March 12). Plastic Pollution. Retrieved December 03, 2019, from
http://www.britannica.com/science/plastic-pollution

Schooley, S. (2019, June 23). Swot Analysis: What it is and when to use it .