Develop a Strategic Business Plan for a New Venture

This Strategic Management Process should contain whatever is necessary to start-up

a company from scratch, including the new company’s philosophy, mission, objectives,

strategies and tactics, CSR, an analysis of the firm’s internal and external environment,

organizational structure, leadership and, and one-page financial report justifying the

firm’s survival for at least a year. You should justify your choices in terms of the chosen

industry/sector on the grounds of innovation, competitive advantage and, company’s

sustained growth and survival. Your budget is $150,000 (US).

Taneh Poly Limited (a subsidiary of Taneh Investments Inc.)

STRATEGIC BUSINESS PLAN

MANUFACTURE OF RECYCLED PLASTIC LUMBER FROM PLASTIC WASTE

(2019-2023)
1.0 STRATEGIC RATIONALE

1.1 Introduction

The planned details structure of its strategic business plan of aventure in a west African

Nation, Nigeriafor the production of plastic logsthrough waste plastic recycling. This

strategic business plan is in accordance withthe proposed strategy of Taneh

Investments Inc. toward diversification into untouched parts shoreside without Taneh

Investments Inc. footmark. This will guarantee sustained enrichments of the

development of human capital, delivering of its social corporate responsibility, robust&

improved management risk platform, accounting and treasury purpose. Regard to this,

a subsidiary business Taneh Poly Ltd. has been merged in Nigeria as a tool through

which its holding company, Tenah Investments Inc. will blowout its businessfootmark

into the continent of Africa as fragment of its magnificent strategy toward meeting its

company’s long period objectives and a broad strategy toward meeting strategy of the

company in the short period.

1.2 Strategic Resolve

Taneh Investments Inc. has seen the need towardfor the company’s diversification

through re-investing into shoreside company’s toendureinexpensive, maintainable and

profitable in its operations. Taneh Poly Ltd. is thus incorporated from a framework of an

independent entity with its company’s mission, vision, objective strategic, procedures

and policies.

Taneh business plan is organized toward the resolve of provisionthe direction and

strategic plan of Taneh Poly Ltd. For a period of five-year strategic business series of

Taneh Investments Inc. with its objectives strategic and capitals for company’s
evolution and sustainability. Taneh Poly Ltd. will need a preliminary capital booster of

$150,000 (US).

It is imperious that any organization that needs sustenance in the short to long period

and preserveviablebenefitmust dedicate time towardforecasting, defining the essence

and resolve of its reality and how it will interrelate and respond to its situation at both

level of micro and macro.

2.0 OVERVIEW

2.1 Background

Tenah Poly Ltd is an entity with its incorporation in Nigeria and absolutely possessed

subsidiary of Taneh Investments Inc. that is incorporated in Nigeria.

2.2 Vision and Mission

The corporate mission of Taneh Poly Ltd. is towardachievingnot even a singular poly

waste in Nigeria and the other parts of Africa through its technological advanced

recycling of its solid poly waste and develop the choice of for the lumber of plastic

being recycled. Thus, contributing to the development of country economic and make

available a product that becomes the only choice of customers.

The corporate vision statement of the company is to facility the market share by

contributing to theunparalleledlumber innovative and other plastic products being

recycled.

2.3 Core Values

The corporate core values of the establishmentcomprise of excellence, innovation,

collaboration, honesty, and responsiveness of customer.

These organization values are vitaldue to their support of vision, definition of the

culture of organization and replicateaccurately what are the values of the organization.

2.4 Governance

The business will be incorporated in Nigeria and will function as

anabsolutelypossessed subsidiary of the holding business of Taneh Investment Inc. in

Nigeria.

Taneh Poly Ltd is thusadministered by the Companies Act of Nigeria. Regard to this, it

is suitably registered with the Company and Allied Act of Nigeria.This will bestand by all

vital laws and regulation and as such is registered with the Nigeria Revenue

Authorityfor Taxpayer Identification Number, Value Added Tax and business Tax. Tenah

Poly Ltd is also administered with Nigeria Public Procurement Authority. This is as a

result of Tenah Poly Ltd has firm policy to observe thelaws and regulations and

appropriatemeasurable international standards such as the ISOs.

The company will be overseen by a board of directors that will put in place the strategic

course of the business by formulationof corporate strategies and policies. The board of

directors’assign to the top executive management that will confirm that the mission of

the company and its vision is segmented into short to long periodpurposes. These

short to long period purposes will move down to its operational and line managers

which nowinterpret into operational goals that will be achievable in the short term and

guarantee that the key performance individual indicators are allied to see the strategic

purposes and eventually vision of the business. Nevertheless, the business will

seriouslyespouse the developingformulation of strategy technique to permit for

jointinvolvement and behavior convergency in the formulation of strategy.

3.0 Micro and Macro environmental analysis

3.1 SWOT Analysis

3.1.1 Strengths

The main strategic purposes of Tenah Poly Ltd are wedged upon by the company core

competencies, industrial position and the company inner environment. In examining its

inner environment Tenah Poly Ltd has carried out an analysis of SWOT that highpoints

the subsequent Strengths it can tackle maintenance of a competitive advantage and

warrantsubsistence and company’s continuity: supporting of a financially

comprehensiveholding company international with decentstatus; company’s in

Nigeriaonly producelumber recycled products and customers serving in thisniche

market; small overhead and production costs and thus ability to achieve great

production level; capable and experienced staff that are trained; capability toward

growinginvention without foremost investment and very low production cost.

3.1.2 Opportunities

Its opportunities comprisepreeminentrequest for associated lumber products either for

use agriculturally, industrial, orhousehold; a budding market as a result of favorable

governmental polies and its strategies that includes the National SolidWaste

Management Strategy for the country; developments roadsinfrastructure and solid sites

waste management productionobtaining and easyconveyance of poly waste; budding

economy with a Gross Domestic Product per annual rate of growth of 4.5% in

accordance to World Bankand advancement of the Free Trade Area.

3.1.3 Weaknesses

Its weaknesses comprise of deficiency of business shrewdness by its allied company

and top executive management of the Nigeria market; presence of new entrants’ threat,

thus the customers will need to have a wide knowledge of Tenah Poly Ltd and its

related products.

3.1.4 Threats

Operation threats in Nigeriacomprise over directive of the division such as the current

Statutory number 65 of 2018 on prolongedmanufacturerobligationprinciples;

augmentedrivalryoccasioned from new market entrants as a result of market ease

entry. The adverse effect of inflation of pricing and production cost and government

unfriendly policies that include the banning of plastic bags by supermarket type by the

Ministry Water Development Ministry, Sanitation and Environmental Protection;the new

products development in the market that alternate the use of plastic related materials

that Taneh Poly Ltd recycles and lose of skilled human resource due to HIV/ AIDS from

stigma and lack of access to proper health care.

3.2 Macro-Environmental analysis

This kind environment affects all segments.The forces in this environment are

economic,technological,political,social,legal/regulatory and the physical

environment.The fundamental financial environment has undergone tremendous

changes that include breakthroughs in technology,globalization,and changes in the

regulatory environment. The above-mentionedissues have offeredstakeholders with

prospectsconvoyed by extensive risks. This modification has curtailed in

improvedrequestby consumers for quality complete goods and the need to

manufacture goods and services bymanufacturer to mollify their desire. Taneh Poly Ltd
have confidence inassuming and make use of best practices international. As such, an

acceptance of the interpretation that establishmentsmust know the level to which

theirdesire to be organized to acclimatize to impacts from its external environment.

3.2.1 Political Environment and social environment

The general political stability currently enjoyed in Nigeria and due to the factor that the

country has never experienced any civil war in the last forty year as compared to some

the countries in African. The political and socialstable in our current environment has

attractedinvestorsboth local and international.

However, it is vital that the uneven distribution of the population of people in

Nigeriastances a task to a great number of companies that intention to upsurge their

reach out in the whole of the country. This is as a result of the urban drift in population,

mostlyconcentrated in the cities. Most of the olderpopulace is concerted in rural places

that are thinlyoccupied.

3.2.2 Economic conditions

Nigeria had experiencedenhanced macroeconomic steadiness in the lasttwenty years.

Policy makers have succeeded in reducing inflation to a single digit of less than 10%.

Interest rates of most financial products and its instruments have gone downward.

There has been a steady increase employment opportunityfollowing development in

themining, tourism and agricultural sectors as well as increased infrastructure

development throughout the country such as the Link Nigeria 8000 Road project, Pave

Nigeria 2000 project and Chad Drainage project under the Millennium Account

Challenge in Nigeria.
3.2.3 Technology

Advances in technology have continued to create opportunities to both the

manufacturing and services industries. Technology can help to increase operational

efficiency and create a competitive advantage. Unparticular, the growth of internet has

provided many with increased opportunities. It has also created additional competition

and risk. It has resulted in increased mobile devised waste. Likewise, the technological

advances manufacturing processing resulting from mass production has equally

resulted in increased plastic waste. For this purpose, it is important to understand the

technological environment and be ready to change operations as the environment

evolves.

4.2.4 Environmental factors

There has been significant growth in sectors such as mining and construction. Other

sectors such as agriculture have also seen growth and the country has recorded

bumper harvests in maize, cassava and soya beans. The creation of more districts by

government has created further opportunities. All these factors have led to a need for

more products and services. To meet this demand, investors have taken advantage in

various sectors. Taneh Poly Ltd. has an opportunity to participate andin any case; the

prospects are likely to be higher in the foreseeable future.

3.2.5 Legal and Regulatory Condition

There is a resilient legal and regulatory environment that aims to support an equitable

share of the economic resources. The legal framework instituted by the government

supports investment into renewable energy and recycling oriented businesses with tax

incentives offered on import of some manufacturing equipment.

4.0Strategic Analysis and Choice

The key drivers of the products hinge on the fact that plastic waste is readily available

and the cost of collection of waste is considerably lower than cutting down trees; the

cost of producing recycled plastic poles is very low thereby resulting in a cheaper

products compared to wooden poles; the product is a better alternative to metallic

poles because it does not need treating and is also not susceptible to dampening or

rotting; there is no competitor in Nigeria offering the product. Taneh Poly Ltd. will

therefore gain in both competitive edge and market share over any new entrants in the

future; there is a huge market to be exploited in the agricultural sector and

manufacturing industry alongside household customers; there is significant room for

expansion by exploiting other foreign markets in in the Southern African Development

Community (SADC) and Common Market for Western African regions; there is

significant long term potential to expand the product range to include recycled paper,

metallic and organic waste.

In all, the institution will employ a grand strategy to attain long term strategic objectives

with a focus on stability so as to enable the company establish itself on the market by

leveraging on the advantage of lack of competitors. This will enable attainment of

satisfactory financial condition and performance as well as learn the market before

expanding to other regions. Thereafter, the company will skew towards an expansion

strategy through diversified product offering and internationalization into the Western

African regions.
4.1 Long Term Objectives

It is important that long term objectives are defined to set the future direction of the

company. The long term objectives will guide the growth prospects and stability of the

company.

Therefore, the long term strategic objectives of Taneh Poly Ltd in the 3 to 5 year time

horizon are as follows, being the leader in the manufacture and supply of recycled

lumber products; to be theemployer of choice and empower the youths and women in

society with economic livelihood; be a technological leader in the use of green methods

for poly waste recycling; continue being innovative and make improvements to

products and services enjoyed by our customers; be a good corporate social citizen.

4.2 Short term Objectives

In the short term Taneh Poly Ltd will aim to aim to increase advertising through visual

and print media, audio media and sensitizations at women and youth fora. Breakeven

and become profitable within the first year by reaching 90% optimal production. This is

consistent with the identified strength in the SWOT analysis of low production cost.

Thereby supporting Porters generic strategy to attain a competitive advantage Of the

four/three generic strategies, Taneh Poly Ltd will pursue two (2) strategies of low cost

and differentiated product. This is because the raw material of plastic waste is obtained

at minimal cost and the cost of production is significantly low offering an opportunity to

maximize profits. Strategy for product introduction will first involve launching the key

product which is the fencing poles. This product will offer a cheaper and superior

product alternative to wooden poles currently on the market. Thereafter, support

products can be introduced as the company grows. This perfectly fits with the
differentiated strategy and our products will be the only ones on the market as there is

currently no competitor.

The business will focus on recycling plastic waste into Recycled Plastic Lumber for

outdoor use such as fencing poles, outdoor decking, garden furniture, decorative items

such as railing balustrades.

5.0 Investment and Profitability Statement

5.1 Capital Injection

The funding of $150,000 will go towards acquisition of machinery (Extruder and

Agglomerator) and a light truck, Advertising, Raw material gathering and purchase (e.g.

plastic waste, moulds and colouring agents), warehousing and production staff wages

by 6 people. Referred below in figure 1, Taneh Poly Ltd Profitability Statement for One

Year.

5.2 Breakeven analysis

The financial projection for one year shows that the Taneh Poly Ltd will break even in

month seven (7) and proceed to report a net profit of $85,384 (US) in this month at a

level of sales units of 309,397. At breakeven point Taneh Poly Ltd will be at seventy

percent utilization (70%). Expected net profit at the end of year one is $829,962 (US)

at a sales volume level of 3,918,619 units and eighty percent (80%) utilization.

5.3 Payback period

The capital injection and profitability statement are used in projecting the payback

period. The initial capital injection of $150,000 will be paid back in month eleven (11).

However due to the holding company’s dividend policy to promote sustained growth of

Taneh Poly Ltd. with a long term vision to operate at 100% capacity and expand to

other markets within the Western African regions.

6.0 Social and Economic Benefits and Justification

The projected strategic plan possesses a largevariety of benefits that harmonize the

financial possibility of Taneh Poly Ltd and its holding company Taneh Investments Inc.

Hence, the envisage business strategy promotes the socio-economic goals and

objectives stated in the National Solid Waste Management Strategy for Nigeria. The

business will encourage technology shift and make sure hundred percent (100) plastic

waste recycling. Taneh Poly Ltd. will contribute to social responsibility by creating

alertness and sensitization of people on responsibility of waste management. In turn,

the women and youth will be empowered to act as agents of plastic waste supplier to

Taneh Poly Ltd. Furthermore, the following aspects have been measured as strong

points to venture in the manufacture of plastic lumber recycled from plastic waste.

7.0 Conclusion

The strategic business plan present an accurate business case that venture into the

production of plastic lumber that recycled form plastic waste presents a beneficial

business that resolve in the long run not only result in economic value addition but

increase investor wealth. Also, involvement is made towards improved product delivery

with no plastic waste to remainunrecycled and reused. The strategies in use by the

company in the long and short period will make sure that the company remains

achievable and is a good communal social citizen that empowers the unfortunate

groups in our society (i.e. women and youths). This plan indicates that there are

sufficient strategies and theories to give an array of finest practices to implement and

put together vision, mission and objectives that can be checked, reviewed, controlled

and re-engineered or revised in response to internal or external factors of the company

for long period provisions.

References

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