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University of ManchesterAlliance Manchester Business School
Live Business Project
Assignment A3 - Project PlanFeasibility Study/ Business Case
Start-Up for Sustainable Alternatives to Single Use Plastic Straws and Packaging
LBP Group - Jan19/29Word Count:
Project Objectives and Scope
The phased ban of single-use plastics, such as plastic bags, straws and
styrofoam by the Government of Jamaica has created a new industry and
an opportunity for businesses to provide alternatives to these products.
The scope of this LBP29/19 Live Business Project involves the
identification and testing of suitable products, and development of a
market entry strategy for a viable but environmentally sustainable
alternative to single-use plastic straws with a view towards expansion into
alternatives to styrofoam packages.
The overarching hypothesis for the project states that “the current
alternative to plastic straws in the Jamaican market, in the form of paper,
is undesirable to the general public, as they modify the taste of the
beverage being consumed and tend to disintegrate within a short period
of time”. This project will involve testing this hypothesis, as well as
determining the openness/ acceptance of the Jamaican public to a
bioplastic alternative and providing a business case for the manufacturing
or distribution of a suitable alternative. Primary sources of data for
analysis will include interviews with current players in the market,
interviews with companies displaced by the plastic ban and the general
public. Straws are most likely to be used outside of the home and as such
the target market for the product will be restaurants, bars, hotels, schools,
cafes, street vendors, supermarkets and restaurant suppliers. However, it
will be important to determine the views of the public as they will be the
primary consumer of the product. Secondary sources of data for analysis
will include legislation, regulations, newspaper articles, research articles
and case studies that examine plastic bans (including those in other
jurisdictions) and informal institutions of Jamaica and other countries that
have transitioned away from single-use plastics.
Some key deliverables of this project will include an Executive Summary,
Business Description and Mission Statement, Pros and Cons of the
Bioplastic selected, Market Entry Strategy, Competitor Analysis, SWOT
Analysis, Operations Overview (Production, HR including required
expertise and Supply Chain) and a Financial Plan. These deliverables will
provide an outline of the issue, anticipated outcomes, recommendations
for growth of the business and the newly created industry and a
justification for the business start-up.
Group Working Assignments
The group is currently comprised of four team members. In order to attain
the business's goals and visions we will divide the workload with each
team member gaining expertise in one of the four products being
examined. The four products currently in review include the paper
alternative currently in the market and the three proposed bioplastics for
introduction to the market. The alternatives as highlighted are corn,
bagasse (sugar cane waste) and avocado seeds based products. Each
team member will gain an understanding in order to address the aims and
objectives highlighted in the following section. Team members will also
have an in depth understanding of the particular issues related to each
product and how the specific product addresses client requirements and
needs. Each team member will follow the methods of data collection,
analysis and fieldwork outlined in order to gain cohesiveness in data
collected and to uniformly understand each product. The team will also
meet regularly in order to educate other team members of their findings.
While the team will be divided we will leverage each other as a resource
when needed. The overall goal of the group is to support and challenge
each other. A further breakdown of the tasks and assignments can be
found in the project plan table below.
Description of Opportunity/Sector/Context
The accumulation of plastic waste, particularly in the marine environment
has gained prominence globally. The sudden increase in importance is
due to several visceral events, notably viral videos showcasing the
dreadful impact of plastic pollution on marine life and the Garbage Patch
in the Pacific Ocean (Vince and Hardesty, 2017). The Jamaican tourism
product is primarily centred around experiences related to coastal
activities, sand and sea, with the majority of hotels located along the
northern and western coastlines, making the impact of marine plastic
pollution of great importance to all Jamaicans. Several civil society groups
have sought to tackle the issues related to pollution of the built and
marine environment, by influencing cultural practices and lobbying the
Government of Jamaica to influence environmental policy
In a bold response to this issue, the Government of Jamaica has recently
announced phased bans on the importation, manufacturing, distribution
and use of plastic packaging materials, such as single use plastic
containers, expanded polystyrene foam (Styrofoam) and plastic drinking
straws; effective January 1, 2019. The ban on the importation and
manufacturing of plastic straws was implemented with immediate effect.
Other single use plastics and Styrofoam will be phased out by January
2020 and January 2021 respectively.
For this ban in Jamaica to achieve its primary objectives of protecting the
natural environment; it must be supported by enforcement and
alternatives to single-use plastics must be provided. This would essentially
create a new industry where production and distribution of biodegradable
plastics or other alternatives would help to lessen the accumulation of
plastic in the marine environment.
Description of Particular Issues and Client Requirements
Client Requirements
In order to understand the client requirements for straws we first have to
look at the issues with the current market and complaints lobbied by the
consumers. While most people agree that plastic straws are bad for the
environment, a majority of consumers are satisfied with their
performance. The majority of the world has grown up using plastic straws
and therefore believe a straw should have similar qualities. These
qualities mainly surround durability when immersed in liquid and the feel
of straw. Any substitutes to the current idea of a straw has to either match
these requirements or it must overcome the current understanding of
straws. Change management within an organization is challenging
however educating and managing change at a macro level can be a
daunting task. Our initial research has highlighted a few issues with the
use of paper straws and few potential issues that are not currently at the
forefront of conversation. The first major issue is functionality. Papers
straws do not structurally stand up when immersed in liquid and often fall
apart when individuals attempt to stir drinks. The weak integrity of the
paper straws results in pieces falling off, the straws breaking and
ultimately affecting the taste of the drink. The structural issues and
overall change in texture of the straw has resulted in many complaints
against paper straws. The environmental impact of creating paper from
wood is a challenge that can ultimately lead to additional changes in this
practice. In order for the alternative bioplastic straw to be successful in
the market it must address the issues highlighted against paper straws
and mimic plastic straws a much as possible. The alternative bioplastic
straw must address how consumers envision a straw should feel, look and
perform.
Particular Issues
In order to analyze the issues we will be looking at the internal and
external business environment. The internal and external analysis will
help to identify challenges and opportunities to the business and potential
success or failure.
Internal Factors:
Business Structure - We will need to look at how the legal entity should
be setup and understand the legal and tax obligations of each structure.
Should the entity be established in Jamaica or outside of Jamaica and what
are the trade implications.
Funding - How will the business be funded? Will government funds be
available or will we have to use external funding sources
Cost/Financial Forecast - A complete analysis of the business cost and
financial forecast will need to be conducted.
Human Capital - What skills, knowledge and expertise will be needed.
Resource Availability - What resources are readily available in the local
Jamaican market? Will importation be required?
Physical Assets - What assets will be needed to conduct business?
External Environment
Customers - Consumer behaviour and requirements
Social Environment - Is there a desire to change the culture of the
current environment
Economic Factors - Micro and Macro factors
Political/Legal Environment - What impact will the legal and political
environment have? How strong is the enforcement on the ban?
Supply Chain - How will raw materials be procured?
Market - Is there a market for the proposed product? Who is the target
market?
Competitors - What is the competitive framework in the market? Who
are the current major players?
Technological - Understanding the technological challenges with the
business environment and product.
Research Aims & ObjectivesResearch Aim: To support the feasibility study and explore the alternative bioplastic market in Jamaica.
Research ObjectivesThe following research objectives would facilitate the achievement of these aims:
i. To study both the macroeconomics and microeconomics of Jamaican economy;
ii. To study the regulatory framework and the suitability of bioplastics in the Jamaican
market;
iii. To evaluate feasibility of market entry using framework adapted from Porter’s five
forces and value chain;
iv. To support the business model with relevant and robust data from the research and
analysis.
Please refer to Table 4 on the project objectives & research plan with reference to HBR’s 5 strategic context framework to enter an emerging market (2005)
Tasks to Complete Objectives
Defining current conditions, including determining the level of
competition through competitor analysis.
Explore and quantify the availability of the bioplastic alternatives we
have selected.
Assess the opinion of the public as it relates to current paper
products through interviews and surveys
Determine the size of the market through the use of Government
documents such as census data, Jamaica Customs Agency records
for previous plastic imports and impact assessment from the
Ministry of Industry and Commerce (ministry responsible for
implementing plastic ban)
Define the target market explicitly
o Restaurants, shops, bars, hotels, supermarkets, street vendors
and restaurant equipment suppliers
Determine the level of acceptance of the Jamaican public to
alternatives, particularly bioplastic (through samples and focus
groups), exploring formal and informal institutions, related to waste
disposal and recycling
o Determine the most suitable product based on the results of
the above.
Determine the level of support provided by the government for
startups in this sector, such as the availability of subsidies and
grants
Conduct SWOT Analysis, to guide market entry strategy, enabling
the startup to identify and take advantage of strengths and
opportunities, while mitigating weaknesses and threats
Determine the appropriate marketing and pricing strategy for
introducing the new product
Determine the start-up costs associated with forming company and
procuring equipment, as well as working capital required for
operations thereafter
Methods of Data Collection/ Analysis/ Planning Fieldwork
Based on our Research Aims & Objectives, the team will use several Methods of Data Collection & Analysis. The Primary Research Methods that will be used by our group are: Focus Groups, One on One Interviews & Surveys. Secondary Research Methods would be additional research in official documentation & scientific research on Bioplastics and Alternative Materials to Plastics. This will be done to cover any gaps in data that we might encounter after our Primary Research is Done.
Primary Research
Our Primary Research Methods will be Focus Groups, One on One Interviews & Surveys. The aim of these methods is to have a complete picture of the market perception on Alternative Materials for Plastics, engage our target customers (businesses) to understand their tastes, and their general willingness to accept alternatives to Paper & Plastic for Straws they offer in their establishment.
One on One Interviews
These One on One Interviews will be aimed at understanding current market conditions in Jamaica, which will include perception of prospective customers, current legal framework and enforcement from Government Officials. These will help us to gain an understanding of our competitors strengths and weaknesses, as well as, aid in assessing the cost structure, production process and supply capacity of our prospective business partners. One on One Interviews will be set up with:
o Prospective Customerso General Public o Government Officialso Prospective Business Partners / Providerso Importers of Paper Straws (Current Competition)
One on One Interviews will be mostly set up in Jamaica as our Customers, General Public & Government Officials are all based there. J.D. will be the lead interviewer throughout. As for Providers, Ricardo & Baboucarr will each setup interviews with Corn & Avocado Seeds Bioplastic Providers to understand the production process, cost of production, supply chain needs to gain a good understanding of the cost structure for our business.
Surveys
Two Surveys will be Conducted. One will be aimed at the General Public and another one will be distributed to our Prospective Customer Base, such as Restaurants, Hotels, and general tourist businesses in Jamaica. The aim of the surveys is to understand:
1. Knowledge of alternative materials to plastics 2. Perception of Bioplastics as an alternative to paper straws3. Willingness to purchase alternative materials to plastic straws
The questionnaire will consist of maximum 20 questions and should be completed in no more than 10 minutes. We will use Survey Monkey as our primary survey distribution form. Our primary Survey Target Population are Management Teams for Restaurants, Hotels & Other Service Based Businesses in Jamaica. For the General Public they will be aimed at Young Professionals aged 25 to 40 Years Old, that are primarily acquaintances of J.D. in Jamaica. Our target is to have no more than 100 surveys completed by End of August. We feel we don’t need a large survey base as this is highly costly.
Focus Groups
Focus Groups will be used to complement our One on One Interviews and Surveys to provide a deeper understanding of the public knowledge,
perception & willingness to purchase Bioplastics as an alternative. Focus Groups will conduct tests of the products, providing us with feedback related to the performance of the proposed alternatives. This will involve two processes based on the hypothesis, firstly a taste-test comparing the paper straws with the three alternatives proposed and secondly, an integrity test comparing the length of time for disintegration of the paper straws with the three alternatives. Our Focus Group will consist of 3 prospective Customers in Jamaica and 2 Young Professionals Aged 25 to 40 Years Old from Jamaica. Our idea is to merge the perception of our Actual Customers (Business Owners) with the perception and preference of their Customer Base (Young Professionals), so as to gauge if they match and, at the same time, promote our own business.
Secondary Research
As explained previously, additional research may be needed to cover gaps our primary research doesn’t give us. After analysis of initial results, we may need to research:
1. Official Legislation Changes and Official Releases 2. Availability of Trade Agreements with markets that have potential
suppliers of Bioplastic raw material 3. Bioplastic straw production process.4. The transition from single-use plastics to alternatives in Jamaica and
other markets (UK, some states in the USA, New Zealand, etc.)
Sources of this research will be varied, from scientific journals, websites, journals and publications, newspapers, economic reports, etc. The data we may need will be mostly Statistics on Success Rates for markets where the transition from Plastics has already being done, Population Data from Official Sources to gauge size of market and Statistical Information on
Tariffs that could be incurred to complement our Financial Assessment of our Start-up.
Project Plan
The project plan provides a framework for the project team to follow. This plan will include a
detailed timeline with key milestones, work breakdown structures and tasks that have been assigned
to group members.
The project plan consists of the following
Start Date and End Dates for components and key tasks
Major Milestones
o Data Collection and Analysis
o Interim Project Presentation
o Financial Planning
o Draft of Final Project Report
o Final Report Submission
Work Breakdown Structure
Gannt Chart to provide a visual presentation of the work breakdown structure and baselines
Project Plan
Task Name WBS Planned Start Duration Planned End Status Person PriorityLive Business Project 1 05/01/2019 317 days 18/11/2019 Started MediumExecutive Summary 1.4 29/07/2019 26 days 02/09/2019 Not Started Yet Very High
Final Description of Issues 1.4.1 29/07/2019 14 days 15/08/2019 Not Started YetBaboucarr, Jason
Medium
Final Draft of Anticipated Outcomes 1.4.2 29/07/2019 14 days 15/08/2019 Not Started YetJason, Ricardo
Medium
Interim Recommendations 1.4.3 01/08/2019 32 days 02/09/2019 Not Started YetGhazi, Baboucarr
MediumInterim Justification 1.4.4 05/08/2019 10 days 15/08/2019 Not Started Yet Jason MediumSizing of Market 1.4.4.1 05/08/2019 4 days 09/08/2019 Not Started Yet Jason Martin Low
Market Share Goals and Target Projections 1.4.4.2 03/08/2019 12 days 15/08/2019 Not Started YetGhazi, Baboucarr, Jason, Ricardo
LowBusiness Description 1.5 08/08/2019 4 days 12/08/2019 Not Started Yet MediumDraft of Mission Statement 1.5.1 10/08/2019 2 days 12/08/2019 Not Started Yet Jason Martin MediumProduct Selection 1.6 15/08/2019 25 days 09/09/2019 Not Started Yet All MediumStakeholder Identification and Analysis 1.6.1 15/08/2019 25 days 09/09/2019 Not Started Yet Jason, Baboucarr Medium
Interviews and Questionnaires with General Public 1.6.1.1 20/08/2019 7 days 27/08/2019 Not Started Yet Jason Medium
Focus Group Testing 1.6.1.1.1 23/08/2019 4 days 27/08/2019 Not Started YetJason, Ricardo
MediumInterviews with Restaurant Industry Players 1.6.1.2 21/08/2019 6 days 27/08/2019 Not Started Yet All MediumSample Testing 1.6.1.2.1 21/08/2019 6 days 27/08/2019 Not Started Yet Jason Martin MediumInterviews with Government Officials 1.6.1.3 03/09/2019 6 days 09/09/2019 Not Started Yet Jason , Ghazi MediumConfirm conformity of Bioplastic Alternatives 1.6.1.3.1 03/09/2019 6 days 09/09/2019 Not Started Yet Jason Martin Medium
Interview with Solid Waste Authority 1.6.1.3.2 06/09/2019 3 days 09/09/2019 Not Started YetGhazi, Jason
Medium
Review Case Studies in Similar Markets 1.6.1.4 15/08/2019 25 days 09/09/2019 Not Started YetGhazi, Baboucarr, Jason, Ricardo
Medium
Interview Stakeholders in Recycling Industry 1.6.1.5 25/08/2019 2 days 27/08/2019 Not Started YetBaboucarr, Jason
MediumMarket Entry Strategy 2 10/09/2019 22 days 25/09/2019 Not Started Yet All MediumCountry Profile 2.1 10/09/2019 6 days 16/09/2019 Not Started Yet Jason MediumPESTLE 2.1.1 10/09/2019 3 days 13/09/2019 Not Started Yet Baboucarr Musa MediumRisk Matrix 2.1.2 12/09/2019 4 days 16/09/2019 Not Started Yet Ricardo De la Pena Medium
Market Segmentation 2.2 17/09/2019 3 days 20/09/2019 Not Started YetGhazi, Jason
Medium
Brand Strategy 2.3 20/09/2019 5 days 25/09/2019 Not Started YetGhazi, Baboucarr, Jason, Ricardo
Medium
Demand Forecast 2.4 22/09/2019 2 days 24/09/2019 Not Started YetBaboucarr, Ricardo
MediumCompetitor Analysis 3 25/09/2019 2 days 27/09/2019 Not Started Yet All Medium
Stakeholder Power Matrix 3.1 25/09/2019 2 days 27/09/2019 Not Started YetGhazi, Jason
MediumSWOT Analysis and other Frameworks 4 28/09/2019 4 days 02/10/2019 Not Started Yet All MediumOperations Overview 5 02/10/2019 19 days 21/10/2019 Not Started Yet All Medium
Prodcution Targets 5.1 02/10/2019 10 days 12/10/2019 Not Started YetBaboucarr, Ricardo
Medium
Performance Objectives 5.2 02/10/2019 10 days 12/10/2019 Not Started YetGhazi, Jason
MediumIdentification of Relevant Expertise 5.3 05/10/2019 8 days 13/10/2019 Not Started Yet Jason Martin MediumSupply Chain Model 5.4 07/10/2019 14 days 21/10/2019 Not Started Yet Ghafi Ghazir MediumFinancial Plan 6 13/10/2019 24 days 06/11/2019 Not Started Yet All Medium
Cost of Registration and Legal Formalities 6.1 13/10/2019 4 days 17/10/2019 Not Started YetBaboucarr, Ricardo
MediumRental Costs/ Property Acquisition 6.2 14/10/2019 3 days 17/10/2019 Not Started Yet Jason Martin MediumPreliminary Equipment Costs 6.3 15/10/2019 7 days 22/10/2019 Not Started Yet Ghafi Ghazir Medium
Working Capital Projections 6.4 17/10/2019 20 days 06/11/2019 Not Started YetBaboucarr, Ricardo
Medium
Marketing Costs 6.5 17/07/2019 20 days 06/11/2019 Not Started YetBaboucarr, Jason
Medium
A4 Interim Presentation 7 29/07/2019 45 days 27/09/2019 Not Started YetGhazi, Baboucarr, Jason, Ricardo
High
Final Document 8 29/07/2019 81 days 18/11/2019 Not Started YetGhazi, Baboucarr, Jason, Ricardo
High