Business plan Waste Washer

Contents

Section 1: Executive Summary        3

Section 2: History        4

Section 3: Mission, Vision and Strategy        6

Section 4: Products and Services        7

Section 5: Markets, Marketing and Sales        10

Section 6: Organization        14

Section 7: Manufacturing and Operations        17

Section 8: Logistics and Quality        19

Section 9: Human resources and Management        21

Section 10: Financial analysis        23

Section 11: Risks and Rewards        25

Section 12: Appendices        26

1. Executive Summary

1. Initial Position

The EHALU AG Company was within a long time a leader in Switzerland in the fabrication of washing machines. Unfortunately, the current situation does not allow it to survive successfully, much of the market having been decentralized towards the South-East Asia.

In order to allow recovery of the activity, innovative positions should be taken. Indeed, only this approach allows a future in the current economic environment of Switzerland.

A highly innovative project has been launched, leading to the concept of the Waste-Washer. This entirely new product will allow a sustainable recovery of activities in EHALU AG, through the conquest of new markets.

1. Company and Marketplaces

The concept of Waste-Washer fits precisely in a market expected to grow substantially, that of the ecological awareness of households and the inclusion of recycling in daily life.

In this context, EHALU AG will become a key player, the Waste-Washer creating a completely new application, positioning the company directly as a leader in technological innovation in the field of recycling.

1. Financial Projections

We might to take into consideration related fees for licensing, permits, equipment. Differentiation between fixed and variable costs is also important. To get investments we shall to consider only two scenarios, best-case and worst-case. Our financial projections are to reach the breakeven point 3 years after the beginning and to reach the Payback time around the fifth year.

1. Funding Requirements

The present project will require an investment of 1’200’000. We have a capital of 200’000 for this project so we need to loan the rest.

With our good financial situation and the innovative new product line, we can assure that the loan will be refunded in ten years.

1. Management

The management team of EHALU AG wouldn’t change radically. Personnel will be hired to respond to the demand and a management team in charge of the project will be created.

A recruitment plan needs to be implemented by Human Resources to meet the market demand.

HR Policy and Strategy have been defined to correspond to the new product line.

1. History

1. Background

Since the EHALU Partnership was founded in the late 1950s, the company involutes a lot. After the WW2, the partnership created further versions of the washing machine as well as series of new and innovative vacuum cleaners for the upper-middle class society. At the end of the 1960s the EHALU AG bought a ground property for building a factory with offices and a storage facility. This new ground made it possible to create a new kitchen machines and dishwashers line. The sales of these new machines were successful. After that, the oil crisis in the middle of the 1970s caused a major cutback in the sales. The recession motivated the owners to expand into new market areas and to create cooperation with architects, general contractors and real estate managers. In the 1980s the EHALU AG started a new line of “motorless kitchen electronics”, but mainly due to the ever increasing competition, the launch did not bring any success. Then, in the 1990s, the co-owner passed away, so the remaining partner took over the stock ownership and became the sole shareholder and the CEO.[pic 2][pic 3][pic 4][pic 5][pic 6][pic 7][pic 8][pic 9][pic 10][pic 11]

[pic 12]

1. As-is Analysis

Products and services developed:

1950s:        Electrical washing machine

        Innovative vacuum cleaners

1960s:        Expand the current household series (washing machines and vacuum cleaners)

        Electronics like blenders, kitchen machines and dishwashers

1970s:        Cooperation with architects, general contractors and real estate managers

1980s:         New line of “motorless kitchen electronics” (toaster, water cooker, coffee machine)

1990s:        Readjusted the machines and the electronics to be used in professional surroundings

1. Capital Structure

Since the 1960s, the capital of EHALU AG is 200’000 CHF, he is fully paid up and 100% in the hand of the sole shareholder and CEO.

1. Shareholder and Stakeholder

Here, we can see some main stakeholders, for the Shareholders, the sole Shareholder in the EHALU AG are the CEO:

[pic 13][pic 14]

1. Mission, Vision and Strategy

« Our mission is to make nature cleaner, with the little help of householders,

aiming to our vision of a kitchen without disturbing odors. »

S. Bilousov, CEO, August 16, 2011

The new strategy of the company can be visualized through a simple scheme, which can be found below.

...