Develop A Company 2

DEVELOPING A COMPANY

Cost Accounting: ACCT351-1603A-01

Rhoda Shugars

July 31, 2016

Jackie Russell

Due to the continuous degradation of the environment the best way to save the environment will be through a company that will start recycling company that will be able to convert the waste materials into more useful products like poles , tiles and gases that will be supplied to schools for academic purpose and also to real estates where the poles and titles will be used for beautification of the houses and the estates, the poles can be used to make street lights, since they will be more durable compared to those that are made of metals, they will be able to survive the harsh weather conditions and in turn the waste will be controlled and thus reduces the environment hazards that are associated with plastic waste materials.

This company will be known as E-light, the problem that the company tends to solve is environmental problems that are associated with plastic material and polyethene. The biggest problem that the company will face is how to get the polyethene, and plastic waste, the supply of the company, will be in conjunction with the local high school which will provide the waste material. A partnership with the county government, in which the garbage collecting trucks will be bringing the waste to the factory. The main aim of the company will be a supply of biogas and tiles and poles that are made out of plastics.

The company will be manufacturing this product large scale in that it will be exporting the products to other continents like Asia and Africa. The company will be a financial year will be running quarterly since it is a new company it will, therefore, require much dedication to see that it succeeds, and this can only be achieved by ensuring that the financial muscle of the company is at its best so as to be able to run its activities effectively. To avoid closing down due to the level of competition it will be important for the company to keep track of their book of accounts so that they can be able to avoid the unforeseeable risks, and if it occurs the company can be able to recover swiftly.

The machines that will be needed so as to run the business are expensive and therefore it will be effective for the first year or at inception leasing the equipment since it will be effective to the company in that, the company will not be the one maintaining the machine and repairing them, since it will be costly and thus the lessor will be mandated in repairing the machines. This will reduce the operation cost of the company since they will not incur any cost in maintaining the machines. The money that would have been used to purchase and maintain the machines will, in turn, be used to improve the supply and marketing of the commodities that the company will be producing (Martin, 2015). For large scale production, the machines that will be used are: plastic shredder machine, manufacturing machines, and concrete mixing plant and gas tanks

After the company has received the plastics, they will be separated into different tankers where we have materials of a particular color set together plus the texture. The purpose of separating them is to avoid mixing the color varieties, and the viscosity of the products since other are made with different materials. The waste materials will then be subjected into a plastic shredder where they will be cut into small pieces. Then they will be melted at 150 degrees so as to ensure that there are no impurities will be in the liquid, the liquid will then be taken to a concrete mixing plant which will mix the liquid plastic into desired standards. From here the desired shapes and materials will later be made from this stage. Methane gas which will be produced during the burning or rather melting will be channeled into reserve tanks that will stores them where it will await packaging then be supplied to the market (Lorette, 2015).

For the company to supply these commodities effectively it will depend on supply chain that it will settle for in which it will be able to solve the whole logistical issues. The supply chain will be like being:

Manufacturer suppliers’ agents/ wholesalers retailer consumer

This supply chain will enable fast distribution of the products to the market, since the suppliers will be in every station it will assist the company in boosting sales since the suppliers will handle a specific market they will have to recruit the agents who will assist in the supply of the products and since the company will be producing the two commodities, the same chain will be used (Daniel, 2009).

The importance of this chain is that the company will have a direct link with the market, and thus it will be able to get feedback from the market on how to improve the commodity. This will enable the company to stay afloat. This will also be a mode of marketing since the people that are in touch with the customers will be able to get in touch with the market.

The cost that will be required to run or rather start the company will be $1.5 million dollars. The costs that will be factored in while start the companies are:

Factor of production	number	Estimated cost
Labor	20 employees	$150,000
Leasing Machines	8	$800,000
Overhead costs		$250,000
Getting the licenses from the government		$50,000
Commodities that is the plastics		$50,000
Miscellaneous		$200,000

For the company to effectively compete with some of the well-established firms is that the company major driving force wills not to make profits but rather helping in conserving the environment after that is achieved it will be able to start working towards making profits. Therefore in the first five years of operation of the company will be to maintain itself in that it cannot close down, after being able to sustain itself then the company will be able to maintain its operations (Benson, 2007).

To conclude marketing is very costly and for a new company to be relevant it will need much marketing and create product awareness and the company will do this through social media of the research carried by the institute of technology has found out that people often spend more time on their phone compared to the time they spend on television. This can at least help the company interact with the young since its main purpose is to maintain the status of a clean city since the tones that are being produced daily have overwhelmed the companies that are in existence. The company objectives are unique, and this will assist the company to grow so that it can be able to compete effectively on the global scene.

Reference

Benson, N. (2007). Operation management. Chicago: Oxford University press.

Daniel, L. (2009). Effective Supply Chain. Supply chain management.

Lorette, K. (2015). How to start a plastic Recycling Manufacturing Business. Money smart life.

Martin, M. (2015). How to manage a Plastic Recycling Company. Chron.