Engineering
Practice ES342
MA&M
INCORPORATION
By:
Muteb
Alshaibani
13331394
Abdulaziz
Alfuhaid
13315534
Muhammad
Albuti
16765968
August
22, 2010
MA&M
Sunshine Incorporation
Executive summary:
Mission Statement : Making
cooking easy
Product and Market scope : Lower
and middle income group.
Basis for differentiation : No
power consumption and easy to carry and
use
Strategic Resources:
–
Utilization
of renewable energy resource
–
Rising
demand for cost effective fuel
Target Consumers- Mainly middle
and low income consumers
Marketing and support:
–
Free
demonstrations
–
Distributing
pamphlets about conservation of renewable energy
–
Advertisement
in magazines
Pricing model: Manufacturing
Price – $1,000
Sales Price – $2,500
Suppliers: Albuti Solar
Appliances Co. and Alfuhaid General Electrical ltd,
USA.
Other Partners: Alshaibani Inc.,USA
Table
of Contents:
Executive
Summary
Introduction:
Company
Name
Product
Organization
Chart
Drawing
Project
Planning:
Competition
Regulation
and Codes
Business
Model
License
and Permits
Finance:
Estimated
Cost
Capital
Other
considerations
Conclusion
Appendix
Introduction:
The name of our company is MA&M
Sunshine Incorporation. It is based in USA with its headquarters in Brooklyn,
New York. MA&M Sunshine Incorporation is named to reflect the product it
deals with. The MA&A are the first letters of the names of the founding
fathers of the company. Our product concept is a Portable Solar Cookers. A
solar cooker is a heavy appliance; therefore it is not easy to carry. Hence, we
have tried to develop an alternative of solar cooker which can be folded and
kept in a small space easily without the fear of getting broken. We have
partitioned the body of the solar cooker so that it can be folded. Thus making
it very portable and increasing its utility to outdoor travelling. Thus, it is
no more than a simple household appliance.
Organization Chart:
|
|||
 .gif”> |
.jpg” alt=”محمد البطى-model”>Drawing:
Project Planning
Competitors and Comparison with our
Product
Conservation of renewable source of
energy is very important in the present times. There are large number of
companies who want to explore this opportunity. It is a profitable venture more
so as it involves low manufacturing costs. The top competitors for our company
are Master Engineers, International Engineering and Trading company and
Tinytech Plants.
Sunshine Product Comparison
|
Company/Details |
Price |
Portability |
Efficiency |
Ease of use |
After sales services |
|
Sunshine Incorporation |
+ |
+ |
|||
|
Master Engineers |
+ |
||||
|
International Engineering and Trading Co |
+ |
||||
|
Tinytech Plants |
+ |
An analysis of the above chart reveals the
comparative advantages MA&M Sunshine Inc. has over its competitors.
MA&M Sunshine Inc. leads in the category of being the manufacturer of the most
portable solar cooker. It is so because of its design. It has been engineered
in such a way that it can be carried easily to its place of use. Another sphere
of dominance of MA&M Sunshine Inc is the cheaper price of its product
despite having an added advantage.
As far as efficiency in working is concerned, we are
making intense efforts in this direction. However, International Engineering
and Trading Co definitely has an edge over others. It is an established organization
and with its positive and innovative attitude, it has been able to carve an niche
in the market where competition is stiff and performance is the only criteria.
Tinytech Plants leads the after sales service
category because of its efficient, responsible and responsive services. Despite
manufacturing the most expensive solar cookers, the Master Engineers lead the
category of being the manufacturer of easy to use solar cooker in the industry.
Master Engineers are actually the pioneer manufacturers of solar cookers in the
industry presently. They capture almost 60% of the market share. Not only they
are the current leaders, they also expanded their headquarters to other
countries in 2008. These companies though capture major market share, but they
never endeavored to manufacture a solar cooker that could provide the consumers
the ease of portability. Our company focuses on producing such solar cookers
which could be folded and carried to any place of use, with much ease. This
would definitely make our product popular in a very short span coupled with adequate
marketing strategy.
Another major competitor is Tinytech Plants which
endeavors to promote renewable energy resources and making environment friendly
appliances. Though they provide the best after sales services in the industry,
we are keen to develop that aspect of our product development very soon.
International engineering and Trading Company are
the third largest manufacturers of solar cookers. They product is very popular
among the consumers because due to their unique features it is very easy to
operate and use. In the course of time we would definitely incorporate this feature
which would provide a competitive edge to our product in the long run.
Regulation and Codes that affect our
product
The international Organization for standardization has established
a number of standards relating to solar energy equipments. Therefore solar energy
equipment must adhere to ISO 9050 relating to glass in building and ISO 10217
relating to materials used in solar cookers.
Our company needs to adhere to the regulations of Uniform Solar Energy
Code (UNEC). It is model developed by the International Association of Plumbing
and Mechanical Officials (IAPMO). We also need to follow the norms of American
society of Agricultural Engineers (ASAE ).
This
standard is intended to:
-Promote
uniformity and consistency in the terms and units used to describe, test,
evaluate solar cookers, solar cooker components and solar cooker operation
-Provide a
single measure of performance so that the consumers may compare the different
models while selecting a solar cooker
-Provide a
common format for presentation interpretation of test results so as to
facilitate communication
Business Model
The mission statement of our company “making cooking easy” speaks
for the goals of our company. We want to make portable solar cookers which can
be folded and carried easily and anywhere. We can cook at the beach or on a
picnic spot. That is the level of comfort our company is aiming to provide its
customers. The product/ Market scope of our company is to cater to the needs of
lower and middle income groups.
Our basis of differentiation lies in the portability of our
product which none of the companies are offering in the present times. At the
same time we have tried to keep our prices competitive. Strategic resources
that make us stand out is the growing importance to make use of renewable
energy resources. Also a public demand for easy to carry and cost effective
means of cooking can get us into the market if people believe in our vision. We
would like to advertize our product by providing free demonstration to people.
We would also distribute pamphlets and educate people. Advertisement in
magazines will be a means of popularizing our product.
Licenses and Permits
A great deal of research has gone into the requirements of getting
the Sunshine Incorporation started. We will be located in New York and have
found all the licenses and permits that will be required for its working. We
need to obtain a Business License, Federal license and a sales Tax License. Toensure
that nothing is left out, it’s imperative to appoint a lawyer. We have
appointed.com/”>Law Office of
Frederic R. Abramson as our official consultant
and he has assured us that we are on the right track.
Finance
MA&M Sunshine Incorporation is designed to be a financial long
term investment with a payback period of 4 years. The company is expecting to
spend the entire first year and half of second year creating an excellent
functioning design, scale model and beta model. Our business plan is very
conservative in the sense that it has overestimated costs in every category.
The investment
summary of Sunshine Incorporation is as follows:
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Total cost |
|
|
Research and development |
$1000000 |
$1020000 |
$1050000 |
$1045000 |
$4115000 |
|
Engineering costs |
$95000 |
$95000 |
$95000 |
$95000 |
$380000 |
|
Manufacturing costs |
$150000 |
$167000 |
$124000 |
$143000 |
$584000 |
|
Management expenses |
$100000 |
$100000 |
$100000 |
$100000 |
$400000 |
|
Sales expenses |
$150000 |
$300000 |
$345000 |
$255000 |
$1050000 |
|
Administration expenses |
$210000 |
$210000 |
$210000 |
$210000 |
$840000 |
|
Product testing |
$230000 |
$235000 |
$210000 |
$245000 |
$920000 |
|
Misc expenses |
$1200000 |
$1200000 |
$1200000 |
$1200000 |
$4800000 |
|
Total |
$13089000 |
The following is
a summary of expected revenue:
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Total cost |
|
|
Expected sales |
0 |
2000 |
2050 |
2150 |
|
|
COGS |
0 |
$2650000 |
$2760000 |
$2850000 |
$8260000 |
|
Sale Price |
0 |
$5000000 |
$5125000 |
$5375000 |
$15500000 |
|
Revenue |
0 |
$2350000 |
$2365000 |
$2525000 |
$7240000 |
|
Margin |
0 |
$1250000 |
$2100000 |
$2350000 |
$5700000 |
|
Return on investment |
0 |
$1250000 |
$2100000 |
$2350000 |
$5700000 |
|
Total Margin |
$5700000 |
Critical Considerations
Since we are going to manufacture an eco
friendly product, we must abide by the norms laid out for them. We must use the
approved quality of materials in its manufacturing. The quality of the product
should be of high standards. It must be able to meet the requirements of our
target consumers fully. We will ensure that the manufacturing unit does not
cause any environmental hazards. We shall endeavor to fulfill our social
obligations.
As a company we shall keep our options
open to facilitate any improvements in the product as and when needed. Our dedicated
Research and Development team will be able to keep up with the growing and
evolving market.
Conclusion
As
time passes there is a huge increase of Research and Development put into the information
technology enabling better production. It targets the production of more
sophisticated and eco-friendly products. As stated in our mission statement our
interest is to produce a cost effective and portable product, therefore this is
the way it is going to should be done. The more details we put in this research
the better our accomplishment. It appears that the market for it in Asia
started a few years back, and that is why it is of great advantage to have this
done in the United States. People in the USA care a lot about the environment
and always strive to be cost efficient, and our product will bring what they
need to them.
APPENDIX
Citation:
“The
Solar Cooking Archive.” The Solar Cooking Archive. N.p., n.d. Web.
20 Aug. 2010. <http://www.solarcooking.org/>.
“Welcome To TINYTECH Plants.” Welcome
To TINYTECH Plants. N.p., n.d. Web. 20 Aug. 2010.
<http://www.tinytechindia.com/dpsc
“Solar Cookers.” Products
Directory,Indian Products Directory,Wholesale Products Directory,B2B Products
from India. N.p., n.d. Web. 20 Aug. 2010. <http://catalogs.indiamart.com/products/solar-cookers.html>.
