C
Group 6
Oval CHINA, JAPAN, KOREA published 2008
The Final Project of team ‘Sirius’
BANANA Revolution
7조
OVAL CHINA
Ding Nan
OVAL JAPAN
Sakawa Yuko
OVAL KOREA
Kim JeeYoon
1
성균관대학교 기술조직론 최종프로젝트
C
Oval CHINA, JAPAN, KOREA published 2008
Group 6
A table of contents
Contents
I Executive Summary
II Our Product / Service and Business Model
III Market Analysis
IV Marketing Strategy
V Operation
VI Finance
VII Future Vision
7조
성균관대학교 기술조직론 최종프로젝트
I
Executive summary
Executive Summary
Figures that we should know
7조
91 billion
World population in 2050
95 t
Amount of water to produce 1t of paper
17
Number of trees to produce 1t of paper
373,691 kg
Amount of polluted water every
Just in Korea only
성균관대학교 기술조직론 최종프로젝트
I
Executive Summary
Executive summary
Here is the answer to the problems
7조
성균관대학교 기술조직론 최종프로젝트
II
Our product / service
and business model
Our Product / Service
and Business Model
A. Background knowledge
• Social issue
In 2030, 8.5 billion people consume 1 billion tons of paper
(1 person consume 60 tons / year)
Provide water to people by using
Banana paper(billion ton)
200
180
160
140
120
100
80
60
40
20
0
180
95
Water consumption for
papermaking in 2030
7조
Amount of water will lack
worldwide in 2030
성균관대학교 기술조직론 최종프로젝트
II
Our Product / Service
and Business Model
Our product / service
and business model
A. Background knowledge
•
7조
Origin of banana paper
In India, there is one NPO that produces man-made banana paper
성균관대학교 기술조직론 최종프로젝트
II
Our Product / Service
and Business Model
Our product / service
and business model
B. The industry
• Paper making Industry in East Asia
• Our business is going to be B2B business
C. Our Product
• Banana paper
7조
성균관대학교 기술조직론 최종프로젝트
II
Our Product / Service
and Business Model
Our product / service
and business model
C. Our Product
• Comparison between Banana papermaking and conventional papermaking
BANANA
PAPER
Low cost of raw material
No chemical usage
Special features
Environmentally friendly
; save 95t water and 17
trees every one ton of
paper
No polluted water produced ; Endurable(3,000 times
harder than normal paper)
Fireproof / Waterproof
NORMAL
PAPER
7조
성균관대학교 기술조직론 최종프로젝트
II
Our Product / Service
and Business Model
Our product / service
and business model
D. Our main business model
③ Sell
paper
② Shipping
①Produce
paper
① Produce banana paper in Hainan Island, China
② Ship the produced paper from Hainan island
to Tokyo, Japan
② Sell banana paper in Tokyo
7조
Why Hainan?
• Famous for banana
• Shipping cost is low
• Labor cost is low
Why Tokyo?
• Willing to buy eco-friendly
product
• Shipping cost is low
• Relatively low rent fee
in Hachioji
성균관대학교 기술조직론 최종프로젝트
II
Our Product / Service
and Business Model
Our product / service
and business model
D. Our main business model
Wallpaper
company
End users
Operation
Gown Co.
BANANA
REVOLUTI
ON
Shoji making
company
Product
Cash
7조
성균관대학교 기술조직론 최종프로젝트
II
Our Product / Service
and Business Model
Our product / service
and business model
E. CSR
For Employees :
Opportunities for employment
For Suppliers :
Get rid of banana waste
For Customers :
Special features contribute to their product
Gain good reputation
For Shareholders :
Gain profit
Make contribution to society
For Neighborhood : Ensure living environment of local people
For Society :
7조
Solve the serious environmental issue
성균관대학교 기술조직론 최종프로젝트
III
Market Analysis
Market 7
Analysis
Group
Segmentation
Type of paper
Photocopy paper
Business card
Wrapping paper
Cardboard
Toilet paper
Tissue paper
Disposable paper
Newspaper
Books
Operating gown
Wall paper
Shoji
7조
Durability
×
〇
〇
〇
×
×
×
×
×
〇
〇
〇
Waterproof,Fireproof
×
×
×
〇
×
×
×
×
×
〇
〇
〇
성균관대학교 기술조직론 최종프로젝트
III
Market 7
Analysis
Group
Market Analysis
Market Size Analysis
Paper consumption in Japan
Wallpaper sold in Japan(USD)
42,517,460.00
3,572,000,000.00
35,138,400.00
2,914,000,000.00
29,040,000.00
2,115,000,000.00
(USD)
2005
7조
2005
2006
2006
2007
2007
성균관대학교 기술조직론 최종프로젝트
III
Market 7
Analysis
Group
Market Analysis
Our potential consumer
7조
Type of Company
Main Customers
Business Card company
BCARD, YAMAZAKURA
Wrapping paper company
SANWA SUPPLY INC.
Cardboard company
HOWAY INDUSTRY.CO.LTD
Operation gown company
Meilleur Co., Ltd.
Wall paper company
KAMISM
Shoji company
Matsuda Seisakujo
성균관대학교 기술조직론 최종프로젝트
III
Market Analysis
Market 7
Analysis
Group
Competitor Analysis
Major Competitor: Conventional Paper making Company
•
Oji
Paper Group
• Nippon Paper Group
• Mitsubishi Paper Group
7조
성균관대학교 기술조직론 최종프로젝트
III
Market 7
Analysis
Group
Market Analysis
Strength and Weakness of the competitor
Strength
●They can benefit from scale
economy effect
Weakness
●They use lots of harmful chemicals and
pollute water in the process of papermaking
●They can sale the product at a
relatively cheaper price because
of mass production
●They have to process the polluted water
into fresh water and it is money consuming
●They have their own tree farms
●Their paper price will likely to go high in th
e future due to the water shortage and def
orestation
● People are getting aware of the environme
nt issue. In this case, environmental-friendly
product will be popular.
7조
성균관대학교 기술조직론 최종프로젝트
III
Market 7
Analysis
Group
Market Analysis
SWOT Analysis
Strength
Weakness
•Law material is easy to get with
low price
• Labor cost is low
• No chemical use
• Special features
• Expensive than conventional papers
• Not widely known
• Production is low
Opportunities
Threats
•Develop our customers in other industry • A lot of subsides
• Low entry barrier
• Expand business internationally
•Eco- friendly product is irreversible
trend
7조
성균관대학교 기술조직론 최종프로젝트
III
Market Analysis
Market 7
Analysis
Group
Industry 5 Forces Analysis
A : Low Entry Barrier
B : Low Potential Entrant
C : Threats from subsides
D : Low Bargaining Power of Suppliers
E:
7조
Bargaining power of customers
성균관대학교 기술조직론 최종프로젝트
III
Market Analysis
Market 7
Analysis
Group
Price
$2573~$2700/ ton
Quality Paper
$4012~$5300/ton
Wall Paper
$7203~$8000/ton
Construction use paper
Banana Paper
7조
Price
Range of paper
Stationary Paper
$12,300~$13,000/ton
$3100~$3800/ton
성균관대학교 기술조직론 최종프로젝트
III
Market 7
Analysis
Group
Market Analysis
How we choose our ideal industry
according to price sensitivity
High price
Construction
Low
sensitivity
Wall paper
High
Sensitivity
Stationery
Low price
7조
성균관대학교 기술조직론 최종프로젝트
IV
Marketing Strategy
Marketing
Market
Group
7Analysis
Strategy
Promotion Direct way
Mouth to Mouth
Features of SINCOL wall paper
Features of banana paper
The company’s theory is
to use natural fiber to m
ake their product
They want their products could
prevent from getting wet
Banana paper is made of
natural fiber
SINCOL is our
ideal customer
It is water proof
The paper they use should be
able to absorb odors
7조
The natural fiber could absorb
smell
성균관대학교 기술조직론 최종프로젝트
IV
Marketing
Market
Group
7Analysis
Strategy
Marketing Strategy
Promotion Direct way
Contact with the industry association and government
Promotion indirect way
Banana Revolution
Corporate
with NPO
& CSO
7조
Organizing
tours to our
company
성균관대학교 기술조직론 최종프로젝트
V
Operation
Years
Market
Operation
Group
7Analysis
Operation
1st year
•Spend $850,000 on equipment and
machines, $432,000 to built a 800m²
work shed
•Factory in Hainan, hiring 12 skilled workers,
18 other workers, 5 people running office i
n Tokyo
•Focus on soft board and quality paper
•Spend 5%of total revenue for R&D
2nd / 3rd year
•Buy new machines, adopt new technology
4th year
•We have a significant increase in net
profit due to following 3 reasons
1.the technology is more mature
2.stable customer
3.eco-friendly products are more
welcomed
5th year
•Develop new technology in construction p
aper making
7조
성균관대학교 기술조직론 최종프로젝트
VI
Finance
I. Capital
a. Work shed ( Size: 800 M2 )
b. Equipment & Machinery
c. Miscellaneous
Total
II. Variable Cost
a. Raw Materials
Banana Stems (20 tons)
Utility
Addictives, Resin
Packing Material
Cotton Rags (18tons)
Sub Total
b. Wages
Office Workers ( office 4 People )
Skilled Workers (12People 10 USD/ day)
Unskilled Workers (10People 7 USD/day )
Other Workers
(8 People 7 USD/day )
Sub Total
c. Shipping & Transportation ( 1t/ 50 USD)
Total
7조
Finance
In USD
432,000
850,000
12,400
1,194,400
3,700
2,800
2,928
560
6,320
17,308
7,000
3,600
2,100
1,680
14,380
1,377
33,065
24
성균관대학교 기술조직론 최종프로젝트
VI
Finance
III. Fixed Cost
a. Supervision & Overhead
Finance
In USD
1,200
b. Land Rent
Factory 800m²
Office 80m²
Storages
Total
Total cost of production
Income ( 30tons finished/month )
a. Quality Paper ( 12 tons 3,100USD/t )
b. Soft Board (18 tons 38,00USD/t)
Total
Cost of Production ( fixed cost+ variable cost)
Net Income
7조
3,100
1,650
7,000
11,750
44,815
37,200
68,400
105,600
77,880
27,720
25
성균관대학교 기술조직론 최종프로젝트
VI
Finance
Finance
Break-Even Analysis
Cost
(USD)
Variable cost
1,232,180
Fixed cost
35,612
7조
We need to produce at
least 35,612 tons of paper
to meet the break-even
point and in total five year
we produce 40,000 tons
Amount (t)
26
성균관대학교 기술조직론 최종프로젝트
VI
Finance
Finance
Budget : Projected FCF
Year 1
Year 2
Year 3
Year 4
Year 5
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
128,959
217,839
344,579
989,166
1,274,785
Depreciation
0
12,960
25,700
34,880
53,232
Expenditure
(1,194,440)
(1,219,000)
(1,319,400)
(1,420,300)
(1,530,400)
Free Cash
Flow
434,559
511,799
1,003,746
1,103,746
1,297,617
Initial
Capital
Net Profit
7조
27
성균관대학교 기술조직론 최종프로젝트
VI
Finance
Finance
Budget : Projected I/S
Year 1
Year 2
Year 3
Year 4
Year 5
1,267,200
1,537,776
1,937,464
2,992,449
4,45849,7
Cost of good sold
934,560
1,005,980
1,227,295
1,718,213
2,491,408
Gross Profit
332,640
531,796
710,169
1,274,236
1,967,341
Promotion
(Ads&CSR)
172,330
259,000
279,000
343,000
490,550
16,632
36,589
45,508
63,711
98,367
0
12,960
25,700
34,880
53,232
143,678
336,207
366,988
1,042,645
1,325,242
14,719
18,368
22,409
32,479
50,407
128,959
217,839
344,579
989,166
1,274,785
Sales Revenue
Operating
Expense(R&D 5%)
Depreciation
EBI
Inflation (3.1%)
Net Income
7조
28
성균관대학교 기술조직론 최종프로젝트
VI
Finance
Finance
Budget : Projected B/S
Initial
State
Year 1
Year2
Year3
1,500,000
434,559
515,085
Fixed
Assets
0
1,194,440
Total
Assets
1,500,000
Paid in
capital
Cash
Capital
Reserved
Year4
Year5
859,264
1,747,530
2,912,215
1,219,000
1,319,400
1,420,300
1,530,400
1,628,959
1,834,085
2,178,664
3,167,830
4,342,615
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
0
0
0
0
0
0
128,959
334,085
678,664
1,667,830
2,942,615
1,628,959
1,834,085
2,178,664
3,167,830
4,342,615
Retained
Earnings
Total
Assets
7조
1,500,000
29
성균관대학교 기술조직론 최종프로젝트
VII Future Vision
Future Vision
Short-term vision
•Our goal is to meet a profit of 2 million USD in 5 years.
Mid-term vision
•Expand our business to other fields such as candles, bags, etc.
•Expand our business to the other countries and make transnational
company, arousing people’s awareness towards eco and save the
earth
Long-term vision
• As a social entrepreneur, it is our commitment to solve the most
serious environmental problem we human-beings are facing
7조
성균관대학교 기술조직론 최종프로젝트
30
VII Future Vision
7조
Future Vision
성균관대학교 기술조직론 최종프로젝트
31
Thank You
7조
성균관대학교 기술조직론 최종프로젝트
32