HYBRID CARS 2013 Annual Report Prepared by J. Wise, V. Navarro, J. Quiñonez, C. Fraire Operational Management Report Distributed November 11, 2013 Prepared for CEO and colleagues for finance and operations of CJVV Pharmaceuticals TABLE OF CONTENTS Title Page ____________________________________________ 1 Company Profile ______________________________________ 2 Memo _______________________________________________ 3 Abstract _____________________________________________ 4 Report______________________________________________ 5-8 List of Figures/Tables _________________________________ 9-10 Executie Summary __________________________________ 11-12 References __________________________________________ 13 OUR PRODUCTS OUR MISSION STATEMENT We have a leading portfolio of Our scientific achievements aim to help improve people’s lives by addressing the great challenges of our time - the growing world population, an aging society and the need to use natural resources more efficiently. products and medicine that support wellness and prevention, as well as treatment and cures for deseases across a broad range of therapeutic areas: and we have an industryleading pipeline of promising new products that have the potential to challenge some of the most feared diseases of our time, like Alzheimer’s disease and cancer. GOING GREEN!!! Our primary concern is good healthcare, but we also worry about our environment. As a result, we are taking new measures like reducing our carbon – footprint. Q: How are we going to approach this? A: First, as a few companies are going paperless, we opted to follow the same practices because by doing so, we are saving a lot of trees. Q: Why hybrid cars? A: The purpose of hybrid cars is to offer a cutting-edge and practical solution to contemporary drivers and gas-electric hybrid cars are the most popular options. Some models produce as much as 90% less toxic gases than conventional, non-hybrid vehicles. “You must be the change you wish to see in the world.” – Mahatma Gandhi BENEFITS OF HYBRID CARS Built with lightweight materials, these cars are very compact in size. Hybrid vehicle engines generate fewer emissions, provide good mileage, idle less, and are very fuel efficient. The aerodynamic architecture lessens drag and the tires are built with a unique rubber which lessens fiction. T These hybrid vehicles can help save planet. CVJJ Pharmaceutics To: From: Date: Subject: President & CEO and VP’s for Finance and Operations Members of In House Consulting November 13, 2013 Green Review The enclosed report contains the comparisons of a new fleet of hybrid vehicles opposed to fuel efficient vehicles as well as proposed recommendations for the Green Review. CVJJ Pharmaceutics is taking innovation to the next level by trying to implement a new way to reduce our carbon footprint as a company. It is not only a step into the future of transportation of pharmaceuticals but a broad vision to contributing back to the environment one car at a time. As we all know today the greenhouse gas matter has not only become an issue in our society but has also become a norm in everyone’s day to day life. So the proposed solutions would be setting us apart from other companies as we take the initiative of trying to separate the company from the norm. The report contents are analyzed heavily and thoroughly in the findings that would best suit our company’s needs. The report is based off of the beneficial factors that our company would be taking advantage of and contributing back to the environment all in one swoop. The report will also be examining the financial options of either purchasing or leasing the new fleet of vehicles. It is in our hope and our company’s best interest to review and consider all possibilities of an implementation of a fleet of hybrid vehicles. Please feel free to get in touch with any of our members from our In House Consulting Firm if you have any further questions regarding this matter. We can be reached by phone at 915-571-8432, or by email at cvjjinfophar@gmail.com. Enc. Hybrid Cars Abstract This report explains the advantages of hybrid cars and why a conventional car should be replaced by a hybrid car. Nowadays, a hybrid car is getting more popular and marketable because all the advantages it has to offer. In fact, the report touches on the benefits of owning a hybrid car and some possible effects. Recently, environmental problems have caught the whole world’s attention, the prices and fuel are hiking up and the fuels are limited in supply. Therefore, hybrids cars are here to help people to overcome the problems. Hybrid cars have the ability of saving fuel which ultimately reduces the dependence of foreign fuel. Hybrids cars are more environmental because they emit lesser toxic gas and that helps in overcoming the serious environmental problems like climate change and global warming. In addition, tax incentives which are offered by government only confined to hybrid car owners instead of conventional car owners to encourage and boost up the sales of hybrid cars. Green Review 2013 INTRODUCTION This annual Green Review Report analyzes and examines the importance of taking the initiative of setting our company apart from other company’s by implementing a new system of going green. The report will provide in depth information about greenhouse gases and its effect on the environment as well as a fighting solution that we can impose not only as a company but as residents of this planet. Background on Greenhouse Gases Carbon-Dioxide is the term to describe greenhouse gases, so you can only imagine how much carbon-dioxide is actually going into the environment each and every day. Carbon is a natural element that is found in every living thing and is all over the world, so when a human breathes oxygen and exhale’s it forms a bond called carbon-dioxide. When burning coal, oil or any form of fossil fuel, it produces the deadly element as well. So when driving vehicles, producing products, using electricity we are essentially contributing to the output of carbon-dioxide. Carbon-Dioxide is an invisible gas that cannot be detected by sight or smell which makes it all the more dangerous. Effects of Greenhouse Gases on the Environment Greenhouse gases are basically gases that trap heat in our atmosphere which in turn has a heavy impact on global warming. The Earth’s atmosphere is an acting shield from the harmful rays of the sun, but with all the greenhouse gases in the air, it is preventing some of the heat to leave the atmosphere which in turn is causing the earth to heat up. So these greenhouse gases are essentially harmful to our environment causing not only global warming, but also change in the climate, ozone depletion, and rise of the sea level due to the melting of the ice sheets. United States Environmental Protection Agency The United Stated Environmental Protection Agency (US EPA) was established in December of 1970 in order to work for a cleaner and healthier environment. The agency’s purpose is to ensure the health of humans and the environment and some of the responsibilities is as follows: Ensure all Americans are protected from significant risks to human health and the environment where they live, learn and work Ensure that federal laws are protecting human health and the environment are enforced fairly and effectively Ensure all parts of society including communities, individuals, businesses, and state, local and tribal governments have access to information to effectively participate in managing human health and environmental risks Overview and Sources of Greenhouse Gases Overview of Greenhouse Gases Sources of Greenhouse Gas Emissions Theses charts are measuring the total overview of greenhouse gases from 1990 up until 2011, and as you can see the amount of carbon-dioxide totals to 84% of the total output of the greenhouse gases. Transportation plays a major contributing factor from the sources of total output of greenhouse gas emissions, which over the years has totaled to 28%. In recent measurements from 2011, greenhouse gas emission had totaled 6,702 million metric tons of carbon-dioxide. Compared to 2010 the total of greenhouse gas emissions had dropped by 1.6%, and compared from 2005 and 2011 the greenhouse gas emission had been reduced by a total of 6.9%. So there has been a trend in reduction from these harmful elements due to new innovative methods of energy, electricity and fuel efficient hybrid vehicles. Adoption of Green Transportation With our commitment to reduce our carbon footprint we realize that we cannot go completely green on all aspects of our company. But with a new system of going green we can invest in hybrid vehicles in our transportation department, by implementing this method of transportation. We will not only be reducing our carbon footprint as a company but also reducing our financial transactions pertaining to fuel. Conventional vs. Hybrid Comparison Our team decided to implement this green fleet not only because of the environmental benefits it will provide for our company, but the financial aspects of it as well. As shown in our Hybrid vs. Regular table, the Hyundai Accent is the cheaper of the two vehicles estimated to be around somewhere between fourteen thousand and sixteen thousand, whereas the Toyota Prius is around the nineteen to twenty three thousand range. The downside to the Hyundai Accent other than it not having an electric motor is that the vehicle only gets 28 miles per gallon in the city and 37 miles per gallon on the highway. In the long run we believe that not only is a hybrid vehicle better for our image, but financially better in the long run reducing costs for gasoline. Optimal Hybrid Options If we do decide to go towards the hybrid route, the next decision would be which hybrid model we will choose to purchase. The three most recommended models are the Honda Insight, Honda CR-Z, and Toyota Prius C. The frontrunner price wise is the Honda Insight. At an estimated price of somewhere between eighteen thousand and twenty-two thousand this vehicle provides decent miles per gallon and is a top safety pick which will be beneficial for our drivers. The downside to this hybrid vehicle is that it does drive really rough and has very little driving power. Of the three choices we believe the worst of them to be the Honda CR-Z. Even though the pricing of the CR-Z is reasonable compared to its competitors, the miles per gallon the car receives is that of a regular car. The only benefit of this vehicle is that it does have a lot of driving torque for a hybrid vehicle, but the CR-Z is only a 2 door vehicle that will force our drivers to encounter many dilemmas in delivering our products. Our team ultimately thinks that the best decision for this company would be to purchase the Toyota Prius C. The pricing of this hybrid car is relative to both of its competitors, but blows them away when you compare its miles per gallon (53mpg city/ 46mpg hwy). The only negative aspect of this vehicle is that it drives a little loud which can be tolerated. We believe its benefits will not only improve our company image and driver safety, but also minimize the costs we will have to incur for purchasing a fleet of vehicles. Recommendation So ultimately our team suggests to purchase the Toyota Prius C based off of the information provided to us and the statistical comparison amongst the vehicles provided. By purchasing this hybrid vehicle we as a team believe that our company image will be perceived better than our competitors and will minimize company costs in the long run. Hybrid Vehicle Comparison Table Name of Vehicle 2013 Honda Insight 2013 Toyota Prius C 2013 Honda CR-Z Price Range $18,600 - $22,065 $19,080 - $23,360 $20,625 - $22,305 Estimated mpg MPG: 41 city/44 hwy MPG: 53 city/46 hwy MPG: 36 city/39 hwy Pros -Top Safety Pick -4 Door -Easy To Steer -Great Gas Mileage -Handles Well -122hp With Electric Motor Cons -No Driving Power -Drives Rough -Compact Interior -Drives Loud -2 Door -Very Cramped Interior Regular vs. Hybrid Vehicle Comparison Name of Vehicle 2013 Toyota Prius C 2013 Hyundai Accent Price Range $19,080 - $23,360 $14,545 - $16,095 Estimated mpg MPG: 53 city/46 hwy MPG: 28 city/37 hwy Pros Cons -Easy To Steer -Great Gas Mileage -Compact Interior -Drives Loud -Cheap Price -Large Interior Space -Not Electric/Green -May Lack Safety In Traction HYBRID CARS Executive Summary Our goal is to look for a variety of technologies to protect CVJJ budgets from increasing fuel costs and, at the same time, fulfill with emissions-reduction requirements. Hybrid electric vehicles can help the company improve fuel and lower emissions below comparable vehicles with only internal combustion engines burning gasoline and diesel. Hybrid cars were launched in 1999 by Honda, followed closely by Toyota. Since that time, the Toyota Prius has become the leading hybrid car worldwide. Prius sales in the United States compromise nearly one-half of all hybrid cars sold. Regular cars: Although they have become more fuel efficient, they can’t offer the same efficiency in terms of miles per gallon plus regular cars still pollute the environment. Hybrid cars: In the long run these cars can save money in terms of gasoline since they use a combination of electric motors with gasoline engines. Hybrids cars help the environment by reducing the carbon dioxide emissions. Hybrid cars use both an electric motor with both a battery and a combustion engine with a fuel tank for proportion. Although, they use a minimum of gas to operate, they are emissions-free cars. Hybrid cars are realistically a linking technology in developing and transitional countries. While hybrid cars can be more expensive initially, the fuel savings are recovered based on mileage and driving conditions. Analysis has shown that the hybrid car life cycle cost, including the cost of purchase, fuel and maintenance costs, is, in most cases, less than owning a conventional vehicle. Based on our research of hybrid cars, the Toyota Prius is our top pick in matters of fuel efficiency and overall cost. The Prius has the most efficient mileage per gallon than their competitors, and it also has enough space for our materials transportation needs. The effectiveness of hybrid cars is going to help CVJJ to save thousands of dollras in gasoline at the end of the year, and it is going to help the environment by the reducing the carbon footprint that normal vehicles generate. Hybrid cars References The Pros and Cons of Hybrid Cars - CarsDirect. 2013. The Pros and Cons of Hybrid Cars - CarsDirect. [ONLINE] Available at: http://www.carsdirect.com/green-cars/major-pros-and-cons-of-buying-usedhybrid-cars. [Accessed 18 November 2013]. Hybrid and Electric Center — Edmunds.com. 2013. Hybrid and Electric Center — Edmunds.com. [ONLINE] Available at: http://www.edmunds.com/hybrid/?mktcat=fueleconomy&kw=hybrid+car+pro+and+cons&mktid=ga377 665. [Accessed 18 November 2013]. Best Hybrid Cars Rankings | U.S. News Best Cars. 2013. Best Hybrid Cars Rankings | U.S. News Best Cars. [ONLINE] Available at: http://usnews.rankingsandreviews.com/cars-trucks/rankings/Hybrid-Cars/. [Accessed 18 November 2013]. Survey shows only 35% of hybrid car owners would buy one again. 2013. Survey shows only 35% of hybrid car owners would buy one again. [ONLINE] Available at: http://www.consumerreports.org/cro/news/2012/04/survey-shows-only-35-of-hybrid-car-ownerswould-buy-one-again/index.htm. [Accessed 18 November 2013]. The 10 Best-Selling Hybrid Cars - 24/7 Wall St.. 2013. The 10 Best-Selling Hybrid Cars - 24/7 Wall St.. [ONLINE] Available at: http://247wallst.com/special-report/2012/09/28/the-10-best-selling-hybridcars/. [Accessed 18 November 2013]. http://saferenvironment.wordpress.com/2008/10/31/global-warming-greenhouse-gases-and-theirharmful-effects-%E2%80%93-urgent-reduction-of-these-are-essential-to-save-our-environment/ http://www.epa.gov/climatechange/ghgemissions/usinventoryreport.html http://www.epa.gov/climatestudents/basics/today/carbon-dioxide.html