Business creation
Table of Contents
Key elements in the business creation. 10
Recycling facilities and locations. 12
Summary
The business creation is about bottle recycling business. The strategies will involve collecting the bottles from disposal location, recycling these bottles, and designing different brands of the bottles. These brands will be durable and re-usable, thus making the consumers use these bottles in carrying water and other drinks. The reason for starting this business is the plastic bottles that degrade the environment, the high price of durable and re-usable bottles, and the consumer health of not consuming adequate water or consuming dirty water. The business is considered because it helps in environmental conservation, generates income, and improves the living standards of UK consumers.
Introduction
Creating a business out of a problem in the economy is an important factor that promotes the nation’s economy. For instance, creating waste recycling improves the environment and reduces material wastage in the majority of the production industries. This means that the production of plastic bottles using raw materials is expensive compared to the production of bottles using recycled wastes (Garfi et al. 2016). The world is changing, and people prefer cheap and durable products. The majority of consumers prefer materials that will satisfy their needs in different ways. This demand relates to the increasing amount of wastes that keeps heaping in our environment. Since we need a clean and conducive environment, we consider a better way of disposing of plastic materials like plastic bottles (Truelove et al. 2016). When we dig compost heaps for such wastes, the compost heaps will fill up too fast, thus exposing these materials to the environment.
Additionally, these plastic bottles take years to decompose, making such disposal criteria inapplicable for such wastes. Alternatively, burning these plastic materials will release carbon, thus causing air pollution. This means that we need strategies like recycling for sustainability and environmental protection. This consideration rate bottle recycling an important business to be considered for creation and management.
Bottle creation business has numerous opportunities and drawbacks that enables its start-up to be challenging. Among the opportunities are the availability of plastic wastes and the high demand for durable plastic bottles in the UK and larger parts of Europe. This means that there is a ready market for this business. Alternatively, government and environmental policies accelerate the business’s creation and growth since the business supports green environmental campaigns because it eliminates a large part of environmental waste (Charter 2017). The major drawback of the bottle creation business is competition from other manufacturing firms and other production firms. Among the core competitors are water companies that have a larger market scope in the UK. Therefore, the business will majorly concern recycling bottles in a specific design that enables users to re-use them as often as possible. The bottles that require to be designed will be durable, branded in different ways, and meet to feel the needs of different users at an affordable price. The business is expected to penetrate the market because composite plastic materials are expected to create heavy and durable plastic bottles compared to the manufactured bottles (Lou and Mativenga 2017). The main of the report is to explore key considerations in the recycling bottle business and the key strategies that may enable the business to sustain and grow the UK competitive market.
External audit
Through observation and literature review, we discovered the shortage of durable plastic bottles in the UK. This was also supported by the high purchase of water through the regular plastic bottles and the heaping of these bottles in the compost heap. The major literature used is Stakeholder perception of marine plastic waste management in the UK by McNicholas and Cotton (2019) and A million bottles a minute: World’s plastic binge ‘as dangerous as climate change’ by Laville and Taylor (2017). Besides, the price of the reusable bottle in the UK is too high, and the majority of the UK working class may not afford these designed bottles. Different bottles exist in the market, although their designs are not pleasing to the consumers. In the UK market, most plastic bottles are too light, small, and have a shorter life cycle. This means that when used for selling water, water is packed once, and the bottle is thrown away after use. This practice wastes a lot of resources and pollutes the environment. This means that creating a reusable bottle can easily penetrate the UK market due to the existing market gap. The following are major factors the make this business create an opportunity.
Sources of materials
Unlike oil, the recycled bottles are not mined from the ground since they are readily available products that have been used and thrown away. This means that the sources of the materials for these bottles are waste products that have been thrown away. The materials for our business are used materials that have been considered waste products. Most of these waste products can be found in the garbage and composite heaps. This means that the business does not require many funds in outsourcing the components from different countries, similar to Boeing Company. Since these materials are wastes, their collections can be done by anyone, which is rendered legal. Therefore local consumers can collect the bottles at a lower price since they have nothing to lose compared to the extraction of the raw materials from the ground. According to Pandit et al. (2019), the production cost of the recycling bottles is low compared to the originally manufactured products, making the business incur huge profits by acquiring the products at lower costs and selling them at an average cost. The sources of these plastic bottle materials give the business a higher competitive advantage compared to other producers.
The market of the products
Through market analysis, the target market of these recycled bottles is UK citizens and the European population. Besides, the majority of the UK population lack portable plastic bottles since most existing plastic bottles are made to be used once, although those that are reused are expensive (McCallum 2018). This population scope will be enough to make this recycled bottle business grow from local to global business. Among the consumers of these recycled plastic bottles are sports followers majorly the English Football League fans, and business people who spent a lot of time in the market place. Additionally, students are also considered consumers for these recycled plastic bottles, making the business have a larger market for sustainability and growth. In general, all the individuals in need of durable and reusable plastic bottles are considered the business market, thus making the business have a greater potential for penetration.
Research methodology
The research adopted observation as the key data collection method supported by secondary sources like the UK environmental journals and report. The sample size population is not clearly defined because the project randomly took unplanned observation in the London town centre. Through observation, we identified that most of the bottles designed to be reused for various purposes could mostly be spotted in supermarkets. These multipurpose bottles are sold at high prices, thus making most of the consumers to fail in acquiring those (Russo et al. 2019). The reason for their increase in prices is because of the production cost of these bottles.
Similarly, there are numerous plastic bottles in major compost heaps within the United Kingdom. For the increase in the number of plastic bottles in the UK, the EU is waging war against plastic waste as part of an urgent plan to clean up Europe’s act and ensure that every piece of packaging on the continent is reusable or recyclable by 2030 (Boffey 2018). Therefore, it is important to help the UK government in waste reduction and environmental conservation. The majority of UK citizens throw away bottles, especially water, and drink plastic bottles after use (Hawkins et al. 2015). These practices have increased the number of plastic waste materials in the UK environment. Therefore, establishing a better strategy for reducing waste and other environmental pollution. From the observation, we identified that these plastic bottles could be recycled and designed in a form that can sustain human needs for a longer period compared to the current plastic bottles. The project will be triggered to conserve the environment, improves individuals’ living standards, and boost the UK economic growth. Therefore, the business will recycle the UK local plastic bottles to develop plastic products that can be sold globally at a favourable cost. When the business creation succeeds, the business will improve the UK’s status in terms of environment, revenue, and individual living standard. The methodology’s challenge is the inclusion of the durable plastic bottles in the composite heap (Singh et al. 2017). Since there are durable plastic bottles in the compost heaps, the research is uncertain whether the recycling strategy will eliminate waste disposal issues. The difference is that these durable plastic bottles in the compost heaps were recorded to be lower compared to the regular plastic bottles. Therefore, the rate of plastic bottles will be reduced when the lifecycle of these bottles is reduced (Garfi et al. 2016).
Personas
The reason for designing recycled bottles is to improve UK citizens’ living standards by providing them with containers for drinking water or other types of drinks. The majority of the consumers are students, football fans and players, other sports fans, business people, and the entire UK population. During summer, more people develop thirst in the UK, thus increasing the demand for water and other drinks (Wang et al. 2016). Their demand rate makes them seek water from nearby shops, thus spending funds on the water they could collect from home. After consuming water or the drinks they purchased, individuals throw away the bottles in the dustbins, some along the road, and while some on land. This practice makes the environment untidy. Therefore, the need to develop durable bottles rather than light polyethylene terephthalate (PET) bottles is required. These durable and reusable bottles will enable them to collect water from home and carry them in their bags. They can also use these bottles to carry drinks from home. The solution is also designed to save the UK environment from pollution. Pollution interferes with the life of the living organisms, therefore, making the environment unfit for survival. These plastic bottles in the UK are thrown on ground and water bodies making the water unfit for drinking and interferes with the aquatic life (Sadhu et al. 2018). Therefore, reducing the number of bottle wastes thrown in these water bodies will improve the UK environment and make the environment fit for survival.
Pain points
The UK water and drink consumers are experiencing difficulties in using the light plastic bottles. After using these bottles, they throw away the bottles, thus interfering with their environment and make their mater impure. Different individuals use these light PET bottles to carry different things, including chemical (Gallo et al. 2018). When these bottles are disposed of lazily in the environment, these chemicals are exposed to the atmosphere, thus injecting poison to the atmosphere. some plastic bottles may be carried by running water and disposed of in lakes or oceans. These practices make water unfit for human consumption. Besides, the UK consumers also have difficulties in accessing durable bottles. The majority of the UK durable bottles are expensive and majorly sold in supermarkets. Therefore, users have difficulties in purchasing them, although they are interested in accessing them at a favourable price. Besides, most of the treated water sold along the roads or in shops may be rendered impure since individuals are unaware of these water sources. Some may lack proper treatment but packed for consumption, thus risking human life.
Value proportion
Apart from the financial income in businesses, every business also has an alternative mission and vision (Porter 2019). This business will, therefore, provide income, conserve the environment and boost living standards of the consumers. Through recycling these bottles and selling them to local and global markets like the UK and European markets, the UK government will earn revenue. Besides, the project will play a major part in environmental preservation. Therefore, the light plastic bottle has a shorter life cycle, making the UK compost heaps to be filled with these plastic bottles. These plastic bottles have difficulties in decomposing, thus making the compost heaps unproductive for compost manure.
Additionally, plastic bottles that are disposed of the environment and water bodies makes the environment untidy and water unfit for human consumption. The project will produce bottles that will take longer life cycles and be recycled after its life cycle ends. These bottles brands will be vended at a lower price to the locals making the local save funds and access bottles that will help them save the funds they were using in buying water along the roads and shops or market places. Therefore, they will carry drinks and water from the home of which they will drink in case of thirst. These plastic bottles will be made in a portable format, thus making it easier for consumers to carry such bottles to various occasions. Since most of these water sold along the roads and shops lack proper sources, they may be contaminated and unfit for human consumption.
Solution design
Since the materials are available, these materials will be purchased from locals who will collect them at a lower price and sterilized them thoroughly. After the removals of the paper labels, these materials will be melted and recycled using a recycling machine. The produced products will, therefore, be tested within the section of the local market. When the materials indicate success within the local market, the volume of production and the market scope will be increased.
Key elements in the business creation
As an entrepreneur, we will seek information about the available products in the market and the core areas in the UK that require a high demand for durable and reusable plastic bottles. This will include the stations for collecting these waste plastic bottles from the locals. The market gap of each city and town will also be analyzed to improve in the distribution of the products to the market. Idea generation enables individuals to be more creative and innovative, thus improving their start-up business (Toubia and Netzer 2016). Therefore, through the idea generation, we will identify the market gap and design products that will fit the target users. The idea generation will be conducted from the internal idea sources, external idea sources, and crowdsourcing. Internal idea sources include employees’ perceptions and comments from other internal stakeholders. According to Ardito and Petruzzelli (2017), the business’s external sources make the internal employees and stakeholders open-minded and innovative. From the external sources if the business, the project will be able to generate products that satisfy the user needs depending on the market. These sources of the external business include customers, bottle distributors, and suppliers. Therefore, the recommended way of accessing information concerning competitors and markets is by using consumers, distributors, and suppliers to spy on the market trend before creating the product. The business will require a crowdsourcing strategy for its innovation strategy and improves its penetration power to both the local and global markets (Parida et al. 2015). Therefore, the business will organize for some advice from the researchers, customers, and business partners. This means that our focus population will be majorly crowdsourcing groups within the UK before moving to the international market. Since the success of a business relies on innovation and their impacts on crowdsourcing, the best solution for any issue within our business will be to seek advice from the crowdsourcing group (Ghezzi et al. 2018).
The solution design will also rely on strategies like idea screening, concept testing, market strategy development, studying market competitors, and penetration strategy for the business. Haider et al. (2016) claimed that idea screening in startup businesses is global to ensure market penetration of a new business in a new market. Through the tactic, market penetration is easier despite the water suppliers’ stability and bottlers companies in the UK. In the concept testing, we will test each model within a section of the market and identify the feedback to develop a large number of products that will penetrate the market. After identifying the needs of the consumers, we will identify the core strategy for market development. This will include whether the plastic bottles’ brand will be changed, quality to be added, or the weight of the bottles to be modified. In market development, we will study strategies for the local market and the local competitors, the challenges these local competitors face and study the dynamicity of the market. This strategy will enable the business to identify its opportunities and challenges based on the market gap and consumer behaviours, thus developing a better market stability strategy.
Resource requirements
Recycling facilities and locations
These are facilities and the machines that will be used to recycle bottles to provide the desired brands and plastic bottles. According to White and Reid (2018), technology should be considered in the modern bottle production to improve the quality of the products. These machines include the PE/PP film washing machines, bottle crushing machine, washer and Granulator.
Permit and licenses
According to the copyright licensing agency in the United Kingdom, all the production companies, be it private or public company needs to be permitted to carry out their business in the United Kingdom environment as well as entire Europe (Kim et al. 2018, p. 13). Therefore, the company need to be registered and licensed for a successful operation.
Business systems
Apart from the machines and government policies, we need to consider the key stakeholders of the business. This will include the employees, suppliers, distributors, dealers, locals and waste bottle collectors, marketers and sellers. The business system will link all these stakeholders by accomplishing their goals with a means of accomplishing the organizational goal. In addition, we require about 100,000 Sterling pounds for the business creation start-up and management.
Sharing economy model
Market competition is a major factor that hinders the success of many businesses today (Dereli 2015). This factor may not hinder our business success in case we use market data and share ideas with different stakeholders. For the bottle recycling technology to sustain the market competition, we will maintain a close relationship with other stakeholders within the market place. This will include customers, partners, suppliers, and distributors of the products. These stakeholders will be able to share information about products and brands that are expected, the quality and the quantity of the services required, and the information about the marketplace. Besides, the dynamicity of the market and change in consumer expectations will also be attained through sharing economy models. Within the marketplace, consumers will be able to provide their needs for the type of product brands required. Distributors will act as a platform where market place information reaches bottle recyclers (our business). The bottle recyclers will then modify the models and provide the right product and service to the consumers.
Business model
The model innovation answers the four main questions: what, who, how, and the value.
The above business model will response the query of what business to create, how to create it, what values it needs to consider, and who the core consumers in this business are. Afterwards, the business will specify the methods of collecting the bottles (how) and produce a design of plastic bottles (what). As entrepreneurs, market analysis and pricing will be done based on the market price (value). This means that the price of the products should fall within the market price but below the price of similar manufactured products using raw materials. This strategy will save the UK consumers from buying water regularly from the shops and make them have choices of what to carry in their plastic bottles (who).
Project viability
The project will make water collection efficient and effective for UK consumers. This means that the consumers will be able to carry water to different occasions, wash these bottles after use and to re-use the bottles to carry either water or other drinks. The strategy will improve the health status of the individuals since these individuals will have containers for collecting water for consumption in case of thirst or making the body fit. Since the bottles will be sold at a lower price compared to other durable and reusable bottles, the consumers will be able to save a lot of funds. The strategy of recycling bottles and production of durable bottles increases the lifecycle of the plastic bottles. Therefore the business will improve the tidiness of the environment by reducing the number of disposed of plastic bottles in the environment.
Conclusion
Globally, the majority of the start-up business experience a lot of difficulties in penetrating the market. Therefore, adequate planning and better strategies are recommended for the business to compete favourably with the existing businesses. According to Turker and Tischner (2017), the majority of the businesses consume a lot of funds in start-up and experience a lot of difficulties, thus making their penetration challenging. The main aim for the business was to satisfy human needs, which has been achieved by lowering the bottle prices, production of models and designs that can be easily carried and ensuring the bottle design can carry drinks and protect from any environmental contamination. This action leaves business creation as the route cause for business success or failure. Therefore, the bottle recycling business will penetrate the UK and competitive European market through the business creation strategies adopted.
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Appendix.
The initial shape of bottles to be recycled
Photo accessed from The Zambezian gallery
The final product bottles after recycling
Photo accessed from DHgate.com gallery