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1.1.1 Company Name
An eco-build solution unit PyroGuard focuses on leading the construction company toward eco-friendly and innovative materials. The unit's specific product fire fire-resistant concrete is developed to maintain sustainability approaches within the company to minimize carbon dioxide emissions and supply high-standard eco-friendly conscious solutions that are helpful to achieve evolving construction market requirements.
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1.1.2 Company Logo
Figure 1: PyroGuard Fire Residence Construction Company Logo
1.1.3 Types of Business Entity
The unit of Ecobuild Solutions works as a limited liability corporation blending limited liability benefits for its valuable shareholders with corporation flexibility (Pyroguard , 2022). This type of legal framework maintains protection for its shareholders and investors while permitting the corporation to enhance the adaptability that is required for navigating competitive and dynamic construction material corporations (Crunchbase, 2019).
1.1.4 Company’s Future Vision
The company's vision is to evolve as a foremost sustainable construction material provider by eliminating the carbon footprint within construction corporations.
1.1.5 Company’s Current Mission
The company's mission is Fire-resistant concrete implementation to minimize the emission of carbon dioxide by 20% at the end of 2030 and contribute to eco-friendly and sustainable construction Egypt industry.
Core value
The company's core values will demonstrate the policies that will influence their decision, success and directions. Those are as follows-
Figure 2: The core value of PyroGuard
1.1.6 Objectives
Objectives | Measures | Timeline |
To establish the new product fire resistant concrete and its market as a major product | Successful launch of the product with achieving customer feedback and demand penetration | Within the next 8 months |
Acquire 15% of the market share in this evolving Egypt construction sector | Establishing quarterly reports on market share with client surveys and market analysis | Within the next 2 year |
Develop collaboration with major stakeholders for the company's sustainable growth | Analyze strategic partnership influence on company positioning | Within the next 15 months |
Key success factors
1.1.7 Goals
Goals | Measures | Timeline |
Received recognition for green and eco-friendly construction product | Recognition status as well as compliance with sustainable and environmental standards | Within the next 2 year |
Minimize the emission of carbon dioxide by 20% | Evaluating the annual report on carbon emissions and implementing sustainable and eco-friendly approaches | At the end of the year 2030 |
Enhance 25% of sales revenue annually | Quarterly sales report, customer satisfaction rate and market share enhancement |
The fire-resistant concrete product is a revolutionary innovation that is particularly manufactured to identify crucial concerns about the environment and increase the durability and safety of the construction structure within construction corporations. It poses maximum fire resistance classification that comes under EN13501-1:2018” which specified classification approaches of fire for building elements and establishment of construction material. This A1 classification achieves the entire classification requirement and it is non-combustible. This classification was demonstrated in the ‘European Commission decision’ that Incorporated less than 1% weight concrete (Concretecentre, 2023). Therefore, this contraction material is significantly engineered to reduce the emitted toxic fumes that are generated during combustion line up with eco-friendly construction solutions' growing demand.
Key features
This material possesses excellent strength supplies structural durability and is intermitted that can achieve construction building standards. This exceptional strength material can maintain elements' longevity and reliability in multiple construction applications (Nobelcert, 2022).
It can also show excellence in the capability to effectively minimize toxins fumes while minimizing carbon dioxide emission during a fire. The traditional production of concrete often leads to environmental pollution by emitting harmful carbon dioxide or numerous toxic gases. Therefore, these innovative developments can eliminate such types of gas emissions leading to a healthy and cleaner environment (Concretecentre, 2023). The formulation of the material incorporates multiple elements that can increase its fire resistance and make its construction a structural ideal solution or selection in that fire resistance and security are paramount. This engineering can supply protection against fire's destructive influence.
This material composition is carefully developed to include eco-friendly materials that can include sustainable draw element utilisation and sustainable production procedure adaptation. The priority can be carbon footprint minimisation and enhancing energy efficiency.
The product characteristic is also versatile and can be used within large construction applications. Commercial infrastructure and residential construction development can use this product due to its versatility it is a perfect selection for engineers who are focused on maintaining structural resilience and sustainability (Sustainableconcrete, 2022). The development of the product also incorporates construction corporation standard and compliance with regulations that can demonstrate its commitment to maintaining safety and security to achieve all construction development requirement that leads toward achieving larger and long-term sustainability goals. This product innovation illustrates the PyroGuard company's responsibility to exceed the boundaries of the effort of traditional materials within construction development. This engineering and innovative product can demonstrate a transformation toward a traditional material alternative that can maintain corporate social responsibility and environmental initiative (Theconstructor, 2019). Hence it can be stated the product fire-resistant concrete is a blend of excellent strength, fire resistance and durability that can help to minimize carbon footprint and help the construction sector to take a step forward to safety and sustainability.
1.3.1 Environmental Analysis
PEST analysis
SWOT analysis
That's SWOT analysis has been conducted to understand the company's current position and its internal factors.
Strength | Weakness |
? PyroGuard is a popular international construction corporation that supplies eco-build solutions ? The company has 400 sites and 10000 workers (Linkedin, 2022) ? The company plant capacity is 10.2 MT ? The corporation possesses a powerful work culture ? The company's commitment to sustainability maintenance positions itself as a responsible corporation | ? The company has limited market awareness ? The company poses raw material dependency (Proguard, 2022) ? Severe Pandemic impact on the company |
Opportunity | Threat |
? The company can make the Construction market size grow by promoting fire-resistant concrete ? The company can get a government grant for their new product fire resistant concrete ? The company can establish collaboration with local construction corporations and builders (Liu et al., 2020) | ? The company can experience intense construction sector competition ? Economic fluctuation and uncertain events can highly influence company production and sales (Rosqvist, Chown and Stenning, 2020) ? The environmental regulation strictly hinders the new product operation adjustment |
Internal factors External factors | Strengths (S) S1: PyroGuard has significant innovation capacity S2: High safety level S3: The company also poses sufficient accessible resources S4: The company focus on sustainability (Salman and Sherif El Adaway, 2018) | Weaknesses (W) W1: limited market awareness and poses high strength of the existing product that can create challenges W2: The company poses raw material dependency (Proguard, 2022) W3: Severe Pandemic impact on the company ntense competition can create challenges for the corporation |
Opportunities (O) O1: To establish collaborating partnership O2: Limited option in fire resistant construction O3: Business expansion O4: Achieve sustainability image | SO Strategies S1-O3: we will focus on innovation within corporation that can help in business growth S4-O2: the company has sustainable image however focusing on eco-conscious partner can help us to maintain sustainability image | WO strategies W1-O3: we will make investment in business promotion for business expansion W2-O2: supplying local sources Raw material can help up to achieves the opportunity of fire resistant constructions limited options |
Threats (T) T1: instance competition T2: High operating cost T3: strict environmental regulations T4: Economic fluctuation | ST strategies S 1,3 & 4- T3 the company maintain sustainability therefore appropriate environmental regulatory support can help to maintain this images | WT Strategies W1,2&3-T1 we will promote out business through social marketing campaign W2-T2: We will do continuous research for discovering alternative resources |
1.3.2 Strategy Formulation
Strategic formulation can lead the corporation toward maintaining its sustainable growth and achieve its objective. The corporation PyroGuard can adopt a significant initiative that tailors their eco-build resolution division to gain a competitive advantage and meet objectives. Considering all of the above analysis some marketing strategy has been formulated.
Product
Promotion
The social media platform incorporation can help to company to reach a large customer base by enhancing client engagement (Malesev and Cherry, 2021).
1.4.1 Legal and Health Requirements
Health and legal requirement achievement is essential for the construction company PyroGuard for establishing a division solution on eco build. The company need to ensure they are compliant with “Egyptian code 203 (2006)” that helps to maintain all legal consequences. The code demonstrated significant regulations and guidelines that bound the construction company to ensure their distribution, environmental influence and production procedure (Scirp, 2022). These regulations' adherence helps to maintain the function of the division within guidelines that are helpful to boost employee well-being and health as well as the larger community. Strict guideline maintenance helps the company to maintain its standards by eliminating all legal challenges and aligning its corporate responsibility commitment toward its Sustainable approaches. This is valuable to establish a significant holistic construction corporation reputation within the construction market while attracting major stakeholders. Continuous observation and legal consequences up to date can help to maintain the division's integrity.
1.4.2 Location and Facility
The division of eco-build solutions of PyroGuard needs an optimal location facility with a centralizing initiative aligning with cutting-edge Technology for fire-resistant concrete manufacturing. This initiative selection can provide the company with the opportunity to increase functional efficiency by smoothing the production procedure and maintaining production quality consistency (Akhtarshenas et al., 2023). The modified Technology incorporation within corporation facilities can help to lead the company to achieve efficient division capability that is valuable to achieve evolving market demand by supplying quick responses and ensuring the company's competitive advantage within this construction market. Along with that, a centralized and focused location can help to provide efficient supply chain logistics that permit for product distribution within the Egypt market.
1.4.3 Insurance
The company's solution towards building will include the significant corporation insurance coverage including product liability and property insurance. This initiative can help to supply a significant security toward fire-resistant products procedure facility and prevent from budget losses and potential damages (Masood, Lim and González, 2021). The company liability coverage provides the opportunity to protect the company financially in the aspect of uncertain events occurrence or accidents happening. On the other hand, product insurance provides the advantage of safeguarding the company against any product-relevant challenges. This type of insurance incorporation helps the company eliminate challenges and safeguard its financial aspect and assets while establishing brand loyalty and resilience within this intense construction market (Avotra et al., 2021). Regular adjustment and monetization within insurance policies need to be function and properly line up with growing business demands that help to provide a competitive advantage.
1.4.4 Staffing Requirements
The significance of addressing top talent human resources for the build solution of PyroGuard is paramount for hiring skilled personnel for fire-resistant concrete manufacturing and controlling its sales and quality standards (Holbeche, 2022). The company need near about 15 people's production team who will possess excellence and experience. They also need 10 people's quality control group that can help them to maintain standard adherence with the continual improvement of the product that achieves the efficient quality standards. They also require a sales team that can help them to concentrate on promoting their new product by highlighting its innovative characteristics and features. They are also helpful in establishing long-term relationships with clients and enhancing client engagement. Budgeting on training sessions is paramount for maintaining personal enhancing ability to remain up to date about modification and one step ahead toward holding a leading giant construction industry.
1.4.5 Operations
The solution of PyroGuard will need to focus on their supply chain to provide excellent operations that are valuable to achieve evolving market demand. A smooth manufacturing process incorporates with incorporating modern technology and adequate practices within new product process (Harb and Karami-Akkary, 2019). The excellence of new product operation helps to provide consistency in supplying high-standard manufacture that is completed within the scheduled time to reach customer satisfaction. Production operation regular optimization with logistic functioning can be integral part of the corporation supply chain that is valuable to enhance their adaptability toward economic fluctuation while gaining competitive advantage (Avotra et al., 2021). Regular monitoring and assessment of corporation function permit to significant guidance the material improvement by supplying effective eco-conscious solutions.
1.4.6 Suppliers and Food Preparation
The PyroGuard construction corporations' effective solution through manufacturing fire-resistant concrete will develop a significant collaboration with the major reliable raw material supplier to ensure supply chain sustainability and stability with sufficient raw material resources (lefarge, 2022). This supplier acts as a core element of the corporation in supplying standard different concrete elements such as clay iron ore, shale, shells and limestone. These are the key components for manufacturing the fire-resistant concrete (Concretecentre, 2023). Establishing long-term relationships with diverse suppliers to gain production consistency, raw material resources sufficiency and meet quality standards contributing to the unit's capability to achieve evolving market demand. Regular meetings with the supplier help to establish effective collaboration and convey the corporation's expectations toward them. That is helpful to enhance the corporation's capability toward evolving construction industry market dynamics while eliminating all possible challenges that are associated with concrete production procedures (Warner and Wäger, 2019). It helps to faster supplier trust in the company that increases the resilience of the corporation's operation.
1.4.7 Inventory Purchasing
In order to maintain significant stock control within the corporation the corporation incorporates significant inventory management methods that permit real-time raw material and production level completion optimisation that are value-able to maintain production standards (Huang and Farboudi Jahromi, 2020). It also helps to reduce the operating and holding budget while optimizing the turnover of the inventory system. Incorporating modified inventory approaches such as demand forecasting and just-time delivery the unit can games seamless supply chain management that are helpful to minimize wastage and provide proper responses toward the uncertain event and market fluctuation (Lyu et al., 2020). The purchasing inventory system adaptation leads the corporation to ensure the sufficiency of production to meet evolving client expectations and increase cooperation supply chain effectiveness within the construction business landscape. Those inventory systems need continuous optimization and adjustment connecting with effective business requirements and growing market demands.
1.4.8 Working Hours
The standard working hour adherence within PyroGuard Corporation for their unit eco build helps to provide the opportunity to enhance their flexibility and adaptability to meet the scheduled time to complete the task. The working hours need to be developed from Monday to Friday 8:00 a.m. to 5:00 p.m... Through these the company can establish is structured scheduling framework that are helpful to bind their employee within a time limit and maintain operational consistency. Despite this the unit understands corporations' differentiation hence they need also to consider flexible working to incorporate a perfect work culture that can help to boost employee modalay by immediately achieving client requirements or production requirements (Cooper, 2019). The innovation adaptability of the entire corporation led the project team towards success by effectively achieving market dynamic change criteria and providing quick responses toward customers' demands. It is significant to increase corporation efficiency to achieve timely delivery and schedule completion of production. The combination of flexibility and working hour limit enhances the demand for equilibrium setting the cultural circumstances and construction industries agility (López Ruiz, Roca Ramón and Gassó Domingo, 2019). That leads the corporation to achieve effectiveness and employee safety. Continuous working hour framework evaluation can help the company to identify the risk associated with non-achieving completion time and help to review productivity optimization.
This strategy was established to meet company goals and restructure the company model.
Business culture and structure
Figure: Organisational structure
The company unit culture will highlight sustainability, excellence commitment and innovation culture development. An innovative and collaborative work culture will promote the sharing leadership of the group by establishing open communication. It also helps to increase workers' adaptability to add new initiative or adjustment within the supply chain management and help to boost awareness significance (Jin, Cheng and Zeng, 2019).
Other hand the company will include a functional structure to provide effectiveness of their supply chain management that incorporate different sales, administration, standard control and production department. The individual department has its own responsibility that is responsible for its activities that help to develop experience.
Balanced scorecard
This initiative will be incorporated to evaluate corporation performance by developing adjustment measurements (Chong et al., 2019). It will help to make a bridge between corporation objectives and corporation performance.
Point of view or perspective | Objectives | KPIs | Targets |
Client perspective | Increasing client satisfaction level | Feedback rate gained from client | Meet 80% of client satisfaction |
Enhancing market growth | Increase market share | Enhance 50% market growth within next 8 months | |
Financial perspective | Enhance revenue | Quarterly sales revenue | Increase revenue by 25% per year |
Effective cost management | COGS (cost of goods sold) | Ensure the revenue not get below 60% | |
Learning perspective | Workers growth and awareness | Training hours flexibility | 14 hours per month |
Product innovation | New product launch | Within next one year | |
Internal procedure perspective | Production procedure optimization | Efficiency ratio | Achieve enhncement by 90% |
Product standard maintenance l | The rate of defection occurred | Below 3% |
The company PyroGuard will maintain its budget through a debt and equity mixture. The initial operating price of the corporation incorporates effective market analysis regulatory and legal compliance marketing initiative and facility development.
The new business startup strategy will be incorporated at the end of the year 2020 through engaging with social media marketing to attract and increase fire-resistant concrete awareness among large customers. It will also include the purchase of raw materials for manufacturing fire-resistant concrete and hiring new talent that has experience in the manufacturing concrete. The expected price is estimated as below-
Category | Price (EGP) |
Raw material purchase | 20 000 |
Market analysis | 30000 |
Facility development | 60000 |
Regulatory and legal compliances | 10000 |
Marketing | 25000 |
Total price | 145000 |
Sales forecast and profit margin
In the first year of the new production development a traditional estimation will be made on sales forecasting through considering fire resistant concrete continuous adaptation and market penetration initiatives. To calculate profit margin is 20% considering industry quality level and production budget (See appendix 1).
Figure 3: Profit and sales forecast
Cost of operations
It includes all expenses such as selling expenses, energy, raw material, distribution, fuel price, coal and electricity. That is estimated at 142000 EGP for the fire resistance concrete’s first year.
Category | Cost (EGP) |
Raw material | 40000 |
selling | 3000 |
distribution | 2000 |
energy | 20000 |
Electricity | 7000 |
Fuel | 25000 |
Coal | 45000 |
Total expenses | 142000 |
Workers salary is operating expenses significant part.
Role | Employee number | Monthly salary average (EGP) | Total salary per year (EGP) |
Production manager | 1 | 20000 | 240000 |
Quality control expert | 2 | 15000 | 360000 |
Sales representative | 3 | 12000 | 432000 |
Administrative worker | 2 | 10000 | 240000 |
Total Salaries expenses | 1272000 |
Break-even analysis
The breakeven analysis will demonstrate the corporations first-year budget that will recover through the fire resistant concrete project.
Breakeven Analysis
PyroGuard
Cost Description | Fixed Costs (EGP) S | Variable Expenses (EGP) |
Inventory or Materials | - | 21000 |
Other expenses and Misc | 9000 | 9000 |
Salaries (includes payroll taxes) | 45000 | 5000 |
Supplies | 10000 | 1500 |
Repairs maintenance | 4000 | 2000 |
Advertising and marketing | 10000 | 7000 |
Rent | 25000 | - |
Utilities | 7000 | 3500 |
Taxes | 8000 | - |
Interest | 5000 | - |
Depreciation | 14000 | - |
Total fixed expenses ($) | 142000 | |
Total variable expenses | 49000 | |
Contribution margin | 51000 | |
Contribution margin ratio | 0.62 | |
Breakeven sales level= | 141999.98 EGP |
Type of report demonstrates break-even analysis incorporating administrative expenses and variable production expenses. The administrative expenses are fixed and do not differ on production level while the variable production expenses are directly connected with production standard.
On Each Order!
The formula for the break-even point to calculate it in units is
Break-even point (units)= Fixed cost/(selling price per unit-variable cost per unit)
Let's estimate the selling price of the company is 100 pounds then the break-even point would be
BEP= 80000/ (100-20)
=1000
Therefore the company need to sell their 1000 unit of fire-resistant concrete to entire variable and fixed expenses to meet the BEP. The point extension leads the company to sell the additional unit that leads them to gain profit.
The analysis supplies valuable information about the Company unit's financial stability with the requirement of an effective sales level to recover all its expenses. It is crucial equipment that helps to generate an effective decision on the financial aspect and helps the company to determine their financial performance, pricing initiative and production target.
1.7.1 Limitations
This effective business plan will demonstrate the construction corporation PyroGuard's effective initiative to promote its product fire resistant concrete, however,, this also comes with some inherent drawbacks that can hinder company's supply chain management and its production. Economic fluctuation, regulatory changes, Technology transformation and marketing uncertain events can hinder the budgetary projection effectiveness and accuracy of the corporation. Along with that multiple external factors such as geo-political transformation or international uncertain events can have a huge influence on the construction industry. Besides that, the new product adaptation depends on client perception and products of our nation that can differ from market to market.
1.7.2 Consistency
Consistency within the execution of the approach is essential to enhance company adaptability and flexibility towards evolving market demands economic fluctuation, uncertain events and operational risk. A continuous observation of production development helps to maintain its commitment to enhancing company resilience to sustain the environment.
1.8 Conclusion
In conclusion it can be stated that fire-resistant concrete market entry aligning with the corporation's goal is a revolutionary step toward a green environment. The developed business plan concentrated on the company's financial stability market fluctuation corporate social responsibility and client expectation maintenance to gain success within this competitive construction market. Maintaining commitment with increasing flexibility and adaptability helps to supply a liquid quality of the product that will guide to achieve sustainable supply chain management and business growth within the Egyptian market.
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