University of ManchesterAlliance Manchester Business School

Live Business Project      

Assignment A3 - Project PlanFeasibility Study/ Business Case

 Start-Up for Sustainable Alternatives to Single Use Plastic Straws and Packaging

    

LBP Group - Jan19/29Word Count:

Project Objectives and Scope

The phased ban of single-use plastics, such as plastic bags, straws and

styrofoam by the Government of Jamaica has created a new industry and

an opportunity for businesses to provide alternatives to these products.

The scope of this LBP29/19 Live Business Project involves the

identification and testing of suitable products, and development of a

market entry strategy for a viable but environmentally sustainable

alternative to single-use plastic straws with a view towards expansion into

alternatives to styrofoam packages. 

The overarching hypothesis for the project states that “the current

alternative to plastic straws in the Jamaican market, in the form of paper,

is undesirable to the general public, as they modify the taste of the

beverage being consumed and tend to disintegrate within a short period

of time”. This project will involve testing this hypothesis, as well as

determining the openness/ acceptance of the Jamaican public to a

bioplastic alternative and providing a business case for the manufacturing

or distribution of a suitable alternative. Primary sources of data for

analysis will include interviews with current players in the market,

interviews with companies displaced by the plastic ban and the general

public. Straws are most likely to be used outside of the home and as such

the target market for the product will be restaurants, bars, hotels, schools,

cafes, street vendors, supermarkets and restaurant suppliers. However, it

will be important to determine the views of the public as they will be the

primary consumer of the product. Secondary sources of data for analysis

will include legislation, regulations, newspaper articles, research articles

and case studies that examine plastic bans (including those in other

jurisdictions) and informal institutions of Jamaica and other countries that

have transitioned away from single-use plastics.

Some key deliverables of this project will include an Executive Summary,

Business Description and Mission Statement, Pros and Cons of the

Bioplastic selected, Market Entry Strategy, Competitor Analysis, SWOT

Analysis, Operations Overview (Production, HR including required

expertise and Supply Chain) and a Financial Plan. These deliverables will

provide an outline of the issue, anticipated outcomes, recommendations

for growth of the business and the newly created industry and a

justification for the business start-up.

Group Working Assignments

The group is currently comprised of four team members. In order to attain

the business's goals and visions we will divide the workload with each

team member gaining expertise in one of the four products being

examined. The four products currently in review include the paper

alternative currently in the market and the three proposed bioplastics for

introduction to the market. The alternatives as highlighted are corn,

bagasse (sugar cane waste) and avocado seeds based products. Each

team member will gain an understanding in order to address the aims and

objectives highlighted in the following section. Team members will also

have an in depth understanding of the particular issues related to each

product and how the specific product addresses client requirements and

needs. Each team member will follow the methods of data collection,

analysis and fieldwork outlined in order to gain cohesiveness in data

collected and to uniformly understand each product. The team will also

meet regularly in order to educate other team members of their findings.

While the team will be divided we will leverage each other as a resource

when needed. The overall goal of the group is to support and challenge

each other. A further breakdown of the tasks and assignments can be

found in the project plan table below.

Description of Opportunity/Sector/Context

The accumulation of plastic waste, particularly in the marine environment

has gained prominence globally. The sudden increase in importance is

due to several visceral events, notably viral videos showcasing the

dreadful impact of plastic pollution on marine life and the Garbage Patch

in the Pacific Ocean (Vince and Hardesty, 2017). The Jamaican tourism

product is primarily centred around experiences related to  coastal

activities, sand and sea, with the majority of hotels located along the

northern and western coastlines, making the impact of marine plastic

pollution of great importance to all Jamaicans. Several civil society groups

have sought to tackle the issues related to pollution of the built and

marine environment, by influencing cultural practices and lobbying the

Government of Jamaica to influence environmental policy

In a bold response to this issue, the Government of Jamaica has recently

announced phased bans on the importation, manufacturing, distribution

and use of plastic packaging materials, such as single use plastic

containers, expanded polystyrene foam (Styrofoam) and plastic drinking

straws; effective January 1, 2019. The ban on the importation and

manufacturing of plastic straws was implemented with immediate effect.

Other single use plastics and Styrofoam will be phased out by January

2020 and January 2021 respectively.

For this ban in Jamaica to achieve its primary objectives of protecting the

natural environment; it must be supported by enforcement and

alternatives to single-use plastics must be provided. This would essentially

create a new industry where production and distribution of biodegradable

plastics or other alternatives would help to lessen the accumulation of

plastic in the marine environment.

Description of Particular Issues and Client Requirements

Client Requirements

In order to understand the client requirements for straws we first have to

look at the issues with the current market and complaints lobbied by the

consumers. While most people agree that plastic straws are bad for the

environment, a majority of consumers are satisfied with their

performance. The majority of the world has grown up using plastic straws

and therefore believe a straw should have similar qualities. These

qualities mainly surround durability when immersed in liquid and the feel

of straw. Any substitutes to the current idea of a straw has to either match

these requirements or it must overcome the current understanding of

straws. Change management within an organization is challenging

however educating and managing change at a macro level can be a

daunting task. Our initial research has highlighted a few issues with the

use of paper straws and few potential issues that are not currently at the

forefront of conversation. The first major issue is functionality. Papers

straws do not structurally stand up when immersed in liquid and often fall

apart when individuals attempt to stir drinks. The weak integrity of the

paper straws results in pieces falling off, the straws breaking and

ultimately affecting the taste of the drink. The structural issues and

overall change in texture of the straw has resulted in many complaints

against paper straws. The environmental impact of creating paper from

wood is a challenge that can ultimately lead to additional changes in this

practice. In order for the alternative bioplastic straw to be successful in

the market it must address the issues highlighted against paper straws

and mimic plastic straws a much as possible. The alternative bioplastic

straw must address how consumers envision a straw should feel, look and

perform. 

Particular Issues

In order to analyze the issues we will be looking at the internal and

external business environment. The internal and external analysis will

help to identify challenges and opportunities to the business and potential

success or failure.

Internal Factors:

Business Structure - We will need to look at how the legal entity should

be setup and understand the legal and tax obligations of each structure.

Should the entity be established in Jamaica or outside of Jamaica and what

are the trade implications.

Funding - How will the business be funded? Will  government funds be

available or will we have to use external funding sources

Cost/Financial Forecast - A complete analysis of the business cost and

financial forecast will need to be conducted.

Human Capital - What skills, knowledge and expertise will be needed.

Resource Availability - What resources are readily available in the local

Jamaican market? Will importation be required?

Physical Assets - What assets will be needed to conduct business?

External Environment

Customers - Consumer behaviour and requirements

Social Environment - Is there a desire to change the culture of the

current environment

Economic Factors - Micro and Macro factors

Political/Legal Environment - What impact will the legal and political

environment have? How strong is the enforcement on the ban?

Supply Chain - How will raw materials be procured?

Market - Is there a market for the proposed product? Who is the target

market?

Competitors - What is the competitive framework in the market? Who

are the current major players? 

Technological - Understanding the technological challenges with the

business environment and product. 

Research Aims & ObjectivesResearch Aim: To support the feasibility study and explore the alternative bioplastic market in Jamaica.

Research ObjectivesThe following research objectives would facilitate the achievement of these aims:

i. To study both the macroeconomics and microeconomics of Jamaican economy;

ii. To study the regulatory framework and the suitability of bioplastics in the Jamaican

market;

iii. To evaluate feasibility of market entry using framework adapted from Porter’s five

forces and value chain;

iv. To support the business model with relevant and robust data from the research and

analysis.

Please refer to Table 4 on the project objectives & research plan with reference to HBR’s 5 strategic context framework to enter an emerging market (2005)

Tasks to Complete Objectives

Defining current conditions, including determining the level of

competition through competitor analysis.

Explore and quantify the availability of the bioplastic alternatives we

have selected.

Assess the opinion of the public as it relates to current paper

products through interviews and surveys

Determine the size of the market through the use of Government

documents such as census data, Jamaica Customs Agency records

for previous plastic imports and impact assessment from the

Ministry of Industry and Commerce (ministry responsible for

implementing plastic ban)

Define the target market explicitly

o Restaurants, shops, bars, hotels, supermarkets, street vendors

and restaurant equipment suppliers

Determine the level of acceptance of the Jamaican public to

alternatives, particularly bioplastic (through samples and focus

groups), exploring formal and informal institutions, related to waste

disposal and  recycling

o Determine the most suitable product based on the results of

the above.

Determine the level of support provided by the government for

startups in this sector, such as the availability of subsidies and

grants

Conduct SWOT Analysis, to guide market entry strategy, enabling

the startup to identify and take advantage of strengths and

opportunities, while mitigating weaknesses and threats 

Determine the appropriate marketing and pricing strategy for

introducing the new product

Determine the start-up costs associated with forming company and

procuring equipment, as well as working capital required for

operations thereafter

Methods of Data Collection/ Analysis/ Planning Fieldwork

Based on our Research Aims & Objectives, the team will use several Methods of Data Collection & Analysis. The Primary Research Methods that will be used by our group are: Focus Groups, One on One Interviews & Surveys. Secondary Research Methods would be additional research in official documentation & scientific research on Bioplastics and Alternative Materials to Plastics. This will be done to cover any gaps in data that we might encounter after our Primary Research is Done.

 

Primary Research

Our Primary Research Methods will be Focus Groups, One on One Interviews & Surveys. The aim of these methods is to have a complete picture of the market perception on Alternative Materials for Plastics, engage our target customers (businesses) to understand their tastes, and their general willingness to accept alternatives to Paper & Plastic for Straws they offer in their establishment.

One on One Interviews 

These One on One Interviews will be aimed at understanding current market conditions in Jamaica, which will include perception of prospective customers, current legal framework and enforcement from Government Officials. These will help us to gain an understanding of our competitors strengths and weaknesses, as well as, aid in assessing the cost structure, production process and supply capacity of our prospective business partners. One on One Interviews will be set up with:

o Prospective Customerso General Public o Government Officialso Prospective Business Partners / Providerso Importers of Paper Straws (Current Competition)

One on One Interviews will be mostly set up in Jamaica as our Customers, General Public & Government Officials are all based there. J.D. will be the lead interviewer throughout. As for Providers, Ricardo & Baboucarr will each setup interviews with Corn & Avocado Seeds Bioplastic Providers to understand the production process, cost of production, supply chain needs to gain a good understanding of the cost structure for our business.

Surveys

Two Surveys will be Conducted. One will be aimed at the General Public and another one will be distributed to our Prospective Customer Base, such as Restaurants, Hotels, and general tourist businesses in Jamaica. The aim of the surveys is to understand: 

1. Knowledge of alternative materials to plastics 2. Perception of Bioplastics as an alternative to paper straws3. Willingness to purchase alternative materials to plastic straws

 The questionnaire will consist of maximum 20 questions and should be completed in no more than 10 minutes. We will use Survey Monkey as our primary survey distribution form. Our primary Survey Target Population are Management Teams for Restaurants, Hotels & Other Service Based Businesses in Jamaica. For the General Public they will be aimed at Young Professionals aged 25 to 40 Years Old, that are primarily acquaintances of J.D. in Jamaica. Our target is to have no more than 100 surveys completed by End of August. We feel we don’t need a large survey base as this is highly costly. 

Focus Groups

Focus Groups will be used to complement our One on One Interviews and Surveys to provide a deeper understanding of the public knowledge,

perception & willingness to purchase Bioplastics as an alternative. Focus Groups will conduct tests of the products, providing us with feedback related to the performance of the proposed alternatives. This will involve two processes based on the hypothesis, firstly a taste-test comparing the paper straws with the three alternatives proposed and secondly, an integrity test comparing the length of time for disintegration of the paper straws with the three alternatives. Our Focus Group will consist of 3 prospective Customers in Jamaica and 2 Young Professionals Aged 25 to 40 Years Old from Jamaica. Our idea is to merge the perception of our Actual Customers (Business Owners) with the perception and preference of their Customer Base  (Young Professionals), so as to gauge if they match and, at the same time, promote our own business.

 

Secondary Research

As explained previously, additional research may be needed to cover gaps our primary research doesn’t give us. After analysis of initial results, we may need to research:

1. Official Legislation Changes and Official Releases  2. Availability of Trade Agreements with markets that have potential

suppliers of Bioplastic raw material 3.  Bioplastic straw production process.4. The transition from single-use plastics to alternatives in Jamaica and

other markets (UK, some states in the USA, New Zealand, etc.)

Sources of this research will be varied, from scientific journals, websites, journals and publications, newspapers, economic reports, etc. The data we may need will be mostly Statistics on Success Rates for markets where the transition from Plastics has already being done, Population Data from Official Sources to gauge size of market and Statistical Information on

Tariffs that could be incurred to complement our Financial Assessment of our Start-up.

Project Plan

The project plan provides a framework for the project team to follow. This plan will include a 

detailed timeline with key milestones, work breakdown structures and tasks that have been assigned 

to group members.

The project plan consists of the following

Start Date and End Dates for components and key tasks

Major Milestones

o Data Collection and Analysis

o Interim Project Presentation

o Financial Planning

o Draft of Final Project Report

o Final Report Submission

Work Breakdown Structure

Gannt Chart to provide a visual presentation of the work breakdown structure and baselines

Project Plan

Task Name WBS Planned Start Duration Planned End Status Person PriorityLive Business Project 1 05/01/2019 317 days 18/11/2019 Started MediumExecutive Summary 1.4 29/07/2019 26 days 02/09/2019 Not Started Yet Very High

Final Description of Issues 1.4.1 29/07/2019 14 days 15/08/2019 Not Started YetBaboucarr, Jason

Medium

Final Draft of Anticipated Outcomes 1.4.2 29/07/2019 14 days 15/08/2019 Not Started YetJason, Ricardo

Medium

Interim Recommendations 1.4.3 01/08/2019 32 days 02/09/2019 Not Started YetGhazi, Baboucarr

MediumInterim Justification 1.4.4 05/08/2019 10 days 15/08/2019 Not Started Yet Jason MediumSizing of Market 1.4.4.1 05/08/2019 4 days 09/08/2019 Not Started Yet Jason Martin Low

Market Share Goals and Target Projections 1.4.4.2 03/08/2019 12 days 15/08/2019 Not Started YetGhazi, Baboucarr, Jason, Ricardo

LowBusiness Description 1.5 08/08/2019 4 days 12/08/2019 Not Started Yet MediumDraft of Mission Statement 1.5.1 10/08/2019 2 days 12/08/2019 Not Started Yet Jason Martin MediumProduct Selection 1.6 15/08/2019 25 days 09/09/2019 Not Started Yet All MediumStakeholder Identification and Analysis 1.6.1 15/08/2019 25 days 09/09/2019 Not Started Yet Jason, Baboucarr Medium

Interviews and Questionnaires with General Public 1.6.1.1 20/08/2019 7 days 27/08/2019 Not Started Yet Jason Medium

Focus Group Testing 1.6.1.1.1 23/08/2019 4 days 27/08/2019 Not Started YetJason, Ricardo 

MediumInterviews with Restaurant Industry Players 1.6.1.2 21/08/2019 6 days 27/08/2019 Not Started Yet All MediumSample Testing 1.6.1.2.1 21/08/2019 6 days 27/08/2019 Not Started Yet Jason Martin MediumInterviews with Government Officials 1.6.1.3 03/09/2019 6 days 09/09/2019 Not Started Yet Jason , Ghazi MediumConfirm conformity of Bioplastic Alternatives 1.6.1.3.1 03/09/2019 6 days 09/09/2019 Not Started Yet Jason Martin Medium

Interview with Solid Waste Authority 1.6.1.3.2 06/09/2019 3 days 09/09/2019 Not Started YetGhazi, Jason

Medium

Review Case Studies in Similar Markets 1.6.1.4 15/08/2019 25 days 09/09/2019 Not Started YetGhazi, Baboucarr, Jason, Ricardo 

Medium

Interview Stakeholders in Recycling Industry 1.6.1.5 25/08/2019 2 days 27/08/2019 Not Started YetBaboucarr, Jason

MediumMarket Entry Strategy 2 10/09/2019 22 days 25/09/2019 Not Started Yet All MediumCountry Profile 2.1 10/09/2019 6 days 16/09/2019 Not Started Yet Jason MediumPESTLE 2.1.1 10/09/2019 3 days 13/09/2019 Not Started Yet Baboucarr Musa MediumRisk Matrix 2.1.2 12/09/2019 4 days 16/09/2019 Not Started Yet Ricardo De la Pena Medium

Market Segmentation 2.2 17/09/2019 3 days 20/09/2019 Not Started YetGhazi, Jason 

Medium

Brand Strategy 2.3 20/09/2019 5 days 25/09/2019 Not Started YetGhazi, Baboucarr, Jason, Ricardo

Medium

Demand Forecast 2.4 22/09/2019 2 days 24/09/2019 Not Started YetBaboucarr, Ricardo 

MediumCompetitor Analysis 3 25/09/2019 2 days 27/09/2019 Not Started Yet All Medium

Stakeholder Power Matrix 3.1 25/09/2019 2 days 27/09/2019 Not Started YetGhazi, Jason 

MediumSWOT Analysis and other Frameworks 4 28/09/2019 4 days 02/10/2019 Not Started Yet All MediumOperations Overview 5 02/10/2019 19 days 21/10/2019 Not Started Yet All Medium

Prodcution Targets 5.1 02/10/2019 10 days 12/10/2019 Not Started YetBaboucarr, Ricardo 

Medium

Performance Objectives 5.2 02/10/2019 10 days 12/10/2019 Not Started YetGhazi, Jason 

MediumIdentification of Relevant Expertise 5.3 05/10/2019 8 days 13/10/2019 Not Started Yet Jason Martin MediumSupply Chain Model 5.4 07/10/2019 14 days 21/10/2019 Not Started Yet Ghafi Ghazir MediumFinancial Plan 6 13/10/2019 24 days 06/11/2019 Not Started Yet All Medium

Cost of Registration and Legal Formalities 6.1 13/10/2019 4 days 17/10/2019 Not Started YetBaboucarr, Ricardo 

MediumRental Costs/ Property Acquisition 6.2 14/10/2019 3 days 17/10/2019 Not Started Yet Jason Martin MediumPreliminary Equipment Costs 6.3 15/10/2019 7 days 22/10/2019 Not Started Yet Ghafi Ghazir Medium

Working Capital Projections 6.4 17/10/2019 20 days 06/11/2019 Not Started YetBaboucarr, Ricardo 

Medium

Marketing Costs 6.5 17/07/2019 20 days 06/11/2019 Not Started YetBaboucarr, Jason

Medium

A4 Interim Presentation 7 29/07/2019 45 days 27/09/2019 Not Started YetGhazi, Baboucarr, Jason, Ricardo 

High

Final Document 8 29/07/2019 81 days 18/11/2019 Not Started YetGhazi, Baboucarr, Jason, Ricardo 

High