Aqua monta master of business administration degree - biznis plan engleski

TABLE OF CONTENTS
I INTRODUCTION 2
BUSINESS INFORMATION 2
STATEMENT OF FINANCING NEED 3
AGREEMENT OF CONFIDENTIALITY OF THE REPORT 4
II EXECUTIVE SUMMARY 5
III INDUSTRY ANALYSIS 7
FUTURE OUTLOOK AND TRENDS 7
ANALYSIS OF COMPETITORS 8
MARKET SEGMENTATION 10
INDUSTRY FORECASTS 11
IV DESCRIPTION OF VENTURE AND ORGANIZATION PLAN 12
PRODUCT DESCRIPTION 12
FORM OF OWNERSHIP 13
IDENTIFICATION OF PARTNERS 14
REQUIRED STAFF 14
V PRODUCTION PLAN 15
MANUFACTURING PROCESS 15
MACHINERY AND EQUIPMENT 17
EQUIPMENT SUPPLIERS 20
ENVIRONMENTAL AND SAFETY ASPECTS 20
PRODUCTION REGULATION AND STANDARDS 21
VI MARKETING PLAN 22
PRICING 22
DISTRIBUTION AND PACKAGING 22
PROMOTION 23
PRODUCT FORECAST 24
VII ASSESSMENT OF RISK 25
WEAKNESSES OF THE BUSINESS 25
CONTINGENCY PLANNING 26
VIII FINANCIAL PLAN 27
INVESTMENT STRUCTURE AND INPUT DYNAMICS 27
OPERATING COSTS 29
FINANCIAL CONSTRUCTION AND THE COST OF CAPITAL 30
FINANCIAL PROJECTIONS 32
PROFITABILITY ANALYSIS 32
IX CONCLUSION 34
APPENDIX 36



STATEMENT OF FINANCING NEED

This business plan is written in order to raise 2,000,000 in capital in conjunction with the 2,103,104 EUR start up funds of the Fin Invest doo, Podgorica. The business plan is the outcome of a careful and thoughtful business planning process that offers its investors a timely and outstanding opportunity to enable the Fin Invest doo, Podgorica, to enforce the business idea of pure and natural Montenegro spring water bottling plant and gain a favorable market position within the next five years on the domestic market in natural spring water niche under the Aqua Monta brand name.

The initial capital investment of 4.1 mio EUR that includes 2,103,104 EUR start up capital of Fin Invest doo plus additional investments of foreign investors that need to raised totaling 2,000,000 EUR, will enable Fin Invest doo to amass a management team and staff that will operate the plant, to build the plant and to purchase adequate equipment needed for the production of the bottled spring water, and operate the business in an effective and efficient manner. Over the next decade, Fin Invest doo plans to outdistance the competition in bottled spring water niche on the Montenegro market.

Fin Invest doo will be positioned on the cutting edge of applying new technologies in the water bottling business and become a market leader in these means.


AGREEMENT OF CONFIDENTIALITY OF THE REPORT

I understand that every part of this report must be treated as confidential. Much of the information contained within this report, and used for the underlying analysis, is of a commercially sensitive nature. This report may not be released or circulated in any form without the express written permission of the copyright owner.

I agree that reading of this report is strictly limited to me as authorized by the author. I agree that I shall not divulge or reproduce the content of this report without the written consent of the author.

I understand that any information provided in this report is in all respects confidential in nature, other than information which is in the public domain through other means. I agree not to disclose any information without the express written permission of the author.

This report includes forward-looking statements and projections. All such statements and projections within this report, other than statements of historical fact, regarding the company or its strategies, plans, objectives and expectations, are all forward-looking statements. Although the author believes that the projections reflected in this plan are reasonable at this time, it can give no assurance that these projections will prove to have been correct. This business plan is not a financing offer.


II EXECUTIVE SUMMARY

Bottled water consumption reflects a certain way of life. There is a long tradition for drinking bottled water. In many cases, bottled water is an alternative to tap water. Consumers think it tastes better than tap water (no chlorine taste), they perceive it as being safer and of better quality. They also look for security: food scandals and water-borne diseases have a great impact on their attitude.

Bottled water is perceived as pure and safe, although it is not necessarily the case. Consumers care for their health and their well-being: they buy bottled water to feel well, to lose weight. Bottled water is a healthy alternative to other beverages. Changes in ways of life also explain this boost of bottled water sales. Increasing urbanization, causing tap water quality to decline, can explain this situation. In particular, natural mineral water cannot be treated, nor added any element. It is therefore perceived as “natural” by city dwellers looking for genuine products. Increasing standards of living and greater use of cars enable people to bring home without pain a higher number of heavy and expensive bottled water: the price of bottled water is an average 500 to 1000 times higher than the one of tap water. The use of plastic (PVC, then PET) makes bottles lighter and easier to carry than when they were only made of glass. The expansion of shopping centers, outside city-centers, provides consumers with a greater choice in bottled water brands. Working habits change, with the decline of agriculture and industry. Most people have office works and the bottle of water is now a common element on a desk, next to the computer and the telephone. Drinking bottled water is a sign of a rise in the social scale. Above all, bottled water is a huge marketing success.

Bottled water, like any other industries, is not exempt of environmental impacts, either positive or negative. Natural mineral water and other bottled waters, as well as regular drinking water, must meet strict quality requirements prescribed buy regulations. However, this doesn’t necessarily imply an improvement in general water quality: natural mineral water springs are indeed protected against pollution hazards, but this has an impact on a limited area; purified bottled water doesn’t need extremely good quality water prior to being treated, although this could reduce treatment loads and costs. Protection areas are often established around water abstraction points, locally protecting the environment.

The choice of bottled water packaging material is increasingly done taking into account environmental considerations. PET is more and more often chosen instead of PVC because of its properties: it is light, easy to work on and very transparent. It can be re-manufactured into many different products, such as fibers for the clothing industry. When burnt, it doesn’t release chlorine into the atmosphere, contrary to PVC, whatever type of incinerator is used. Negative environmental impacts, in particular energy consumption, are reduced if PET, aluminium and glass packages are washed and re-filled rather than re-manufactured.

Trading and transporting bottled water all over the world also has an important environmental impact, in particular on atmospheric pollution and climate change because of fuel combustion. This impact varies a lot depending on many factors, i.e.: the type of transport used (train vs. old trucks), the type of fuel used (electricity vs. diesel), the distance to pass, etc. Considering current market trends, transport of bottled water should keep growing; nevertheless, 75% of the world bottled water is produced and distributed on a regional scale, thus limiting transports. 1


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1 Ferrier C.: Bottled Water: Understanding a social phenomenon, WWF Discussion paper, 2001.