Engineering Practice ES342 MA&M INCORPORATION XXXXXXXXXXMA&M Sunshine Incorporation Executive summary: Mission Statement : Making cooking easy Product and Market scope : Lower and middle income group. Basis for differentiation : No power consumption and easy to carry and use Strategic Resources: - Utilization of renewable energy resource - Rising demand for cost effective fuel Target Consumers- Mainly middle and low income consumers Marketing and support: - Free demonstrations - Distributing pamphlets about conservation of renewable energy - Advertisement in magazines Pricing model: Manufacturing Price - $1,000 Sales Price - $2,500 Suppliers: Albuti Solar Appliances Co. and Alfuhaid General Electrical ltd, USA. Other Partners: Alshaibani Inc.,USA XXXXXXXXXXTable of Contents: Executive Summary Introduction: Company Name Product Organization Chart Drawing Project Planning: Competition Regulation and Codes Business Model License and Permits Finance: Estimated Cost Capital Other considerations Conclusion Appendix XXXXXXXXXXIntroduction: The name of our company is MA&M Sunshine Incorporation. It is based in USA with its headquarters in Brooklyn, New York. MA&M Sunshine Incorporation is named to reflect the product it deals with. The MA&A are the first letters of the names of the founding fathers of the company. Our product concept is a Portable Solar Cookers. A solar cooker is a heavy appliance; therefore it is not easy to carry. Hence, we have tried to develop an alternative of solar cooker which can be folded and kept in a small space easily without the fear of getting broken. We have partitioned the body of the solar cooker so that it can be folded. Thus making it very portable and increasing its utility to outdoor travelling. Thus, it is no more than a simple household appliance XXXXXXXXXXOrganization Chart: XXXXXXXXXXDrawing: XXXXXXXXXXProject Planning Competitors and Comparison with our Product Conservation of renewable source of energy is very important in the present times. There are large number of companies who want to explore this opportunity. It is a profitable venture more so as it involves low manufacturing costs. The top competitors for our company are Master Engineers, International Engineering and Trading company and Tinytech Plants. Sunshine Product Comparison Company/Details Price Portability Efficiency Ease of use After sales services Sunshine Incorporation + + Master Engineers + International Engineering and Trading Co + Tinytech Plants + An analysis of the above chart reveals the comparative advantages MA&M Sunshine Inc. has over its competitors. MA&M Sunshine Inc. leads in the category of being the manufacturer of the most portable solar cooker. It is so because of its design. It has been engineered in such a way that it can be carried easily to its place of use. Another sphere of dominance of MA&M Sunshine Inc is the cheaper price of its product despite having an added advantage. As far as efficiency in working is concerned, we are making intense efforts in this direction. However, International Engineering and Trading Co definitely has an edge over others. It is an established organization and with its positive and innovative attitude, it has been able to carve an niche in the market where competition is stiff and performance is the only criteria. Tinytech Plants leads the after sales service category because of its efficient, responsible and responsive services. Despite manufacturing the most expensive solar cookers, the Master Engineers lead the category of being the manufacturer of easy to use solar cooker in the industry. Master Engineers are actually the pioneer manufacturers of solar cookers in the industry presently. They capture almost 60% of the market share. Not only they are the current leaders, they also expanded their headquarters to other countries in 2008. These companies though capture major market share, but they never endeavored to manufacture a solar cooker that could provide the consumers the ease of portability. Our company focuses on producing such solar cookers which could be folded and carried to any place of use, with much ease. This would definitely make our product popular in a very short span coupled with adequate marketing strategy. Another major competitor is Tinytech Plants which endeavors to promote renewable energy resources and making environment friendly appliances. Though they provide the best after sales services in the industry, we are keen to develop that aspect of our product development very soon. International engineering and Trading Company are the third largest manufacturers of solar cookers. They product is very popular among the consumers because due to their unique features it is very easy to operate and use. In the course of time we would definitely incorporate this feature which would provide a competitive edge to our product in the long run XXXXXXXXXXRegulation and Codes that affect our product The international Organization for standardization has established a number of standards relating to solar energy equipments. Therefore solar energy equipment must adhere to ISO 9050 relating to glass in building and ISO 10217 relating to materials used in solar cookers. Our company needs to adhere to the regulations of Uniform Solar Energy Code (UNEC). It is model developed by the International Association of Plumbing and Mechanical Officials (IAPMO). We also need to follow the norms of American society of Agricultural Engineers (ASAE XXXXXXXXXXThis standard is intended to: - Promote uniformity and consistency in the terms and units used to describe, test, evaluate solar cookers, solar cooker components and solar cooker operation - Provide a single measure of performance so that the consumers may compare the different models while selecting a solar cooker -Provide a common format for presentation interpretation of test results so as to facilitate communication XXXXXXXXXXBusiness Model The mission statement of our company “making cooking easy” speaks for the goals of our company. We want to make portable solar cookers which can be folded and carried easily and anywhere. We can cook at the beach or on a picnic spot. That is the level of comfort our company is aiming to provide its customers. The product/ Market scope of our company is to cater to the needs of lower and middle income groups. Our basis of differentiation lies in the portability of our product which none of the companies are offering in the present times. At the same time we have tried to keep our prices competitive. Strategic resources that make us stand out is the growing importance to make use of renewable energy resources. Also a public demand for easy to carry and cost effective means of cooking can get us into the market if people believe in our vision. We would like to advertize our product by providing free demonstration to people. We would also distribute pamphlets and educate people. Advertisement in magazines will be a means of popularizing our product. Licenses and Permits A great deal of research has gone into the requirements of getting the Sunshine Incorporation started. We will be located in New York and have found all the licenses and permits that will be required for its working. We need to obtain a Business License, Federal license and a sales Tax License. To ensure that nothing is left out, it’s imperative to appoint a lawyer. We have appointed Law Office of Frederic R. Abramson as our official consultant and he has assured us that we are on the right track XXXXXXXXXXFinance MA&M Sunshine Incorporation is designed to be a financial long term investment with a payback period of 4 years. The company is expecting to spend the entire first year and half of second year creating an excellent functioning design, scale model and beta model. Our business plan is very conservative in the sense that it has overestimated costs in every category. The investment summary of Sunshine Incorporation is as follows: Year 1 Year 2 Year 3 Year 4 Total cost Research and development $1000000 $1020000 $1050000 $1045000 $ XXXXXXXXXXEngineering costs $95000 $95000 $95000 $95000 $ XXXXXXXXXXManufacturing costs $150000 $167000 $124000 $143000 $ XXXXXXXXXXManagement expenses $100000 $100000 $100000 $100000 $ XXXXXXXXXXSales expenses $150000 $300000 $345000 $255000 $ XXXXXXXXXXAdministration expenses $210000 $210000 $210000 $210000 $ XXXXXXXXXXProduct testing $230000 $235000 $210000 $245000 $ XXXXXXXXXXMisc expenses $1200000 $1200000 $1200000 $1200000 $ XXXXXXXXXXTotal $ XXXXXXXXXXThe following is a summary of expected revenue: Year 1 Year 2 Year 3 Year 4 Total cost Expected sales XXXXXXXXXXCOGS 0 $2650000 $2760000 $2850000 $ XXXXXXXXXXSale Price 0 $5000000 $5125000 $5375000 $ XXXXXXXXXXRevenue 0 $2350000 $2365000 $2525000 $ XXXXXXXXXXMargin 0 $1250000 $2100000 $2350000 $ XXXXXXXXXXReturn on investment 0 $1250000 $2100000 $2350000 $ XXXXXXXXXXTotal Margin $ XXXXXXXXXXCritical Considerations Since we are going to manufacture an eco friendly product, we must abide by the norms laid out for them. We must use the approved quality of materials in its manufacturing. The quality of the product should be of high standards. It must be able to meet the requirements of our target consumers fully. We will ensure that the manufacturing unit does not cause any environmental hazards. We shall endeavor to fulfill our social obligations. As a company we shall keep our options open to facilitate any improvements in the product as and when needed. Our dedicated Research and Development team will be able to keep up with the growing and evolving market. Conclusion As time passes there is a huge increase of Research and Development put into the information technology enabling better production. It targets the production of more sophisticated and eco-friendly products. As stated in our mission statement our interest is to produce a cost effective and portable product, therefore this is the way it is going to should be done. The more details we put in this research the better our accomplishment. It appears that the market for it in Asia started a few years back, and that is why it is of great advantage to have this done in the United States. People in the USA care a lot about the environment and always strive to be cost efficient, and our product will bring what they need to them. XXXXXXXXXXAPPENDIX Citation: "The Solar Cooking Archive." The Solar Cooking Archive. N.p., n.d. Web. 20 Aug. 2010. . "Welcome To TINYTECH Plants." Welcome To TINYTECH Plants. N.p., n.d. Web. 20 Aug. 2010. "Solar Cookers." Products Directory,Indian Products Directory,Wholesale Products Directory,B2B Products from India. N.p., n.d. Web. 20 Aug. 2010. .