• Internal Code :
  • Subject Code : BUSI3008
  • University :
  • Subject Name : Economics

Economics, Ethics and Entrepreneurship

Executive Summary of Solar Panel Manufacturing Company

In recent years, solar technology has expanded at a dazzling rate. Solar panels are on the roofs of residential houses, businesses and large companies. Therefore, this business is aimed to manufacture the solar panels. By installing on these panels’ consumers can save on their electricity bills. Solar energy does not emit any harmful air pollution and helps us to reduce our carbon production. The main products of the business include complete installation of solar system, manufacturing of the solar panels, solar inverters, solar cells, EVA, Charge Controllers, and other related products. The initial investment require is from $ 50 K and the following costs are included in this business plan: Company Opening Costs, Architectural Design, Show room, Hardware, Software and Peripherals, Tools, PPE, EPC, Uniforms, Vehicle, Inauguration Marketing, etc. The company is initially planning to take first loan of $ 30 K which it will allow the company to create its product line, to develop vigorous sales plans and marketing and building a new factory. The company expects this initial funding will be enough to keep it profitable and create availability financial instruments to a level sufficient to obtain debt financing from invest in further development. For the initial two years company is only focusing on the Australian Market. But from 3rd year company will try to enter non-European markets that will focus on US users. The price strategy adopted here is the commodity type. Different advertising tool will be adopted by the company such advertisement through social media.

Table of Contents

1.0 Business Start Up Detail

2.0 Management Proposal

3.0 Operational Proposal

4.0 Financial Proposal

5.0 Marketing Fundamental:

5.1 Target Market

5.2 Location:

5.3 Product:

5.4 Price.

5.4.1 Penetration Strategy:

5.4.2 Global Pricing:

5.4.3 Skimming:

5.5 Promotions.

5.5.1 Facebook.

5.5.2 Twitter.

5.5.3 eBay and Amazon.

6.0 Ethical Statement

References.

1.0 Business Start Up Detail

The company is formed by a group of experienced professionals, to design a line of products whose sole purpose is to offer production flexibility and cost efficiency in solar products. The company is starting as a Partnership firm. Starting the manufacturing firm is always difficult because of lack of innovation & high capital expenditure. To withstand competition with large manufacturing firms, the company is initially planning to create partnership with some manufacturers to subcontract various phases of operations.

2.0 Management Proposal

The broad and undisputed experience of the five key members of Generic management will provide a precious support to the functional areas of their competence. Below is the main responsibility related to each person involved;

President and CEO: His major role will be to generate sales and operating activities. He will be temporarily contacted as a Financial Manager

Director Marketing: He has a role of head of marketing strategies for a line of product. He will be responsible for the company's global marketing strategies, including positioning, prices, advertising & communicating with the sales area, production & engineering.

Design Director: He will be responsible for developing four key products and he will manage all product development (hardware and software), will establish the use of PERT charts for development, will hire engineering staff in the first year and yes will oversee the design processes and specifications.

Production Manager: He will carry out the supervision of the installation of solar panels and his main role is to organization of solar assembly operations & negotiating for subcontracting and relations with subcontractors. He will also contact with the potential users of products.

Consulting Manager: He will be responsible for accounting and financial control systems.

3.0 Operational Proposal

Stem Fixation

The photovoltaic modules will be connected and installed in series by means of cabling on metallic structures in order to remain in the orientation and inclination that maximize your income. (Beattie, 2016)

Assembly of Structures

It is a simple assembly, since the structure is composed of beams, pillars and light angles, machined in the factory, and the field work consists of an assembly with screws. The structure is fixed on the metal beams buried in the foundation by means of screws, this assembly process allows high productivity. The maximum height will be 1.90 m and the wheelbase 4.5 meters. (Beattie, 2016)

Tracker / Follower

The tracker, also known as follower or trackers, allows you to orient the panel throughout the day to increase the capture of solar radiation. This type of trackers has a central actuator that moves several lines of approximately 43 meters in length simultaneously. The lines of modules are positioned in the North-South direction and rotate on their axis to orient solar panels in the East West direction (from 45o East to 45o west) along the day. (Beattie, 2016)

Characteristics of The Photovoltaic Module

The photovoltaic modules are composed of a plastic frame and two tempered glass to protect crystalline silicon photovoltaic cells which are mounted on a layer of silicone.

4.0 Financial Proposal

Table 1 Fixed Expenses

Describe the Item

When will you need it?

Cost

Equipment

While establishing the industry

$15000

Maintenance

During the operations

$500

Facilities

During installation

$10000

Materials Used

In manufacturing

$3000

Electricity

In manufacturing

$500

Research and development

Before starting the production

$6600

Table 2 Variable Expenses

Describe the Item

When will you need it?

Cost

Labor

Manufacturing and installation

$4000

Marketing

During the manufacturing

$5000

 

O&M Cost

Fixed Tilt for C-Si

Fixed tilt for a-Si

Tilted single tracking

Fixed tilt Cd-Te

Scheduled Maintenance

$22

$28

$26

$30

Unscheduled Maintenance

$5

$5

$5

$5

Inverter replacement

$20

$20

$20

$20

Taxes

$10

$10

$10

$10

Total O&M

$59

$63

$61

$65

5.0 Marketing Fundamental:

5.1 Target Market

The company involves an initial focus on 15-30 major suppliers of solar products in Australia. All target customers are known for innovative management, labor costs relatively high, a market share that has shrunk more and more in recent years. To encourage innovation and maintain a constant dialogue with its customers, company will create a technical analysis group that will meet monthly to discuss the production needs. The group will be chaired by the Generic Production Manager, in collaboration with the Marketing and Design directors; to the group Five members of external producers will also participate,

5.2 Location:

The main market we are focusing is different states of Australia. For the initial two year the company will operate in the Australian Marker. But from 3rd year company will try to enter non-European markets that will focus on US users.

5.3 Product:

The company is providing complete solar system. The main products include the manufacturing of the solar panels, solar inverters, solar cells, EVA, Charge Controllers, and other related products. Further they are also offering system installation services.

5.4 Price

Pricing strategy, refer to different methods adopted by the new business for selling their goods or services. While deciding for different strategies, first of all, different factors are considered and this includes the market analysis, competitor’s prices, input costs, variable costs, and trade margins. Selecting the right price strategy will allow the company to maximize its profit. (Bolton, 2010)

While setting a price strategy, company analyzed different price methods which are discussing in detail as below;

5.4.1 Penetration Strategy:

This strategy is beneficial for new products in the market aims at attracting buyers through giving lower prices on solar services & products. In this way, company can divert attention from the competition, although initially the prices are low leading to initial loss for company. But here the main benefit is to penetrate deep in the market, reaching to big market share in small period. But in our case, this is not suitable as we are targeting solar product suppliers in Australia initially so it will not be a beneficial pricing strategy and it will lead to a huge loss. (Nagle, 2010)

5.4.2 Global Pricing:

Global pricing is a mix of marketing in this type, profit, and cost factors are considered.

5.4.3 Skimming:

Such as in the case, as we are going to launch a new product which is emerging in Australia right now, therefore, initially it is best to adopt the Price Skimming method. As per the method, initially, the high price will be set. Once the product will be settled and on rising of competitors, the company will lower the prices. Adopting this strategy, it will be possible to earn huge profits initially before the price drops as the competition in the country grows. Not only with price skimming the new product recoup its cost of development but also create a quality illusion & exclusivity ono introducing the product in the market.

5.5 Promotions

Promoting the brand is another major element that will help in increasing the sale. Therefore, it is important to select the most appropriate promotional tools. As per the environmental scan, one of the best promotional tools is social media marketing because due to COVID-19, this is the best place where you can sell. (Meagher, 2007)

Social networks can be the most effective tool for our product to increase the visibility of our brand and its reputation or brand awareness. They represent an invaluable source of advertising for every business, even surpassing the website. Today the retail market is surpassed by the online market & for remain competitive, companies are now adopting this trend through re-inventing the market strategies from a social perspective.

For promoting our brand, we are planning to start from Facebook, Twitter, Instagram, and online stores such as E-bay and Amazon. As we are focusing to communicate the values of the brand, therefore, on social networks, rather than promoting the characteristics of the product, we are focusing on communicating a series of values that revolve around the brand and in which the target audience can identify. This, therefore, presupposes an analysis of the target we want to reach, to understand what the typical behaviors of the recipients of our message are. (Nadaraja1, 2013)

5.5.1 Facebook

Through Facebook, we can reach huge customers by creating engaging content that will catch the interest of the audience. Facebook is the ideal platform for generating leads because it is intuitive and promotes user involvement who can proceed to install the app directly from their social account. (Nadaraja1, 2013)

5.5.2 Twitter

Even twitter will allow us to generate original posts that can capture the user's attention through the use of twitter cards, features that allow will to extend the number of usable characters, and add a visual link to the tweet. Through interesting images, we will be able to hit the user's eye. (Nadaraja1, 2013)

5.5.3 eBay and Amazon

Another important promotional tool is to use online stores. Currently, eBay and Amazon are two major online stores that are trending in Australis. Through these tools, we are planning to sell our product. This is a secure platform where you can provide more security to the client promising the customers a high­-quality product.

Based on this, we take advantage of all the social channels that we consider relevant for the promotion of our product, creating a coherent cross-channel campaign on all platforms.

6.0 Ethical Statement

Being provider of products related to solar energy they company is liable to different ethical concerns. The main aim behind the company is to bring reduction in environmental pollution through using renewable energy source.

References for Solar Panel Manufacturing Company

Bolton, R. S. (2010). Recent Trends and Emerging Practices in RetailerPricing. Retailing in the 21st Century.

Meagher, D. (2007). Designers take a slow coat to China. The Australian, Canberra.

Nadaraja1, R. (2013). Social Media Marketing SOCIAL MEDIA MARKETING: ADVANTAGES AND DISADVANTAGES. Kuala Lumpur, Malaysia: Center of Southern New Hampshire University (SNHU) Of Help College of Arts and Technology.

Nagle, T. a. (2010). The Strategy andTactics of Pricing. New Jersy: 4th edn, Pearson Education, Inc.

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