Sugar Cube Production Feasibility Study

 

 

 

 

Sugar Cube Production Feasibility Study

 

Student’s Name

Institution

 

Table of Contents

Executive Summary. 3

Company Description and Products and Services. 3

Market research. 4

Business Strategy. 4

Operation. 5

Others. 6

Machines. 6

References. 7

 

 

Sugar Cube production feasibility study

Executive Summary

Sugar cube is a six sided piece of sugar which can be put in a hot drink like coffee or tea. It is simply sugar; the only difference is the shape and size. A small sugar particle makes-up the sugar cube (Chen, 2010). There are many companies that are involved in production of sugar and sugar cubes. These factories have different standards according to the country they are located. Governing rules and standards of production differ according to the regulations of each country. The population that consumes the sugar accounts for the profits a company makes from its produce. However, some produce in mass since they have markets outside their countries.

The company for producing the sugar cubes is located in UK. The main financier is the Barclays bank. They are interested in sugar production business, since it promises huge profits. Therefore, they are ready to partner with the company in order to make the product at a shared cost and profit (Brenton, 2010). That is the best way to ensure that the construction and machine purchasing processes are effected immediately. Also, needed is the money to market the product with a new brand to the market. The estimation of sales should be reached for the success of the new company. It is better to share profits and losses than to bear the loss alone.

Evaluation of production cost, availability of raw materials and the rules and regulations set by other countries is important. The company can extend its production capacity to other countries, or try to compete with other factories in foreign markets. That is why it is of great significance to analyse the condition of a similar business in other countries (Broad berry, 2005). For informed decision making, it is important to have enough data. It also helps in future arrangements and investments decisions. To study the competition in the market is another reason that makes it important to study what is in other countries. For more success, the company must be aware of the competitors. The dangers the competitors have in the local and international markets. It also helps in pricing the products in order to offer a competitive brand and price (Srivastava, 2004). Affordability is another asset that guides consumers. For this to be achieved, the production costs must be minimised. Taking advantage of the available opportunities propels the company higher and higher.

Company Description and Products and Services

The company is a sugar cubes production company. It has a CEO who is the head of the company and oversees all the departments and processes of the company. Then there is an assistant CEO who is the second in command an helps the CEO in carrying out company management duties. Below the assistant CEO are the mangers. These include the regional mangers, production managers, supply and marketing manager, chief accountant, human resource manager and the operations manager. The management work as a team for the welfare of the whole company (Charmin, 1990). They contribute in creating the goals of the company and work hard to meet the set goals.

Under the management team are the foremen. These are close to the workers and help in achieving the set goals by managing the employees. They are the link between the employees and the management (Emmett, 2006). They handle small crises and forward any contribution from the employees to the management. The distribution of work among the employees and overseeing quality production is also their responsibility.

Upon completion, the company will offer many jobs to the community. Skilled and non-skilled people are needed to offer their services in exchange for money. Therefore, job creation is a major feedback to the society (Daleep, 2008). They are also producing one of the most consumed products in the society. People can have a new brand offering a quality product at an affordable price. They are also contributing huge income to the government through taxation. Therefore, they are of great benefit to the public and the government. They are also offering an affordable product to the public. For processing sugar cubes, there are many raw materials needed, these can be supplied from the country. The sugarcane farmers for example, will get a new market for their products.

Market research

It is the process through which the end users are linked to the market through information. They get to know about the new product and the benefits. The information offered helps the company in analysing the market, and thus make an informed decision (Kroschwitz, 2004). The marketing research defines ways of collecting information, analysing, and helps in finding the implications of the findings. It helps in getting quantitative and qualitative data concerning the market nature towards the give product or service. Therefore, the organisation gets prior information about the condition of the market on their product. The most important thing is getting the required process information and then analysing the results.

The company has realised that there are people who do not take sugar. These people are increasing each day due to health implications. Some companies that use sugar are also reducing their products due to the negative developments (Humphries, 2006). The taxation also is high, which makes the production expensive. The effects of taxes have to be reflected in the prices. In order to conquer that problem, the company has to reduce the amount of packages. Reducing the portions packed in order to lower the price caters for the low income earners (Ramos, 2014). They can afford to purchase small packages for a fair price. Then to cater for the rich big packages offered at a discount can attract their attention. Through negotiations, the government can reduce taxation (Mitchell, 2006). However women and youths have to be involved in management of the company. Therefore, the management are willing to introduce equal gender distribution and engage youths for government considerations. Reduction in tax helps in offering a competitive price in the market.

Business Strategy

Business strategy is the process in which the company sets major goals to meet within the set time. The management sets these goals by considering the available resources. They also analyse the external and internal environments the organisation is competing. The plan offers the way of monitoring the progress towards the set goals (Mark, 2003). According to changes in the market, the management changes some strategies in order to fit in the competition. They should always aim at propelling the company towards the set goals. The employees should be motivated in order to work efficiently for the welfare of the company. Failure to recognise the role of workers slows down the development process.

The company aims at making one billion pounds at the end of the first year and addition of 250 million pounds in the preceding years. The competitors are tough but the organisation has to make it through. By studying what other competitors do and what the market is lacking is one of the strategies (Niall, 2008). It is important to recognise what the market needs and work hard to fill that gap. That is the way in which new products and services can be developed for higher profits. New services are essential in creating the uniqueness of the company from other competitors. Therefore specialised research group has been set aside to study the market and develop new products (Tanner, 2010). The company also has a plan of buying agricultural land where they can plant the raw materials. In future, it can help in reducing the raw materials purchase cost. The company is also aiming at adopting new machinery after every five years. New technology helps in improving the quality of the product. It also reduces the costs due to integration of several activities.

Operation

The company has the top management made-up of CEO and the assistant CEO. Then there are other departmental managers who oversee the execution of the organisation’s goals. The foremen control the employees in their task areas (Nsouli, 1995). The process begins with buying the raw materials. The acquired raw materials are kept in the receiving store. Then from the receiving stores, they are taken to the processing plant where they undergo various processes. There are several machines which have been set-up to control these processes. They only require low supervision for the whole production process. Most of them have programmed microchips which control these processes through the installed commands. These machines help in reducing the number of human labour needed, and also increase accuracy (PSwaminathan, 2007). It may create a negative image to the society, but it will also ensure mass production at a fair cost. The aim is to produce 24 tons every day.

The other process is branding the packaging paper. People go for brand, and the quality of the brand wins more customers. Quality control is another process in which the quality of the product is accessed. It must meet the required quality for it to be released for human consumption. Packing is another important process, where the product is packed in different sizes. Then the packed product is labelled the retail price to avoid customer extortion. The finished product is then transported to the market (Poona, 2005). Some of the excess is stored as back-up. There are various promotion activities that assist in developing and selling the brand of the organisation. The public need to know about the brand for them to gain interest. A customer feels in control when they make informed decisions and the go for what they think is the best. Advertisement has been the favoured method. In television at peak hours when most of the people are watching news has been preferred. Awareness plus affordable price and high quality products, the company is set for high performances.

Others

According to the research carried out, there is enough market in the stores and other outlets. Young people are the biggest consumers of sugar. Therefore, the young people and middle aged people are the targeted groups (Jackson, 2007). People of all classes us sugar cubes in their homes. To enter the market, the brand needs proper market and promotion. People have to know about the new brand before it reaches the market. Prior knowledge about the product can give it warm welcoming to the market. Through recognised distributors, wholesalers and retailer channels, the company is hoping to supply the product closer to the consumer.

There are many jobs that the company creation will create. These are well paying jobs for the most skilled and competent people. The CEO of the company earns £4200 per month; the assistance earns £4000 per month. The management team requires ten people each earning a monthly salary of £3700. The skilled foremen for various operations each earn a monthly salary of £2900. Permanent employees are many, estimated to one thousand and each earns £2000 per month. The subordinates for the cleaning jobs and security; estimate of two hundred workers each earning £1000 per month.

Machines

The machinery supplier is the CFS and the Zhengzhou Longer Machinery Co., Ltd.. The two companies are responsible for supplying the sugar cubes forming machines, sugar cube press machine, coffee sugar cube processing machine, cone making machine, and sugar cubing line (Broad berry, 2005). Other machines are packaging machines, branding machines, processing machines and quality testing machines. With these machines, the company is set for the best in the sugar cube business.


References

Brenton, P. J. (2010). Carbon footprints and food systems do current accounting     methodology disadvantage developing countrie. Washington, D.C: World Bank. .

Broad berry, S. (2005). The productivity race: British manufacturing in international          perspective,. Cambridge, U.K. New York: Cambridge University Press.

Charmin, P. (1990). The making of the sugar giant: Tate and Lyle. Chur New York: Harwood       Academic Publishers.

Chen, J. &. (2010). Chen-Chou sugar cane handbook a manual for cane sugar manufacturer        and their chemist . New York: J. Wiley.

Daleep. (2008). Francophone Africa, 1905-2005 century of economic and social change.   New Delhi: : Allied Publishers.

Emmett, D. &. (2006). understanding street drug a handbook of substance misuse for         parents, professionalsand teachers. London Philadelphia: J. Kingsley. .

Humphries, S. &. (2006). the making of modern London. London.

Jackson, S. &. (2007). Sugar Policy Reform in the European Union and World Sugar         Markets . Paris: OECD Publishing.

Kroschwitz, J. &. (2004). Kirk-Othmer encyclopedia of chemical technology. Hoboken: N.J:          Wiley-Interscience. .

Mark, J. &. (2003). the food industrie. London: Chapman & Hall. .

Mitchell, H. (2006). Sweeteners &sugar alternatives in food technologyOxford Ames. Iowa:           Blackwell Pub.

Niall, M. (2008). Sweet! : From gave to turbinado, home baking with every kind of natural             sugar and sweetener, with more than 100 recipes. United States: Da Capo Lifelong .

Nsouli, S. (1995). Resilience and growth through sustained adjustment: the Moroccan        experience. . Washington, DC: International Monetary Fund. .

Poona. (2005). Economic botany. New Delhi: Discovery Pub. House.

PSwaminathan, M. (2007). Agriculture cannot wait: new horizons in Indian agriculture. New        Delhi : Academic Foundation.

Ramos, R. M. (2014). Mass production of beneficial organism’s invertebrates and entomopathogenic . London: Elsevier Science.

Srivastava, P. N. (2004). Plant biotechnology and molecular markers. Boston New Delhi:             Kluwer Academic Publishers Anamaya Publishers.

Tanner, A. (2010). Batch craft, design and product. London: A & C Black Publishers .

 

 

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