Final Global Business Plan

Essay by elvis21University, Bachelor'sA, August 2009

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As the automobile industry continues to grow at rapid rates in China, the need for automotive parts recycling organizations has significantly increased to reduce the amount of waste produced by the Chinese population. China's rubber resources are significantly undersupplied. As a result, the country must formulate a solution which addresses the issue of high-volume tire consumption as well as replenishing rubber resources. The intent of this work is to describe the team's plan to establish an environmentally-friendly recycling organization which specializes in the recycling of used tires, which will replenish the country's rubber resources without jeopardizing the environment, will decrease the market's reliance on rubber imports, and will boost the country's economy by creating new jobs. Included in the plan is a regional, country, and product analyses intended to demonstrate the potential for this type of organization in the Chinese market. The following pages will also provide a risk analysis for opening a tire recycling company located in China as well as offer an explanation of how the risks will be managed.

Finally, a summary of the team's strategic planning process will be detailed.

Business in China is booming. With sustained double-digit growth of its economy and a huge influx of direct foreign investment, entrepreneurs are looking feverishly for opportunities to invest. A number of factors contribute to making a tire recycling business look like a solid investment. From the environmental aspects of the business, to the explosive growth of automobile usage by the Chinese population, a compelling business case can be made for funding a tire recycling business in China. However, when looking at all the factors, the correct decision is to pass on this opportunity and not invest in this particular business at this time. First, with the global economy appearing to be on the brink of recession,