Evolution Recyclers Essay

1837 words - 8 pages

Evolution Recyclers staff structure is summarised in a flow chart below:

Infrastructure Requirements:
Like most of the formal businesses we will require a large site where we can build offices for at least all the managers in our business. We will also have a storeroom to store all the equipment’s such as bins and specialised production equipment’s.
Most of the recycling companies do not have their own transport but, they hire a transportation company to transport their waste. Evolution recyclers will have their own transport so as to minimise delays which can cause a loss of profit. Thus we will require six trucks three of which will be used to collect waste from ...view middle of the document...

Economic Aspect
Responsible waste management is a key environmental, economic and social significance in the 21st century. The world’s leading economies have all realised that sustainability is a key business issue.
Initial Cost:
A lot of effort and money will be put towards advertising the business, thus it is vital that we try to be as creative as possible since it is the only way to reach the customers. The costs includes designing the pamphlets, bill boards and making them available to people. Further advertisement will be done on televisions, radio stations and newspapers.

The estimated worth of all the items required is summarised in the table 1 below.
Table 1: summarising the estimated worth of the required items.
Item Estimated Worth
Buildings R800000
Vehicles R1000000
Machinery R250000
Advertisement R10000

The total estimated initial costs will be at most R2060000.
Selling Price of Service:
Evolution recyclers will be collecting waste all around Durban. We have negotiated with most of the malls around Durban and six of them have agreed to give us a three year contract giving them an environmental peace of mind. More so, we have negotiated with the surrounding townships, companies and schools to collect waste for them. The selling price of our services is summarised in table 2 below.
Table 2 summarising the selling prices.
Service Location description Selling price (Monthly)
Collection of waste Malls R15000 × 6
Collection of waste/ Delivery of processed material Large companies R16000 × 3/10000
Collection of waste Suburbs R3500 × 4
Collection of waste Townships R1000 × 7

The expected monthly income is approximately R159000.This implies that in the next three years (assuming we won’t get any employment) the company would have made almost twice the initial cost, however the company is also aware that it has to pay salaries to it employees while saving some money for maintenance and expanding the business.
Share of overall market of the service:
People at this day and age are starting to put more care on environmental issues such as the dumping of waste in landfills, cutting down of trees, non-biodegradable waste being dumped. Most environmental organizations are also pressing large companies to stop dumping large amounts of waste. Companies themselves are worried about the increased prices of obtaining natural resources and the scarcity of them as well.
The solution to these problems is recycling. According to a CSIR survey more than 73% of South Africans living in urban areas reported no recycling at all (CSIR, 2012). This creates a good opportunity for the proposed recycling service as there will be a need for this kind of service.
Refer to appendix 1 for South African statistics on Recycling done by Urban Earth.
The five main materials that will be recycled are Metals, Plastics, Paper, Tyres and Glass. These items are the ones that will bring in the bulk of the revenue. Looking at the...

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