Business Plan on "Rubber SAP Middleman in Thailand"

Business Plan 15 pages (4519 words) Sources: 15

[EXCERPT] . . . .

Rubber SAP Middleman in Thailand

Business Plan: Rubber SAP Middleman in Thailand

Business Opportunity and Vision

My business idea is to establish an intermediary (agency) business in rubber. The business will see the buying of sap from the farmers, treat the sap so that it can be stored, and finally sell it to the market when at a good market price. The opportunity that the business seeks to take is to store sap until when the market prices are good and sell the sap at a profit. The market projections indicate that the sap industry has been expanding although the farmers have suffered due to extortion by low prices. The competitive advantage of this business model is the presence of land will add up other capital resources to build the business. In addition, this business model is unique in the region making the business has a high prospect of success.

Introduction & Overview

A. Introduction & Overview of the Plan

My business idea is to establish an intermediary (agency) business in rubber. The business will facilitate the buying sap from the farmers, treat the sap so that it can be stored, and finally sell it to the market when it is at a good market price. Because Thailand has a strict law on cooperatives, the business model will be an agency one. The operation of this proposed business will involve the purchasing the sap from the farmers, storing, and selling it to the market when the market is ripe. The farmers will then be paid in two installments, a deposit of the sap upon delivery, and a final pay after the sap has been sold to the market.

This business plan has a number of benefits. First, the business will be run in the rural area of Thailand where I have land. This land will facilitate the storage of sap before it is sold to the market. This business plan does not make it necessary for me to own a rubber plantation. This is an advantage to the business because I am not an expert rubber farmer: it takes long to mature a rubber plantation and rubber trees only produce well for seven years. The other advantage is that the company is an agency company, and not a cooperative; this helps the business to run smoothly since cooperatives are subjected to strict laws in Thailand. The other advantage of this business plan is that it provides relief to the farmers who sell their sap at a cheaper price, for they cannot store the sap until when market prices mature. Finally, I also benefit from the Thai Amity Treaty, which offers unique business advantages to Americans than to other experts (Hopkins, 2005).

III. The Company, Industry, and Product(s) and/or Service(s)

A. The Company

The (Rubber Sap Agency Company (RSAC) is an agency profit making company involved in the purchase, storage, and sell of sap to the target markets. The proposed company will act as an intermediary between the farmers and the market buyers of the sap. The company will involve itself in the purchase of sap, its storage and sell later when the market is offering a good buying price of the product. Besides, the company will be involved in making profits through by purchasing the sap from the farmers at a relative low price, and sell the sap when the price of sap in the market is good. This will allow the proposed business to make profits within the period of purchasing the sap, and selling the sap to the market. In other words, the company will add value to the sap by offering treatment and storage of the sap until when the sap can be solved at a good price.

B. The Industry

This business will run under the rubber production industry. Thailand is one of the countries that are involved in the rubber plantation. This one industry serves many people especially the farmers and the locals in the industry. Most of the farmers benefit from rubber plantation farming by selling the harvested sap to the market. A significant number of workers also benefit from rubber plantation by providing labor and earning income from the industry. Most of the farmers in the industry use the income from farming to take care of the family and run other business ventures. This industry also involves other players like the Government, which has put regulation on the marketing and sell of the sap. The industry also involves sellers and buyers of sap. Besides, the buyers of the sap include other companies that process sap while the original sellers of the sap are the farmers who grow rubber. In most cases, the beneficiaries of sap trading are the companies that purchase the sap from the farmers after it is harvested (Newman, 2009).

C. The Product

The product of rubber farming is sap. The business will mainly be involved in the purchase and sale of this product to the market. Sap is one of the most valuable products because of the many utilities that it has. The value of sap product has attracted many farmers to engage in a rubber plantation farming regardless of the difficult situation of growing and maintaining the rubber trees. Handling sap is difficult for many farmers because of the high cost of its storage, and the urgency that the farmers need the money to meet their needs. Sap is used to make Latex Rubber, which is used for many purposes.

The main uses of the rubber product are industrial uses and household applications. Rubber is widely used in the making of tubes and tires. It is also used in making other rubber goods, such as in flooring, making of medical gloves, matting, and hoses. Rubber is also used in making adhesives used in many products in industrial applications. There are others hundreds of uses of rubber: this makes the plan a good one that stands the test of time. The diversity of uses of rubber makes the product very marketable in the local and international markets. This makes this plan stand a good chance of selling in many markets thus the success of the business (Newman, 2009).

D. The Services

This business will involve the company running a number of services. One of the services for the company will be seeking out the markets to purchase sap after it is harvested. In this case, the managers of this proposed business would conduct market research to establish the sap available after farmers have harvested. The company will also search for other local and international markets where the sap may be sold at a time when its prices are favorable. In addition, my proposed business will also offer treatment and storage services of then sap that is bought from the farmers. The treatment and storage services are among the most significant services that the business will conduct. This is because this service will add value to the sap, by allowing the market prices of sap to adjust before it is sold. During harvesting, the prices of sap will be relatively lower: storing it will allow the business to sell the rubber sap when the markets are ripe. This has significant business value to the business because the company can make profits through this avenue.

E. The Growth Plan

The growth plan for this proposed business plan has a simple approach. In this case, I look forward to beginning with a humble beginning and use the available resources. The business project team of four will be involved in propelling the proposed company to expand. The growth of the company will pick from a humble beginning. We intend to use my farm in the rural areas to create a treatment plant for the sap and a storage location. This will act as an advantage to the business because we would not be pushed to incur the huge cost of purchasing land. The business will then employ five workers who will be involved in the process of treatment and storage of sap. The management of the company will involve four American-Thai couples. The company will expand on an annual basis because the business will have to increase the labor force, and the amount of sap that is bought, stored, and sold every year. Every year, the strategic management team comprising of the four couples will make decisions on how the company to grow.

IV. Thailand Market Analysis

The success of this proposed business plan depends on the market conditions in Thailand, vis-a-vis Rubber production industry. The success of this plan significantly depends on the market choice decision that the management will undertake to make the plan a success. The first thing that is noted about Thailand is that the country provides a good atmosphere for rubber farming. This is because of the good weather and soils that allow the rubber trees to grow. Thailand has been renowned for rubber plantation farming.

A. Thailand Market Size and Trends

Thailand has a good market for sap.… READ MORE

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