Significance of Marketing and Business Operation Plan: The of Delta Synthetics - Case Study Example

Answer to question number one Delta synthetics fiber is a company that is involved in the production of man made fibres.It is involved in the manufacture and sales of britlene and britlon which is used in the manufacture of clothes, industrial use such as in making of tyre chords and in the manufacture of thermal and electrical insulators due to the high wear resistance. The production method of britlene and Britlon is similar to that of most man made fibers whereby the process of polymerization is involved.Britlene is produced in three factories which include Teeside which has three plants, Dumfries which has one plant and Bradford which has one plant. Both the three plant produce a capacity of 5.5 million kilogram's per year but when the annual closure and maintenance take place, the company's capacity of production is 5 million kilogram's per year. The company wants to introduce a new product and so it has to improve the capacity of its production. Within six years, it is expected that the production capacity will increase and so the forecast and planning has to be done. The forecasted result show that the result for the britelene demand is falling but it is not likely to go to zero but it is going to reach a residual demand level .From the year 1996 to 1998, it is only the britelene that was produced. There is a reduction in the demand of the product due to some resources which could have been used to promote the sales was diverted in the production of the new substance. In the year 1999, the company started producing Briton. The production of this product led to the decrease in the demand of brutlene while the Briton continued to increase in its demand as the years go by. In the year 2002, the demand of bretlene is 10 million kilograms while that of Briton is 29 million kilograms. The total sales of both the products remain the same from the year 2002 to 2002 whereby in 2000, 39 million kilograms were sold, in 2001; 38 million kilogram's were sold while in 2002 the total was 2002 million kilograms. The results are reflected in the table below. Year Brutlene in million kilogram's Difference in million kilograms between successive years Briton in million kilograms Difference in million kilograms between successive years Total of the products in million kilograms. 1999 17 3 30 2000 13 (4) 16 13 39 2001 11 (2) 27 9 38 2002 10 (1) 29 2 39 The total remains the same and so the likely trend of total sales is likely to remain the same or show a negligible difference. Since the sales of brutlene are reducing and it should have a reserve level of sales, the focus for the reduction in sales is likely to be at a level of one million kilograms per annum. .Due to this, the value of sales of brutelene for the next six years from 2002 is as follow. In 2003, the sales are likely to be 9 million kilogram's. In 2004,the likely sales is 8 million kilograms .In 2005,the likely sales is 7million kilogram's. In the year2006,the likely sales is 6 million kilograms. in the year 2007,the likely sales is 5 million kilograms while in 2008,the likely sales is going to be 4million kilogram's. For the Briton, the sales in the next six years are obtained by the difference in total sales which is constant for each year from the predicted sales of each year. In the year 2003, the likely sale of Briton is 30 million kilograms. In the year 2004, the likely sales are 31 million kilograms. In the year 2005, the sales are likely to be 32 million kilograms. In the year 2006, the likely sales is33 million kilogram's.. In the year 2007, the likely sales is 34 million kilograms .In the year 2008, the predicted sales is likely to be 35 million kilograms. To obtain the required capacity, several plans have to be considered. These are the financial plan, marketing plan, operations plan, risk management plan and the management plan. Eric Versuh, John Wiley and sons (1999). In the financial plan they should look for more capital which can be obtained from borrowing from banks, ploughing back of the profit obtained from the business and cutting of the running cost by reducing the expenses. This will enable the company to have enough money to finance its expansion. Eric Versuh, John Wiley and sons (1999). Marketing plan is of significance importance because it is going to assist in the identifying new customers and provide the means of retaining the existing customers. The marketing plan will enable the organization to know the area of competition and try to face the competition through the means such as better pricing policy, improved services good advertisement method and improving the quality of the products such as the manufacture of highly resistant Briton. Eric Versuh, John Wiley and sons (1999). Operation plan include all the activity involving the daily activities of the company such as engineering work, manufacturing work and the, information technology. Information technology has an important use in any organization. Due to increase in the productivity, the information technology must be efficient to coordinate the functions of the organization. The equipment and the machines used in manufacturing must be up to date and must be efficient if productivity is to be improved. Eric Versuh, John Wiley and sons (1999). The company should have a good risk management plan .It should have ways of managing the information technology by having good and efficient software and it should trained personnel The political risk should be managed by being flexible and being able to change according to the situation. Eric Versuh, John Wiley and sons (1999). Question number three: Factor to consider when choosing a good site Teeside is the largest with three plants and provides the best site for expansion. The branch has three plants and some may be converted into a plant to manufacture the Briton. This will have saved the purchase of machines for new plant. Being a large plant it will be able to offer the warehousing facility to the new plant hence its significance. The region on which Teeside is located has other plants which are undergoing the expansion process and hence the competition is healthy for the growth of organization and in the improving the services it is offering to the customers B, Michael Aucoin (2007) The area on which the plant is situated has a large number of employees especially the skilled and semi skilled workers. This provides a great pool of labor and so help in saving the cost of the labour.Also the presence of other companies provide a chance of which the staff from other companies can be recruited and hence the possibility of getting good and experienced employees. Also being a large firm, it may retrain some of its workers in doing the job and so cut the cost involved in recruitment B, Michael Aucoin (2007). The business is likely to benefit from the services obtained when companies which are at the same sight obtain. These include enjoying the services such as the banking services, having the employers union and sharing of certain facility such as good roads, warehousing and the presence of power. B, Michael Aucoin (2007). Question number three: Criteria used to make a recommendation When companies are located together, they are likely to gain an advantage of improved infrastructure such as power and this becomes easier because of the sharing of the responsibility and cost Due to this, it is more economical to use the available facility than starting another plant from the scratch. Kimberly Wielfimg (2007). The possibility of tertiary institution such as banks ,hotels and the institution offering complementary services such as those used in the manufacture of packaging materials .This is advantageous because it brings customers closer to the company and hence help in saving the cost and time that could have been used in transport. Kimberly Wielfimg (2007). When the manufacture of Briton start at the same site with the brutelene, it will be easier to buy their material because the two products use the same type of material and so it becomes easier to transport the raw material to the plant and due to buying of materials in large quantity, they are likely to benefit from discounts and buying of the goods in low prices due to buying in large quantity. Kimberly Wielfimg (2007). The area on which the plant is situated has a large number of employees especially the skilled and semi skilled workers. This provides a great pool of labor and so help in saving the cost of the labour.Also the presence of other companies provide a chance of which the staff from other companies can be recruited and hence the possibility of getting good and experienced employees. Also being a large firm, it may retrain some of its workers in doing the job and so cut the cost involved in recruitment. Kimberly Wielfimg (2007). Question number four: Danger facing the expansion of Delta synthetic fibers The chances of competition are likely to face the growth of the company. This is due to the rise of other companies dealing with the same products and this result in use of a large amount in sales promotion and advertisement. This may result to escalating costs of running the business and the competition may lead to flooding of the market and this lead to price drop and hence this may lead to poor performance in the business. Tom Demano, Timothy lister Dorset (1999) Petroleum oil is one of raw material used in the manufacture of the two products. When the international oil price rise, the domestic oil price also increases and as a result the production cost will escalate and this will be passed onto the consumer. The increase in the price will scare away the consumer who will in turn look for alternative products such as cotton. Tom Demano, Timothy lister Dorset (1999). The change of the government policy may affect the business. For example the tax policy may lead to increased corporate tax and this may lead to increase in the cost of running of the business and rise in the price of the commodity to cover the tax. Some government policy such as those that advocate for environmental conservation may affect the company as it may result to increase in cost of maintenance of the environment. Tom Demano, Timothy lister Dorset (1999) The financial constrain may affect the business growth. Insufficient funds may affect the business by failing to finance the buying of new machines and equipment and may lead to low level of the human resource recruitment Eric Versuh, John Wiley and sons (1999). When the business expands, there is need to employ high technology which may be expensive to adapt, and the professions in that field may be scarce and may require high salary. Tom Demano, Timothy lister Dorset (1999) The workers may demand to be unionized and this might lead to the company undergoing high costs in salary and litigation fees. References Eric Versuh, John Wiley and sons (1999): Project management: ISBN B, Michael Aucoin (2007): Right brain project management: ISBN Kimberly Wielfimg (2007): Scrappy project management: ISBN Tom Demano, Timothy lister Dorset (1999): Productive project and teams: Macmillan Read More