Entrepreneurship Business Plan Of Fiji Natural Resource Processing

Question: Discuss about the Entrepreneurship Business Plan Of Fiji Natural Resource Processing. Answer: Critical-risks segment A Petrochemical processing plant, Fiji Natural Resource Processing LTD, is going to open at Walu Bay near the Port, in Fiji. This place is in a very pleasant location that has quite well managed and has quite good amenities and facilities like, roads, nearby port, infrastructure, Potential problems As it is a new business venture, the business can face the team experience as the founder of the business does not have a track record of the team members. The entrepreneurs need to check the opportunity and market of the petrochemical processing plant. Petrochemical process plant, Fiji Natural Resource Processing LTD, business needs money to open as it has a large and growing market. In Fiji and Australia, there are other petrochemical plants that can cut the price of the products that will pose a potential risk to the new business. Having a couple of large competitors in the market always a threat to the business and the new business will need an intellectual property like patents. At present, the petrochemical industry is rising high; however, unfavourable industry-wide trends can make the situation worse for the new start-up business (Semrau and Werner 2014). The start-up business needs natural resources like natural gas, crude oil and mineral ores to make the industry processes things like propylene, ethylene and aromatics. In Fiji and Australia, selection of right market entry strategy is necessary to attract the customers of the business. Right pricing is necessary and wrong distribution will hamper the business. Obstacles and risks This Petrochemical processing plant, Fiji Natural Resource Processing LTD, will be established on 300 acres area and capacity of processing plant will be initially 7,00,00 TPA ethylene and propylene. Therefore, if the product manufacturing target does not meet, the business will face risks and product development schedule should be met in order to survive in the industry. The raw materials of the business are large in numbers like crude oil, ores and natural gas and long lead times encountered in the procurement can pose a threat to the company. The entrepreneurs in the business process may feel that the business is going to achieve greater than expected innovations and it can be a risk for the organisation. Estimated budget of the business is $900 million. Financial risks are also high in this sector as the investment is higher. Entrepreneurs of the business must think about the real plan of the business. Ownership of the start-up will be partnership business with 4 members. Therefore, the liability of the partners for the debts is unlimited. As stated by Bocken (2015), manufacturing business related to the petrochemical products, technology disruption and paradigm shift can make the situation worse for the business. Environmental risks In case of the Petrochemical process plant, Fiji Natural Resource Processing LTD, the environmental risks are higher as this industry is completely based on non-renewable energy resources. In the Fiji and Australia, there are some regulatory bodies that give permission to do business complying the environmental assessment risks. There are some hazards associated with the petrochemical business that is situated near the port. For example, cyclone can increase the temperature up to 2.2 degree Celsius and it can lead to 5% increase in speed of cyclone wind. In Fiji, Bushfire is also another risk for the business as it can increase the summer temperature by 1 degree Celsius. Droughts can increase 1.3 degree Celsius temperature and 25% evaporation increases. In addition, as stated by Olson and Wu (2017), the flood can also another risk to the business as it is situated near the sea area and 25% of the temperature can be increased through 30 minutes of precipitation. In addition, an overall increase of climate temperature can hamper the business as the business is depended on mainly natural resources. In Fiji near the sea beach port area, oil spilling is another issue that can harm the environment as well. An alternative course of action In order to mitigate the market-related risk analysis, sufficient demand should be there to manufacture the products. The management of the organisation must release, observe and improve the condition. The start-up business needs to analyse the risks and they need to satisfy the marketplace. The start-up needs to use the right technologies to manufacture the products and market the products to the customers. The partners of the business can put aside the money for the taxes as the accounts of the very first payment must be noted. In addition, operational risk analysis can help to sell and produce the products on time. The entrepreneurs can get the business insurance to make up the professional liability. Harvest strategy segment New start-up of Petrochemical processing plant, Fiji Natural Resource Processing LTD, will execute the harvest strategy over four years of the period to obtain maximum value. The entrepreneurs of the business will primarily focus on continuity strategy to find out the successor. The exit goal of the business is to transfer the asset. As opined by Kuratko (2016), harvest strategy consists of allowing the established brand to start generating revenue based on brand name recognition. Transfer of assets One of the best ways for Fiji Natural Resource Processing LTD is to transfer the assets to the newly appointed owner. The newly appointed owner can manage the business and the owner may have good financial value. The formal contract can state that Fiji Natural Resource Processing LTD will transfer the assets after four years whilst maintaining the legal proceedings. The newly appointed buyer of must is provided with training on operating the business (Modarres et al. 2016). This process may take time of two to three months. The management of the start-up can provide ongoing support in order to ensure Petrochemical Processing plant success for first two or three years. The buyer of the business must know about the relevant information like customers of the business and legal papers. If Petrochemical processing plant fails to achieve the goal, it can transfer the assets to the persons who are liable. Liable for the business would be transferred the existing funds. As stated by Ward (2016), the business needs to comply with those that are liable to work on the strategy to transfer the assets on mutual agreement. Therefore, the entrepreneurs of the business need to look for the possible and potential buyer to meet the needs and demand of those who are liable to all these. The management of the Petrochemical processing plant can revise the initial contract to disperse the funds accordingly. Continuity of business strategy The continuity strategy will focus on manufacturing higher profits to expand the fund in other sections to meet the exit goal. The Fiji Natural Resource Processing LTD is to continue the business strategy to focus on mainly the marketing objectives of the business, financial goals and operational objectives. In addition, the entrepreneurs of the business need to have staffing goal and social responsibility to continue the business. The management of the start-up needs to set the position to reach the desired long-term exit goal. There will be some issues that will prevent the business to continue the business strategies. Fiji Natural Resource Processing LTD needs to revise the strategy to determine if keeping the track records to look for the strategies to meet the goals. The continuity of the business can be achieved through systemising its daily activities. The management of start-up can break business continuity plan into four different sections. First, the business does business impact analysis where the organisation can prepare a questionnaire to fill in the knowledge gap. As pointed out by DeTinenne et al. (2015), a recovery strategy is about identifying the document resources and plan development is about the developing the framework and relocation plan. Lastly, Petrochemical processing plant can develop testing, exercise and mainstream requirements. The organisation can prepare insurance and trust that are needed for continuity of the business. Identify successor Reaching its exit goal, Fiji Natural Resource Processing LTD can look for the successor that can bear the qualities to operate the business. The transition of leadership starts with emergency succession and the management needs to develop the plan for the transition of both internal and external roles of departing leader. According to Muzellec et al. (2015), it is really critical for the organisation to continue with the transition that leads to damage and stress to the organisation. Success plan starts with promoting an internal employee, hiring interim ED and conducting a search for new ED. The successor of the business must have qualities like highly skilled, financially able, experience in similar areas and ability to grow the business further. The leader must have an extensive history of the previous dealing with the business and successor must be able to grow the start-up even further. References Bocken, N.M.P., 2015. 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