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1.0 Executive Summary
The focus of assignment is on our reverse vending machine business plan. We will discuss on how the business operate, the products and services provide to the customers. Our business is a general partnership business which operated more than one owner. The business owner will be Mr. Bryan, Ms. Cheong and Ms. Foong. Our enterprise main office will in the Greentown Ipoh and the factory will at Silibin Ipoh. We put more focusing on the Ipoh town, so the product will place on the primary school of Ipoh, such as S.J.K. (C) Yuk Choy and MGS Ipoh.
The main mission for our 3R Enterprise is to be the leader in the developed and maintenance of innovative and sustainable reduces waste. The goals for our company are provide high level of service to customer, to maximum the profit level and reward to shareholders and educated and influence the important of the environment to young generation.
Market analysis is done to know our target market as well to get know our competitors. We will further discuss about the marketing strategies to increase our brand awareness and improve our business image and impression.
We also discuss the key management team on the business plan to make sure that all are moving to the same direction. Besides that, we will discuss about the challenge and risks when we facing on this business plan.
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2.0 Business Description
2.1 General Description of the Business
3R Enterprise is doing to recycle business and the business was operating on two years. The business was partnership this company has three owners to operate it. 3R Enterprise open by 9am to 6pm and currently has 20 staffs. Basically, 3R Enterprise provided the service such as plastic, e-waste, paper and two more are coming soon. We are turning the waste to the money and this is the good opportunity to provide other people to earn some extra pocket money.
In addition, 3R Enterprise has also provided the transport service which received the recycle material from customers. The vision that company is to be the leader in the developed and maintenance of innovative and sustainable reduce waste. After that, three of us are come out with the idea which we create and make the reverse vending machine. We invest the machine that used the technologies we buy from other countries.
Last but not least, this time we more focus on the new reverse vending machine this machines will bring the opportunity and convenience for all the people. In the future, we will bring newer technology and expand our business. Then, 3R Enterprise also has to join the CRS Program took the initiatives to access and responsible into the environmental. Thus, we also promise that we will always listen and continue to satisfy our customers.
2.2 Industry Background
The first earlier started the recycle business in Malaysia was Thanam Industry. Started 35 years ago, the family run business has gone through three generations. The company was located at the Jalan Chan Sow Lin, 55200, Kuala Lumpur and total workforce of about 30 employees. (Thanam Industry Sdn.Bhd., 2015)
At Thanam, they have provided few services such as plastic, e-wastes, paper, scrap car and scrap metal. Some more, Thanam industry has make the general collection not only from local and overseas scrap vendors, dealers or traders, manufactures, plumbers and other related suppliers. (Thanam Industry Sdn.Bhd., 2015)
Therefore, three of us are started the recycle business and educated the young generation encourage to take care the environment. We should start to educate the children from the kindergarten and primary school.
2.3 Goal
1. To provide the high level of service to the customer
2. To maximum the profit level and reward to shareholders.
3. To educated and influence the important of the environment to younger generation.
2.4 Potential of the business
Doing the recycle business, we are not only focusing on the profit at the same time we also care about environment. The purpose we do the recycle business we want the people to practice how important the environment will affect to us. Protect environment everyone has responsibility take care it. These will provide environmental benefit of us of doing this as a result we can reduce the greenhouse gas emission; improve the recyclability and renewable carbon.
Some more, we get grant opportunities for doing this recycles business most of these outsiders suppliers they require a lot of to recycle material to produce the recycled products. Therefore, this is the good opportunity we can start up the business to earn the profit. Thus, we will take this opportunity and start to educate the knowledge to the people about the recycling.
Recycle business is the offers cash benefit of those people that who takes to recycle product of us. Our company will turn your waste into the money and there have certain rules and regulation criteria. Your waste should be such as plastic, e-waste, paper and so on that considers is the recycles material. The cash value is depending how much on weight that you have and only know how much you can get. Thus, more weight you get more cash you received.
Moreover, more employment opportunities will be the target for this industry. In our recycled business expands we need more employees to join us and make more profit in this industry. Even housewife, retires, unemployment people also can join this industry. This industry is welcoming all different people to work together and share their ideas how we can improve our business.
Last but not least, improve the image of the city or place. If everyone doing this practices every day they will be reducing the burden of the local government. From this practice, we can save landfill space and environment. For example, if Ipoh becomes a place that to creating a new and green environment that will attract more visitors from outside. Thus, this is how the recycle business will get other attention and environmentally friendly practice.
3.0 Marketing
3.1 Target Market
In the target market, we are targeting young adults market which is in the age of 7 to 65 years old as our priority potential customers. Those potential customers are all from the primary school where located in Ipoh area. This is because most of the students and teachers will have their meal and spending money frequently in school canteen. For example, the drinking bottles and cans that they buy will help to increase the rate of recycling. Besides that, the earning points that can exchanged for the Milo drink also become one of the attractive point for them to continue the recycle activity. In addition, it is also providing the opportunity for the students to understand and build the go-green concept in the education. Therefore, the recycling machine will become one of the customer choices when recycling products.
3.2 Market Size and Trend

According to Ipohecho website, there are about 600,000 tonnes of garbage produced annually and total of 15 percent consists of plastic. About 10,000 tonnes are recovered through recycling while the others remaining 80,000 tonnes ended up in landfills, rivers and illegal dumpsites. In order to make customers to recycle and also save the earth, our company launched out the reverse vending machine as to attract interest and attention of customers. Besides that, we are the only company that produce this machine and believe that it could influence customers to recycle. In addition, we also broke up the traditional way of recycling and change to reward the customer by free goods such as drinks in the form of machine way. It will be a fresh and interesting for customers to experience when recycling.
3.3 Competition
SWOT Analysis
SWOT analysis is a good method to understand business’s strength and weakness but also look for opportunities and threats. The main goal of SWOT analysis is to recognize the key internal and external factors that are important for our reverse vending machine to achieve the object.
First, one of the strengths is to encourage customers to recycle the disposal wastage. For example, students and teachers collect the bottles and cans after drinking and recycle them at the vending machine. Through this action, it will reduce the labour cost for the recycle processes. The school no need to spend another financial to take over the problem. Besides that, the earning point for exchange the Milo drinking also one of the strengths for them to use the system frequently. This will help school environment reduce the disposal wastage and produce the clean environment.
Second, the limitation of the participation of users is one of the weaknesses. The participation of users only involved students, teachers and staff due to the places where only placed in the school only. In addition, red tape formalities to install the facility in premise also become one of the weaknesses. This is because it will have lots of procedures and permission to process before promoting it to the customers. Furthermore, reverse vending machine need to maintain in long period of time and needed extreme care in usage. Therefore, it will need extra financially in order to service and maintain the machine function well.
Third, reverse vending machine is a good chance recycling marketing tool to encourage and promote ecosystem protection processes and environmental friendly. Throughout the introduction of reverse vending machine, it will attract customers to recycle and will avoid the environment pollution and return back a clean and beautiful environment. In addition, it also gives students to recognize the important of recycling and the concept of going green throughout the reserve vending machine activities.
Forth, one of the threats of the machine is the slow recycling operation of the machine. This is because it takes one item at a time. Therefore, the receiving aperture and recycling system needs upgrade and storage capacity must be increased for consumers to put 3 or 4 items at once. The scanning system is another issue which usually takes much time to scan the used materials. Furthermore, the vandalism of the machine may happen by the students in school. For example, some of the immature students may do the vandalism on the machine and cause the broken.
3.4 Estimated Market Share
Market share is the measurement of market or an industry’s total trades that is made by a company concluded a specified time period. In Ipoh, there are about four famous recycle companies, which are Meru Valley Resort, The Salvation Army Kedai Jimat, Kechara Ipoh Study Group, and Rumah Warga Tua Anning Berhad. However, our 3R company is the one who has the first reverse vending machine in Ipoh. Therefore, it can say that we own the 100% market share in Ipoh market and we believe that the reverse vending machine will become our best selling point.
3.5 Description on Marketing Mix
Marketing mix is the company uses to promote the product or brand in the market. The marketing mix is divided in four different areas, which included to Product, Price, Place and Promotion.
Product is an item that is produced to satisfy the need of the customers. In our company, we will launch out the Reverse Vending Machine that can recycle the items such as bottles and cans. Reverse vending machine is automatic machine which utilise advanced technology to identify, sort, collect and process used beverage containers. Our reverse vending machine is set to recycle for empty drink cans and plastic bottles.
Price is referring to the amount of a product that customer pays for to enjoy it. In our reverse vending machine, we offer the earn point as the reward when they recycle the empty bottles. Every student will be given a swipe card and used to earn point every time when recycle. For example, students will earn 2 point per bottle when recycle and a free Milo drink will be rewarded for students once they earn 10 point in their swipe card.
Place is the position and distributes the product in a place that is accessible to the potential customer.
We had choose 5 primary school in Ipoh area as our location.
This is the list of the 5 primary school in Ipoh:
1. SJK (C) Yuk Choy
2. SJK (C) Sam Chai
3. SJK (C) Poi Lam
4. SJK (C) Sam Tet
5. MGS Ipoh
The reason why we choose this place is because school is one of the biggest places that produce disposal wastage. In addition, we believe that educational on environmental sustainability should start at a young age which let students increase their environmental awareness too.
Promotion is very important element of marketing as it can help company to boost brand recognition and increases the sales. In the promotion, we will use social media such as Facebook, Instagram and radio. This is because online advertisement is more effective to approach to the large number of customers.
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4.0 Operation
4.1 Identify Location
3R Enterprise office located at the Greentown Business Centre and manufactory at the Silibin Ipoh area. Location is the most important toward our business therefore we choose the best strategy area which is in town center of the office and manufactory is the place that full of the factory area. In addition, we have five drivers are driving the lorry their task normally doing collecting the recycle material from different place every day in Ipoh area.
Moreover, we have invested the reverse vending machine and located at the primary school. We had choose five primary school in SJK ( C) Yuk Choy, SJK ( C) Sam Chai, SJK ( C) Poi Lam, SJK ( C) Sam Tet and MGS Ipoh. The purpose machine place that in the primary school we know that recycling education is initiated by the primary school. In the future, we will try to expand the machine business into other place and encourage more people to learn the importance recycling education toward our environment.
4.2 Specific Operational Procedures
These are the steps in the specific operational procedures in the 3R Enterprise:
Step1: Collect and Delivery at the recycling facilities.
Step 2: Receiving
Step3: Audit and Sort
Step 4: Disassembly and Removal of materials of concern
Step 5: PEST Control
Step6: Shredding
Step7: Automated Mechanical Sorting
Step 8: Transport to the Suppliers
4.3 Personnel needs and uses
In the recycling industry, what we need is employees and equipment that help us to produce more efficient and process it well. Employees are the most valuable toward our business because they are the one that deals with the task and works on it. As the owner, we only know the loss or the profit of the business sometimes we might not really know what happens or issues the employees they are facing. Therefore, as the owners, we are not only focused on the revenue at the same time we care our employees. If the employees they have any issue or problem we are welcoming to listen and accepted the feedback. We will try to improve the working environment and satisfied the employees and treat them same with our families. Thus, sometimes we will organize the event or one-day trip to increase the productivity of working efficiency and effective toward our business.
Moreover, the equipment that is used in the recycling industry such as e-waste solutions, glass recycling solutions, single stream, and forestry, wood and biomass equipment. In addition, crap processing equipment and tire recycling coming soon. (General Kinematic Corporation, 2018) These are the important equipment that used to make our business more productive and effective. Most of the equipment that is the import from other countries this equipment is the faster and long lasting for our business. Order the equipment expensive but the maintenance fees are included therefore we no need to pay extra money for the fees. They have professional maintenance staffs to check and maintain the equipment once every three months. Thus, having the good quality equipment can produce the good quality product to the supplier.
Last but not least, recently our business has come out this idea which is the reverse vending machine. Since, we have a lot of potential for this recycle industry therefore we invest the reverse vending machine. Reverse vending machine is the machines that use for collecting the recycle material. Reverse vending machine is the machine that brings a lot of convenience to the people. Thus, we will try to improve this machine and add more functions in the future.
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4.4 Proximity of Suppliers
3R Enterprise has deal with few suppliers such as the paper, bottle, paper and outsiders people company. Our industry will collect the paper, bottle and paper pass to the items to the suppliers. We will follow the list of the items that is required from the suppliers for fulfilling the needs and wants of them. Our company will provide not only with good quality recycle items for the price that we offer to the suppliers that can be accepted.
Moreover, our company not only deals with the local suppliers and deal with other Asian countries such as Singapore, Indonesia, and Vietnam. After that, we will try to expand our business and find more suppliers in the future. Our company will maintain good and ethical business practice and to ensure the customer quality and satisfaction. 3R Enterprise has the professional marketing team they will keep dealing and provide the goods and services to the suppliers and any suppliers not satisfied that can email feedback from them.
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5.0 Management
5.1 Management Team and Company Structure

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5.2 Key Management Team
Mr. Bryan, Ms. Cheong and Ms. Foong are the owners and directors of this company. Three directors will focus on the review the report of each department and make business decision after each meeting. Ms. Ting will manage the marketing activities which includes promote the product and exploring ways of improving existing products and services to increase profitability. Mr. Jack will allocate and recording resources and movements on the transport planning system and communicate with client and responding to their requirements. He also direct all transportation activities and monitoring the transportation costs. Ms. Jessie will always interact with customers in the phone or website by answering question, give suggest information about product and services. She also opens customer account by recording account information and updates their account information. She also handing customer complaints and solve the problem and follow up to ensure resolution. Mr. Amin will make sure the products are run in smoothly and good service is providing to the customer. He need to ensure that communication between departments is ongoing and support company in production planning and make sure the business is adequately resourced. He also act as a liaison to senior management or board of directors to keep them update to ensure key performance indicators are in place and production targets are met. Ms. Choong will develop and implement strategies and initiatives aligned with the overall business strategies. She also manages the recruitment and selection process and maintain pay plan and benefit program for the employees. She also develops and monitors overall strategies, systems and procedures across the organization and support the business need through development, engagement, motivation and preservation of human capital. Ms. Soon will manage and oversee the daily operations of the accounting department and analyze accounting data and produce financial reports or statements for the senior management or directors to reviews. She also coordinates and completes annual audits of the company and improves the system and procedures and initiate corrective action to meet financial accounting objectives.

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6.0 Marketing Plan
Marketing plan is the way of business promote and sell their product and service to customers in the market.
Before promoting of the reverse vending machine, our company will make an announcement and introduce the advertisement on our official Facebook website and other social media such as Instagram. This is because social media is one of the fastest way to approach to large of customers. Besides that, it is also cheaper than using TV broadcast to advertise.
Besides that, we also will make our announcement at the five primary school’s website and build broad since we cooperate with those five primary school. Therefore, students and staff will get more information about the reverse vending machine.
In addition, our company will organize a small talk at those five primary school. The aim of the talk is to introduce the reverse vending machine for students and staff and teaches them the way to use it.
On the other hand, in order to promote and attract them to use the new launched of reverse vending machine, each students and staff in school will give the reward card as to earn point to get the free Milo drink. This is the selling point of the machine to encourage them to recycle.
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7.0 Design and development plan
7.1 Design Reverse Vending Machine
Blueprint

7.2 Challenge and risks
1. Lack of education
The people knowledge regarding to reduce; reuse and recycle (3R’s) is very less. Although they know the meaning of recycle, but they still lack of information about the recycling materials such as paper, cardboard, glasses, cans and others. Some of them even do not know about 3R’s especially the old generation. Although now the schools will educate their students about the 3R’s but they still lack of the practices.
2. Lack of support
Some residents are known about the recycling program and they will support it but some of them may not. In order for the recycling program moving forward, the government and the residents are needs to be cooperation for who want to go green. The residents need to understand the short-term and long-term benefits of recycling and motivate towns and cities to establish the program.
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3. Capital requirement
There are not easy for a town or city to come out with the idea of recycling. When a group of people decided to start a new recycling program, they need to prepare the cost for labor, machinery, transportation, land, factory and others. Although some company willing to start the practice, but they may lack of capital to buy the machine.
4. Legislation and laws
Different countries have different laws and legislations. In Malaysia, there are not easy to apply a license for a recycling factory. They may needs to provide the government with the details of recycle materials, machinery and others information. The process to apply a license for recycling may be costly and time consuming.

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8.0 Conclusion
Now a day, the earth become sick and everyone will start to protect the earth for our next generation. To give our next generation a good environment, people are starting to practice on reduce, reuse and recycle the materials.
In our business plan, we recommend starting the green practice when young age, such as in primary school time. So, we put the machine in the primary to encourage the young kids on the recycling knowledge. We also encourage the teacher and families also teach their children about the green practices to protect the environment.
We hope that this business can proceed to the next step which is can deal with other Asian countries to increase the awareness of the environment and increase the profitability of the company.