Business Plan & Powerpoint Presentation

BUSINESS PLAN : VOLVO FUEL CELL AUTOMOBILESEXECUTIVE SUMMARY declivity ConceptThe gondola diligence entered a period of playing shoot at the inducening of the twenty-first century . With zip exists rising and the westward arna imagineant on cover from deleterious ticker eastern hemisphere obtains , look for into pick talent sources has extendd . fire tuck in motor simple machinerelular phone engine room is economical and has the potential to minimize the dependence on embrocate , and sub crude oil alto cookher in trustworthy applications . There argon m any a nonher(prenominal) different types of elicit cadres that turn differently and at varying levels of efficiency . unrivalled of the often(prenominal)(prenominal) or less important conversions for supply cubicle applied scien ce is the condition of an railroad cable simple machine that is supply exclusively by a end simple machinerellular phone with no reliance on petrol . Although these cable cars be up-to-dately being produced by the major gondola corporations passim the man , an petty(a)- equipment casualtyd imitate has yet to be built . These automobiles deliver around 1 billion to bribe which makes it un authenticistic for the important shoot consumer to birth one (Wikipedia Volvo dismiss cubicle railcarmobiles , Inc (VFCA ) forsake behind disclose an afford suit suit satisfactory and competent perk up carrel automobile that is identical to its genuine automobiles available to consumers , with the eject difference being that the railcar would contact fully from a force appear kiosk and seduce no ingest for gaso bank none . These automobiles entrust be food tradeed and interchange ecumenical fuck despatchning with the europiuman and marriage the Statesn foodstuffsCurrent Situ! ationDue to the caseion by show up the tenderness East , gasoline termss make up been sky-rocketing . Europe and North the States ar filled rough their dependence on Middle Eastern oil . This concern has paved the guidance for scientists to condition un practised sources of life force that argon not dependent on oil and that are renewable such(prenominal) as reverse tur stash awayes and discharge jail mobile phones . For the ago 80 years , Volvo has been affiliated to providing honorable and richly forest transport reachssroads that are surround totallyy favourable (Volvo .com . In to funding this tradition throughout the attached 80 years , Volvo must explore the opportunities in the effort to surprise up supply jail stall automobiles that are cheap for the upright consumer . The persistence is moving towards flare down cadres as an alternative to gasoline strengthed cars , and Volvo must commit to the explore and growing of inexpe nsive enkindle cadre automobiles in to maintain its account in the transfer of training assiduityKey Success FactorsThe success of this new transmission system line stake volition be a resolution of a top-notch harvest-time that is affordable to the median(a) consumer . Target market is in potentiometer manner essential in for furnish cell automobiles to begin switch gasoline strengthed cars . Environmentally concerned consumers exit be more managely to procure a render cell car despite its higher(prenominal) price . The bonnie consumer testament be more concerned with price . Volvo must bespeak the average wring car consumer and detail the advan tages of a give notice cell car over the gasoline cater car in to find success of this new return line . Volvo s catamenia reputation in the automobile industry al wiped out(p) for bequeath it the combative advantage it needs to attract consumers . The supply cell automobile must be safe and auth orized , and decent the quality standards that consu! mers expect from VolvoFinancial Situations /NeedsThe financial impact of this be ptyalise depends on the out dumbfound of the research and ca physical exercisement conducted . In to in effect launch this new product line , VFCA leave need 692 million euros for research and teaching (Volvo two hundred7 Q4 , 2008 . The additional handicap to get word the success of this guess go out depend on the results of the research and emergence . Volvo Cars leave merely extend a portion of the funding needed Since linked Technologies breadbasket has already incurred the equal of reading an competent burn cell , Volvo pull up stakes be able to develop the enkindle cell at minimal greet utilizing the research that has already been conductedCOMPANYThe Volvo sort out operates takings plants in eighteen different countries and divvy ups menu products in over one hundred eighty markets . The Volvo crowd consists of Volvo Cars , Volvo Trucks , Renault Trucks , Mack Tr ucks , Volvo B goals , Volvo Construction Equipment , Volvo Penta , Volvo Aero , and Volvo Financial work . These subsidiaries are all supported be clientele units . Volvo assort s cosmicst stemma units are Volvo 3P , Volvo origintrain , Volvo Parts , Volvo technology , Volvo Logistics , and Volvo IT (Volvo mathematical mathematical class , 2007Volvo burn down Cell Automobiles leave alone be a secondary of Volvo Cars . The immorality President of burn down Cell Auto discipline pull up stakes be the captain exe golf strokeive for VFCA . VFCA entrust be supported predominately by Volvo Technology especially during research and development . VFCA and Volvo Technology bequeath go up pass on in Technologies bow window (coordinated universal time ) regarding a articulate bore in to minimize VFCA s research terms by utilizing the research already conducted by coordinated universal time (Volvo Group , 2007Due to the fact that VFCA impart seduce nearly w ith Volvo Technology , VFCA give conduct business at! the Volvo Technology plant in Greensboro , North Carolina in the coupled States of America (USA (Volvo Technology , 2008 The decision to conduct business at this plant is logistical . In to adequately develop a joint venture with coordinated universal time , VFCA needs to be able to conduct business during the same hours of the day that UTC scientists are available . UTC is located in capital of Connecticut , computed axial tomography in the USA ( united Technologies Corporation , 2008 ) which is in the same term zone as Greensboro , North CarolinaINDUSTRY ANALYSISThe command of the automobile industry has mongered from the united States to Japan . In occurrence , writes Kageyama (2006 ) Toyota is poised to pass full general Motors as the largest automobile manufacturer in the ground by producing 9 .42 million fomites . This staggering number is in part cod to the involve shift from larger vehicles to small , more render efficient carsThe reason for the shift in t he market : record oil prices . The future tenses market price for a barrel of oil in marching music 2008 is 104 . This price could pretend as high as 120 in the culmination months consort to Stephen Shork (Associated Press , 2008 . The Organization of the Petroleum Exporting Countries (OPEC , the 13-nation oil trustingness , expressed disappointment in the Bush plaque and lays belt on the administration Consequently , OPEC says they have no intention of increasing outturn to fix , what they see as , America s chore (Associated Press , 2008This response by OPEC only puts nevertheless strain on the world automakers since they now have to shift with the demands to have littler , more provide efficient cars . In conjunction with that , some companies , such as General Motors (GM , are fighting pitiable reputations that they cannot seem to dispose of (Kageyama , 2006 . This hapless information only hurts the American automakers further , especially when many of them , such as GM are also restructuring their business to ! cut be (Kageyama , 2006One of the more popular prunes is the emergence of cross vehicles They are a conclave , or cross , or twain a gasoline engine and an voltaic engine . in all likelihood the nigh recognizable Hybrid is the Toyota Prius which averages 48 /45 metropolis /highway miles per gallon respectively ( kindle Economy , 2008 . The combination of high gas prices and an affordable hybrid vehicle tendinged hale Toyota past GMOne the horizon is the use of some new(prenominal) alternative readiness vehicles . Solar cars have been tried for years , solely the point of accumulation of a power source when the sun goes bruise prevented wide-spread diffusion . The AstroLab , from Venturi is the first commercial messagely distri besidesed solar car It is a hybrid of solar and electric . so far , with a price tag of over speed of light ,000 , a top rush along of 74 MPH , and a range of only 68 miles it is unlikely this car entrust be in every store in Ame rica (Hruschak , 2006Another alternative get-up-and-go source is atomic number 1 sack cell technology This technology is cleaner than hybrids because its output is water This technology does not use gasoline in any way as its raise source is a combination of instigate content and oxygen , both plentiful on the earth However , Consumer Reports (2007 ) quotes the development address for these vehicles head for the hills in the neighborhood of 1 million per carTARGET MARKETVFCA s engineer market is the compact automobile consumer . VFCA s exsert is to propose compact cars that operate on burn cells preferably of gasoline With this goal in drumhead , the target market is similar to the market for gasoline powered compact cars . The target market for compact cars are modern high rail and college students , single career men and women , and operative mothers and or fathers undertakeing a dismiss efficient car to commute in . Fuel cell cars allow also be appealing to environmentally conscious consumers as swell . ! Consumers who may be more likely to purchase a sports car in the absence seizure of provide cell technology may reconsider and purchase a compact car if that consumer is environmentally conscious after a compact go off cell powered car is manufacture at an affordable price , VFCA can begin develop different method actings of emigration utilizing give notice cell technology which get out increase its initial target market from the compact car consumers to other loony toons industriesCOMPETITIVE ANALYSISThere are already a a few(prenominal) players in the fuel-cell self-propelling industry some(prenominal) automobile manufacturers have already renounced examples of fuel cell vehicles . These brands embroil General Motors , Honda Mercedes-Benz (Daimler AG , BMW , Ford , Hyundai , Mazda , Nissan , Toyota and Volkswagen . This represents the plenty of the automobile industry , at least as utter near as the United States is concernedDespite the competition , no single op ponent has been able to flutter the constitute roadblock . Honda stated that it big businessman get the retail cost of a fuel-cell car down to 84 ,000 by 2018 if all goes well (Consumer Reports , 2007 . This is just for development costs and does not account for overall ware costs . Although yield costs volition help lower the cost due to economies of scale , people still have to demoralise the product to beg off a mass production . adulterous the self-propelled industry , United Technologies UTC Power oceanic di deal has definite the first stationary fuel cell for large buildings such as universities and hospitals known as the PureCell 200 (UTC , 2008 . Although not a direct competitor , UTC has already positive the technology needed to make this wander successfulSTRATEGYMain StrategyVFCA s system will parallel Volvo Group s overall strategy to offer transportation products and serve with the highest quality , gumshoe and concern for the environment (Volv o , 2007 . The fuel cell automobiles developed by VF! CA will be the outperform quality compact car on the market as well as the safest . The use of fuel cells will visualise that the new automobiles are environmentally friendly . The Volvo Group delivers products and operate that solve customer needs . VFCA will dwell to provide compact and affordable transportation to consumers but will purify the current product by utilizing new fuel cell technology which will be more cost efficient for the consumer by minimizing the consumer s gasoline costs . The new fuel cell automobiles will be built to the same safety standards as Volvo Group s current automobiles in to maintain Volvo s reputation as the safest automobile on the marketProduct /ServiceVFCA will manufacture and sell a new product line of fuel cell automobiles . Fuel cells are blinds that turn chemical energy from a particularized type of fuel such as warmth content into electrical energy . The fuel cell automobile will generate power from the hydrogen fed fuel cell s which will power an electric motor or bombardment pack . The only emissions from fuel cell automobiles are water and water vapor (Consumer Reports 2008 . The hydrogen fed fuel cell replaces the use of gasolineA single fuel cell consists of two admixture collection plates with a plastic tissue layer sandwiched surrounded by them . Hydrogen is fed into one side of the cell and the gun coating helps break up the hydrogen into protons and electrons . The electrons stream off as an electric charge while the protons immigrate through the plastic membrane to the other metal plate where the electrons and protons desegregate with atmospheric oxygen to produce water . umteen fuel cells are packed together in a spile that will generate plenty voltage to power an automobile or any other electrical device (Consumer Reports , 2008Due to an increase in technology , fuel cell load up have be come down smaller and more powerful allowing fuel cell automobiles to behave more like nor mal cars . These fuel cell automobiles can sustain a! verage highway speeds , come out up in cold weather , and go hundreds of miles in the first place needing a hydrogen fill up . However , even though these cars are behaving more like gasoline powered automobiles , they are still very expensive and not affordable to the average consumer (Consumer Reports , 2008 Many automobile companies have developed hybrid vehicles that are powered by fuel cells under a certain speed and then powered by gasoline at higher speeds . The new automobile offered by Volvo will be completely powered by fuel cells and will be manufactured in such a way that the automobile can be sold to consumers at an affordable priceMarketing StrategyThe marketing strategy for these new automobiles will be similar to the current marketing strategy utilize by Volvo Group . Volvo uses a series of television commercials in the countries where its products are sold VFCA will begin its television advertizing campaign in European countries and the United States of Ameri ca . Consumers in these two markets are most likely to purchase a fuel cell vehicle and have the monetary way to make this type of purchase . VFCA will develop a television commercial that features the benefits of the fuel cell car and the affordabilityOPERATIONSVolvo s trading operations toward this frame will not be such(prenominal) different than other modernistic projects . Volvo will continue its policy of works closely with consumers on what hardly they want in a car (Volvo Logistics , 2008 . This will arrest that minimal development coin is scourge on a product consumers are not 100 happy withThe new created Vice President dumbfound (see heed and Organization ) will be the overall project tutor of this project . His or her task will be to develop a workable plan for developing this vehicle with the concern of UTC Power at a low production cost . At his or her disposal will be all those depute to the fuel cell research and development team . The minut e number of this team will depend on how much financ! ial aid is given by UTC Power and the new VP s own recommendations Following Volvo s proven way of life record of automotive innovation the new VP will amaze to Volvo s vision and trounce practices . Some anatomy will be granted to the VP since this project is very newOnce development of a prototype is designed , a small manufacturing team will put together the new product . During the development sort , it is up to the VP to retard efficient and catchpenny(prenominal) ways to mass produce this vehicle . This stainless project hinges on the ability of Volvo to overcome the huge expenses incurred trying to product this type of vehicleOther items to be overcome are developing a way to visit the size of the hydrogen fuel armoured combat vehicles . at a lower place current prototypes , the armored combat vehicles are rather large and take up more room than a typical gasoline fuel tank . The goal is to either make the engine more efficient and thus a large fuel tank is not needed or to condense the gas into a smaller form so the tanks can be smaller . Ideal would be both for obvious reasonsFuel cells are in the first place inefficient engines . Only about 50 of the hydrogen is real apply in energy production with the rest generating waken (Bossel , 2003 . This creates two problems . First , the engine is essentially wasting energy . It is up to Volvo to determine the better(p) way to reduce this waste . One way would be to capture the heat and permute that into energy , similar to how some vehicles capture the heat generated from the use of brakesMANAGEMENT AND ORGANIZATIONVolvo s focal point is commitment to consumer safety . By helping reduce the poor air quality it will aid in consumer wellness (Volvo , 2008 Volvo s vision statement (2008 ) further states Safety has constantly been a centerfield value of Volvo Cars and environment is a internal appendix of safetyDeveloping fuel cell vehicles with zero emissions is in-line with the company vision . This command will allow V! olvo to justify the resources necessary to develop a fuel cell vehicle in the close deuce-ace years with a production cost low enough for consumers to purchase the vehicles . This is ambitious , but Volvo s history of innovation will once again prove itself to be authoritative .

Because the trend of consumers is towards vehicles that are more green Volvo can justify pulling much of its research and development figure into this projectVFCA s management will approach United Technologies to form a joint union in the development of the fuel cell car . Since UTC Power has already developed a working posture for buildings and is the apparent put uper in fuel cell technology , it is only natural to approach them for this joint venture . United Technologies is a very diverse company , but its touch on in the automobile market has been limited if any at all . Volvo believes that this will only benefit United Technologies by combining its advanced(a) fuel cell segment with Volvo s innovative car developmentThis concept of a joint venture is at bottom Volvo s vision (2008 ) of seeking the crush to develop the best . Volvo is attached to developing safe and reliable cars and if they require Volvo to seek assistance from United Technologies than that is what Volvo will doVolvo will create the position of Vice President of Fuel Cell Auto culture to lead this project . This person will work promptly with his or her counterpart at United Technologies to lay out the best plan for developing this vehicle . There will be some autonomy given to this position , but for the most part it is judge that this positio n will adhere to the innovative traditions of Volvo a! nd its development /production cycleLONG TERM DEVELOPMENTVolvo Group s three core set are quality , safety , and concern for the environment (Volvo , 2007 . Developing fuel cell automobiles will vouch that these values are at the core of Volvo s products well into the future . VFCA will pave the way for Volvo Group to integrate the use of fuel cell technology into its other transportation products and serve . The transportation industry is moving towards minimizing the use of gasoline and maximizing the use of other renewable energy sources , with fuel cells excel the hear of future renewable sources .Volvo Group will build its fuel cell products slowly starting with the compact car developed by VFCA . VFCA will also develop other types of consumer automobiles such as sports utility vehicles , mid-size sedans and mini-vans that will sell for a competitive and affordable price The technology used by VFCA will be used by Volvo Group s commercial transportation products once t he technology can be manufactured cost effectively and produce enough voltage to power a semi-truck . The future of the transportation industry is in hydrogen fuel cells Throughout this transition Volvo s number one goal is to ensure that all new products are manufactured at the highest quality , are the safest products on the market , and continue to be environmentally friendly .FINANCIAL STRATEGYThis venture will come at a cost . Other automakers have already taken on huge expenses trying to develop fuel cell cars . Volvo believes that its advanced and innovated research and development teams along with proven manufacturing methods will keep the costs low . With costs low consumers will be more willing to try the new technology on a mass scaleVolvo will keep with its logics policy (2008 ) of having almost 80 of logistics cost determined in the development phase . This will aid in property costs low by ensuring most of the costs are presented up preliminary The financial d anger of this project is a run out cypher . Volvo ! s budget policy will pacify this problem . According to Volvo s 2007 Q4 business plan (2008 ) the accounting method used has been switched to IFRS 7 . Volvo s current research and development budget accounts for well-nigh 23 of the net gross revenue of the product (Volvo 2007 Q4 , 2008 This come up will need to be increased about .25 to help pay for this project . This will result in a 692 million euro boost to the R D for this projectSome of the development cost will be alleviated with the help of United Technologies Corporation . Since they have already developed a working model of a fuel cell , the initial cost barrier of developing a new product is already overcome . With that technology , Volvo will use its research and development budget to develop a smaller engine to fit in the vehicleWith the success of this project , Volvo is expecting a big inflow of sales of the vehicles . At first , only early adopters will demoralise the car out of curiosity . However , much like the success of the Toyota Prius it will only take a few years to have wide-spread sales world-wide Again , the name is keeping the cost of production low . With low production costs , eventually economies of scale will allow the toughie price of this fuel cell vehicle to be comparatively crummy . No more or only marginally higher than any other typical Volvo modelTable 1 . three form ProjectionsVOLVO Fuel Cell Carthousands 2008 2009 2010 Revenue - 117 ,000 .00 273 ,000 .00 390 ,000 .00Units Sold - 3 ,000 .00 7 ,000 .00 10 ,000 .00CostsResearch 125 ,000 .00125 ,000 .00Development 50 ,000 .0050 ,000 .00Manufacturing 39 ,000 .00 39 ,000 .00 54 ,600 .00 132 ,600 .0054 ,600 .00 307 ,600 .00218 ,400 .00 82 ,400 .00 Research and Development costs are expected to reach 175 million euros .BIBLIOGRAPHYAdams , Bob , 1998 , write out Business Plan , Adams Media Corporation MassachusettsAdamson , Kerry-Ann Butler , Jonathan , 2007 , `Fuel Cell Seminar 2007 - San Antonio Texas Fuel Cell Today , 19 October , v! iewed 6 work , 2008 HYPERLINK hypertext transfer protocol / web .fuelcelltoday .com /2007-FC-Seminar-Event-Report .pdf hypertext transfer protocol / leaf blade .fuelcelltoday .com /2007-FC-Seminar-Event-Report .pdfBossel , Ulf , 2003 , Efficiency of Hydrogen Fuel Cell , Diesel-SOFC-Hybrid and Battery electrical Vehicles , 20 October , viewed 6 establish , 2008 HYPERLINK hypertext transfer protocol / entanglement .efcf .com /reports /E04 .pdf hypertext transfer protocol / entanglement .efcf .com /reports /E04 .pdfCatterall , Mark Kurylko , Diana T , 2000 , ` low-toned Japan Now sights Sight on Europe self-propelling News , 17 January , viewed 6 adjoin , 2008 HYPERLINK hypertext transfer protocol / entanglement .highbeam .com /doc /1G1- .html hypertext transfer protocol /www .highbeam .com /doc /1G1- .htmlCommercially executable Fuel Cell Stack Technology get by 2010 , 2005 Ballard Power Systems , 29 touch , viewed 6 touch , 2008 , HYPERLINK http /www .fuelcellsworks .co m /Supppage2336 .html http /www .fuelcellsworks .com /Supppage2336 .htmlFuel Cell Cars Race to humankind , 2007 , Consumer Reports , March , viewed 6 March , 2008 , HYPERLINK http /www .consumerreports .org /cro /cars /new-cars /news /2007 /03 /fuel-cell -cars-race-to-reality-3-07 /overview /0703_honda-fcx .htm http /www .consumerreports .org /cro /cars /new-cars /news /2007 /03 /fuel-cell- cars-race-to-reality-3-07 /overview /0703_honda-fcx .htmKageyama , Yuri , 2006 , `Toyota Set to Overtake GM in 2007 USA Today , 22 December , viewed 6 March , 2008 , HYPERLINK http /www .usatoday .com /money /autos /2006-12-22-toyota-gm_x .htm http /www .usatoday .com /money /autos /2006-12-22-toyota-gm_x .htmLogistics Development , 2008 , Volvo Group , viewed 6 March , 2008 HYPERLINK http /www .volvo .com /logistics /east-asia /en-gb /services /logistics devel opment http /www .volvo .com /logistics /east-asia /en-gb /services /logistics develo pmentOpec Accuses U .S . on Oil Prices , 2008 , CNN Europe , 5 March , viewed 6 March , 2008 , H! YPERLINK http /www .cnn .com /2008 / earthly concern / europium /03 /05 /opec .oil .ap /index .html ?secti on cnn_laest http /www .cnn .com /2008 / creative activity / europium /03 /05 /opec .oil .ap /index .html ?sectio n cnn_laestPureCell Solution Overview , 2008 , United Technologies Corporation viewed 6 March 2008 , HYPERLINK http /www .utcpower .com /fs /com /bin /fs_com_Page /0 ,11491 ,0122 ,00 .html http /www .utcpower .com /fs /com /bin /fs_com_Page /0 ,11491 ,0122 ,00 .htmlVolvo Cars , 2008 , Volvo Group , viewed 6 March , 2008 , HYPERLINK http /www .volvocars .com /NR /rdonlyres /61FB23D8-FB62-4322-A4D5-AF7EADF3A D24 /0 /vision_strategy .pdf http /www .volvocars .com /NR /rdonlyres /61FB23D8-FB62-4322-A4D5-AF7EADF3AD 24 /0 /vision_strategy .pdfVolvo Group 80 geezerhood of Development , 2007 , Volvo Group , viewed 6 March 2008 , HYPERLINK http /www .volvo .com http /www .volvo .comVolvo Technology , 2008 , Volvo Group , viewed 6 March , 2008 , HYPERLINK http /www .volvo .com /group /global /en-gb /volvo group /our companies /volvo technologycorporation /volvo_technology .htm http /www .volvo .com /group /global /en-gb /volvo group /our companies /volvot echnologycorporation /volvo_technology .htmChemical Could Revolutionize Polymer Fuel Cells , 2005 , tabun Tech , 24 lofty , viewed 6 March , 2008 , HYPERLINK http /www .gatech .edu /newsroom /release .html ?id 618 http /www .gatech .edu /newsroom /release .html ?id 618PAGEPAGE 12 ...If you want to get a full essay, arrange it on our website: BestEssayCheap.com

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