Outline
This opportunity assessment is about the potential opportunities in the field of remanufacturing the laser toner industry in the USA. In this course work of Opportunity Assessment (OPASS), the analysis of remanufactured laser toners is done. The above-said industry is expected to create a number of job opportunities by 2010.
In the USA, the Government is planning to generate new employment opportunities for the citizens through innovative ideas in the industrial field.
Under these circumstances, it is better to undertake an OPASS over the possibilities of the laser toner remanufacturing for generating profitability and employment opportunities. In this study, the potential strength and weaknesses of the new innovative idea are analyzed by applying the SWOT analysis model. The industrial entrepreneurship decision matrix model is applied for making the strategic choices for the project. A PowerPoint presentation is developed to present the major points involved in the project.
Introduction
In the USA, the Government is committed to generating new employment opportunities for the citizens through innovative ideas in the industrial field. In these circumstances, it is better to undertake an OPASS over the possibilities of the laser toner remanufacturing for generating profitability and employment opportunities. The Government is planning to create 2.5 million job opportunities by 2010 by way of industrial expansion. It requires expansion and overall development of different industries. In this OPASS, the possibilities in the industrial entrepreneurship of laser toner remanufacturing are analyzed by applying SWOT analysis and a decision matrix model. It is helpful for identifying the feasibility of the project in economic terms.
Laser toner cartridges and their remanufacturing
Cartridges are an essential part of printers. Without a cartridge, the process of printing cannot be done. Laser toner cartridges are used in laser printers. The cartridges are filled with toners. Toners are used in the cartridges to produce the effect of printing on the papers. That is, the cartridges are designed to carry toners. When it prints so many papers, the cartridges will be running out of toners. That is, the cartridges will become empty. Once the cartridges become empty, they can be filled with additional toners. That is, it is not necessary to replace the cartridges. This process is referred to as remanufacturing of laser toner cartridges. (Remanufactured toner cartridges, 2008).
Cartridges are an inevitable part of printers. Without a cartridge, printing cannot be done. Laser toner cartridges are used in laser printers. The cartridges are filled with toners which is the thing that produces the effect of printing on the papers. That is, the cartridges are designed to carry toners. Once the cartridges become empty, they can be filled with additional toners. That is, it is not necessary to replace the cartridges. This process is called remanufacturing of laser toner cartridges.
Development of Opportunity Statement that identifies and articulates the need to be addressed and/or problem(s) to be solved
Problem/Opportunity statement
If there is an opportunity, there will be some problems that are to be overcome. It is not possible to simply convert the opportunities into successful projects or entrepreneurship. Solving these problems and converting the opportunities available into successful ideas requires a clear definition of the problems and a drawing of the problem or opportunity statement. For that, an opportunity statement has to be prepared. A problem statement is one that explains the problem, the reasons for problems, and the solutions for the problems. (Center for program evaluation and performance measurement, (n.d)).
A statement on the basis of the problems to be addressed and the opportunities available is given below: Though the remanufactured toners offer high-quality like-new cartridges, in some cases, it fails when competing with the new cartridges. (Buying remanufactured toner cartridges isn’t worth it, 2008).
This problem has to be overcome by effectively implementing change in the business and operation plan.
An analysis and evaluation of the internal resources and capabilities available to the organization
Internal resources of the organization
- Technology: Advanced technology is developed by the research and development department of the organization in the field of laser toner remanufacturing. Through the adoption of this technology, the processing of the used laser toner with improved quality can be done at a minimized cost. The remanufacturing process is capable of ensuring product standardization at a higher level. The quality of printouts can be highly improved through the application of remanufactured toners.
- Human resource: The availability of human capital for the implementation of the project is of an adequate level in the nation. The organization can procure efficient and adequate human resources for the implementation of the project timely and strategically.
- Capital: The organization is capable of procuring the necessary financial resources for the development of the project. Potential opportunities for generating higher profitability will help procure additional financial resources on economic and easier terms.
- Infrastructural resources: The organization possesses adequate infrastructural facilities for the establishment of the remanufacturing plant. Availability of other infrastructural resources can also be ensured by the organization.
An analysis and evaluation of the external environment, including the state of the industry and market conditions, and customer profile
State of the industry: The laser toner industry in the USA holds high potential for generating a higher return for the companies in the industry. The cost of production of new laser toner is huge, and thus, the pricing is also higher. The remanufacturing process involves only limited cost, and thus discount pricing can be adopted by the remanufactures for their product. The remanufacturing processes have greater potential for accessing market share and industrial growth. The remanufacturing of the used laser toners is profitably carried out by prominent players in the industry.
Market conditions: The laser toner industry is showing high profitability and market growth. Business firms ensuring adequate quality at economical pricing become the market leaders. In these circumstances, it is essential for the new organization to develop trust among the customers about the quality and product efficiency in meeting their requirements. The quality of the product should compete with the newer ones as it will help to attract a larger customer base. The pricing of the product is another factor that determines market leadership.
Customer profile: In the laser toner industry, customer choice is an important factor that determines the success of the project. Customers are always looking for cheaper products with adequate quality standards. Customers in the industry will be benefited from the quality of the recycled laser toners. The replacement of the key components with better quality ones provides good value to the customers as it is cheaper than the newer ones.
Remanufactured laser toner will be subjected to cleaning and replacement, and thus its quality and safety are ensured. It generates only a small percentage of waste compared to the newer production process, and thus it is an environmentally friendly product. The cost of the remanufactured toner will be lower than the newer ones, whereas the quality is of a higher standard. Thus the remanufactured product provides benefits to the customers as well as the society. Quality printing at lower pricing will increase the customer base for the remanufactured product. It will get higher acceptability within the society as it contributes to serving the earth’s resources. “Recycling toner cartridges not only help save money, but you will often have more ink put in the toner, as not all original cartridges are fully filled, and also you will help in reducing garbage and save the Earths resources.” (Remanufactured toner cartridges, 2008).
A situation analysis that includes an evaluation of the strengths, weaknesses, opportunities, and threats
SWOT Analysis
SWOT analysis is “a tool that identifies the Strengths, Weaknesses, Opportunities, and Threats of an organization. Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats.” (SWOT analysis, 2008). SWOT means strength, weaknesses, opportunities, and threats. Environmental factors are of two types. They are internal factors and external factors. Strength and weakness are internal to the organization, while opportunities and threats are external to the organization. The organization’s strengths are its materials and capabilities. A weakness is the lack of raw materials. The SWOT analysis of the new venture is given below.
Strengths
The company is directed and controlled by an efficient and talented entrepreneur. Cheaper resources for production can be ensured by the company as it has access to cheap and high-quality cartridges and toners. The availability of adequate financial resources at economical rates is another advantage. Availability of credit facilities from suppliers will help to ensure financial liquidity. The return policies of the company are competitive in the industry. An online marketing facility is also available to the company. Thus the benefits of e-commerce are ensured for the company. The company is able to make changes in its policies and operational strategies in response to changes in the external environment. The online marketing facility avoids the requirement of costly market centers. 24 X 7 facility for ordering is added strength of the company.
Weaknesses
The entrepreneur’s lack of adequate experience in the new business is a major weakness for the company. Adoption of external resources for additional financial requirements is a problem as it requires paying high rates of interest. The absence of its own delivery system for the company is another problem as the services of couriers, and other delivery services would require higher costs. Lack of experience of the staff may cause problems in customer service and handling.
Opportunities
The higher cost of the newer toner and cartridges would force customers to adopt the cheaper and quality remanufactured toners. There is a high demand for refilled and remanufactured cartridges and toners due to comparatively lower costs when compared to branded ones. The online business transaction would be profitable as it involves lesser operating costs and, at the same time, ensures a larger customer base. The existence of similar online ventures doing the same line of business will help to create awareness among the customers.
Threats
Increasing competition in the remanufacturing toner industry is a major threat to the new business. The business is fully dependent on the import of products, and thus the shortage in resources would result in the failure of the business. Any future statutory rules that restrict or prohibit imports can be problematic. There is a possibility that such statutes may come in an effort to boost the local US economy. Consumers may be suspicious about the quality of the refilled and remanufactured cartridges and toners. Due to a large number of brands and printer models, the inventory requirements are of large quantity. Proper storage facilities have to be made available because the replacement products require the right temperature. If not, the ink inside will dry out.
The formulation of business objectives to address the problem and/or opportunity(s)
Formulation of business objectives for the utilization of opportunity
In order to contribute to the aim of the US Government to create employment opportunities for 2.5 million in different industries by 2010, each industry has to frame its objectives. An industry comprises different firms. Therefore each firm in the industry has to design a business objective focusing on the above plan. Each firm in the industry has to draw a plan of business to be achieved in such a way that it ensures steady growth so that it can create a number of employment opportunities in the industry. In the case of the remanufactured toner industry, the manufacturing unit should take necessary steps to make the level of quality of remanufactured laser toners equal to the new one so that the business can be improved and growth ensured. This can contribute to the plan of the Government to create new employment opportunities in industries and the overall development of the industries.
Development of Milestone Planning Schedule linking key milestones with major objectives
Project Action plan
In the launching of a new business, an action plan is very critical. It will help to ensure the fulfillment of the function in a timely manner at optimum costs and maintain overall control.
- Milestone 1: Selection of the suitable production location and arrangements for building premises
- Milestone 2: Contracting with the suppliers for the resources and services
- Milestone 3: Develop the budget.
- Milestone 4: Adoption of marketing activities, including advertising campaigns.
- Milestone 5: Determining staffing requirements and conducting the staff recruitment process.
- Milestone 6: Launching of the business.
- Milestone 7: Expanding the customer base of the industry by contracting with international business partners.
Creation of an Entrepreneurial Strategy Matrix that assesses and creates a visual depiction of the innovation & risk tradeoff (s)
Entrepreneurial strategy matrix
The selection of the project is subjected to various risk and profitability analyses. In an entrepreneurial strategy matrix, the steps that have to be taken by the entrepreneur before the determination of operational policies and strategies are pointed out. In the laser toner remanufacturing business project, the following steps have to be taken by the entrepreneur before the project launching.
Analysis of the marketability of the new product.
Designing of the new product launching strategies.
Contracting with the supply chain managers for the logistics of resources.
Entering into insurance contracts for the risk tradeoffs.
Creation of an Entrepreneurial Strategy Multistage Contingency Matrix that presents strategic alternatives
The choice of the strategic alternative is important in any business. In the case of the remanufacturing of the laser toner, there are various alternatives available regarding the resource procurement process as well as the production process. The resource procurement can be conducted by contracting with Intermediary A, Intermediary B, or directly from the customers and businesses or from the dealership. Weights (Wt) will be given as 5, 4, 3, 2, and 1. The factor that has maximum relevance or impact will be given a weight of 5, moderate will be weighted three, and low impact will be weighted 1. The higher the score, the better will be the option. The figures in the bracket are the multiplied score that will be added to find the best option.
Multistage Contingency Matrix
Explanation of the matrix
The resource procurement for the remanufacturing process seems to be effortless as the disposal of cartridges and toners is an environmental issue irrespective of the supplier, and hence every alternative is given a low score. When taking the speed of delivery of resources, the direct way is more adaptable. In between the branded and unbranded products, not much difference can be seen. Thus the cost is more important here. The high cost of finance is a problem with the procurement of resources directly even though it is advantageous with regard to many other factors,
Strategy
It can be seen that the highest score is seen for the direct procurement of resources. Hence it is the best option, and the business can directly contract with the customers and businesses for the resource procurement.
Undertake primary and secondary research, including observations, technical, organizational, market, and socio-psychological
Technical feasibility
The adopted technology ensures a higher-level standard for the remanufactured product. It reduces the cost of the remanufacturing process. It is adaptable for the new business as it ensures efficient performance results.
Organizational capability
Remanufacturing of laser toner is a new innovation in the laser toner industry. The reusing and refilling of laser toner will have the potential to enter the industry. Used laser tones are collected from the customers and business firms, and it is then passed to the remanufacturing industry. The laser toners are separated and cleaned. After that, essential replacement parts are added to this. High-quality toner is added to this to improve the quality, and then it is passed to the testing department. After ensuring the quality, the packaging is applied to it and then passed to the distribution department.
Remanufactured laser toners involve high-quality component parts, and thus excellent printing results are ensured. Focusing on the improved quality excellence of the remanufactured laser printers in its promotion activities will create demand for the product in the market. By developing trust among the customers towards the reliability and quality of the remanufactured laser toners, the company can ensure high profitability through a loyal customer base.
Market opportunities
The laser toner remanufacturing industry acquires its resources from the consumers and businesses which are using the laser toners, and then it is sorted according to their features and quality. Toner powder form is used in laser printers, and liquid ink is for inkjet printers. The quality standards of remanufactured toners are at a higher level because, in the remanufacturing process, components ensure excellent printing results only used by the companies. Due to this feature, more than 30 million companies around the world adopt these remanufactured products for their business needs. The quality and reliability of the remanufactured toners should attract a larger customer base.
Socio-Psychological issues
The printing of materials or documents has become an inevitable part of the daily life of even the common man, which means that there are regular requirements for printing documents and other materials both for organizations and individuals. The companies are interested in reducing the cost of business operation by implementing whatever possible measures. Remanufactured laser toners help the companies to reduce their cost as it is less expensive than a new cartridge.
The process of remanufacturing laser toners involves the refilling of the empty cartridges with new toners. The main benefit of the remanufactured toners is that it is less expensive than replacing them with a new cartridge. It can be used for most laser printers. Another advantage is that it is doing a favor to the environment in such a way that it is reducing the waste of the used cartridges, thereby reducing the environmental pollution. (Remanufactured toner cartridges, 2008).
It is now necessary to consider the relative cost benefits of employing remanufactured toners vis-à-vis new cartridges in order to generate revenues and support employment and economic activities in the community.
The cost analyses done on the purchasing of new cartridges and the remanufacturing of used laser toner cartridges reveal that the remanufacturing process has greater cost advantages.
From the above-discussed cost analysis, it is derived that the purchasing of different brands of cartridges for 5800 numbers requires the cost of $ 139000, whereas the same branded products in the same quantity can be remanufactured at the cost of $86312. Thus cost advantage for an amount of $ 52688.
In the recession period of the economy, this huge cost advantage is highly supportive to the industry for providing greater employment opportunities. The greater profit potential for the remanufacturing firms arising from cost advantages will motivate more entrepreneurs to start a business in the sector. Thus the employment opportunity in the industrial sector would be increased at a greater level. The refilling process is also having ecological benefits as it reduces the wastage resulting from the disposal of used cartridges. Normal laser toner has a life span of five years. Over five periods, if the printer lasts long, then the payment for laser toner will be even more. The marketing of remanufactured cartridges at a low cost with quality material will increase the demand, thus leading the remanufacturing laser tone industry to a successful project. This will help us in achieving the national objective of employment generation.
Moreover, other benefits also accrue in terms of environmental protection, the larger scale of economic activities, and greater use of materials, manpower, machine power, and other resources that would otherwise remain stagnant and unproductive.
Scope for laser toner remanufacturing business in the United States
As the printing requirements of the organizations and individuals are going on increasing day by day, there is a good chance for the laser toner remanufacturing business in the United States of America. The reason is that in the US, almost all the companies buy refilled toners from foreign countries, including China and third world countries, as it is cheaper to buy from these countries. If this facility is provided in the US itself at a cheaper, every customer will buy laser toner cartridges manufactured in the US itself. If the possibility of online business is made use of in this context, there is a very good chance of prosperous business.
Conclusion
The aim of the Government of the United States of America is to create job opportunities of around 2.5 million by the year 2010 by way of industrial expansion. To achieve this, the government or the industry has to face so many hindrances or obstacles. Here the required task is to expand the remanufactured laser toners industry in such a way that it can create a number of new employment opportunities. New employment opportunities are created when there is a very good growth rate in the business. The rapid increase in the sale of business necessitates the requirement of new employees.
There is a good chance for the remanufactured laser toners. The reason is that in this era of industrialization, most people lead a life with a good connection with the latest technology and advancement. The new company can profitably launch its business with greater profitability and market growth.
It will attract larger investment in the industry, and thus, employment opportunities in the country will be increased.
Reference
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