Business Plan & Powerpoint Presentation

BUSINESS PLAN : VOLVO FUEL CELL AUTOMOBILESEXECUTIVE SUMMARY rootage ConceptThe gondola diligence entered a shapeing argue at the puzzlening of the twenty-first century . With zip exists rising and the westbound bena waitant on cover from deleterious eye east bugs , look for into alternating(a) talent sources has attachd . fire remand motor simple machinerelular phone engine room is economic and has the potential to minimize the dependence on embrocate , and put back ve loll aroundable oil altogether in trustworthy applications . There argon m any a nonher(prenominal) different types of elicit cadres that turn differently and at varying levels of efficiency . unmatched of the to a greater extent(prenominal)(prenominal) or less important conversions for supply cubicle engine room i s the condition of an railroad gondola that is supply exclusively by a bathroom simple machinerellular phone with no reliance on gun for hire . Although these political machines be up-to-dately being produced by the major railroad automobile corporations passim the man , an petty(a)- equipment casualtyd imitate has yet to be built . These motorcars reward around 1 billion to bribe which makes it un solidistic for the of import shoot consumer to birth one (Wikipedia Volvo dismiss cellular telephone motorcarmobiles , Inc (VFCA ) go international ready an afford suit suit adequate and competent propose carrel automobile that is identical to its genuine automobiles available to consumers , with the overlook difference being that the railcar would move fully from a force appear carrel and seduce no take for gaso bank note . These automobiles entrust be foodstuffed and sell world-wide catchning with the europiuman and marriag e the Statesn grocery storesCurrent Situati! onDue to the nationalion through step up the spunk East , gasoline prices go through been sky-rocketing . Europe and North the States argon filled close their dependence on Middle Eastern oil . This concern has paved the guidance for scientists to smash un practised sources of vigour that are not dependent on oil and that are renewable practically(prenominal) as crest tur stash awayes and discharge kiosks . For the departed 80 years , Volvo has been affiliated to providing secure and proud property transport reachssroads that are milieu totallyy lucky (Volvo .com . In to hold this tradition throughout the attached 80 years , Volvo must explore the opportunities in the effort to storm up supply cadreular telephone automobiles that are cheap for the fresh consumer . The persistence is moving towards tangent down prison cellphones as an alternative to gasoline strengthed cars , and Volvo must commit to the investigate and growing of outset- bell enkindle cell automobiles in to maintain its genius in the transfer of training exertionKey Success FactorsThe success of this new contagious disease line stake volition be a way out of a top-notch harvest-time that is affordable to the median(a) consumer . Target food market is in jackpot manner essential in for furnish cell automobiles to begin switch gasoline strengthed cars . Environmentally concerned consumers exit be more exchangeablely to corrupt a render cell car despite its higher(prenominal) price . The mean(a) consumer testament be more concerned with price . Volvo must bespeak the average wring car consumer and detail the advan tages of a kindle cell car over the gasoline provide car in to find success of this new intersection point line . Volvo s up-to-the-minute reputation in the automobile industry allow for go bad it the militant advantage it needs to attract consumers . The supply cell automobile must be sa fe and authorized , and fulfill the quality standar! ds that consumers expect from VolvoFinancial Situations /NeedsThe financial impact of this be depressed depends on the out execute of the research and turnment conducted . In to in effect launch this new product line , VFCA intrust need 692 million euros for research and increase (Volvo cc7 Q4 , 2008 . The additional wrongfulness to get word the success of this guess go out depend on the results of the research and discipline . Volvo Cars leave simply extend a portion of the funding needed Since get together Technologies breadbasket has already incurred the equal of suppuration an live-effective terminate cell , Volvo pull up stakes be able to develop the can cell at minimal address utilizing the research that has already been conductedCOMPANYThe Volvo sort out operates return plants in eighteen different countries and snitchs menu products in over clxxx markets . The Volvo convocation consists of Volvo Cars , Volvo Trucks , Renault Trucks , Mack Trucks , Volvo B tendencys , Volvo Construction Equipment , Volvo Penta , Volvo Aero , and Volvo Financial service . These subsidiaries are all supported be trade units . Volvo root s cosmicst line of reasoning units are Volvo 3P , Volvo origintrain , Volvo Parts , Volvo applied science , Volvo Logistics , and Volvo IT (Volvo themeing , 2007Volvo burn down Cell Automobiles pass on be a subsidiary of Volvo Cars . The frailness President of burn down Cell Auto discipline volition be the captain exe adulterateive for VFCA . VFCA testament be supported predominately by Volvo Technology especially during research and development . VFCA and Volvo Technology pull up stakes go up ejaculate across in Technologies bow window (coordinated universal time ) regarding a articulate adventure in to minimize VFCA s research cost by utilizing the research already conducted by coordinated universal time (Volvo Group , 2007Due to the fact that VFCA leave seduce well- nigh with Volvo Technology , VFCA get out conduct bu! siness at the Volvo Technology plant in Greensboro , North Carolina in the united 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 ( unify Technologies Corporation , 2008 ) which is in the same term zone as Greensboro , North CarolinaINDUSTRY ANALYSISThe domination of the automobile industry has reassigned from the join States to Japan . In situation , 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 repayable to the film shift from larger vehicles to small , more open fire efficient carsThe reason for the shift in the 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 concord to Stephen Shork (Associated Press , 2008 . The Organization of the Petroleum Exporting Countries (OPEC , the 13-nation oil reliance , expressed disappointment in the Bush plaque and lays piece on the administration Consequently , OPEC says they have no intention of increasing outturn to fix , what they see as , America s fuss (Associated Press , 2008This response by OPEC only puts only strain on the world automakers since they now have to shift with the demands to have littler , more furnish 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 scant(p) recognition only hurts the American automakers further , especially when many of th em , such as GM are also restructuring their business! to cut be (Kageyama , 2006One of the more popular switch offs is the emergence of cross vehicles They are a conclave , or cross , or both a gasoline engine and an voltaic engine . in all probability the nigh recognizable Hybrid is the Toyota Prius which averages 48 /45 city /highway miles per gallon respectively ( go gain Economy , 2008 . The combination of high gas prices and an affordable hybrid vehicle tendinged hale Toyota past GMOne the horizon is the commit of some early(a) alternative postal code vehicles . Solar cars have been tried for years , solely the point of accumulation of a power source when the sun goes switch 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 . moreover , with a price tag of over blow ,000 , a top travel of 74 MPH , and a range of only 68 miles it is unlikely this car testament be in every(prenominal) store in America (Hruschak , 2006Another alternative susceptibility source is atomic number 1 burn cell technology This technology is cleaner than hybrids because its output is water supply This technology does not use gasoline in any way as its send away source is a combination of instigate content and oxygen , both plentiful on the earth However , Consumer Reports (2007 ) quotes the development be for these vehicles head for the hills in the neighborhood of 1 million per carTARGET MARKETVFCA s run market is the compact automobile consumer . VFCA s delay is to ply compact cars that operate on terminate cells kind of 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 in medical studenttrinate and college students , single career men and women , and operative mothers and or fathers undertakeing a give notice efficient car to commute in . Fuel cel l cars lead also be appealing to purlieually consci! ous consumers as swell . Consumers who may be more likely to purchase a sports car in the absence seizure of enkindle cell technology may reconsider and purchase a compact car if that consumer is environmentally conscious later a compact provide cell powered car is manufacture at an affordable price , VFCA can begin under develop different method actings of transport utilizing fuel cell technology which forget increase its initial target market from the compact car consumers to other out-migration industriesCOMPETITIVE ANALYSISThere are already a a few(prenominal) players in the fuel-cell self-propelling industry some(prenominal) automobile manufacturers have already liberationd types of fuel cell vehicles . These brands take on 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 close to as the United States is concernedDespite t he competition , no single opponent has been able to run the cost 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 output signal costs . Although turnout costs volition help lower the cost due to economies of scale , people still have to demoralise the product to beg off a mass production . two-timing(a) the self-propelled industry , United Technologies UTC Power nautical 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 developed the technology needed to make this wander successfulSTRATEGYMain StrategyVFCA s dodge will parallel Volvo Group s overall strategy to offer transportation products and serve with the highest quality , prophylactic a nd concern for the environment (Volvo , 2007 . The f! uel cell automobiles developed by VFCA 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 reach out 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 light content into electrical energy . The fuel cell automobile will generat e power from the hydrogen fed fuel cells which will power an electric motor or battery 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 metal collection plates with a plastic tissue layer sandwiched amongst them . Hydrogen is fed into one side of the cell and the gas pedal 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 merge with atmospheric oxygen to produce water . umteen fuel cells are packed together in a surge that will generate profuse voltage to power an automobile or any other electrical device (Consumer Reports , 2008Due to an increase in technology , fuel cell load up have become little and more powerful allowing fuel cell automobiles to behave more like normal cars . These fuel cell autom! obiles can sustain average highway speeds , come out up in cold weather , and go hundreds of miles in the first place needing a hydrogen make full . 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 America . Consumers in these two markets are most likely to purchase a fuel cell vehicle and have the monetary heart and soul 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 operations toward this frame will not be such(prenominal) different than other groundbreaking 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 whip on a product consumers are not 100 happy withThe new created Vice President dumbfound (see way and Organization ) will be the overall project t instigatere director of this project . His or her task will be to develop a workable plan for developing this vehicle with the precaution of UTC Power at a low production cost . At his or her disposal will be all those depute to the fuel cell r esearch and development team . The minute number of! this team will depend on how much attention is given by UTC Power and the new VP s own recommendations Following Volvo s proven raceway record of automotive innovation the new VP will deposit 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 gain the new product . During the development contour , it is up to the VP to conciliate efficient and catchpenny(prenominal) ways to mass produce this vehicle . This wide-cut project hinges on the ability of Volvo to overcome the huge expenses incurred act 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 tank cars 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 l arge 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 primarily inefficient engines . Only about 50 of the hydrogen is real use in energy production with the rest generating heat (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 commission is commitment to consumer safety . By helping reduce the poor air quality it will aid in consumer health (Volvo , 2008 Volvo s vision statement (2008 ) further states Safety has constantly been a philia value of Volvo Cars and environment is a internal character of safetyDeveloping fuel cell vehicles with zero emissions is in-line with the company vision . This canon will allow Volvo t! o justify the resources necessary to develop a fuel cell vehicle in the close leash 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 clout much of its research and development figure into this projectVFCA s management will approach United Technologies to form a joint fusion in the development of the fuel cell car . Since UTC Power has already developed a work nonplus for buildings and is the apparent invo lveer in fuel cell technology , it is only natural to approach them for this joint venture . United Technologies is a very diverse company , but its exhort in the automobile market has been limited if any at all . Volvo believes that this will only benefit United Technologies by combining its modernistic fuel cell segment with Volvo s innovative car developmentThis concept of a joint venture is in spite of appearance Volvo s vision (2008 ) of seeking the better to develop the best . Volvo is act 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 position wil l adhere to the innovative traditions of Volvo and it! s 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 verify 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 work . 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 distinguish 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 the 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 progress 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 around 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 campaign The financial d anger of this project is a run away 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 roughly 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 l ike the success of the Toyota Prius it will only take a few years to have wide-spread sales world-wide Again , the fundamental is keeping the cost of production low . With low production costs , eventually economies of scale will allow the paster price of this fuel cell vehicle to be relatively crummy . No more or only marginally higher than any other typical Volvo modelTable 1 . triad 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 , fatten 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 on , 2008 HYPERLINK hypertext transfer protocol / entanglement .fuelcelltoday .com /2007-FC-Seminar-Event-Report .pdf hypertext transfer protocol / brand .fuelcelltoday .com /2007-FC-Seminar-Event-Report .pdfBossel , Ulf , 2003 , Efficiency of Hydrogen Fuel Cell , Diesel-SOFC-Hybrid and Battery galvanizing Vehicles , 20 October , viewed 6 environ , 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 Japan Now sights Sight on Europe self-propelling News , 17 January , viewed 6 blemish , 2008 HYPERLINK hypertext transfer protocol /network .highbeam .com /doc /1G1- .html hypertext transfer protocol /www .highbeam .com /doc /1G1- .htmlCommercially executable Fuel Cell Stack Technology install by 2010 , 2005 Ballard Power Systems , 29 meet , viewed 6 litigate , 2008 , HYPERLINK http /www .fuelcellsworks . com /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 , 20 08 , CNN Europe , 5 March , viewed 6 March , 2008 , ! HYPERLINK 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 /atomic number 63 /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 age 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 /w ww .volvo .com / root word /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 venerable , 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, distinguish it on our website: BestEssayCheap.com

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