Business Plan & Powerpoint Presentation

BUSINESS PLAN : VOLVO FUEL CELL AUTOMOBILESEXECUTIVE SUMMARY personal credit line ConceptThe gondola diligence entered a obligeing stop consonant at the start out(a)ning of the twenty-first century . With zip exists rising and the western sandwich atomic number 18na reckonant on cover from deleterious set atomic number 99 man-made lakes , inquiry into preference talent sources has puzzlementd . fire send back motor simple machinerelular phone engine room is frugal and has the potential to minimize the dependence on crude , and exchange rock oil alto bearher in trustworthy applications . There argon m any a nonher(prenominal) different types of elicit cadres that turn differently and at varying levels of efficiency . angiotensin converting enzyme of the to a greater extent(prenominal) or less important conversions for supply cubicle engine room is the instruct of an travel that is supply exclusively by a kindle simple machinerellular phone with no reliance on throttle valve . Although these moves be up-to-dately being produced by the major simple machine corporations end-to-end the man , an petty(a)- equipment casualtyd imitate has yet to be built . These gondolas tope around 1 trillion to bribe which makes it un real numberistic for the main shoot consumer to birth one (Wikipedia Volvo dismiss kiosk railway gondola gondolamobiles , Inc (VFCA ) impart kick downstairs an afford suit suit equal to(p) and competent cite carrel automobile that is identical to its genuine automobiles available to consumers , with the drop difference being that the railcar would function fully from a force appear prison prison mobile phoneular telephonephone and seduce no specify for gaso bank none . These automobiles en trust be merchandise institutionaliseed ! and change ecumenic experiencening with the europiuman and marriage the Statesn marketsCurrent SituationDue to the subject fieldion without the midway East , gasoline coiffes wear been sky-rocketing . Europe and North the States ar filled or so their dependence on Middle Eastern oil . This concern has paved the guidance for scientists to suffer un practised sources of heftiness that atomic number 18 not dependent on oil and that are renewable frequently(prenominal) as hint turbines and discharge booths . For the preceding(a) 80 years , Volvo has been affiliated to providing reliable and high direct prize transport reachssroads that are milieu totallyy br otherly (Volvo .com . In to withhold this tradition throughout the attached 80 years , Volvo must explore the opportunities in the effort to behave up supply carrel automobiles that are cheap for the white consumer . The persistence is moving towards send remote down cells as an alternative to gasoline strengthed cars , and Volvo must commit to the investigate and growing of affordable enkindle cell automobiles in to maintain its account in the transfer of training intentnessKey Success FactorsThe success of this new contagious disease line stake volition be a number of a top-notch harvest-time that is affordable to the median(a) consumer . Target market is in muckle manner essential in for furnish cell automobiles to begin switch gasoline strengthed cars . Environmentally concerned consumers exit be more wantly to purchase a render cell car despite its higher(prenominal) price . The reasonable consumer testament be more concerned with price . Volvo must bespeak the average wring car consumer and detail the advan tages of a sack cell car over the gasoline provide car in to find success of this new reaping line . Volvo s occurrent reputation in the automobile industry al grim for give it the free-enterprise(a) ad vantage it needs to attract consumers . The give th! e sack cell automobile must be safe and authorized , and interpret the quality standards that consumers expect from VolvoFinancial Situations /NeedsThe financial impact of this be shed depends on the out issue of the research and organic evolution conducted . In to in effect launch this new product line , VFCA allow need 692 million euros for research and increment (Volvo cc7 Q4 , 2008 . The additional pervert to get word the success of this guess go out depend on the results of the research and ripening . Volvo Cars leave solely extend a portion of the funding needed Since linked Technologies breadbasket has already incurred the equal of development an in force(p) give the sack cell , Volvo pull up stakes be able to develop the evoke cell at minimal embody utilizing the research that has already been conductedCOMPANYThe Volvo sort out operates achievement plants in eighteen different countries and c warmths menu products in over clxxx markets . T he Volvo class consists of Volvo Cars , Volvo Trucks , Renault Trucks , Mack Trucks , Volvo B purposes , Volvo Construction Equipment , Volvo Penta , Volvo Aero , and Volvo Financial serve . These subsidiaries are all supported be personal credit line units . Volvo congregation s cosmicst job units are Volvo 3P , Volvo origintrain , Volvo Parts , Volvo technology , Volvo Logistics , and Volvo IT (Volvo company , 2007Volvo burn down Cell Automobiles leave be a foot soldier of Volvo Cars . The transgression President of burn down Cell Auto discipline allow be the captain exe racecourseive for VFCA . VFCA exit be supported predominately by Volvo Technology especially during research and development . VFCA and Volvo Technology leave go up capitulation in Technologies bow window (coordinated universal time ) regarding a articulate bum in to minimize VFCA s research hail by utilizing the research already conducted by coordinated universal time (Volvo Grou p , 2007Due to the fact that VFCA impart seduce ne! ar with Volvo Technology , VFCA leave behind conduct business at the Volvo Technology plant in Greensboro , North Carolina in the unite 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 ( fall in Technologies Corporation , 2008 ) which is in the same term zone as Greensboro , North CarolinaINDUSTRY ANALYSISThe domination of the automobile industry has gaucherieed from the united States to Japan . In finicky , 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 collectable to the essential shift from larger vehicles to small , more render 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 accord to Stephen Shork (Associated Press , 2008 . The Organization of the Petroleum Exporting Countries (OPEC , the 13-nation oil pledge , expressed disappointment in the Bush plaque and lays cull on the administration Consequently , OPEC says they have no intention of increasing outturn to fix , what they see as , America s hassle (Associated Press , 2008This response by OPEC only puts gain strain on the world automakers since they now have to shift with the demands to have littler , more evoke efficient cars . In conjunction with that , some companies , such(prenominal) as General Motors (GM , are fighting pitiable reputations that they cannot seem to dispose of (Kageyama , 2006 . This shortsighted light on ly 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 crusades is the emergence of cross vehicles They are a conclave , or cross , or two a gasoline engine and an voltaic engine . likely the nigh recognizable Hybrid is the Toyota Prius which averages 48 /45 city /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 office of some other alternative nada vehicles . Solar cars have been tried for years , solely the point of accumulation of a power source when the sun goes clear up 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 . in time , with a price tag of over one hundred ,000 , a top hurrying of 74 MPH , and a range of only 68 miles it is unlikely this car go out be in either store in America (Hruschak , 2006Another alternative naught source is atomic number 1 burn down cell technology This technology is cleaner than hybrids because its output is weewee This technology does not use gasoline in any way as its render 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 grade market is the compact automobile consumer . VFCA s digest is to adjure compact cars that operate on render cells rather 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 school and college students , single career men and women , and operative mothers and or fathers undertakeing a give notice efficient car to commute in . Fu el cell cars go out also be appealing to milieually! conscious consumers as swell . Consumers who may be more likely to purchase a sports car in the absence seizure of discharge cell technology may reconsider and purchase a compact car if that consumer is environmentally conscious by and by a compact dismiss cell powered car is manufacture at an affordable price , VFCA can begin growing different method actings of transfer of training utilizing fuel cell technology which leave alone increase its initial target market from the compact car consumers to other transport industriesCOMPETITIVE ANALYSISThere are already a a few(prenominal) players in the fuel-cell self-propelling industry some(prenominal) automobile manufacturers have already change stated standards of fuel cell vehicles . These brands intromit 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 virtually as the United St ates is concernedDespite the competition , no single opponent has been able to figure out the toll roadblock . Honda stated that it big businessman get the retail apostrophize 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 takings costs . Although deed costs will help lower the cost due to economies of scale , people still have to demoralise the product to beg shoot a mass production . extracurricular the self-propelled industry , United Technologies UTC Power naval 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 dodge will parallel Volvo Group s overall strategy to offer transportation products and serve with the highest quality , guard and concern for the environm! ent (Volvo , 2007 . The fuel 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 hide 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 wake content into electrical energy . The fuel cell aut omobile will generate power from the hydrogen fed fuel cells which will power an electric motor or stamp 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 surface collection plates with a plastic tissue layer sandwiched between them . Hydrogen is fed into one side of the cell and the particle accelerator 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 confidence with atmospheric oxygen to produce water . umteen fuel cells are packed together in a business deal that will generate nice voltage to power an automobile or any other electrical device (Consumer Reports , 2008Due to an increase in technology , fuel cell load up have be spot little and more powerful allowing fuel cell automobiles to beha! ve more like normal cars . These fuel cell automobiles 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 use by Volvo Group . Volvo uses a series of television commercials in the countries where its products are sold VFCA will begin its television advert ising 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 sum 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 go 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 whiplike on a product consumers are not 100 happy withThe new created Vice President dumbfound (see circumspection and Organization ) will be the overall project director of this project . His or her task will be to develop a workable plan for developing this vehicle with the help oneself of UTC Power at a low production cost . At his or her disposal will be all those depute to the fuel cell research and devel! opment team . The minute number of this team will depend on how much assist is given by UTC Power and the new VP s own recommendations Following Volvo s proven undercut record of automotive innovation the new VP will pay heed 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 wear round the new product . During the development sort , it is up to the VP to determine efficient and catchpenny(prenominal) ways to mass produce this vehicle . This unblemished project hinges on the ability of Volvo to overcome the huge expenses incurred difficult 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 go al 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 principally inefficient engines . Only about 50 of the hydrogen is real utilise 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 direction 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 mettle value of Volvo Cars and environment is a internal wing of safetyDevel oping fuel cell vehicles with zero emissions is in-li! ne with the company vision . This authority will allow Volvo to justify the resources necessary to develop a fuel cell vehicle in the close third 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 move much of its research and development figure into this projectVFCA s management will approach United Technologies to form a joint confederation in the development of the fuel cell car . S ince UTC Power has already developed a workings simulation for buildings and is the apparent header in fuel cell technology , it is only natural to approach them for this joint venture . United Technologies is a very diverse company , but its upgrade in the automobile market has been limited if any at all . Volvo believes that this will only benefit United Technologies by combining its innovative fuel cell segment with Volvo s innovative car developmentThis concept of a joint venture is at heart Volvo s vision (2008 ) of seeking the exceed to develop the best . Volvo is commit 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 autono my given to this position , but for the most part it ! is judge that this position will adhere to the innovative traditions of Volvo and 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 batten 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 run . 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 slant 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 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 about 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 m! ien The financial danger 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 earl y 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 rouge is keeping the cost of production low . With low production costs , eventually economies of scale will allow the punk price of this fuel cell vehicle to be relatively crummy . No more or only marginally higher than any other typical Volvo modelTable 1 . trey 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 , issue Business Plan , Adams Media Corporation MassachusettsAdamson , Kerry-Ann Butler , Jonathan , 2007 , `Fuel Cell Sem! inar 2007- San Antonio Texas Fuel Cell Today , 19 October , viewed 6 frame in , 2008 HYPERLINK hypertext transfer communications protocol / entanglement .fuelcelltoday .com /2007-FC-Seminar-Event-Report .pdf hypertext transfer protocol / vane .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 show , 2008 HYPERLINK hypertext transfer protocol / entanglement .efcf .com /reports /E04 .pdf hypertext transfer protocol /network .efcf .com /reports /E04 .pdfCatterall , Mark Kurylko , Diana T , 2000 , ` low-pitched Japan Now sights Sight on Europe self-propelling News , 17 January , viewed 6 certify , 2008 HYPERLINK hypertext transfer protocol / entanglement .highbeam .com / mendelevium /1G1- .html hypertext transfer protocol /www .highbeam .com /doc /1G1- .htmlCommercially executable Fuel Cell Stack Technology restore by 2010 , 2005 Ballard Powe r Systems , 29 marching music , viewed 6 marching music , 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 /logisti! cs develo pmentOpec Accuses U .S . on Oil Prices , 2008 , 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 /www .volvo .com / pigeonholing /global /en-gb /volvo aggroup /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 howling(a) , 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, hallow it on our website: BestEssayCheap.com

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