E-business Plan for Ecowaste Management Company

An E-business Plan
Presented to
the Faculty of the Ramon V. del Rosario College of Business
Decision Sciences and Innovation Department
De La Salle University - Manila

In Partial Fulfillment
of the Requirements for the Course
ECOMMER

Prepared by:
Ablaza, Rausette Kaye
Anwar. Mohamad Rizal
De Luna, Shary
Gullab. Aina
Juangco, Dan Angelo
Pagkalinawan, Bianca
Quisora, Keith
Velilla, Catherine

Submitted to:
Mr. Ernesto Bilar
 Table of Contents

Chapter 1: Company Background..4

1.1 Vision.5

1.2 Mission..5

1.3 Products/Services..6

Chapter 2: MarketPlace Analysis7

2.1 Customers..7

2.2 Competitors.12

2.3 Overview of Marketing and Sales Strategies..13

Chapter 3: Industry Analysis.14

Chapter 4: Marketing Plan16

4.1 Target Market..17

Chapter 5: Operational Plan..19

Chapter 6: Financial Plan..24

Chapter 7: Management Plan....25

Chapter 8: Issues Analysis and Critical Risks..27

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 8.1 Strengths.18

8.2 Weaknesses.18

8.3 Opportunities..20

8.4 Threats.20

Chapter 9: Exit Strategies..32

Chapter 10: Legal Forms of Organization....36

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 Chapter 1: Company Background

Ecowaste Management Co. (EMC), founded in 2005 by Mr. Nelson De Luna, is a

business whose main concern is focused on solid waste management. This company was formed

to cater to the garbage disposal needs of different manufacturing companies inside economic

zones and industrial parks, as well as establishments such as malls, stores, schools/universities,

offices, and post consumers. To name a few of its existing clients, Ecowaste Management Co.

provides its services to Philippine Airlines, Manila Doctors Hospital, Walter Mart Supermarket,

Innotor Phils. Inc., and many more. Its main operations are held in CALABARZON, Quezon

City, Pasig and Paranaque City. Its main Warehouse/ Material Recovery Facility (MRF) is

located in Binan, Laguna and the company has an additional branch in Quezon City.

Ecowaste Management Co. plays an important role in the preservation of the

environment, through constantly striving for and promoting the use of recyclable waste materials

in the most productive way possible. Fortunately, more people are starting to recognize the

significance of protecting our environment, which works as an advantage for the company. In

line with its environmental duties, Ecowaste concentrates on comprehensive environmental

issues and policies. Moreover, the company follows their Solid Waste Management Program,

which is composed of a number of implementation plans. Firstly, they seek to ensure a sanitary,

timely, and efficient hauling of waste materials. Next, it assists in the promotion of

environmental awareness to the public. Lastly, they intend to monitor these implementations and

provide additional long term implementations.

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1.1 Vision

To be an outstanding leader in the field of solid waste management that is ecologically

responsible in providing services with full commitment and integrity, and is able to support our

clients in managing a sustainable environment.

1.2 Mission

To continuously improve, develop and provide an integrated approach on Solid Waste

Management, in order to maintain a sustainable environment, through greater transparency and

accountability.

1.3 Products/Services

The scope of Ecowaste Management Companys services involves the proper solid waste

management process. The companys main operation largely entails caring for and maintaining

the environment through the proper disposal and recycling of waste materials of different

companies. Its system and mechanics for their services includes Waste Segregation, On-site

Storage, Collection, Transfer & transport, Processing & recovery, and Disposal.

Ecowaste Management Co. does the collection of partially segregated waste materials

from their clients and brings it to the companys Material Recovery Facility (MRF), as per

requirement of their clients. They do secondary segregation of all the solid waste materials

according to its category such as styro, plastics, cans & metals, carton boxes, paper, left-over

food, and residuals. Next, they recycle and resell all recyclable materials such as plastics, papers,

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can & metals, and carton boxes. Ecowaste Management Co. also includes the

cleaning/disinfection of MRFs of industrial and manufacturing companies, malls garbage areas,

and keeping the area free from scattered solid wastes and/or spillages of grease trap wastes and

food wastes, as part of their service operation. The company also does the composting and/or

conversion of the food wastes to animal feed. All the residual wastes are disposed to DENR

Authorized Controlled Dumpsite of Sanitary Landfill or thru the City Garbage Collection

System.

With the onset of globalization and modernization, it is inevitable that huge amounts of

garbage will be thrown away from homes everyday. It is important that the percentage of

garbage that will be managed and recycled would somehow be equal. Aside from hauling and

reselling different waste materials from different companies, Ecowaste is also part of the

recyclable collection events (called the waste market) held in different Ayala and SM malls

during the first Fridays and Saturdays of every month. In the waste market, different haulers of

different kinds of recyclable materials join together to collect traditional wastes such as plastic

cups/gallons, plastic spoons and forks, PET bottles, cartons, and papers, tin cans, and the like.

Chapter 2: Marketplace Analysis

2.1 Customers

Ecowaste Management Companys target market includes subsidiary scrap buyers and

recyclers. These customers buy the companys stocks of scrap materials according to its

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classification. Each buyer has a specific line of scrap materials that they purchase from the

company, all according to their own line of business. The following is a list of Ecowaste

Management Co.s buyers:

Scrap Buyer Type of Scrap

Eco Fortune Inc. Scrap cartons, papers, PET bottles, Tin Cans

RAC Metals Alum Cans, Alum, Metals

Phaeton Plastic Trading Plastics (packagings, finished products and

grinded materials)

Good Fortune Trading Plastics (cibak, cups, straw, styro, HDPE, PP)

Robwood Enterprises Scrap Woods and wood pallettes

Mioka Biosystems Corp Scrap Woods (fire wood)

YKU Trading Plastic PET cups

Top-Mar Metal Ventures Corp. Scrap Insulated Copper, scrap trimmings, scrap

wire harness, and scrap metals

Tially Plastic Trading Scrap engineering plastics

Clove Metals Scrap Special Metals

Eugene Metals Scrap Special Metals

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Somerset Resources Inc. Scrap Cartons, Scrap papers

R.A.C. Plastic Scrap Trading Plastics (cibak, gallons, cups, HDPE, PP)

Facility if they wish to inquire about the scrap materials that they will possibly be haulin

Ecowaste Managements buyers obtain information about the different scrap materials

through getting in touch with the office personnel. Aside from talking over the phone, buyers and

potential scrap haulers are also allowed to visit the Material Recovery Facility.

Scrap buyers purchase scrap materials through a series of steps. First and foremost, Eco

Waste Management Co. contacts them upon determining if the quantity of their stocks are

readily available for disposal. After having been contacted by the company, the customer

proceeds to the Material Recovery Facility for the hauling of scraps. The scrap materials will be

priced per kilogram according to the market price of the material to be hauled, with respect to the

agreement between the company and the buyer. The buyer then weighs and records the scrap

materials that they will haul, all the while being witnessed by a representative of the company.

Buyers usually buys in bulk and the quantity of the scrap materials that they haul from the

company, of course, depends on the buyers capacity. Buyers then proceed to the office and

present their tallied records and will accordingly be issued a sales invoice. After paying for the

hauled scraps, the buyer will then show his/her official receipt to the company guard in order to

transport the waste materials outside the MRF.

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 Rather than seasonal frequencies, the companys sales is mostly swayed by economic

factors. If an economy of the country is booming, then the sales increase, and vice versa. There is

less demand in plastics nowadays on account of law that bans plastics from different

establishments. This trend drastically affects on the sale of a company since plastic sales take up

great portion in income; therefore, it is prerequisite to read the market trend in order to avoid

massive losses.

In addition, Ecowaste Management Co. provides its services to different companies in

economic zones and industrial parks, as well as establishments such as malls, stores,

schools/universities, offices, and post consumers. However, the company provides its services to

these clients through engaging and winning in biddings of the scrap materials of these

companies.

The following is a List of the companys clients and their addresses:

Company Address

Philippine Airlines Pasay City

Manila Doctors Hospital U.N Ermita Manila

Central Mall-Binan National Highway, Binan Laguna

Lufthansa Technik Phils., Inc Macro Asia Special Economic Airbase,

Pasay City

Walter Supermarket, Inc. North EDSA Branch

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 Makiling Branch

Sucat Branch

Calamba Branch

Carmona Branch

Santa Rosa branch

E. Rodriguez Branch

Cabuyao Branch

Bicutan Branch

Makati Branch

First Electro Dynamics Corporation FPIP, Tanauan, Batangas

INNOTOR Phils., Inc. CPIP, Batino, Calamba, Laguna

Nissin Brake Phils., Inc Petron Katipunan Ave.Cor. Mangyan St., La

Vista, Q.C.

Petron Marketing Corp. C5,Diego Silang,Taguig

Dasmarinas, Makati

Chowking Foods Corp. Lipa, Batangas

Jollibee Foods Corp 7/F Jollibee Plaza, 10 Emerald Ave., Ortigas

Center, Pasig Cty

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 JB Pioneer Center

JB Green Meadows

JB Tanauan Crossing

JB Julia Vargas

JB Katipunan

JB Global

JB Paseo de Santa Rosa

JB Pasig Market

JB Jubilliation

JB Pasig Rotonda

JB Retiro

JB Calamba Shopping Mall

JB Binan Bayan

JB Tanauan Mabini

JB Pasig Simbahan

JB Banawe

JB Binan Hiway

JB Pasig Rosario

JB Lipa Uptown

JB Pateros

JB Lipa Bayan

JB Taguig

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 JB Siena

JB Petron Katipunan

2.2 Competitors

Among numerous waste managing and scrap hauling business ventures established in the

Philippines, Ecowaste Management Co. has identified some of its key competitors. These

companies lower the companys business opportunities with other clients because of

competition.

Don Al Enterprises is one of the top competitors that the company has identified. Similar

to the operation of EMC, this companys operations are concerned with the wholesale and retail

sale of scrap papers, cartons, woods, and metals. Other factors that EMC considers this company

as its competitors are because this company collects almost all of its scrap materials in the

Calabarzon area, and the clients and customers are usually located in the companies within the

industrial parks. Currently, they have approximately 40 - 50 employees and 20 trucks that help

them carry out their operations. Their warehouse is located on Banlic, Cabuyao, Laguna. Don al

Enterprises also has demolition services such as dismantling of abandoned warehouses, ships,

and industrial machines and many others.

Aside from Don Al Enterprises, another key competitor of Ecowaste is Mary Check

Trading. Mary Check is a Junk Shop that is located in Cabuyao, Laguna. EMC considers Mary

Check Trading as one of the top competitors because both companies have the same vision and

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mission. They both aim to give their best service to those enterprises continues to be their goal

resulting into a clean and green surrounding.

Other competitors of Ecowaste Management Co. include other scrap haulers, namely,

Long Life Junkshop, Don Don meteals, Mahada Enterprises, La Felonila Junkshop, and Umali

Junkshop. These companies in the industry are also located in Laguna.

2.3 Overview of Marketing and Sales Strategies

Marketing Strategy

1. Build a relationship oriented business

2. Emphasize high value, high quality products and services.

3. Focus on municipalities, landscaper, nurseries and the federal government as key

initial markets.

4. Provide services to different companies in economic zones and industrial parks, as

well as establishments such as malls, stores, schools/universities, offices, and post

consumers.

Chapter 3: Industry Analysis

The industry of solid waste management in the Philippines has played a vital role in the

well being of the countrys environment. One of the recent trends in the field of solid waste

management here in the Philippines is the enactment of the Republic Act 9003 or the Ecological

Solid Waste Management Act in the year 2000. to provide a framework for managing the

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growing problem of solid waste in the country and to give prime importance to the roles of

LGUs in managing their respective solid wastes.

Another trend is the creation of the Solid Waste Management Board (SWMB). the

SWMB Prepares Solid Waste Management Plan (SWMP), monitors its implementation in

cooperation with the private sector and NGOs, and adopts revenue generating measures to

promote the viability of SWMP. It Recommends measures for the preservation of the ecosystem

and safeguards it against pollution through suggesting ways, such as franchises or

Build-Operate-Transfer (BOT) agreements, for the collection, transfer, storage, processing,

recycling, or disposal of solid wastes. In 2004, a total of 103 cities representing 94% of the total

109 had organized organized their SWMBs in accordance with the provisions of RA their

SWMBs in accordance with the provisions of RA 9003. Of this number, however, only 49 cities

or 44% had effective SWMBs.

Also, the Solid Waste Management Plan (SWMP) was created. In year 2004, a total of 91

cities or about 85% of the 107 urban centers had formulated their respective 10 10-year SWMPs.

Of this number, only 67 cities had formulated quality SWMPs in accordance with the minimum

requirements of RA 9003. Another 25 cities had demonstrated high performance levels for

formulating quality SWMPs. The remaining 15 cities had within and below benchmark capacity

levels in preparing their respective SWMPs. Other trends in the field of solid waste management

in the Philippines include the establishment of the Materials Materials Recovery Facility (MRF)

in Barangay and City level, composting of biodegradable wastes to be used as organic fertilizer,

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Innovative ways of Recycling of Non-biodegradable wastes, segregation at source household

levels, and the construction of sanitary landfills.

Chapter 4: Marketing Plan

Ecowaste Management Co. plans to go digital by means of producing a website in which

its current and future customers can refer to, may it be on answer frequently asked questions,

contact details or more information about the company. The company spreads throughout

different parts of the Philippines, specifically in Calabarzon, Quezon City, Pasig, Paranaque

City and Laguna, although it does not cover several regions in the country. Creating a website

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which includes company products and services supporting their cause for a cleaner environment,

allows the consumers to visual what type of service they will be investing on and the quality of

the product, service and delivery.

The company targets companies that purchase bulk orders of scraps as that is it how it is

measured and priced-- although specific orders are also accepted. These products and services

will be featured in the website under basic information about the company. Other than order

options in the website, articles concerning a clean-green environment will be available for all,

specifically for individuals. These articles will illustrate how to be clean and green with starting

with, others and the relevance of such.

The companys prefered budget levels are as follows:

Item Level of Cost

Hardware Low

Software Low

Technology Maintenance Low

Internet Service Provider Low

Website Development Low

Online Store N\A

Content Creation/Development Low

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 Website Maintenance Low

Domain Name Registration Low

Web Hosting Low

The companys budget on the website remains low as their focus is not on e-commerce.

They distribute products and include services although they are not to be distributed like other

objects that are bought online. They will slowly establish their online presence as means of

communication, whether it be to feature their products and services or to connect to current and

new customers.

4.1 Target Market

Target market would remain the same, manufacturing companies, hospitals, food

establishments, airline companies and other industries that accumulate large quantities of solid

waste. To reiterate what was mentioned earlier, the site would serve as a platform for the

company to expand its communications reach to their current and potential clients.

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 Chapter 5: Operational Plan

5.1 Business Location

As an online business, the primary location of Ecowaste Management Company is the

Internet, including the various aspects of establishing and maintaining it in Cyberspace. Every

e-business have a physical presence. In this case, its in Binan, Laguna. Ecowaste Management

Co. has three Material Recovery Facility (MRF) located at different locations. The first MRF is a

3,000 sqm facility found at Ganado I Service Road Ganado, Mamplasan, Binan, Laguna. The

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next MRF is a 13,000 sqm facility located at Ganado Road, Mamplasan, Binan, Laguna. The last

facility may be found at Dona Nicasia, Commonwealth, Quezon City

5.2 Operating Facilities and Equipment

Ecowaste Managements primary physical resources includes trucks, press machine and

jack lifters. The trucks are used to transport the hauled scrap materials to various locations, as

requested by the clients. The press machine is a metal working machine used to shape or cut

metals by deforming it. Jack lifters are lifting device used to lift huge and heavy loads such as

the scrap materials. Other physical used by the company include styro melting machine, grinding

machine, weighing scale, and forklift.

The human resources of the company are the waste segregators, drivers, porters, office

staff, and guards. The waste segregators are the ones who classify the scrap materials into their

respective categories (e.g.: wood pallets, plastics, metals, residuals, etc.). The licensed

professional drivers are assigned to operate the trucks to transport the scrap materials to their

designated locations. The porters, on the other hand, are designated to load the scrap materials

onto the trucks. They also serve to guide the drivers. The guards are the people trusted by the

company to keep the Material Recovery Facility are safe from thieves and other threats that may

harm the assets of the company. The guards are also in charge of manage the logbook of the

employees. Lastly, the office workers handle all the paperwork and business/monetary

transactions of the company. They handle the employees and oversee the productivity of their

outputs.

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 One of the most important resources of the company, perhaps, is their financial resource.

Ecowaste Management Co. gets their monetary funds from business loans in United Coconut

Planters Bank (UCPB). In addition to the capital that they initially have, they loan from the

UCPB to fund their business operations. The inflows and outflows of cash, then, just circulates.

5.3 Operating Procedures

Waste is first generated as a result of the business operations of their different clients.

The kinds of waste generated would vary depending on the nature of the business. These wastes

are initially handled by the employees of the clients in their respective sites. Ecowaste

Management Co. would further separate and segregate these wastes at the source by following

the updated segregation scheme implemented by the clients. Solid wastes such as plastic

packaging materials, styro, plastic, metals, and left-over food would now be surrendered to the

Ecowaste Management Co. employees for the collection process. The employees would pack all

solid waste in garbage bags. Double lined garbage bags would be used for fast foods to avoid

spillage. The packed solid wastes would be brought to a designated waste storage room to be

collected by a Ecowaste Solid Waste Collector. The Ecowaste Solid Waste Collector will now

transfer and transport these solid wastes to a Material Recovery Facility. Once it arrives at a

MRF, final segregation according to category will begin. The wastes will be grouped into

recyclables and residual waste materials. Recyclable materials such as plastics, papers, cans,

metals, and carton boxers will be resold. All styro packaging waste materials will be moved to a

Polystyrene Packaging Council of the Philippines (PPCP) recognized recycling facility. Residual

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waste will be brought to a DENR Authorized Controlled Dumpsite of Sanitary Landfill or to the

City Garbage Collection Systems for disposal.

In addition to that, these will be the weekly checklist of procedures:

Systematic Quality Assurance Process - A systematic quality assurance process

should be in place to check the operational integrity of the site. This will include

checking for broken links, spelling and grammar errors, search engine

optimization best practices, and adherence to web accessibility standards.

Process to Monitor Compliance - Implement a process to monitor compliance on

organizational web policies, web standards, and editorial style guides.

Receive Immediate Downtime Notifications - A process that immediately notifies

you if your site goes down or is defaced should be established.

Identify and Remove Outdated Content - A set of processes and procedures to

manage content including the removal of redundant, outdated, and trivial content

is vital. Organizations should embrace the concept of the content lifecycle and

systematically review all content on a regular basis. Remember that content does

not provide value forever.

Manage Daily Web Operations - Implement a system that manages daily web

operations and requests for ongoing web support. Web teams typically rely on

email and phone calls, both of which are inefficient and difficult to manage with a

larger team. A centralized system that includes workflow, internal and external

communication tools, and resource tracking will improve communication,

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 improve efficiency, and provide valuable data on how resources are allocated to

support the website.

Evaluate the efficiency of Web Operations - A process is needed to continually

evaluate the efficiency of your web operations. Factors to consider include how

quickly and accurately content is published, the overall quality and stability of the

site, proper documentation of all processes and procedures, and backup and

redundancy of both staff and technical infrastructure. This should also include a

comprehensive set of reports that track the quality of the site over time.

5.5 Customer Service Guide

How are customer expectations about service determined?

What procedures are in place to correctly handle customer inquiries, from initial

inquiry to post-delivery follow-up?

What is being done to minimize delivery time from the time the order is placed

until delivery?

What procedures and policies are in place to guarantee efficiency in customer

service operations?

How is the business helping customers serve themselves?

What standards or metrics for measuring customer service will be used?

What unique or competitive advantage is the customer service program

providing?

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 Chapter 6: Financial Plan

The group would make use of the Squarespace platform to build the website. The

monthly cost of the site is at USD 18.00 (902.97) for a one year subscription. Due to the ease of

use and intuitive nature of the site, there is very little need for a web designer as the owner can

be tasked with updating the website every when necessary. The website would allow the

company to extend their market reach by tapping into a new platform to advertise their services

and information to a wider audience group as well as help increase their reputability as an

institution. The cost of buying and maintaining the site is outweighed by the benefits that it

would bring about to the company. The return on investment can be made as fast as a month for

the entire years worth of subscriptions.

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 Chapter 7: Management Plan

The flowchart below illustrates the organizational hierarchy of the company and different

departments that makes up Ecowaste Management Corporation:

7.1 Key members of the organization:

Nelson De Luna - He is the CEO and general manager of Ecowaste management

company. Mr. Nelson De Luna is in charge of making major business decisions and

managing the overall operations and resources of the company.

Armida De Luna - She is the operations manager of Ecowaste Management Company.

Shes in charge of overseeing the business operations and processes. If there are

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necessary changes or problems related to the operations of the business, she is the one

tasked to handle it.

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 Chapter 8: Issues Analysis and Critical Risks

8.1 Strengths

One of the key strengths of Ecowaste Management Co. is that they work together with

several alliances, suppliers, and collaborators, unlike most of their key competitors. These

established connections in the industry can be of help to them with regards to the different scrap

materials collected in their hauling process. These alliances can also help the company gain more

clients through their referrals. Ecowaste Management also keeps a harmonious relationship with

these suppliers and alliances. The company also has connections in their barangay so it is easy

for them to report troublemakers that try to hamper their operations inside the facility.

In addition to that, the company is PCO certified and they are recognized by the DENR

as an outstanding hauler and recycler of waste materials. This gives them a reputable image in

the market, which can help them get an edge against their competitors. Also, the company is an

experienced solid waste contractor, licensed to dispose of garbage or residual to pilotage trading

and construction.

The company also owns three Material Recovery Facilities in the Laguna area alone,

which gives its workers an ample space to work in and they have a lot of space for the waste

materials that they haul. Moreover, the company supports a clean and green environment, which

appeals to a good deal of potential clients.

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8.2 Weaknesses

Perhaps, the greatest weakness of the company is that almost all of its processes are done

manually. From waste collection, to the segregation of wastes, up to the recording process of

inventory, everything is executed manually. This causes their work process to be accomplished

in a relatively slow manner. The manual process also makes the company prone to the loss of

inventory since its very difficult for them to monitor what comes in and what comes out of their

facility.

Also, their competitors are usually more capable of a higher bidding price for the scrap

materials of the potential clients, which could lead to their loss for that certain potential client.

Ecowaste Management Company is easy to beat in scrap biddings when they are faced with

really big competitors who are more financially stable.

In addition, the limited number of employees is a problem within the company.

Sometimes, the company lacks workers to haul from their clients or drive the companys trucks.

Because of this, the company would not be able to haul the wastes of their clients, which creates

a conflict between the company and their clients. The company also only has a few office staff to

monitor the rank and file employees, as well as office personnel who take care of the important

company files.

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 The companys employees are also very unmotivated to work hard in the company. Most

of them are trying only to make ends meet and most of them dont really focus on their work

quality. Most of their employees are not computer literate too, so if in case the company decides

to shift to an automated process in their operations, the employees would have a relatively long

adjustment period for the process.

Also the location of the companys Material Recovery Facility is quite far from most of

their employees homes. In some unfortunate scenarios, other workers could not be able to make

it to work because they dont have money for transportation.

Part of Ecowastes weakness also includes having no surveillance cameras to monitor the

activities inside their facility. Without CCTV cameras, its harder for them to ensure the security

of the materials inside the warehouses that they own. Also, its a little bit difficult for them to

closely monitor the performances and productivity of their employees because they have no

cameras installed inside the MRF

8.3 Opportunities

Ecowaste Management Company is located near Laguna Technopark, which is an

emerging industrial park in the South. There are several clients that they could potentially work

with, especially in their vicinity.

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 Living in a highly technological era, such as today, is also an opportunity for the

company to make their processes automated and their operations could potentially become easier

for them and for their workers. There are many off-the-shelf systems that they could avail of, and

alternatively many system analysts and programmers that they can consult when it comes to their

companys processes.

The ASEAN integration can also be a very huge opportunity for the company. This integration

can create a larger economic community and could bring about more investors in the country,

which would mean there would be more companies to be established here. More companies

would mean more waste generation, which would then lead to more potential clients for

Ecowaste Management Company.

8.4 Threats

Most of the companys threats are substantially related to their actual and potential

competitors. The high level of competition within the same market makes it hard for Ecowaste to

gain clients. Also, their competitors are located almost within the same area and there is a high

risk for the company to lose their clients to their key competitors.

Furthermore, the Senate Bill No. 2759 (Total Plastic Bag Ban Act) that was implemented

by the government has created a huge limitation to the companys operations. Since the

companys revenue mostly comes from the recycling and reselling of plastic materials, this bill

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has created a significant loss for the companys overall income and has posed a huge threat in

their operations. If the plastic ban would be implemented to the fullest nationwide, there would

be a much greater loss for the company.

Thieves around the area of their Material Recovery Facility is also a huge threat to the

company. Since the company is still not that technologically updated, it is very hard for them to

monitor most of their losses and they are prone to people stealing their inventory.

Climate change can also be a significant factor in the operations of the company,

especially that their business is environment related. Since we are living in a climate change

generation, there is a threat presented there to the company. Ecowaste Management Co. factory

is situated near a grass field, therefore a sudden heat can burn those grasses and the company can

be greatly affected by that sudden unforeseeable climate change that can happen at anytime.

Therefore there is a potential threat to the company in form of a climate change.

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 Chapter 9: Exit Strategies

For the Ecowaste Management Company, it has been known that their services towards

their clients and customers has been excellent and there has been many positive reviews of the

company. If Ecowaste Management Company were to implement an online website to interact

and transact with their customer they could substantially increase the companys reputation as

well as its revenues and income due to an increase of transactions and sales of their services.

In the long run for Ecowaste Management Company there are two ways for the company

to expand and make the company bigger. The two ways for investors to get more money back is

through doing an IPO to increase the companys capital so that it could invest and do more

projects as well as acquiring smaller waste related companies to slowly get rid of any potential

competitors as well as increasing the amount of sources of income so that the company could

increase revenues and net income as well as expand operations capabilities

9.1 IPO

By doing an IPO for the company this could give investors a boost of confidence as the

company is able to raise enough capital for the IPO and it shows that the company is financially

capable of doing large scale projects. With these large scale projects, the company could see

even more increase in income. Stocks in the stock market are known to increase in price up to

several percent, depending on the how the market reacts news and upcoming projects of the

company. The price could go even higher than initially forecasted.

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For example the possible IPO of Ecowaste Management as well as future price:

IPO Price at June, 2017 Php 10

Current Price at June 2027 Php 100

Percentage increase in price 900% Net Gain

Real life example of a stock big increase in price (DoubleDragon [DD:PH]):

IPO Price at 2014 Php 2

Highest price at 2016 Php 80

Percentage increase in price 3900% Net Gain

As seen in the possible IPO scenario of Ecowaste Management investors who invest in

their money in the span of 10 years could see a 900% net gain on their investment in Ecowaste

Management if it were to successfully IPO and continue an uptrend and bullish momentum. This

also depends on the projects, future plans and fundamentals of the company for investors to

invest in this company to earn capital gains. In the real life example given, the stock DD started

with the IPO price of 2 Php and it went as high as 80 Php giving investors about 3900% increase

in capital if they were to sell their stocks at that time. This shows that putting Ecowaste

Management in the PSE would be a good opportunity for the company to raise investors

awareness as well as capital as their stock prices reflects the belief the market has in the

company to perform well fundamentally as well as potentially in the future.

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9.2 Acquisition of other companies

By having Ecowaste Management acquire and buy other companies to further expand the

capabilities of the company, it could be seen in the future that Ecowaste Management will be

making a big ROI after having multiple acquisition of different waste-related companies. A

waste research and development company (R&D) should be acquired first, for the benefit of the

company in the long run, and develop new technologies, innovations and strategies for the

company to be in the top of their industry.

After acquiring a waste research and development firm, the company should focus itself

on trying to acquire small but potential waste companies who could pose a threat to the company

in the future. Acquiring other waste firms will increase the companys overall operations and

will increase revenues as well as net profit due to an increase of service provided to more clients.

Investors will be looking the earn what they invested in the company or maybe even more in the

long run due to the acquisition of other companies for Ecowaste Management.

A real life example of where an acquisition of a company helped earn millions of dollars

for a company was WhatsApp. WhatsApp was recently acquired by Facebook in 2014 and in the

beginning of its acquisition, investors initially thought that it was a bad acquisition on the part of

Facebook. However, over time the acquistion of WhatsApp proved to be successful and it was

able to increase the stock price of facebook by double digits percent in a single year.

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Chapter 10: Legal Forms of Organization

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 Ecowaste Management Co. is founded and headed by only one owner - Mr. Nelson De

Luna making the business legal form of organization a sole proprietorship. The sole

proprietorship is a popular business form due to its simplicity, ease of setup, and nominal cost. A

sole proprietor need only register his or her name and secure local licenses, and the sole

proprietor is ready for business. With this option there are fewer forms to file than with other

business organizations. It simply refers to a person who owns the business and is personally

responsible for its debts. The owner of a sole proprietorship typically signs contracts in his or her

own name, because the sole proprietorship has no separate identity under the law. The legal tax

and issues involved in the business means that the owner and the business are one in the same for

tax and liability issues.

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