Report on Feasibility Analysis in Saudi Arabia Environment

Introduction

The idea of my project is to combine three important elements into one. The first element is to maintain a clean environment and increase the usability of materials that can be recycled such as plastic and paper. The second element is to use the latest means of advertising to increase awareness among the general population. In addition to educating the public on the need to ensure the distribution of waste and to break it down into food waste, waste recycling is important to raise awareness of the overall economic impact while ensuring a civilized society whose environment becomes more safe and clean. The final element is the use of solar energy, which provides an ideal choice and is thus regarded as friendly to the environment through intelligent conservation. In addition, solar energy is available in huge quantities in the Middle East, but so far their use may be considered very limited. So, personally, I consider this project to be unique of its kind especially since in general governments have just begun in the process of considering alternative energies as options for the future energy.

 

 Sustainability

This project is sustainable. It will go with four stages of life cycle. First, the introductory stage where the new rubbish container will be introduced to the audience in a public area in order to create demand, while the advertisements will focus on creating customer awareness. How to use this container? What benefits will be gained from dividing up the rubbish? Also, in this stage it may become quite costly as this project will need to first find its feet. Secondly, the growth stage is the stage where the aim is to concentrate on schools, universities, and colleges, for both gender and even among some government departments. Thirdly, the maturity stage where the focus will be to provide a long term contract with many sectors such as telecommunications companies and city councils in order to display my new project in their advertisements.

 

Extensions 

There are some good opportunities that could be extended in other future projects. For instance, designing a special rubbish container has the same idea but with different functions such as including some gas that will keep the food waste from spewing out bad smell to the neighborhood.

 

 

Market approval:

Needs and wants  

There is an urgent need to increase awareness of the damage to the environment, especially when there has not been an adequate focus on recycling waste in Saudi Arabia. Therefore, this service can contribute effectively to shedding light on the critical area of awareness. In terms of safety, these wastes are environmentally friendly and will reduce the pollution emitted from the waste in general. In terms of savings, if the success of the initial phase of the project will provide waste recycling free of charge to citizens, it will undoubtedly increase the public health community as a whole. As well as these, containers will be distributed in proportion to the general appearance, which will also focus on highlighting the aspects of aesthetic when placing them in public parks, beaches, universities, and schools. Just as important is taking care to get the ads across in a purposeful, artistic, and unique way to the community in general and students in particular.

Recognition

In terms of recognition, it will contain the desired goals of this project whose targets include:
1 – Create the kind of public awareness in the community on the environment.
2 – To rely on new sources of energy that will reduce the cost of electricity charges. This energy is called photovoltaic and it depends entirely on solar energy.
3 – Take an active interest in advertising awareness in general.
4 – The Government service ought to contribute to social responsibility, where everyone is responsible: government, the private sector, and individuals.
5 – Innovation, which is a strong pull factor, would have to interact with this service.
6 – Change the concept of waste container from a dirty container to be neglected to a container that is attractive.

 In terms of cost, compared with other advertising competition, the cost of advertising will be less than the cost of advertising on TV, taking into account that this is free for the government (City Council).

 

Compatibility

The traditional method for collecting waste in Saudi Arabia for public places leaves much to be desired. There is a lack of consciousness in communities about the size of the damages resulting from the waste left in the streets and public places such as parks and beaches. Therefore, they are not throwing waste in the waste container allocated. Conversely, there are many who are not aware of the damage arising from the remnants of foods not placed in the right place (waste container). In any case, Saudi Arabia has only one type of waste collecting in which all kinds of waste, whether food or non-organic waste materials are all intended for recycling.

For potential customers, there are two types. The first type is government and the second type is the people. For the government, there are hopes and enthusiasm in trying to eliminate the phenomenon of waste in public places. Moreover, there is material and moral support in order to find alternative energy sources friendly to the environment which would contribute to the general upgrading of the community in general. As for the people, there may be at first a kind of lethargy and lack of appetite for changing bad habits, but with the large number of awareness-raising ads, some optimism for change in this bad habit is already a positive sign.  

 In fact, hygiene is usually a top priority in Saudi society, but it must be matched by commitment to maintaining public property and treating it as if it were one’s private property. In other words, everyone must be brought on board as this is a social responsibility. Therefore, this idea is closely associated with changing public behavior, and what makes it positive is that it stems from the customs and traditions of the country and cannot thus be rejected in one way or another.

 

Complexity

I believe that this product is easy as a type of omission. It is somehow difficult in terms of photovoltaic energy conversion into electrical energy which can be displayed in advertisements and commercial awareness, similar to TV advertisements instead of static images. As the TV ads may contribute to a positive change in behavior, especially in children and their families, a child would usually gravitate towards TV ads more than still images that are printed in newspapers or ads on roadsides. This product may be considered easy in terms of the use of its service. It will provide more regulation in terms of throwing waste of any kind. Hence, all that is needed is to throw waste in the right place according to the right type of waste.

 

Distribution:

This work suggests that the distribution operations are divided as follows.
The first is the phase of the tariff for the product. Here, it relies on the selection and means of advertising, taking into account the expenditure involved and by placing special brochure attachment with the local newspaper (i.e. Alyaum newspaper) in order to speed up the deployment within a large segment of society while keeping in mind the type of paper used and colour to be distributed every Saturday and Wednesday. Since Saturday is the first day of the week in Saudi Arabia, and Wednesday is the end of the week, it would be for a period of four weeks before starting to run ads integrated with the new waste containers. Also, there will be a website for those who are interested in using the advertisement service with the waste containers as well as using the newspaper ads to introduce our services as to the best way to contact us. More than that, I am also going to use my communication skills in order to visit and try to bring about good deals with some fairly known companies such as Mobily, Zain, STC which are well known telecommunication companies that rely on advertising heavily. Also, my project would mean that the local council will have the ability to use my advertising service since it will be free of charge. In contrast, I will gain some protection in terms of the distribution of the containers themselves from other competitors. There is something else though for those companies who want to display their ads. This service will be under my supervision. Thus, the direct distribution for this service will be a method of my own choosing.

The second is the distribution of the containers themselves. In this phase, it will take into account the target market for the current plan which is Dammam city. Nevertheless, intensive distributions will be employed as the method.   The distribution of containers will first be made at the Dammam Corniche with up to 200 rubbish containers. Then, the waterfront with approximately 60 containers, as this area is too heavy during the high season. Moreover, the Dammam Corniche is one of the most vital areas needing protection from waste as well as being the main location for the development of new waste containers. As it is, it encompasses the recreational lake of the city teeming with visitors throughout the summer and holiday periods. In addition, there is a Games village. The area of Dammam Corniche is rather large as it is extended on the shores of the Arabian Gulf, with an estimated area of about 15 km². Hence, there will be up to 200 waste containers.. There will also be other containers of up to 100 at the Half Moon Beach during the first stage which will later be expanded to cover the whole beach in the future. In addition, the CBD will be served by 60 containers which may be increased in the future depending of the need. Lastly, at the first stage, the Dammam waterfront will also have 60 rubbish containers. The following graph will give an overview of the first stage of my project in Dammam city.

Since this service will rely on solar energy, there will be special technicians available 24/7. They will be in charge of any unexpected malfunction. Moreover, for the waste companies’ competitors, since they are already in the market, I would suggest setting up a deal with them. Consequently, each company who is interested in organic rubbish can come along and collect them. The same situation will apply to those who are interested in recycling waste. In order to protect the container itself, I will provide a special code for each company. As a result, no one else can open the container if he does not have the code.

 

Competitive strength:

Differentiation

This idea is completely different from those of competitors as it focuses on the use of environmentally friendly materials in the dissemination of advertisements. As well as with the division of waste into several sections,
it is expected that the public reaction will be positive. They may feel responsible towards preserving the environment, but they lack the necessary awareness and thus need constant reminders. Basically, this product focuses on the features as it will contain LED screen instead of just being a rubbish container. In terms of quality, the containers will be made from stainless which will give the product durability as well utilising solar energy. The performance will be very well organized since the container is divided into three different usages. The style is also considered to be modern and the service provided will hopefully be considered professional. The service is also considered to be user-friendly.

Value

Perhaps the actual value of this product is not just money-wise. When the right to change bad habits and to acquire the usually benign, then this new habit alone, while continually learning from others, is beyond what money can buy. I think this is the real value and gain. So that the duties of social responsibility that one feels towards public property such as parks, gardens, and beaches are indeed priceless. Therefore, it is necessary to preserve the environment. That the use of environmentally friendly materials will contribute positively to the preservation of the environment in general is beyond discussion.

 

Competitors

Currently, there is one direct potential competitor called Alkhudari. They are in charge of the current maintenance of the roads in Dammam city as well as being responsible for cleaning and collecting rubbish from parks, waterfront, and Dammam city in general. The threat from them is when they start to move into recycling rubbish. So, perhaps they will provide special containers to that end. Their strength is in the fact that they are the only rubbish company in Dammam city. Moreover, they also have quite a healthy financial position. On the other hand, they have some weaknesses as they still do not have any viable solutions to deal with recycling rubbish. Besides, they do not have ads that tell people how they should treat the environment. Most importantly, it seems that many of their workers do not care about the importance of their job because the wages are considered to be rather low. The opportunity here is to provide that special container and then seek a commitment from the current competitor or any new company that really wants to go into this kind of business. Their responsibility is to collect rubbish in general and my responsibility is to provide the container including the LED screen.

The indirect competitors, on the other hand, can be known via the local TV channels, Radio MBC FM, roadside advertising, and the Alyaum newspaper. Anyhow, the significant competitive strength of my idea is to include two services with just one container.  

 

Socio-economic risk

The change of behavior in society is regarded as the biggest challenge in this product. Where the product is trying to impose itself on the community by highlighting its positive aspects, there are clear limitations and a lack of understanding among the local population towards waste being dumped in the streets and public places. For example, we find that a child learns from his father or his mother this bad habit when the leftovers are thrown in places as the custom is to throw the waste! Explanation that there is somebody responsible for the collection of such waste should be made known, and that there is a sizeable number of foreign workers who are interested in recycling materials and selling them illegally.

The implantation of the principle of concern for the environment and cleanliness is essential at all levels of society. Also, one must try to change the prevailing notion that all those interested in trying to clean the environment and are involved in waste collection are somehow anti-social.

One of the main risks that could face the product is sabotage by some groups in society such as adolescents. Which of these will require the imposition of sanctions, security and fines if those involved are found?

 

Dependence risk

In this product, the slices of solar energy are manufactured in Taiwan. Then, they are sent to the United Arab Emirates where they are put in their manufactured form with the slides on them. The danger here is in the process of providing the application in record time until you begin to develop procedures for the same product to develop LED screens, which requires searching for a reliable supplier at a reasonable price.

To ensure the success of the product, it is necessary to develop financial fine to those who deliberately throw trash on the street or in other place and these are the responsibility of the duties of the municipality. But such a decision requires the approval of higher authorities.

 

The right business model:

Skills and experience

Marketing expertise

I am currently studying a Master’s in marketing and previously, I studied Public Relations and Advertising for my Bachelor degree. So I find myself having some experience in this area. The marketing plan for this product will depend on the use of the marketing mix effectively. First, the product, and there are two types of products. The first type is a waste container for multiple uses (recycling paper, plastic recycling, and food waste). As for the second product, it is a service of advertisements which will focus on profit fairly. Anyhow, the product breadth is narrow. Secondly, place strategic will be used to choose the places teeming with visitors for the chosen sites as follows: Dammam Corniche, the waterfront, downtown, half-moon beach, park, and King Fahd. Not only that but we will extend the range in the second phase to include: University of Prince Mohammed bin Fahd, King Faisal University, Women’s colleges, Technical college, middle and high school for boys, middle and high school for girls, as well as government departments and the Aramco Company. The third is strategic promotion. There will be a temptation to offer the price of ads to companies and institutions which are specialists in environmental matters such as agriculture and hygiene. Also for companies that require long-term contracts, there will be a reasonable discount. Also, advertising awareness, which belongs to the Council, will be almost free except the costs of production. The purpose of my product is to create a better environment that relies on using alternative energy in daily life as well as enhancing the current generation’s awareness of new green knowledge and customs to transfer to the next generation. The target of my product is the Saudi residents and foreigners who works or live in Saudi Arabia. The message will focus on the road towards a better environment and this is my tag as well. For the medium, I do not think I need one since the product will sell itself. There are LED screen works for advertising. The fourth is the price strategic. In general, there are various advertising rates for space in the channel or the channel floor. The recorded average price of advertising in 2007 amounted to $3,689 in thirty seconds (MBC, 2008). As for the roadside ads, currently there are no fixed prices and figures are clear on the internet as far as the cost price of advertising on roadsides in Saudi Arabia. In any case, the cost of the ads for my product will be up to $2,500 which will be less than the cost price of advertising on television as well as covering the expenses for manufacturing, maintenance, and administration.  

 

Technical expertise

On technical expertise, we will need an expert in the operation and conversion of solar energy into electricity to run the LED screen which means someone with the technical know-how. Not only that, there are more than 300 waste containers to be operated at the same time so the expert will need to develop a mechanism such as a small device for monitoring in the event of disruption of any of the screens. In addition, I look forward to a remote control center so that access to the containers is achieved in a short time and the damage is repaired quickly. In this case, there will be a fairly high cost of required materials. Therefore, in the worst cases, there will be reliance on the human element in the daily follow-up.

 

Financial expertise

In fact, I will need a lot of financial experience to run this project. Therefore, I look forward to having a financial advisor specializing in small and medium enterprises. From the outset, this will be funded by the Saudi government, with loans for the financing of projects of this kind. It is worth mentioning that there are no benefits from this loan and this helps me a more positive way to fully engage in this adventure. The fund will provide partial or total financing in the form of good loans to entrepreneurs as means of rewarding (The Centennial Fund Website, 2010). So, borrowing money will be the first choice. Also, I will consider getting a low level financial expert who can handle small-scale operations. For the office, we will need to find at least a reasonable price to manage and control advertising. I will also seriously need an accountant in order to take account of the expenses, maintenance and salaries, as well as the payroll for the workers. In addition, the accountant will take stock of revenues from commercial advertising and awareness ads. Therefore, s/he must organise the cash flow and bookkeeping. It is worth mentioning that there is no tax in Saudi Arabia, but there are administrative expenses paid annually or every two years such as for the issuance of a business license. Also, the shipping costs and imports from suppliers are important. I am also taking into account the need to find someone who can make rational analysis of advertisement sales and income.

 

Operational expertise

The project will require a high degree of operational experience. The hired expert will focus initially on providing products from the United Arab Emirates. I would buy LED screens and integrate them with the waste containers. That certainly requires a number of staff specialists who must be pre-interviewed and then selected and/or recruited. Not only that, the mission of the supervisor is to make sure that the containers are distributed to the areas scheduled and implemented in sufficient time. Another important thing which controls the quality of the product is the clarity of announcements and the sustainability of working with the same efficiency. Moreover, he will also be responsible for the establishment of timetables in the time-cycle. Each ad needs to be scheduled in terms of advertising for the frequency and the duration of the contract. Also, to take into account is the duration of a single shipment for reaching the warehouse before the start of the operation. To ensure the highest levels of quality, it is essential to provide quick solutions in case of any unpredictable problems.

Also, I will be taking into account the need to reduce the expenses of workers while maintaining the quality of the containers merged with the screen. Also, I look forward to providing containers in sufficient time and starting processing and preparation as required and then the distribution process, which must be thought out strategically. Finally, in some locations, there will be some kind of adjustment to the container. Instead of placing the LED screen, it will be put to an electronic coil where the announcement will be printed. The goal is to achieve more flexibility in diversifying supply advertising. Also, to provide some of the budget, this type will be at half-moon beach which is a relatively populated area.

Overall, customers are involved in this project as they should change their behaviour after they get the message.

 

Managerial expertise

There are some personal characteristics that may be useful in terms of managerial expertise and capabilities, which I think will be a catalyst in the management of this project. For example, I have the ability to listen to the reaction of the public. Also, competitiveness and self-confidence are critical. Moreover, I consider that the time factor is an important one especially if I want to manage any work. I have the ability to exploit the use of external resources. As well, I think the innovation of ideas is very important for success.

For managerial principles, I have knowledge in the implementation of strategy for management systems, as well as some good marketing ideas that could contribute to maintaining the level of sales and increasing them in the future. I also have excellent experience in the management of customer services. Anyhow, for financial matters, I would prefer to hire someone who has the alibility to manage the business financially.

 In terms managerial skills, I have the ability to listen to others and try to understand and respect their points of view. I have the ability to think critically and use logic to solve things. As well as the ability to measure the performance of the staff, I can make decisions at work. Also, the ability to work as a team and build new relationships while maintaining current ones either with the government or advertisers is also highly important.  

 

Resources

Financial resources:

There will be a certain dependence on suppliers for financial resources. King Abdullah Centennial Fund provides finance for the centennial business activities of small and medium enterprises (The Centennial Fund Website, 2010). Initially, the product is priced at the cost of one container costing around SR 12 000 = $3200 of non-price screen, which is expected to be size 52 inches or larger. There will be 420 containers requested initially which must have the approval of the Council in the distribution of containers to various places, and then the task of coordination and cooperation with them in the selection of sites will be next. The estimated initial cost of the containers for the screens is around the amount of SR 5.04 million = $1.344 million dollars, and as I said before, this is the price of non-screen containers ranging between 16000-19000 thousand riyals = $4,200 – $5,066 for Samsung (Samsung website, 2010). Anyway, I look forward to having fewer prices with the same quality. As a result, I have to build a good relationship with the King Abdullah Centennial Fund. There will also be headquarters for remote control and dealing with customer advertisers. Besides, there will be the need to afford office and warehouse for the maintenance and storage of waste containers.

 

Physical resources:

  In terms of places for the waste containers, we propose that in the first stage they ought to be at the waterfront and downtown Dammam (the open market). Then, they will spread to the banks of the Dammam Corniche and later to the shore of Half Moon. As to the suggestions and recommendations of Dammam City Council, these will also be dealt with.

For the office, I am looking forward to having the office in one of the Dammam Corniche and in the region that has a strategic location where there is easy access and where the marketing is even more inefficient. Also, for the warehouse, I am looking forward to be in the new industrial city of Dammam, because the lease is usually cheaper there than in other industrial areas.

Another physical resource is the computer and the special device to tell whether the waste container and Led screen work well or not. Also, transportation such as trucks will be used to import the containers from UAE. Furthermore, trucks for distribution matters as well as several equipments will have to be looked at.

 

Human Resources: 

Generally, we will try to merge some functions in order to reduce the cost of salaries. Therefore, there is need for multi-skilled human resources. For example, in the building, receptionist and customer service staff will take care of marketing, while the secretary will look at the follow-up and coordination of business meetings as well as data entry for clients.

  Also in the workshop, a number of technical staff will be based there for maintenance. The number of employees in the workshop to organize and arrange places for putting waste containers and screens will also have to be sorted out, as well as the truck drivers.

Regarding information technology and the development of devices and their integration into the LED screen, there will be the use of external resources such as specialized company in order to reduce the financial cost.

 

Intellectual resources:

Intellectual property: 

This project is owned by the Maryat Advertising Company in the UAE. After taking their permission, there will be a re-development of the product until it becomes more interactive. Therefore, the brand name is basically owned by the UAE Company. While it will be working under the name of Smart Green, the tag will be your way for a better environment.

 

Network resources:

King Abdullah Centennial Fund has professional advisers that may help in achieving my goal. There is also a strong network in the Dammam city council, partly because my uncle works there as director of environmental health in the Dammam CBD branch.

 I will also be using the Yellow Pages to get to firms that specialize in solar energy solutions as well as private companies in the provision of human resources.

 

Dollars and sense:

Sales forecast:

As shown here, the focus of this product is on providing a recycling waste service free of charge. There is another service which is the commercials and these ads will be 24/7 a week. This means that the cost of displaying advertising will be measured in seconds. It is worth mentioning that the price of ads on television can go up to the tune of 4800 SR = $1,280 per 30 seconds. Therefore, initially the cost will be within the limit of $1000 per 30 seconds. For example, the number of seconds per day is 86,400 seconds. We will put up half (or 43,200 seconds) as advertisements awareness free of charge except for the cost of production from the Dammam City Council.

Also to be included there are incidental expenses, monthly expenses such as transportation and distribution, freight charges, monthly salaries, and wages for workers and bonuses. As I mentioned earlier, there is no tax except the administrative fees paid to the government for the renewal of license and so forth.

In the end, a project like this I think should receive full support from the government. Also, there is the distinct possibility that the legislature shall apply in any State or Country. So, that because the project will re-create new habits of society in general. Also, it will contribute to opening new areas that will lead to economic benefit to the seriousness of the waste remains in its various forms.

 

List of reference:

Asharq Alawsat Newspaper Web site. 2006. Economic Page.  Asharq Alawsat Newspaper Web site. http://www.aawsat.com /details.asp?section=43&article=362473&issueno=10025. Riyadh. Viewed 9 December 2010.

English, J & Moate, B. 2009.Discovering New Business Opportunities, Crows Nest NSW: Allen & Unwin. 

Ministry of Commerce & Industry Web site.2010. Home Page. Ministry of Commerce & Industry. http://www.mci.gov.sa/. Riyadh . Viewed 11 December 2010.

Saudi Standards, Metrology and Quality Organization Web site, 2010. Home Page. Saudi Standards, Metrology and Quality Organization. http://www.saso.org.sa/. Riyadh. Viewed 9 December 2010.

Samsung web site. 2010. Home Page. Samsung Web site. http//: www.sumsung.com.  Viewed 17 December 2010.

The Centennial Fund Website, 2010. Home Page. The Centennial Fund Website. http://www.tcf.org.sa. Riyadh. Viewed 11 December 2010.