RISK & VALUE MANAGEMENT

RISK & VALUE MANAGEMENT

Risk and Value Management

Nature of Business

Barli Tyre Industry Ltd is a manufacture of tyre, located outside the Industrial Centre of Kiel town. It is start-up manufacturing firm with the showroom located at various. The main objective of Barli Tyre Industry Ltd is to manufacture the tyre and sell them nationally and internationally. Despite its own sell, the company also manufacture the tyre in accordance with the order as desired by the customers. Minimum price, customer satisfaction and timely deliver are the principles of the company to sustain in the competitive market.

Barli Tyre Industry Ltd. is a Public Limited Company, with many starting owners with Open shareholding. This is the large-scale industry producing tyres for motorbikes and three wheelers (tempo), four wheelers like car, jeep & delivery van. We produce cross ply & radial tyres (Chiou, 2002, 107).

The tire industry has high- fixed costs, making it extremely difficult to improve returns unless costs are minimize or market share gained. Some suppliers, such as steel manufacturers, are large companies and supply to a wide range of industries; thus, tire manufacturers are not vital to their success in the market, which strengthens supplier power. The quality of the product is crucial to the success of the tire aftermarket, particularly with tire components, as they are integral to the safety of automotive vehicles. However, it is similarly unlikely that suppliers would attempt forward integration here.

Company Goals & Objectives

Produce quality tyres for local use

Capture local markets that are exploit by expensive, quality less foreign tyres

Save national currency

Employment to national forces

Provide quality tyres in low cost

Earn money along with good service

Reduce dependency over foreign product

Market analysis

The United Kingdom Replacement Car & Van Tires market expects to experience moderate growth in 2010 marking, a return to growth after the market decline of 6.1% in 2009. Future forecasts show stronger growth from 2011 onwards with rates of growth increasing each year. The UK Replacement Car & Van Tires market expects to have total revenue of $2,446.9 million in 2010, representing a compound annual growth rate (CAGR) of 1.5% for the period spanning 2006-2010. In comparison, the French and German markets should decline with compound annual rates of change (CARCs) of -0.1% and -1.3% respectively, over the same period, to reach respective values of $2,168.7 million and $4,654.9 million in 2010. The market's volume expects to rise to 29.8 million tires by the end of 2015, representing a CAGR of 2.4% for the 2010-2015 periods. The performance of the market forecasts to accelerate, with an anticipated CAGR of 5.5% for the five-year period 2010-2015, which expects to drive the market to a value of $3,191.9 million by the end of 2015. Comparatively, the French and German markets will grow with CAGRs of 5.3% and 5.9% respectively, over the same period, to reach respective values of $2,814 million and $6,210.2 million in 2015 (Mentzer, 2001, 234-245).

Marketing Plan

Marketing has become a backbone for the survival of any products and services in ...