SUSTAINABLE BUSINESS

Sustainable Business

Executive Summary

The plan is based on 12 years of experience, and is focused on providing suggestions to San Lu Group of China that will lead the organization to prosperity for its owners and staff. It is based on sales figures and actual sales have been higher. Market research and marketing strategy tailored described herein will result in profit after tax of $ 22,806 in 2009 and increasing to about $ 30,000 after-tax profits within three years, despite significant new spending advertising and renewal. To achieve these objectives, the San Lu Group financing needs of the two phases of expansion. We are seeking $ 15,000 in short-term loans to be repaid within two years. This loan will enable the purchase of a delivery truck, a key element of our new sales strategy and marketing. In early 2010, will require a second loan in the amount of $ 135,000 to build an state-of-the-art melamine plant with all facilities for the local Chinese as well as international consumers. In addition to half the city San Lu Group is not just another source of income but also other sources of sales.

Introduction

San Lu Group is a Chinese dairy products' firm, based in Shijiazhuang, capital of Hebei province. Corporation of the crown was one of the oldest and most major brands of infant formula in China. San Lu is 43% owned by Fonterra of New Zealand.

In September 2008, he was involved in a scandal over adulterated milk powder, which has affected some 294,000 Chinese children and killing of six years. Melamine can cause kidney stones and other complications. He received the Bankruptcy Court of Shijiazhuang, the December 24, 2008, and four of its executives have had long prison terms in January 2009 (www.bplans.com). In December 2005, a joint venture agreement was signed involving dairy cooperative Fonterra of New Zealand, taking 43% of Chinese dairy products by the injection of 864 million yen. The joint venture began trading in 2006.

In February 2006, the group opened a dairy plant in Tangshan with an annual capacity of 200,000 tons of powdered milk formula. At the time of signing the joint venture with Fonterra, the company announced it will invest 3 billion Yuan for growth, the aim of forming a national network of industry over the next three years (www.bplans.com).

In April 2006, San Lu acquired a production base for liquid milk in Weifang (Shandong Province), capable of producing 300,000 tons of milk each year, spending 400 million Yuan. In October of that year, the company has invested a production facility with a capacity of 100,000 tons of lactic acid bacteria and yogurt drink Xinxiang, at a cost of 120 million Yuan.

In 2007, its sales reached 10 billion yen in sales of powdered milk group ranked number 1 for 15 consecutive years, with a market share of 18 percent. The company prides itself on its quality control procedures strictly, with its rigorous testing of their products. San Lu is one of the largest employers in ...