Green Consulting Company

Contents 

1. Executive Summary 1

2. Introduction and Macro Environment 1-2

3. Company 2

4. Organizational Structure 2-3

5. Services 3

6. Marketing Segmentation, Targeting and Positioning 4

7. Strategies 4-5

8. Marketing Mix (7P’s of a Service) 5-6

9. Financial Plan 6

10. Appendix 7

Appendix-1 Casual- Loop Diagram 7

Appendix-2 “ENVISIA Green Solutions” Organizational Structure 8

Appendix-3 Envisia Green Solutions Syllabus 9

Appendix-4 Business Model 10

Appendix-5 Pro- forma Income Statements 11

Appendix-6 IRR 12

Appendix-7 Revenue Calculation 12

Appendix -8 Green Certificate Sample 13 
 
 
 
 
 
 
 

1. Executive Summary

ENVISIA Green Solutions is an environmental consulting and training company with the focus on green leadership. We aim to provide our clients with unique solutions to their green issues.

Green Leadership Concept:

Our company focuses on our 'Green Leadership' concept. We live in an era where the corporate world acknowledges environmental issues as not just social problems but as eminent business risks. Nevertheless, a lot of companies also know that green initiatives can boost business. Over the years we have seen successful companies who have implemented green initiatives to improve their sustainability. Thus present day companies need their leaders to be green leaders.

A leader can be called a ‘Green Leader’ - 

• If he/she can integrate social, environmental and economic factors
• If he/she can differentiate between sustainability initiatives that are effective and have a direct impact on environmental footprint and those initiatives that make the company look good and may be profitable in the short-run, but in the long run are not sustainable.

            Our casual loop diagram will introduce you how our company will work, generate profit and will become successful within a year. See appendix – 1.

2. Introduction and Macro Environment

Environmental pressures such as climate change and Global warming are causing dramatic changes in global policies. Governments from all over the world along with influential institutions are moving companies towards green initiatives.

We arranged micro and macro data relevant to Green Growth according to PEST (Political, Economical, Sociological, and Technological) analysis structure.

Political: “Low carbon Green Growth” is a national Korean vision for next 60 years. Korea is eager to reduce dependence from imported sources of energy and has certified 61 perspective Green Technologies. Policies are being initiated to influence companies towards reducing emissions for next 5 years. A lot of tax benefits and financial support are also being offered for companies that go green.

Economical: Korea aims to spend $ 87 billion for a five-year green growth plan and achieve 5% growth of economy with reduction of pollutions. The Government also plans to create about 700,000 new jobs especially in green businesses.

Sociological: The Government plans to increase health of population and change attitude of Korean citizens to the environment.

Technological: Implementation of new technologies will increase efficiency of industries. Step-by-step Green technologies will fill all niches in daily life of Koreans (Domino effect).

The feature of Korean industrial market is that main Korean conglomerates such as Samsung, Hyundai and SK have huge market share and have own organizational divisions to satisfy its needs in terms of environmental management (R&D, Promotion, Marketing, Financial department). And there is big amount of small and medium businesses that want to follow main tendency of sustainable progress implementing green business concept and green technologies. And so, ENVISIA takes advantage of this exclusive market situation and targets especially SMEs and other midsize organizations that needs their human talent training and professional consultation.

3. Company

Name: ENVISIA Green Solutions.

Vision: Standardization of certified green professionals

Mission: We aim to provide high quality intensive training and professional consultancy to make you a Green Leader.

Values:

1. Green Standard – Promoting a standard for
2. Sustainability
3. Green Leadership

Objectives:

1. Environmental concern
2. Green Standardization
3. Updated service
4. Practical Application
5. Sustainable Progress

4. Organizational Structure

Partners/Consultants: There will be 8 partners. Each partner will also be the Consultant of the company. The partners who will consult will have to undergo a training process or have to have background in Environmental Sustainability strategies, Eco planning etc. There will be one Managing partner and one Joint managing partner. Other partners will be heads of Marketing, HR and Finance departments. There will also be one Korean partner.

There will be 4 main functional departments - Marketing, HR, Finance and Operations. There will be one employee each of these departments. The Operations will consist of 8 employees – 5 full-time Trainers, 2 Researchers and 1 Psychologist. The initial number of trainers will be 5 and as the number of clients increase over time we will recruit more.  See Appendix - 2.

5. Services

Consultancy package for B2B: Improving cost efficiency by following industry proven environment friendly methods, Adding to the sustainability of the company, Emission trading / Carbon funding, Carbon offset planning, Resource and material planning, Quality control, Efficient energy utilization management, Environment friendly office designing etc.

Training Customised package for B2B: We will provide professional intensive environmental training for the company employees during 2 months. The main fields of training include Environmental management, Global environmental issues, Pollution Emissions and GHGs, Environmental law. The main factor of the package is the provision of Green Certificate after Analytical Assessment of the trainees. The package also includes seminars and workshops.

Training package for B2C: We will provide the same certified training package for B2C clients as for B2B explained above. Our B2C clients are Job seekers, Students, Employees seeking to have an advantage of Green Leadership, Universities.

Sample Syllabus: Global environmental issues, Pollution Emissions and GHGs, Business and the environment, Energy and water, Waste management, Logistics with environmental focus, Environmental law, Environmental management. See appendix - 3

Assessment method: analytical assessment with participation of our psychologist can be in form of multiple question tests, in depth interviews and practical simulation tests. 

Course duration: 2 months or 32 hours

Certification: The main value of our services if the Green Certification which was accredited by credible institutions - our partners as UNFCCC and also by universities such as Harvard and Oxford. Certification of Green Professionals aims to be a standard certificate required by companies for the talent recruitment as one of the main advantages of the job seeker. See Appendix 8.

6. Marketing Segmentation and Targeting

Being part of a service industry and providing 2 types of services (training and consultancy), ENVISIA segments and targets its consumer and business market separately.

Business Market Segmentation and Targeting:  ENVISIA segmented its business to business (B2B) market into 4 groups by convenience (geography, language), firmographics (size of company and products made), behavior (price sensitive, delivery sensitive, quality sensitive), and needs (partnership, actual value of service, to be promoted).  According to the above segment groups, ENVISIA’s target clients are Korean SMEs and mid-size companies that make up over 98% of all enterprises in Korea and generate 50% of sales; that are located mainly in Gyenggi-Do Province as it has 32, 718 manufacturing firms (29.5%) and is home to 29.8% of the nation’s SMEs; from the leading industries as Electronics and IT, Fine Chemicals, Bio Industry, and Precision Machinery; that are not price sensitive, but concern with delivery and quality of service; with the needs of partnership and valuable service.

Customer Market Segmentation and Targeting: ENVISIA segments its customer market into 4 different categories: geographic, demographic, psychographic, and behavioralistic. From the above 4 market segments, ENVISIA’s target customer characteristics are: Korean nationals; both female and male; middle age people with middle or high level of income; who are social science, business, and law educated (938,797 students in social science sector in 2008 - 22.3%) or have managerial and administrative positions in company (total number of such employees in 2008 was 23,577). Psycho graphically and behaviorally  ENVISIA targets people with interest in green business and green leadership, with such values as safe environment, ethics, and sustainability, who are ready to use our services and have potential to be our regular clients.     

Positioning: From the above B2B and B2C segmentation and targeting ENVISIA positions itself as a unique organization which provides innovative green solutions to businesses and intensive certified training of green leadership.    

7. Strategies

Service Strategy – Business Model: ENVISIA Green Solutions provides 2 kinds of professional services to its clients. Firstly, ENVISIA gives customized consultancy services to all sizes of organizations to provide them green business solutions at all levels and functions of the firm. The distinctive values which ENVISIA embeds into each of its services are the concept of “Green leadership" and Green Certification which will enhance trust, reliability and confidence in companies that acquire it. Secondly, ENVISIA administers certified intensive training in environmental management and green leadership for businesses and individuals who concern with green sustainable business.

The Unique Selling Proposition which is the foundation of our competitive advantage is that 1) our business clients have a chance to collect carbon points through our training courses and apply for carbon finance; 2) our services improve organizational sustainability through green leadership program; 3) we focus on Asia and Green business environment in Asian countries what enables us to provide more customized services.  See the appendix – 4.

The green consultancy is a unique type of service and it is difficult to determine special strategies which will be implemented during solving problem process. Our company has its own vision according to which all activities, internal or external, and company’s segments (divisions) divided by  ”Abstract Layers” such as “Green Marketing”, “Green practices in HR”, “Green Finance”, “ Green Operations”. Here are a few examples of solutions which might be integrated into various departments of our business client’s.

Green Operations - Minimize pollutions by optimizing and making supply chain green, Technology optimization and Energy saving.

Green Marketing - Developing marketing strategy of Green technology or product, Developing valuable concept of the brand like increasing competitive power, Development of eco-label program.

Green Finance – By reducing emissions, our clients can collect carbon points which can be accumulated over a period of time. Clients will be able to trade these points (Cap and Trade) for economic incentives.  Our clients will also be able to apply for carbon finance by maintaining lower carbon footprints.

Green practices in HR - Green and Healthy lifestyle programs for employees, Company’s culture consolidating Green activities, Creating of Green Atmosphere within a company, Promoting Green Leadership concept to other employees.

8. Marketing Mix (7P’s of a Service)

Place/Distribution Strategy. Being in service industry and especially in such exclusive industry as management training and professional consulting, ENVISIA prefers direct distribution channel to provide its services directly to customers and approaches the clients personally.

Pricing Strategy differs according to type of service provided. Pricing strategy for training services will be package-based: 2 months packages (32 course hours*$40 per hour) for individuals will be charged $1280, and customized packages for businesses will be charged $3000. Pricing strategy for consulting is efficiency based depending on how much money, time and resources our consultants spend for projects. The starting price point for consultancy is 80$ per hour of consulter.

Promotional Strategy. Promotional strategy will insignificantly differ in relation to our target market. ENVISIA will attract business clients through PR promotional strategy, including Media Relations, Media Tour, Special events, Speaking engagements, and Sponsorships. Distinctive feature of Green style promotion for “ENVISIA” will be charitable lectures about implementation of “Green technologies” and “Green Lifestyle”. We plan to communicate to individual customers and educational institutions through Advertising (Print, and Outdoor) and Direct Marketing (E-mails, direct mails).

People strategy consists of 4 elements: employees, management, culture and customer service. The service industry is all about people’s interaction and communication, and so this strategy is essential part of ENVISIA’s business. Strategies in creating leadership, collaboration and innovation will define the ways our employees and management work together and make our company a great place to work. People strategies include excellent people management and development, and workforce planning, mapping and shaping.

Process Strategy for the training service will have 4 steps. Step 1 is Registration for the training contacting our Customer Service. Step 2 is the actual process of intensive training during 2 months. Step 3 is an Analytical Assessment of the clients’ acquired knowledge and skills. If the client passes Step 3, he can go for the final Step 4 that is Green Certification by ENVISIA Green Solutions. If not, ENVISIA is providing additional 1 month review training and then second Analytical Assessment. Process Strategy for consultancy has 4 steps as well. Step 1 is analysis of the client after which it goes to Step 2 that is designing consulting needs. Step 3 is conducting an actual analysis and research. Step 4 is reviewing the project with the clients and providing final feedback.

Physical Evidence. All tangible facilities, what ENVISIA has, demonstrate company’s service and “Green business concept”: comfortable and friendly Green facilities, interactive class and discussion rooms, business cards and brochures, and company’s web page. Every detail has to provide clear understanding of usage Green technologies and shows benefits from using it.

9. Financial Plan

The company is a privately owned limited liability company. Our financial plan is based on conservative estimates and assumptions. We will need initial investment to make the financials work. Each of 8 partners will invest$100.00, so $800.000 is our total start up fund. The majority of our operating expenses are the payroll, marketing and promotion, necessary for establishing brand recognition and generating new business. Our projected Profit and Loss Statement shows the sales forecasting, profit and major expenses. As you can see from Appendix-5, our breakeven point will be achieved on the third year of the business operation and from this point we are going to generate a pure profit. As you can see from Appendix-6, our IRR is 46.9 %. It is annualized effective compounded return rate that can be earned on the invested capital, it’s the point when NPV will be zero and project generated revenue. We showed our first year revenue generation process based on market size and pricing price, and as you can see on the first year we are earning $901,600, we assume our revenue will grow 15 % on the next year, and around 15-25% in the following years (this assumption was made from the analysis of financial statements of major Korean consultancy companies). See Appendix-7

10. Appendix

Appendix-1 Casual Loop Diagram