Abdussalam Muhammad

GHANA COMMUNICATION TECHNOLOGY UNIVERSITY (GCTU) 2022/2023 ACADEMIC YEAR BUMG 401 (ENTREPRENURSHIP) LECTURER: MR. EMMANUEL OSSOM FACULTY OF IT. BUSINESS – ABEKA CAMPUS PROJECT BY; NAME : MUHAMMAD ABDUSSALAM INDEX NUMBER:- PROGRAM : Banking and Finance COURSE LEVEL : 400 PROJECT TYPE : Working Across Ghana Industry Project (WAGIP) 1|Page COMPANY: Mckingtorch Africa; a sole proprietor company that focuses on upcycling and recycling of waste plastic bottles and pure water rubbers. 2|Page WAGIP REPORT PROBLEM STATEMENT Inefficient structure on the downstream operational activities of the company. Executive Summary Mission Mckingtorch Africa is a Ghanaian start-up company that has a clear mission to promote environmental sustainability in Ghana by offering innovative solutions to the country's waste management challenges. Their focus on recycling and upcycling of waste plastic bottles aims to create economic opportunities for local communities while contributing to the circular economy of the country. Company & Management The founder of Mckingtorch Africa, Mr. Makarfui Awuku, is an environmental enthusiast, innovator, and lecturer at the entrepreneurship center of Academic City University. The management team has a diverse skill set that includes expertise in environmental sustainability, creativity, innovation, business development, operations, and marketing, allowing them to run the business efficiently and effectively. Services Mckingtorch Africa offers a range of services that revolve around waste management, environmental sustainability, recycling, and upcycling. The company collects waste plastic bottles and pure water rubbers, which they process using creative and innovative recycling facilities to create products such as benches, lip balm, shopping bags, tables, and more. They also engage in 3|Page upcycling, converting the processed waste bottles into high-quality products such as flower vases, home and resident decor, bus shelters, fashion accessories, and Christmas trees. In addition, the company provides consulting services, internship space, volunteering opportunities, and designed plastic waste management bins (in other word, Receptacle Bin). Market The increasing environmental challenges facing Ghana, including waste accumulation, pollution and, deforestation, create a favorable market space for Mckingtorch Africa. The company targets businesses, households, and government agencies that are interested in sustainability goals and prioritize environmental-friendly options in their lives, as well as businesses looking to source sustainable materials for their products. Additionally, the company appeal to those who are interested in reducing waste and supporting the circular economy by recycling and repurposing existing materials. The recycling and upcycling market in Ghana projected to grow at a Compound Annual Growth Rate of 7% over the next five years, offering significant growth opportunities for the company. Mckingtorch Africa caters for psychographic market segment. Thereby, plays an important role in promoting sustainable practices by reducing waste, conserving natural resources, and reducing the environmental impact of production and consumption. Competitive Advantages Mckingtorch Africa's unique selling proposition lies in their innovative approach to waste management, providing value-added products through recycling and upcycling. Their strong commitment to sustainability and community engagement resonates with the growing awareness and demand for environmentally responsible practices. The experienced management team, the 4|Page social enterprise business model, local market knowledge, and strategic partnerships give the company a competitive edge in navigating the market dynamics and capturing market share. Start-up Financing Requirement Mckingtorch Africa is seeking GH₵2,500,000 to support their expansion plans, including equipment purchase, working capital, marketing efforts, and research and development for new product lines. The company is currently running as a sole proprietorship business though, it is open to equity investment, debt financing, or a combination of both, most importantly seeks strategic partnerships with investors interested in supporting sustainable business initiatives in Ghana.. Significantly, the executive summary of Mckingtorch Africa's provides an overview of the company's mission, management, services, market, competitive advantages, and financing requirements. The summary demonstrates that Mckingtorch Africa well positioned to address the growing demand for sustainable solutions in Ghana's waste management industry and is seeking strategic partnerships to support their expansion plans. 5|Page Introduction McKingtorch Africa is a start-up Ghanaian company that focuses on recycling waste plastics to create environmentally friendly products. The founder, Mr. Makarfui Awuku established the company after realizing the detrimental impact of plastic waste on the environment and his personal health challenges with allergies and asthma. The company produces a range of creative products, including lip balm containers, slippers, Christmas trees, shopping bags, transparent receptacle bins, benches, tables, among others. During a meeting and conversation with the manager, the founder and CEO of the company, I got to know that the whole idea of Mckingtorch Africa started within his small home premises at the Zango community in Madina. As he said (the manager), he was just having fun designing a Christmas tree using a structured iron frame and plastic bottles before he came up with the idea of creating a company, then he went ahead to register the company in the following year as Mckingtorch Africa. His reason for registering the company was the acceptance his innovation widely got from his community and neighboring community members including Muslims and Christians irrespective of the creative art that was designed (Christmas tree). He then thought this would be an opportunity for him to venture into environmental sustainability projects, (Where he uses waste plastic bottles and pure water rubbers for creativity and innovations) as he was long passionate about the project. However, currently, there has been a proliferation of entrepreneurs dealing in the same line of business in the country. Although, despite the competition even though the field is not that congested in the market space, Mckingtorch Africa has chosen rigidly persistence with its business model (which is the Social Entrepreneurs business model). 6|Page In Social Enterprise business model. The businesses apply solutions to social problems. The emergence of the model revenue-generating activities has created a new operating model where business principles, market characteristics, and values (competition, diversification, entrepreneurship, innovation, and a focus on the bottom line) co-exist and work with traditional public sector values like responsiveness to the community, openings for academic research, developing and initiating volunteer projects and serving the public interest as whole. Which is essential to the success and effectiveness of the social enterprise business model. However, it was during the meeting, I was able to figure out several challenges currently faced by the company in regard, to the value given to the company’s artworks from the customers and its operations as a whole. The difficulty for the company in fully accessing the market space. High cost of operation especially when the collected plastic bottles are contaminated or stained. Some individuals, if not all, do not value company-created products or innovations because are made out of waste materials. In addition, the country’s Government policy directions are not enough to support waste sustainability; injuries and contamination are sometimes sustained during waste processing. Briefly, the company supply chain, with respect to; upstream, midstream, and, downstream operational activities, including the market orientation needs restructuring. In respect to this specific report, I intend and got the approval to work on the restructuring the downstream operational activities of the company. However, I picked the above as a real business complex problem because restructuring the downstream operational activities, this will help the company to minimize waste, conserve resources, and create new products that have a lower environmental impact. When this restructuring is achieved, I believe that it would help expand the company customer’s base targets, 7|Page also new takes in the transformation of new innovative products line, and skyrocket in attracting a diverse range of customers while still maintaining its core value and unique selling proposition. The solution to this will also give the company a competitive advantage by improving efficiency in the company supply chain and reducing the cost of operation and production, which will enable the company to achieve its business model concept by offering products at a lower price, increasing social participation and, its market share. Failure to solve the problem could affect the company negatively, eroding its sustainability, and leading to a loss of business. The company's reputation as an environmentally responsible and sustainable business could also be tarnished, leading to a loss of customers and clients. Therefore, solving this complex problem is paramount because it will create value for customers/clients of the company and provide a competitive advantage specifically. 8|Page Description of the process involved in solving the problem To address the inefficient structure on the downstream operational activities of the company which is impeding the growth and profitability of the Mckingtorch Africa. I gathered information from various sources such as the company financial statements, their operation reports, a little of market analysis, and feedback from employees and customers before proceeding with our project solution. The descriptions of the processes involved are as follows; First and Foremost, as part of the initiative I offered the present of quality control department in the company in which, I was only successful to find out that the accountant of the company also serves as the Quality Control Personnel because of the size of the company and limited resources. I wanted Mckingtorch Africa to establish a quality control department in the company, but due to the limited resources and the size of the company, the company had to use only what they have to make this offer present. After a bit of our explanation to the manager, he realizes that the company needed to prioritize quality control, even if it meant taking some unconventional measures. Although, despite not having the budget to hire a dedicated quality control personnel, the manger decided to tap into the skills and expertise of the company existing staff. Luckily, I found out that the accountant was more than capable of fulfilling the role because of the passion he has for the job, the way he monitors all the company operations and the extensive knowledge he has for organization. I was thrilled to have him on board and start acting as the accountant and quality control personnel of the company. However, during my analysis and research, I understand that starting a quality control department from scratch is no easy feat, especially for a small start-up company like Mckingtorch Africa. As 9|Page a group with the help of the manager, I searched high and low for the right person to lead this important initiative, but unfortunately, we came up short. That is when I had to get creative. After some brainstorming, I realized that the company accountant has many of the skills and qualities that suit quality control personnel. Despite his initial hesitations, he ultimately agreed to take on the challenge. It was a bit of a gamble with manager and the accountant, but the manager later decided to entrust the quality control efforts to the one person who knew the company inside and out. However, the accountant does not have any formal training in quality control but I believed that his analytical mindset, attention to detail, and deep understanding of the company operations would serve the company well. Fortunately, my initiative paid off, and the accountant quickly proved himself a valuable member of quality control after two (2) weeks of taking the odds. My second initiative was usability testing at Guinness Ghana Achimota (on the Christmas tree they bought from the company) and the University of Ghana Legon (on the benches they bought from the company) to get a deep insight into the company's products from potential customers. Also initiated an exploratory interview during any exhibition and showcase (for the reason that the company often partakes in exhibition programs and showcases as directed in the company’s business model ‘Social Enterprise Model’). Myself, accompanied by the Mckingtorch Africa company manager went to the Guinness Ghana Achimota branch. We were all excited to see how the employees, contractors, and customers interact with the Christmas tree that was installed in the environment of the company and as it beautify the environment space. We were all happy as we moved to the procurement and logistics 10 | P a g e of the company to start our testing exercise. We interviewed the procurement personnel and we were notified that the Christmas tree weaving rope at the base of the frame do get cut whenever they tried to shift the tree position. Fortunately, this initiation was done to mainly gain insight into the usability and effectiveness of the Christmas tree as a product, and to identify any potential areas for improvement. Myself, and the manager figure out a way to improve and restructure the tree frame in order to avoid friction between the weaving ropes and the ground (i.e. raising it above the ground floor). After a few hours of testing at the Guinness Company, Myself, (the problem-solver) and the manager move to the University of Ghana Legon conduct the assignments done at Guinness but on the benches, they bought where we repeat the process with the benches supplied to the university. This time too, we were excited to see how students interact with the benches. The testing and interview went smoothly, and we were able to gather valuable feedback on the benches' design, comfort, and durability. The problem we fished out the area of improvement was that the benches are heavy (they are made of 100% melted pure water rubbers). I proposed to the manager of incorporating a light steel inside the benches bar and then later use the melted rubbers to cover the outer part of the bars (i.e. 40% steel and 60% rubber) which he agreed to and planned to test it during his next project for benches and desk. Fortunately, for us, the company attending an exhibition program and showcase during our initiative exercise. We went ahead and exhibit our plan of exploratory interview at the venue. This time, we were ready with a list of open-ended questions to ask attendees in the exploratory interview exercise. We talked to people from all walk-of-life, from the young children to senior 11 | P a g e citizens at the venue, and listened carefully to their feedback on the company’s mission and its products. At the end of the day, it was exhausting but exhilarated. Although, we gathered a lot of information that will help the company make informed decisions about creativity and product development strategy that could lead to the company growth. Myself and the manager were grateful to all efforts put together to make this happened. Mckingtorch Africa also promised to be committed than ever to create products that not only meets the customers’ need but also have a positive impact on society and at affordable price. The Next description of the process involve in solving the existing of the company was in the supply chain aspect, I advised the company to procure and move materials to their partners premises/working environment prior to its need. I discussed with the manager of the company to redesign and solve the issues in the supply chain aspect of the company's operations. After a thorough analysis of the current system, the team came up with a solution to address the delays in the supply chain process. I proposed that the company should start procuring and moving materials to their partners' premises or working environments well in advance of when they are needed for the reason that the company premises is congested with both new and old plastic bottles. The reason is that mostly the company does sell its excess bottles to some partnering companies but in most cases, when the company is picking up/selecting the bottles it will be moving out. They do end up sending off the newly received bottles while still having the old ones with them (something like First-in, Lastout). The management of the company welcomed this solution and tasked me to develop a plan to implement the new system. I went ahead to develop a detailed plan that included timelines, a 12 | P a g e budget, and the roles and responsibilities of each employee involved in the implementation process. The company successfully implemented the new system. They have started clearing the old bottles while the new bottles are taking the space. The company has started buying some materials in advance which, might be useful in the future (Glues, dozens of ropes, iron rods etc.). The company has started moving the collected plastic bottles right from the collection venue (where the diposers are now asked to do sorting at the disposal area unlike the old system where sorting is made only in the company premises) to any venue they are making their projection prior to the arising need. The company's supply chain process is now much more efficient and streamlined. The company was able to meet the demands of their partners on time, and the partners were satisfied with the improved quality of the company's services. The last exercise I carried out was on the how the company should offer and create more affordable and in market demand products. I didn’t really force on this because, the feedback I collected from individuals and potential customers during the exhibition program we (the manager and I) attended and the usability testing exercise we carried out was used to develop and draft the solution to this problem. After collecting feedback from individuals and potential customers during the exhibition program and usability testing exercise, we sat down, analyze the data and come up with solutions to the problem of creating more affordable and marketable products. We identified common themes, such as price points and design preferences as the main challenge that do have a major influence on this concept. 13 | P a g e Using this information, we brainstormed various ideas and evaluated each one based on feasibility and potential impact. We eventually settled on a plan to collaborate with local artisans in the cultural and art market to give the company ideas in a line of eco-friendly products that will be from locally sourced materials, waste water bottles, and pure water rubbers. I believed that this approach would not only create affordable products but also appeal to customers who value sustainability and support for local businesses. However, to implement this plan, I identified one potential artisan partner and began working with him to develop product designs that aligned with the company's brand and mission, where he advised on making decoration products rather than products like the lip balm in which the customers might probably not derive any utility from it. He also developed a marketing strategy for the company that emphasized the unique and sustainable qualities of its products. Which is, the company's creative products should not be 90% made of waste but at a minimum of 70% and 30% to cut down some steep costs in nullifying the waste materials. As an entrepreneurship student out there trying to solve problem across Ghanaian Industry, I was excited about this solution and believed that it had the potential to create a positive impact on both the company's bottom line and the local community. 14 | P a g e Value of Your Solution and Its Innovation In respect to the challenge identified with Mckingtorch Africa, it appears that an innovative solution would involve improving the research and development aspect of the company through collaboration with stakeholders and innovation in their business model. The solution I presented involves addressing the inefficient structure in the downstream operational activities of Mckingtorch Africa. This initiative involved conducting a usability test on the company's products and gathering feedback from various sources, such as financial statements, operation reports, market analysis, employees, and customers. As a problem-solver, I proposed establishing a quality control department, but due to limited resources, the company used the accountant to serve as the quality control personnel. I also proposed incorporating light steel inside the bench's bar and later using melted rubbers to cover the outer part of the bars. In a nutshell, the solution presented is innovative and valuable, as it helps to identify areas of improvement and develop strategies that can lead to the company's growth and profitability. Nevertheless, this solution creates a sustainable competitive advantage for the company while meeting the increasing demand for environmentally friendly products for the customers. The innovative value created is a recycling program that collect, sorts and processes waste materials to produce reusable materials, process of feedback collections and stipulating the presence of quality control personnel in the company. The estimated commercial value of the solution is substantial and the projections for the future are positive due to increasing environmental concerns and awareness. The category of business idea created is Grounded Value, which it focused on addressing practical challenges and feasible solutions for the company in order to improve the company efficiency, 15 | P a g e also reduce the cost and time taking for operation and, to increase profitability, growth and sustainability of the company towards accomplishing it mission. Value to different stakeholders are as follows; Customers/clients of the company: The proposed solutions will reduce the cost of production, making the innovative products more affordable and accessible to customers. Additionally, the availability of eco-friendly products in the market will increase, which will appeal to environmentally conscious customers. Third-party service providers: The outsourcing of non-core activities such as waste collection, washing, and transportation will create a new revenue stream for these providers. The company itself: The restructuring of the downstream operational activities of the company amend the cost control measures and lean production techniques of the company. Thereby, improving the company inefficiency and reduce costs, increase profitability and sustainability goals. 16 | P a g e Implementation of Your Value Created or the Entrepreneurship Stage of your value The implementation of the value created involves delivering it to customers/clients in a desirable way by identifying the necessary resources and mobilizing them. I (the project player) with the help of some employees, played a crucial role in this process, as does the management of the Mckingtorch Africa Company itself and other external stakeholders (Business partners, the customers and suppliers) involved. The network and collaborations we created is also necessary for successful implementation. However, to differentiate the value from similar products of the company in the market, we created a clear unique selling proposition as stated above. We ensure and prove that Customer satisfaction and loyalty can be stipulated by constantly improving the value of innovative products and listening to feedback. Longevity and sustainable competitive advantage can be achieved through constant innovation, cost-effectiveness, and adapting to changing market demands while maintaining quality in the same instance. In essence, by identifying and deploying the required resources to ensure implementation and, the value created must be delivered to customers or clients in a desirable manner. The management of Mckingtorch Africa and other stakeholders, as well as myself, are essential to this process. Continuous innovation, cost-effectiveness, and adjusting to shifting market demands while retaining quality are key to achieving longevity, a lasting competitive edge and, to assure customers pleasure and loyalty in the long-run. 17 | P a g e Threats and Responses The commercialization of the value solution of restructuring the inefficient downstream operational activities created for Mckingtorch Africa may pose certain threats to the company. These threats may include: 1. One major threat is the possibility that the company may not have the resources and expertise to implement to continue implementing these solutions effectively. 2. Competition: Other companies in the industry may copy the innovative value created by Mckingtorch Africa thereby, reducing the company competitive advantage. 3. Technological Obsolescence: As technology advances, the solutions we created for Mckingtorch Africa may become outdated, reducing its value and competitive advantage. 4. Changes in Customer Preferences: Customers may change their preferences, leading to a reduced demand for the solution created by Mckingtorch Africa. To respond to these threats, Mckingtorch Africa is to invest in research and development to stay ahead of technological advancements and changing customer preferences. The company can also diversify its product offerings to reduce reliance on a single solution and create additional revenue streams. Also, there are also several opportunities that Mckingtorch Africa Company can leverage on to ensure the success of their proposed solutions (For instance, leveraging the supply chain of the company and attract new customers by been up to date to the customers’ preferences). In the same context, to ensure sustainable competitive advantage, Mckingtorch Africa should continually assess the market and its customers' needs, and adapt accordingly. The company should also invest in building strong relationships with its Customers to ensure customer satisfaction and 18 | P a g e loyalty. Finally, Mckingtorch Africa should prioritize employee training and development to ensure a culture of innovation and continuous improvement. 19 | P a g e Perform SWOT and competitor analyses  SWOT ANALYSIS OF MCKINGTORCH AFRICA: Strengths:  Specializes in environmental sustainability, recycling, and upcycling of pure water rubbers and plastic bottles.  Strong focus on innovation and sustainable practices.  Access to a network of suppliers and collaborative trait in the industry. Weaknesses:  Limited resources and capital.  Limited brand recognition and market presence.  Limited production capacity.  Dependence on a limited range of products. Opportunities:  Has the potential for expansion into new markets and product lines.  Increasing interest in corporate social responsibility and sustainable practices.  Potential for partnerships and collaborations with other companies in the industry. Threats:  Increasing competition from established companies (e.g Zoomlion;) and new entrants in the market. 20 | P a g e  Fluctuation in raw material prices and availability (e.g Rods, petroleum, water and light bills, etc).  SWOT ANALYSIS OF A COMPETITOR (ZOOMLION COMPANY) Strengths:  Experienced management team: Zoomlion has a strong management team with years of experience in the waste management industry, which has helped the company to maintain a strong position in the market.  Diversified business portfolio: They have a diversified business portfolio, which includes waste management, construction, and agricultural equipment, making it less susceptible to market fluctuations.  Strong brand reputation: The Company has built a strong brand reputation over the years, which has helped the company to attract and retain customers.  Large customer base: They have a large customer base across Ghana, which provides the company with a significant market share. Weaknesses:  Overdependence on government contracts: Zoomlion Ghana's revenue is heavily dependent on government contracts, making it vulnerable to political and economic changes.  Limited financial resources: They have limited financial resources, which has hindered the company's expansion plans and investment in new technologies. 21 | P a g e  Limited geographical reach: There operations are mainly concentrated in urban areas, leaving out potential customers in the rural areas. Opportunities:  The increasing awareness of the need for proper waste management in Ghana provides an opportunity for Zoomlion Ghana to expand its operations and increase its revenue.  Expansion into neighboring countries: The Company could explore expansion opportunities in neighboring countries, leveraging its experience in the waste management industry.  Zoomlion Ghana could invest in new technologies to improve its operational efficiency and reduce costs. Threats:  Intense competition: Zoomlion Ghana do face an intense competition from both local and international waste management companies.  Economic downturns in the country can lead to reduced government spending on waste management, affecting Zoomlion Ghana's revenue.  Changes in Government regulations can affect Zoomlion Ghana's operations and its revenue. 22 | P a g e Constructive Lessons Learnt I must say that, I have learned a lot from this WAGIP project course of Problem-Solving in entrepreneurship. One of my biggest gains was the opportunity to work in a real-world problem and come up with a solution that could potentially create value for a company and its customers. I also learned how to work effectively in a team and directly with stakeholders, though the management of Mckingtorch Africa was showing lack of interest and reluctant at first when I brought the proposal but with commitment and zeal, amid and at the completion of this project everyone was overwhelmed with the achievement accomplished within a short period of time. Thus, leveraging zeal, commitment, motivation, and collaboration fueled with the intention to contribute meaningfully is the most paramount strength to achieving goal. This project was very different from theoretical classroom-based assignments because it required me to apply what I have learnt in the classroom to a real-world situation. This meant that, I had to grapple with ambiguity and uncertainty, and I had to be adaptable and flexible in any approach I make. However, I learned valuable skills such as critical thinking, Problem-Solving, communication, and teamwork. I also had the opportunity to gain real-world experience and insights into the challenges and opportunities that companies face in today's business environment. 23 | P a g e Concluding Remarks and Recommendations In conclusion, this project was able to develop a constructive and efficient downstream operational activities solution to improve product creation and innovation and, growth and profitability of the company facing Mckingtorch Africa. I employed various problem-solving techniques such as action learning and SWOT analysis to come up with an innovative value solution that is cost-effective, efficient, and sustainable. I identified the value proposition and its commercial value of the innovated solutions, the company’s target market, and the resources needed for successful implementation of the created solutions. I also analyzed the strengths, weaknesses, opportunities, and threats faced by Mckingtorch Africa and one major competitor. My gain as a problem-solver include improved teamwork, problem-solving skills, and communication skills. I also gained practical experience in applying theoretical concepts to reallife business problems. However, we faced some challenges such as time constraints and difficulties in obtaining relevant data in some instances, the reluctant behavior of some stakeholders. Compared to theoretical classroom-based assignments, this Working across Ghana Industry project (WAGIP) was more practical and provided me with the opportunity to work with a reallife company and apply theoretical concepts to solve actual problems. I learned how to work as a team, manage time, and communicate effectively with stakeholders and the company. 24 | P a g e Thank You. 25 | P a g e 26 | P a g e