Business Plan assessment piece SCAFFOLD EXAMPLE ONLY

Business Plan assessment piece SCAFFOLD EXAMPLE ONLY

For the AQF9 masters level w constructivist pedagogy emphasis: require greater specialist expertise than AQF7 bachelor level questions and response (with evaluate and create Bloom concepts) e.g., evaluate whether hypothetical markets provide unbiased price estimates, create a comparative advantage problem and solution for your student study group to solve.

The learning outcomes require a slight adjustment to this summative assessment piece to align with the focus on natural resource management hence the focus on building an offshore carbon offset business.

Use your economic understanding and skills to CREATE a (hypothetical) business plan.

Business Plan for the expansion of [ASX company of your choosing] by building a sustainable (in which the business generates revenues to cover all costs) foreign-based carbon offset business in [country of choosing (not Australia)]

Executive Summary

(include the following: summarize the key points (for the company board to consider) of your proposal to construct a carbon offset business in a foreign country of your choice to offset carbon emissions for the ASX listed business of your choice this should be a short summary of the below)

SCAFFOLD A carbon offset project is proposed to be implemented in India to ensure WOW.AX is carbon neutral by 2030. The key points made in this document are. The document is structured as follows

Purpose of the business

(include the following: explain why you should build the offset business in the country of your choice you need to give context e.g., the current carbon emissions of your business per annum)

SCAFFOLD woolworths Australia is committed to CO2-e reduction having set up a solar operation in an attempt to reduce carbon emission intensity (i.e., emitted per square meter https://www.energymatters.com.au/renewable-news/woolworths-solar-power-plan/). But emissions from supermarkets (though reducing) contribute much to wow.ax emissions e.g., in 2016 it was just above 2.5Mtonne CO2-e (https://www.woolworthsgroup.com.au/icms_docs/195403_2018-woolworths-group-sustainability-report.pdf ).

To offset wow emissions an offshore windfarm business (eg in India) will be established to create ACCU equivalents (note that 1ACCU = 1T CO2-e which is priced at about $35 per ACCU https://www.cleanenergyregulator.gov.au/Infohub/Markets/Pages/qcmr/march-quarter-2022/Australian-carbon-credit-units-(ACCUs).aspx#:~:text=The%20reported%20ACCU%20spot%20price%20had%20been%20generally%20averaging%20in,%2435%20after%2023%20May%202022. ).

Industry structure

(include the following: description of the unit of product (e.g., tonne of carbon sequestered per annum for the foreign business), description of typical or main global competitors and industry type (perfect competition, monopoly etc.,), customer profiles and market segmentation (price discrimination, product, price, placement, etc.,), proposed location of business, demand curve (draw demand curve in Australian dollars i.e., use exchange rate, price level/interest rate information), and calculate the price elasticity of demand (explain what this means here).

Indias carbon control industry has the following structure. Supply is characterized by. Demand is characterized by. Price elasticity of demand is. Government intervention affects the industry by. The exchange rate is characterized by.

Business structure

(include the following: calculation of the quantity of carbon sequestration units (as you have defined a unit as in the above) required for your business (this determines the scale of your offset business), explain how you will derive revenue from your carbon offset business)

A windfarm will be built similar to recent ones in India. Names. (ref)

Coal-fire emits 90 times more CO2-e than windfarm power generators thus the savings will be recognized as ACCU equivalents.

Revenue (in the short run)

(include the following: use the demand curve to draw the marginal revenue curve describe your graph in words)

Windfarm generated ACCU equivalents will contribute to a perfectly competitive market the demand curve is characterized by. The marginal revenue is therefore..Costs (in the short run)

There are fixed and variable costs of this offshore operation which are here translated into AUD.

Fixed Costs

(include the following: list of main fixed costs of the carbon offset business for an interval of time)

The fixed costs are approximately

Variable Costs

(include the following: calculate the variable cost for a unit produced)

Variable costs are approximately

Pricing

(include the following: use your knowledge of marginal revenue and marginal costs to estimate a price per unit produced, and explain if you are making an economic profit/loss using the ATC and marginal revenue curves) using the above information the ATC can be estimated and the business will make an economic profit/loss.

Sensitivity analysis

Consider the sensitivity of your economic profit to changes in your estimated demand, fixed and variable costs - use this to estimate an economic profit range for your business.

A sensitivity analysis is now performed changing all variables by +/- 50%

Macroeconomic Analysis

Scenario analysis (foreign stagflation & foreign government and central bank response)

Consider a possible future stagflation in the foreign country the foreign government intervenes and increases taxes on foreign owned businesses to subsidize government spending to increase employment and the central bank increases interest rates to reduce inflation assume interest rates change nominal exchange rates draw a macroeconomic graph reflecting the shifts in ASAD and money supply/demand curves. Explain what might happen to the output for your business and profitability of your business using a mix of ASAD and ATC/MC/MR and other relevant graphs.

If stagflation occurs in India .

Sustainability practice

CO2-e reduction

Identification of externalities and mitigating measures This whole project is a mitigation of CO2-e externalities wow will offset its carbon emissions by. This will contribute to the CO2-e reduction targets of Australia by.

Business viability in the long run

Evaluation of the impact on long-term business viability

For this offshore business to be viable in the long run investment in. will need to occur as well as.

Conclusion

Summarize the key findings and propose next steps to take (based on the above analysis you have performed).

the wow operation needs wow board approval further analysis is required so a pilot team needs to refine the estimates made in this proposal but on balance it appears like a good/bad investment.