We have set 6 specific goals, using the S.M.A.R.T. approach*, which we must achieve in a time period of 3 years within the Peruvian market.
These goals are the following:
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Maintain the 100% market share, gained from taking advantage of the first mover situation, for the first three years creating entrance barriers.
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Install on average 2 RVM in each supermarket of all 84 of Supermercados Peruanos, for a total of 168 machines (sold and installed).
The RVM Sell&install business will bring to Tomra, in 1 year, a net profit of $ 1.008.000.
Assumptions**:
a) The average cost of 1 RVM for Tomra is $10.000.
b) The average price of 1 RVM sold by Tomra to supermarkets is $15.000.
c) The insallations costs for each RVM charged to supermarkets by Tomra are $1.000.
d) Net Profit for Tomra for every RVM sold is $6.000.
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Achieve a Gross Profit Margin earned form the recyclable material collected in the RVM of $263.246.760 for the first year and increase it by 20% in the following two years. To set this goal we have created a series of assumptions for the first year, and carried them down for the sequent years.
Assumptions**:
a) 60 % of the population recycles material.
b) Population increases by 1,14% each year.
c) On average: 1,5 recyclable item is used and 0,60 is recycled (increasing 20% each year)
d) Customers “sell” the recyclable unit (RU) to supermarket at $0,10.
e) Supermarkets “sell” the RU to Tomra at $0,15 (net $0,05).
f) TOMRA gains form recycling the RU $0,30 (net $0,15).
4. Goals of Social Value Creation:
- Building a recycling-oriented society.
- Building an efficient collection and recycling system for supermarkets.
- Creating a business model to promote the collection and recycling of waste bottles & cans.
(*) S.M.A.R.T. approach: Objectives have to be Specific, Measurable, Achievable, Realistic & Time-related.
(**) Note: Assumptions are made on personal deductions, considering the difficulty to obtain valid information regarding the company.
Objectives