This report not only lays out but also analyzes the feasibility of the paper bag manufacturing business as far as this very start up is concerned. King Paper Bag Manufacturing Company is going to be a small start-up by Carry John in Kampala, Uganda by next year-2015. This analysis therefore details the findings by the founder that were collected from his research in Uganda and also goes on to show how feasible the concept of paper bag manufacturing is in a market like Uganda. 1.1
Name of the proposed business
King Paper Bag Manufacturing Company
Name of the founder (or founders)
Summary of the business
The idea is to setup a small paper bag business that is privately owned and is a private limited company to manufacture paper bags mainly to be used as packaging material for various items sold in supermarkets and retail shops. The idea is to manufacture the paper bags that will be available in different shapes and colors, to cater for customer demand. There will be different options of colors available such as green, red, orange, black, grey or white to mention some as shown in the following figures.
The target is to manufacture paper bags to suit customers with a small personal budget. Thus, the paper bags will be of small size and light weight, which will be used as packaging material for various items like food, flour, cereals and grains among others. The company will produce 2,250 paper bags per day. Thus, at such a production rate, the company intends to produce 67,500 paper bags per month (A month is taken to mean 30 days). The company will produce paper of half a kilogram is because the intention is to produce small size and light paper bag. These figures are important given that they determine the financial implications of setting up this paper manufacturing company. Paper bag making process will require (i) a paper cutting machine, (ii) a die-cutter to be used to sketch label lines for paper folding, (iii) a piece of wood needed for folding paper, and (iv)glue needed for gluing the paper bags. 2.
Part 1: Product/Service Feasibility
Issues Addressed in This Part
Manufacturing paper bags is an excellent way of promoting environmental awareness by stating the use of biodegradable containers. Polythene, Plastic, jute and leather bags, although considered as one of the greatest inventions by virtue of their use in carrying items such food, cereals and floor, have become a major element in polluting the environment. Polythene, Plastic, jute and leather bags litter the environment and yet their degradation in nature is very slow (Bell & Cave, 2011) thereby clogging soils making them unsuitable from crop and other plants germination (Klar, Gunnarsson, Prevodnik, Hedfors & Dahl, 2014). They pose a hazard to animals that can get caught in them or accidentally swallow them (Klar, Gunnarsson, Prevodnik, Hedfors & Dahl, 2014). They can clog water channels leading to poor drainage systems and thus flooding of surrounding areas (Whitaker, 2007). According to Whitaker (2007), the Uganda Government has imposed a ban on some of the polythene and plastic bags and it is likely to extend it to all the polythene and plastic carry bags since they create health hazards. The eco-friendly paper carry bag is the only alternative and the Government has started encouraging the setting up of paper bag making units. Since there is lot of demand, paper bag making certainly will be a provider of self-employment.
The increasing environmental degradation concerns about plastic, jute polythene and leather bags means more potential interest in biodegradable products such as paper bags will increase. They may be costly in the beginning but as farmers are encouraged to grow more natural products, such as sugar cane, corn and bamboo, to carter not only for consumption but also to supply raw material for paper bag manufacturing the cost of materials...
References: Bell, K. & Cave, S. (2011). Comparison of Environmental Impact of Plastic, Paper and Cloth Bags. Research and Library Service Briefing Note 1 Paper 36/1123 February 2011.
Johnson, J. S (1979). A Study of the Accuracy and Validity of Purchase Intention Scales. Phoenix, AZ: Armour-Dial C0,, privately circulated working paper.
Nature Design Concepts (2012). Paper Bag Advantage. Retrieved 8 November 2014 from www.naturedesignconcepts.com/paperbagsadvantages.htm+&cd=2&hl=en&ct=clnk
Whitaker, M. (2007). Why Uganda hates the plastic bag. Retrieved 8 November 2014 from http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/6253564.stm
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