BUSINESS

PLAN BIOSTAR THE CASSAVA PLASTIC

Aldelia Jerri Ko (008201600051)

Arsyta Dhuha A. (008201600006)
Gracetin Ariella M. (008201600061)
Hulfa Shofi D. R. (008201600071)
Yusuf Raharja (008201600066)

Financial Management | President University

Table of Contents
1.0 Executive Summary ............................................................................ Error! Bookmark not defined.
1.1 Business Objectives ........................................................................ Error! Bookmark not defined.
1.2 Mission Statement ......................................................................... Error! Bookmark not defined.
1.3 Guiding Principles .......................................................................... Error! Bookmark not defined.
1.4 Keys to Success .............................................................................. Error! Bookmark not defined.
2.0 Company Description ......................................................................... Error! Bookmark not defined.
2.1 Ownership ...................................................................................... Error! Bookmark not defined.
2.2 Legal Form ...................................................................................... Error! Bookmark not defined.
2.3 Start-Up Summary.......................................................................... Error! Bookmark not defined.
2.4 Location and Facilities .................................................................... Error! Bookmark not defined.
3.0 Products ............................................................................................. Error! Bookmark not defined.
3.1 Products/Services Descriptions...................................................... Error! Bookmark not defined.
3.2 Competitive Comparison ............................................................... Error! Bookmark not defined.
3.3 Product/Service Sourcing ............................................................... Error! Bookmark not defined.
3.4 Inventory Management ................................................................. Error! Bookmark not defined.
3.5 Warehousing and Fulfillment......................................................... Error! Bookmark not defined.
3.6 Future Products/Services ............................................................... Error! Bookmark not defined.
4.0 Market Analysis .................................................................................. Error! Bookmark not defined.
4.1 Industry Analysis ............................................................................ Error! Bookmark not defined.
4.1.1 Market Size ................................................................................ Error! Bookmark not defined.
4.1.2 Industry Participants .................................................................. Error! Bookmark not defined.
4.1.3 Main Competitors ...................................................................... Error! Bookmark not defined.
4.1.4 Market Segments ....................................................................... Error! Bookmark not defined.
4.2 Market Tests .................................................................................. Error! Bookmark not defined.
4.3 Target Market Segment Strategy ................................................... Error! Bookmark not defined.
4.3.1 Market Needs............................................................................. Error! Bookmark not defined.
4.3.2 Market Trends ............................................................................ Error! Bookmark not defined.
4.3.3 Market Growth .......................................................................... Error! Bookmark not defined.
4.4 Positioning...................................................................................... Error! Bookmark not defined.
5.0 Marketing Strategy and Implementation .......................................... Error! Bookmark not defined.
5.1 SWOT Analysis................................................................................ Error! Bookmark not defined.

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 5.1.1 Strengths .................................................................................... Error! Bookmark not defined.
5.1.2 Weaknesses................................................................................ Error! Bookmark not defined.
5.1.3 Opportunities ............................................................................. Error! Bookmark not defined.
5.1.4 Threats ....................................................................................... Error! Bookmark not defined.
5.2 Strategy Pyramid ............................................................................ Error! Bookmark not defined.
5.3 Unique Selling Proposition (USP) ................................................... Error! Bookmark not defined.
5.4 Competitive Edge ........................................................................... Error! Bookmark not defined.
5.5 Marketing Strategy and Positioning............................................... Error! Bookmark not defined.
5.5.1 Positioning Statement................................................................ Error! Bookmark not defined.
5.5.2 Pricing Strategy .......................................................................... Error! Bookmark not defined.
5.5.3 Promotion and Advertising Strategy .......................................... Error! Bookmark not defined.
5.5.4 Website ...................................................................................... Error! Bookmark not defined.
5.5.5 Marketing Programs .................................................................. Error! Bookmark not defined.
5.6 Sales Strategy ................................................................................. Error! Bookmark not defined.
5.6.1 Sales Forecast............................................................................. Error! Bookmark not defined.
5.6.2 Sales Programs ........................................................................... Error! Bookmark not defined.
5.7 Legal ............................................................................................... Error! Bookmark not defined.
5.8 Milestones...................................................................................... Error! Bookmark not defined.
5.9 Exit Strategy ................................................................................... Error! Bookmark not defined.
6.0 Organization and Management ......................................................... Error! Bookmark not defined.
6.1 Organizational Structure ................................................................ Error! Bookmark not defined.
6.2 Management Team ........................................................................ Error! Bookmark not defined.
6.3 Management Team Gaps ............................................................... Error! Bookmark not defined.
6.4 Personnel Plan ............................................................................... Error! Bookmark not defined.
6.5 Board of Directors .......................................................................... Error! Bookmark not defined.
7.0 Financial Plan ..................................................................................... Error! Bookmark not defined.
7.1 Important Assumptions ................................................................. Error! Bookmark not defined.
7.2 Start-Up Costs ................................................................................ Error! Bookmark not defined.
7.3 Source and Use of Funds................................................................ Error! Bookmark not defined.
7.4 Break-Even Analysis ....................................................................... Error! Bookmark not defined.
7.5 Projections ..................................................................................... Error! Bookmark not defined.
7.5.1 Projected Profit and Loss ........................................................... Error! Bookmark not defined.
7.5.2 Projected Cash Flow ................................................................... Error! Bookmark not defined.
7.5.3 Projected Balance Sheet ............................................................ Error! Bookmark not defined.

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7.6 Business Ratios............................................................................... Error! Bookmark not defined.

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1. Executive Summary
Plastic is not the basic needs or the main needs of humans. As we know, basic
human needs are clothing, food and a place to live. Not in basic necessities, plastic is
an object that is very often used in various activities. A few years ago there were
many drinks that used glass bottles for their packaging, but in this era plastic bottles
are used more often because it is more efficient and cheaper. In its journey, the use of
plastics is increasing and becoming one of the biggest waste products in Indonesia.
With various problems concerning plastic our company "Bio Star" is present to
provide an interesting solution that is plastic made from cassava. Not just a plastic bag
for shopping, our company also produces a variety of innovations that are certainly
environmentally friendly.
The various plastic products we produce are made from natural materials
which will eventually be decomposed. Some of the products we develop are plastic
bags, plastic glasses, plastic bowls, and some other projects that are still in the
planning. Most of our products will unravel after 180 days after usage.
The innovation that we offer will also help Indonesia in the reduction of
plastic waste in our country, reducing air pollution due to the amount of plastic waste
that is difficult to decompose. Because by using our product plastic waste will
decompose by itself after 180 days. With various products that we offer, we invite
every Indonesian people to be aware and willing to take part in preserving nature and
its beauty.
1.1. Business Objectives
 Cultivate awareness and attitude of environmental
 Get profit from "Bio Star" products
 Attract people's attention to help handling plastic waste
 Introducing new innovations from the use of cassava
 Reduce the production of plastic waste
 Opening new job fields
 Welfare of cassava farmers
1.2. Mission Statement
The purpose and inspiration run by Bio Star is to raise public awareness about
the use of environmentally friendly plastics. We are also aware of the government
one of the important factors to influence the community (customers). So from this
business trip we will involve many governments to also take part in raising public
awareness.
At the beginning of the business plan, we marketed "Bio Star" products online
and transactions via transfers. To facilitate our prospective buyers create catalogs in

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 the form of images also in the form of PDF files. We have long term plans to open
stores and expand marketing.
This eco-friendly plastic business plan is inspired also from other countries
such as Australia in its awareness of the environmental aspects. Our marketing
objective is of course to all levels of society, especially for those who always use
plastic-made equipment in their daily activities. In the future we will also plan
marketing to various countries starting from Asia and will be expanded.
1.3. Guiding Principles
 Our Customers
Treat each customer as a friend, engaging them in a cheerful and happy
manner, and they will be a longtime customer.
 Our Suppliers
Treat our suppliers as partners with an interest in ensuring that both our
businesses grow and succeed, and both will.
 Our Products/Services
Deliver a quality product at a reasonable price along with exceptional
customer service and the business will succeed and grow.
 Our Service
Exceeding the level of service we expect to receive from others ensures our
customers will be happy and will help our business grow.
1.4. Keys to Success
Our business is different from the business, which we put forward for the
benefits and impacts on the environment in our country. The issue of plastic waste in
this country opens the opportunity for us to help the problem, also our "Bio Star" take
the opportunity to produce quality plastic products made of cassava and
environmentally friendly.
Besides that we also have some key to success in starting this business:
 Customer Service - Providing a high level of customer service through clear
and frequent communications, flexibility in the way we conduct business and
empowering our customer-service representatives.
 Establish Loyal Customers - Making people feel as though they are our
only customer through personalized communications and going beyond the
call of duty.
 High-Quality Products/Services - Selling only products/services that are of
better-than-good quality. When sourcing products/services, seek out the best
quality.

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  Reputation - Establishing a reputation as an honest business with quality
products/services and excellent customer service.
 Gross Margins - Maintaining gross margins in excess of 50%.
2. Company Description
The name of our company is Bio Star. Bio means Biodegradable and the star means
the quality. The Bio Star will be a locally cassava plastic industry owned and operated by
Aldelia Jerry, Arsyta dhuha, Gracetin, Hulfa Shofi, and Yusuf Raharja. The Eco Star is a
partnership. Our business located in Cikarang, Bekasi, West Java. In there, we have an
office building for production.
The company produce a cassava plastic that has some variation product. The name of
product is star plastic. The company will produce a variety of biodegradable cassava
plastic which are Star Plastic Bag, Star Plastic Cup, Star Transparent Plastic, and Star
Plastic Bowl. This plastic is made from processed cassava starch produced professionally,
so it can produce good quality plastic and environmentally friendly. It use a high
technology produced a plastic that can be safety to eat by animal in the sea.
2.1. Ownership
The BioStar is owned equally by Aldelia Jk, Arsyta dhuha, Gracetin, Hulfa Shofi,
and Yusuf Raharja.
2.2. Legal Form
Bio Star product will have a copyright.
2.3. Start-Up Summary
Prediction of start-up summary will be seen for 3 years operational fore.
2.4. Location and Facilities
Location is a key component for Eco Star. The owner is specifically looking
for this location because demography is suitable for cassava planting. So that the
cassava can grow optimally. The location for producing and doing all activities in an
office at Jababeka, Kabupaten Bekasi, West Java, Indonesia. The length of the land is
about 1282 m2 and the building is 1000 m2. The price is Rp.425.000.000 that we rent
per year. The location is strategic because it is in the industry area.
3. Products
3.1. Products/Services Descriptions
PT. Bio Star pursue the latest in flexible packaging technology. Building
strategic collaboration among material suppliers, machine suppliers, and enterprise
solution to provide our clients with the best products and services. Our products
include:

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 Star Transparent Plastic packaging
PT Bio Star brought to market its innovations in affordable degradable
plastic for social and environmental impact, and brought to market new
environmentally-friendly plastic solutions, STARPLAS® is available as raw
material and as finished goods. The resin for STARPLAS® is produced and
made available through Bio Star.

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 Star Cassava Plastic Bag
Bio Star cassava-based eco bags are the perfect replacement to mitigate
this horrible worldwide epidemic. Star Eco bags are made from purely 100%
bio-based material and it is also widely considered as one of the lowest cost
for cassava-based bioplastic.

 Star Plastic Cup and Bowl

Bio Star is able to produce eco products made from polylactic acid
(PLA) or corn/cassava starch for items such as; straws, clear coffee cups,
salad bowls, condiment containers, etc which is 100% generated from
corn/cassava tarch. This performs much like traditional plastic, however, the
crucial benefit behind it is that they are 100% certified biodegradable and
compostable.

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Why Choose Us?
GLOBAL SCALE PLASTIC PROBLEM
The plastic waste problem has become a global epidemic and increasingly
threatening the existence of Earth and living beings. Some 6.3 billion metric tons of
plastic has entered the global waste stream since large-scale production began in the
1950s, and around 79 percent of that is now in landfills or scattered across the oceans.
HOW ABOUT IN INDONESIA?
Indonesia lies at the heart of the Coral Triangle that its incredibly rich coral
reef ecosystem supports crucial fishery, provide food security for millions and are a
growing draw for tourist. However, Indonesia is the second biggest marine plastic
polluter in the world. Just in Indonesia alone, we are consuming about almost 66
million tons of plastic a day. While traditional plastic take 500 years to degrade, our
products are environmental friendly and has a positive impact to Indonesian farmers.
(3-6 months) have introduced greener solutions for polyethylene, polystyrene, and
polypropylene.
What Can We Do to Reverse the Trend?
PT Bio Star provides the alternative solution to the plastic waste problem
made from waste to worth by offering 100% sustainable disposable packaging and
compostable plastic alternatives. By focusing to replace single-use plastic products,
the company offers star cassava plastic packages, bags, cups and bowl that has passed
Oral Toxicity Test. We are MAJOR supporters of the 3R; and in a perfect utopia
everybody in Indonesia would stop using single-use plastic products – but
unfortunately the mantra of 3R has been preached in this nation for decades without
much success. Thus we believe REPLACING them with non-petroleum based
products would provide a more practical method for customers and businesses to
adopt in order for this nation to break out from this epidemic.

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 The main difference between biodegradable and compostable is the latter
breaks down into “humus,” which provides valuable nutrients to the
soil. Biodegradable products just return to nature, disintegrating or disappearing
completely. This disintegration could take a week or years – another difference with
compostable, where items must break down in a “timely” fashion i.e., one-to-four
months. (The FTC states biodegradable items have “reasonably short period of time”
to break down, which hasn’t been clarified.)
Finally, compostable items must completely break down and not release any
metals or toxins into the compost. Biodegradable products can leave metal residue in
their return to nature.
3.2. Competitive Comparison
PT Tirta Marta (“Tirta Marta”) was established in 1971, as a pioneer in film
based flexible packaging manufacturing. In traditional packaging, Tirta Marta
actively pursues the latest in flexible packaging (traditional plastic) and
biodegradable plastics technologies. Just in the last two years, Tirta Marta, brought to
market its innovations in affordable degradable plastic for social and environmental
impact, and brought to market new environmentally-friendly plastic solutions,
OXIUM® and ECOPLAS®. Median prices range from Rp 50-Rp 5.000/pcs.
Avani provides a game-changing compostable bioplastic made from cassava
starch as well as a full range of sustainable food packaging and hospitality products
made from renewable resources. Price range from Rp 405- Rp 50.000/pcs.
Although we have many competitors in this space, we will set ourselves apart
by solely concentrating on starplus products, offering customized products, providing
eco-friendly food packaging and setting fair prices. Through years of research and
development prior to its launch, Avani have came up with groundbreaking
technology that enables them to replace the otherwise disposable plastic products
which take hundreds and even thousands of years to be decomposed by Mother
nature by using renewable resources made from plants. Parallel to that, as a social
impact enterprise, we are committed to exercise good corporate governance through
our business practices as well as adopting the Triple Bottom Line approach in
assuring the sustainability of our business.
3.3. Product/Service Sourcing
PT Bio Star will be sourced from the tapioca (singkong) from the traditional
cassava farmers in the north, east, and middle district of Lampung, Indonesia and
then process it with the machine. Discuss methods of production or service delivery,
product or service development, quality control, inventory control.
The owner of the business has contacts in these traditional farmers for
purchasing quality cassava and supplies flexibility in payment terms. This in turn
provides some flexibility in the owners’ day to cash flow requirements. Orders of
supplies which are in large weight will be shipped LCL (Less than a Container
Load). All products and supplies will be stored at the factory warehouse. While

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 custom designs will be made on site while the customer waits, the standard selection
of premade designs will be made at the factory office.
3.4. Inventory Management
In order to run the business successfully approximately 90,000 kg inventories
are required. The inventory limited as we manage to maintain product quality and
build customer satisfaction. This inventory will be stored at the factory warehouse.
The owner will utilize shelf to store and organize inventory supplies. Final StarPlas®
products will be kept at the factory warehouse. Since this is a large business with
limited inventory, all inventories will be managed in a spreadsheet.
3.5. Warehousing and Fulfillment
As the business is still growing, PT Bio Star has decided to share
some space of the factory as our small warehouse and hire workers to fulfill
orders and handle inventory.
3.6. Future Products/Services
Plastic bottles are everywhere: from water bottles, to soda bottles,
and even to reusable bottles, every year there are more and more of them
filling up the landfills. We know that they’re not immediately
biodegradable, but how long does it take for a plast ic bottle to really
biodegrade?
Different kinds of plastic can degrade at different times, but the
average time for a plastic bottle to completely degrade is at least 450
years. It can even take some bott les 1000 years to biodegrade! That’s a
long time for even the smallest bottle. 90% of bottles aren’t even
recycled. Makes you think twice about that water or soda, right? Bottles
made with Polyethylene Terephthalate (PET or PETE) will never
biodegrade.
And there are even more reasons to lay off the plastic bottles: about
1.5 million barrels of oil are used every year to make the bottles, and
even more oil is burned transporting them. Based on the problem, our
company has researched and decided to make a cas sava plastic bottle as
our future product, by next year.
3.7. Product Process
The process start from the Tapioca Root, we turn it into a powder by extraction
through the action high temperature and water vapor (tapioca starch), then from here
we actually create plastic resin. Resin is a "solid or highly viscous substance" of plant
or synthetic origin that is typically convertible into polymers. They are often
mixtures of organic compounds, principally terpenes. Many plants, particularly
woody plants, produce resin in response to injury. Next from it we can create many
applications, and then it can be composed and back to planting tapioca process.

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4. Market Analysis
The potential consumption of plastic products in Indonesia is still quite large.
Indonesia, the world's No.2 largest garbage contributor after the first rank was obtained
by China. Of course this is a major disaster for Indonesia to find solutions how to reduce
the amount of plastic waste is very large. With various types of plastic waste will be
difficult to overcome and the potential for increasing plastic waste is very large.
Seen from this problem the producers finally gave the answer by creating a new
breakthrough that is bioplastic. By giving the excess of this product and hope with this
product can reduce the existing garbage problem in Indonesia, as well as acceptable by
society.
4.1. Industry Analysis
4.1.1. Market Size
For the needs of very high plastic. Biostar targets first-year sales of
59,600 units consisting of 4 types of products.
4.1.2. Industry Participants
Major participants include Avani Eco and Greenhope
4.1.3. Main Competitors
o Avani Eco (http://www.avanieco.com/)
Head Office
Jl. Gunung Agung No. 142
Denpasar Barat, Kota Denpasar
Bali - 80117

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 Phone: +62 361 9077 142

Jakarta Office
Bellezza Shopping Arcade
3rd Floor - #350
Jl. Letnan Jend. Soepeno No. 34
Kebayoran Lama, Jakarta Selatan
DKI Jakarta - 12210
Phone: +62 21 3048 5599
Avani was established in the year of 2014 spearheaded by
individuals who strive to be difference makers utilizing technology as a
solution to combat the global epidemic of plastic pollution. Avani provides
a game-changing compostable bioplastic made from cassava starch as well
as a full range of sustainable food packaging and hospitality products
made from renewable resources. Through years of research and
development prior to its launch, Avani have came up with groundbreaking
technology that enables them to replace the otherwise disposable plastic
products which take hundreds and even thousands of years to be
decomposed by Mother nature by using renewable resources made from
plants. Parallel to that, as a social impact enterprise, we are committed to
exercise good corporate governance through our business practices as well
as adopting the Triple Bottom Line approach in assuring the sustainability
of our business.
Avani provides a full range of sustainable alternatives to plastic
which are made 100% from renewable resources. Avani is a one-stop-shop
solution for all eco-friendly needs ranging from shopping bags, F&B
packaging, up until hotel amenities.
o PT. Tirta Marta
Office & Factory :
Jl. Raya Serang km 17.2/43 Cikupa,
Tangerang 15710 Banten – Indonesia
Phone +6221 5960573 (Hunting) / +6221 80681232 Fax +62215960572
Email info@tirtamarta.com / marketing.dept@tirtamarta.com
We are a green technology company with two leading brands:
Oxium (oxo-biodegradable additive) & Ecoplas (cassava based plastic).
We actively collaborate with manufacturers, brand owners, non-
governmental organizations, local & national governments to create
sustainable consumption & production towards a better, greener earth.
Our technology has been widely scrutinized, tested, certified, to
ensure trust and credibility. We do our homework well because we take
our mission very seriously.

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 4.1.4. Market Segments
For bioplastic market segmentation review, there are several factors
that influence market segmentation:
 Geographical variables
Bioplastic is intended for all market circles in Indonesia and
can be found in various regions ranging from urban to rural.
 Demographic variables
Bioplastic is targeted to all circles and can be used for anyone.
 Psychological variables
Bioplastic is aimed at all circles and can be enjoyed by middle
and lower social class. With the benefits to reduce the potential for
increasing plastic waste in Indonesia and also become environmentally
friendly products.
In addition, market segmentation is also supported by mass marketing that
focuses on production, distribution and promotion so that products can be accepted
by the community. And the functions and benefits provided can provide satisfaction
for its users.
4.2. Market Tests
For products already tested with facts that can dissolve in hot water (± 80 º C)
and can decompose within 60 days.
4.3. Target Market Segment Strategy
Growth in this market will be fueled by consumer demand for more
environmentally-sustainable products. In addition to analyses of the overall world
market, you see revenue forecasting of six submarkets to 2023:
o Food
o Food/Non-Food Service
o Beverages
o Personal Care/Cosmetics
o Healthcare/Medicine
o Other biodegradable plastic packaging markets
Our investigation shows business research and analysis with individual revenue
forecasts and discussions.
4.3.1. Market Needs
The problem of plastic waste is being sought. In addition to causing
environmental pollution, plastic waste is also a waste that is difficult to
decompose by nature. To overcome this is now being developed

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 environmentally friendly bag or known biodegradable plastic using tapioca or
cassava basic materials. Minister of Industry Airlangga Hartarto visited a
biodegradable company to see the development of Biodegradable Plastic
innovation or environmentally friendly bag in Balaraja, Tangerang, Monday
(8/5/2017).
The visit was conducted to ensure the readiness of environmentally
friendly pockets industry in producing alternative pouches. According to
Airlangga, the need for plastics and environmental issues and plastic
consumption in the industrial sector have become unavoidable. One sector of
the food and beverage industry depends heavily on the use of plastics,
especially for packaging because of the lighter, more flexible, and cheaper
plastic properties compared to glass and metal materials. "The latest effort by
the government to overcome this is by providing support for the development
of biodegradable plastic, a type of plastic that is readily biodegradable,"
Airlangga said. Based on data from the Ministry of Environment and Forestry,
Indonesia's plastic waste production is around 5.4 million tons per year which
is 14 percent of the total national waste pile.
Most sources of plastic waste come from PET bottles, flexible
packaging, and plastic shopping bags. Until the end of 2016, Indonesia is
listed as the second largest contributor of waste plastic in the sea in the world.
According to Airlangga, in the future, the government will encourage the use
of environmentally friendly bags as packaging plastic. "It needs to be
upgraded to plastic packaging for consumer products such as packaging of
bread, candy, coffee, and now we are pushing regulations for supermarkets to
use environmentally friendly products," said Menperin. Director General of
Chemical Industry of Textiles and Various Kemenperin Achmad Sigit
Dwiwahjono said biodegradable plastic can be one solution to overcome
environmental problems caused by plastic waste because it is much more
rapidly decompose naturally than conventional plastic. "Therefore, the
government encourages the development of this technology," said Achmad.
Biodegradable plastic is a new innovation, the product is a plastic bag.
In the production process, biodegradable plastic does not use
polyethylene or polypropylene, as conventional plastics. Biodegradable plastic
is produced using vegetable base ingredients namely cassava.
4.3.2. Market Trends
Nowadays, plastic is not a stranger to us because it cannot be denied,
the existence of plastic is very helpful human life today. Plastics considered
much more practical, because it is lightweight, durable, and cheap when
compared with wood or metal. Although with all its practicality, plastic leaves
a separate issue related to the environmental impact of plastic capability that
lasts long enough. Even up to hundreds of years. But in this modern era has
been developed the latest innovation that is with the Biodegradable plastic.

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 This unique plastic product is a new innovation, a bag-making company,
straws, and eco-friendly food packs. This manufactures disposable plastics
with 100% biodegradable materials.
This idea is to replace petroleum-based plastic with plastic made from
natural. So did the plastic that Kevin had just drunk. This plastic is made from
cassava starch. This innovative plastic can decompose in less than 90 days and
can even dissolve in warm water.
Other bioplastics products have long been on the market, but the
United Nations Environment Program (UNEP) is skeptical about the industry.
In a 2015 report, the UN agency concluded that bioplastic products tend to be
more expensive and do not play a major role in reducing marine waste.
However, UNEP senior official Habib El-Habr, who works on marine
environmental protection, admits, bioplastics are "innovative solutions" that
can be part of a long-term solution. This proves in the present biodegradable
plastic is very beneficial to the people of Indonesia, which is Indonesia is the
second largest contributor of waste after China.
4.3.3. Market Growth
Overall world revenue for biodegradable plastic packaging will
reach $2.38bn in 2014. Our work profiles leading companies, assessing their
technologies and products. You will see which technologies and organization
hold greatest potential. In particular, we profile these leading 19 companies:
 BASF
 The Dow Chemical Company
 NatureWorks
 Braskem
 Cereplast
 Novamont
 Metabolix
 Kaneka Corporation
 Cardia Bioplastics
 Perstorp
 Natur-Tec
 Biome Bioplastics
 Plantic Technologies
 Teijin
 Corbion Purac

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  Storopack
 Biosphere Industries
 Pregis Corporation
 DaniMer Scientific
In general, a company profile gives you the following information:
 Discussion of a company's activities and outlook
 Recent financial results
 Assessment of recent developments - mergers and acquisitions
(M&A), new products, and collaborations.
 Insight into products in development.
4.4. Positioning
BioStar Co. position itself as a company that supports the importance of
awareness of a clean, plastic-free environment. By creating a new innovation that is
Bioplastic from natural materials.
5. Marketing Strategy and Implementation
5.1. SWOT Analysis
SWOT Analysis of the Biodegradable Plastic Cassava Packaging Market 2013-2023:
o Strengths of the Biodegradable Cassava Plastic Packaging Market
 Biodegradable Plastics Are Renewable
 Biodegradable Plastics Take Less Time to Break Down
 Biodegradable Plastics Are Not Toxic
 Biodegradable Plastics are Easier to Recycle
 Biodegradable Plastics Require Less Energy to Produce
 Less CO2 Release
 Biodegradable Plastic Waste Helps Control the Amount of Carbon
Dioxide Emissions
 Can Be Composted Locally Into the Soil Amendment and Can Be
Fully Biodegradable
 High Awareness of Global Warming Issue
 Contributes Towards Healthier Rural Economies
o Weaknesses of the Biodegradable Plastic Cassava Packaging Market
 Costs Slows the Growth of Biodegradable Plastic Packaging
 Lack of Industrial Biodegradation Infrastructure

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  Lack of Consumer Awareness in Developing Countries
 More Stringent and Effective Government Regulations are needed
 Misconceptions among Consumers
 Costly research and development of new or improved biodegradable
packaging options
o Opportunities in the Biodegradable Plastic Cassava Packaging Industry
Heavier consumer demand for more biodegradable products means
more potential interest from manufacturers who choose to come into
compliance with their customer’s requirements. As fossil fuel becomes
depleted and oil prices rise, the need for biodegradable packaging presents
more of an opportunity as a solution to the problem. As countries promote the
use of biodegradable packaging, such as France requiring plastic bags to
contain 40 percent of their material from vegetable origin, this represents a
possible opportunity for growth. As farmers grow more natural products, such
as sugar cane, corn and bamboo, the cost of materials to make biodegradable
packaging will become more readily available and available at a lower cost.
Or in points:
 Packaging Industry to Boost Global Market as it Takes a Green
Approach
 As fossil fuel becomes depleted and oil prices rise, the need for
biodegradable packaging presents more of an opportunity as a solution
to the problem.
 Growing Consumer Demand Supported by Government Legislations
 This demand will lead to farmers grow more natural products, such as
soy, corn, potato, and cassava, the cost of materials to make
biodegradable packaging will become more readily available and
available at a lower cost.
 Reduce Global Warming Concerns
o Threats Facing the Biodegradable Plastic Cassava Packaging Industry
 Number of Bio-based Chemicals and Supply of Sustainable Feedstock
is Limited
 Confusion Surrounding Price, Performance and Valid Definitions
 Limited Raw Material Suppliers
 Low User Awareness of Renewable Feedstock Derived Products and
Their Benefits
 Small Players Lack Sufficient Research and Development
Infrastructure

BioStar Plastic
18
  Competition from manufacturers that start developing biodegradable
packaging
 Trends towards 'green packaging'
5.2. Strategy Pyramid

Zero
Waste

Develop more Eco

Friendly Product

To Build and Increase Consumer

Awareness and Strong Image of
Biodegradeable Products

5.3. Unique Selling Proposition (USP)

These cassava carrier bags and bottles are called “Bioplastics”. Bioplastics are
defined as plastics made from materials such as corn starch and vegetable fats and
oil, while common plastics are made from natural gas or petroleum. Our product are
made from cassava starch, which biodegrade relatively quickly and don't leave any
toxic residue. In Indonesia, the waves of plastic flooding into rivers and oceans has
been causing problems for years. Waterways in cities become clogged, increasing the
risk of floods, as well death and injury to marine animals who become tramped or
ingest plastic packaging. This product has become an innovative solutions that could
be part of a long-term solution for plastic pollution. These bags and bottle are not
harmful, it quickly dissolve. It can biodegrade in just a matter of months and the bags
disappear almost instantly in hot water, unlike the years required for conventional
plastic to break down. It also gives hope to sea animals, they are no longer choking
or ingesting something that could be hazardous. And the material for the products are
sourced in Indonesia, which can add income of the farmers.
5.4. Competitive Edge
The company will focus on quality plastic on the cassava basics that produced
at a reasonable cost, Compostable and biodegradable Safe to consume for land and
marine animals. Thus our product the advantage we provide compared to other
companies is clear.
5.5. Marketing Strategy and Positioning
The Bio Star utilizes a focus strategy on its market. It will utilize product
differentiation to stand apart from the competition, by producing kind of cassava
plastic that we produced such as

BioStar Plastic
19
5.5.1. Positioning Statement
Bio Star’s goal is able to help the environment with the cassava plastic.
Because of the decomposition process is fast, then our target market of
cassava plastic is for those of them that use the plastic only once, and then the
plastic directly throw to the garbage.
5.5.2. Pricing Strategy
The Bio star primarily utilizes competition based pricing. But even we
put the price based on the competition, we will do the cost production as
minimize as we can. Because basically, cost accounting is important, since the
profitability of individual dishes can vary significantly and will initially
determine the cost of the menu items. We will also closely monitor the Prime
Cost Report which focuses on the controllable expenses of Cost of Goods Sold
and Labor. As a new start-up we can currently control employee cost by hiring
family members who will work for low and reduced wages.
5.5.3. Promotion and Advertising Strategy
The best strategy is word of mouth advertising. When people are happy
with their shares they tell friends. Then we have online advertising. First we
have website as the media for the customer know about the product and the
benefit of using it. Then the second is from social media that we should not
increase our cost. Beside of that there are billionaire of social media user such
as Facebook, twitter, Instagram and so on. So it is the effective and efficient
way to advertise our product and to campaign about how important to using
the cassava bag for the environment. We also will sent the advertising email
for those of our customer that ever bought our product before. We also do the
advertising paper base, such as brochure. It will be spread on the
environmental event like earth day, or car free day.
5.5.4. Website
The Bio Star will have website that identifies who the company is, a
brief history, products provided, and the campaign how important to use the
biodegradable plastic. Our menu, map, and hours of operation will be easily
accessed. The website features case studies with needs and benefit analysis for
the customer. The site will also have links to their social media sites such as
Facebook, Twitter, Instagram, and Pinterest. It is also provides Email and
Contact number for those of customer who want buy our product via on-line.
5.5.5. Marketing Program
Bio Star who has limited budget will actively work such as:
 Creating fliers and brochures and posting in community gathering
places such as Car free day, community centers, farmers markets and
other environmentally centric business.

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20
  Word of Mouth will play an important role
 Online advertising by using social media
5.6. Sales Strategy
Bio Star’s sales strategy efforts will focus on the on-line system. Then we also
want to campaign how important the using of bioplastic itself. Because people may
not know the important is. We will campaign it in the environmental day such as car
free day, or earth day. In that event we will also market our target, so many people
know deeper to our program. In addition Bio Star also give the high quality product
to the customer. After the customer trust to the our product, there will be the word of
mouth which means the customer will tell the other customer how good our product
is, and tell to buy our product.
5.6.1. Sales Forecast
The following table represents the annual sales forecast for the initial 5 years
Variabel Used in the
Cash Flow Forecast 1 2 3 4 5
Unit Sales
Star Plastic Bag
42/28cm x 50cm x 40
micro 1400000 1470000 1543500 1620675 1701709
Star Plastic Cup
16Oz 300000 315000 330750 347288 364652
Star Transparant Plastic
180x290x53mm 250000 262500 275625 289406 303876
Star Plastic Bowl
110x80mm 150000 157500 165375 173644 182326
Total
Unit Sales 2100000 2205000 2315250 2431013 2552563
Sales Per Unit
Star Plastic Bag
42/28cm x 50cm x 40
micro Rp1,600 Rp1,616 Rp1,632 Rp1,648 Rp1,665
Star Plastic Cup
16Oz Rp2,200 Rp2,222 Rp2,244 Rp2,267 Rp2,289
Star Transparant Plastic
180x290x53mm Rp950 Rp960 Rp969 Rp979 Rp989
Star Plastic Bowl
110x80mm Rp2,300 Rp2,323 Rp2,346 Rp2,370 Rp2,393
Total
Sales per Unit Rp7,050 Rp7,121 Rp7,191 Rp7,263 Rp7,336
Variable cost per
unit
Star Plastic Bag
42/28cm x 50cm x 40
micro Rp400 Rp404 Rp408 Rp412 Rp416
Star Plastic Cup
16Oz Rp700 Rp707 Rp714 Rp721 Rp728
Star Transparant Plastic
180x290x53mm Rp300 Rp303 Rp306 Rp309 Rp312
Star Plastic Bowl
110x80mm Rp750 Rp758 Rp765 Rp773 Rp780
Total
Variable Cost per unit Rp2,150 Rp2,172 Rp2,193 Rp2,215 Rp2,237
Nonvariable cost(excluding
depreciation)

BioStar Plastic
21
 Star Plastic Bag
42/28cm x 50cm x 40
micro Rp1,800,000,000 Rp1,818,000,000 Rp1,836,180,000 Rp1,854,541,800 Rp1,873,087,218
Star Plastic Cup
16Oz Rp480,000,000 Rp484,800,000 Rp489,648,000 Rp494,544,480 Rp499,489,925
Star Transparant Plastic
180x290x53mm Rp120,700,000 Rp121,907,000 Rp123,126,070 Rp124,357,331 Rp125,600,904
Star Plastic Bowl
110x80mm Rp250,000,000 Rp252,500,000 Rp255,025,000 Rp257,575,250 Rp260,151,003
Total Nonvariable
cost (ex depreciation) Rp2,650,700,000 Rp2,677,207,000 Rp2,703,979,070 Rp2,731,018,861 Rp2,758,329,049

5.6.2. Sales Progress

o Firstly We will sell 2100000 packs from different types of Bio Star product.
Which sell in national scope.
o To market the products, the Company will use online system like Pre order
system to the customer via our website, or social media. Then later we will use
number of sales agents/brokers that located in Jabodetabek Area.
o We will utilize the Retail software with every sales transaction. With each
purchase the software will record and maintain in its database the customer's
name, address and purchases. This information will be used with our direct
mailing program to focus on our top 50% of customers.
5.7. Legal
o UU No. 1 Tahun 1995 Tentang Perseroan Terbatas (PT)
o UU No. 5 Tahun 1999 Tentang Larangan Praktek Monopoli Dan Persaingan
Usaha Tidak Sehat
o UU No. 8 Tahun 1999 Tentang Perlindungan Konsumen,
o UU No. 25 Tahun 2007 Tentang Penanaman Modal (PMA/PMDN)
o UU No 28 Tahun 2014 Tentang Hak Cipta,
o UU No. 37 Tahun 2004 Tentang Kepailitan Dan Penundaan Kewajiban
Pembayaran Utang,
o Hukum Publik (Pidana Ekonomi/Bisnis)
5.8. Milestones
Table 5.8 Milestones
NO Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
ACTIVITIES Y1 Y1 Y1 Y1 Y2 Y2 Y2 Y2 Y3 Y3 Y3 Y3
1. Launch
Website

BioStar Plastic
22
 2. Innovating
Product
3. Launch
Product
4. Distribute
Product
5. Opening
Branches
5.9. Exit Strategy
Everyone starts a new business expecting success, and many times dreams do
come true. However, there are times when a business idea doesn't prove to be
profitable enough to base a business on, or you've lived your dream and are ready to
move on. We have some exit strategies,
o Forward to family members.
o Sell to other company ("buying and selling").
o Ask our management team to buy the company (management buyout).
o Ask our staff to collect their resources and buy them (employee purchases).
o Sell our shares to business partners or other investors.
o Hold IPO.
o Just close the door and sell the asset (liquidation).

BioStar Plastic
23
 6. Organization and Management
6.1. Organization Structure

Managing
Director
(Yusuf Raharja)

General Manager
(Gracetin) Production
Head
(Arsyta)

Technology and Finance & HR & GA Sales & Purchasing Production

Design Accounting Manager Manager Staff
Marketing
Manager (Budiono)
(Hulfa) (Aldelia)
Manager
(Dini)
(Andini)
Warehouse
Section Head
(Aniono)

Finance & HR & GA Sales &

Accounting Marketing
Staff Staff
(Baandi) Staff

(Hamish)
Warehouse
Section Staff
Security
(Udin)
(Budiono)

Cleaning
service

(Dinaa)

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24
6.2. Management Team
First of all, inside a Bioplastics company there is a very important role that is
Managing Director in charge of managing all employees, where the Managing
Director held by Yusuf Raharja he is a firm and very disciplined figure that makes all
his staff become very disciplined and this is very influential in the system work in this
BioStar company. Then, no less important with the general manager who is so
disciplined and make the team work better every day. Production section is very
important because the goods produced must always be monitored so that what in the
production will produce a good quality product. Warehouse and Purchasing is not less
important also because without warehouse and Purchasing BioStar company will not
run smoothly. Then, Sales and Marketing also play an important role in this company
because if there is no sales and marketing, the goods we produce the marketing runs
less smoothly. Finance and Accounting play a role in managing company budgeting,
without any finance and accounting, this company cannot calculate how the budget
will be issued later. Security guard keep the security around the company and the
existence of Cleaning Service play a role in maintaining cleanliness in this company.
So, everything plays a very important role in the company to smoothen without a
hitch.
6.3. Personnel Plan
All work is, at the moment, produced Bioplastic. Since BioStar co. still
remains in its formative stage and all stock holders' compensation is purely based on
net profit, and currently there is no revenue being generated, there are no salary
expenses. There will be added where and when necessary and in line with success in
penetrating the plan's targeted markets. These salary expenses will absorbed by
BioStar co.
The detail will be shown in below:

PERSONNEL PLAN In Rp,000.00

Number
of person YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Managing Directors 1 96,000 96,960 97,929.6 98,908.9 99,897.98

General Manager 1 72,000 72,720 73,447.2 74,181.67 74,923.49
Production Head 1 48,000 48,480 48,964.8 49,454.45 49,948.99
Production Staff 20 720,000 727,200 734,472 741,816.7 749,234.9
Warehouse Section Head 1 45,600 46,056 46,516.56 46,981.73 47,451.54

BioStar Plastic
25
 Warehouse Section Staff 5 90,000 90,900 91,809 92,727.09 93,654.36

Purchasing Section Head 1 45,600 46,056 46,516.56 46,981.73 47,451.54

HR & GA Manager 1 54,000 54,540 55,085.4 55,636.25 56,192.62

HR & GA Staff 1 36,000 36,360 36,723.6 37,090.84 37,461.74

Finance & Accounting

1 60,000 60,600 61,206 61,818.06 62,436.24
Manager

Finance & Accounting

1 42,000 42,420 42,844.2 43,272.64 43,705.37
Staff

Design and Technology 2 96,000 96,960 97,929.6 98,908.9 99,897.98

Marketing Manager 1 48,000 48,480 48,964.8 49,454.45 49,948.99

Marketing Staff 2 72,000 72,720 73,447.2 74,181.67 74,923.49

Security 8 144,000 145,440 146,894.4 148,363.3 14,9847

Cleaning Service 8 96,000 96,960 97,929.6 98,908.9 99,897.98

TOTAL 1,765,200 1,782,852 1,800,681 1,818,687 1,836,874

6.4. Board of Directors

First of all, Managing Director it is to control and oversee the business
operations and people. The Managing Director of BioStar Company, His name is
Yusuf Raharja. Mr. Yusuf as a leader he is able to steer the company to the most
profitable direction while also implementing their vision, mission and long term
goals. The goal is to ensure the company is constantly moving towards fulfilling its
short-term and long-term objectives and does not diverge forms its strategic
guidelines.
The second, Gracetin as a general Manager she is able to Obtains profit
contribution by managing staff; establishing and accomplishing business objectives.
Not only that, Increases management's effectiveness by recruiting, selecting,
orienting, training, coaching, counseling, and disciplining managers; communicating
values, strategies, and objectives; assigning accountabilities; planning, monitoring,
and appraising job results; developing incentives; developing a climate for offering
information and opinions; providing educational opportunities. Develops strategic

BioStar Plastic
26
plan by studying technological and financial opportunities; presenting assumptions;
recommending objectives. Accomplishes subsidiary objectives by establishing plans,
budgets, and results measurements; allocating resources; reviewing progress; making
mid-course corrections. Coordinates efforts by establishing procurement, production,
marketing, field, and technical services policies and practices; coordinating actions
with corporate staff.
Then, Arsyta as a Production supervisor she is able to Accomplishes
manufacturing staff results by communicating job expectations; planning,
monitoring, and appraising job results; coaching, counseling, and disciplining
employees; initiating, coordinating, and enforcing systems, policies, and procedures.
Maintains staff by recruiting, selecting, orienting, and training employees;
developing personal growth opportunities. Maintains work flow by monitoring steps
of the process; setting processing variables; observing control points and equipment;
monitoring personnel and resources; studying methods; implementing cost
reductions; developing reporting procedures and systems; facilitating corrections to
malfunctions within process control points; initiating and fostering a spirit of
cooperation within and between departments. Completes production plan by
scheduling and assigning personnel; accomplishing work results; establishing
priorities; monitoring progress; revising schedules; resolving problems; reporting
results of the processing flow on shift production summaries. Maintains quality
service by establishing and enforcing organization standards. Ensures operation of
equipment by calling for repairs; evaluating new equipment and techniques.
Then, Aniono as a Warehouse Section she is able to Maintains receiving,
warehousing, and distribution operations by initiating, coordinating, and enforcing
program, operational, and personnel policies and procedures. Complies with federal,
state, and local warehousing, material handling, and shipping requirements by
studying existing and new legislation; enforcing adherence to requirements; advising
management on needed actions. Safeguards warehouse operations and contents by
establishing and monitoring security procedures and protocols. Controls inventory
levels by conducting physical counts; reconciling with data storage system.
Maintains physical condition of warehouse by planning and implementing new
design layouts; inspecting equipment; issuing work orders for repair and requisitions
for replacement. Achieves financial objectives by preparing an annual budget;
scheduling expenditures; analyzing variances; initiating corrective actions.

BioStar Plastic
27
 Completes warehouse operational requirements by scheduling and assigning
employees; following up on work results. Maintains warehouse staff by recruiting,
selecting, orienting, and training employees. Maintains warehouse staff job results by
coaching, counseling, and disciplining employees; planning, monitoring, and
appraising job results. Maintains professional and technical knowledge by attending
educational workshops; reviewing professional publications; establishing personal
networks; participating in professional societies. Contributes to team effort by
accomplishing related results as needed.
Budiono as a Purchasing Section Head is able to maintain records of goods
ordered and received. Locate vendors of materials, equipment or supplies, and
interview them in order to determine product availability and terms of sales.
Aldelia as a HR&GA manager their job description of HR is The Human
Resources Manager guides and manages the overall provision of Human Resources
services, policies, and programs for a company within a small to mid-sized company,
or a portion of the Human Resources function within a large company.
Hulfa as a Finance and Accounting Manager her job description is the
functions of the finance manager position can be considered identical to a treasurer
position, or as a "light" treasurer who has additional analysis responsibilities that
include support of the management team in a variety of operational decisions. This
job description assumes the latter view of the finance manager position. As such, the
finance manager should manage funds in such a manner as to maximize return on
investment while minimizing risk, and while also ensuring that an adequate control
structure is in place over the transfer and investment of funds. Further, the finance
manager engages in financial analysis in such areas as forecasting, budgeting,
engaging in cost reduction analysis, and reviewing operational performance. The
position is considered to be more senior than the financial analyst position.
7.0 Financial Plan

The financial plan will cover the following:

 Required Cost of Start-Up

 Profit and Loss
 Cash Flow

7.1 Important Assumption

All financial plans are based on a number of assumptions.

BioStar Plastic
28
  We hire staff at an estimated hourly rate of Rp 12.500
 Customers purchasing products because of the need of more environmental
friendly products.
 The time-period assumption is uesd. According to this assumption, accounting
reports are assumed to apply to a short time period, usually one year.
Non-Financial Plan assumption:
 The four key assumptions underlying production possibilities analysis are: (1)
resources are used to produce one or both of only two goods, (2) the quantities
of the resources do not change, (3) technology and production techniques do not
change, and (4) resources are used in a technically efficient way.
 Assumption-based planning in project management is a post-planning method
that helps companies to deal with uncertainty. It is used to identify the most
important assumptions in a company's business plans, to test these assumptions,
and to accommodate unexpected outcomes.

7.2 Start-Up Cost

SOURCES OF CAPITAL
OWNERS' INVESTMENT (NAME &
AMOUNT
OWNERSHIP %)
Yusuf Rp. 150,000,000.00

Aldelia Rp.150,000,000.00

Arsyta Rp.150,000,000.00

Grace Rp.150,000,000.00

Hulfa Rp.150,000,000.00

Total Rp.750,000,000.00

BANK LOANS AMOUNT

Rp.3,500,000,000.
Bank 1
00
Bank 2 0.00

Bank 3 0.00

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29
 Bank 4 0.00
7.3 S
Rp.3,500,000,000.
Total
t 00
a
r
t
OTHER LOANS AMOUNT
-
Source
U 1 0.00
p
Source 2 0.00

Total
C 0.00
o
s
t
s

7.4 S
o
u
SUMMARY STATEMENT
r
c
SOURCE OF CAPITAL TOTALS
e
Owners' and other investments Rp.750,000,000.00
a
Bank loans Rp.3,500,000,000.00
n
d
Other loans 0.00

Total Rp.4,250,000,000.00
U
s
e
STARTUP EXPENSES TOTALS
F Rp.2,741,000,000.
Buildings/real estate
u 00
n
Leasehold improvements 0.00
d Rp.1,425,000,000.
Capital
s equipment
00
Location/administration expenses 0.00

Opening inventory Rp.12,000,000.00

Advertising/promotional expenses Rp.10,000,000.00

Other expenses 0.00

Contingency fund 0.00

Working capital 0.00

Total Rp.4,188,000,000.00
Source and Use of Funds

Sources of Funds

BioStar Plastic
30
 IDR
Owners and other investments
750,000,000.00
IDR
Bank loans
3,500,000,000.00
IDR
Total Sources of Funds
4,250,000,000.00

Use of Funds
IDR
Buildings/real estate
7,200,000,000.00
Leasehold improvement -
IDR
Capital Equipment
1,425,000,000.00
Location/administration
expenses
IDR
Opening inventory
12,000,000.00
Advertising/promotional IDR
expenses 10,000,000.00
Other expenses
Contigency fund
Working capital
IDR
Total Use of Funds
8,647,000,000.00

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31