FEASIBILITY TO BUSINESS STRATEGIC FOR A NEW PRODUCT DEVELOPMENT OF GREENER PLASTIC RESIN (CASE STUDY: RESIN DEVELOPMENT FOR X GROUP COMPANY)

Abstract

As Covid 19 has been rising in the past months, plenty of restriction has been applied in order to limit the spread of the virus. The restriction has also limited economic growth towards plenty of industries, including manufacturers. To survive, a company has to create a breakthrough like what X Group planned on developing a new product that has an environmental value which is greener plastic resin. The initial project is to develop a plastic resin that contains desulfovibrio in order to be able to minimize the lead content in the electrical part specified in automotive component part. In order to finance the project, there are four funding alternatives served, which are capital injection, initial public offering or IPO, strategic alliances, and loan financing. The process of selecting the alternative funding is by analysing each alternative and following as well as comparing the result of the analysis with the company’s policy. Overall, the study reveals that strategic alliances is the most suitable alternative to fund this greener plastic project.