Time Plan

To meet the target of our business plan, Tesco will enter the biofuel industry by performing 2 stages, firstly building the alliances with suppliers and use their manufacturing advantage to produce our biofuel as soon as possible (while our own plant is under construction) and secondly by using our own refinery to produce the biofuel independently.

Stage 1

We are implementing the first stage as opposed to simply waiting for the construction of our own refinery to complete because we wish to become a player in the market at the earliest available opportunity.With the IEA’s statement that global capacity must double by 2020, the UK’s consumption of transport biofuels could increase six-fold between 2010-2020, rising to 6 million tonnes a year, making the next few years key in any company’s attempt to gain a significant market position or dominance.

The preparation for this stage is expected to be completed within a year, from 1 January 2016 to 31 December 2016 so that production can begin in 2017. The type of alliance is called resource venturing.

Tesco will provide the food waste to the supplier, and the supplier will generate biofuel. Both sides use their own competitive advantage. The projected timeline is as follows.

Concept Definition, 1 January 2016 – 29 February 2016;

Output: Concept Design

Initial Planning, 1 March 2016 – 31 March 2016;

Output: Proposal of Alliances

Agreement, 1 April 2016 – 30 April 2016;

Output: Letter of Aggrement of Alliances

Integrating and absorption, 1 May 2016 – 31 October 2016;

Output: Business Process

Production and market trial, 1 November 2016 – 31 December 2016;

Output: Beta Tester

Market launch, 1 January 2017

Figure 17. Capital Management of Tesco's Biofuel Project

Stage 2

The production of the refinery will begin in 2019, the final year of our alliance with Greenergy, and production will begin the following January. The projected timeline for this stage is as follows.

Concept Definition, 1 January 2016 – 30 June 2016

Key Activities: Stakeholder research, market research, background information, risk analysis

Output: Project Brief

Concept Development, 1 July 2016 – 31 December 2016

Key Activities: Technological reaearch, project management planning, human capital development and recruitment

Output: Project Initiation (project planning, business case, risk assessment, project organization

Product Design and Prototype, 1 January 2017 – 30 June 2018

Key Activities: Process designing, concept evaluation, and infrastructure construction

Output: Standard Operating Procedure (SOP), Infrastructure (Refinery), Business Process, Prototype

Product Development and Testing, 1 July 2018 – 30 December 2018;

Key Activities: Product development, testing, monitoring and controlling, demo

Output: Beta tester (Biofuels)

Product Deployment and Lainching, 1 January 2019

Key Activities: Marketing, launching, distribution

The project will not be finished after the fifth stage; but will be followed by extensive monitoring and controlling in production, distribution, sales, and revenue growth.

Capital management is a significant aspect that Tesco has to control in order to maintain the efficiency of the timeline and also reduce any potential delays in the project. The table below shows the characteristics of the stages regarding the capital management.

Time Plan

Stage 1

The preparation for this stage is expected to be completed within a year, from 1 January 2016 to 31 December 2016 so that production can begin in 2017. The type of alliance is called resource venturing.

Tesco will provide the food waste to the supplier, and the supplier will generate biofuel. Both sides use their own competitive advantage. The projected timeline is as follows.

Concept Definition, 1 January 2016 – 29 February 2016;

Output: Concept Design

Initial Planning, 1 March 2016 – 31 March 2016;

Output: Proposal of Alliances

Agreement, 1 April 2016 – 30 April 2016;

Output: Letter of Aggrement of Alliances

Integrating and absorption, 1 May 2016 – 31 October 2016;

Output: Business Process

Production and market trial, 1 November 2016 – 31 December 2016;

Output: Beta Tester

Market launch, 1 January 2017

Figure 17. Capital Management of Tesco's Biofuel Project

Stage 2

The production of the refinery will begin in 2019, the final year of our alliance with Greenergy, and production will begin the following January. The projected timeline for this stage is as follows.

Concept Definition, 1 January 2016 – 30 June 2016

Key Activities: Stakeholder research, market research, background information, risk analysis

Output: Project Brief

Concept Development, 1 July 2016 – 31 December 2016

Key Activities: Technological reaearch, project management planning, human capital development and recruitment

Output: Project Initiation (project planning, business case, risk assessment, project organization

Product Design and Prototype, 1 January 2017 – 30 June 2018

Key Activities: Process designing, concept evaluation, and infrastructure construction

Output: Standard Operating Procedure (SOP), Infrastructure (Refinery), Business Process, Prototype

Product Development and Testing, 1 July 2018 – 30 December 2018;

Key Activities: Product development, testing, monitoring and controlling, demo

Output: Beta tester (Biofuels)

Product Deployment and Lainching, 1 January 2019

Key Activities: Marketing, launching, distribution

The project will not be finished after the fifth stage; but will be followed by extensive monitoring and controlling in production, distribution, sales, and revenue growth.

Capital management is a significant aspect that Tesco has to control in order to maintain the efficiency of the timeline and also reduce any potential delays in the project. The table below shows the characteristics of the stages regarding the capital management.

Gantt Chart

The following table is a Gantt chart, representing the establishment of the project.