Biodegradable Plastics Industry’s Business Model and Enterprise Value Analysis - A Case Study

• Main Authors: Nguyen Hong Tam, 阮紅心
• Other Authors: Hann-Tarn Jeng
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/20242436772991598922

碩士 === 國立中央大學 === 財務金融學系 === 101 === Under the influence of environmental pollution, severe waste of resources and other factors, biodegradable plastics industry has been a great concern over recent years. Global biodegradable plastics capacity in 2012 exceeded one million tons. However, affected by product performance, exorbitant prices, etc., the actual demand for biodegradable plastics around the world is only 760,000 tons or so, less than 1% of the overall plastics market demand, revealing a huge market space for biodegradable plastics industry. The case study company was established in 1999, engaged in the research and development of biodegradable plastics, successfully developed “Total Biodegradable Plastics” and received compostable certificates from many countries. Until now the company has received patents in many countries, but it has been losing money for the past several years. This study used PEST to analyze the evolution of external environment to illustrate the development of the industry structure dynamics. Furthermore, this study uses Dr. Hann-Tarn Jeng’s 8+ Business Model and 8+ Finance & Accounting Model as the main analytical method to explore how the company performs under the current business model and how its firm value would change under different scenarios. The results show that the company's current business model needs to be reinvented to fit the possible environmental evolution. Based on the findings of scenario planning, there exists some chance for the company to make a turnaround. But due to lack of funds the company need to have a new business policy to utilized its production capacity increase contribution to offset its high fixed assets costs.