Cooking Oil Manufacturing Business
Our main rule in business organization (manufacturing) is financial, organizational, marketing integrity. These are general rules, they are used by leading global companies. All these principles are interconnected. We have synergy when 1 + 1 = much more than 2. The integration of tangible and intangible assets should be according to these guidelines:
1. The production of cooking oil should make a profit. The cooking oil business is very old. We have formed a constant demand for edible vegetable oil. On our side: demography (the population of the globe is constantly growing), a young market for raw materials in Ukraine, duty-free trade in cooking oil with the EU market. We are sure that in the near future the demand for our products will increase. Asia increases sunflower oil intake every day
2. The company must optimize taxes & expenses. Taxes. Our competitors regularly optimize taxation. Therefore, we cannot ignore this area of business. In the global market there is a struggle even for 1% of the profits. In Ukraine, a significant role is played by the VAT refund for the exporter. Real economy. We consider it necessary to carefully select employees for the entire work package. Incompetence is expensive. Oil for cooking as a commodity. This is one of the coolest foods: convenient to store and transport. Therefore, investment in cooking oil has a natural advantage
3. Skills team use budget. Revenues must be greater than expenses. We need to coordinate intelligence, skills and assets to achieve synergy. Very often, at the beginning of a business, unexpected expenses begin. Usually these are: excessive expenditures of money during the construction (creation) of an object, an underestimation of the necessary amount of working capital (as when purchasing raw materials for making oil, and as a commodity credit for customers)
4. Ability to use financial leverage & ability to scale food business worldwide. The world's population is growing rapidly. Almost all banks and financial funds invest money in food supply transactions. This is a low margin and low volatility market. To compensate for low margin traders get a good leverage
5. Management should be informed about the latest trends & should be able to analyze the current situation. We must carefully monitor any changes in the world market of vegetable oils. Also compare this information to the domestic market of oils and oilseeds of Ukraine. All actions depend on the specific scale of production and trading conditions.