Bay Area Pervious Concrete bayareaperviousconcrete.com (BAPC) is a new firm specializing in the installation of pervious concrete, a product that simultaneously acts as a storm water management system and a hardscape that can be used for driveways, parking lots, and low-traffic roads.
Bay Area Pervious Concrete (BAPC) is a new firm specializing in the installation of pervious concrete, a product that simultaneously acts as a stormwater management system and a hardscape that can be used for driveways, parking lots, and low-traffic roads. The objective of this Managerial Finance and Strategic Management dual project is to assist BAPC’s owner in realizing his goal of becoming the dominant pervious concrete installer in the Bay Area in three to five years.
This paper recommends that BAPC implement a two-pronged strategy: solidify its market share and expand the market it resides in. The finance portion of the project encourages the operational expansion of BAPC, analyzing and recommending the investment in three cement trucks, a yard to store raw materials, and other associated costs. The recommended timeline for this expansion is within the next year, as the project’s net present value proves to be positive in almost any situation, due to the amount of revenue BAPC has already secured for 2012.
This project will work in tandem with the aggressive marketing strategy BAPC will be pursuing in the coming 18 months as part of the strategy portion of the project. It will also ensure BAPC has the ability to meet its growth projections when the firm procures more anticipated commercial jobs in the future. Since BAPC currently outsources its concrete procurement and delivery to other firms, this project will also allow for more control of its own supply chain, making the firm more vertically integrated and potentially more sustainable.