Executive Summary MarocHydro.docx

Executive SummaryOur company name would be MarocHydro sarl. It will be located in Marrakech and Khmissat.Our business consists of a revolutionized farming method of growing plants without soil. In natural conditions, soil acts as a mineral nutrient reservoir but the soil itself is not essential to plant growth. When the mineral nutrients in the soil are dissolved in water, plant roots are able to absorb them. When the required mineral nutrients are introduced into a plant's water supply artificially, soil is no longer required for the plant to thrive. This method is called hydroponics.The two main types of hydroponics are solution culture and medium culture. Solution culture does not use a solid medium for the roots, just the nutrient solution. The three main types of solution cultures are static solution culture, continuous-flow solution culture and aeroponics. The medium culture method has a solid medium for the roots and is named for the type of medium, e.g., sand culture, gravel culture, or rockwool culture. Our business will be specialized in solution culture using continuous-flow solution and medium culture.Our key People are Ouafae Faiz: the General Manager, in charge of managing and coordinating the work process of all managers at MarocHydro. Meriem Benjaafar: the Finance and Accounting Manager. Oumayma Benazzi: the Information System Manager. Sara Naitbach the Marketing and Sales Manager. Houda El Hasnae Bakri: the Human Resource Manager. Maria Noufsani: the Operation Manager.The human population is increasing, and of course the increase in the demand for food species is implied, and estimates claim that food production will need to be doubled in order to compensate. The trouble with this becomes evident upon the consideration of the productivity of current systems of agriculture and fresh water harvesting. Water resources in Morocco are limited, and the sources that do exist impose significant financial extraction costs that the farmers are unable to afford. By using a closed system that recycles more than 90% of the water used, the hydroponics industry has a recognized track record for low water use compared to other agricultural sector. So Moroccos future solution to water scarcity is hydroponics.Our business will adopt a differentiation strategy that aims to develop and market unique products for different customer segments. Moreover, our project has clear competitive advantages, and can sustain an intensive advertising campaign. Our product is unique and special. It is a new technology that will make a revolutionized change in the Moroccan agriculture industry. As the population is continually increasing and water is now a scarce resource, hydroponics are the future for this sector. In addition, crops in hydroponics are less susceptible to be attacked by soil borne diseases. Plants grown in hydroponics systems may be more resistant to diseases. Moreover, the growing period is short for most hydroponically grown crops and, therefore, we can make changes quickly in response to market demands.We chose broad strategy because we are aware of the needs of our segments, and we have the adequate produce that will satisfy them. Our business will ensure the needs and wants of the market. We will attract people who have never heard or been interested in hydroponics. This system will make it easier for us to grow any kind of crops compared to soil based culture.We are targeting various market segments. Hydroponics involve minimizing space and maximizing efficiency to grow plants without soil. The market for this type of produce would be individuals, farmers, plant nurseries, and businesses. Also we target pharmaceutical industry in long term as the consumption of herbal medicines are widespread and increasing. Harvesting from the wild is causing loss of genetic diversity and habitat destruction, so hydroponics were found to be better alternative.We are planning to attract funds from two main sources. The capital structure we will adopt is a 60% Loans and Borrowings, and 40% Equity. We will get loans from different banking institutions like Credit Agricole, and our shareholders will consist of our family members, who are willing to invest in our company in order to help and support the realization of this business. The money collected will essentially serve for the creation of the business, the importation of the equipment and the running of the companys operations. Our sources of revenues will come from the sale of our produce.