BB is a newly established social enterprise in country X. It was set up by Brenda. Brenda has no experience of running a national business, but she used all her savings to recruit a team of young intrapreneurs. Country X specialises in recycling plastic waste from other countries. It has a dynamic business environment and many businesses have recently failed. Brenda saw an opportunity to recycle low-cost plastic waste into construction bricks. These could be used to help the poorest in society to build waterproof houses. BB recently featured in a government promotion highlighting successful innovators. BB has trialled the method using job production and needs investment to produce its bricks commercially. A large national business, CC, is keen to invest in community projects to improve their corporate social image. CC needs to see a business plan before making a decision. Brenda has started to investigate the costs of production for the business plan that CC has requested. (See Table 1.1.) Table 1.1: Data about BB's costs and methods of production | | Batch production | Flow production | |:--------------------|:-------------------------------------------|:-------------------------------------------| | Purchase cost | $100000 capital cost | $150000 capital cost | | Hire purchase cost | $500 per month over a 20-year period | $600 per month over a 25-year period | | Output | A variety of sizes manufactured to customer preferences | One size of brick used in 80% of house construction | | Manufacturing time | Average 40 bricks per hour | 100 bricks per hour |