The Green Furniture Equipment - Essay Example

GAAFE, the green apparel accessories furniture equipment, is a new company venturing into the global market. It is based in Japan and is the first business of its kind to aim at the international market, although other similar businesses do exist, albeit on a smaller scale at a domestic level. GAAFE involves the collection of non-recyclable and non-biodegradable waste material from homes and factories, and the conversion of that raw material into apparel, furniture, accessories, and other equipment that are environmentally friendly and so help to remove such material from the ecology.

For this purpose, the raw material will be collected on a donation basis from the general public through online and offline advertisement, and designers and artists would be recruited from the target customers to convert that raw material into products. Therefore, the initial investment in the collection of raw materials would be negligible, and most of the investment would be spent on the setting up of retail and flag shops, and the development of websites and other online platforms for interaction between the customers and the business owner. The business is aimed to be launched in three cities simultaneously. The overall budget is estimated to be around $50,000. The following is the chart representing the breakdown of the budget for the venture:

The fluctuation in the exchange rate of the currency as regards foreign currency is a major determinant when choosing international markets for the launch and operation of businesses. The Japanese market is quite volatile in this regard (Reuters, 2011); it is determined that the Japanese Yen has gone from ¥76 to ¥84 about the U.S. dollar in the past six months this year (Reuters, 2011). This is a great increase in the price of the dollar, of more than ten percent (Reuters, 2011), and is a testament to a relatively unstable business environment.