Green Tyres case

Green Tyres is a Small & Medium Enterprise (SME) operating in the tyre recycling industry. The company was founded in 2012 with a single operation facility processing 5 tons of tyres per day. Currently, the company employs 75 staff, 60 of them are technicians and engineers. The company currently operates 5 facilities across 4 countries in the Middle East. The company's revenues gradually grew and exceeded 15 million USD in 2019, and net income reaching 3 million USD. Mr. Sameh, the founder of Green Tyres described his vision when he first started the company as "I wanted to benefit from a valuable resource that is thrown away to pollute our environment. We are surrounded by millions of used tyres that are either buried, burnt or sunk in the ocean". He was only 23 when he started the company that specialises in collecting, and recycling of used tyres to produce several valuable outputs such as:

1. Carbon Black Rubber: which is used in sports arenas, coating of equipment, flooring of children playgrounds, and in civil engineering projects such as constructions and road development;

2. Steel Wires: which are compressed, melted, and re-used as input raw material in the steel industry; 3

3. Industrial Oils: which are used as energy source in cement and steel factories to heat production ovens, and are also refined and used as machinery lubricant, raw material in plastic and paint products.

Used tyres are among the largest and most problematic sources of waste today, due to their large volumes, their short durability, and the components in the tyre that are ecologically problematic. The same characteristics which make old tyres a waste problem also make them one of the most recyclable waste materials. As the companys operations are expanding, the need to innovatively manage sustainability becomes a necessity. Complying with different universal and local regulations is not an elective choice. With expansion comes many challenges; some are internal and others are external. The founder is confident that the company will continue to grow, and the recycling industry is yet to witness new entrants

Question 1 (700 word ):

a)Apply the four core elements of business models to the GreenTyres case . (60 marks)

The four core elements of business models :

1- Value propositions: They are the reasons why customers buy the products or services offered by the institution or the commercial project, as the institution seeks to solve customers' problems and meet their needs by providing the proposed value.

2- Supply chain: It is the network or chain that links all the parties that the organization deals with to deliver its product to the final consumer. This chain includes producers and suppliers of all components needed by the facility for production, agencies responsible for marketing and selling the product, distribution centers and retailers.

3- Customer interface: The customer interface is an important component of business models, which is in short the system that the business system uses in an effective way in dealing with customers and forming a relationship with them.

4- The financial model: It is a financial accounting tool dedicated to measuring the company's profits and expenses, allowing it to be used in making decisions in the future and measuring the impact and influences.