4 Market Analysis4.1 Market SegmentationThe process of hazardous waste removal and disposal is a necessary cost within thenuclear power industry. While nuclear plants are the only energy industry which takes fullresponsibility for all their wastes, they still use manpower to handle and dispose of thebyproducts. This offers a unique window of opportunity for HRS, Inc.’s services.4.2 Industry AnalysisAfter fulfilling its agreement with the Grand Gulf plant, HRS, Inc. has decided to launchits second implementation at the Browns Ferry nuclear power plant. Currently the plant isthe 5th largest electric plant in the nation and the 2nd largest nuclear plant. With tworeactors operational and a third to resume operation in the near future, this plant offersgreat potential for a partnership between HRS and the plant’s owner TVA. Once theBrown’s Ferry solution is complete, there will be 15 other nuclear plants in the southeastto which we can market our products. From there, HRS, Inc. will expand regionally intoother nuclear power market. Afterwards, HRS, Inc. will broaden the product field toinclude other waste removal services. Figure 4.2a – 2007 Market Breakdown (Nuclear Plants)4.3 Competitive AnalysisCurrently, there will be no competition for HRS as all nuclear waste management is doneon-site by physical labor. HRS offers a unique solution to reduce the threat to peoplewhile increasing the efficiency of the process. As HRS expands into other fields, therewill be some competition. Some of the companies include Resource Services, LLC,Waste Broker, and the Safety-Kleen Corporation. While many of these companies arewell established, they still require people to handle the waste. HRS’s innovative systempossesses a technological advantage in that robots handle the waste instead of people.This will allow HRS to easily expand into these markets until other companies developsimilar technologies. 6 Management6.1 Organizational StructureA management team consisting of Rahul Bhakta, Sakinah Reid, Victor Alfaro, andBrandon Nichols will oversee the day to day operations of the company. Rahul will act asCEO and handle human resource issues while each of the other three will overseedifferent divisions of the company. Sakinah will be in charge of each implementation ofan HRS solution at the client site. Victor will be in charge of the design of each customimplementation for HRS clients. Brandon will be in charge of the company finances andbooks, as well as Sales & Marketing. Each department head will be responsible formanaging the resources and employees in their individual departments. The chain ofcommand is depicted below in Figure 6.1.a.Figure 6.1.a – HRS Chain of Command6.2 Management SummaryAs CEO of HRS, Inc., Rahul’s responsibilities lie in ensuring the company turns a profiteach quarter and ensuring that all divisions of the company operate smoothly andefficiently. Rahul is also the company representative to the public and governmentagencies. Rahul graduated from Mississippi State University in May 2006 with a BS inComputer Engineering.Victor Alfaro is the Vice President of Research and Design. Once a client chooses toimplement a HRS solution, Victor is in charge of designing a customized system for theirapplication. Victor also manages a research team working on methods to improve currentHRS technology and new technologies to expand HRS’s service line. Victor graduatedfrom Mississippi State University in May 2006 with a BS in Computer Engineering.Sakinah Reid is employed as the Vice President of Production. Once a custom solutionhas been designed for a client, Sakinah is responsible for managing a crew to constructthe system and train the client in its operation. Her responsibilities also include follow-upmeetings with the client to ensure 100% satisfaction. Sakinah graduated from MississippiState University in May 2006 with a BS in Electrical Engineering.Brandon Nichols is the Vice President of Sales & Marketing/Finance. His responsibilitiesrange from maintaining company financial records and paperwork to visiting potentialclients to sell HRS solutions. Brandon is also in charge of maintaining the necessarylicenses and filings with government agencies, such as the EPA. Brandon Nicholsgraduated from Mississippi State University in May 2006 with a BS in ElectricalEngineering.6.3 Departmental ManagementHRS plans to employ highly qualified individuals for key management positions to easethe strain on the core management team. The departments that will have divisionmanagers are system implementation, solution design, new product research, accounting,and human resources.6.4 Salary DistributionThe salary positions at HRS will be paid as depicted in table 6.4.a. The numbers listed arean approximation. Positive or negative feedback in quarterly employee evaluations canresult in the expected salary to increase or decrease. Figure 6.4.b shows the salarypercentage by division.Personnel Employees Salary(2007) Salary(2008) Salary(2009) Salary(2010)CEO 1 $100,000 $110,000 $115,000 $120,000Human Resources Total 1 $45,000 $45,000 $50,000 $45,000Manager 1 $45,000 $45,000 $50,000 $50,000Production Total 5 $320,000 $330,000 $355,000 $360,000VP 1 $100,000 $110,000 $115,000 $120,000Client Satisfaction 1 $45,000 $45,000 $50,000 $50,000System Implementation 3 $175,000 $175,000 $190,000 $190,000Manager 1 $75,000 $75,000 $80,000 $80,000Engineers 2 $50,000 $50,000 $55,000 $55,000R&D Total 7 $460,000 $470,000 $505,000 $510,000VP 1 $100,000 $110,000 $115,000 $120,000Solution Design 3 $175,000 $175,000 $190,000 $190,000Manager 1 $75,000 $75,000 $80,000 $80,000Engineers 2 $50,000 $50,000 $55,000 $55,000R&D 3 $185,000 $185,000 $200,000 $200,000Manager 1 $75,000 $75,000 $80,000 $80,000Engineers 2 $55,000 $55,000 $60,000 $60,000Finance Total 6 $340,000 $350,000 $380,000 $385,000VP 1 $100,000 $110,000 $115,000 $120,000Accounting 3 $150,000 $150,000 $165,000 $165,000Manager 1 $60,000 $60,000 $65,000 $65,000CPA 2 $45,000 $45,000 $50,000 $50,000Sales 2 $90,000 $90,000 $100,000 $100,000Sales Team 2 $45,000 $45,000 $50,000 $50,000Total 20 $1,265,000 $1,305,000 $1,405,000 $1,420,000Figure 6.4.a - HRS PayrollFigure 6.4.b – HRS Salary
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