W6_DI_BUSSINESS ANALYST 3

Problem recognition, definition and evaluation

“Change your water, Change your life”

 

Nowadays, Ionize water is become very popular to replace common mineral water. Base on research in Japan since the 1950, founded that Ionize water improves chronic health conditions as follows:

- Arthritis	- Heartburn	- Chronic fatigue
- Indigestion	- Leg cramps	- High blood pressure
- Poor circulation	- Migraines	- Nausea
- Obesity	- Osteoporosis	- Psoriasis   & stress

Dr Otto Warberg, the Nobel Prize winner for discovering the cause of cancer, explained that no disease can exist in an alkaline environment. Japanese medicine has proven this over the last 15 years. Water Ionizer can restore proper alkaline pH within weeks.

This facts and condition makes good opportunity of Ionizer Water business, so it can make realize physical and financial health.

To start this opportunity, we need calculate the feasibility study and breakeven of the business.

Development of the feasible alternatives

1.       Selling Ionizer water machine (W4 Blog posting)

2.       Selling Ionizer water with invest on Ionizer machine (W5 Blog posting)

3.       Selling Ionizer water with purchase Ionizer water for other makers

Development of the outcomes

In Weeks 6 Blog posting, we will analyst first alternative of business Ionizer Water, that is selling Ionizer water with purchase it from other makers or something like broker.

·         Minimum investment, just connect between buyers and water makers

·         Reachable by common people in Indonesia

·         Low profit but high quantities

·         Low risk

Selection of the acceptable criteria

Using mathematically equation to get NPV and breakeven for each alternative.

Analysis and comparison of the alternatives

Detail data mentioned at table below:

 Table 1: Detail information option 3

NPV Calculation shown in the table:

 Table 2: NPV calculation option 3

From calculation above, next is breakeven chart:

  Table 3: Breakeven chart option 3

  

Selection of the preferred alternative

Base on analyst above, NPV for first option for 6 month is 11,250,000. – IDR with breakeven point between weeks 10.

Conclusion/Performance monitoring and post-evaluation of results

All of three alternatives have been analyzed and the next blog will use decision maker tools to get the best decision on this business. 

Reference: 

         i.      Discover the incredible health benefits, retrieved from: 

http://purepro-water-ionizer.com/incredible_health_benefits.html

       ii.      Biography, The Nobel prize in Physiology or Medicine 1931Otto Warburg, retrieved from: 

http://www.nobelprize.org/nobel_prizes/medicine/laureates/1931/warburg-bio.html

      iii.      William G. Sullivan, Elin M. Wicks, and C. Patrick Koelling (2011), Engineering Economy (15^th Edition), Chapter 6 (p.454)