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.
Figure 1: Water information
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
- Selling Ionizer water machine
- Selling Ionizer water with invest on Ionizer machine
- Selling Ionizer water with purchase Ionizer water for other makers
Development of the outcomes
In Weeks 4 Blog, We will analyst first
alternative of business Ionizer Water, that is selling Ionizer water machines
without ionizer water.
·
High investment, to purchase Ionizer water machine
from maker.
·
Because of high investment and the machine price is
quite expensive, so the sales target is high market, such us: hospital, company,
corporation, other investor, and high class market.
·
High profit but low quantities
·
High risk
Selection of the acceptable criteria
Using mathematically equation to get NPV and breakeven for each
alternative.
Detail data
mentioned at table below:
Table 1: Detail information option 1
NPV
Calculation shown in the table:
Table 2: Calculation option 1
From
calculation above, next is Breakeven chart:
Table 3: Brekeven Chart option 1
Selection of the preferred alternative
Base on analyst above, NPV for first option for 6 month is 96,840,000. –
IDR with breakeven point in weeks – 11.
Conclusion/Performance
monitoring and post-evaluation of results
For
both alternative 2 and alternative 3 will evaluated on blog posting weeks 5,
weeks 6, and weeks 7 will using decision maker tools to get the best decision
on this business.
Reference:
i.
Discover
the incredible health benefits, retrieved from:
ii. Biography, The Nobel prize in Physiology or Medicine 1931Otto
Warburg, retrieved from:
iii. William G.
Sullivan, Elin M. Wicks, and C. Patrick Koelling (2011), Engineering Economy
(15th Edition), Chapter 6 (p.454)
Good posting, Pak Irawan.
ReplyDeleteWhat I would rather see however is a MINIMUM of two comparisons in one posting.
In other words, you identified 3 alternatives. What you could have done is compared all three alternatives using NPV and BE Analysis....... OR what you could have done would be to have compared each option using NPV, BE, ERR and IRR, which are the 4 FINANCIAL ANALYSIS tools/techniques commonly used for project selection.
Then you could have concluded with an analysis using Multi Attribute Decision Making.....
Bottom line- not a bad posting, but I'd like to see you using as many tools and techniques as possible in your decision making analysis.
BR,
Dr. PDG, back in Jakarta