Detailed Business Case: Strategic Assessment of Fire Extinguisher Ball

This business case presents a strategic assessment for the development and marketing of fire extinguisher balls, a lighter and cheaper alternative to traditional fire extinguishers. It addresses the problem of rampant fires and ineffective existing solutions, highlighting the benefits of the fire extinguisher ball in terms of ease of use and cost-effectiveness. The analysis includes a strategic response, evaluating different options for manufacturing and marketing, with a recommendation to sell the product as a stand-alone item. The project options analysis considers stakeholder impacts, social, environmental, and economic factors, as well as financial viability and risk. The deliverability of the recommended solution is discussed, covering commercial, financial, management, and delivery aspects, with a total project cost estimated at $75 million and an expected profit of $15 million.

Business Case Title
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STRATEGIC ASSESSMENT

Contents
Executive summary...........................................................................................................1
1. Part 1 Problem.............................................................................................2
1.1 Background....................................................................................................2
1.2 Definition of the problem...............................................................................2
1.3 Evidence of the problem.................................................................................2
1.4 Timing considerations....................................................................................3
1.5 Consideration of the broader context.............................................................3
2. Part 2 Benefits.............................................................................................4
2.1 Benefits to be delivered..................................................................................4
2.2 Importance of the benefits to Government.....................................................4
2.3 Evidence of benefit delivery...........................................................................4
2.4 Interdependencies...........................................................................................5
3. Part 3 Strategic response.............................................................................................6
3.1 Method and criteria........................................................................................6
3.2 Strategic options analysis...............................................................................6
3.3 Recommended strategic option......................................................................9
4. Part 4Project options analysis......................................................................................10
4.1 Project options considered............................................................................10
4.2 Stakeholder identification and consultation.................................................10
4.3 Social impacts...............................................................................................11
4.4 Environmental impacts.................................................................................11
4.5 Economic impacts........................................................................................11
4.6 Overall evaluation of socio-economic and environmental impacts.............11

4.7 Financial analysis.........................................................................................12
4.8 Risk comparison...........................................................................................12
5. Part 5: Deliverability of recommended solution..........................................................13
5.1 Details of recommended solution.................................................................13
5.2 Commercial and financial............................................................................13
5.3 Management.................................................................................................16
5.4 Delivery........................................................................................................17

Executive summary
The business case presented herein details a business idea hat aims at producing fire
extinguishing equipment that resembles balls. The equipment will have the advantage of
being light hence it can be used and carried by small children as well as older people. The
equipment will also be quite cheaper as compared to the current equipment used by fire
fighters. The amount required for this project is a total of $75 million on the upper limit,
while the estimated profit is $15 million. The product will be sold as a stand-alone item and
will be advertised in public media platforms such newspapers and television.relevant
stakeholders in this project will be customers, the management, shareholders and the
government.
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1. Part 1 Problem
1.1 Background
Fires have become a very rampant problem in the society today. In numerous
instances, fires have caused severe damages to people, animals, plants and property.
Lack of effective measures to counteract the fires has made it hard to put out fires.
The solution presented here is the manufacture and promote the use of fire
extinguisher balls to put out fires. Currently, the extinguishing systems used include a
fire extinguishing cylinder filled with gas. The cylinders have failed to serve as the
most effective extinguishing method, hence the need for development and marketing
of a better extinguishing system.
1.2 Definition of the problem
The damage caused by fires cuts across the society, affecting families, property
owners, causing loss of lives and emotional problems. This is an ongoing problem
since fires are still an integral part of the world. Lack of an effective fire
extinguishing system has caused harm and loss of property and lives.
1.2 Evidence of the problem
Very fierce fires have been experienced within the last few years. Some of the
most devastating fires include:
 The 1283 fires witnessed between January 1, 2018 through May 20, 2018 that
burned 7946 acres of land (Fire Statistics, 2018).
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 1049 fires between January 1, 2017 and May 20, 2017 that destroyed 22492
acres of land (Fire Statistics, 2018).
 1336 fires experienced in California within the past 5 years destroying a total
of 10984 fires (Fire Statistics, 2018).
1.3 Timing considerations
The problem of fires needs to addressed with urgency in order to reduce the
effects of the fires on people and property. Some of the reasons why the fire extinguisher ball
needs to be developed is because of:
 Lack of information on how to use the fire extinguisher cylinders
 Government regulation limiting use of fire extinguisher cylinders
 High cost of fire extinguisher cylinders
1.4 Consideration of the broader context
Manufacture and marketing of fire extinguishing balls may help to also
promote use of gas and other forms of energy such as electricity without fear of fires.
Thus, this technology will promote utilization of clean energy as it may be sold at gas
stations alongside gas cylinders or installed together with electricity in homes.
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2. Part 2 Benefits
2.1 Benefits to be delivered
Fire extinguisher ball is a fire safety equipment that has been employed for
extinguishing the fire in an emergency condition. The fire extinguisher balls can be
used for extinguishing purposes in many buildings, school, and colleges all over the
nation. If a building does not have any fire extinguishing thing in their complexes then
if fire catches then it may ruin the whole building property so using fire extinguisher
ball apart from fire extinguisher is a new idea of reducing such problems. The
government has the strict instruction of using the fire extinguisher in various
industrial, commercial and also in public areas. Due to the high cost of the fire
extinguisher, it hampers the growth of this fire extinguisher in the market. But
nowadays the market has produced low cost and lightweight fire extinguisher ball and
thus the growth of the industry in the market are increasing on a huge amount
2.2 Importance of the benefits to Government
Introduction of this new product will help to meet the break-even point of the
business as the new product will increase sales. Marketing for this new product line
will also enhance general performance of the firm as all other product of the firm will
benefit from this marketing activities (Bai & Sarkis, 2014).
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2.3 Evidence of benefit delivery
To measure the delivery of the fire extinguisher balls, the break-even point of
the business will be observed. The company is expected to hit the break-even point in
six months after rolling out the new product. In addition, the sales volume and the
comparison between the sales revenues and the projected revenue will be employees
in measuring the delivery of the new product. The Net Promoter Score and the number
of customers will also be used in the measurement of benefit delivery (Velasquez &
Hester, 2014).
2.4 Interdependencies
The performance of the benefit delivery will run hand-in-hand with other
aspects such as the extent and costs of marketing. The more the marketing and its
comprehensiveness, the more likely the ability of the company to excel in its new
product (Matzler et al., 2013).
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3. Part 3 Strategic response
3.1 Method and criteria
In coming up with the fire extinguisher ball, the factors used to inform the
decision were a consideration of the mass losses that have been caused by fires, and
the poor management of fires that has been recorded with the use of fire extinguishing
cylinders. The inability to carry around the extinguishers, their high cost and lack of
training on the use of the cylinders advised the need to develop a simper and more
effective fire extinguishing system.
3.2 Strategic options analysis
3.2.1 Strategic interventions
Manufacture and marketing of the fire extinguishing ball will help to increase
the ability to manage fires and reduce the losses that are caused by fire through early
extinguishing of fires with a lot of ease.
Strategic Interventions
Intervention 1 Manufacture of fire extinguishing ball as a stand-alone or tagged to
other products
Intervention 2 Marketing and sale of the fire extinguishing balls on media
Table 1 Summary of potential strategic interventions
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3.2.2 Strategic options
Strategic options
Option 1 Option 2 Option 3
Strategic Interventions Manufacture and
marketing
Manufacture and marketing Manufacture and marketing Manufacture and marketing
Intervention 1 Manufacture of
fire extinguishing ball as a
stand-alone or tagged to other
products
Sell as a stand-
alone at half the
cost of cylinders
Sell as part of electricity
installation package at half the
cost of cylinders
Sell as part of gas cylinders at
two-thirds the cost of cylinders
Sell as stand-alone at similar to
the cost of cylinders
Intervention 2 Marketing and
sale of the fire extinguishing
balls on media
Website, television,
Newspaper &
Magazines
Website, television, Newspaper
& Magazine
Website, television,
Newspaper & Magazine
Website, television,
Newspaper & Magazine
Table 2: Strategic options
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3.2.3 Ranking of strategic options
Strategic options
Option 1 Option 2 Option 3 Option 4 Option 5 Option 6
Sell at quarter
the cost of
cylinders
Sell at half the
cost of cylinders
Sell at two-
thirds the cost of
cylinders
Sell at similar to
the cost of
cylinders
<Insert
description>
<Insert
description>Benefits
Percentage of full benefit to be delivered 90% 80% 80% 75% 0% 0%
Benefit
1
Affordability 95
%
Benefit
2
Effectiveness &
efficiency
85
%
Benefit
3
High sales forecast 75
%
Cost
Estimated capital investment cost
(Range)
$50 mil - $75
mil
$40 mil - $50
mil
$35 mil - $40
mil
$20 mil - $30
mil
$n mil - $n mil $n mil - $n mil
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Estimated operational costs (Range) $35 mil - $40
mil pa
$25 mil - $30
mil pa
$20 mil - $25
mil pa
$10 mil - $15
mil pa
$n mil - $n mil
pa
$n mil - $n mil
pa
Time
(Range) Jan-May Jan-May Jan-May Jan-May mm-mm mm-mm
Risks
Risk 1 Huge loss Lack of raw
materials
competition Huge losses
Risk 2 Lack of raw
materials
competition Huge loss competition
Dis-benefits
Dis-benefit 1 High sales High sales High sales High sales
Dis-benefit 2 New market
entry
New market
entry
New market
entry
New market
entry
Ranking
1-3 1 2 2 3
Table 3: Evaluation of strategic options
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