Project Analysis Report: Mobile Scooter Development and Financials

This project analysis report examines the development of a mobile scooter, a start-up business venture focused on creating an innovative and environmentally friendly mode of transportation. The report provides a comprehensive overview of the project, including its objectives, expected outcomes, and benefits, such as portability, sustainability, and cost-effectiveness. It also includes a detailed literature review, market analysis, and a financial model with assumptions, constraints, and risk assessments. The analysis covers cash flow projections, sensitivity analysis, and capital budgeting, culminating in the selection of the best alternative for the project. The report highlights the growing market for electric scooters, emphasizing the shift towards sustainable practices and the potential for the product to attract a significant customer base, especially among teenagers and working professionals. The project aims to capitalize on the increasing demand for fuel-efficient and eco-friendly vehicles, aligning with global trends and government initiatives promoting sustainable development.

Running head: PROJECT ANALYSIS
Project Analysis
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Project Title.....................................................................................................................................2
Development of Mobile Scooter..................................................................................................2
Project Overview.............................................................................................................................2
Objective of the Assessment............................................................................................................3
Expected outcomes and Benefits.....................................................................................................4
Literature Review............................................................................................................................5
Financial Model of Case Project......................................................................................................9
Assumptions..............................................................................................................................10
Constraints.................................................................................................................................11
Risks..........................................................................................................................................11
Cash Inflows and Cash Outflows..............................................................................................12
Financial and Sensitivity Analysis.................................................................................................15
Financial Analysis.....................................................................................................................16
Sensitivity Analysis...................................................................................................................16
Capital Budgeting......................................................................................................................17
Selection of Best Alternative.....................................................................................................17
References......................................................................................................................................18
Appendix........................................................................................................................................21

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Project Title
Development of Mobile Scooter
The assessment deals with a start-up business which would be developing an innovative
type of scooter which would have special features. The business is mainly associated with
development of an innovative product and the project which is planned by the business is
innovative and at the same time environmental friendly. The project is expected to be popular
among the consumers due to the various features which is offered by the product.
Project Overview
The management of the company is trying to start-up a business which would developing
a new brand of scooter which would be innovative and would be including the most advanced
technology. The business which is trying to introduce a new form of vehicle in the market which
does not utilizes non-renewable source of energy and depends on solar power for operating
(Bethune 2017). The management of the company ensures that the new product would
effectively meet the requirements of the consumers and would also be following a fuel-efficient
approach (Nocerino et al. 2014). The project would be focus on promoting sustainability
practices in the business and the product which is considered by the management of the company
is innovative in every aspect. The management guarantees that the new product would be
efficient and would be a useful tool for conserving energy (Brauer et al. 2016). As per the
management of the company, the following features can be expected from the new product
which is being developed by the management of the company.
 The new scooter would not be requiring any type of non-renewable fuel but will be
operating on solar power which makes the product sustainable in nature and a major
towards controlling pollution which are emitted by vehicles (Gopal and Thakkar 2016).

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 One of the key features which makes the product special in relation to normal scooters or
bikes is that it can be folded into small suitcase type of thing. Therefore, this shows that
the product will be portable and light weighted. This also means that you can carry the
product any place you want and not have parking issues. For instance, a college student
can take the scoter with him to the class. This would just be similar to a bag and therefore
is easily portable.
 The new scooter which is being developed would be operating on solar power which
reduced the risks of pollution and systematically reduces the costs of environment license
and parking costs. In addition to this, the battery life of the product would be superb as
the management expects that it can operate 12 hours in a single charge. Moreover, the
scooter can be in 1-hour time in charge mode which would be another advantage of the
product.
 The scooter can also be used as power bank as well for charging laptops, mobile phones.
This is another important feature of the product which makes the product special. In
addition to this, the product would be quite helpful in travel and business environment.
 In addition to this, one of the key feature of this new scooter would be that it would be
light weight and therefore would have a perfect balance which also makes the product
safe.
Objective of the Assessment
The assessment will be undertaking research on innovative product development and how
the same affects the society and the market. The product which the management of the company
is considering is related to automobile sector. As per the management of the company, the new
product would be energy efficient and would be sustainable. The name of the product which is
selected by the management of the company would be Mobile Scooters. The objectives which
can be identified for this assessment are listed below in details:
 The research would be assessing the automobile market and ascertain whether the trends
are favorable for the new products which the management of the company is planning to
introduce in the market.

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 The research would be projecting the start-up costs for the business and also assess
different scenario which are probable for the product which the management of the
company is planning to introduce (Roda et al. 2017).
 The research would be indicating the role of sustainable products in the market and how
the same are important for the shaping the future of automobile market.
Expected outcomes and Benefits
The management of the company which is undertaking the new start-up business is
confident that the product would be able to make a mark in the market. This is anticipated by the
management of the company as emphasis has been shifted from fuel system vehicles to fuel
efficient vehicle. This has been done as the governments are becoming aware of the consequence
which such vehicles have on the environment and ultimately affects the health of the people.
Therefore, the management anticipates that in future the use of electric vehicles would be more
and therefore has initiated the change and have decided to introduced the new product (Zuev
2018). The management of the company anticipates that the new product would be attract the
attention of the customers and especially the teenagers due to the various features which is
offered by the product (Riggs 2018). It is also anticipated by the management of the company
that the product would also appeal to the working class as the same will be portable and easy to
fit in small spaces and even carry the same at work.
The benefits which can be identified for the new product from the point of view of the
management of the company are listed below in details:
 The product would enable the management of the company to target a major group of
customers which can effectively enhance the revenue which is generated by the business
(Fawcett et al. 2018).

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 It is anticipated by the management of the company that the production of mobile
scooters would be cost effective as the same is anticipated to reduce the operating costs
of the business.
 The product would help the management of the company to appropriately follow
corporate social responsibilities of the business.
 Most importantly the new product would not be using fuel which is a big step towards
sustainable development.
Literature Review
At global level, the emphasis on sustainability has reached its highest level and most of
the industries are trying to incorporate sustainable practices in a business for making the business
more efficient (Arjaliès and Mundy 2013). It is also to be noted that the government across the
world are giving a boast to sustainable practices by making it mandatory to follow CSR policies
in a business (Luthra, Garg and Haleem 2015). There have been significant changes in
automobile industry as the market preference shifted from good looking vehicles to fuel efficient
vehicles and vehicles which offers better mileage. This has been seen in scooter or bike industry
as well which is a favorable practice (Garche et al. 2017).
In case of bike or scooter industry a new type of product has been introduced which are
electric scooters which do not require fuel as a source of energy but relies on electricity or solar
power for operating. The product is still in its infancy stage but it is anticipated that the new type
of product would gain prominence in future and would be able to attract consumers in the
market. There are several benefits which can be highlighted with the use of electric scooters such
as environmental efficiency (Requardt 2017). The new product would be sustainable and
therefore, it would be preferable by customers. The global electric scooters market size was
valued at USD 17.43 billion in 2018 and is projected to witness a CAGR of 8.5% during the
forecast period. Declining costs of batteries are also expected to create favourable opportunities

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for companies. Moreover, e-scooters are fuel-efficient, eco-friendly, easy to handle, and compact
in size, which is also boosting their demand. The new products which are offered by the business
would be efficient and energy sustainable (Galatoulas, Genikomsakis and Ioakimidis 2018).
Therefore, it can be established that the new product which the management of the company is
planning to introduce is appropriate and would get demand from the consumers in the market.
Figure 1: (Size of the Industry in USA)
Source: (Grandviewresearch.com. 2019)
The above figure effectively shows that the sale of such innovative bikes or scooter has
increased over the years which shows positive response of the people towards e-scooter bikes.
The figure above shows different varieties of scooter which is introduced in the market (Wu and
Wang 2013). The above analysis also shows that sales and demand for folded scooters have
increased significantly in 2018 and the same is anticipated to increase further in the years to
come. There has been a constant demand for change and modernization in automobile industry
(Kumar and Rahman 2016). This has led to development of new and innovative products in the

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market which has attracted the attention of the customers (Paetz et al. 2013). It is to be noted that
development of such scooters has required significant investment in innovative approach and
also development of energy efficient battery so that the new vehicles can meet transport
requirements of the customers. In addition to this, the new scooters have also been efficient in
terms of energy consumption of electricity which has further enhanced the demand of the
product in the market.
The global market can be categorized by voltage into 24V, 36V, 48V, and greater than
48V. The 36V segment accounted for 62.7% of the overall revenue in 2018. The new product
has been introduced in some states with different category of voltage consumption and the same
is introduced considering the needs of the customers.
Figure 2: (Voltage Consumption of the Vehicles)
Source: (Grandviewresearch.com. 2019)
The above figure effectively shows the sales on the basis of energy consumption by the
vehicle and the figure effectively shows that the maximum sales has been achieved for 36V

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model which shows the popularity of the product in the market which is further expected to
enhance in future (Kilian and Hennigs 2014). The main reason due to which the product is
deriving a push in the market of automobiles is because the product supports sustainability
practices and reduces the emission of carbon and greenhouse affecting gases in the atmosphere.
Therefore, the environmental factors are the major consideration as to why the government
across the globe is also supporting the e-scooter project.
Therefore, the project which is undertaken by the management of company is appropriate
considering the market prospects of the project. Therefore, it can be appropriately estimate that
the new proposal of introducing Mobile scooters in the market would attract customers and
would also lead appropriate earnings for the business (van Boven et al. 2017). In order to
properly set up the business, the management of the company needs to conduct market surveys in
order to analysis the market conditions and then invest appropriately on promotion and
advertisement of the product so that the product is well recognized when the same is introduced
in the market. The management of the company needs to follow the approaches of established e-
scooter businesses such as Bird and lime. As per the estimates which are available for both lime
and bird, the companies combined made a sale of 10 million rides in 100 cities since the year, the
product was launched. This shows that the market is favorable for the new product and therefore
the management of the company can anticipate the same sales which is achieved by bird and
lime.

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Figure 3: Sales of Scooter in Different region of USA
Source: (Medium. 2019)
The sales which is achieved for scooters which are run by electricity is shown to be much
more than Dockless bikes which shows the demand for the product in the market of USA. The
sales are shown to be maximum in Austin which shows that the preference of the consumers is
changing and they are preferring the new e-scooters which has been introduced in the market. On
the basis of these factors, it can be said that the business plan which is on introducing Mobile
Scooters would be successful in the market.
Financial Model of Case Project
The financial model of the case Project was developed with the help of the financial
projection for the company for the five-year trend period. The financial model for the company
for the trend period will be covering various projections and forecasts about the company. The .
rates, inflation projection and the life of the project. Risks and return are some important part of

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the financials that were taken into consideration for the proposal that will be taken by the
company for the purpose of analysis.
Assumptions
There are various assumptions that were taken by the management of the company for the
purpose of analysis. It is important that were various factors are well taken into analysis for the
purpose of preparation of the financial assets of the company (Ward 2016).
Interest Rate: Interest rate for the company will be paid for the company will do the company
for the various long-term financing. Long-term financing of the company will be in the form of
interest rate that will be paid for the long-term financing of the company. Long-term financing of
the company will be in the form of long-term bonds that will be issued by the company for
financing the assets of the company (Burns and Dewhurst 2016). The applicable interest rate on
the bonds would be around 8.50% on a per annum basis. From the viewpoint of financing, the
assets of the company the company will be on a total basis would be financing the assets of the
company.
Inflation Rate: The inflation rate for the various factors of production and the raw materials that
will be taken by the company for the purpose of incorporating the rise in the prices of raw
materials and sale of Mobile Scooter by the company. Incorporation of the inflation rate will be
done at the rate of 3.50% per annum basis.
Project Life: The project life stating the financial projections for the company was drawn for a
sum of five-years where the company has viewed that with the growing technologies and
innovation the same is expected to contribute significantly for the company. The life of the
project is for a sum of five-year, which was assumed that the same is expected to contribute
significantly for the company.

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Constraints
The constraints of the project would be in the form of various technological and resources
requirement that would be changing for the company. The operations of the company would be
operating in a competitive environment whereby changes in the field of technology and
resources requirement that would be acting as a major constraint for the company. Constraints
for the company can also be in the form of other various forms like operational issues and
technical issues that can arise from the production unit. It is necessary that the management of
the company design the operational plan and the strategic plan for the company in such a manner
that will help the company in creating overall sustainable operations for the company (McKeever
2016).
Risks
Risks are an integral part of any operations that the company undertakes and the same
can be evaluated with the help of the various operational work that are undertaken by the
company for the purpose of analysis. The operations of the company is in a very volatile
situation whereby various risks like credit risk, liquidity risks, technological risk and market risk
can significantly impact the overall risk analysis of the company (Cornwall, Vang and Hartman
2016).
Credit Risk: The credit risk arises because of failure of payment by the creditors in the form of
non-payment of the various outstanding amount for the company. The company will be selling
most of the products of the company on a credit basis as the product of the vehicle market
follows the similar technique for selling products as a fact of increasing sales and attracting more
customers for the purpose of increasing revenue for the company (Bentil and Yeomans 2016).
The cash collection period will be for a sum of 30-days whereby the company will be receiving