Business Report: Capacity Portable Water Purifier SJV Analysis

This report examines the issues faced by Sustainable Solution Pvt Ltd in developing a capacity portable water purifier, focusing on a sustainable joint venture (SJV) with Vic Solar Company. The report details the challenges encountered, including financial problems, market competition, and failures in meeting project deadlines. It explores the technical strengths of Vic Solar, financial situations, and strategies to overcome financial difficulties, such as injecting capital and adjusting pricing. The report also discusses the road map for the future of the newly introduced product, emphasizing the need for proactive planning, technological integration, and effective financial management. The analysis covers various aspects, including the impact of the SJV, mitigation of issues, and the importance of financial stability and strategic alliances for the success of the portable water purifier project.

RUNNING HEAD: Developing capacity portable water purifier 1
Developing capacity portable water purifier

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Table of Contents
Introduction.................................................................................................................................................2
Team members of company who will undertake Sustainable joint venture with Vic Solar Company.........2
What is Sustainable joint venture?..............................................................................................................2
Issues faced by Sustainable Solution Pvt ltd and failure of SJV agreement in the market...........................3
How and when it went wrong.....................................................................................................................3
Mitigation of issues faced by John and Mike in their developed capacity portable water purifier product 4
Technical strength of Vic solar.....................................................................................................................4
Assurance of Vic Solar.................................................................................................................................5
Financial situation of SJV.............................................................................................................................6
Strategies to come out the financial mess...................................................................................................6
Determining the price of new PPA in the market........................................................................................7
How to work on existing SJV to come out of financial stress.......................................................................7
Road map for future of newly introduced...................................................................................................8
References...................................................................................................................................................9

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Introduction
This report reflects the key understanding on the issues and factors faced by promoters
while developing capacity portable water purifier. This developed low cost, low capacity
portable water purifier will be used to provide portable water to large population around the
globe. However, two promoters John and Mike are facing several issues such as financial
problems, handling factors and arrangement of employees and technicians. Throughout the time,
company has phased life cycle stage problem of this developed portable water purifier product.
The main problems in the development of life cycle stage of product of company are related to
the newly sophisticated products offered by new entrants in market. However, with a view to
reduce the complexity of business, company has decided to enter into sustainable joint venture.
This SJV contract will mitigate all the issues and make the portable water purifier products
backed by new technologies.
Team members of company who will undertake Sustainable joint
venture with Vic Solar Company
Mike, John, Maria and Graham are the main persons who will enter into SJV
What is Sustainable joint venture?
It is observed that with the increasing ramified economic changes and threats posed by
new entrants in the market, Sustainable solution Pvt ltd has been facing various problems and
issues while selling capacity portable water purifier product in market. Furthermore, government
has also shifted its inclination towards new entrants in the market. SJV is the joint venture which
is made by sustainable solution PVT ltd with the Vic solar with a view to use it’s newly

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developed sophisticated technologies. This newly entered contracted named SJV will help
capacity portable water purifier to come with effective level of services and mitigating possible
high cost attached with the maximum retail price of the product in market (Hubrich, & Tetlow,
2015).
Issues faced by Sustainable Solution Pvt ltd and failure of SJV agreement
in the market
There are several problems faced by Sutinble solution Pvt ltd in the market after entering
into contract with the Vic Solar Company. The main problem was related to breakthrough in
2011 in form of failure to meet the capacity as per the directions of government. In addition to
this, SJV contract should have been resulted to 22% to 25% but to other unforeseen factors, the
profit earned by company through SJV contract resulted to 16% which was very less as
estimated. However, the project undertaken by companies under SJV contract went wrong right
from the beginning and shown inability to supply 12,000 solar panel to the project deadline. This
failure damaged the brand image of company and increased the overall finance cost. The amount
of benefits received by company from the market is also eliminated and increased the overall
cost of the products in the market (Hubrich, & Tetlow, 2015).
How and when it went wrong
After evaluating all the factors, it could be considered that SJV contract with was
beneficial one and could have shown high amount of profit if associated factors have taken into
consideration in determined approach. The main problem was related to finance and money
involved in project. There were several new entrants who were providing imitated solar products
at very cheap rate in the market. It is considered that after entering into SJV contract, both

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companies promised to deliver 12,000 solar panel before deadline (Santamouris, 2016). These
levels of failure destruct the functioning of organization and resulted to destruction of business.
After that, with a view to comply with the requirement, SJV hurry in imported cheaper product
and failed to meet the required capacity as per the standard. In addition to this, SJV negotiate the
contract with the Vic solar to provide effective level of technologies to strengthen the solar
power as per the required capacity (Hubrich, & Tetlow, 2015).
Mitigation of issues faced by John and Mike in their developed capacity
portable water purifier product
In order to mitigate all the issues and problems faced by Sustainable solution put ltd,
company will make proactive plans and implement forecasted planning and policies to make
solar power work effective. It is further observed if company could mitigate the alliance problem
and put cap on the failure to comply with the use of technologies then it may increase the success
chances of new solar power contract. This time company has to evaluate all the variable factors
and use of new technologies to overcome the solar power issues (Kandasamy, et al. 2014).
Technical strength of Vic solar
Vic solar has sophisticated technologies and installed plan which will increase the overall
power supply in SJV contract for Sustainable private limited company (Mitragotri, Burke &
Langer, 2014).
With the use of newly introduced Vic solar technologies, company could increase the overall
profit of company by 20% in the market while supplying solar power.

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Vic solar has various joint ventures with other companies and its working experience will result
to core competency in supply solar power with high capacity (O'Sullivan, et al, 2014).
The formula and set functions Vic solar use in its supply chain management is highly secure and
increase the effectiveness of users in using power supply of SJV in market (Saikku, et al. 2017).
Other rivals are using low level of substance and factors which might be cheap but less effective
as well (Lüdeke-Freund, 2014).
Source panel, plants and machines used by Vic solar is highly international plants and provide
more effective result to clients in market as compared to other rivals.
Assurance of Vic Solar
It is considered that SJV failed in the market and also did not perform as per the required
level of compliance program. The main problem was related to delivery of solar power supply in
the market with in the deadline (Zhang, 2016). However, in order to mitigate these associated
problems in determined approach, SJV will hire internal control department to mitigate the
possible issues. It is observed that if SJV could increase its production process by 20% then it
could deliver the promised products with the deadline. However, increased capacity of 20%
could also enhance the overall capacity of SJV in the market and will result to delivery of
determined solar power supply for clients. With the use of Vic Solar sophisticated and highly
developed technologies, SJV will surely increase the efficiency and business functioning to
provide more solar power to clients. In addition to this, these imported plants will also make
these established products effective in market and increase the overall client’s satisfaction in the

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solar market in determined approach. The technical experts of Vic Solar will showcase high level
of core competency in generating solar power in the market (Keyhani, 2016).
Financial situation of SJV
SJV is the strategic alliance made between Sustainable solution pvt ltd and Vic solar
company to increase the overall efficiency of the solar project. It is observed that due to
unforeseen factors, company has failed to deliver the committed solar power to its clients within
the set deadlines. In addition to this, the products and services sold by company in the market are
also very costly which result to increase the overall turnover of company. SJV has also faced
decreased in its overall profit by 10% which has destruct its financial capacity. Government and
other authorities have also declined to deliver the funds and contributions to support the SJV
solar functioning. However, with a view to strengthen the financial situation of company,
company will have to raise its overall turnover and inject more money in organization’s capital
(Mathews, et al. 2016).
Strategies to come out the financial mess
VOI solar and other SJV both are facing financial problems due to its low level of turnover
and non-effective solar power supply. In order to mitigate these issues, both VOI solar and SJV
need to implement following strategies (Brand, et al. 2016).
 Injecting more capital in the financial structure of company
 Increasing the debt funding to reduce the overall cost of capital
 Hiring of financial management department to manage the finance in business.
 Maintain the legal department to comply with the legal and ethical issues in business

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SJV contract has faced the problem due to delay in working and delivering the VOI solar to
clients. In addition to this, company has other issues which have decreased its overall profit to
16% and overall turnover. This level of decrease in profit will surely result to destruct the value
creation of invested capital of company (Gayer, et al. 2016).
Determining the price of new PPA in the market
With the negative cash flow and increasing competition from the new entrants in
business, company needs to fix price of new PPA to AUD $ .08 to .10/KWH. There will be
following outcomes which will be faced by company in market if price of new PPP set to AUD $
.08 to .10/KWH (Memos, et al. 2017).
Company could increase its overall profit by increasing the overall turnover.
SJV at the price of new PPA to AUD $ .08 to .10/KWH will beat the competitions and rivals
offering in solar power.
SJV selling its solar power products of new PPA to AUD $ .08 to .10/KWH could increase its
brand image and clients satisfaction in determined approach.
Setting up of new financial management plan and corporate prepared plan with the collaboration
of Vic Solar will increase the overall efficiency of solar power products in market.
How to work on existing SJV to come out of financial stress
It is observed that proposed SJV of company will increase the overall effectiveness of
PPA and comply with the new rules and regulations of Ministry of New and Alternative Energy

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(MNAE). Changes in existing financial structure and implementing new strategic alliance will
increase the overall efficiency of business (Shriver, et al. 2015).
Road map for future of newly introduced
It is observed that sustainable solution pvt ltd will have to deal with the pricing policies
and other new offers made by rivals in the market. It is observed that power solar offer by
company in market was accompanied with several issues such as not technically developed,
delay in supply and having high cost of the products. It has shown that company needs to
manage all these issues and factors in determined approach. However, financial problems and
legal problems faced by company are managed by company by implementing separate legal and
finance department. However, with a view to strengthen the financial situation of company,
company should raise its overall turnover and inject more money in organization’s capital. If
company should undertake proper level Vic Solar sophisticated and highly developed
technologies then efficiency and increased level of solar power to clients will be handled in
determined approach.

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