Team members of company who will undertake Sustainable joint venture with Vic Solar Company

Disuses About The Developing Capacity Portable Water Purifier?

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.

Mike, John, Maria and Graham are the main persons who will enter into SJV

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 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).

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).

What is Sustainable joint venture?

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 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).

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).

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.

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.

Issues faced by Sustainable Solution Pvt ltd and failure of SJV agreement in the market

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 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).

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).

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

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).

How and when it went wrong

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.

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 (MNAE). Changes in existing financial structure and implementing new strategic alliance will increase the overall efficiency of business (Shriver, et al. 2015).

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.

References

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