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Preparing a Business Case to Potential Investors to Fund The Project Essay Example

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    Masters
  • Page:
    2
  • Words:
    1446

<PPP Project Name>

1Executive Summary

Water is a critical element in living organisms thus crucial in determining sustainability. An alternative source of water for the Australians would, therefore, be critical for promoting sustainable development in the country. The main objective of the project is to evaluate the possibility of producing potable water from the rainwater tanks at kiosks on campus or across the city. As a result, the study aims at relieving pressure on the water supply industry in Australia. The study also aims to analyze the micro-economic environment and determine the viability of the business. PESTLE and Porter’s five forces were used to analyze the situation and determine the viability of the business. The study found that the use of portable rainwater from rainwater tanks have the potential to reduce the use of drinking water from main water supplies. PESTLE analysis indicated that the Australian government encourages the use of rainwater tanks to relieve the water demand pressure. Even though the rain water is cheaper, its fluctuation can limit its reuse. Another challenge is that the locals might not feel comfortable of using recycled water. According to Porter’s five force, competition in the water supply sector is great and entry of the water tanks and filtration system companies might make the matters worse. However, installation of the tanks would be expensive on part of the consumers. The technology in Australia is comprehensive enough to allow for water cycling and conservation thus able to meet the needs of the growing population. But the technologies need to be improved further to reduce the costs of quality water. Companies developing rainwater tanks will have a huge challenge to supply the kiosks on campus and the city.

BACKGROUND; scope and out of scope

4.2.1 Background

Water is a resource that is valuable. Apart from household and drinking water reasons, Australians use water for industrial purposes that controls the economy of the country particularly agriculture. For that reason, the demand of water in the country has been in the rise with the increase in population. In the past, most of the Australians have considered water to be a free resource thus no charges hinged on its use. However, water restrictions and drought in several parts of Australia since 2002 has made the water use to be charged. Furthermore, increasing evidence on the on the effects of water quality on health has made greater concerns be based on the quality of water use in the households for drinking purposes. It is recognized today that water scarcity in Australia can have great environmental, economic, and social consequences with the demand exceeding the supply based on the geographical scope. As a result, efforts should be put in place to ensure that the Australians have clean water for their use.
4.2.2 Scope and out of scope

The goal of the study is to determine the viability of producing portable water from rainwater tanks at kiosks on campus or across the city in Australia. It includes the political, economic, social, technological, legal, and environmental analysis of the water demand and supply situation in Australia. In addition, analysis was conducted on the competition, potential entrant, suppliers, buyers and substitutes in the water sector of Australia. However, the study does not cover the Kiosks in the rural settings outside the campuses and city but only those within.

deliverables

4.3.1 Statement of the Business Opportunities

There are several business opportunities in the project. First is the development and selling of the gutters. Gutters are the water channels placed immediately below the roofs to help collect water and direct it to the tanks. The gutters can employ both those in the informal and formal sector. The second business opportunity is the development and selling of the tanks. The harvesting of rainwater will increase the demand of tanks to which the water will be harvested and stored. As a result, the people who will be developing the tanks will have an opportunity to supply more in the market. In addition, the distributors and sellers of the tanks will also have a job to do in the process. The third business opportunity is the development and sales of the bottles to which the water is contained. In explanation, just as tanks, the bottles need to be manufactured and distributed to the different corners of Australian cities and campuses. Harvesting of rainwater will lead to additional demand on the bottles thus development of employment opportunities in the manufacturing sector. Business opportunity is created also in the distribution of the bottles to different campuses and kiosks.

Another business opportunity is the transportation of the gutters and tanks. Transportation of the products is another good business for those interested in the transport industry. The business mainly entails the supply of the gutters and tanks to the kiosks and campuses in Australian towns.

Examples of information that the environmental analysis will reveal:

  • Length of other projects

  • Specific project outcomes

  • Critical success factors

  • PPP models and delivery channels used

  • Project Cost

  • Benefits achieved

  • Lessons learned (e.g., what other organizations would have done differently)

This section is important to sponsor agency decision-makers and stakeholders since it explains the various options for structuring the project and delivering the service(s).

Options can vary in three different categories:

  • Business Models: Various business models can be specified for the delivery of the service. As an example, the agency may choose centralized vs. decentralized service delivery models and packaged vs. individual service delivery models. The advantages and disadvantages of each model should be clearly stated and assessed.

  • Technical Models: Various technical models can be specified for the delivery of services. As an example, are new assets needed or can existing assets be leveraged to deliver what is needed? The advantages and disadvantages of each model should be clearly stated and assessed.

  • Procurement Models: The applicable PPP types as explained in the Inception stage in the PPP Manual should be carefully examined. Different PPP types involve different procurement models. The advantages and disadvantages of each model should be clearly stated and assessed.

12.1 Schedules

The schedule planning is based on 4 parts: Work breakdown structure building, activities and tasks identifying, PERT schedule diagram building, and Gantt chat building.

  • Work Breakdown Structure (WBS) and Activities

Work breakdown structure is a summary of the milestones that will be covered in the whole project. It helps in the identification of tasks and activities in the project. The main milestones in the rainwater harvesting project are: equipment, process design, general contracts, resource preparation, and team building.

Rainwater Harvesting Project

Preparing a Business Case to Potential Investors to Fund The ProjectPreparing a Business Case to Potential Investors to Fund The Project 1Preparing a Business Case to Potential Investors to Fund The Project 2Preparing a Business Case to Potential Investors to Fund The Project 3Preparing a Business Case to Potential Investors to Fund The Project 4Preparing a Business Case to Potential Investors to Fund The Project 5Preparing a Business Case to Potential Investors to Fund The Project 6

Resource Preparation

Team Building

General Contracts

Process Design

Equipments

Preparing a Business Case to Potential Investors to Fund The Project 7Preparing a Business Case to Potential Investors to Fund The Project 8

Preparing a Business Case to Potential Investors to Fund The Project 9Preparing a Business Case to Potential Investors to Fund The Project 10Preparing a Business Case to Potential Investors to Fund The Project 11

Core Teambuilding among workers

Testing and Installation

Contract Negotiation

Equipment Supply

Physical and Chemical Process Design

Figure 1: Work Breakdown Structure

In each of the initial phase, a team building framework needs to be formulated. Resource preparation for equipment supply will also be needed and contract negotiated. Physical and chemical process design will also be carried. Lastly, the process will be installed and tested. The table below illustrates the tasks and activities for the project.

Activity

Predecessor

Duration (Week)

A. Agree on job specification

B. Core team building

C. Equipment supplier finding

D. Contracts negotiation

E. Physical and Chemical process design

F. Equipment Installation

G. Equipment Testing

Figure 2: Activities and Tasks

  • PERT Schedule and Gantt Chat Diagram

Each of the projects is expected to take approximately 10 weeks. The PERT schedule of the can be summarized in the figure 3 below. The figure covers the main activities and the time that it will take to cover the projects.

Preparing a Business Case to Potential Investors to Fund The Project 12Preparing a Business Case to Potential Investors to Fund The Project 13

Preparing a Business Case to Potential Investors to Fund The Project 14Preparing a Business Case to Potential Investors to Fund The Project 15Preparing a Business Case to Potential Investors to Fund The Project 16Preparing a Business Case to Potential Investors to Fund The Project 17Preparing a Business Case to Potential Investors to Fund The Project 18

Figure 3: PERT Schedule Diagram

Duration (Week)

Agree on job specification

Core team building

Equipment supplier finding

Contracts negotiation

Physical and Chemical process design

Equipment installation

Equipment testing

Figure 4: Gantt Chart

12.2 Resources

The resources needed for the project include human resource, financial resource, time resource, and land. The human resource will help in planning, designing, and installation of the equipments or tools. The financial resources will be used to pay the human resource and buy the required instruments and tools for the project. The land is appropriate for the installation of tanks to which harvested water is collected. It is also important for the treating of the rainwater collected before bottling.

12.3 Personnel

The personnel include contractor and project manager. Other personnel include core team members in which others might be the locals and the student body representatives. In addition, there is need of specialists in gutter development and quality inspectors.

12.4 Risks

The risk associated with the project is majorly based on the quality of water. With increase in greenhouse gases in the atmosphere, the rainwater harvested might be acidic thus unhealthy for consumption.

Business Case 5