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Finance & Accounting
Pages 5 (1255 words)
MIB Water For All 1. Evaluate MIB Water For All business plans. What are its strengths and weaknesses? The mission of MIB Water For All (MIBW4A) was ‘to bring clean water to several South American regions using a network of existing water vendors, readily available water purification technology, and mobile-banking technology…
The company chose to deal with water, a vital commodity over which, because of public interest, they could not raise prices too high without becoming the target of negative sentiments. This means that MIBW4A will be trapped perpetually in narrow profit margins. Underreporting is a real concern, because there is no way for MIBW4A to oversee sales. The revenue sharing agreement, where water vendors receive 20% and MIBW4A 80%, in unrealistic, given that the water which comprises the product is provided by water vendors, the cost they shoulder. MIBW4A will be more justified to charge a flat rate for rental. There is no reason why the vendors could not purchase their own filters and get 100% of their own sales, instead of turning over 80% to MIBW4A. Slow Sand Filtration is inferior to the 10-stage, or other multistage, standard water filtration system. There are more strategic, technological, and operational weaknesses in the business plans for MIBW4A, that there is greater reason to believe that it shall be more unfeasible than feasible. 2. ...
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