Please explain the following points and make a prudent decision on investment.
Based on the analysis possible outcomes are:
Investment is a critical factor that depends on many different aspects. Those aspects are very much dependent on the features and the services provided by the organization in which an investor is going to invest. In this particular study, I need to go through the presentation provided to me by the management of Fanditioner. The organization deals with a ceiling fan that provides same level of cooling as the air conditioner. Along with that, the presentation also includes the strength and the weakness factors regarding the organization. Based on those aspects, I as an investor could make my decision regarding the investment in the organization. Along with that, the presentation also provides an ample amount of details regarding the financial positions of the organization such as the cash flow statements and the other financial reports.
2. Feasibility of the innovation based on sound engineering along with technology and science and management
Innovation regarding a product is always welcome by the customers. The customers do want to have such products that can satisfy their needs and wants. As the fans are using the electricity very much, therefore the products that consumes less energy is very much popular in between the market. Along with that, the technology that needs to be used in order to manufacture the product also needs to be taken into account. From the presentation, it can be seen that the organization mainly focusing to the innovation aspects regarding the sound engineering and the technology, therefore it can be said that the investors should invest in Fanditioner.
3. Feasibility of the innovation
The ceiling fan that has been provided by Fanditioner is mainly enriched with the innovative technology. The organization mainly uses the copper tubes along with the liquid cooling pump in order to make the entire environment cool enough for the users. In addition to that, the fans are very much eco-friendly. Moreover, the fans that are produced by the organization are cheaper than the alternative items in the market. As the organization is enhancing their innovative ideas therefore, the investors may invest in the organization. However, the investors also need to have a look regarding the fact that how the customers are taking this sort of innovations and how they are reacting to this. Based on the feedback from the customers the investors may decide the fact that whether they should invest in the organization or not.
4. Product market
The product has been initially launched in Mumbai. In 2003-2004 sessions, the growth rate was 10.03%. This shows the enthusiasm of the customers in order to have this product. Along with that, in the financial year of 2009-2010, the organization has seen the immense growth rate of near about 32%. The investors who invested in the organization that particular time have taken their benefits out from the organization. However, in the recent year the growth rate is reducing significantly. In the financial year 2013-2014, the organization had witnessed the growth rate of just 2.47%. it can be said that the people are losing faith over the product. On the other hand, it can also be said that market is being enriched with many more technically advanced products that can easily meet with the specifications of the customers. Therefore, the investors should think regarding the investment in this organization.
5. Purchasing power of buyer
Purchasing power of the buyer is another thing that the investors need to take into their account in order to invest in an organization. If the strength of the buyers is relatively high, then they can be able to get the products. Along with that, if the product is the necessary for one for the buyers then they have to take it regardless of its price. The products that Fanditioner releases in the market is relatively cheaper that the other alternatives. Therefore, the customers tend to have the products of Fanditioner as they provide the same range of cooling such as the air conditioner. So that, it can be evaluated that the purchasing power of the buyers are in the favor of the organization. Therefore, the investors may think about investing in the organization.
6. Satisfaction level of the investors
As a startup organization, Fanditioner had invested 21,258,000 rupees in order to settle their business. Along with that, they have the 1,013,556 rupees as the net cash balance at the end of the year. These figures can satisfy an investor in order to invest in the organization. However, the engagement of the people regarding the products of the organization and the feedback from the people is also an important factor that needs to be taken into consideration. Along with that, the organization is trying to focus on the different needful areas. Moreover, the management of the organization also needs to identify and enhance the level of revenue in order to increase the profit level for them. In addition to that, the organization has a proper set of innovative idea and maintains a cost-leadership strategy. It can also be considered as the factor based on which the investors may love to invest in the organization. Moreover, the organization has great team chemistry and has a lesser amount of bureaucracy in their management process. As the investors are also the main stakeholders of an organization, therefore they need to know about this type of functionalities in the organization and based on that they should make their choice regarding the fact that whether to invest in the organization or not.
7. Satisfaction level regarding growth and sustainability
Fanditioner is trying to identify and increase the level of their profit margin and they are mainly focusing in the different needful areas. Therefore, they may reach to the expected level of growth that they have decided for themselves. Along with that, they have the endeavor in order to venture into the other different electronic markets such as the motors and the pumps. This defines the nature of diversity in their business. A diversified business always attracts the investors to invest in the organization. Along with that, when it comes to the sustainability issues, the amount of cash flow in the business can easily enhance their use of technology. In addition to that, they are also discovering the different ways through which they can expand themselves in the national and the global field. Moreover, they provide a high rate of interest to their investors that can easily attract their investors. A satisfied investor in terms of growth level and the sustainability factor tends to invest in the organization in order to get a proper return on investment.
8. Efficiency of the team
The team that the organization has is the proper mixture of both young and old brains that can easily provide suitable solutions regarding any kind of disruption in the business process functionalities. The team is highly experienced and innovative so that they can enhance their product quality to such a range that the people tend to shift from other organization to their organization. The chief technology officer, Mr. IS Bhatia has an immense experience of near about 30 years. It can derive the fact that, the organization can be highly technically advanced in terms of their products. Along with that, Mr. Didar Singh is also highly experienced in the field of managing the people. Therefore, the conflict in the organization would not happen and if it happens then it can be easily sorted out. Therefore, it can be said that the team is efficient enough to handle the different processes.
9. Evaluation of the presentation
The entire presentation provided with an ample amount of details regarding the different organizational functions. Along with that, the strength and the weakness factors are also described in the presentation. The presentation also includes the financial statements that can help the investors to decide regarding the fact that whether to invest in the organization or not. The growth rate a\long with the different sustainability factors are also been discussed. Moreover, by going through this presentation the investors can have the glimpse of the entire market as it also defines the competitors of the Fanditioner. As the presentation have an ample amount of information is well structured, therefore I would give it 8 out of 10.
As the presentation provides a good amount of information regarding the Fanditioner, therefore the investors should invest only a part of total needed investment. As the rate of growth is decreasing in the recent years, therefore the investors need to rethink about the full investment in the organisation.
Feedback regarding the unit
This particular unit provides a great deal of knowledge regarding the business decision making. Investment is such a crucial part in a business. Therefore, it needs to be perfect enough so that it can be fruitful for the person who is investing money. This unit provides a detail description regarding the fact that based on which aspects the investors should invest in the organization. Therefore, it can be said that the unit is very much crucial in order to develop proper decisions regarding the business process.