AquaSafi Purification Systems: Changing the Operating Model
AquaSafi Purification Systems Pvt. Ltd. (AquaSafi) was a social enterprise that aimed to provide clean water to people in the developing world. The organization assembled and sold its water purification technology, at cost, to villages and non-governmental organizations in rural India. Before deciding to change AquaSafi’s current operating model, the executive director thought it would be useful to perform a cost/benefit analysis to see how the company’s cash flow would differ at a new water filtration plant under the current and proposed operating models. He also wondered whether it made sense for AquaSafi to change its operating model as it expanded its operations, since the company’s current operating model had been well received in the villages.
Collection: Ivey Business School (Canada)
Ref: IVEY-9B17B013-E
Format: PDF
Number of pages: 7
Publication Date: Jun 8, 2017
Language: English
Review date: Jun 8, 2017
What material is included in this case:
Description
AquaSafi Purification Systems Pvt. Ltd. (AquaSafi) was a social enterprise that aimed to provide clean water to people in the developing world. The organization assembled and sold its water purification technology, at cost, to villages and non-governmental organizations in rural India. Before deciding to change AquaSafi’s current operating model, the executive director thought it would be useful to perform a cost/benefit analysis to see how the company’s cash flow would differ at a new water filtration plant under the current and proposed operating models. He also wondered whether it made sense for AquaSafi to change its operating model as it expanded its operations, since the company’s current operating model had been well received in the villages.
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Year: 2016
Geographic Setting: India
Industry Setting: Other Services;
Learning Objective
This case is suited for an introductory managerial accounting course at the undergraduate university level. Analytical tools include a breakeven analysis and a differential analysis. The case gives students the opportunity to: ·practice preparing a breakeven analysis and a differential analysis; ·understand why breakeven analysis and differential analysis are important tools for decision making;recognize the challenges faced by a social enterprise; ·make a business decision based on qualitative and quantitative analysis and fit with the organization’s goals; and ·appreciate a major global concern—unsafe drinking water in much of the developing world.
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