London’s Green Bin Program Case Solution & Answer

They may dislike the project or they might do not have much awareness regarding organic and non-organic waste, then this expected percentage could be further reduced, which may prove the project asfinancially not worthwhile for the company or it could not fulfill the required or expected amount of organic waste.

There are several municipalities providing such waste management facilities in the city. Therefore, it could create entry problems for the company due to the presence of existing companies and it will also be a problem to get the maximum amount of waste in the presence of greater number of competitors.

An increasein theamount of waste would alsoincrease the number of waste management companies because it proves to be very profitable business.Dueto the increase in competition there is a probability of decrease in fee against the waste management services.This ultimately will reduce the revenue and profit.

Beside the financing problem of the project, it is also difficult for such type of business to quantify the benefits.Therefore,it would also be difficult in determining the project net present value and also in determining that when the project reaches at its breakeven or how early it recovers its initial investment.

It is also expected that after reaching the capacity of 310,000 tons of waste, its capacity will become stagnant and there will be no further increase in the savings after the year of 2018 and it will remains $2500 for next five years. Therefore, there is no anticipated growth after getting the maximum capacity of waste.

SWOT Analysis

The green bin program is the waste management program and it is about the separation of organic waste at source. Organic waste is used to produce fertilizers, and the fertilizers produced through the organic waste are considered as more useful as compared to the fertilizers produced through chemicals, therefore there is a potential to generate positive returns through the project.

The companyis investing heavily in capital intensive business without getting any market and customers’reaction and response, which could prove a serious threat for the organization in terms of financial losses and adverse public image.

If the waste producers did nothelp the company regarding waste separation, then this capital intensive project could prove to be harmful to the company in terms of financial benefits and the loss of public image as well.

However,if the public gets awareness and helps the company to separate the waste, then it can prove beneficial to the organization. In addition,the waste management companies are also producing energy through waste and it isa cheap source of producing electricity, therefore in the future the company can also invert in the energy producingprojects and can earn greater profits.

PRESENTATION OFALTERNATIVES

Optimize Existing Programs

 Currently, the blue box program is being operated in London. It is expected that 15% of the waste of the households and 25% of the waste of industries could be recycled with the help of blue box program. There is probability that by increasing the awareness among the waste producers and by increasing the number of blue boxes at homes and offices, the maximum amount of the waste could be recycled, which will ultimately reduce the amount of wastes for landfills and also the cost that incurred in order to landfill the waste.

Optimizing the existing program is also a cheap program because there is no addition or extra initialamount required in order to run the program. This program is also familiar among the waste producers, therefore it could be easy to make them more aware regarding the blue box and recycling program.

Expand Existing Program

Expansion of already ruining program is the most suitable option as compared to introducing anew and risky option. Increase in the blue box program involves low cost as compared to the new capital intensive program. It is expected that the increase in number of blue boxes will also increase the number of wastes being collected through blue boxes and will reduce the amount of the waste that will remain for landfills………………….

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