Business Opportunity analysis Assignment Example | Topics and Well Written Essays - 1250 words

Business Opportunity analysis - Assignment Example Commercial production of lowbush blueberry in Nova Scotia, New Brunswick, Prince Edward Island, Quebec (Canada) and Maine (US) is known to be susceptible to a serious fungal disease, called Monilinia blight, which causes significant economic loss annually. A team of agriculture researchers developed a technology in the form of an apparatus that can be used to effectively predict the risk of infection in fields. The apparatus functions with an algorithm that accurately indicates the state of infection or risk of infection caused by wetness as captured by a moisture sensor. The technology is to be licensed, with exclusive rights to enhance and commercialize the technology. Market Research & Analysis Market trends and needs Lowbush blueberry has come a long way to take its position as one of the most significant horticultural crops in the province of Nova Scotia Canada (Benoit et al, 1984). Commercial development today, which is done on a large scale, started in forties and fifties. The industry has grown in leaps and bounds since. For instance data shows that only 1,125,000 pounds was produced with a farm value of $152,000. Average annual production from 1992 to 1996 was over 29,000,000 pounds. In 2000 over 32,000,000 pounds of lowbush blueberries were harvested with a farm gate of over $20,000,000 and an economic value of Nova Scotia surpassing $50,000,000 (Wild Blueberry Network Information Centre, 2012). Market Segmentation The target market for Lowbush Blueberry Moisture Sensor will be all the farmers in lowbush blueberry, who combined, have a farm value of over $20, 000,000. They are the ones is known to affected by the serious fungal disease, called Monilinia blight, which causes significant economic loss annually. Product Product Description Lowbush Blueberry Moisture Sensor is an apparatus that predicts the risk of fungal infection in blueberry fields. The apparatus functions with an algorithm that accurately indicates the state of infection or risk of in fection caused by wetness as captured by a moisture sensor. The technology is to be patented, with exclusive rights to enhance and commercialize the technology. This technology will be attractive to manufacturers who: have manufacturing capabilities of small plastic and metal parts; have excellent knowledge of the existing agricultural production, marketing systems, sales and infrastructure in the region; and Can incorporate the sensor and the algorithm with remote communication software, in a self-contained unit. Potential for Commercial Enhancement & Adding Value Remote communications Customarily remote in location, blueberry fields are often near forested areas that are geographically situated at different terrains exhibiting different micro-climatic conditions. Information, on the wetness of the fields, that is made available regularly at the convenience of the growers’ home location, is beneficial in the timely control of this damaging disease. In this light, a remote co mmunications technology attached to the moisture sensor is potentially capable of enhancing such usefulness of the apparatus. Other farming techniques, other crops –

Managing business finance Essay Example | Topics and Well Written Essays - 1750 words - 2

Managing business finance - Essay Example There is a flow of loan repayment similar to a waterfall from the top down with each cash proceeds from these loans goes to fees and tranches of debt. The CLO arrangement permits attaining surplus cash to run from the loans to liabilities like CLO Bonds. The junior investors obtain the surplus cash flow after paying the higher-risk tranches. Therefore, as long as the costs in issuing debt remain lower than the loan portfolio, the CLO equity tranche will receive the excess cash. Nevertheless, the checks and balances structure may assist in preventing losses to the bondholders. During the 2007/8, financial crisis, the CLOs played a big role in the U. S Subprime crisis, and this was the first financial crisis in history after the Great Depression. Bank credits contribute in households accumulating debt relative to net worth with firms increasing their projects hence over-speculation and over-investment. The Community Reinvestment Act 1977 gave incentives to investors to extend loans to low-income earners. Therefore, instead of the banks applying more prudent and credit evaluations, they became flexible in their loaning through CLOs. This act saw an increased demand of loans with very many defaulters. These loans to people with poor borrowing credit history or the subprime caused a plunging of property prices that slowed down the U. S economy, and the banks losses amounting to $223 billion. These losses were due to the changed lending basis by the banks in mortgage that exposed the massive defaulters. Between 2002 and 2004, the U. S interest rates were low, and so the people speculated the low rates would remain low hence they did a lot of borrowings (Kolb 2010 p. 28). The banks introduced the CLOs selling loans to investors especially in the housing sector. Unfortunately, the government increased the interest rates in 2004, and the house owners would default the payments. This