Additionally, Bug Busters places customer service on top of their priorities, something that Ecolab values greatly. This joint venture options creates multiple benefits for Ecolab. Pursuing this option will help marginalize their seasonal revenues, a problem in which Ecolab has struggles to combat in recent years. Since the weather patterns in Egypt are more consistent, the pest populations do not vary according to the time of year as dramatically as in other areas. Additionally, the joint venture option allows Ecolab to enter the area with assistance in the areas of culture, trust, and the types of pests needed to be eliminated. After completing a thorough financial evaluation, it was found that the opportunity cost of capital is approximately 9.17%, assuming an initial investment of $10,000,000, Ecolab’s breakeven point would be a revenue of at least $917,000 a year. This allows for a payback period of roughly 10.97 years. Overall, taking all of the above into consideration, it is believed that this option would greatly benefit Ecolab, and align with their core principles
Additionally, Bug Busters places customer service on top of their priorities, something that Ecolab values greatly. This joint venture options creates multiple benefits for Ecolab. Pursuing this option will help marginalize their seasonal revenues, a problem in which Ecolab has struggles to combat in recent years. Since the weather patterns in Egypt are more consistent, the pest populations do not vary according to the time of year as dramatically as in other areas. Additionally, the joint venture option allows Ecolab to enter the area with assistance in the areas of culture, trust, and the types of pests needed to be eliminated. After completing a thorough financial evaluation, it was found that the opportunity cost of capital is approximately 9.17%, assuming an initial investment of $10,000,000, Ecolab’s breakeven point would be a revenue of at least $917,000 a year. This allows for a payback period of roughly 10.97 years. Overall, taking all of the above into consideration, it is believed that this option would greatly benefit Ecolab, and align with their core principles