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Group Member
Rattaya M.M997Z230
Nuntanut S.M997Z236
Patlada S.M997Z240
Krissapon A.M997Z241
Chayaporn V.M997Z224
Background
Josh Maxwell: Graduate School of Management Hannah Long: Agriculture Economics Matthew Hammond: Mechanical Engineering Josh, Hannah and Matthew met in Business and Sustainability class
The Challenge
Energy dependence is a worldwide problem Non –renewable resources and have harmful effect on the environment Considering assets, investment and infrastructure Find a form of fuel or technology that can mitigate the current negative affects on the environment Heightened by the astounding growth in the global population and per-capita consumption of liquid fuels
The concept
• “Biodiesel” a possible solution to the challenge!!!
• What’s Biodiesel?
–A vegetable /animal based product
–Substitute for traditional diesel fuel
– It can be used with diesel engine in and after 1996 with no modification
How’s biodiesel made?
• Made from oils or fats
–Oils come from varieties of plants
–Fats come from grease such as recycled cooking grease from restaurants
• Mixed with alcohol and catalyst
The advantages of biodiesel fuel
• A renewable energy source
• Less polluting than traditional diesel fuel
• Easily biodegradable
• Economic stimulation
• Reducing dependence on foreign fuel sources
Coop is a business organization owned and operated by a group of individuals for their mutual benefit
Cooperative
BIODIESEL INCOPORATED
BIODIESEL INCOPORATED
- High fat content of growing feedstock crops
and gathering crop residues- Sharing and spreading capital equipment cost
over membership- Using existing petroleum-based infrastructure
to distribute the biodiesel locally
Biodiesel incorporated is based
on an idea to enlist and develop
local producer’s cooperatives to
capitalize on the emerging
biodiesel market
BIODIESEL INCOPORATED
- Utilize the collective purchase power of the coop
- Increase negotiation power e.g., stabilize crop prices and biodiesel output, gain access to higher-volume contracts- Unite rural communities and preserve agricultural economy
Advantages of the Cooperative Business
BIODIESEL INCOPORATED
- Serve to bargain and manufacture of biodiesel on behalf of its members
- Serve to control the production of agricultural products, price and term set for member’s production, and price and term set for biodiesel output
Biodiesel incorporated
BIODIESEL INCOPORATED
Question No.1: Key Viable Factors
• Business Model: Cooperative Firm (Capital from
Shareholders and Risk Dissemination)
• Negotiating power, self-reliance
• Trend of environment awareness
• Fit with the existing machine (1996) and old machine
(adjustment)
• Feedstock, crops etc. are easy to find
Question No.2: Things to concern !
• Studying about consumer insight
• Buying Decision Making
• Geography
: Resourceful feedstock crops
• Alternative feedstock
: Avoiding taking of food sources from people’s mouths
• Driving up food prices ?!?
Question No.3: Drawbacks !!!
• Inadequate feedstock, corporation, knowledge, loyalty of
members
• Issued of taking food from human and animal, also
increase the price of food and crops, ex; Palm tree etc.
• Not well-known approved in term of performance for the
general current vehicle’s engine
• Insufficient marketing support, ex; Advs, promotion, co-
branding, channel distribution
Question No.4: Financial Support
• Cooperative Business
: Capital fund from shareholder
• Government’s Supported
: Supported Loan, Warranty the Quota of feedstock
(Short in Supply), Warranty the price of feedstock for
farmers (Stability and fairness)
5. What types of distribution channels should they go into?
• Direct-Sales: coordinate with Environmental Organization such as Government Organization, Military, Greenpeace and United Nations and etc.
• Indirect-Sales: Co-Branding with the reliable brand. Ex; Exxon or Shell, to provide our biodiesels to be sold in their gas station.
6. How can they improve their chances for success?
• Utilizing the knowledge from “A study of consumer insight” to support the marketing strategy.
• Using mass media in communicating the benefits of biodiesel to the public and raising general awareness and acceptance.
• To promote biodiesel is an environment-friendly fuel which carmakers could provide relevant guarantees on engines.
7. What’s the next step?
• To invent the new alternative product lines which were adapted from biodiesel ex; lubricants, etc.
• To cooperate with other biodiesel producer or the cooperative in order to share expertise innovation management, process, etc.