BIODIESEL INCORPORATED

Group 1

Group Member

Rattaya M.M997Z230

Nuntanut S.M997Z236

Patlada S.M997Z240

Krissapon A.M997Z241

Chayaporn V.M997Z224

Outline

Background The Challenge The Concept Q&A

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.1: Opportunity

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.