Biodiesel Incorporated

Topics: Petroleum, Economics, Marketing Pages: 2 (311 words) Published: February 20, 2011
Josh, Long and Hammond came up with a business idea of manufacturing and distributing biodiesel. The major generation sources, petroleum, coal, natural gas aand nuclear are non renewable resources and have detrimental effects on the environment. The petrochemical fuel industry manifest itself in the form of oil fields and reserves, pipelines, transport ships, and fuelling stations. The whole idea behind the biodiesel was that it can be produced again and it did not harm the environment. Also as unlike the other technology which requires abandoning the present infrastructure of petrol and diesel, the biodiesel will require the similar infrastructure. It can be used in present cars, can be transported in pipes and ships and can be distributed in present fuelling stations. Taking this idea they started Biodiesel Incorporated. They develop a series of local producer’s cooperative in an effort to capitalize on the emerging market. These members would grow feedstock crops and gather residues with high fat content. Capital equipment costs would be shared and spread over membership; oils would be extracted from the collected biomass and biodiesel would be produced using these oils. Answer to the questions

* Key factors in determining business opportunity
* Environment friendly
* Economics of scale
* Future growth
* Will fit in the existing infrastructure
* Market drivers
* Availability of feed stock and crop residues
* Availability of famers
* Flaws in current business strategy
* Farmers can make separate union and can make a separate company * Farmers can control the price
* Type of financing
* Venture capital financing
* Types of distribution channels
* Tie up with existing companies supplying petrol and diesel. Take a spot on the existing petrol pumps on rent from them and use their distribution channel. * Improve chances for success
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