BIODIESEL INCORPORATED Group 1

Group Member Chayaporn V. M997Z224 Rattaya M. M997Z230 Nuntanut S. Patlada S. M997Z240 Krissapon A. M997Z241

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

BIODIESEL INCOPORATED Cooperative Coop is a business organization owned and operated by a group of individuals for their mutual benefit BIODIESEL INCOPORATED

BIODIESEL INCOPORATED Biodiesel incorporated is based on an idea to enlist and develop local producer’s cooperatives to capitalize on the emerging biodiesel market 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 INCOPORATED

BIODIESEL INCOPORATED Advantages of the Cooperative Business 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 BIODIESEL INCOPORATED

BIODIESEL INCOPORATED Biodiesel incorporated 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 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.