1. BIODIESEL INCORPORATED
Group 1

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

3. Outline
Background
The Challenge
The Concept
Q&A

4. 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

5. 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

6. 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

7. 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

8. 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

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

10. 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

11. 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

12. 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

13. 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

14. Question No.1: Opportunity

15. 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 ?!?

16. 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

17. 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)

18. 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.

19. 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.

20. 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.