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Case Study

Biodiesel Incorporated
1. What are the key factors in determining if this is a viable business opportunity for
Josh, Hannah and Matthew?
The key factors in determining whether this is a valid business opportunity for
josh Mathew and Hannah include the analysis of their business ideas and the ability
of passing these ideas via a test to determine their validity. All these ideas ought to
have a demonstrated need a market that is ready plus the capability of providing a
solid return on investments
2. What market drivers should they research and be aware of?
The partners should be aware of market drives such as the economic trends
and the technological factors and as well as new government regulations or the
introduction of new laws. They need to ask themselves what economic, social or
technological factors are varying in the available market.
3. What are the flaws in the current business strategy?
In the business strategy by these three partners, the current weakness lies in
the fact that the contemporary energy industry is dedicated to current business
strategies as a result of big assets, and infrastructure. The main challenge with their
strategy is coming up with a type of technology that is likely to mitigate todays
negative effects on the environment while at the same time employing the
prevailing infrastructure. In addition, the lack of IP and the access from other firms
and oil companies is another great fault.
4. What type of financing should hey use if they choose to go forward with this?
This group should employ the equity financing whereby they should invest
their money into their organization in exchange for a share the running of the
business. The sources of equity finance can either be from personal savings from
the three members, angel investors, family and friends or form the venture capital.
5. What types of distribution channels should they go into?
Some of the effective ways of distribution channel Biodiesel Incorporated
could use are in the petroleum and the agriculture sectors. Because their business
offers unique services in the manufacturing of biodiesel on behalf of its farmer
members. Also, retailing with the oil companies is also one of the best distribution
channel for this organization.
6. How can they improve their chances for success?
Biodiesel Incorporated can improve their chances of success by showing their
competitive benefit/edge. Competitive advantage/edge is one of the key factors to
success. It determines success of a business. Without it, the business wont survive.
7. What is the next step?