Case Study Analysis: Green-Tech Bio Fuels Solutions - BUS 101

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This case study analyzes Green-Tech Bio Fuels, a startup focused on biofuel production. It examines the company's internal environment, including its business model, ownership structure, strategic direction, operating characteristics, and competitive advantages, while also highlighting its financial weaknesses. The external environment analysis covers industry specifications, competitor analysis, customer specifications, and substitute specifications. The analysis includes SWOT, Value Chain, PESTLE, and Porter's Five Forces. Key issues identified are lack of funds, workforce, and risk-taking. The firm's business model focuses on research and production of advanced biofuel machinery. The company's competitive advantages are analyzed in detail, alongside challenges in the broader environment, particularly the lack of funds, preventing the company from fully exploiting its opportunities. The case study provides a comprehensive overview of Green-Tech's position in the biofuel market.
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Running Head: CASE STUDY ANALYSIS
CASE STUDY ANALYSIS: GREEN-TECH BIO FUELS SOLUTIONS
2019
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CASE STUDY ANALYSIS 2
TABLE OF CONTENTS
MAIN ISSUES FOUND IN THE CASE ANALYSIS................................................................................3
INTERNAL ENVIRONMENT ANALYSIS...............................................................................................3
FIRM’S BUSINESS MODEL.................................................................................................................3
FIRM’S OWNERSHIP AND STAKEHOLDER STRUCTURE.............................................................3
STRATEGIC DIRECTION OF THE FIRM............................................................................................3
OPERATING CHARACTERISTICS OF THE COMPANY..................................................................4
COMPETITIVE ADVANTAGE (SUPERIOR RESOURCES & CAPABILITIES)...............................4
COMPETITIVE ADVANTAGE (PRIMARY VALUE-CHAIN ACTIVITIES).....................................4
FINANCIAL WEAKNESS.....................................................................................................................5
EXTERNAL ENVIRONMENT ANALYSIS..............................................................................................5
ISSUES FACED IN THE BROAD ENVIRONMENT...........................................................................5
PRODUCT/SERVICE DESCRIPTION..................................................................................................5
INDUSTRY SPECIFICATIONS............................................................................................................5
COMPETITOR SPECIFICATIONS.......................................................................................................6
CUSTOMER SPECIFICATIONS...........................................................................................................6
SUBSTITUTE SPECIFICATIONS.........................................................................................................6
APPENDICES.............................................................................................................................................8
INTERNAL ENVIRONMENT ANALYSIS...........................................................................................8
1. SWOT Analysis...............................................................................................................................8
2. VALUE Chain Analysis..................................................................................................................9
EXTERNAL ENVIRONMENT ANALYSIS..........................................................................................9
1. Pestle Analysis.................................................................................................................................9
2. Porter’s 5 Forces Model.................................................................................................................11
3- FACT SHEET...................................................................................................................................12
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CASE STUDY ANALYSIS 3
MAIN ISSUES FOUND IN THE CASE ANALYSIS
The main issues found in the case are as under:
1. Lack of funds: where the company is short on capital for producing more machines and
prototypes for this area of Bio-fuel generation along with the marketing of SHOT-BETA
technology.
2. Lack of Employee Workforce, where the company is lacking in terms of a proper
number of staff members, management members and engineers which is necessary to run
the company through changes in the hiring process of the firm (Rivera, 2012).
3. Lack of risk taking, where it imperative that a company takes calculated risks, Green-
Tech failed to market their product SPOT-BETA due to risks of low funds which could
have been dealt with at the time.
INTERNAL ENVIRONMENT ANALYSIS
The analysis of the internal environment of the company can be done as follows;
FIRM’S BUSINESS MODEL
The business model of the firm is an integral part of determining its core capabilities and
purpose in products/service facilities (Al-Debei & Avison, 2010). The business model of Green-
Tech consists of its primary focus on research and production of technologically advanced
machinery to ca toter Biofuel needs, which are not only cost-effective but easily transported as
well. It revolves around the sales of MPT mobile units to clients around the world for the
conversion of high-value products.
FIRM’S OWNERSHIP AND STAKEHOLDER STRUCTURE
The company is owned through shared rights by the University of Research that aided in
its formation and a group of private investors. By 2009, the company employed one CEO, two
Vice-Presidents, two technologists and three part-time engineers.
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CASE STUDY ANALYSIS 4
STRATEGIC DIRECTION OF THE FIRM
The objectives that the company is based upon include developing, manufacturing and
marketing various mobile and stationary equipment for proper production of Bio-Oil.
OPERATING CHARACTERISTICS OF THE COMPANY
1. Size of the company in Sales (April 2011) = $6, 50,000
2. Size of the company in terms of assets (April 2011) = $ 4, 22,942
3. Age of the company = 13 Years (2006-Present)
4. Number of Employees = 08
5. Geographic Location of the company = Canada (National operations). China, India,
Europe, Central & South America (International markets).
COMPETITIVE ADVANTAGE (SUPERIOR RESOURCES & CAPABILITIES)
1. Superior Management, where the management of the company has a strong
engineering background and can better understand the functions and tasks at various
levels.
2. Well-trained Employees, who are less in numbers but better trained and efficient to
handle the production requirements.
3. An excellent Board of Directors that overlooks the research and development areas
of the product.
4. A high-performance Culture, where the team is driven towards creating innovation
in the way their products function and stand out in the market.
5. Superior Financial Resources that are not accessible to the company and shows they
are short on funds for manufacturing more prototypes.
6. Effective Knowledge generating processes/Appropriate level & type of
International involvement, where the company has research databases and links
with the industry research and academic areas to help them adapt to the requirements
of the international markets.
COMPETITIVE ADVANTAGE (PRIMARY VALUE-CHAIN ACTIVITIES)
1. Inbound logistics, where the company had access to a research facility where they
could directly test their products for development.
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CASE STUDY ANALYSIS 5
2. Outbound logistics, where the company products could be easily transported for
mobile and stationary purposes.
3. Marketing & Sales, where the company is looking to spread its business into the
International market as a way of targeting other customers and generating more
profits.
4. Procurement, where the dealings with suppliers are important to the company for
creating prototypes that are quality based.
5. Technology Development, where the company has advanced technology for
conducting research and creating mobile and stationary equipment.
6. Administration, where there is a lack of response and involvement from the
management of the company except Fernando Bruteque.
7. Excellent Reputation, where the company is widely known for its state of the art
prototypes that are cost-effective and yield better results.
8. Strong Brand Name, which showcases the main objective and purpose of formation
of the company and what its products are.
9. Excellent Locations that involves access to the learning and research facility with the
associated university to help with the development and growth process.
10. Outstanding learning capabilities/Strong, Valuable ties, where the company has
ties within the industry for better research and development prospects.
FINANCIAL WEAKNESS
The firm is dependent on funds and has a low capital in general that at times becomes a
hindrance when developing new prototypes or spreading the business in an International Market.
EXTERNAL ENVIRONMENT ANALYSIS
The analysis of the external environment of the company can be done as follows;
ISSUES FACED IN THE BROAD ENVIRONMENT
The company faces issues of spreading into the International market and developing new
products due to a lack of funds.
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CASE STUDY ANALYSIS 6
PRODUCT/SERVICE DESCRIPTION
The main product of the company is the MPT1 (Mobile Pyrolisis Technology) which has
the advantage of heat control, low costing, easy maintenance and recovery among many. It can
also process up to 10 tons of Biomass residue per day.
INDUSTRY SPECIFICATIONS
The industry focuses on the increasing demand for products and equipment that help in
energy preserving and enhancement through used fuel. It also makes use of the sustainability
factor that is becoming increasingly popular, especially in private enterprises (Ponte, 2014). This
industry, as estimated in 2016, was worth USD 168 Billion.
COMPETITOR SPECIFICATIONS
The competitors in this industry are limited for this company, but the ones that are active
and pose a strong threat include Ensyn (Large scale patented equipment) and Dynamotive
Energy Systems (Large scale plants that operated 200 bdt per day).
CUSTOMER SPECIFICATIONS
The customers of the company include small potential clients having their own farms and
the large companies worldwide that are interested in diversifying their energy portfolio.
SUBSTITUTE SPECIFICATIONS
One of the substitute issues that the company faced involved the ease of replication of
their SHOT-BETA technology for feeding and the availability of large and small scale
equipment that was similar to their own.
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CASE STUDY ANALYSIS 7
REFERENCES
Al-Debei, M. M., & Avison, D. (2010). Developing a unified framework of the business model
concept. European Journal of Information Systems, 19(3), 359-376.
Ponte, S., (2014). ‘Roundtabling’sustainability: Lessons from the biofuel
industry. Geoforum, 54, 261-271.
Rivera, L. A., (2012). Hiring as cultural matching: The case of elite professional service
firms. American sociological review, 77(6), 999-1022.
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CASE STUDY ANALYSIS 8
APPENDICES
INTERNAL ENVIRONMENT ANALYSIS
1. SWOT Analysis
Competition from large scale fixed
pyrolisis plants
Competition from pseudo-mobile small
scale technology producers.
Targettig the demand for this
technology in the global markets.
LPT1
Feeding system component demand
(SHOT-BETA)
Lack of funds
Prototype technology that had not been
perfected well in time
Quick growth and expansion to target the
golbal markets.
MPT1
First in the industry to create such technology
Generating Bio-Oil and other sources of
renewable energy
Strengths Weaknesses
ThreatsOpportunities
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CASE STUDY ANALYSIS 9
2. VALUE Chain Analysis
EXTERNAL ENVIRONMENT ANALYSIS
1. Pestle Analysis
Element Factor Business Impact
Political
Government policies and
regulations regarding use of the
Biotechnology in new markets.
Increase in the shipping,
transportation, building and
distribution costs relating to the tax
regulations of the country. Change in
the company policies and adaptation
according to the country regulations
and culture.
Economic
Developing countries take on this
aspect of solar and bioenergy
renewal methods.
Developing countries and
underdeveloped countries will lack
awareness in this aspect, and the
country will have to work on this area
and then on facilitating through their
products and services.
Sociological
Activity
Analysis
Continuous research and development of the product.
Staying up to date with the technological advancements of the same field.
Value
Analysis
Products that are efficient and cost effective.
New products and advancements that get the job done easily.
Evaluation &
Planning
Funding the department of marketing to efficiently highlight and introduce
products in the International markets.
Funding for the progress in research to compete with the other companies
making the same prototypes.
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CASE STUDY ANALYSIS 10
Increase in demand of the product
with respect to the growing need
of attention towards
Biodegradable materials and fuel
systems.
Increased production of the various
prototypes and the development
through research and study phase for
better services.
Technological
Advancements in the technology
related to the machinery and
research methodology for the
prototypes.
Working on conducting market
research and how other companies are
using a variety of technology to
update their machines and adapt to the
requirements to change the system for
efficiency.
Legal
Regulations regarding the ethical
use of resources with permission
from the governing bodies of the
country.
The company will have to work on
getting permits to conduct research
and make use of the machines in
generating and using Bioresources.
Environmental
Concurring changes in the
environment with respect to
climate, pollution, global
warming and scarcity of
resources.
Research on how these factors can be
better used to implement the functions
of the prototype in solving these
natural shortcomings and the
estimations of the growth of these
factors in the coming years.
2. Porter’s 5 Forces Model
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CASE STUDY ANALYSIS 11
Competitive rivalry
Threat of
substitutes
Bargaining power
of customers
Availability of existing
similar technology
through competitors.
Buyer inclined towards
products with less
prices and cost.
Number of similar
products through
different companies
available in the market.
Products that are
based on the similar
prototype.
Threat of new
entrants
Bargaining power
of suppliers
Suppliers not providing
the material on time or
as per the company’s
policy for product
quality.
Impact of
differentiation in costs
of supplies.
Products that are
more compatible and
less costly.
Large and small scale
products that are
introduced for the
first time. Innovative products of
the competitors.
Other companies
making greater and
more expensive
advertisements for their
products.
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CASE STUDY ANALYSIS 12
FACT SHEET
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