A Case Study Of Envirofit International A Venture Adventure - Sample

Question: Discuss about theCase Study of Envirofit Internationalfor aVenture Adventure. Answer: Major Issues Addressed in the Case Study The main issues that are addressed in this case study are to help reduce the air pollution in the developing countries through the development and the commercializing of a retrofit kit, which would help reduce the pollutions in the unclean two-stroke carbureted motorbike engines. This package could be efficient light for especially in the Asia country in which there is certainly the use of more than one 100 million 2 strokes carbureted motorbikes; that majority are employed as the taxis as everyday options for transport (Lorenz, Bauer Willson, 2005). Additionally, the case analyses on the concerns of economic as well as health problems that have developed due to air pollution. There is a necessity to make a difference and improve the air excellence and the drivers revenue. Other issues that the Lorenz, Bauer, Hudnut and Wilson would be to build an business that is far away from their country thus operating it becomes problem (Hudnut, Bauer Lorenz, 2006). Additionally, the layout of the business design to be sold to the consumers at the bottom of the pyramid markets and meet the triple bottom objectives and lastly the development of the marketing teams and the partnership. The Meaning of Base of Pyramid Market (BOP) about the Case The base of the pyramid means to be at the bottom of the income pyramid and the poorest socio-economic group. In this case, Philippines is a developing country in Asia, the country consist of individuals who are earning 3 to 5 dollars per day especially those people in the tricycle taxis business (Hudnut, Bauer Lorenz, 2006). The term of the base of pyramid market is often used particularly in this case because there is a need to develop new models of how individuals in the Philippines in the city of Manila are doing the tricycle taxis to reduce the aspect of air pollution and increase their income through saving on the fuel. Further, the term relates to the case because there has been the development of the new model of the business and the target group is motorcycle operators on the need to use retrofit technology that is environmental friendly on combustion of carbon dioxide gas emission. What it Means Born Global Business and Relation to the Case Study. The born global business refers to the organization which from the inception, formulate practices that have competitive advantage from the use of the resources and the sale of the output of multiple countries. Further, the born global firms start with a borderless world view and they immediately develop the strategies to expand themselves abroad. The case above is a born global business because the idea to solve problems associated with the air pollution came from a class in the New Venture Management. The four friends wanted to resolve these issues especially those affecting large cities such as Bangkok and Manila (Urmee Gyamfi, 2014). Their parent organization was started in other country rather not on their place of origin. They wanted their plan of making retrofit technology use in the motorcycle to be employed in these countries to reduce the pollution. The inception of the business was to start at the Manila and consequently if the firm does well provide the same technology to other developing countries. Moreover, it has been formulated that the Lorenz, Bauer, Hudnut and Wilson wanted to start the company and they were making plans to travel to the Philippines a country which has a significant economic and health problem due to air pollution (Urmee Gyamfi, 2014). This shows that their plan, for the business was on international perspective to solve problems affecting other countries, and success of the firm means advancement to other developing countries. What it Refers to a Business Model Especially Envirofits Model The business model entails the design used for the successful operation of the firm. Envirofits business model was to develop a retrofit technology to address the problem of air pollution. The business model would need to meet the bottom goals that are the scalability, and the provision of the ability to raise the capital (Pursnani, 2011). The business model for the technology needed to be based on the market, customer and the competitive advantage aspects. The business model used in this case study is sustainable in saving on the fuel and oil in regards to the mileage traveled, and it would be environmental friendly in reduction of the carbon dioxide emission. The team had estimated that with an initial projected cost of the retrofit kit at 220 dollars, the taxi drivers could break even within one year. This is achieved when the average taxi drivers could save approximately 168 dollars in the fuel and 56 dollars in oil; this amount is equal to the estimated cost of the installation (Pursnani, 2011). The project has scalability in that there are 120,000 taxi drivers in the Philippines if the individuals adopt the use of this technology there would be growth. Moreover, through the partnership with the Asia Development Bank and through the local initiative effort called the Clean Air the government could formulate the process to advocate clean air in the Philippines thus, these individuals would be forced to acquire the use of the technol ogy. The use of the technology will make a significant impact in the reduction of the air pollution. Further, it will be able to reduce the unburned hydrocarbon emissions by 70% from the motorcycle engines. Timmons Model On this model, it identifies the opportunities, teams, and the resources which are the critical factors which are important elements for the entrepreneur to achieve success from the business. The case can be based on this theory, on the opportunities, there was a chance to develop a national business plan from a competition which was held at Colorado University. The team members who had the opportunity to formulate it were Lorenz, Bauer, Hudnut, and Willson. They intended to make a plan to address the problem of air pollution in the developing countries such as Philippines in the city of Manila. These organization will provide resources to the business they are Asia Development Bank, NGOs and government. They will provides the expertise and connection to help in the implementation of the Envirofit technology. Therefore, from the case one can identify there are opportunities, teams, and resources to make the plan a success. External Environment The external environmental analysis entails the natural, macro and the operating environment that affects the business. In this case study, fundamental aspects that affect the business is the external pollution and the health problems that are affecting the individuals in Manila city which needs to be addressed (Urmee Gyamfi, 2014). The macro environment factors that affect this business are based on the technological advancements. Philippines country has not adopted in the technological advancement, they are lagging behind as comparison to the developed countries; the motorist wants the government to provide the Envirofit technology as they cannot afford to acquire them. The operating aspects are the sources of the fund as the working capital. There four friends are faced with a challenge to find a microfinance they can partner with to provide the funds to venture on the technology. Recommendations The entrepreneurs should analyze the market patterns in the Philippines, and develop the technology that is favorable, and economic which the individuals can afford. The team members needs to make decisions for the triple bottom line influence that is sustainable (Hudnut DeTienne, 2010). There is also the need to develop on the key partners who can invest and connect the business to enable it to grow. The weakness of the business model is that they have not clearly defined on the partners for the firm. Capital is a vital component for the growth of the business, and there is the need to have ideal partners who can invest in the idea and allocate capital to implement the plan of activities. On the funding, there should be a strategic development of partners such as a government, and microfinance for part of the funds. The other funding could be from the personal contribution of the team members (Hudnut DeTienne, 2010). On the growth of the enterprises it can be achieved through the development of a marketing strategies to make people aware of their products. Further, they need to develop products that are friendly to the ecosystem thus enabling growth of the business. I would invest in this venture, in the long run, projection the project would be a success (Bauer, 2011). Through the enchantment that has been formulated in Manila city in Philippines on the Act of Clean Air, all the manufacturer should adhere to this act to achieve less carbon emission in the environment. This product has catered for that, and most of these companies would borrow their technology. Case Updates Envirofit International over the years have been able to develop other technology that reduces the pollution and enhances on the energy especially in the developing countries. An example, in 2007, they have partnered with the shell foundation breathing space, and they developed cooking stoves that does not emit a lot of carbon gases during combustion process. This partnership had launched a clean technology stoves business which help in the reducing the air pollution through this technology (Bauer, 2011). The design of this technology has helped to reduce the levels of the gases transmitted to the environment by 85% as comparison to other kinds of cooking stoves. The company has continued to develop on such technology and help reduction of carbon gasses in the environment thus preventing air pollution. References Bauer, T. (2011). Enabling Market-Driven Technology (Innovations Case Narrative: Envirofit International). innovations, 6(3), 93-102. Hudnut, P., Bauer, T., Lorenz, N. (2006, January). Appropriate Organizational Design: A hybrid business model for technology transfer to the developing world. In National Collegiate Inventors and Innovators Alliance. Proceedings of the... Annual Conference(p. 81). National Collegiate Inventors Innovators Alliance. Hudnut, P., DeTienne, D. R. (2010). Envirofit International: a venture adventure. Entrepreneurship theory and practice, 34(4), 785-797. Lorenz, N., Bauer, T., Willson, B. (2005). Design of a direct injection retrofit kit for small two-stroke engines. JSAE Paper, 20056601. Pursnani, P. (2011). Shell Foundation and the Breathing Space Programme (Innovations Case Commentary: Envirofit International). innovations, 6(3), 103-106. Urmee, T., Gyamfi, S. (2014). A review of improved Cookstove technologies and programs. Renewable and Sustainable Energy Reviews, 33, 625-635.