Environemntal Presentations
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Transcript of Environemntal Presentations
Sustainability Challenges in the Shrimp Industry
Shrimp Industry Issues:
Challenging task ahead considering the diverse priorities and
attitudes involved.
At the same time, the Eco-System(consulting agency), to be viewed as a trustworthy partner and not biased toward any stakeholder
Shrimp Farming driven by strong demand, grew from 0.6 million t in
1988 to 2.6 million in 2005
Shrimp farming accounts for 40% of shrimp produced globally
Wild Shrimp fishing has been practiced for centuries in many parts of
the world.
Small scale fishing , surprisingly consist of 30% of the total shrimp
catch
Wild Shrimp
Fisheries
Shrimp Aquaculture
Firms
Environmentalists
Policy Groups
Shrimp Industry
Shrimp Industry Overview:
Most valuable fish product, over $10 billion of exports per year and
more than 6 million metric tons
Global shrimp production had more than doubled since 1986, following a strong demand.
US, Japan and Europe contributed the bulk of global shrimp imports
Two ways of catch main source of shrimp:
Wild Catch- Catch of Shrimp in the sea
Aquaculture- Practice of Rising aquatic species under controlled conditions
Concerns of the Shrimp Industry:
Both the wild catch and aquaculture sectors had been accussed of the
damaging the environment, affecting other industries and being
unsustainable.
Shrimp farming grown in mangroves in Indonesia
Land was used to convert to water bodies and were doubled to shrimp
production
Shrimp Industry concerned about the “boom and bust” cycles
The boom of shrimp often crashed cause of diseases, self-pollution and
environmental degredation
Oscillation cycle has been more pronounced since 2000
Price of shrimp was determined by demand and supply
Increase in demand= Increase in supply
Increase in supply resulted in price lowering
Cycle formed and falling prices
Fisheries introduced means to control costs
Shrimp Demand=f(Population, Per Capita Consumption, Shrimp
Price)
Strong prices also boosted production- Exhibit 3
ROI calculated on price level and harvesting rates
Thanks
SUSTAINABILTY CHALLENGES
IN THE SHRIMP INDUSRYGROUP 1
ABHINAV TEMANI (H15061)
ASHISH AGGARWALA (H15073)
ISHAN GAUTAM (H15085)
PARIDHI AGGARWAL (H15097)
SAMUJJAL DUTTA (H15109)
VIVEK MUKHERJEE (H15121)
Facts Of The Case
• Shrimp – the most valuable fish product traded internationally
• Exports > $10 billion/year
• Production > 6 mn metric tons; more than doubled from 1986-2008
• Shrimp - 2 sources of production: Wild catch and Aquaculture
• Shrimp fishing – substantial source of cash in tropical developing
countries
• Shrimp farming - traditionally done in tambaks (brackish water
ponds), rice paddies, coastal areas, river banks and mangroves
Increase in production
Increase in supply
Decrease in prices
Utilization of cost
effective methods
Decrease in prices
Increase in Demand
(source of profits)
Prisoner’s Dilemma Situation
Environmental Impact of Shrimp
Aquaculture
Deforestation : Clearing of mangroves for the development of
shrimp farms
Effluent : Chemicals used in intensive shrimp culture can also contribute to pollution from prawn farms
Salinization: Large amounts of fresh groundwater have been
extracted, which have affected the local hydrology
Expansion of shrimp culture into rice growing areas of Thailand has
led to serious concerns about the impacts on rice productivity
Environmentalist
Keen to raise awareness on the environmental and social impact
Resorted to anti-shrimp marketing campaigns to raise awareness
Global fishing fleet 2.5 times than oceans can support
$1.5 billion worth of government subsidies
30% of total catches are illegal/ unreported
Aquaculture responsible for destruction
52%24%
24%
Utilization of Resources
Fully exploited Overexploited Under exploited
Regulatory Bodies
Policies required for governing industry entry and amount of harvest
Measures taken in Thailand
Ban on shrimp farming within mangrove areas
Prohibited loans for farms located in mangroves
All shrimp farms need to be registered
Limits on the amount of effluent discharge
Dramatic production crashes in 1994 in Thailand and in 1998 in Equador
Inherent delays in response to pricing signals thus imparity in demand supply
Thank You!
Clarke: Transformation
for Environmental
Sustainability
-Group 2 (HRM-A)
Company Analysis: Clarke
Core Business: Manufacturing and distributing pesticides: Environmentally harmful
by its nature
Biggest player in the domestic mosquito abatement industry: 43 countries
Sold directly to Government entities
2010: Affected more than 330 million people
Redefining core values as innovation, community, and sustainability
Two-fold purpose: elevate position as an industry leader and leave behind a positive
legacy
Products:
Natular: 15 times less toxic, yet just as effective
DuraNets: durable, low-cost, reusable anti-malarial bed nets, lasted up to 5 times longer
7 Specific Goals
Reduce carbon footprint by 25%
Utilize 20% of energy from renewable resources
Reduce waste stream by 50%
Attain LEED (Leadership in Energy and Environmental Design) certification on
all new buildings
Generate 25% of revenues from “NextGen” products
Donate 2080 employee hours to assist the communities in which they serve
Incorporate a cradle-to-cradle philosophy in all product and service
development efforts
4 Strategic Themes
Extend the Reach
Innovation
Sustainability One Clarke
3 Unique Projects
Utilize Bicycles in 95% of larvicide spraying applications -> slashing costs and
reducing its carbon footprint
Project Regeneration -> improve application efficiency by the implementation
of field computers
Handheld devices -> navigation, mapping, GPS, intelligent scheduling
Swap traditional gas-powered pesticide sprayers with electrical units
Other Sustainability Measures
Bringing employees in line with Clarke’s sustainability mission
Company’s internal blog site that highlighted company-wide and individual
footprints to reduce carbon footprints
Encouraged employees to take action within the community
Natular
15 times less toxic
2 to 10 times lower than traditional synthetic chemistries
Safe to store, ship and handle
Only protective eyewear needed
Limited by two factors:
Price: approximately 18% higher than comparable traditional products
Bureaucratic nature of target customers
Eco-Tier Index
Tool to illustrate environmental impact of different Clarke’s products
Categories:
Conventional
Advanced
NextGen
Meant to emphasise Natular’s advantage over other Clarke products
Backfired as it suggested that older products were less safe
Demonstrated that sustainability was not necessarily valued outside Clarke
walls
Challenges Ahead
Environmentally-unfriendly history creating suspicions
Most pesticides don’t meet Clarke’s standards of do-no-harm or do-less-harm
Sustainability culture -> doesn’t exist in the industry or in its consumers
Success tied to the success of Natular
Internal resistance within the company towards sustainability drives
Can green be effective and profitable?
Recommendations
More education and awareness to employees to bring them in line with
Clarke’s sustainability mission
Publicise the Eco-Tier index
Making customers aware of the importance of sustainability in the long run
More tie-ups with big corporations to increase finances and sell sustainability
on a large scale
Diversify the risk of Natular by focusing on other divisions
Thank You
Clarke
Transformation for Environmental Sustainability
Situation Analysis
• Clarke, a mosquito abatement company seen as having a core business that is environmentally harmful by its very nature
• Core business manufacturing and distributing pesticides for public health market
• Faces unique challenges in transformation into a sustainable enterprise
• Most exciting innovation Natular a naturally derived and highly effective larvicide 15 times less toxic, yet just as effective
• President, Lyell Clarke, in a dilemma that how far could company push its sustainability agenda without damaging business or driving away customers?
Analysis
• Difficultly level involved in transforming a company from an environmentally unfriendly business into an environmentally sustainable services company
• Challenges involved in acquiring necessary buy-ins from employees and customers who are sceptical about sustainability as a potential driver of business strategy
• How industry leaders need to take into consideration a myriad of factors to shift paradigms regarding environmental performance
• Shift in mentality from a double bottom line( effective products, profits) to a triple bottom line ( effective products, profits and societal benefits)
The Company & The Industry
• Grew from basic pesticide application to turnkey mosquito management systems.
• The company has always had innovative strategies – predictive mosquito flight
• Environmentally friendly aquatic management packages
• Intended to show that profitability and sustainability can go hand in hand – ‘two fold purpose’
• Have provided services to every major U.S natural disaster since 1999.
• Wants to double its reach and wants to reach 660 million people by 2014.
• Vast majority of growth planned from pesticides
The Company & The Industry
• Clarke doesn’t sell to average consumer, but sells to municipalities, health agencies etc.
• All these bodies have been criticized for the use of toxic chemicals
• EPA clearance required, which is expensive and time consuming but slightly fast-track for ‘green’ chemicals
• Managers of government bodies very cautious in trying out new ‘sustainable’ ideas
More than a dead mosquito..
Extend the reach
Innovation Sustainability One Clarke
Goals of Clarke
•Reduce carbon footprint by 25%
•Utilize 20% energy from renewable resources
•Reduce waste stream by 50%
•Attain LEED(Leadership in Energy and Environmental Design)
•Generate 25% revenue from “NextGen” products
•Donate 2080 employee hours to assist communities
•Cradle to cradle philosophy in all product and sevice efforts
Implementation Utilizing bicycles•Abandon use of Chevy – an old highly valued job benefit
•95% spraying using Bicycles
•Cost cutting - >50,000$ as well as reduction in carbon footprint
Project regeneration•Advancement of technology
•Techniques like navigation and GPS used
•Reduced paper usage as well as miles driven -> cost cutting
Electrical units•Change in spraying techniques
•Comparably safer as well as effective
Challenges ahead
•Bulk of products do not meet company’s standards of “do not harm” or even “do less harm”
•Unfriendly past not easy to rectify
•Success intertwined with the success of Natular
•Culture of sustainability difficult to introduce in the system when it is not followed outside of it
•Can profitability be maintained
Changing the game – Retiring Tempenos
Pros
• Because of new vision, have to do away with it as it is extremely toxic
• Would be the first step towards long term goal of the company
• Future utilization of resources in line with company’s sustainable policies
• Would make way for Natular
Cons
• Product already has a proven track record
• Dangerous for company to withdraw from market
• Stakeholders resistant for the change to happen
• Very high risk
Changing the game – Introducing Natular
Pros
• Environmentally friendly – 15X less toxic
• High Efficacy - >95%
• Easy application – no protective gear
• Some MAD directors liked Natularand were willing to recommend
Cons
• Market proven product Altosid
• Cheaper FourStar
• 18% higher price than traditional
• Stiff bureaucratic budgets
• Most MAD directors had no interest in going green
Eco Tier Index
Recommendations
• Making the customers understand that the sustainability agenda was profitable in the long run
• Selling sustainability as a stronger extension of its proven innovation
• Leveraging the risk of Natular by other divisions of the business
• Promote the MAD director’s network – the person to person connection was working
• Convince the employees of the value in sustainability so that it no longer remains merely Clarke’s vision
EcoMotors
InternationalH15005 AKRITI VERMA
H15017 BHANU GUPTA
H15029 KRISHNA ADITYA G
H15041 PRATIK JAIN
H15053 SIDHARTHA PALIWAL
COMPANY OVERVIEW
Founded in 2008 by Peter Hofbauer
Develops 2-stroke “opposed piston, opposed cylinder”
(OPOC) design for internal combustion engines
Better fuel efficiency, smaller size, lower material to
capital cost compared to conventional 4-stroke engines
HISTORY
Initial design developed at
Volkswagen but not
implemented
Joined APT , developed an OPOC design which got the attention of
DARPA
$15 million contract by DARPA to
develop an OPOC design
for military trucks and tanks
CAP, a joint venture
formed with L3
communications in 2006
EcoMotorsformed in 2008
upon split of CAP. L3
Communications - military use EcoMotors -
commercial use
CURRENT SCENARIO
2008-2013, the CEO’s helped in building the culture, financing
the growth and developing a strategy to prove its technology
Many rounds of investment by companies because of its high
potential and capital efficient scale-up model
In 2013, Amit Soman hired as COO of company to help in
expansion of company to a point where it becomes self-
sustainable
Select the target market segment and decide upon a
business model to attack this segment
BENEFITS OF OPOC TECHNOLOGY
•Less than half the friction of 4-stroke engine
•Twice the number of power strokes per revolution
•Better surface area to volume ratioFuel efficient
•Can be decoupled – one engine can be turned off when decelerating or idle, saves powerDual OPOC 35-40%
more fuel efficient
•Doesn’t require valve trains or cylinder heads
•Reduction in small complex parts
•Reduced manufacturing complexity due to lower number of complex moving parts
Low material costs and capital expenditure
•Flatter engine allows more flexibility while installing the engine, more seating space
•Lighter engine allows more payload to be carried which increases the revenue per vehicle
40% lighter and 40% smaller
MATERIAL COST
Conventional Engine EcoMotors OPOC Engine
Base engine short block
assembly
2020 916
Cylinder head & valve
train
1660 0
Fuel charging 2720 2240
Air charging subsytem 2420 2980
Lubricant & cooling 1220 1106
Sealing & power
conversion
1028 944
All other systems 612 448
CAPITAL EXPENDITURE
Conventional Engine Ecomotors OPOC engine
Total machining 304 164
Total assembly 43 36
Total tooling 84 46
Manufacturing Subtotal 431 246
Other supporting
departments
13 8
Total manufacturing 444 254
Supplier tooling 90 48
Total plant investment 534 302
DISADVANTAGES OF OPOC
Lack of dedicated lubrication system, parts wear-out faster
2-stroke oil can be expensive as mixing ratio is about 4 ounces per gallon of gas and 1
gallon of oil burns for every 1000 miles
Produce more emissions from the combustion of oil in the gas
MARKET SEGMENTS
Types of Customers
• OEMs who are engine
integrators (eg: Volkswagen)
• OEMs who are engine
aggregators such as Generac
(Generator Sets)
• Established independent
engine makers
• New entrants independent engine makers
Selection Criteria
• Market Application
• Light duty on road market
• Medium and heavy duty
on road market
• Off road market
• Percent of engine volumes in
‘emissionized’ countries
• Average horsepower of
market segment
GLOBAL ENGINE MARKET
SEGMENTATION
Global engine market107.3 million units
Off-road
22.5 million units
3.6% CAGR
60% captive
27% emissionized
185 average HP
Medium & Heavy on-road
3.3 million units
4.8% CAGR
50% captive
74% emissionized
316 average HP
Light on-road
81.5 million units
4.1% CAGR
90% captive
100% emissionized
156 average HP
THE BUSINESS MODELS
How to sell to
market
“the what”
“the so what”
“the how”
Licensing:
• License intellectual property to manufacture its OPOC engine
• Capital and manpower to build and run engine plant
• Money through royalty revenues
Advantages:
• Lower risk and capital lightness
• Focus to take technology to mass market
Disadvantages:
• Lower long term value capture
• Royalty revenues a fraction of what the company could make
• Lose royalty rights- “white-label” supplier
Make and Sell:
• All capital to run an engine plant
• Responsible for Sales and Marketing product
Advantages:
• Full control over development
• Greater long term value capture
• No IP issues
Disadvantages:
• Capital intensive
• Non core activities expertise needed
• R&D focused – Marketing
THE BUSINESS MODELS
Joint Venture Partnerships:
• Partner with larger company to build engine
plant
• Less capital intensive
• More development control
Advantages:
• Benefits of licensing (capital light, low risk)
• Benefits of making and selling (value capture,
control, branding)
Disadvantages:
• Need to pitch to right customer
• Most JVs established with proven technology
Lease and Subscription:
• Offer customers a risk free way to try OPOC
engine
• Get paid slowly-
• over time - lease
• per mile –subscription
Advantages:
• Allows customer try unproven technology
• Early technology adopters to mainstream
markets
Disadvantages:
• Never been successfully tested
ACTIONS TAKEN
Joint Venture with “OEM who are Engine Integrators”
JV worth $ 200 million with First Automobile Works (FAW) group in China
Enter all the three Market Applications, namely
Light-duty on-road
Medium and heavy duty on-road
Off-road
Acquisition of Katech USA for
Speeding up R&D
Prototyping and testing of motors
THANK YOU
Section C – HRM 2015-17
Sustainable Development : EcoMotors International
Submitted by-Aman Tripathi
C.AnishManas Tiwari
Pritha DubeSnigdha Talapatra
EcoMotors International: Company Profile
• Started by Peter Hofbauer: 20 yearsguiding development of Volkswagen andAudi engines globally
• Series of financing rounds led by Khoslaventures, Bill Gates and Braemaer Energy
• Gene pool engineering: Hiring keypersonnel like Don Runkle, CEO, AmitSoman, COO and Ian Ridley, VPTechnology
• Lean Startup Approach: Creatingminimum viable products and controlledscale up
2003: OPOC design developed at APT
$15m DARPA contract for their helicopters, and military trucks & tanks later
2006: JV between L3 communications and APT called Compact Advanced Propulsion
2008: EcoMotors formed upon splitting of CAP, retaining rights to develop OPOC design for commercial use
EcoMotors International: Company Profile
Current Scenario:
• 200m$ of licensing agreement with Chinese conglomerate, Zhongding Power for EcoMotor’s first engine plant
• 24 months of cash supply, need to self-sustain
• Decisions to be made:
• Selecting the right market segment : Engine consumers and engine application
• Selecting the right business model.
Opposed Piston, Opposed Cylinder (OPOC)
Fuel efficiency:
15% improvement
, upto 35% for dual OPOC
40% lighter and 40% smaller
lower material and capital costs
Additional seating space
or payload
EcoMotors International: SWOT Analysis
Weaknesses
Shortage of time & Capital Technical challenges in regions with
more stringent emission regulation such as USA, Europe & Japan
Requires huge investment in infrastructure to reach the scalability
Threats
Apprehensions in the mind of investors due to the failure of ‘Clean’ energy startups like Solyndra (Solar) & A123Systems (batteries) (Exhibit 9)
Multiple big integrators who has invested a lot of capital
Scope of change of technology in 5-7 years
Strengths
New disruptive technology High potential for growth Multiple options of growth i.e.
applicability in all the segments Experienced team ‘Lean Startup’ approach of creating
minimum viable products
Opportunities
Higher oil prices Higher fuel economy standards Increasing awareness of climate change Complexities in Hybrid & Electric
vehicle business model
SWOT
Decision Variable: Market Segment Factors
Customers
• OEM’s who are Engine Integrators• OEM’s who are Engine Aggregators• Established Independent Engine Makers• New Independent Engine Makers
Market Application
• Passenger Cars & Light commercial trucks• Medium and Heavy duty on-road• Off-road
Emissionized Zones
• Europe• US & Canada• Asia & Africa• Oceania• Latin & South America
Others
• Growth Rate• Overall Volume• Captive Markets• Average Horsepower
Decision Variable: The Business Model
LicensingPros:• Lower Risk• Capital LightnessCons• Lower long term value capture• Intellectual Property Rights issues
Make-and-sellPros:• Higher long term value capture• Full Control• No IP rights riskCons• Capital intensive• Outside the domain of expertise
JV PartnershipPros:• Non capital intensive• No IP rights risk• Partner’s strengths can be leveragedCons• Untested option since JVs only with companies
having proven technology.
Lease & SubscriptionPros:• Reduces apprehension of customersCons• Time intensive• Never been successfully used in automobile
sector• Lower long term value capture
The Decision Matrix
Critical Success Factors Lower Implementation
CostLess Break Even time
Higher Value Capture
Larger Market Share
Growth Rate
Lower Emission Standard
Captivity%
BestOptionDecision Variables
Market Segmentation
Cutomer
IntegratorsAggregators
& New Entrants
Aggregators
Independent
New
Market Application
LCV - -
M&HCVM&HCV - -
Off Road - -
Emissionized Zones
Europe - - - - - -
Asia, Africa,Latin & S. America
US & Canada - - - - - -
Asia & Africa - - - - - -
Oceania - - - - - -
Latin & S.America - - - - - -
Business Model
Licensing - - - -
JVPartnership
Make-and-sell - - - -
JV Partnership - - - -
Lease & Subscription - - - -
Best Option
2nd Best Option
3rd Best Option
- No data available in case
Recommendations
SHORT TERM
• Enter into a JV Partnership
• Target the aggregators and new entrants
• Target the Medium & Heavy On-road Market
• Target the Asian, African, Latin American, South American markets (Higher Growth Potential and lower emission standards)
LONG TERM
• Invest in engine development• Reduce the emissions of the current
engine• Enter Europe, USA
• Improve the design, targeting Light On-Road Market
• Enter the higher price segment of Light On-Road Market• Supply to new and premium models of
Integrators
Thank you
Questions?
ECOMOTORS INTERNATIONAL
Presented by
- Group 5
(Akshit Bhuwalka H15065
Bhavya Sharma H15077
B Krishna Kumar H15089
Pratyaksh Sindhwani H15101
Shrey Sharma H15113)
Origin of EcoMotors• Peter Hofbauer recognizes potential of 2 stroke engine
• 1990s: Volkswagen rejects the design over emissions issues
• 2003: Hofbauer joins APT; OPOC technology is used for military purposes
• 2006: L3 communications formed a joint venture with APT called CAP
• 2008: EcoMotors International formed with the split of CAP
• 2008-2013: EcoMotors develops culture, growth and strategy to prove technology
• 2014:EcoMotors looks for further expansion
Problem Statement“To develop a marketing strategy by selecting right market segment & complimenting marketing strategy to promote an engine which has the breakthrough potential of transforming entire industry.”
Advantages of OPOC Engine
• 9-15% more fuel efficient than a conventional engine
• Can derive an additional 35-40% fuel efficiency when two OPOC engines are coupled
• Requires lower material costs and lower capital expenditures
• 40% lighter and 40% smaller than conventional engines
4 stroke engine 2 stroke OPOC engine
Customer Segments
• OEMs who manufacture both the engine and the equipment
• Prefer only proven technology and focus is on Economies of scale
Engine Integrators
• Outsource manufacturing of engine and assemble equipment in house
• Prefer proven engine technology
Engine Aggregators
• Focus solely on engine manufacture
• Pride themselves on advancing engine technology
Established Engine Makers
• Companies based mainly in emerging economies
• In process of scaling up their manufacturing and looking to enter Global markets
New Entrant Engine Makers
Market Segments
• Largest market by volume
• Light passenger vehicles & cars
•Dominated by Engine Integrators
Light Duty On-road Vehicles
•Smallest market by volume
•Work trucks & trailer trucks
• Looking for innovation through better fuel efficiency
Medium & High Duty Vehicles
•Second largest market by volume
•Highly fragmented
•Agriculture, construction, industrial, marine & power generation
Off-Road Vehicles
Business Models
• Earn revenues through royalty through licensing
• Risk of the IP being modified and taken over by clientLicensing
• Control the entire value chain, larger long term value capture
• Huge initial investments and no expertise in S&DMake & Sell
• Partner with an established company and hedge the risks
• Companies going for JV prefer proven technology
Joint Venture Partnership
• Either make the engines or partner with a company
• Provide the engine upfront and get paid slowly
Lease & Subscription
Comparative Study
Business Plan Trust Factor Financial Constraints
Patent &licensing issues
Licensing Low Low High
Make and sell Low High Low
JV Partnership Medium Low Low
Lease & Subscription High Low Medium
Customer Segmentation Preferred Business Plan
Engine Integrators Lease & Subscription
Engine Aggregators Make & Sell
Independent Engine Makers JV Partnership
New Entrant Engine Makers JV Partnership
Proposed Market Strategy• Diverse market strategy
• Separate b-plan for each market segment
Build Trust using Lease & Subscription Method
Focus on engine integrators
Move to Make & Sell Strategy
Gain market share by using JV partnership B-
plan
Focus on independent engine makers who are
established and those who are new entrants
Move to Make & Sell Strategy & focus on engine
aggregators
Medium & Heavy Duty and Off-Road Vehicles Light Duty On-roadVehicles
THANK YOU