Biodiesel Case
Essay by cheronimo • May 7, 2014 • Essay • 237 Words (1 Pages) • 925 Views
One of the key factors is the potential profit margin that can be made out of this business opportunity for if you are net gain is negative in the long run then the business won't be viable. In addition there has to be a demand for the product, because if no one wants it then it is not going to sell, and you will not make any money. Timing is also really important. In this case as gas prices are increasing and there is more of a drive to go green due to greenhouse emissions, eco-friendly and bio degradable fuel would be something to think about. Also you have to bring the right product to the right market; you're not going to be selling cars to 12 year olds. The team and quality leadership is also another factor to consider. Are there enough people to carry out the effort, and is the background of the team enough to be able to accomplish the goal? Government may enforce regulations that may affect your business and create limitations. Finally, environmental factors will affect the business. In this case a natural disaster such as a drought can damage the crops and in this case limit the quantity of biodiesel produced. This case study can be seen as an opportunity pull which will make it easier to attract investors due to large scale of opportunity.
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