Feed Resources Recovery Case Study Example | Topics and Well Written Essays - 1000 words

Feed Resources Recovery - Case Study Example He moved on to the Laurence Candle where he invented a renewable wax candle, a strategy that increased the organization's profitability. At this time, he realized his weakness in Accounting and he enrolled for a master in business administration. His experience and knowledge seems to be the driving force towards creation of his anaerobic digester. After market research, he identifies the marketability and the economic feasibility of his product in the country. He finds it quite difficult to meet an investor to fund his project and when he is able to speak with a potential investor, Wal-Mart, he is turned down for his project’s long payback period. Finally, when he is able to win a grant, he finds it difficult to implement his design. Resultantly, he is forced to engage a partnership with Ryan, an engineer, who develops the prototype for product share of 20%. From the financial report generated, the project is expected to have a payback period of two years and net earnings of 1 4% by the end of the fourth year. Although the market is dominated by another multi-million company, Ryan feels that accessing local raw material for his digester plan will help him to differentiate from the big organization and hence remain profitable in the long run. Critical Issues Market Problems Shane’s project is subject to numerous forces that are threatening his survival in the market. Although his project is a solution to the problems of the people, the project is suited for profit-constrained market. Consequently, he expects lean profits in the project and hence the project is expected to have a long payback period. Secondly, it is a big challenge to convince his customers that the project is viable unless he is able to build his prototype. This is bound to pose challenges to the business after its launch and the product can only gain customers in the long run. Additionally, has a dominant competitor, Waste Management Company, who has invested over $13billion dollar s in a central plant and supplies gas to consumers over long distances (Blank 12). Financial Problems In Shane’s Plan, the project cannot take off until he is able to garner $250, 000 required to build the prototype (Blank 11). While he was won a few awards, the money cannot suffice the capital demanded by the project. The alternative of confronting friends and relatives has been viable yet a very slow process that would delay the project along its projected path. Investors are not willing to fund the project until the team is able to build a prototype and to define the feasibility of the project. Consequently, Ryan and Shane need to identify alternative sources of finance in order to be able to build their prototype without altering the critical path of the project. Strategic problems The project plan laid down by Shane indicates a number of strategic planning weaknesses that are likely to create problems along the implementation process. There is evidence of a drawback in t he viability of the project as measured by its output power. When Shane conducts a feasibility study, he finds that the project is not eligible for the Grant that Massachusetts Technology Collaborative offers to a company that would produce over 50KW of power (Blank 13). This points out that the projects need to target more raw