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Biodiesel Incorporated Teaching Notes

The Biodiesel Incorporated case describes the process of one group’s efforts to effectively identify a business opportunity. Individual analysis and group discussion of this case are well-suited for illustrating and applying the terms and issues covered in Chapter 2 “Opportunity and the Business Summary.” Naturally, the case also allows for the discussion of additional concepts and topics, including material covered in Chapters 4, 8, 10, 17, and 18.

Discussion Questions

1) What are the key factors in determining if this is a viable business opportunity for Josh, Hannah, and Matthew?
2) What market drivers should they research and be aware of?
3) What are the flaws in the current business strategy?
4) What type of financing should they use if they choose to go forward with this?
5) What types of distribution channels should they go into?
6) How can they improve their chances for success?
7) What is the next step?

Answer Guide

1) What are the key factors in determining if this is a viable business opportunity for Josh, Hannah, and Matthew?

Josh, Hanna, and Matthew have to determine if this is a viable opportunity for them. In particular, they need to decide if the expected income and level of independence (and other rewards of starting a new venture will outweigh the risk undertaken and significant amount of effort required. The case consists of little information regarding the leadership qualities of the three students (other than that Josh has acquired his MBA). Some self-analysis on their part will be required. As a group, they should use the Entrepreneurial Attractiveness (EA) Index:[1]

EA = [pic]

where Y = income, I = Independence, W = Work effort, R = Risk, and N = the number of years. wi are the weighting factors that can be adjusted based on their preferences.

Further, the three must

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