Vision and Opportunity
Executive Summary
The preservation of the environment is one of the main issues that bother modern society. As humans, we have the duty to reduce our influence on nature and resources in order to ensure that they remain in the best condition possible for future generations. In this paper, I am exploring my plans for the development of a future business idea of developing sustainable fuel that will not be harmful to the environment. The plan will consider a range of relevant components ranging from the vision and mission statement to the SWOT analysis of the company. I have found that despite the idea being ambitious in both planning and implementation. However, with the right approach to the idea and with the support from professionals in the field of business management, the opportunity has great potential.
Business Details
My hypothetical business is to create a company that will work on addressing the problem of environmental pollution caused by excessive vehicle use. The company will work on the research and development in the fuel industry to reduce the environmental impact of fuels and create a sustainable fuel that can power engines without additional expenses.
Vision
My long-term vision statement is to transform the way of doing business by emphasizing the aspects of business ethics and environmental sustainability. I am very much concerned about the aspect of environmental sustainability. As a citizen of the world, I believe that my purpose is to leave the earth a better place than I found it. I will ensure that my business is concerned about the future of our environment by implementing proper waste management strategies. One of the things I will have to think about when trying to achieve this vision is the impact I intend to have on my business.
Mission
In regards to pursuing various opportunities, developing a personal business statement is essential, especially in terms of establishing goals after graduation. A personal mission statement will allow me to define my values and what ultimate success looks like, as well as articulate them professionally. I think that an appropriate mission statement for my future career will be “to serve as a successful leader, live a healthy and balanced life, as well as develop as a well-rounded professional and human being.” This statement captures multiple aspects of my life and enables me to work on personal relationships, professional career, as well as health and well-being.
The Business Idea
The key business idea is creating sustainable fuel that will power engines the same what which fossil fuels can. The idea requires significant research and development in the field of fuel chemistry. In addition, an attractive marketing strategy is needed to attract customers to the new development as it is expected that some people will be skeptical of the new fuel.
Business Goals
I intend to leave a mark on the protection of the environment by coming up with a solution to the problem of air pollution through fuel combustion. The best solution is to develop an efficient and more environmentally friendly fuel that can power engines just like fossil fuels do. Venturing into this sector successfully will undoubtedly render me a champion for the environment.
What the Business Does
The business works to develop sustainable engine fuel as well as supplying them to end-users. Due to the need to develop positive connections with customers, the company is planning to eliminate third-party suppliers and provide innovative fuel solutions to clients directly. In addition, to fuel the development and marketing of the product, the company will engage in nationwide environmental initiatives as well as support local organizations that promote the message of sustainability.
What Makes the Business Different
The business is different because of its combination of research and development efforts along with creating a community of individuals who care about sustainability. In my opinion, gaining a profit will be a secondary objective of the company because of the need to educate the public about the causes of their activities on the environment. In addition, the implementation of various initiatives for local community improvement will be among the trademarks of the company.
Legal Requirements
In regards to the legal requirements with which the company is expected to align, the key issue is aligning with the legislation and regulations of the petroleum industry. Since the company will produce sustainable fuel, it is expected to collaborate with government authorities for the development of appropriate procedures. It is possible that the company will implement a unique approach to the legal framework and rely on individually legislated agreements and contracts.
Market Research
The company has extreme potential in the field of fuel production because the global alternative fuel and hybrid vehicle market is expected to reach more than six hundred billion US dollars by 2022. Thus, market research points to the fact that the demand for alternative and sustainable engine fuels will continue growing. The company has the potential to capture this demand and introduce an innovative product that will also be beneficial to the environment.
Profiling Customers
In my opinion, anyone who owns a car could be a target customer of the company. Since the fuel is expected to work in the same manner in which fossil fuels work, all people who drive a car can gain value from the offered product. It is likely that customers will be eighteen and older, be car owners, as well interested in reducing the impact of their vehicles on the environment.
Profiling Competitors
Fossil fuel companies will remain the key competitors of the company because they are expected to remain profitable. However, the business may also encounter competition from companies specializing in providing electric power to the public as many vehicle brands have started manufacturing both hybrid and electric vehicles.
Strategy
Business Model Canvas
- Customer Segments. The company is expected to operate within a niche market segment. This means that customers are expected to have specific needs, and the specific traits of the product will satisfy their requirements. However, market diversification is planned in the future as the product starts gaining more attention from the public.
- Value Propositions. Both quantitative and qualitative value propositions apply to my future business. From a quantitative perspective, the company will stress both the efficiency and the price of the alternative fuel. From the qualitative perspective, the value proposition of alternative fuel will highlight the experience that customers will receive when purchasing it.
- Channels. The fuel will be sold directly to customers through specialized stations. The company will own storefronts instead of using partner channels because of the need to eliminate third-party companies that can influence cost structure. This is also needed for strengthening relationships with customers.
- Customer Relationships. Community is the key form of customer relationships that the company is expected to develop. With the help of the Internet and social media, the company will develop communities that will promote the message of sustainability while promoting the products that it offers.
- Revenue Streams. The business will operate based on asset sales. This means that it will sell the right of ownership over the good to the customer.
- Key Resources. The company is expected to use a range of vital resources to stay relevant. Human and intellectual resources are especially important due to the high need to ensure sufficient research and development. Financial resources are needed to sustain the research in the field due to the complexity of producing reliable and high-quality sustainable fuel.
- Key Activities. The key activities of the company include research, the production of alternative fuel, its distribution, and marketing. Also, as a part of community work, the company will participate in environmental preservation efforts both on the local and national levels.
- Key Partners. Non-governmental organizations that deal with sustainability projects are expected to be reliable partners of the company. Their role will be to raise awareness of environmental issues and provide the necessary support in promoting alternative fuels.
- Cost Structure. The alternative fuel will be priced based on both indirect and direct costs. The price is expected to be the same as a fossil fuel because of high R&D costs, selling overheads, and high operational expenses.
Risks and Mitigation
SWOT Analysis
I also have to consider my personal strengths. My foremost source of strength is my ability to deal with people from all levels of leadership. I interact and adapt easily to my surroundings, and this will prove crucial in the development of networks and connections. Lastly, I have to consider the threats my business will face. My biggest threat is the use of petroleum by many cars and locomotives. Perhaps that is one of the reasons why biodiesel is less known in most parts of the world. Although hydrogen-powered vehicles are beginning to gain popularity in some developed countries, it appears that vehicle manufacturers do not fully appreciate the importance of green energy for environmental sustainability. This trend can be reversed if serious businesspeople emerge to avail green energy into the market.
Despite the challenges and threats, there are several existing business opportunities. The most significant is the constant need for fuel despite the depletion of natural oil reserves. Secondly, the negative impact of fuel on the environment makes alternative energy a viable business at this time. Indeed, within 3-5 years, I intend to attain an MBA to equip me with the necessary skills for implementing the business idea. If I succeed in producing biodiesel with enough fuel power, I am optimistic that the business will be up and running within the next 4-5 years.
It can be argued that many companies today lack proper implementation of business ethics which highlight the moral standards that must be maintained by organizations for the purpose of sustainability. As a result, my business idea is aimed at bringing in a new perspective of doing business without compromising the safety of society, both now and in the future. Towards this end, I intend to follow in the footsteps of three global icons, who are my role models, in the fight against environmental degradation and climate change, namely John Muir, Rachel Carson, and Charles Babbage.
Throughout my academic life, I have learned that failure is inevitable. However, how one recovers from it determines their survival. Since I have no vast experience in the job market, the only failure I can relate to is related to my studies. Although I have failed in exams before, I recollected myself and pushed on. I learned from my mistakes by rectifying the errors I had made while studying. Hence, having reached this far reminds me of the importance of resilience in whatever I do. I will transfer the same attitude to this business venture and environmental campaign. Regardless of the outcome, I will think of any failures as lessons learned.
Managing Operational Risks
Operational risk management (ORM) is defined as a continuous and cyclic procedure associated with such steps as risk assessment, decision making, and the implementation of risk controls. The procedure is expected to result in the acceptance, reduction, and avoidance of risks. For the company, ORM will be necessary for improving the reliability of business operations, strengthening various decision-making processes, as well as reducing the potential damage from future risks.
Regular ORM at the company will include risk identification, risk assessment, measurement, and mitigation, as well as monitoring and reporting. Risk identification is linked to involving all staff at every level of the company to evaluate the existing processes and identify barriers that limit their effectiveness. The assessment is concerned with the prioritization of the limitations that decrease the efficiency of procedures using both qualitative and quantitative measures.
Measurement and mitigation is the stage that will imply putting the necessary control in place to reduce the damage of identified and assessed risks. Lastly, monitoring and reporting, which is one of the most important steps, in my opinion, is the stage that will ensure that the changes are evaluated on a regular basis to analyze the effectiveness of the implemented changes.
Managing Market Risks
Market risk is defined as the likelihood of the possibility of an investor to experience a loss because of factors that influence the general performance of financial markets. For a company that produces alternative fuel, sources of market risks can range from political instabilities to recessions, which means that there is a range of variables affecting the success of the business. For instance, if the country changes its monetary policy, it is likely that the company would experience a decline in profitability because of the need to adjust to the new regulations.
Commodity risks are especially relevant in the case of my future business because changes in crude oil prices can reflect on profitability. If the prices decrease significantly, it is likely that customers will choose fossil fuels over alternative options because of their affordability. As a result, my company will experience a decrease in income.
Entrepreneurial Risks
As an entrepreneur with ambitious goals in the market of alternative fuel, there will be multiple risks that I will have to overcome. There are several distinct risks that I am likely to encounter after graduation when starting a career.
For example, there will be a problem of not having a steady paycheck because business owners will take a lot of resources, including financials. Estimating popular interest is another entrepreneurial risk because the process is complex and cannot guarantee the needed accuracy. Donating personal time and health is also a challenge because I will spend countless hours doing work that would ultimately make my business successful. I am aware of such complications as losing sleep, missing out on personal time, and experiencing overall stress. However, I think that the mentioned sacrifices are worth the goals that I have in mind.