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
Environmentalists
Shrimp Industry
Shrimp Aquaculture
Firms
Policy Groups
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 INDUSRY
GROUP 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
Demand
Increase in
production
(source of
profits)
Increase in
supply
Decrease
in prices
Decrease
in prices
Utilization
of cost
effective
methods
Prisoners 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
Utilization of Resources
24%
24%
Fully exploited
Overexploited
52%
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 Clarkes sustainability mission
Companys 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 Clarkes products
Categories:
Conventional
Advanced
NextGen
Meant to emphasise Natulars 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 dont meet Clarkes standards of do-no-harm or do-less-harm
Sustainability culture -> doesnt 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
Clarkes 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 doesnt 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
Electrical units
Change in spraying techniques
Comparably safer as well as effective
-> cost cutting
Challenges ahead
Bulk
of products do not meet companys 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
Cons
Because of new vision, have to do
away with it as it is extremely toxic
Product already has a proven track
record
Would be the first step towards
long term goal of the company
Dangerous for company to
withdraw from market
Future utilization of resources in
line with companys sustainable
policies
Stakeholders resistant for the
change to happen
Very high risk
Would make way for Natular
Changing the game Introducing Natular
Pros
Cons
Environmentally friendly 15X
less toxic
High Efficacy - >95%
Easy application no protective
gear
Some MAD directors liked Natular
and were willing to recommend
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 directors network the person to person connection
was working
Convince the employees of the value in sustainability so that it no longer
remains merely Clarkes vision
EcoMotors
International
H15005 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
EcoMotors
formed in 2008
upon split of
CAP. L3
Communications
- military use
EcoMotors -
$15 million
contract by
DARPA to
develop an
OPOC design
for military
trucks and tanks
Initial design
developed at
Volkswagen but
not
implemented
Joined APT ,
developed an
OPOC design
which got the
attention of
DARPA
commercial use
CAP, a joint
venture
formed with
L3
communicati
ons in 2006
CURRENT SCENARIO
2008-2013, the CEOs 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
Fuel efficient
Dual OPOC 35-40%
more fuel efficient
Low material costs and
capital expenditure
40% lighter and 40%
smaller
Less than half the friction of 4-stroke engine
Twice the number of power strokes per revolution
Better surface area to volume ratio
Can be decoupled one engine can be turned off
when decelerating or idle, saves power
Doesnt require valve trains or cylinder heads
Reduction in small complex parts
Reduced manufacturing complexity due to lower
number of complex moving parts
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
MATERIAL COST
Conventional Engine
EcoMotors OPOC Engine
Base engine short block
assembly
2020
916
Cylinder head & valve
train
1660
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
431
246
13
444
254
90
48
534
302
Manufacturing Subtotal
Other supporting
departments
Total manufacturing
Supplier tooling
Total plant investment
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 market
107.3 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
the so
what
the
what
the
how
How to
sell to
market
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
Sustainable Development :
EcoMotors International
Submitted byAman Tripathi
C.Anish
Manas Tiwari
Pritha Dube
Snigdha Talapatra
Section C HRM 2015-17
EcoMotors International: Company Profile
Started by Peter Hofbauer: 20 years
guiding development of Volkswagen and
Audi engines globally
Series of financing rounds led by Khosla
ventures, Bill Gates and Braemaer Energy
Gene pool engineering: Hiring key
personnel like Don Runkle, CEO, Amit
Soman, COO and Ian Ridley, VP
Technology
Lean
Startup
Approach:
Creating
minimum viable products and controlled
scale up
2003: OPOC design developed at
APT
$15m DARPA contract for their
helicopters, and military trucks &
tanks later
2006: JV between L3
communications and APT called
Compact Advanced Propulsion
2008: EcoMotors formed upon
splitting of CAP, retaining rights to
develop OPOC design for
commercial use
EcoMotors International: Company Profile
Fuel
efficiency:
15%
improvement
, upto 35%
for dual
OPOC
Current Scenario:
40% lighter
and 40%
smaller
Opposed Piston,
Opposed
Cylinder
(OPOC)
lower
material and
capital costs
Additional
seating space
or payload
200m$ of licensing agreement with Chinese
conglomerate, Zhongding Power for EcoMotors 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.
EcoMotors International: SWOT Analysis
Strengths
Opportunities
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
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
SWOT
Higher oil prices
Higher fuel economy standards
Increasing awareness of climate change
Complexities in Hybrid & Electric
vehicle business model
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
Decision Variable: Market Segment Factors
Customers
OEMs who are Engine Integrators
OEMs who are Engine Aggregators
Established Independent Engine Makers
New Independent Engine Makers
Emissionized Zones
Europe
US & Canada
Asia & Africa
Oceania
Latin & South America
Market Application
Passenger Cars & Light commercial trucks
Medium and Heavy duty on-road
Off-road
Others
Growth Rate
Overall Volume
Captive Markets
Average Horsepower
Decision Variable: The Business
Model
Licensing
Pros:
Lower Risk
Capital Lightness
Cons
Lower long term value capture
Intellectual Property Rights issues
JV Partnership
Pros:
Non capital intensive
No IP rights risk
Partners strengths can be leveraged
Cons
Untested option since JVs only with companies
having proven technology.
Make-and-sell
Pros:
Higher long term value capture
Full Control
No IP rights risk
Cons
Capital intensive
Outside the domain of expertise
Lease & Subscription
Pros:
Reduces apprehension of customers
Cons
Time intensive
Never been successfully used in automobile
sector
Lower long term value capture
The Decision Matrix
Critical Success Factors
Lower Implementation Less Break Higher Value Larger Market Growth Lower Emission
Cost
Even time
Capture
Share
Rate
Standard
Decision Variables
Captivity
%
Best
Option
Integrators
Aggregators
& New
Entrants
Aggregators
Cutomer
Independent
New
Market
Segmentation
LCV
M&HCV
Off Road
Europe
US & Canada
Asia & Africa
Oceania
Latin & S.America
Licensing
Make-and-sell
JV Partnership
Lease & Subscription
Market
Application
Emissionized
Zones
Business Model
M&HCV
Best Option
2nd Best Option
3rd Best Option
No data available in case
Asia, Africa,
Latin & S.
America
JV
Partnership
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 OnRoad 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
4 stroke engine
2 stroke 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
Customer Segments
Engine
Integrators
Engine
Aggregators
Established
Engine
Makers
New Entrant
Engine
Makers
OEMs who manufacture both the engine
and the equipment
Prefer only proven technology and focus is
on Economies of scale
Outsource manufacturing of engine and
assemble equipment in house
Prefer proven engine technology
Focus solely on engine manufacture
Pride themselves on advancing engine
technology
Companies based mainly in emerging
economies
In process of scaling up their manufacturing
and looking to enter Global markets
Market Segments
Light Duty
On-road
Vehicles
Largest market by volume
Light passenger vehicles & cars
Dominated by Engine Integrators
Medium &
High Duty
Vehicles
Smallest market by volume
Work trucks & trailer trucks
Looking for innovation through
better fuel efficiency
Off-Road
Vehicles
Second largest market by volume
Highly fragmented
Agriculture, construction, industrial,
marine & power generation
Business Models
Licensing
Earn revenues through royalty through licensing
Risk of the IP being modified and taken over by client
Make & Sell
Control the entire value chain, larger long term value
capture
Huge initial investments and no expertise in S&D
Joint Venture
Partnership
Partner with an established company and hedge the risks
Companies going for JV prefer proven technology
Lease &
Subscription
Either make the engines or partner with a company
Provide the engine upfront and get paid slowly
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
Gain market share by
using JV partnership Bplan
Build Trust using Lease
& Subscription Method
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
Focus on engine
integrators
Move to Make & Sell
Strategy
Light Duty On-roadVehicles
THANK YOU
