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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