School of Mechanical and Manufacturing

Engineering

ENTREPRENEURSHIP
ASSIGNMENT 1
Submitted by: Muhammad Shozab Khan
ME-09 (C)

Submitted to: Sir Khalid Akhtar

 CASE SOLVING TEMPLATE

List of Actors/ Stake Holders/ Related organizations

Sr.# Name Position/ Relationship with

Designation Organization

1 Nathan Lorenz Student Founder

2 Tim Bauer Student Co-Founder
3 Paul Hudnut Professor Co-Founder
4 Bryan Willson Professor Co-Founder
6 Asian Development Bank and NGOs Monetary Investor
Organization
5 TODA Members Potential Leads Technology
Installers
7 Drivers Citizen Consumer

Identification of Issues

Sr.# Issue Immediate Basic

1 Low buying power of customers Y

2 Market halfway across the world Y
3 Lack of investment and potential Y
investors

4 Lack of mechanics for kit installment Y

5 Prototype Development Y
6 Developing a business model for the Y
triple – bottom – line impact
7 High Production Cost Y
Urgency / Importance Matrix.

Low Importance (Basic) High Importance (Basic)

Low Urgency  Developing a business model for the  Low buying power of target
triple – bottom- line model customers

High Urgency  Finding potential investors  Prototype Development

 High Production Cost

Analysis
One of the challenges that Envirofit International must face in order to start and run a sustainable company is
creating a business model that meets its three ultimate goals (people, profit and planet) and finding investors
who want to invest in their products in order to produce it on a large scale and find a way to cut the high cost
of making an upgrade kit to increase sales. Because the purchasing power of the target group in Manila is
extremely low. The market is on the other side of the world and a product launch in a developing country with
very little purchasing power for consumers is minimal.

Alternatives
To counteract the low purchasing power of Manila's tricyclists, microfinance is the best option, a kind of
support service that some organizations provide to new entrepreneurs to start their business and ensure the
success of that particular business. Envirofit International should find new microfinance providers that can
offer enough money to support drivers. This reduces the retail price of the upgrade kit and allows drivers to
purchase it. Develop a sustainable business model that is oriented to people and the planet and that also
generates income.
Envirofit needs to conduct a SWOT analysis to understand your strengths and weaknesses while evaluating the
opportunities and threats that exist in the market. Since commuters and tricycle drivers are aware of the
environmental issues caused by the systems currently in use, they will be encouraged to choose taxis with the
upgrade kit installed. This increases revenue and income for drivers through improved fuel economy
performance and creates a positive social impact by improving the health of drivers and passengers. This will
help you achieve all three of these goals over time. This plan is designed to be implemented in 5 stages of
product development to ensure product durability, reliability, and efficiency.
The company can also work with any leading company, especially those that make tuk-tuk cars or engines,
install the kit, and increase the availability of these cars. Any arrangement can be made with the government
or a global company regarding potential financing to run the business.
Decision Criteria
The decision criterion was since the technology should be commercially available, durable, and reliable, and
the system on a motorcycle could not be very energy efficient. Also, the kit should be relatively simple and
inexpensive to install (easy to install with a simple toolkit). Finally, the kit should consist of off-the-shelf parts
so that additional instrument costs and investments can be minimized. Plus, none of the original team
members wanted to go on without the others and were ready to spend two months fulfilling their dream.
They also made the decision to include more people in their trip as no one on the core team could make any
serious and sustained effort.

Preferred Alternative
The preferred alternative is incorporating the bottom-line objectives in product development to make the best
use of the decision of going forward with such an impactful initiative.

Action Plan with milestones

The action plan consists of five phases for the period 2004 to 2007 after the completion of the work plan. To
build relationships of movement and support, they initially planned to showcase their technology at the TODA
gathering to build trust and support among the thousands of riders out there. In the second phase, they
planned to field test various models to understand the kind of compatibility they would need to develop in
their product after carefully monitoring their performance, durability and emissions while working in daily
operating conditions in Manila. They also plan to train technicians on how to install and maintain the product
on various motorcycles during this time. In the third stage, they plan to find ways to reduce the cost of the
product through design and include ways to integrate microfinance into the business model so that a broader
target market can be attracted and ways to mass produce the product in the business. The fourth stage is the
massive commercialization of the product and the complete infiltration in the Philippine automotive market.

Missing Information