The Feed Resource Recovery Case Study

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Abstract The Feed Resource Recovery case study presents many issues, however the major ones are; Opportunity, Entrepreneurship and Resources. This paper will discuss the issues and analyze the options and how to address them. Analysis of FEED Resource Recovery The Feed Resource Recovery concept is simple; to provide supermarket and restaurants with an onsite waste processing system that converts previously discarded food waste into a source of renewable energy and organic fertilizer. Having a great idea is just the beginning, to take this to the market they will have many issues to overcome. Opportunities Issues Time is always an issue for new business, but in this industry it is a little more…show more content…
The amount of money could be a problem if it’s not enough. Also, there are more alternatives for financing; for example, there are many centers of research and development with limited partnership. One issue that Shane must take a look at is the contract, but this could be addressed with a good lawyer. This loan is for a short to medium time frame and the amount is not so much, however it is enough for the early stage. I think Shane’s idea could be implemented in other markets like the agricultural industry. They have a lot of cattle manure and corn. Shane could enter a contract with them about the financing then test in the fields and bring them a discount when the product was launched to market. I think is more feasible to do business with farms at this stage, because most retail options do not invest in this kind of project stage as they have smaller margins. When analyzing the data sheets, the projections shows that flow cash positive will be in the third year and net earnings of 14% in the fourth year, however the Investors requirement is two years. But if the market is growing quickly, the return of investments could be reduced to least than two years and with that projection some angel investors could come in to support him. Shane must decide about the status of ownership with the business, but if he can find another source of financing for this stage he must control the situation and close the contract with better
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