Ethanol: The Fuel Project

High School ・Business ・APA ・2 Sources

Tired of living as a banker in environments of New York and Hong King, she considers the idea of moving to a peaceful environment as it sounds like a great chance. She got support from her colleagues and friends of the federal government’s plans to increase ethanol from corn and to replace gasoline. Due to this, more ethanol factories would have to be constructed and a demand for corn will also rise. There will be more demand for ethanol and new ethanol factories will be built and this will create more job opportunities.

I do not think my colleagues have enough information for it to be considered "good advice." Absolute consultation has to be taken when making a major decision, and anyone will need to take many factors into consideration for the perfect rewards to be realized. First of all, quitting her job as an investment banker that he has had an experience of five years. The startup cost of relocation and operating the farm could be considerable and may cost more than is readily available. In the case, many co-coworkers are encouraging and cheering her on. Unfortunately, most of her the co-workers lack the relevant experience to give viable business advice especially in a new venture that hasn't been there before and the government is initiating it for the first time (Pimentel, 2003).

The concept of value creation will also pose a challenge since this is a new field that the government wants to initiate and there are few references and experiences of the process. Value creation determines how your business will operate to make profits. By learning the business beforehand, you can determine how you will create and capture possible value, and this might be a problem since it is a new idea wanted to be initiated by the government. Hence, she needs to be innovative and find ways to create ideas that are not easily identifiable by her competitors so they are less likely to copy her ideas which in turn can eliminate her profits. Reasonable means have to be identified ways to make your farm run more efficiently and cost effectively.

Project initiation that is intended to cover the whole country is not an easy task. And since the government has presented the idea, extensive research will be funded so that the government can find facts about the project. The government will have to find the necessary capital to build these ethanol factories and then take the time to convince its population to changes from using gas to ethanol. Even the motor vehicles themselves will have to be improvised to be capable of running on ethanol if not buying new cars. This is something that will take years, and I would not advise on such decision.


Having support from people when making a difficult decision is important but not enough. Several risks and returns analysis have to be carried out to determine the net worth of the new business venture. To become a successful corn farmer you have to understand the business itself, its opportunities, risks, profits, the future expectation in the market, the market size and determine how you will make and capture value (McAloon et al., 2000). The time span is also an important factor of consideration since government project can take even twenty years.


McAloon, A., Taylor, F., Yee, W., Ibsen, K., & Wooley, R. (2000). Determining the cost of producing ethanol from corn starch and lignocellulosic feedstocks. National Renewable Energy Laboratory Report.

Pimentel, D. (2003). Ethanol fuels: energy balance, economics, and environmental impacts are negative. Natural resources research, 12(2), 127-134.

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