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Green-Tech: Bio-fuels High Growth Strategy
Green-Tech Inc., a Canadian company founded in 2006, was dedicated to developing, manufacturing, and marketing portable and stationary systems for the production of bio-oils and bio-char from biomass residues and wastes. Green-Tech was a recent spinoff from a large university research centre with a very good reputation for providing bio-energy solutions. Although focused and well positioned, Green-Tech had to manage relationships with large companies such as Shell that controlled vast and complete supply chains of oil-related businesses, as well as small firms and clients that were unable to manage their waste effectively. Large firms could provide plenty of business opportunities for Green-Tech, but could also jeopardize the company’s autonomy. Small customers on their own might not bring in enough cash flow, but could give Green-Tech sufficient freedom to pursue its own strategic goals. Both relationships seemed to lead to a promising future for this entrepreneurial start-up company, but also created serious risks. At the time of the case in 2011, Fernando Bruteque, vice president and one of the principal engineers of Green-Tech, was seeking the appropriate growth approach for Green-Tech. Being in charge of business operations, Bruteque also had to maintain a balance between research and development (R&D), investor and client concerns, and business opportunities. What would be the appropriate growth strategies and business operation strategies for a resource-constrained firm such as Green-Tech? How should it proceed?