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DaimlerChrysler - POEMAtec Alliance; Partnering for Mutual Success

Company name
DaimlerChrysler and POEMA

Author(s)
Yerina Mugica and Ted London

Source
World Business Council for Sustainable Development

Access this case
DaimlerChrysler - POEMAtec Alliance; Partnering for Mutual Success 

Year published 
2004

Last year covered in case 
2003

Abstract

Mr. Mandich's machine devours pine chips from Georgia and turns them into an energy-rich gas, a step toward making liquid fuels. His company, Range Fuels, is near the front of the pack in a technology race that could have an impact on the way America powers its automotive fleet, and help ameliorate global warming. For years, scientists have known that the building blocks in plant matter — not just corn kernels, but also corn stalks, wood chips, straw and even some household garbage — constituted an immense potential resource that could, in theory, help fill the gasoline tanks of America's cars and trucks. Mostly, they have focused on biology as a way to do it, tinkering with bacteria or fungi that could digest the plant material, known as biomass, and extract sugar that could be fermented into ethanol. But now, nipping at the heels of various companies using biological methods, is a new group of entrepreneurs, including Mr. Mandich, who favor chemistry.

Teaching note

  • N/A

Key Management Reading

  • Ambec, S. & Lanoie, P. (2008). Does it pay to be green? A systematic overview. Academy of Management Perspectives. 45-62
  • Reinhardt, F. (1999). Bringing the Environment Down to Earth. Harvard Business Review. July; 149-157 

    Other Readings

    • Wilson M, Schwarzman M, Malloy T, Fanning E, Sinsheimer P. (2008) Green Chemistry: Cornerstone to a Sustainable California. Special Report to the California Environmental Protection Agency. University of California Centers for Occupational and Environmental Health 
    • Poliakoff, M., & Anastas, P. (2001). A principled stance. Nature, 413(6853), 257.
    • Hjeresen, D.L., Kirchoff, M.M., Lankley, R.L. (2002) Green Chemistry: Environment, economics and competitiveness. Corporate Environmental Strategy, 9(3). 259-266 
    • Manley, Anastas, Cue. (2008) Frontiers in Green Chemistry: meeting the grand challenges for sustainability in R&D and manufacturing. Journal of cleaner production. 16:743-750 
    • Larson, A. (2006) Illustrating the Financial Benefits of Green Chemistry. Darden Business Publishing. Case #: UVA-ENT-0076

    Audio/Visual Material

    Discussion Questions

    • Which principles of green chemistry are used in the case?
    • How do the principles of green chemistry translate into business benefits?

      Green Chemistry Principle

      • Principle 1 Prevention
      • Principle 7 Use of Renewable Feedstocks 
      • Principle 10 Design for Degradation

      Industry
      Automotive and Transportation

      Teaching Topic
      Business-Government releations
      Community Development/Economic Development
      Environmental issues
      Innovation
      Poverty Alleviation
      Private/Non-profit Partnerships
      Social marketing
      Sustainability
      Technological change and development 

      Management Discipline
      Business, Government and society
      International
      Operations
      Strategy
      Technology

      Business Logic
      Differentiating products
      Reduced cost
      Relations with external stakeholders

      Environmental Issue
      Recycling
      Waste 

      Region
      North America

      Self Identified as Green Chemistry?
      No

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