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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 Prevent Waste
  • Principle 7 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 

Self Identified as Green Chemistry?
No

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