Aggressive Strategy for Pacific Ethanol, Inc.

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Ethanol Production. Ethanol Production. Market Definition. Ethanol from cornWest Coast. Preferences. RenewableProduced domesticallyBurns cleaner than fossil based powers. Monetary Information. Wellsprings OF REVENUEMerchant of ethanol from outsiders to customersProducers (2 plants operational, 3 in construction)Acting as operators for suppliers.

Presentation Transcript

Slide 1

Focused Strategy for Pacific Ethanol, Inc. Financial aspects of Business Decisions Team #3

Slide 2

Ethanol Production

Slide 3

Poof!!! Ethanol Production

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Market Definition Ethanol from corn West Coast

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Advantages Renewable Produced locally Burns cleaner than fossil based energizes

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Financial Information SOURCES OF REVENUE Merchant of ethanol from outsiders to clients Producers (2 plants operational, 3 in development) Acting as specialist for providers

Slide 7

Financial Information

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Five Forces Analysis Table

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Internal Rivalry Advantages P.E. is the main significant ethanol maker gathered in the Western U.S. Rate of Industry Growth/Excess Capacity Transportation Cost Advantage Disadvantages No Product Differentiation Potential for future abundance supply No Production cost Differences

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Entry P.E. has an upper hand because of … Loyalty – solid relations with gas, ethanol and grain providers Distribution Channels – truck conveyance and secured stockpiling at fuel terminals Favorable Locations – vital areas close mixing offices, railways and co-item purchasers (Midwest makers pay more for appropriation) Government Protection – levy shields local makers from imports

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Compliment & Substitutes Compliments: Gasoline Substitutes: Gasoline Ethanol from different sources Hybrid Electric Vehicles BioDiesel Fuel Cells

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Supplier Power: 300,000+ Corn ranchers Corn Price raising Buyer Power: Better position to administration west drift clients Demand for ethanol considerably higher than supply Highly thought client base Supplier & Buyer Power

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Government as Regulator Government endowments have assumed a noteworthy part for almost for 30 yrs Virtually every generation information and creation phase of ethanol is sponsored some place in the nation at the elected, state, or nearby level

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Strategy Short Term Increase generation limit Explore new sources to deliver ethanol from (sugar stick, and so forth.) Lock down customers & providers

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Strategy Long Term Develop ethanol as an essential fuel elective Moving higher up in the generation chain Research and Development Building & Maintaining Strong Relationships Foreign Relationships & Government

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Thank You!