Ashley Evans James Jordan Sierra Law Chris Wiebe Jasmine Kurywczak

Agenda
1. Introduction 2. Getting to Know: Mango Material 3. External Environment 4. Internal Environment 5. Analysis of the Industry 6. Mango Materials Issues: Company and Industry Wide 7. Possible Solutions to Issues 8. Ideas for the Future Direction

Introduction
The "Green" Movement
"The future will be green or not at all. This truth lies at the heart of humankind's most pressing challenge: to learn to live in harmony with the Earth on a truly sustainable basis" - Sir Jonathon Porritt, Economist

The "Green Product": BioPlastics
‡ Definition: Plastic derived from a plant based source, such as corn starch or vegetable oil o An alternative to petroleum-based fossil fuels

BioPlastics Viability
‡ 90% of plastics can be replaced with BioPlastics o US plastics industry currently grosses $379 billion annually ‡ BioPlastics is expected to take 30% of the US plastics market share by 2025

Meet the Founder
‡ Molly Morse, PhD, CEO ± Grad/PhD student of Stanford in Civil and Environmental Engineering ‡ Clean tech consultant o Mayfield Funds ‡ Started Mango Materials based off research in biocomposites and bio-plastics

Meet the Contributors
‡ The team: Also includes Bill Shelander- Business Development, 20 years venture capital experience ‡ Cleantech Open Mentors
o o o

Andra Pligavko David Rummler Nabeel Hasnain Sarah Billington Craig Criddle

‡ Advisory Board:
o o

Technology
‡ Process = ³Cradle to Cradle´ o Methane --> Microbial Process --> BioPolymer -> Products --> Modern Landfill or Digester --> Methane  Requires minimal inputs and the byproducts are recycled back into the patented production process  Taking gas and making PHA pellets  Uses: structural plastics (toys, packaging, water bottles, etc)vs functional plastics (cosmetics)

Mango¶s Patent-Protected Process

Current Economy

Socio-Cultural
‡ Traditional and Social Media are spreading the word ³Green is in´ ‡ People are voting with their dollar for compostable and renewable products! ‡ Disasters like the BP oil spill are only exacerbating consumers to cry out for renewable technologies. ‡ People are getting vocal, ³hey pick that up!´

Political/Legal
³Going Green´
‡ Receiving support on a political level ‡ In mid 2009 the San Francisco Board of Supervisors approved a measure to improve upon the existing waste management policies. o Residents are now held accountable for improper disposal of compostable, recyclable, and landfilldestined waste.

Suppliers

‡ ‡ ‡ ‡

Agricultural: Released from farming Municipal: Sewage waste/ landfills Industrial: Bi-product Stranded: Methane Fields

Competitors

Five Forces Model
‡ Threats of New Entrants
o

Medium to High

‡ Bargaining Power of Suppliers
o

Medium

‡ Bargaining Power of Buyers
o

High

‡ Threats of Substitutable Products
o

Low

‡ Rivalry Among Competing Firms
o

Low

Bio-plastics Functional Plastics Industry Structural Plastics
‡ ‡ ‡ ‡ ‡ ‡ ‡ Agriculture Building Electrical Furniture Materials Handling Packaging Transport ‡ ‡ ‡ ‡ ‡ ‡ Medical Pharmaceutical Paints Cosmetics Detergents Toys

‡ ‡

Petro-plastics Bio-plastics o Cereplast o Metabolix o Natureworks o DuPont o Tianan Biologics o BioCycle o Biomer

‡ ‡ ‡ ‡ ‡

Spargers Fermenters Bio-Reactors Extractors Methane o Agricultural o Industrial o Municipal o Stranded

‡ ‡ ‡

Additives Digesters o Wet anaerobic o Dry anaerobic Engineering, Construction & Project Management Services

The Internal Environment
‡ Resources (tangible and intangible)
o o

A patented process Intelligence of Staff Developed a patented process to produce PHB from methane-consuming bacteria, a process that is much less capital intensive and has significantly lower operating costs

‡ Core Competencies
o

Consumers
Consumers: ‡ Plastic converters who extrude, mold, and form plastic to produce materials such as bottles, toys, plastic packaging, electric casing, and films o Rubbermaid, Green Toys, Steelcase, Cereplast

Strengths
‡ Produces PHB, requires just 57-77% of the energy required for the production of petroleum-based plastics ‡ Company uses methane as the feedstock instead of glucose and sucrose, which saves the company 30% o Price is comparable to that of petroleum-based products, and half the price of other biodegradable plastics ‡ Higher ROI than other methane uses o Such as: to power vehicles or heat/power buildings

Weaknesses
‡ Have not yet been able to demonstrate pilot scale production capability

Threats
‡ Plastics Industry on the whole, an unsustainable industry. ‡ Greater transparency regarding environmental degradation due to non bio-degradable plastics ‡ Bio-plastics made from sugars sourced from grain and sugarcane, are in direct competition with world food supplies. ‡ Petroleum-based products are currently the cheapest and most widely used.

Opportunities
‡ Bio-plastics industryo Undercut Petroleum Market ‡ Horizontal Integration
o

Complementary Operations  ie. Digesters, construction, engineering etc. Securing future methane supply Toys, packaging, closing the loop

‡ Backward Vertical Integration
o

‡ Forward Vertical Integration
o

‡ Lower cost than those competing w/bio and petro-plastic.

‡ Positive Impact on the environment ‡ Best of both worlds

Opportunities

Problems:
‡ Need to Enter Market
o Technical o Cost o Product Acceptance

Technical Solution
‡ Financing: Get Out of Lab
o o o

Loan, Grant, Venture Capitalist Trade Shows  Clean Tech Open Department of Agriculture Bio-Preffered Program

Cost Solution
‡ Contact High-End, Specialized Producers ‡ Promote Tax Incentives
o

Federal Research and Development Tax Credit 

"Encourages U.S.-based manufacturers to innovate and invest back into their businesses in order to compete more effectively on a global basis´

Product Acceptance Solution
‡ Offer a Free Sample Once they are able to produce at a larger capacity
o o

Children Toys, Construction, Packaging, etc. Currently many companies want samples of Mango's product  7 liter reactor doesn't allow them the capacity

The End

Any Questions?
**All Information came from the material that was given to us by professor**

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