Lorpel Partnership Model: Limitations Of The Partnership Model
Weakness
The partnership model is one of the limitations of LorPel because when a problem arose, each of them held different ideas, and none of them had the authority to make the final call. If they would not compromise regarding the firm’s blueprint at all, the partnership might have to come to an end. Normally speaking, if there are no specific company policies in place to direct and govern a firm, the operation or growth would not sustain for a long time. In partnership like LorPel, the success of the business heavily depended on the three partners. It is obvious that business risk of the partnership is rather high because none of them was not regarded as experienced and successful businessman.
Opportunity The biofuels industry was flourishing …show more content…
For instance, once the conventional energy price goes down, wood pellets could lose the market rapidly. Therefore, simply taking advantage of the high cost of fossil fuels to take up the market share is not advisable, since the energy price always swings significantly in different business cycles. That being said, LorPel would be able to sustain by distinguish itself from the traditional resources. For example, they only use the by-product of sawmill as the raw material, which in turn makes them a “green-oriented” company. This strategy can add the extra value to the product other than the simple form of energy. Another possible transform in the energy market would be the alternative energy, such as solar, tidal, nuclear, and thermal power. These types of power are not only cost-effective, but they are also environmental-friendly. In front of those products, biofuel can easily lose all of its edge. From the standpoint of LorPel, what they can do to survive is keeping the pace with the latest technology and social trend. They could utilize the financial recourse accumulated through selling wood pellets to develop more advanced alternative energy products. Only in this way can LorPel keep his position secure in the ever-changing
The partnership model is one of the limitations of LorPel because when a problem arose, each of them held different ideas, and none of them had the authority to make the final call. If they would not compromise regarding the firm’s blueprint at all, the partnership might have to come to an end. Normally speaking, if there are no specific company policies in place to direct and govern a firm, the operation or growth would not sustain for a long time. In partnership like LorPel, the success of the business heavily depended on the three partners. It is obvious that business risk of the partnership is rather high because none of them was not regarded as experienced and successful businessman.
Opportunity The biofuels industry was flourishing …show more content…
For instance, once the conventional energy price goes down, wood pellets could lose the market rapidly. Therefore, simply taking advantage of the high cost of fossil fuels to take up the market share is not advisable, since the energy price always swings significantly in different business cycles. That being said, LorPel would be able to sustain by distinguish itself from the traditional resources. For example, they only use the by-product of sawmill as the raw material, which in turn makes them a “green-oriented” company. This strategy can add the extra value to the product other than the simple form of energy. Another possible transform in the energy market would be the alternative energy, such as solar, tidal, nuclear, and thermal power. These types of power are not only cost-effective, but they are also environmental-friendly. In front of those products, biofuel can easily lose all of its edge. From the standpoint of LorPel, what they can do to survive is keeping the pace with the latest technology and social trend. They could utilize the financial recourse accumulated through selling wood pellets to develop more advanced alternative energy products. Only in this way can LorPel keep his position secure in the ever-changing