A four-person team from the School of Natural Resources and Environmentí¢â‚¬â„¢s dual-degree program with the Ross School of Business recently received the $10,000 top prize as part of the Inaugural Africa MBA Business Plan Competition. The competition was designed to generate business ideas for investment in Africa.

The students í¢â‚¬“ Tony Gross, Mike Hartley, Jeff LeBrun and Ali Moazed í¢â‚¬“ focused their business plan around Mozambique, and specifically the cultivation and production of Jatropha, a hearty and drought-resistant plant. The plant has significant potential as an alternative energy source (otherwise known as biodiesel). From the plantí¢â‚¬â„¢s seeds, a crude bio-oil can be expelled, which then serves as a primary input for biodiesel.

The studentsí¢â‚¬â„¢ business plan further outlined how to market this bio-oil extract regionally and globally. Overall, the judges found the studentsí¢â‚¬â„¢ work successfully addressed the problems of global warming, energy security, high oil prices and the need for economic development in Africa.

í¢â‚¬Å“We are extremely proud of our students for both creatively and competitively applying the knowledge gained from our distinct dual-degree program,í¢â‚¬  said Rosina M. Bierbaum, dean of the University of Michiganí¢â‚¬â„¢s School of Natural Resources and Environment (SNRE). í¢â‚¬Å“Teaching students the ability to address real-world problems in economically sustainable ways is a hallmark of the program.í¢â‚¬ 

Knox Lawrence International, LLC (KLI), a New York-based private equity firm, sponsored the competition. In selecting the SNRE-Ross team, the judges emphasized the depth and concreteness of their plan, as well as the groupí¢â‚¬â„¢s teamwork, honesty and passion in presenting it.

í¢â‚¬Å“We at Knox Lawrence International are very pleased with the outcome of the Business Plan Competition,í¢â‚¬  said Johnson Kachidza, a KLI managing principal. í¢â‚¬Å“We believe innovative ideas will go a long way towards solving some of society's burning questions.í¢â‚¬  The announcement was made in January at New York Universityí¢â‚¬â„¢s Stern School of Business Berkley Center for Entrepreneurial Studies.

The SNRE-Ross teamí¢â‚¬â„¢s concept, called Mozergy, emerged from the groupí¢â‚¬â„¢s masterí¢â‚¬â„¢s project titled í¢â‚¬Å“Renewable Energy for the Mining Industry.í¢â‚¬  As part of that project, the four students are helping client BHP Billiton evaluate renewable energy projects to support its global mining operations.

The studentsí¢â‚¬â„¢ faculty advisers on both the masterí¢â‚¬â„¢s project and the Africa MBA Business Plan Competition are: Gregory A. Keoleian, an SNRE professor of sustainable systems and co-director of its Center for Sustainable Systems; and Gautam Kaul, the John C. and Sally S. Morley Professor of Finance at the Ross School of Business. The team acknowledged the significant support they received from their advisers as well as the Erb Institute for Global Sustainable Enterprise; the Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies (ZLI) at the Ross School of Business; and BHP Billiton, the worldí¢â‚¬â„¢s largest diversified energy company.

KLI began the competition last year by first targeting second-year MBA students at leading U.S. business schools who were interested in entrepreneurship, emerging markets and microfinance. Student teams from many schools later submitted plans; three finalists were announced in November. The teamsí¢â‚¬â„¢ business plans were evaluated in mid-December by Knox Lawrence executives and industry leaders.
KLI intends to hold the competition annually. Each year, the theme of the competition will be Africa-focused. The competition will serve as a platform for the winners to implement their plan upon graduation.

Building on their success, the student team is working on incorporating Mozergy into a real company. Meanwhile, they want to enter the business plan in two more competitions: the Global Social Venture Competition in April at the University of California, Berkeleyí¢â‚¬â„¢s Haas School of Business; and the Rice Alliance Business Plan Competition in March at Rice University.

They also plan to apply for funding through a variety of sources, including í¢â‚¬Å“Dare to Dream,í¢â‚¬  the William Davidson Institute, the Erb Institute and ZLI. The team also plans to spend time this summer to develop partnerships and relationships to further develop the plan to see if it makes sense to move forward with it. Should their business plan become a reality, they have a potential customer í¢â‚¬“ Imperium Renewables í¢â‚¬“ interested in purchasing the biofuel produced.

The dual-degree program, now in its 13th year, confers a master of science degree from the School of Natural Resources and Environment and a master of business administration degree from the Ross School of Business. The Erb Institute sponsors the world-renowned program. Erb students gain an understanding of the complexities associated with the issues of managing organizations with environmental, social and economic challenges. SNRE and Ross allow students the flexibility to tailor courses of study so they are prepared to face the challenges of meeting the ideals and the realities of sustainable enterprise.

The Erb Institute is designed to equip executives, managers, and environmentalists with the skills and knowledge necessary to create environmentally and economically sustainable organizations. Business is being challenged to create entirely new, environmentally sustainable strategies. At the same time, environmental organizations need business savvy and economic expertise to keep their own enterprises afloat and to address the often difficult economic issues that are an inevitable part of solving environmental problems.

ABOUT SNRE:

The overarching objective of the School of Natural Resources and Environment at the University of Michigan is to contribute to the protection of the earthí¢â‚¬â„¢s resources and the achievement of a sustainable society. Through research, teaching and outreach, faculty, staff and students are devoted to generating knowledge and developing policies, techniques and skills to help practitioners manage and conserve natural and environmental resources to meet the full range of human needs on a sustainable basis.

Related links:

School of Natural Resources and Environment: http://www.snre.umich.edu/

Center for Sustainable Systems: http://css.snre.umich.edu/

Ross School of Business: http://www.bus.umich.edu/

Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies: http://www.zli.bus.umich.edu/

BHP Billiton: http://www.bhpbilliton.com