Re-read the Learning Activity titled “Applying the Scientific Method,” where arguments are made that the business activity of the case study followed the steps of the scientific method. Select one stage of the scientific method and describe the activity that was done by the business at that stage. Clarify why that particular activity is construed as having completed one phase of the scientific method. Detail what other options might have been under consideration at that point in the business activity.

Applying the Scientific Method Introduction Addressing a problem in the environment by starting a business to improve or eradicate it is a wonderful idea. So, the question is, did Andrew Kellar apply the scientific method in making decisions in his company? As you read this section, take note of how Kellar used the scientific method, and think about how this relates to your topic. Does it seem like the scientific method is helpful? Why or why not? Respond to these questions in your Learning Journal. When you apply the scientific method to analyze a situation or case, you are breaking down a topic or issue into a series of various steps. For instance, the case presented on Simply Green Biofuels illustrates the various steps in the scientific method process. In this section we take the various steps of the scientific method and apply them to the case that was presented to see how these steps can be applied. · Choose a problem: What was the problem he addressed? In 2003, Simply Green was founded by entrepreneur Andrew Kellar as an erosion control and hydro-seeding business. It was a seasonal business that fit well with his preferred lifestyle. He was happy with the business but became concerned because of the large amounts of diesel fuel that his growing business demanded. This concern led Kellar to investigate alternatives. Were there options for fuel that could still power his business but reduce his negative impact? In a nutshell, the problem that Kellar chose to solve was: Was there a more sustainable alternative to the extreme dependence on fossil fuels needed to run the fleet of trucks used to conduct his daily business with his hydro-seeding company? · Develop a hypothesis (relative to the literature/existing information on your problem): What was Kellar's working hypothesis? Entrepreneur Andrew Kellar’s concern about the environment led him to investigate alternatives. Were there options for fuel that could still power his business but reduce his negative impact? Biofuels would be a good alternative source of energy for his existing fleet of trucks, and providing biofuel energy to paying customers could become an effective sustainable business. · Collect observations, data, or do an experiment (relative to your topic): In the real world, how do we know when we see data? Data is information. In this scenario, Andrew Kellar did his homework to check out and research alternatives to traditional petroleum-based energy sources in his home state of New Hampshire before he jumped in and started a business. When he started to investigate alternative energies, he discovered the biofuel industry. This industry was in line with his desire to reduce the negative environmental impact that would occur with use of traditional diesel. Kellar the entrepreneur had previously gone through an audit with the USDOT (U. S. Department of Transportation), and through that process had learned a lot about the option of biofuels. As he investigated further, he found that the United States federal government was very involved in providing subsidies to companies that use biodiesel fuel to help them be more competitive with other traditional sources of fuel. His research involved talking to people who were knowledgeable about the home heating business and researching the various new sustainable technologies that were out there. Through conducting these various avenues of investigation, he settled on biofuels as a viable source of energy. The main method that he took to test his hypothesis was running an experiment. That experiment involved employing a soft market entry approach. Kellar was able to try out and test various aspects of the business with people he knew and met through his first hydro-seeding business. Additionally, he worked a lot during this time to engage in many different public speaking opportunities in the community to highlight the importance of biofuels and the role that his new company could play in this. These efforts helped with another challenge—educating their potential customers about their product and value proposition. Kellar's experiment was the small-scale entry into the market with the product BioHeat. Additionally, through some social connections, Kellar was able to deliver the sustainable biofuel product to a high profile band that was coming through the area. Through this process he made connections with a group called Reverb, which promotes sustainable energy use among musicians. In November 2008, Simply Green received the Innovation Rock award by the New Hampshire Department of Resources and Economic Development and was given the first of many commendations by Governor Lynch. The fact that they received a highly prestigious environmental award illustrated that they were engaging in sustainable resource use. This in turn further acted as support and data for the general public, who were looking for a sustainable alternative to traditional home heating fuel sources. At about the same time, Simply Green began its research and development into third-generation biofuels in conjunction with the University of New Hampshire, and started to apply for grants to study algae as a feedstock to make biofuels. · Analyze your data (look for patterns/apply a systems conceptual model): If we look at the timeline of activities for the Simply Green Biofuels presented above, we see that the company initially started in April of 2007. Simply Green was entering an established market for fuel that had certain characteristics that the company had to understand and figure out how to effectively compete in the context of these characteristics. While most of the competition was based on price, it was also subject to strong customer loyalty to dealers who had been delivering their fuel for a long time. A larger dealer might be making $0.60 a gallon over wholesale, versus $0.40 a gallon for a smaller establishment. Simply Green usually fell in between these, as it was unknown whether customers would pay a premium for a more environmentally friendly product. So the experiment was to enter the market with a moderately priced fuel source that was viewed as being good for the natural environment. It also occurred at a time when the general public consciousness about global warming was being raised by art, culture, and the news. Andrew’s company was able to build off this general public interest in the positive sustainable energy source. Additionally, the company had made sure to put a good image out there in the larger community through hiring drivers that presented a positive image of the company and who served as educators for the larger population about the benefits and advantages to using biofuels versus traditional fuels. Apply the Systems Conceptual Model If we apply the systems conceptual model here, we see that Kellar developed his biofuel business within the larger social context of communities and populations who had an interest in choosing a sustainable source of energy. The public discussion around global warming was reaching its peak in the late 2000s, and Kellar was able to draw upon the general public interest in this topic as he designed his business. Additionally, his business was couched within a rurally based and harsh climate of Maine and New Hampshire that get very cold in the winter time and require a constant supply of energy. · Draw conclusions (make decisions based on your analysis): The general conclusions associated with the biofuel project and Kellar's initial hypothesis was that yes, there were economically viable alternatives to the fuel dilemma that were indeed met by the biofuel source. Additionally, some other important lessons emerge as well, such as the role that social networks play in the sharing and disseminating of a new idea of project. Kellar was extremely successfully as a business owner because he was able to connect with the larger public and established excellent community engagement and education about his product. He also had enough experience from his first business to test out some ideas with a small group of consumers before bringing those ideas and practices to a larger, more extended consumer base. Andrew made sure that in developing a successful business he checked out all of the options and collaborated with the University of New Hampshire to conduct further valuable research. Additionally, Kellar turned out to be a real systems thinker! He was able to create a business, couch it within the context of an environmentally conscious public, and produce a product that had a much reduced carbon footprint and thus was more positive for the overall environment (Gittell, Magnusson, & Merenda, 2012, Chapter 7). Note. The material in this section was written by Sheila Steinberg, except where otherwise noted. Copyright 2014 by Flat World Knowledge, Inc.