Internal Combustion Engines

The case study that will be analyzed in this report presents the case of Product Engineering, Inc. (PEI) firm in which established in mid 1970s at midwestern. It operates as air filter manufacturer that used in internal combustion engines. Started with the small and family-owned business oriented, the firm succeeds to expand it operation into large scale and as well as enhancement in product lines. It can be said that the company has achieved a positive growth since its founding.

The main question that the firm needs to crack is what needs to do in order to ensure the sustainability of the firm. Behind the encouraging attainment; the senior management teams realize that the firm's stability is still uncertain. Running out of oil in the world would contribute to the extinction of internal combustion engine. This will definitely affect the firm which fully operated in this field. PEI should look to its environment in order to find new opportunity and consequently plan for the future.

Analyzing the case, a meeting held to develop a strategic planning for PEI in which attended by the owner, the managers and directors as well as several invited expert guests. Based on that discussion, several predictions have been made. First, they predicted that the oil and gas price will be decrease in future. What is they concerned about is the fossil fuels predicted to be impractical in 40 years whereas, all the products of PEI are all related to the internal combustion engine that fully dependent on this fossil oil. Mideast is the major oil producers in the world. Therefore, the oil supply is depends on them. They also anticipated that the oil imports will be increase to 70% by 2010. The other issue discussed is about the dearth of hydrocarbon in future. Hydrocarbon is an essential economic source because it comprises of fossil oil such as coal, petroleum, gas and so on so forth. All these predictions are considered will impact the firm's operation.

Based on the discussion on the meeting, they are listed several options and alternatives that could be used to overcome the problem. First, they think that their better increase the efficiency of energy uses than developing new sources. It is because developing new sources require high cost compare to the former one. Moreover, they also think about the initiative to substitute the existing source into coal. It is quite cheap and plentiful. However it is too dirty to use. Same goes to the oil shale and tar sands. Not only dirty, they also quite costly. In term of nuclear option, it is risky, dangerous and dirty for fission. Though, the estimated that the fusion or combination of uses maybe will be available on future in high cost. The other sources that they think can be renewed in future such as the hydrogen and fusion for the combustion purpose. While, the electrochemical as well has the possibility to be used in future even not for the combustion.

Based on the prediction

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