Neste: Fueling the Future of Transportation

by: Andrew Hoffman

Publication Date: April 27, 2020
Length: 20 pages
Product ID#: 5-522-996

Core Disciplines: International Business, Social Impact, Strategy & Management, Sustainability

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Teaching Note

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Neste, a Finnish oil company, has established itself as a key player and early mover in the renewable fuel market since its patent of NEXBTL renewable diesel in 1996. As new transportation regulations put stricter limits on emissions, renewable fuels become increasingly important. Students are placed in the role of Neste CEO Peter Vanacker to analyze both the current and future state of the renewable fuel industry and determine Neste’s strategy. How should Neste position itself as the sustainability leader in fueling transportation sector industries including road, aviation, and maritime shipping?

Teaching Objectives

After reading and discussing the material, students should:

  • Identify and evaluate the current state of Neste’s goals, business model, reputation, financial success, and product portfolio.
  • Examine Neste’s current challenges and forecast potential future challenges in each industry within the transportation sector.
  • Evaluate the strategic options available to Neste’s CEO, as well as the inherent challenges associated with each option.
  • Differentiate the relevant stakeholders Neste must engage with and how the company can effectively address their concerns while maintaining its position in the transportation sector.