Renewable Energy and Business Models

This assignment analyzes the integration of renewable energy sources into existing business models. It explores the challenges and opportunities presented by integrating renewable energy, focusing on innovation, flexibility, and experience. The assignment also delves into the social acceptance of renewable energy, considering economic impacts, policy implications, and technological advancements. Furthermore, it examines case studies and real-world examples to illustrate successful implementations and potential future trends in the field.

Issues in Global Business and
Strategic Concepts

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................3
COURSEWORK 2...........................................................................................................................3
Analysis modern day scenario which are based on an international business............................3
Energy production and consumption..........................................................................................4
Entry strategies............................................................................................................................5
Strategies of internation business................................................................................................6
Global production, logistics and outsourcing:............................................................................7
The organisation of international business..................................................................................8
Regional economic integration:..................................................................................................8
Advice for the future strategic directions:...................................................................................9
CONCLUSION..............................................................................................................................10
RECOMMENDATION.................................................................................................................11
REFERENCES..............................................................................................................................12

EXECUTIVE SUMMARY
As an international business organisation, there are various issues which affect their
business operations at the global level. Therefore, it is required for Multinational Corporation to
analyze factors such as cultural, political, economical etc. in the international market. It is
required to develop strategies accordingly to attain their long term goals and objectives. The
present report is based on Siemens green port which deals with global engineering and
innovation in various areas. They also provide technological solutions which help in overcoming
various challenges such as electrification, energy production, automation, and digitalisation.
This report is related with the research on renewable energy and its strategies which can
help to provide future direction. Therefore, Siemens need to develop appropriate strategies and
market plan which can help to provide sustainable growth to their enterprise. In addition, this
report also explains recommendation for future growth in the renewable energy sector.
INTRODUCTION
As a internation business organisation, there are various issues which can affects their
business operations at global level. Therefore. It is required for multinational corporation to
analyses factors such as cultural, political, economical etc. in the international market. It required
that to make their strategies accordingly in order to attain their long term goals and objectives
(Barkemeyer, Holt and Tsang, 2014). The present report is based on Siemens green port which
deals with global engineering and innovation in various areas. They also provide technological
solutions which help in various challenges such as electrification, energy production, automation,
and digitalisation.
This report is related with the research on renewable energy and its strategies which can
help to provide future direction. Therefore, Siemens required that to make appropriate strategies
and market plan which can help to provide sustainable growth to their enterprise (Bengtsson and
Kock, 2014). In addition, this report also explain recommendation for future growth in the
renewable energy sector.
COURSEWORK 2
Analysis modern day scenario which are based on an international business
Today, environment concern is one of the significant issues for the public to protect green
environment and overcome. Therefore, various countries are taking initiative in order to protect

the environment and over come the use of traditional source of energy. On the other hand various
emerging market required energy for sustainable development (Biscop, 2016). To meet these
needs renewable energy is the most affordable and suitable source to them. Renewable energy is
generated from natural resources such as solar, wind, hydro power, rain, tide etc. In the context
of given case study, it is the good opportunities for Siemens in the renewable energy sector.
Capitalizing on offshore potential: Increase in the global business can enhance the
demand of energy in various developed and emerging market in the world. There are various
countries such as UK, USA, India, China and other nation which concentrates on their renewable
energy target which can lead to increase in demand of renewable energy at the global level (Kim
and e Mauborgne, 2014). The increasing renewable energy sources creates development of
offshore wind power and its future growth potential.
Global onshore growth: According to the Transparency Market Research, the global
growth of wind energy is approx 25% in last five year and wind turbine market size is approx
$95 billion in the last year. In the upcoming years, wind energy cumulative market will rise to
approx 1,700,000 MW. Wind energy plays an important role in industry in the near future.
Therefore, various companies and investors are investing in this sectors due top its future growth
and profitability (Roach, Griffiths and O'Callaghan, 2014).
Energy production and consumption
According to the United Kingdom government data, traditional source of energy is
approx 44.5% of total energy. Apart from that, renewable energy approx 20 form all types such
wind, solar, bio fuels, geothermal and so on. The main source of electricity is coal which is low
as compare to the last years. It is a good sign for the climate because it can reduce carbons within
the environment (Shields, Brown and Plimmer, 2015).
Siemens is one of the leading company is wind energy production 63% market share as
European offshore wind market. This firm started their business in 1980 as a wind turbine
manufacturer and provided their services worldwide. In 2004, they established Siemens green
port and grew their wind power from 0.5% to 5% and also increased their level of operation in
various European countries like Denmark and Germany. Today their production facilitates are
located worldwide such as China, USA, Canada, UK, Morocco and Egypt.
Apart from that, Siemens is expanding their business activities by using various strategies
in wind power sector (Spieth, Schneckenberg and Ricart, 2014). In 2016, company decided to

merge with Gamesa with 59% shareholdings which can increase their presence in other
countries. In 2010, Siemens wind power acquired 49% of A2SEA from Dong Energy for a price
of DKK 860 meters. To increase the efficiency and overcome their operational expenditure,
company decided to close their unused facilities and open new facilities in different area.
Siemens green port is one of the leading suppliers of offshore renewable energy in the world.
Therefore, they are required to focus on the research and development in order to meet future
demand. They are investing in construction of new harbour at Green port United Kingdom to
support their operations (Stigka, Paravantis and Mihalakakou, 2014).
Entry strategies
It is essential for an international business organisation to expand their operations across
the world. It can help to maintain their market share and increase revenue of the company.
Siemens need to use various tools and strategies to enter in the emerging market. Today, there
are various emerging markets which require renewable energy for meeting their energy needs in
the near future. For this, they can use entry strategies which are given below:
Exporting:
Over the past decade, the dramatic change in growth and development in renewable
energy market has been witnessed (Nematollahi and et.al., 2016). Due to increase in the global
business activities and emerging of new market such as India, China, Russia and other countries
require more energy in maintaining their growth rate. Therefore Siemens have golden
opportunities to supply their energy product to these markets. For this, they can export their
products at the lower price by using economies of scale. It can help to expand firm's business
operations and make their presence at the international level. There are various products such as
wind energy equipments, turbine blades; solar panels etc. can be exported. This is one of the less
expensive ways to enter in the new market which require less investment (Martinot, 2016).
Licensing:
This is another entry strategy which can be used by the firm to make their presence at the
global level. In this strategy, Siemens can give right to produce their renewable product or
services. It is required that cited company can make agreement with another firm to manufacture
their products and sell them in the market.
Joint venture:

Joint venture is an arrangement where two or more organisation joins with each and share
their resources, expertise, and experience in order to capture market and increase their revenue.
Siemens wind energy can use this strategy to expand their business activities in different
countries (Shamsul, Kamarudin, and Holm, 2013). For example, organisation can make joint
venture with another company in host country which can increase their market share and
revenue. There are various advantages in JV, because they can share their knowledge, expertise,
resources which can provide competitive advantage over its competitors.
Exporting and importing
When a business unit produces their products in home country, and deliver to another
nation as called exporter. On the other hand when good purchase from another country from
domestic consumption or re-manufacturing called importing. This is significant for each and
every organisation to export and import of goods and services (Tafarte, Das and Thrän, 2014).
Siemens is exporting various product all over the world which contribute in to the national
economy of UK. They produced wind blade, reared nacelles and other hardware of wind energy.
EXIM bank played a important role in the export and import activities of Siemens green port,
because they provide finance to the firm in order to increase export and import activities. The
Siemens wind power had a 6.3% share in world wind turbine market. Company needs to support
its workforce and production system as well. Greater exporting is a big strength for every
organization and give a opportunity to grow which may boost up the confidence of their staff
members and firm as well. The company transfer its product in various countries like- Hamburg,
Germany, Denmark etc. By transporting its goods and services in different countries it get a huge
benefits and greater opportunities to grow (Su, Wang and Roh, 2014).
Strategies of internation business
It is important for Siemens is to analyse global environment carefully and use their
strategies accordingly in order to sustain in its position. Therefore, they can use various strategies
which can help to increase their demand and market share. These strategies can be:
International strategy: This is one of the significant strategies which is focused on the
organisation's core competencies at global level. This strategy helps in global expansion of the
firm's. In this business unit is focused to attract large number of customers which can help to
increase their brand popularity and increase market share as well. In the context of Siemens wind
power, international strategy helps to present effectively at the global level in the renewable

industry. For this they required to identify opportunities avail in the various countries and
provide their products at the lower cost to them (Casadesus-Masanell and Ricart, 2010).
Global strategy: This is another important strategy which is related with the profitability
and revenue generation with using cost effective tools. The main aim of this strategies is to
evaluate cost reduction tools which can help to reducing its operational cost and increase the
profit of the company which is a core objectives of each business unit. For this, Siemens required
to using various cost control techniques like economies of scale which can overcome their cost.
Apart from that, Siemens can also open their manufacturing facilities in to other counties such as
India and China where cost of labour is very cheap as compare to UK and other European nation
(Carroll, and Shabana, 2010).
Transportation strategy: The strategy is related with the cost minimization through
improve logistics network of the company. Siemens can installed their manufacturing plant at the
strategic location where they can send their products all over the world at the minimum time and
cost.
Localization strategy: In this strategies company can provide their products and services
according to the needs of their customer. This is one of the best approach in to increase the
customer loyalty in the market. Each country having their different requirements for their
renewable energy which can be satisfied by the company, for example, Middle east countries
requires solar plants and panels to meet their renewable energy. In country like India requires the
combination of solar, wind, hydro and other products (DaSilva and Trkman, 2010).
Global production, logistics and outsourcing:
This is important for every business unit is to make their production and logistics
activities more cost effective. For this company can focused on their production process and
quality of products. In a production process they can make an effective system where resources
can be utilized at the maximum level which can overcome their operational cost and increase the
revenue of the company. Product quality having a great role in the success of business.
Therefore, Siemens can also focus on the customer satisfaction level through product high
quality products. To make standard goods they required to use various tools such as TQM which
can help to improve the quality and increase satisfaction level of its customers (Cantwell,
Dunning and Lundan, S.M., 2010). Siemens required that to make an effective global supply
chain which can meet their demand at the right time. For this, they try to create value chain

which can provide competitive advantage over rival companies. Outsourcing is a important
activity which is related with the decision regarding make or buy. This is a international business
activities where firm's can buy their product and product component which are costly tom
produce. There are various products in wind energy such as row material can be outsourced from
another country. It can help reduces their cost of production and improve their operational
efficiency (Teece, 2010).
The organisation of international business
The organisation of a business defines the structure and command structure which
comprises various organisation functional department. A firm's structure is played a important
role in the success of business unit. Siemens required that to focused on their command structure
and functional structure which can support its overall activities (Barkemeyer, Holt and Tsang,
2014). For example, company is operate their operations across the world which create a
complex problems in decision making and resource allocation. Firm's can used divisional
structure and divide their market on the basis of geography. It can help to attain their long term
goals in effective manner. For example, they can divide world in to small area such as Europe,
North America, South America, Central Asia and Pacific area and provide them their own
resources and decision power in order to attain their long term goals.
Regional economic integration:
Regional economic integration is a process where two or more countries agree to
cooperate and working together to attain region stability, economy and peace. In this process

member state are ready to remove their trade and economic barriers and encourage business
activities between them. Toady, there are various economic trade blocks such as NAFTA
between North American counties (Bengtsson and Kock, 2014). It become a single market when
member countries integrated with each other in terms of economy and politically. In such kind of
situation the business activities are freely move between the member countries. For example,
European Union is a single market which have 27 member nation can share money, man and
machine without any trade barriers. Such kind of integration having a great impact on the growth
and development of renewable energy in the region.
Energy sectors played a significant role in the socio economic development in the region
and drive regional integration (Biscop, 2016). Today, for sustainable development required
renewable energy in order to development and growth of the particular region. Energy policies
can be make by the cooperation and joint effects which can provide energy security to them.
There are various challenges like increasing demand for energy, sustainable development,
increasing competitiveness which have to facing by nation. It is good opportunities for Siemens
which can help to increase their market share and revenue.
Advice for the future strategic directions:
Siemens wind power having good opportunities for the future specially in the emerging
economies. This is because, renewable energy is a quite cheaper, affordable and sustainable
solution for the energy needs (Kim and e Mauborgne, 2014). In order to meet these needs and
demands cited company can use following strategies:
Reduce air pollutions: The air pollution is one of the major problem for each and every
nation. Therefore, they are going top switch from traditional energy to renewable energy which
can reducing air pollution. For example, they can stop using vehicle which are burning sulphur
die-oxide. Less use AC and other electrical equipments which are causes the pollutions.
Cut global warming emissions: Today climate change and environment is one of the
sensitive issues of the society. There are various harmful gases which can increase carbon
emission which can leads to increase climate change and global warming. The only solution for
such problem is using renewable energy which can overcome these impact (Roach, Griffiths and
O'Callaghan, 2014).
Create new jobs and industries with globalization: Due to globalization, there are
dramatically change in the economic development around the world. It can increase new jobs,

and opportunities for the young people in the country. Siemens can focused on the research and
development, installation of new manufacturing plants which required more human resource.
The firm's aim to integrate their business activities with global economy which can help to attain
their ambitions. Apart from that, in order to expand their business they can looking for new
markets which can provide more opportunities rather then UK (Shields, Brown and Plimmer,
2014 ).
Diversify supply power of company: Supply chain is one of the significant activities in
international business which can add more value in their supply chain which can create value
chain. For diversifying their global supply chain they required to extend their networks and
distribution channels. For example, Siemens can open large number of distribution network
across the globe which can increase their depth in the market.
Decrease dependence traditional source of energy: There are various traditional energy
source such as coal, hydro power, fusel fuel etc. all these sources of energy are more harmful for
the environment, because it can increase the carbon emission. There are various options for the
countries moves towards the cleaner energy like nuclear energy (Spieth, Schneckenberg and
Ricart, 2014). It is also a good option, but it requires more research and its more expensive of
the developing counties. Therefore, various nations are more concentrate on the renewable
energy which are affordable to them.
CONCLUSION
As per the above mentioned report it has been concluded that there are various factors
relating to the international business which are discussed in the context of Siemens Wind Power
conducting their business activities in UK. The factors affecting in the expansion plan of an
organization in global market affects to products, strategies, organisational structure,
international strategies etc.. This report also explained about the various methods and tools
which can help to the company to inter in the particular country such as exporting, licensing,
joint venture and so on. Further, this report show that how Siemens can use their strategies in
order to plan their future growth and direction. After summarising the report it can be stated that
for the mentioned company to enter in the international business the suitable approach was
through joint venture, and to expand further the company will need to switch form international
strategy to either global standardization or transnational strategy.

RECOMMENDATION
It is recommended that Siemens Wind Energy can be used various tools and techniques in
order to sustain in the renewable energy market. For they, they can focused on the technology
and innovation in their equipments which can improve their product quality. For this, company
required to invest in the research and development and provide innovative energy solution for the
public. Apart form that they have to promote their product and the causes and adverse impact of
traditional energy sources on the environment. It can increase the awareness and make a positive
image in the public. In order to increase the demand and new market, firm's can looking for
emerging market such as India, China, Indonesia etc. There are various advantages in such
countries like labour cost which can reduces their cost of operation.

REFERENCES
Books and Journals
Barkemeyer, R., Holt, D. and Tsang, S., 2014. What happened to the ‘development’in sustainable
development? Business guidelines two decades after Brundtland. Sustainable
Development. 22(1). pp.15-32.
Bengtsson, M. and Kock, S., 2014. Coopetition—Quo vadis? Past accomplishments and future
challenges. Industrial Marketing Management. 43(2). pp.180-188.
Biscop, S., 2016. The European security strategy: a global agenda for positive power. Routledge.
Cantwell, J., Dunning, J.H. and Lundan, S.M., 2010. An evolutionary approach to understanding
international business activity: The co-evolution of MNEs and the institutional
environment. Journal of International Business Studies. 41(4). pp.567-586.
Carroll, A.B. and Shabana, K.M., 2010. The business case for corporate social responsibility: A
review of concepts, research and practice. International journal of management reviews.
12(1). pp.85-105.
Casadesus-Masanell, R. and Ricart, J.E., 2010. From strategy to business models and onto
tactics. Long range planning. 43(2). pp.195-215.
DaSilva, C.M. and Trkman, P., 2014. Business model: What it is and what it is not. Long range
planning. 47(6). pp.379-389.
Holm, D., 2013. Renewable energy future for the developing world. Transition to Renewable
Energy Systems. pp.137-157.
Kim, W. C. and e Mauborgne, R., 2014. Blue ocean strategy, expanded edition: How to create
uncontested market space and make the competition irrelevant. Harvard business review
Press.
Martinot, E., 2016. Grid Integration of Renewable Energy: Flexibility, Innovation, and
Experience. Annual Review of Environment and Resources. 41. pp.223-251.
Nematollahi, O. and et.al.,, 2016. Energy demands and renewable energy resources in the Middle
East. Renewable and Sustainable Energy Reviews. 54. pp.1172-1181.
Roach, S. C., Griffiths, M. and O'Callaghan, T., 2014. International relations: the key concepts.
Routledge.

Shamsul, N. S., Kamarudin, S. K. and Kofli, N. T., 2014. An overview on the production of bio-
methanol as potential renewable energy. Renewable and Sustainable Energy Reviews. 33.
pp.578-588.
Shields, J., Brown, M. and Plimmer, G., 2015. Managing Employee Performance & Reward:
Concepts, Practices, Strategies. Cambridge University Press.
Spieth, P., Schneckenberg, D. and Ricart, J. E., 2014. Business model innovation–state of the art
and future challenges for the field. R&D Management. 44(3). pp.237-247.
Stigka, E. K., Paravantis, J. A. and Mihalakakou, G. K., 2014. Social acceptance of renewable
energy sources: A review of contingent valuation applications. Renewable and
Sustainable Energy Reviews. 32. pp.100-106.Melikoglu, M., 2013. Vision 2023:
Feasibility analysis of Turkey's renewable energy projection. Renewable Energy. 50.
pp.570-575.
Su, W., Wang, J. and Roh, J., 2014. Stochastic energy scheduling in microgrids with intermittent
renewable energy resources. IEEE Transactions on Smart Grid. 5(4). pp.1876-1883.
Tafarte, P., Das, S. and Thrän, D., 2014. Small adaptations, big impacts: Options for an
optimized mix of variable renewable energy sources. Energy. 72. pp.80-92.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Online
Green port hull, 2017. [Online] Available through:
<http://greenporthull.co.uk/jobs-training/siemens-careers>. [Accessed on 3rd March
2017].
Union of concerned scientists, 2017. [Online] Available through:<http://www.ucsusa.org/clean-
energy/increase-renewable-energy#.WLexEHV948o>. [Accessed on 3rd March 2017].