Management Development and Innovation

This assignment discusses the implementation of wind turbines in Australia for reliable and efficient electricity supply. It covers the background, target market, competitive analysis, SWOT analysis, PEST analysis, financial forecasting, and conclusion.

Running head: MANAGEMENT DEVELOPMENT AND INNOVATION
Management Development and Innovation
Name of the Student:
Name of the University:
Author’s Note:

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MANAGEMENT DEVELOPMENT AND INNOVATION
Table of Contents
No table of contents entries found.

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MANAGEMENT DEVELOPMENT AND INNOVATION
Introduction
The aim of the assignment deals with the implementation of wind turbines in Australia
which is required in order to generate the electricity from the renewable resources and further
provide reliable and efficient electricity supply. In the long run development of the electricity
supply can improve the effectiveness and reliability in the system which will further lowers the
costs and price.
Background
The innovation of wind turbine in today’s world is significant in order to generate
electricity production is one of the possible solution for the energy crisis. Climate change is an
important factor which must be considered while developing the wind turbines for the purpose of
electricity consumptions [1]. Installation of wind turbine must act as per the change in the
climate and as most of the energy is produced through fossil fuel which releases too much carbon
dioxide.
In this product the wind turbine turns the energy of the wind into electricity and this is the
main function of the product. This product will not cause any harm to the change in climate will
be able to reduce emission by 84.6 gigatons of carbon dioxide.

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MANAGEMENT DEVELOPMENT AND INNOVATION
Target Market
The target customer depends on the type of operation conducted in the wind farm. If the
operation of the wind turbines is in the rural household or may be used in the grid mode which
will further be connected to the national grid system. The cost which will incurred while
producing the green power production compared to the fossil and hydro fuel generation in the
heat and the power system.
The significant point in favour of the wind power energy that the electricity generated out
of the wind turbines by burning the fossil fuels especially in Australia. The larger the proportion
of the wind power in the supply of electricity has a chance of reducing the atmospheric
greenhouse gases the main reason for the change in climate and acidification in the ocean.

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MANAGEMENT DEVELOPMENT AND INNOVATION
The advantages of installing wind power system in the community as it is
environmentally sustainable, the fossil fuel generated in the power station which produces
negligible pollution. This product takes care of the health improvements by moving away the
pollution created by the fossil fuel which will further save more money than it costs to remove
the renewable energy. Improvisation of new available technologies in the market will potentially
develop the wind farm in Australia. Implication of these benefit will increase the demand of
wind turbulence in the market. These benefits will increase the sales of wind turbines in
Australia and hence there will be rapid development in the generation of electricity.
Commencement of wind turbines production by lowering the costs of the inputs needed to
produce the products will automatically attract the target customers. This product will take care
of the health issues as the product will be developed according by keep such kind of parameters
into consideration while developing the wind turbines.
Target Market and Its Location
As per the market situation, a lot of emphasis is provided on sustainable development
which also includes sustainable energy conservations. The target market of the business would
be selected on the basis of region which suits the wind turbines for the purpose of generating
energy [3]. As per the survey of the region, the management of the company estimates that
Western Australia region would be most suitable place for setting up wind turbine farms. The
management also anticipates that the energy which is generated can be appropriate for running a
small school, farms or even Municipality.

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MANAGEMENT DEVELOPMENT AND INNOVATION
Figure 1: Table showing Wind Turbine Farms set up in Australia
Source: (Ramblingsdc.net)

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MANAGEMENT DEVELOPMENT AND INNOVATION
Figure 2: Table showing Wind Turbine Farms set up in Australia
Source: (Ramblingsdc.net)
Wind Turbines in Australia are used mostly for generating electricity which can be used
for different purposes in the country. Wind Turbines holds a lot of potential for future as it is
considered to be one of the most important renewable sources of energy in Australia. The
demand for renewable source of energy and sustainability practices has created a lot of potential
for such an energy source in corporate sector as well [2]. The management plans to expand the
business further by setting up new wind turbines generating more and more energy. Up to about
2018 wind was the leading economically competitive form of sustainable energy and therefore it
is a viable choice for tacking energy needs in the advent of climate change.

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MANAGEMENT DEVELOPMENT AND INNOVATION
Competitive Analysis
As per the recent market survey, the level of competition in the market is significantly
high as the emphasis is shifting from use of fossil fuels to more sustainable and renewable source
of energy [4]. In different regions of Australia, several wind turbine farms are being established
in order to meet the energy requirements of the business.

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MANAGEMENT DEVELOPMENT AND INNOVATION
Figure 2: Electricity generated by different regions in Australia
Source: (Ramblingsdc.net)
The above figure shows the electricity in MW which is generated by different regions and
this shows the level of competition in the market.
SWOT Analysis
As per the market survey some of the major competitor of the business would be Albany
Wind Farm and Mumbida Wind farm. On the basis of the conditions of the market and the
strengths of the competitors, the following strength, weaknesses, opportunity and threat can be
identified for the business
 Strengths: One of the major strength of the business is the geographical location of the
area which is naturally elevated and it is estimated by the management that they can
generate appropriate revenue from the same.
 Weaknesses: The initial funds which is required for setting up a wind turbine is $ 9,000
which is quite high and therefore the management anticipates that start up fund would be
a challenge.’
 Opportunity: The major corporate houses are making changes to be sustainable in the
market and therefore in future the management expects that application of wind energy
would be a preferred option for energy and power.
 Threat: The overall competition in the market is the biggest threat to the business.

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MANAGEMENT DEVELOPMENT AND INNOVATION
PEST Analysis
Political Factors: There is a shift in the market and emphasis is on use of renewable source of
energy and therefore the government is also supporting the move.
Economical Factor: These factors reflects the costs which is associated with setting up a wind
turbine business and overall cost of maintaining the turbine is also significant and therefore the
same needs to be considered before taking any decisions.
Social Factors: The social factors include how the project would be affecting the society. The
wind turbine project would be favorable for the society.
Environmental Factors: The innovation which is planned by the business is appropriate and
eco-friendly and therefore such factors are also in favor.
Financial Forecasting
Profit and loss Statement
As per the analysis of the market, the sale volume which is anticipated by the
management is 28350 MW in the first year and then the same is anticipated to increase further.
Similarly, as the sales volume increases so does the overhead expenses and profit margin of the
business. The figures which are anticipated are shown below in profit and loss account.

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MANAGEMENT DEVELOPMENT AND INNOVATION
Cash Flow Statement
The cash flow statement which is presented below shows forecast for source of funds
which is used and the cash inflow which is generated by the business. As per the expectation of
the management, the funds would be contributed from a grant from government which would
cover initial startup and maintenance. The estimates are shown in the table which is presented
below:

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MANAGEMENT DEVELOPMENT AND INNOVATION
Breakeven Analysis
1 2 3 4 5 6 7 8 9 10 11 12
$-
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
$60,000.00
$70,000.00
Break Even
Sales Fixed Cost
Figure 4: Breakeven Point Analysis
Source: (Created by Author)
The above figure shows breakeven point for the business and the analysis shows that the
fixed cost is constant and is represented by orange line. The sales of the business is represented
by the blue line and the same is shown to be on the rise.
Conclusion
The analysis of the business proposal which is conducted above shows that the project is
a viable one and it can generate profit in the long run. In addition to this, due to shifting climate,
demand for the project would also be high and therefore the management should accept the
project and take actions to implement the same.

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Reference
[1] R. B. S. Consultants, “Business Confidence Survey,” Eur. Chamb., 2011.
[2] S. Ransbotham and D. Kiron, “Analytics as a Source of Business Innovation,” MITSM
Rep., 2017.
[3] National Health Service, “NHS Improvement Business Plan 2017 - 2019,” NHS Improv.,
2017.
[4] OECD, OECD Business and Finance Outlook 2017. 2017.
[5] Doing Business 2017: Equal Opportunity for All. 2016.
[6] D. K. Rigby, Management Tools 2017: An executive’s guide. 2017.
[7] "Wind Power In Australia." Ramblingsdc.net. N. p., 2019. Web. 14 Apr. 2019.