Environment Analysis of Power Sector
Environment consists of Actors and Forces that have a significant impact on every industrial sector. Micro economic factors are considered as actors and macro-economic factors are considered as forces (Beavis and Barrie, 2014). A company or industry has control over the actors but not over the forces. Micro economic factors include customer, competitor, company, supplier, intermediary etc. on the other hand macro-economic factors include cultural, political & legal, economic, technology etc. In the power sector the government of Bangladesh has a major share of 56% whether private companies are owned 44% out of 100% of the total sector. The power sector includes different forms such as renewable energy, solar energy, biogas, wind energy, ocean wave energy and tidal power, rental power plants etc. The PEST analysis is required for understanding the overall market condition, growth of a particular sector or business. So here we focus on this. Socio-cultural factors: Socio-culture has impacts almost in every industry in Bangladesh. It includes demographic, life-style, ethical issues, brand and company image and so on. These have resonating long term effects. Things affect the consumer behavior of the buying and running power sector. For this, the government and the owner of power sector companies have to make different policies of supplying power in different regions according to socio-culture factors. As we know that still maximum people of Bangladesh live in rural areas but it is a matter of sorrow that still the rate of power electricity there is very low which is a big problem for the power sector to improve their profitability and efficiency. But now the government has been taken some great initiative to increase production of power energy as well as make the way to supply them in rural areas as well. This will certainly boost up the power sector and economy too as it creates jobs as well. Political factors: Political factors includes government policies, corruption, trading policies, inter- country relationships, bureaucracy, government term and change, election and political trends, wars terrorism and conflicts etc. Every sector is influenced by both internal and external politics. Internal politics can be handled by stakeholder but the external politics can’t be controlled. Government has faced obstacles regarding Rampal coal power plant.as we know that this power plant is at Rampal in Bagerhat, environmentalists and experts are very much concerned about the environmental issues. Besides environmentalists the opponent political party makes it a political issue. Because of poor management the infrastructure of Bangladesh's energy sector is inefficient. The main problems that hinder the development in the power sector are- corruption, electricity theft, system loss, erratic power supply, shortage of funds. Economic factors: Bangladesh’s economy is a developing economy that is being strong day after day in the world. Economic factors include demand for goods, employment, wages, prices/inflation, interest rates, and consumer confidence (Kojima, 2018). Economic factors have a strong and direct influence on every country in every sector and have long term effects (Blaine, 2013). For example, If a country’s inflation rate rises, it will affect the price of products/goods. The relationship between power/energy and economic development is crucial. For the development of agriculture, industrial tasks in our country, we need enough energy. In our rural area, there is a lack of adequate energy. Without increasing the per capita electricity, the development of our country is not possible. Every time, everyone needs energy to do most of the tasks. For Bangladesh we need nuclear power, because of its underdeveloped and mismanaged energy infrastructure.
Click here to download the complete solution
Our happy customers
They are fast in responding to homework questions. they have the best technical writers. Thanks for helping me with my programming doubts.
I contact to disklib for homework, they help me out, despite there was some technical issue they gone through extra mile for me and provide me good quality work in first priority. 100% recommended.
Desklib's study resources are best & unique. Their study database is easy to access and easy to use.
100 % recommended.