Good Energy's International Strategy: Industry Analysis Report

This report provides an analysis of Good Energy, a UK-based renewable energy company, examining its positioning within the industry and its current international strategy, which is identified as a transnational approach. The report overviews the UK renewable energy sector, highlighting its growth and importance. It identifies Good Energy's positioning in the market, emphasizing its focus on green electricity and its expansion into the US and Canada. The report then focuses on how Good Energy develops a sustainable competitive advantage, particularly through its human resources and development team, emphasizing employee motivation, work-life balance, and recreational facilities. The report concludes with recommendations to address skill shortages and promote employee education and training, essential for the company's international strategy and environmental goals.

Strategy in International
Environment
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
Brief overview of the Industry.........................................................................................................3
Identify Good Energy's positioning within the industry and assess its current international
strategy.........................................................................................................................................4
Identify an aspect of the firm and discuss how the firm approaches it with the objective of
developing a sustainable competitive advantage.........................................................................5
CONCLUSIONS AND RECOMMENDATIONS..........................................................................7
References........................................................................................................................................9
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INTRODUCTION
The environment plays very crucial role for humans and other organisms in providing
conditions for growth and development. However it may pose potential threat and danger which
is an outcome of harmful human interactions such as mining, oil spilling and similar business
activities which destroy environment (Mirza and et.al., 2009). The present report features the
impact of business environment as well as industry of UK based renewable energy sector. The
firm given for study is Good Energy which is a British company that generates renewable
electricity. The report identify the firm's positioning within the energy industry. In addition to
this, it also identifies important aspect related to the organization approaches in order to
develop a sustainable competitive advantage.
BRIEF OVERVIEW OF THE INDUSTRY
Renewable energy industry of UK comprises of those establishments that generate energy
through renewable natural resources like sun, wind, tides as well as geothermal energy. United
Kingdom has got an abundant source of natural as well as clean power that is derived from wind,
waves as well as tides (Klessmann, Nabe and Burges, 2008). Unlike the presence of traditional
fossil fuels, the energy of nature is unlikely to fade out. There is further a need on part of entire
world to reduce the devastating effect of climate change so as to protect the nature for upcoming
generations (Mirza and et.al., 2009).
Renewable energy of UK started contributing towards overall electricity generation from
the mid-1990. In the year, 2013 the total sources of renewable energy caused production of
14.9% energy in UK. During the second quarter, the renewable electricity penetration surpassed
25% (Review of the UK renewable energy sector, 2015).
Seeing the present status of renewable energy in UK, it can be said that the country stands
to be the world leader in wind as well as marine energy (Economics & Markets, 2015). The
industry has led to creation of several jobs, provided chances for domestic energy security as
well as generated global business opportunities. The UK economy can only continue with this
industry in a full-fledged manner if its gets the supportive and stable economic environment
(Wüstenhagen, Wolsink and Bürer, 2007).
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In the coming times, EU has a target to increase the UK’s electricity, to 30 percent by the
year 2020. It has further bee estimated that from that year the concept of renewable energy will
be an important part of the strategy so as to reduce carbon emissions (Jacobsson and Bergek,
2004). In order to achieve this company will have to make use of range of technologies in form
of onshore and offshore wind farms, power stations as well as hydropower systems.
There has recently been a huge interest towards renewable energy due to the targets released by
EU towards reducing carbon emissions. There has further been a promotion of renewable energy
generation on account of the commercial incentives taken by government (Walker, 2007).
About Green energy
The company was founded in response to the present climate change so as to become a
catalyst in UK energy market. The company further set out a pathway so as to allow UK for
becoming a 100 percent renewable energy company in UK. With the help of this framework, the
group enables consumers for playing a crucial part in supporting the government in creating a
100 percent renewable future.
Identify Good Energy's positioning within the industry and assess its current international
strategy
Good energy is a British firm that is based in Wiltshire and generates renewable
electricity. It further supplies gas to home and businesses all over UK (Good energy, 2015). The
company has positioned itself as being amongst one of the leading renewable energy company of
UK. It has also positioned itself to easily respond as well as adapt to the changes that are taking
place in the market place (Good Energy Group PLC, 2015).
The position of firm in the industry can be clarified form the following fact. The
independent review from the National Consumer Council has placed good energy as a company
for those consumers who wish to get a green electricity supply which is pure and simple
(Mitchell and Connor, 2004). The NCC report has further revealed that among the twelve green
supply tariffs the company is going farther than what is required by law. Good energy as per
belief of NCC has further been regarded as the best green tariff. The company has further been
named as the best buy for green electricity by the report released by Ethical Consumer magazine.
As of now, Good energy has been working in many stare across US and Canada (Good energy,
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2015). It has supplied a wide range of commodity products that range from natural gas,
renewable energy as well as traditional power supply.
In this regard, the current international strategy that is being followed by global energy is
transnational strategy. With the help of the given approach, the firm has made an attempt to seek
towards global efficiency along with retaining the overall local responsiveness (Foxon, 2005).
The firm has also made sure to integrate the global activities with the help of getting cooperation
from headquarters and foreign so as to attain advantage of efficiency, innovativeness as well as
global integration.
In this regard, the company has focussed on operating in varied markets of US and
Canada. It has been made possible by designing of organizational structures that are responsive
and led to establishment of value added activities. It has further led the company to move
forward in the area of organisational learning as well as improving the overall performance. Here
good energy has focused on maintaining a global vision but has made customized
implementations in context of local markets and regions (Klessmann, Nabe and Burges, 2008).
In the area of branding, Good energy has made use of its global brand image. This has
assisted the company to give emphasis on a single product category but ensured to carry out a
consistent market positioning. Any transnational firm lays emphasis on contingency planning.
The same applies to Good energy as well. The company has laid emphasis on diversifying the
supply sources followed by keeping alternative distributors (Menanteau, Finon and Lamy, 2003).
However, this strategy has led to an increased cost for the company in terms of establishing back
up supply as well as maintains the distribution arrangements.
Identify an aspect of the firm and discuss how the firm approaches it with the objective of
developing a sustainable competitive advantage
Good energy has got a presence of a strong human resource and development team. These
comprises of accountant, managers, change coordinator, sales executive, care advisor, retention
executive as well as service desk analyst. The company has made a good attempt to garner a
sustainable competitive advantage by making use of human resources in the best possible
manner (Batley, 2001). These include;
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Good energy has ensured to have a presence of dynamic as well as passionate team that are
there to serve the company for a good amount of time. It has further ensured that the team
members are motivated so that they can focus on developing the sector of green energy and
reduce the carbon emissions in UK. It has further been found out about the company that 20
percent of the women employees are a part of the overall workforce (Good Energy Group PLC,
2015). This thing reveals that the company is making an attempt to attract females in the area of
energy industry. The company has further made an attempt to make the work a fun filled one so
that day to day responsibilities are not felt as a burden by the employees. The HR management of
the company also understands that the need is to maintain a good work life balance.
Hence the company makes an attempt to offer the staff members with 25 days of holidays
followed by the bank declared leaves (About Good energy, 2015). It has further launched a
salary sacrifice scheme where employees are granted five more days of holidays so as to have
some more time off. The company further rewards the loyal and senior level employees by
arranging for the pension scheme once they retire. Other than that there is a presence of several
recreational facilities for the employees who include subsidised gym membership, sports hall as
well as swimming arena (Good Energy Group PLC, 2015). The company also takes care about
the overall health of employees by providing fresh fruit in the entire office on a weekly basis. It
further makes its employees social by making them be a part of summer and Christmas party
(Help us build a green energy future, 2015). This may help the employees to know each other
while they are working across the organization.
However, it is further true that good energy has got a presence of many skill shortages that
are affecting the overall progress of the sector. Hence, the need in part of this industry is to take
steps for carrying out activities related to Education and training. The need is also towards
imbibing the concept of strong leadership within the company.
This will help the company towards making great strides in renewable energy followed by an
easy capitalization on the range of benefits offered by it. There is further a need to understand by
the industry as well as the company in particular of not to put disillusioned graduates as well as
unemployed people into high value career which demand high level of expertise and skill set.
However it is also true that employment in this sector as well as the company is faced by many
things. These are inclusive of regional shifts, realignment of industry, growing competition
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among the companies as well as the advances that are made in technology and manufacturing
(Lewis and Wiser, 2007). Other than that one of the major barriers that are required to be
overcome the company is with respect to the skill shortage. This is as the given issue if not
resolved easily then it can act as a major barrier towards renewable energy deployment. It is
further true that there is a need to generate the presence of high quality skills so as to make the
growth of renewable energy into reality. It is also true that the given skill set is ready for a
response. The need is just to drive the existing demand of investment related to training as well
as up-skilling.
CONCLUSIONS AND RECOMMENDATIONS
From the above report it can be concluded that Green Energy is making great progress in
conserving the environment by producing green electricity in UK. The company enjoys a good
position in UK renewable energy sector. UK based company has also moved in US and Canada
markets to cater to the energy needs of these markets. Green Energy make employee friendly
strategies to improve its operational effectiveness. However certain modifications are
recommended to improve the management of human resources with respect to formulation and
implementation of strategies. These strategies are meant to perform business in global markets
without creating pressure on the environment.
 Strategies to overcome skill shortage: As stated in the report, Green Energy encounters
hard times due to skill shortage. The shortage of technical skills negatively impact the
international strategies of the company. Therefore the company need to hire technically
sound employees to conduct business in global markets.
 Educating employees: Green Energy need to hire expert trainers to educate employees on
various environmental policies and acts to inculcate practices that reduces pressure on
natural resources such reducing wastage of water, encouraging use of eco-friendly cups,
reducing paper waste other than using renewable electricity. Employees of the firm can
be provided with vehicles that uses green fuel instead of fossil fuels to commute to work.
 Constructing eco-friendly organizational structures: Good Energy can install eco
friendly designs while constructing the organizational infrastructures in global
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markets. Energy efficient lighting, harvesting rain water, planting trees in the
surrounding areas in order protect the environment (Harrison, 2013). The strategies
should incorporate practices to replace outdated appliances with greener options.
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REFERENCES
Books and Journals
Batley, S.L., and et.al., 2001. Citizen versus consumer: challenges in the UK green power
market. Energy policy, 29(6), pp.479-487.
Devine-Wright, P., 2005. Local aspects of UK renewable energy development: exploring public
beliefs and policy implications. Local Environment, 10(1), pp.57-69.
Foxon, T.J., and et.al., 2005. UK innovation systems for new and renewable energy
technologies: drivers, barriers and systems failures. Energy policy, 33(16), pp.2123-2137.
Jacobsson, S. and Bergek, A., 2004. Transforming the energy sector: the evolution of
technological systems in renewable energy technology. Industrial and corporate change.
13(5). pp.815-849.
Klessmann, C., Nabe, C. and Burges, K., 2008. Pros and cons of exposing renewables to
electricity market risks—A comparison of the market integration approaches in Germany,
Spain, and the UK. Energy Policy. 36(10). pp.3646-3661.
Lewis, J.I. and Wiser, R.H., 2007. Fostering a renewable energy technology industry: An
international comparison of wind industry policy support mechanisms. Energy policy.
35(3). pp.1844-1857.
Lund, H. and Kempton, W., 2008. Integration of renewable energy into the transport and
electricity sectors through V2G. Energy policy. 36(9). pp.3578-3587.
Menanteau, P., Finon, D. and Lamy, M.L., 2003. Prices versus quantities: choosing policies for
promoting the development of renewable energy. Energy policy. 31(8). pp.799-812.
Mirza, U.K., and et.al., 2009. Identifying and addressing barriers to renewable energy
development in Pakistan. Renewable and Sustainable Energy Reviews. 13(4). pp.927-
931.
Mitchell, C. and Connor, P., 2004. Renewable energy policy in the UK 1990–2003. Energy
policy. 32(17). pp.1935-1947.
Walker, G., and et.al., 2007. Harnessing community energies: explaining and evaluating
community-based localism in renewable energy policy in the UK. Global Environmental
Politics. 7(2). pp.64-82.
Wüstenhagen, R., Wolsink, M. and Bürer, M.J., 2007. Social acceptance of renewable energy
innovation: An introduction to the concept. Energy policy. 35(5). pp.2683-2691.
Online
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<http://www.goodenergy.co.uk/> [Accessed on 26th December 2015].
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Good Energy Group PLC. 2015. [Online]. Available through:
<http://www.goodenergygroup.co.uk/media/BAhbBlsHOgZmSSIdNTYwZDIzNWY3M
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