The purpose of this Business Analysis Project is to evaluate the current situation of the so-lar branch, especially the German company Conergy Group. The aim is to show the cur-rent changes within the branch and the influence on the business strategy of solar com-panies. Furthermore the analysis will consider the following issues:
• A situational audit of the branch and the Conergy Group. This will contain an analysis of the macro- and micro-environments supported by a PESTLE and Porter 8 Forces Analysis
• Strategic Alignment: Identification of the key success factors (KSF) of the branch, evaluate the performance of Conergy and compare this with 2 other big players in the solar branch. From this information, I will identify potential changes inside of Conergy and develop a strategy map.
Another aim is the critical appraisal of the key figures and the current strategy of Conergy, supported by using approved analysing methods in a literature review in order to show potential improvements as well as recommend strategy adaptations. As a basis for the analysis of the key figures I will use the 2009 third quarter report and the 2008 annual re-port. The advantage of using this quarterly report and comparing it to the 2008 annual report is that the effects of the economical crisis in 2009 are visible.
Table of Contents
1. Introduction and Objectives
2. Macro-environmental Analysis - Situational Audit
2.1. Current Situation of the Solar Branch
2.2. PESTLE Analysis
3. The Conergy Group
3.1 Financial Analysis
3.2. Porters 8 Forces Analysis
3.3. Critical Success Factor Analysis
4. Strategic Alignment
4.1. Strategy Map
5. Conclusion and Recommendations
Project Goals and Themes
This business analysis project aims to evaluate the current market position and strategic situation of the German Conergy Group within the context of the global solar industry, identifying necessary improvements for future profitability.
- Situational audit of the solar industry and Conergy Group using PESTLE and Porter's 8 Forces frameworks.
- Identification of critical success factors (CSF) and benchmarking against key industry competitors.
- Strategic evaluation of financial performance using annual reports and the 2009 third-quarter report.
- Development of a strategy map to outline paths toward future profitability and restructuring.
- Analysis of the impacts of the global economic crisis and subsidy dependencies on business sustainability.
Excerpt from the Book
3.3. Critical Success Factor Analysis
Critical Success Factors (CSF) are those factors within the firm’s market environment that determine the firm’s ability to survive and prosper (Grant 2002). The management can influence these factors through its decisions and it can affect the competitive position of the firm in an industry (Hofer/Schendel, 1977). Once the KSF are identified, the results can be used to determine critical business processes. Critical success factors for companies within the solar branch are:
Support of the government in main markets: This CSF is influenced by the governmental subsidy politics in the main market (i.e. EEG), the awareness of limited fossil fuels, ecologic forms of energy).
Economy of scales: Solar module producers are very dependent on the quantity of sales. Using effects of the learning curve helps to improve the production processes, decreases the failure rate and helps to increase the efficiency of the plants. This helps to decrease the production cost and finally to reduce the costs of the installed product.
Financial Background: The solar branch is consolidating on global level. To have a weak financial background might threat the long-term survival of the company. The need for high investments in R&D and the introduction of new technologies also requires a well situated financial background.
Power to innovation/innovation leadership: Customers have a high focus on effectiveness of their investment. This means, access or the possibility to develop new, innovative technologies is one of the most important CSF. The importance of this CSF is also shown by the score in the CSF-analysis in appendix III. Companies with a good result for this CSF should be able to increase the electricity conversion efficiency by at least 20 % within the next 3 years and should also be able to produce thin film modules.
Summary of Chapters
1. Introduction and Objectives: This chapter defines the scope of the project, focusing on the situational audit of Conergy and the methodology used to assess its strategic alignment.
2. Macro-environmental Analysis - Situational Audit: This section examines the current global market trends for the solar industry, including the impact of subsidies and the PESTLE analysis framework.
3. The Conergy Group: This chapter provides an in-depth profile of Conergy, including financial analysis, competitive forces modeling, and the assessment of critical success factors.
4. Strategic Alignment: This part proposes potential strategic directions for Conergy, such as partnerships or restructuring, and utilizes a strategy map to visualize operational goals.
5. Conclusion and Recommendations: This concluding section summarizes the research findings and recommends a restructuring program focusing on core competencies to ensure the company's long-term survival.
Keywords
Conergy, Solar Industry, PESTLE Analysis, Porter's 8 Forces, Critical Success Factors, Strategic Alignment, Financial Crisis, Renewable Energy, EEG, Strategy Map, Restructuring, Profitability, Market Consolidation, Subsidies, Core Competencies.
Frequently Asked Questions
What is the primary focus of this project?
The project focuses on evaluating the current situational status and business strategy of the German Conergy Group amidst the global economic crisis and industry-wide shifts.
What analytical methods are employed in the study?
The study utilizes several established business frameworks, including PESTLE analysis, Porter's 8 Forces, Critical Success Factor (CSF) analysis, and Strategy Mapping.
What is the main objective of the analysis?
The objective is to identify potential improvements for Conergy, assess its competitive position against industry players like Q-Cells and Solon AG, and develop a strategic roadmap to return the company to profitability.
What role does the German EEG play in the solar industry?
The EEG (Energieeinspeisegesetz) is identified as a critical factor that guarantees specific solar feed-in tariffs, driving investment but also creating a high dependency on government policy for market stability.
How is the financial health of Conergy characterized in the report?
The report highlights a critical financial situation, noting increasing losses, a declining share price, and a high gearing ratio, which significantly limits the company's investment capacity for R&D.
What are the primary recommendations for Conergy?
The author recommends a hard and fast restructuring, which includes closing unprofitable business sectors and focusing on core competencies, combined with seeking strategic alliances.
Why did the Spanish solar market experience a crash?
The crash in the Spanish market was triggered by a sudden cancellation of government subsidies, demonstrating the high industry sensitivity to political support.
What is the significance of the "full automated waver factory" mentioned?
This factory represents a significant asset for Conergy, though its potential is currently hampered by the broader structural problems and overcapacity within the wafer production sector.
- Citar trabajo
- Tobias Bandt (Autor), 2010, Business Analysis Project Solar Industry , Múnich, GRIN Verlag, https://www.grin.com/document/167218
