There are various definition of strategic management in the literature because of the complexity and different approaches to deal with strategies. To give a brief idea what strategic management is all about the following definition is given. “Strategic management is a process, directed by top management, to determine the fundamental aims or goals of the organisation, and ensure a range of decisions which will allow for the achievement of those aims or goals in the long-term, whilst providing for adaptive responses in the short-term”. (Cole, 1997) Companies in the photovoltaic (PV) sector need to pass through the process of strategic management as well as their competitors. They will reach their aims and forecast or react on changes in the market to ensure the survival or development of the firm. This process will be presented in this work.
Table of Contents
1 Introduction
1.1 Strategic Management
1.2 Photovoltaic and the Renewable Energies Sector
2 The Process of Strategic Management
2.1 Purpose, Goals and Objectives
2.2 Analysing the External and Internal Environment
2.3 Schools of Thoughts
2.4 Strategic Analysis
2.5 Competitive Strategies
2.6 Forecasting the Future
2.7 Formulating the Strategies
2.8 Implementing the Strategies
3 Conclusion
Objectives and Core Themes
This essay explores the application of strategic management processes within the renewable energy sector, specifically focusing on companies involved in the production of photovoltaic (PV) panels. It examines how these organizations navigate internal and external environmental pressures, utilize various strategic frameworks, and plan for future market developments to ensure long-term sustainability and competitive positioning.
- Theoretical foundations of strategic management in the energy sector.
- Methods for analyzing internal and external business environments.
- The role of various management schools of thought in strategy development.
- Strategic planning for cost reduction and market competitiveness.
- Challenges in forecasting future market demands and integrating new technologies.
Excerpt from the Book
2.2 Analysing the External and Internal Environment
After thinking about purpose, aims and objectives the PV producing company has to give thought to their external and internal environment before dealing with relevant strategies. According to WELFORD and GOULDSON (1993); external and internal stakeholders influence the process of planning and changing the future of the company. Critical key issues of internal influences should be identified like organisational, cultural or financial factors. The mayor differences to companies from other sectors in the Construction industry become explicit by having a look at the external influences. WELFORD and GOULDSON (1993) say that the government is a main factor because they “[…] are increasingly applying market instruments to achieve environmental objectives”. In Germany for example the government supports the construction of building integrated PV systems which are connected to the local energy grid. Agreeable to WEISS ET AL (2006), they engage the power companies to pay the costumer for the energy which they supply back to the grid. Another mayor external factor is the technology. PATEL (1999) explains that the technology of PV cells and modules is still in a developing process and new improvements come up regularly. The competitors in the renewable energy sector are standing out as well, but this will be discussed in an eventual chapter. Other important external influences are shown in the following figure which is correspondent to COLE (1997):
Summary of Chapters
1 Introduction: This chapter defines the core concepts of strategic management and highlights the increasing importance of the photovoltaic sector within the broader renewable energy landscape.
2 The Process of Strategic Management: This section provides a comprehensive overview of the strategic cycle, covering goal-setting, environmental analysis, relevant schools of thought, and the implementation of competitive strategies specific to PV manufacturers.
3 Conclusion: The concluding chapter synthesizes the theoretical discussions, critically assessing the feasibility of strategic models and addressing the inherent complexities of market forecasting and stakeholder management in the PV industry.
Keywords
Strategic Management, Photovoltaic, Renewable Energies, Competitive Strategy, Environmental Analysis, Business Strategy, Market Forecasting, Sustainable Competitive Advantage, Energy Sector, Corporate Objectives, Strategic Planning, Technology Development, Policy Influence.
Frequently Asked Questions
What is the core focus of this work?
The work focuses on how strategic management theories and processes are applied within companies producing photovoltaic panels to maintain competitiveness and ensure long-term viability.
Which central topics are addressed in the analysis?
Key topics include goal setting, internal and external environmental auditing, the influence of various management schools of thought, competitive strategy formulation, and the challenges of future market forecasting.
What is the primary goal of the author?
The primary goal is to present a structured overview of the strategy process and examine how PV firms can adapt to dynamic market changes and environmental pressures.
Which scientific methods are employed?
The author employs a literature-based analytical approach, reviewing established strategic frameworks—such as Porter's Five Forces and SWOT analysis—and applying them to the specific context of the renewable energy sector.
What does the main body of the work cover?
The main body details the step-by-step process of strategic management, from defining mission statements and goals to analyzing the external business environment and executing competitive, long-term strategies.
How would you characterize the keywords of this paper?
The paper is characterized by terms related to corporate strategy, renewable energy technology, environmental management, and strategic decision-making processes.
How does government policy specifically affect PV strategy?
Government policy acts as a critical external driver, particularly through market instruments and financial incentives, which are essential for making PV technology competitive against traditional fossil fuels.
What is the author's stance on competitive benchmarking in the PV sector?
The author is somewhat skeptical about standard competitive analysis models, noting that the 'prisoner’s dilemma' often applies as firms withhold sensitive data to maintain their competitive advantage.
- Citar trabajo
- Dipl.-Ing. (FH) Jan Seidel (Autor), 2007, Strategic Management in the Renewable Energies Sector, Múnich, GRIN Verlag, https://www.grin.com/document/77057
