Describe your company and its major products and services from economic perspectives using terms and concepts learned in the course.
Solar energy is one of the most efficient energy sources. This is because sunlight is available most of the times. And in this case talking about the third world countries, sunlight is available for about 12 hours a day which is able to generate sufficient amount of energy to run several systems if available in sufficient amounts. My company is among the best solar panel manufacturers in the market. It provides the capabilities for solar panel production and it is as well backed up by local customer service. These solar panels have proved to work in a diverse environments and climates.
We are in a pure competition form of market structure. This is because we have a very broad range of competitors who make and supply the same products that we have (Ginevicius,& Krivka, 2011). The solar panels have high elasticity as their demand is rising every day. This is majorly because most people are trying to save on their energy consumption and thus are opting to use solar to achieve that purpose. This is because the prices are fairly affordable as well as our maintenance costs. Secondly, we have also tried to maintain as well as reduce our cost of production in order to maintain our prices in the market. The rise in the cost of production will often lead to change in the market price thus loss of clients. The climate conditions are also likely to affect the demand and supply of our products but in this case, most third world countries have favorable climate thus this is expected not to be a major problem(Bowen, & Sosa, 2014).
Technology on the other hand is our major stronghold. We are aware that the better the technology the more it increases production (Bowen, & Sosa, 2014). This thus translates to the increase in supply of the product. Our technology is thus up-to -ate so as to keep up with the changing economies.
Discuss the current and potential economic drivers and risk
Every business faces some macroeconomic drivers as well as risks that might be a big threat to them. Some of the macroeconomic drivers include: development in technology. According to Amalric,& Hauser, (2005), the betterment of infrastructure which continues to improve the connectivity that exists between hardware and software as well as people has med the technology to continue bringing forth greater opportunities which make us improve our services. The increase in urbanization is another factor as well(Amalric,& Hauser, 2005). This is because most people will have the need for better energy sources and thus our products are likely to be marketable. The macroeconomic risks that we are prone to include the shifting exchange rates(Shiller, 1994). Sometimes the exchange rates might be favorable to as it doesn’t have a big deviation margin. When the exchange rates increase, then we can record some bits of losses. The savings and loan risks may as well be of a threat to the company. The above named are some of the external drivers and risks.
The internal drivers that the organization faces include; the efficient supply and distribution strategy(Amalric, & Hauser, 2005). We have put in place this mechanism efficiently to ensure that the supply of our products is not restricted to one specific area but to different places. We also ensure that our clients get exactly what they ask for and this thus boosts growth. Another internal driver available is experienced personnel. They ensure that every product being manufactured is of high quality as well as make necessary improvement in technology and thus maintaining our high standards. The internal risks that we may face is the managerial issues. The change in the managerial system brings forth a lot a lot of problem as each one of them comes with a new strategy which conflicts with the existing ones (Shiller, 1994).
To manage these risks, it is advisable that the company stays in insurance and should as well stay in cash. This will ensure guaranteed returns in their investments. We also need to have very clear strategies so as to avoid rise in conflict once the managerial system changes.
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