Cost Cutting Energy Efficiency Solution for Southern Wal-Mart Stores - Research Paper Example

Memo Dr. Rohrer Qing Wang Recommendation Report Topic Proposal October, 27 Cost Cutting Energy Efficiency Solution for Southern Wal-Mart Stores Introduction Energy consumption is a critical concern for most companies because the commodity is rather scarce. Wal-Mart, a major retailer in the United States, has many stores spread across many States. The primary objective of this report is to evaluate cost-cutting energy options for Wal-Mart stores in the south of United States. Southern Wal-Mart regional manager will review the report because he intends to make implement the recommendations as means of minimizing the current high energy costs. As external civil department consultant for Wal-Mart operations in the South, I take this opportunity to express my professional thoughts on possible cost-effective measures available for Southern region manager to consider. I will be examining the theoretical electricity cost cutting options for Wal-Mart. In the midst of the ever growing notion of “green energy,” there are various options available for organizations. I will evaluate benefits that an organization can accrue from using either solar, wind or electricity. Through an analysis of the evident options for the organization, their benefits and costs will be evaluated extensively. Energy management, especially cost reduction has a direct bearing on profitability as well as sustainability efforts of a company; hence, Wal-Mart is not an exception. Description of the case study Ideally, Walmart has operations overseas and across borders but its primary operations are in the U.S. With significant nearly 25% of its stores and clubs operating in the Southern U.S, Wal-Mart is southern branches contribute significant revenue (Corporate.walmart.com). Wal-Mart sells various merchandize ranging from household items to electronics. However, the energy consumption points are its stores and club operations spread in Southern region. Investment on energy efficiency is a fundamental strategy in cutting the costs in an organization such as Wal-Mart. Energy efficiency is an excellent approach in saving costs for a business without compromise on customer product or service delivery. In the ever competitive business environment, commercial buildings consume an average of 14.1 Kilowatt-hours (KWH) of electricity per year per given facility according to the online statistics that published recently. The extensive costs are highly impactful on the financial statements and profitability of an organization. In retail industry, maintaining minimum costs is effective to sustain profitability. Wal-Mart stores in the south operate on an energy saving strategies that dictate sharing of light systems. Furthermore, the company has a culture that encourages its employees to use electricity when necessary. Additionally, the company uses solar systems in some of its stores to offer alternative source. Despite all the above strategies, gap still exist to improve efficiency. Solar energy Solar energy is available especially in regions that receive lower levels of snow. Accordingly, from the analysis of Wal-Mart, the implementation of the solar energy approach is highly advisable for the business due to its efficiency and no emissions. However, the installation costs are high due to the costs of the solar panels (Baltas and Dervos 358). The solar panels cost for as high as $9000 with extensive implications on the financial statements of the organization. However, the available solar energy is highly advisable for the business since it will enable the business to enjoy year round supply of power in its Southern stores where sun is abundant for solar generation. Wind energy Wind energy is extremely clean for any organization. Focus on the wind energy entails the installation of on-site wind energy for the organization. The on-site wind energy entails the setting up of wind turbines at the organization which is highly expensive with cost repercussions exceeding $1 million for an organization such as Wal-Mart. Furthermore, wind energy is highly reliant on the prospect of wind patterns. However, using on-site wind turbine for the business will ensure that costs are saved by as much as 70% after installation. Therefore, installation of wind turbines in unoccupied regions around the stores would add energy for use. Decision criteria Making the most cost effective option for energy saving is a daunting aspect for any organization. As such, the cost implications pose an aspect of concern for organizations aiming to both save on energy costs and maintain a green approach to performance. Hence, the main criterion in making the decision includes: Cost: How much it will spend on this project? Dependability: Are the estimates of wind energy, solar energy and lighting system accurate? Viability: Can these be long lasting plans? Availability: Are all the resources needed for this project enough and accessible? Efficiency: How much it will save for the costs on energy for Wal-Mart? Qualifications The interest on green economy is a personal area of enthusiasm. Maintaining a more cost effective performance approach has become a personal avenue for research. Through understanding of the evident options for businesses in saving energy costs, catapulting the knowledge levels and maintaining an extensive research is bound to prevail. Although I am currently major in media study, but I have been studied environmental science for three years. I also have several experiences of internship addressing environmental science. Therefore, I believe I can do a good job finishing this project. Audience Changing the operational facets of an organization to suit and ensure energy efficiency is daunting. As an operational mandate that requires a holistic involvement, the main parties that will be involved in descending order include: Top Management: Upon presentation of the report, the Sothern region chief executive officer will decide whether implement changes or not. However, the manager must consult with Wal-Mart president and board of directors for approval. Putting cost can increase the net profit margin of the overall corporation, which can be reflected in the compensation and salaries of these top managements by percentage of the annual profit. Middle Management: Middle Management includes local branch managers and line managers. These two types of managers can also benefits from the cost cutting plan, since part of their salaries is a percentage of local store’s profit. General Employees: Although there will not be direct benefits for general employees, they can be benefit in an indirect way. If the cost cutting plan is implemented and works perfectly, the company will do better in terms of profit margins and profitability, which the retained earnings will be invested back to the company, including towards the general employees. Budget Ink: $0.20 Paper: $0.30 Report Cover: $3.00 Binding: $1.50 Work plan GRANTT CHART   Start       TASK   Day one Day two Day 3 Day 4 Research and note taking     3 hrs  2hrs   First draft        5hrs   Analysis and discussion          3hrs final submission          1hr Continuation for approval: I would like to ask for the approval to proceed with my recommendation report as per my above proposal Work Cited Corporate.walmart.com,. Global Responsibility. N.p., 2015. Web. Baltas, A.E., and A.N. Dervos. Special Framework for The Spatial Planning & The Sustainable Development Of Renewable Energy Sources. Renewable Energy 48 (2012): 358-363. Web. Read More