Siemens Green Port - Wind-Powered Renewable Energy Strategies - Example

SIEMENS GREEN PORT: WIND-POWERED RENEWABLE ENERGY STRATEGIES Student’s Name Course Title Name of Instructor Institutional Affiliation State Date Executive Summary In the recent years, there has been an increasing need to adopt renewable sources of energy for both domestic and industrial use. The use of wind energy has transformed the operations of various industries since it provides clean energy that does not pollute the environment (Papavasiliou et al. 2011, p.2204). The paper has presented a critical analysis of Siemens Wind Power Division in Hull; the United Kingdom as well as the strategies that the company has adopted to ensure improved performance in the energy industry. Moreover, the paper has examined the political-economic environment of the company as well as the firm’s goal of attaining a global operation and the operating environment in regards to the generation of wind-powered renewable energy. Through the adoption of effective strategies such as the use of advanced technology in the generation and distribution of wind-powered renewable energy, customer-oriented governance, and innovation, Siemens Wind Powered Renewable Energy Division has managed to provide high quality and affordable renewable wind-powered energy for both domestic and industrial consumption. Table of Contents Executive Summary 2 Introduction 4 Renewable Energy Strategy 4 Provision of High Quality and Consumer-Oriented Wind-Powered Energy 4 Offshore wind power generation 5 Onshore wind power generation 7 Effective Management of the Company 9 Customer Focus 10 Sustainability Efforts and Corporate Social Responsibility 12 Environmental Focus 13 Operational Environment 14 Target Market 15 Political Involvement 15 Investments and Partnerships 16 Conclusion 17 Recommendations for the Strategic Direction to be Undertaken 18 Appendix 21 Reference List 22 Siemens Green Port: Wind Powered Renewable Energy Strategies Introduction One of the major wind energy producing companies that have brought a tremendous impact on wind power production in the United Kingdom is Siemens Wind Power Company. Through establishing a wind power division in Hull, the company has been at the forefront of generating clean energy according to the global energy production laws and regulations. The company has adopted various strategies aimed at creating a sustainable environment for the production of wind-powered renewable energy. Unlike the non-renewable sources of energy such as coal, renewable energy results in the conservation of the environment. Siemens Wind Power Generating Company has recognized the importance of producing renewable energy thus established a division in Hull. Siemens wind power is divided into two subdivisions, Onshore Wind Power and Offshore Wind Power. The Onshore Wind Power Subdivision deals with the generation of wind-powered energy on the ocean while the Offshore Wind Power Subdivision is the production of wind-powered energy inside the land using wind turbines. Renewable Energy Strategy Siemens Wind Powered Energy has embraced several strategies aimed at improving the performance of the company both in the local and in the global market. The major strategies that have been adopted include: Provision of High Quality and Consumer-Oriented Wind-Powered Energy The primary strategy that Siemens Wind Power division has adopted is the generation of high quality wind power. The company is focused on producing a renewable source of energy tailored towards the tastes and preferences of the consumers. The strong demand for renewable sources of energy, therefore, has made the company specialize in the generation of wind-powered energy (Ummels 2009, p. 238). The company, therefore, provides a decentralized wind power through the production and distribution of wind-powered energy for both industrial and domestic use. The company has also diversified the methods of generating wind-powered energy. One of the ways that are used to produce wind-powered energy is for onshore wind power generation. The wind turbines are located both onshore and offshore where energy is produced. Moreover, the company also generates wind energy through offshore turbines that generate power on the land. The offshore wind power produces high quantities of renewable energy as compared to onshore wind energy generation due to the abundance of water. The firm has also adopted the use of advanced technology that has led to the production of sophisticated wind turbines that have the capability of producing a lot of wind-powered energy. Siemens Green Port manufacturing of wind turbines for offshore and onshore wind power generation. Offshore wind power generation The increasing demand for renewable energy has led to the production of high quantities of energy. In the recent years, the building and expansion of industries have increased the rate of energy consumption in the United Kingdom. Offshore wind generation occurs in the land. The wind turbines are strategically located in areas that experience high winds that can generate electricity. The adoption of offshore wind power generation has led to the production of large quantities of energy. According to the 2016 wind energy production annual report, the offshore wind power generated 12.8% of the total wind-powered energy in the U.K. This means that the was a high demand for renewable sources of energy. Most business organizations have tried to comply with the Environmental Protection Act of 1990 that calls for the adoption of clean power sources as a way of protecting the environment. At the Siemens wind power division in Hull, the turbines produced are mostly used to generate offshore wind-powered energy. Advantages of offshore wind power Generates a lot of Energy. According to Akhmatov et al. (2008, p. 121) offshore wind power is capable of generating a higher percentage of clean energy as compared to onshore wind energy. This is because there is sufficient wind that travels at high speed that ensuring the production of a lot of energy. Moreover, several turbines can be placed on a piece of land thus increasing the rate of energy production. An affordable source of Energy. Offshore wind is cheaper than onshore wind. This is because of the low generation and distribution costs. Since the wind power producing machinery is located on land, the cost of generating wind power is lower than onshore wind power. Both small and large corporations are therefore able to purchase the wind-powered energy produced offshore. Low maintenance costs. Since the wind turbines are located on land, they are not prone to destruction. Moreover, the turbines are located in sparsely populated areas that minimise damage. Therefore, it is cheaper to repair and maintain offshore turbines that are used to generate wind-powered energy. Disadvantages of offshore wind power The low rate of energy production. Although offshore turbines produce a lot of energy, the speed of power generation is lower than the onshore wind energy production. This factor can delay the production and distribution of energy to the local and international market. Negative impact on the environment. Offshore wind production can disturb the habitat through noise and death of birds. Some birds might be hit by the rotating turbines thus reducing their population in the ecosystem. The noise produced by the rotating turbines can also cause air pollution. Onshore wind power generation Siemens Green Port also manufactures wind turbines that will be used for onshore wind power generation. Due to advanced technology, Siemens have managed to venture into onshore wind power production in which the turbines float on the water and generate electricity for both industrial and domestic purposes. Advantages of onshore wind power generation Production of high quality wind energy. Due to the adoption of sophisticated technology, onshore wind power generation has the capability to produce high quality wind energy (Lewis & Wiser 2006, p.1848). Moreover, the rate of producing the wind power is high since the advanced technology can be used to improve energy production. Less impact on the environment. Since the wind turbines are located in the oceans, problems such as obstruction of wildlife’s movements and noise pollution are eliminated. Disadvantages of onshore wind power generation Expensive for the consumers. The production of onshore wind power is very expensive due to the costs of production. Therefore, small business and people from poor socio-economic backgrounds cannot afford to use wind-powered energy generated onshore. High repair and maintenance costs. Due to their remote location in the oceans, it is expensive to fix the turbines and the related technological infrastructure. The use of advanced technology in onshore wind production has also led to higher costs of maintenance since highly skilled labour force must be used to ensure efficiency of the plants. A graph showing the consumption of onshore and offshore wind power alongside other sources of energy in the United Kingdom Effective Management of the Company Another strategy that has revolutionised wind power production in the company are the reforms that have been made in the leadership structure. Siemens has realised the value of consumer-oriented management. The organization has therefore adopted management styles that have bridged the gap between the company and the consumers. For example, there is an effective regional management board that oversees the generation of wind-powered energy within the United Kingdom. All subsidiary firms such as the Hull City Siemens Plant report to the local management board. Through effective communication, the leaders coordinate among themselves to ensure the operations of the organization are running according to the short-term goals and objectives (Knuppel et al. 2012, p.83). The regional managers coordinate with the leaders at the parent company in the decision making processes within the organization. The management model is tailored towards the needs of the consumers. The company’s management is tasked with recruiting highly skilled employees as well as promoting experienced workers in various leadership positions. The administration of the organization has created an enabling environment for the stakeholders of the organization. For example, the employees are allowed to discuss critical issues with the top management. The regional managers allow the junior workers to participate in the crucial decisions making process such as the establishment of new divisions in different parts of the world. The adoption of an integrated leadership has enabled Siemens Wind Powered Energy division to achieve the short term goals in the recent years. Siemens has also implemented a financial model policy that controls the use of funds in the unit. According to the financial model, the company produces highly sophisticated wind turbines that are used in the offshore and onshore wind power generation. The presence of financial resources has enabled the company to acquire high quality machinery that has enabled the integration of skills and innovation in the production of renewable wind-powered energy. The management, therefore, ensures that the financial resources are used to enhance the productivity and performance of the organization. Customer Focus The primary strategy that Siemens Green Port has adopted is focusing on the demand and the needs of the customers. First, the company has embarked on the identification of the target market both found locally and in the globally. At Siemens Wind Power production company, the customer is king, and the various efforts have been undertaken to improve the relationship between the organization and the customers. According to Liserre et al. (2010, p.26), through the study of the current trends in energy consumption and the changing customer needs, Siemens have adopted strategies aimed at providing consumer-focused products and services. Just like other multinational companies such as Apple and General Motors, Siemens Wind Power Company has created an enabling environment for the customers. Unlike the traditional business approach that was aimed at increasing the profitability of the company, Siemens has adopted a business model that has infused profitability with a customer focus. The business hence ensures that apart from generating profits, the customers acquire products and services that can satisfy their energy needs. Some of the ways that the firm has undertaken to provide customer-focused products include: Adopting effective communication channels- Siemens has embraced various channels of communication through which it interacts with the consumers. Having realized the role of communication in building good business-customer relations, Siemens has improved the relationships with the customers. For example, the company uses press releases to communicate to the customers and the stakeholders. Moreover, the company uses the Internet to disseminate critical information about the latest developments in the business. Moreover, the company uses social networking sites to interact with the consumers. For example, the company announced the establishment of a new subsidiary firm in Hull using new communication technologies, in particular through the website. The organization also made the announcement on the traditional communication technologies such as radios and televisions. The company has been recommended for creating a user-friendly website that has enhanced communication with the customers. Business organizations and individuals who have ordered for wind-powered energy have thus been in a position to make inquiries about the distribution of the wind-powered energy to various regions. Moreover, the company also conduct exhibitions and trade fairs in which the agents demonstrate the effectiveness of the wind-powered energy as compared to other forms of energy such as coal energy. Leveraging of power distribution patterns- Siemens Green Port has also undertaken measures aimed at bringing the wind-powered energy closer to the consumers. This has been undertaken through a sophisticated power distribution system. The organization's use of advanced technology has enabled it to build both onshore and offshore wind power production centers. The company also distributes the wind-powered energy to both business organizations and individuals. The firm also undertakes installation and maintenance of the wind-powered energy on behalf of the consumers. Siemens has also undertaken a strategy aimed at creating awareness on the importance of adopting renewable energy as opposed to non-renewable energy sources. The wind power plant, therefore, provides high quality wind energy through the production and distribution of wind-powered energy for both industrial and domestic use. The company has also adopted various the methods of generating wind-powered energy. One of the ways that are used is used to produce wind-powered energy is through offshore wind power generation. The wind turbines are located both in the oceans and on the land. Moreover, the company also generates wind energy through offshore turbines that generate power at sea. The offshore wind power produces high quantities of renewable energy as compared to onshore wind energy generation due to the presence of high-speed wind. Sustainability Efforts and Corporate Social Responsibility Siemens Green Port has also implemented policies aimed at improving the sustainability efforts. The power company has recognized the importance of sustainability on its operations. The company has developed both short-term and long-term goals. One way in which the company wants to attain sustainability is through enhancing its competitiveness in both the local and global market. The organization produces a high quality renewable source of energy that experiences a high demand among business groups and individuals. The sustainability goals of Siemens target the attainment of global operations. The company wants to penetrate the world market and therefore to establish subsidiaries in several countries in the international market. The business has also has embarked on corporate social responsibility programs in the local community. For example, the company has been supporting community development programs such as the building of health centers and infrastructures such as roads. All these social responsibility efforts are aimed at giving back to the local community as well as building the reputation amongst the local community. The company also helps the needy and the people living with disabilities. The corporate social responsibility efforts have thus improved the relationship between the organization and the local community. The manufacturing firm should ensure that it produces high quality wind-powered energy that can be used in the business organizations as well as in homes. Another way of achieving improved performance is to participate in the corporate social responsibility. Through participating in community projects such creation of awareness on the need to protect the environment, Siemens Green Port has built a good image among the customers. This is because the actions have led to an increase in the demand for wind-powered energy by the local community and business organizations Environmental Focus Siemens Green Port has been at the forefront of advocating for the production and use of renewable energy. Renewable sources of energy such as solar and wind power produce clean energy that can result in environmental conservation. Apart from being customer-focus, the company is also focused towards environmental preservation. Therefore, before the establishment of the offshore and onshore wind-powered energy production occurs, Siemens Green Port must collaborate with environmental bodies such as European Wind Association and the United Nations Environmental Program to evaluate the possible impact that the industry will have on the environment. Moreover, the organization has embraced a policy in which it aims at using materials that are biodegradable. According to the company’s focus plan, the port has set a goal that will see the use of machinery made of biodegradable materials by 2020 (Sen 2008, p.117). This measure has made the company to be recognized by global environmental bodies such as the United Nations Environmental Program. Siemens Wind Power also undertakes a periodic cleaning of the shore. Due to oil spills that usually contaminate the ocean water, the organization has ensured that the ocean water is safe for the living organisms as well as human consumption. Operational Environment Siemens Wind Power Division was established in 2014 in Hull city following a partnership deal between the Siemens Power Company in Germany and Associated British Ports in the United Kingdom. The company is strategically located at Alexandra Dock where the company has developed both onshore and offshore wind power generation system. The company uses advanced technology to leverage the production of the renewable source of energy. The organizational structure is tailored towards the needs of the consumers. The company’s management employs highly skilled workers as well as promoting experienced workers in various leadership positions. The management of the organization has created a sustainable environment for the stakeholders of the organization. For instance, the employees are allowed to make critical decisions with the top management. The regional managers allow the employees to participate in the crucial decisions making process such as the establishment of new divisions in different parts of the world. According to Panwar et al. (2011, p.1517) the adoption of an efficient management has enabled Siemens Green Port to achieve the short term goals since its inception. The company has also implemented a financial policy that controls the use of funds in the division. The company has been recommended for creating a user-friendly website that has enhanced communication with the customers. Business organizations and individuals who purchase wind-powered energy have thus been in a position to make contact the company about the pricing and distribution of the wind-powered energy to various regions. Moreover, the company also participate in conferences in which the agents demonstrate the effectiveness of the wind-powered energy as compared to non-renewable sources of energy. Target Market Siemens Wind Power division focuses mostly large industries that use a lot of energy such as manufacturing corporations. With the increasing demand for renewable energy such as wind power, contemporary business organizations prefer clean energy as opposed to non-renewable energy sources such as coal. Therefore, Siemens produces wind-powered energy to various industries such as manufacturing, chemical as well as service sectors. Another target audience for Siemens are individuals who use wind-powered energy domestically. The domestic use of power such as for lighting and cooking is also shifting towards renewable energies. The company, therefore, produces energy for domestic consumption. The demand for renewable energies has increased since it does not result in environmental pollution. Therefore, Siemens has provided clean wind-powered energy for both industrial and domestic use. Political Involvement The operations of Siemens Wind Power division in Hull are controlled by various government agencies such as the Department of Business, Energy and Industrial Strategy, Associated British Ports and European Wind Association. These bodies help in the enactment of laws and policies that control the operations of industries in various sectors such as the energy sector. The Department of Business, Energy, and Industrial Strategy is mandated with regulating the activities of organizations in the manufacturing industry. Moreover, the body ensures that fair competition exists among the business groups. The European Wind Association is mandated with examining the viability of using the wind to produce wind-powered energy by international organizations as well as the organizations' adherence to the regulations. The wind power plant, therefore, provides high quality wind energy through the production and distribution of wind-powered energy for both industrial and domestic use. The company has also diversified the methods of generating wind-powered energy. One of the methods that are used is used to produce wind-powered energy for onshore wind power generation. The wind turbines are located both in the oceans and on the land. Moreover, the company also generates wind energy through offshore turbines that generate power on the property. The offshore wind power produces high quantities of renewable energy as compared to onshore wind power generation due to the presence of sufficient wind that travels at high speed. The company has also adopted the use of sophisticated technology that has led to the production of complex wind turbines that have the ability to produce a high quality wind-powered energy. Investments and Partnerships Siemens Green Port project has been involved in several partnership deals with other well-established business organizations in the United Kingdom. For example, Associated British Ports is a business partner of Siemens Wind Power division in Hull. The two organizations have entered into an agreement to improve the operations of Siemens Wind Power both locally and in the international market. The Associated British Ports, in other words, has invested in the Siemens Green Port project. The organization, therefore, has participated in contributing the financial resources that have been used to build the Siemens Wind Power division at Alexandra Dock in Hull. Moreover, the company has entered into a partnership with local organizations with the aim of providing high quality wind-powered energy to the local businesses as well as for the local communities (Nielsen et al. 2007, p.449). Through the study of the current trends in energy consumption and the changing customer needs, Siemens have adopted strategies aimed at providing consumer-focused products and services. Siemens Wind Power Company has created an enabling environment for the customers. As opposed to the classical business models that were aimed at increasing the profitability of the company, Siemens has adopted a business model that has incorporated profitability with the customer focus. The business hence ensures that apart from generating profits, the customers acquire products and services that can satisfy their energy needs for both industrial and domestic use in the society. Conclusion Siemens Green Port project, therefore, has embraced practical strategies that can result in sustainable development as well as the achievement of goals and objectives. The desire to control the effects of climate change has played a significant impact on the implementation of policies that have favoured the generation of renewable sources of energy. Siemens Wind Power division has therefore recognized the impact of sustainability on its operations. The company has developed both short-term and long-term goals and objectives. One method in which the company wants to attain sustainability is through enhancing its performance in both the local and international market. The company produces a high quality renewable source of energy that has led to a great demand among business organizations and individuals. The sustainability goals of Siemens also aim at the attainment of global operations. The company wants to penetrate the world market and therefore to establish branches in several countries in the international market. The business has also has embarked on corporate social responsibility programs in the local community through participating in community developmental projects. Recommendations for the Strategic Direction to be Undertaken Due to stiff competition both in the local and global market, Siemens Wind Power Division in Hull should implement more effective strategies that can ensure continuous improved performance and productivity. The organization should adopt the following recommendations. Customer relations. Improving the customer-relationship should be the main aim of the company. The business should take measures aimed at building its reputation. One way of achieving this standard is through producing high quality, and consumer-oriented wind-powered energy. Siemens Green Port should also provide affordable wind-powered energy to small and medium sized business organizations as well as individuals. The company should give discounts to people from low socio-economic backgrounds in the local community. This will bridge the gap between the wealthy and the poor in the society. Moreover, small and medium-sized business organizations should access the wind-powered energy at more affordable prices as compared to large corporations in the local and global market. The company should, therefore, change its pricing strategy when supplying the wind power to different organizations and individuals. Innovation. Siemens Green Port should embrace innovation to enhance its operations in the United Kingdom. The innovation should influence the technology used in both the onshore and offshore wind-powered energy production. High quality software should be used to distribute the wind energy to various business organizations as well as homes in the local area. The organization should ensure that the employees are skilled and innovative thus possess the capability to use modern technology to produce consumer-oriented wind-powered energy. The department of IT should contain high skilled engineers who are either outsourced or working in the physical environment of the company. Management. Siemens Wind Power should also restructure the management to as to improve the operations both in the local and in the global market. The company should adopt an efficient management system that can ensure that the wind power company penetrates the British market. The managers, therefore, should be focused and insightful individuals who can make real decisions about the production of renewable energy. The division should have a decentralized management board that is not directly affected by the administration of the parent company in Germany. Having a decentralized management, in which the division is allowed to make its decisions is important since the company can make decisions in regards to the current market structure and the demand for the wind-powered energy in the local and global market. Sustainability. The company should also ensure that they are undertaking planning to ensure sustainability. The plan should include the ways of handling customers, promoting the products in the market as well as the production of high quality products. The company should ensure that it produces high quality wind-powered energy that can be used in the business organizations as well as in homes. Another way of achieving sustainability is to participate in the corporate social responsibility. Through participating in community projects such helping the poor and environmental conservation efforts, Siemens Wind Power Company can achieve sustainability. This is because the actions will build its reputation among the consumers thus leading to an increase in the demand for wind-powered energy by the local community and business organizations. Sustainability is one of the most important aspects of an organization. A business organization that has attained sustainability is likely to experience improved performance and productivity in its operations. Siemens Green Port, therefore, should implement the reforms that can ensure the creation of a sustainable environment for the consumers, workers, local community and the investors. Appendix a) The graph shows the additional costs on various energy sources including onshore and offshore wind-powered energy generation Reference List Akhmatov, V Nielsen, JN and Thisted, J 2008, ‘Siemens Wind Power 3.6 MW wind turbines for large offshore wind farms’, Journal of Energy Conservation, 8(1) 123-129. 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