Energy Sector of Japan - Report Example

The most crucial aspect is to develop a strategy wisely and practically, and its implementation with success. In literature, it is argued that the strategy development and execution of any organization or industry are highly dependent on the structure of that organization or enterprise (Mintzberg, et al., 1998; Fredrickson, 1986; Chandler, 1962). The structure was considered to be a separate phenomenon from the strategy in the past, but now the structure has become the most influential aspect in any strategy development and its implementation.

As the structure is not merely a chart, rather it is the organization of people, processes, technology, and culture, where all of these structural elements do affect the whole strategy development and implementation procedure (Chandler, 1962). Fundamentally, the structure is an important element of the strategy, because it either assists managers in developing any new strategy or it has to be changed with the change in the strategy to achieve its goals. According to Olson et al., (2005), within an organization, the managers have to identify and define the strategies, and then for the implementation of these strategies, managers must develop a structure that augments the strategy, otherwise, the organization cannot achieve its set goals and objectives (Olson, et al., 2005). Even for any industry to flourish, the structure of that industry or sector matters a lot.

The strategy development process should be initiated by the structure of the industry, wherein the first step, the gap between the current structure and the idealized structure is identified. Then the strategies are made to bridge the identified gap (Johnson, et al., 2008). Report OrganizationThe purpose of this report is to provide an overview of the energy sector of Japan, which is divided into five main sections. Firstly, the current industry structure of Japan’s energy sector is explored along with the reasons for the contemporary structure, where the general environment is assessed with the help of PEST Analysis. The second section analyzes the competition within the industry by applying Porter’s Five Forces Model, and also the internal environment is assessed by analyzing a firm’s value chain activities, resource-based view, financial ratios, and also the balanced scorecard.