Integrated Case Study

2015-2016
Developing Growth Strategies For Namaste
Solar
Presented as part of the requirements for the award of
Master of Business Administration In
International Business
At the
Cardiff Metropolitan University
2015 - 2016
SUPERVISOR:DR RAJENDRA KUMA
STUDENT:NYENGANGNFORFE NIXON
UNIVERSITYID: ST20089963
COLLEGE ID:L0358BGOBGO0215
COURSE:MASTER OF BUSINESS ADMINISTRATION

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Acknowledgement
This report would not have been possible without the advice and support of Dr Rajendra
Kumar, course leader (MBA Program) at London School of Commerce. His guidance and
motivation, contributed tremendously to my report.
I would also like to thank the authority of London School of Commerce for providing good
environment and facilities to complete this report. I would also like to thanks my class mates,
who made the final semester very competitive and encourage me to read and learn more.
Finally I will like to thank my wife Peya Doudou, daughter Aliyah, family (Nforfe Family) and
friends for their understandings and moral support then God Almighty for making all this
possible.

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Executive Summary
Namaste Solar is a case study for making a strategic decision based on three options- sale whole
company, sale part of company or maintain the status quo and the decision had to be followed
by a good strategic plan. The company has had a good performance since its creation in 2004.
However, with time the company was growing and faced lots of competition both locally and
nationally. Most importantly, the company lack the financial resources needed to expand and
had some managerial problems such as a complex organisation structure, burnout employees,
maintaining employees’ importance etc. These affected the company’s performance and
decision-making. Despite the economic crises looming ahead, solar energy industry kept
growing at a breakneck speed and the company has to grow same. Therefore, this report is
aimed at giving solutions to the company to overcome all the problems facing them and why
the happen. The solutions are followed by recommendations and a business plan which the
company can follow for the next 4 years. The research was exploratory type and was based on
secondary data. Based on the analysis and findings done in the report, it’s recommended for
the company to look for low cost and product differentiation to gain more market shares. These
is a brief look at the report to make the work conversant to the ready. More is detailed in study.

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Table of content
Acknowledgement ………………………………………………………………….…… 2
Executive summary …………………………………………………………………....….3
Chapter One ……………………………………………………………………………….7
Introduction …………………………………………………………………………….7
Background of the study ……………………………………………………………….7
Statement of the problem ………………………………………………………………8
Research statements……………………………………………………………………8
Research aims and objectives …………………………………………………………. 9
Research aims………………………………………………………………………..9
Research objectives ………………………………………………………………...9
Organisation of study ………………………………………………………………… 10
Chapter two ……………………………………………………………….........................11
Case brief ………………………………………………………………………………11
Chapter THREE …………………………………………………………………………...15
Problem statement and plan of analysis ………………………………..........................15
Plan of Analysis ……………………………………………………………………......16
Strategic Management Problems ……………………………………………………….17
Human Resource Management Problems ........................................................................19
International Business Problems …………………………………………………..........22
Financial Analysis and Management Problems …………………………………...........24
Organisational Behaviour Problems ……………………………………………...…….24
Research methodology ………………………………………………………………….25
Research Design ……………………………………………………………...…………25

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Research Philosophy …………………………………………………………………...25
Research Approach …………………………………………………………………….26
Research Choice ………………………………………………………………………..27
Research Strategy ………………………………………………………………………27
Source of Data ………………………………………………………………………….27
Ethical Issues …………………………………………………………………...………28
CHAPTER FOUR …………………………………………………………………...…….29
Analysis and findings …………………………………………………………………..29
Strategic Management ………………………………………………………………….29
Human Resource Management …………………………………………………………32
International Business …………………………………………………………………..34
Financial Analysis and Management ........................................................................…...35
Organisational Behaviour ……………………………………………………………….35
CHAPTER FIVE …………………………………………………………………………..37
Proposed solution and recommendation ……………………………………………….37
Human Resource Management …………………………………………………………38
International Business ………………………………………………………………….40
Financial Analysis and Management ………………………………………...................41
Organisational Behaviour ……………………………………………………………….41
Implication for various stakeholders ……………………………………………....……41
Proposed business plan …………………………………………………………...…….42
Limitations ……………………………………………………………………………...42
Resource Availability and Constraints ………………………………………………….42

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CHAPTER SIX ………………………………………………………………………...….43
Introduction …………………………………………………………………………….43
Company background …………………………………………………………………...43
Business problems ……………………………………………………………………….44
International Business ………………………………………………………………….44
Problem Analysis ………………………………………………………………………...44
SWOT analysis ………………………………………………………………………...45
PEST analysis …………………………………………………………………………46
Blue ocean strategy …………………………………………………………………...48
Transfer of learning ………………………………………………………………………49
Solutions and Recommendations ………………………………………………………..50
Conclusion and Recommendation ……………………………………………………….51
References …………………………………………………………………………………...52

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List of figures
Figure 1: Namaste solar revenue chart………………………………………………………12
Figure 2: Environmental friendly energy ………………………………………………...…13
Figure 3: Namaste solar key problems ……………………………………………………...15
Figure 4: Twelve management models classified under five subjects ……………………...16
Figure 5: SWOT analysis …………………………………………………………………...17
Figure 6: Porte’s generic strategies …………………………………………………………18
Figure 7: The BCG matrix …………………………………………………………………..18
Figure 8: Deal and Kennedy culture model ………………………………………...……….19
Figure 9: Herzberg’s Two – Factor theory ………………………………………………….20
Figure 10: Pareto analysis diagram ………………………………………………………….21
Figure 11: Belbin team roles ………………………………………………………………...22
Figure 12: Porter’s five forces………………………………………………………………..23
Figure 13: the Mckinsey 7s model ………………………………………………………….24
Figure 14: Inductive research ……………………………………………………………….26
Figure 15: Deductive research ……………………………………………………………….26
Figure 16: Namaste solar porter’s five forces analysis …………………………………..…34
Figure 17: Porter’s model of generic strategies ………………………………………….....40
Figure 18: SWOT analysis of First solar …………………………………………………..45
Figure 19: Transfer of learning from Namaste solar case company to First solar Inc……….49

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CHAPTER ONE
1. Introduction
This study aims at directing a nitty gritty investigation of the difficulties confronting case
company Namaste Solar to offer solutions and conclusion using academic literature and
secondary research findings. Investigation of the organization demonstrates that absence of
procedure and non-strategic direction has let to challenges for the company. Namaste Solar
was operating in a new and fast growing industry with lots of competitors. However, initiatives
taken by the company were slow and did not produce the results required.
Appropriate managerial models and concept are used to analyse the problem facing the
business. Adequate solution will be proposed based on academic findings and justification.
Successively, the decision is taken to guarantee that optional solutions turn into a vital
component of the analysis. This study is approached meticulously to review all available
solutions proposed for the company. However, these proposed solutions are evaluated to
understand it implication on the business, employees, customer and stakeholders.
A chapter will be dedicated to the transfer of learning from the Namaste Solar case company
to First solar, Inc. (solar energy company) company to offer solutions and test the knowledge
acquired from Namaste Solar.
This study is submitted as a proposed solution to Blake Jones, Namaste Solar’s CEO and
employee-shareholders make a final decision regarding their future.
1.1 Background of the study
The drive for undertaking this case study is to help the company choice the convenient
strategic decision for its future. Set up by Blake Jones in late 2004, Namaste Solar grew to be
one of the main companies offering renewable energy in Colorado with 20 to 25percent of the
market share owned by them. The business was to design, install and maintain solar electric
systems for government customers, residents, non-profit and commercial customers. The
renewable industry was new and growing fast coupled with high competition. Namaste solar
has to grow at same breakneck speed, this requires additional fund which the company is unable
to get internally. Since its creation, Namaste solar has always had difficulties in getting the
necessary capital for its growth and turned to its employees for funding in exchange of

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ownership in the company. This strategy showed its limitation and Jones (CEO) had to decide
whether to maintain the status quo, sell in part or whole.
Statement of the problem
Despite Namaste Solar’s growing market share and increasing profit, they have been
experiencing increasing competition coupled with opportunities in different renewable energy
sector. For its survival, the company’s shareholders have to take some important strategic
decisions.
This study seek to find out on what bases and with what relevant tools can the shareholders
choice the right possible decision. Below are five problem statements, which have been formed
and categorised under five subjects;
High competition from both local and national firms and emerging recession.
Financial analysis and management
Undervaluation of the company and lack of capital
Strategic management
How to maximise potential income for the organisation
Human Resource Management
Restricting employee burnout, maintaining employee importance and keeping the culture
Organisation behaviour
Complex and difficulties to coordinate organisation structure
1.3 Researchquestions
The overall objectives of this study is to pinpoint the problems associated with Namaste
Solar, how to overcome them in order to help company grow to its maximum potential and to
put in place the right business strategies. To build up the proper answers for the above
problems, five research questions are intended to target one problem each in five academic
subjects. It will help overcome any major problem that will arise and provide adequate
solutions.

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What are the challenges faced by Namaste Solar in the local and national market and how
does it impact policy making?
What are the valuation challenges and financial dilemma faced by Namaste Solar and what
are the solutions to this challenges?
What are the strategic management directions available to Namaste solar and it’s
implication to the company and its shareholders?
Organisational behaviour
What are the approaches to consolidate collective decision making policy and how to build
up another proficient and compelling organisation structure for Namaste Solar to overcome its
difficulties?
Human Resource management
Why it is significant to keep the corporate culture, restrict employee burnout and
maintaining employee importance?
1. 4 Research aims and objectives
Research aims
This study aims to device solutions for future business challenges. Furthermore, the
commitment to this research is to apply the findings and to gain from the analysis directed for
the solar photovoltaic panel industry to solar panel manufacturing industry. All two points are
worth adding to the professional knowledge for taking care of more unpredictable problems in
the consultancy firms.
Research Objectives
The analysis conducted in this case study will be based on the five subject identified on the
research questions. This will entail models and theories on each subject focused on the research
objectives below;
International business

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To understand what the challenges and solution for an organisation aiming for national or
international expansion.
To investigate the strategic implication or challenges facing the organisation and solutions.
To examine the proposed organisation structure challenges and the way it improves the overall
performance.
Human resource management
To analyse the best human resource management policy for the organisation’s future.
To examine the financial challenges and provide the best financial options available for the
organisation.
1. 5 Organisationof the study
The research will be organised in six different chapters.
 This present chapter (chapter one) consist of background of the company, research
aims, problem statements, research goals and organisation of the study.
 The second chapter will concentrate on description of the situation (case brief).
 The third chapter will identify the problems and plan of analysis. This will include
appropriate literature review (concepts, theories, models, research relevant to the case).
 Chapter four assess the current position derived from chapter three. Chapter five will
prosed solutions to the problems identified in chapter three.
 Finally chapter six shows the application of learning to another organisation in any
industry. In addition, it will also provide recommendation for management and further
academic research.

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CHAPTER TWO
Namaste Solar Case brief
Set up by Blake Jones (CEO) in late 2004, Namaste Solar is a solar energy firm with
headquarter in Boulder, Colorado. The skills gained from his previous job in Nepal coupled
with the opportunity set by the ballot initiative that established a renewable electricity standard
(RES), Jones saw an opportunity to follow is heart to Boulder. The RES created real economic
incentives for solar system installation in newly constructed building and retrofits in Colorado
(Lawrence et al, 2010).
Namaste Solar is involved in design, installation and maintenance of solar electric systems
for private homes and businesses. Its beginning wasn’t easy, especially raising the necessary
capital for the company and recruiting the necessary personals. Banks didn’t want to lend to
the company but were willing to lend to individuals. Unfortunately this went against the vision
of the company, as solution leaders of the company decided to get loan from individuals but
this loans were non-equity and didn’t affect the ownership structure. Jones and his partners felt
that if they hired employees that would have the opportunity to hold equity in the organization.
This could transform into something huge, beyond mere idea of investment in solar energy
industry. Equal opportunity was given to employees to buy company’s shares at any time, at
current value (Lawrence et al, 2010). By 2008, about two-third of total employees held equity
in the firm. No single shareholder owned more than 50 percent of the company (Lawrence et
al, 2010). This led to an employee- owned cooperative as requested by its founders. After four
year of existence the company had the following growth

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Figure1: Namaste Solar Revenue chart
Source: (sageworks.com)
Namaste Solar had considerable difficulties in valuing its stock. According to the case study,
Jones used multiple methods to calculate their stock value and checked how other companies
have sold for. Overtime, the company’s ownership was declining through dilution. In terms of
renewable energies, solar is the more environmental friendly as showed on the graph below.
85%
82%
76%
71%
62%
Solarpower
Windpower
Hydropower
Naturalgas
Geothermal

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Figure 2: Environmental friendly energy
Source: (Philip G. Jordan, 2013, p.23)
Recruitment at Namaste Solar was carefully done, those chosen by the company had to fit
with the skills needed by the company and philosophy and were prepared to committee
themselves for a long- term. (Lawrence et al, 2010). The renewable industry was fast growing
and new to Colorado, making it difficult to get people with the right skills and experience. By
2008, the company’s stuff grew to 55people and had a very high retention rate with just three
unplanned departures. Some of the employees were feeling exhausted from multiple year of
non-stop, break-neck growth and were approaching burnout and overload.
Namaste culture of engaged employees’ ownership was a key competitive advantage.
Employees think and act like owners either through installing panels on roof of homes or
managing administrative functions. Customer satisfaction was very high and this was
transmitted through referrals to other customers. Jones and employees held Big Picture
Meetings (BPM) weekly and discussed issues facing the company. All employees were
expected to attend meetings and fully participate in discussions. The company practised open
book management and decision making was based on consensus, which took much time.
Employee had same salary in the early year but in 2008 this changed to 10-teir wage scale,
with an average of five percent between tiers (Lawrence et al, 2010). Namaste trademarked
FOH- frank, open and honest communication, which helped prevent gossip and resulted in
issues been resolved quickly and respectfully.
In the company’s four year of existence, Namaste Solar had become the largest solar
electricity company in Colorado with over 750 solar system installation, with a total capacity
of 4,000 kilowatts which is more than any other company in the state. The company had a
market share percentage beween 20 - 25 and has remained profitable except its first year with
more than 2,250 percent growth rate. The industry’s growth keeps on growing at a breakneck
pace and in 2008, Namaste solar was on target to earn more than US$14 million on revenue.
This attracted more investors into the industry. Namaste solar faced urge competition both
locally and nationally; these include REC solar, Standard Renewable Energy, Real Goods

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Solar, Sol source, Bella Energy and Akeena Solar. There were growth opportunities in related
areas of solar water heating and concentrating solar water (Lawrence et al, 2010).
On the other hand, Jones and his partners were faced with dilemma to either sale the company
as a whole, sale part or maintain the status co. They had to figure out which outlet was best for
the organisation. Path A deals with selling the entire company, Path B deals with selling part
of the company and employees retaining partial ownership and Path C dealt with going back
to Namaste’s core values and remaining an employee-owned entity. Path B will best suit the
company in terms of its value and culture. The company will be able to raise equity and address
the problem of capital shortage, possess certain percentage of rights in decision making and as
well earn handsome return on equity.

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CHAPTER THREE
2. 1 Problem statement and Plan of Analysis
The situation faced by Jones and Namaste has profound consequences to the organisation
as a whole, customers and shareholders. This requires higher management attention and a
significant understanding of the problem for an in-depth analysis. This section offers a snap
shot of the major problem facing the company with further analyses using essential
management models to provide solutions.
Figure 3: Namaste Solar Key problems
Businessproblems
Increased competition
both national & local
Fast growing market
# Need for growth to meet up
with industry growth.
# analyse market potential
# maximising potential
income
# Potential opportunities in
related areas
# Stable national growth in
other states
# gaining access
to more capital
# slow decision-
making process
# restrict employee burnout
# Preserve corporate culture
# retain employees
# maintain employee
importance
HRM
Saturated
Colorado market
# Financial
instability

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2. 2 Plan of Analysis
The case study analysis is planned systematically with the sole purpose to solve specific
business problems which arise out of a particular situation. Based on the problems identified,
twelve relevant management models are selected to solve twelve problems. Based on rational
thinking, most of the business problem and challenge facing Namaste solar are mainly
managerial at some levels. Therefore, below models are classified in order to conduct the
analysis efficiently;
Figure 4: Twelve management models classified under five subjects.
Strategic Management
Swot Analysis BCG matrix Porters Generic
Belbin team role
Herzberg’s
Hygiene theory
Deal and Kennedy’s
cultural model
Maslach-Burnout
inventory model
Pareto analysis
International business
Strategic Alliance
Financial Analysis and management
Pecking Order
Organisation Behaviour
Mckinsey 7s Model
Porters 5 forces

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1. LACK OF CO-ORDINATION IN NAMASTE SOLAR’S RESOURCES WITH ITS
CAPABILITIES TO THE COMPETITIVE ENVIRONMENT
Figure 5: SWOT analysis
Source: (Adapted from Jennifer Snelling, 2012, p 3)
Swot analysis was conceived and developed in the 1960s, its basic organising principals
have remain the same in the field of strategic management since that time (Kotler & al., 2013).
Swot analysis framework involves the analysis of the strengths (S) and weaknesses (W) in a
business internal environment and opportunities (O) and Threats (T) of its external factors of
performance (Ghazinoory, Abdi and Azadegan-Mehr, 2011).According to Helms and Nixon,
swot analysis identifies weaknesses and strengths within a firm which may correspond to
opportunities and threat in the business environment and eventually lead to a more effective
strategy development. (Helms and Nixon, 2010). However, swot analysis identifies issues
without providing solutions. Some of the information gattered maybe over simplified and
crucial data overlooked.
2. HOW TO ACHIEVE COMPETITIVE ADVANTAGE IN A GROWING MARKET
Cost Differentiation
Broad
Narrow
Strengths
Weaknesses
Opportunities Threats
SWOT
Cost leadership Differentiation
Cost focus Differentiation
Focus

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Figure 6; Porter’s Generic strategies
Source: Porter (1985)
Doing the same thing in a better way (Bachmann, 2002, p.61) as explained by Michael Porter
in his book Competitive strategy, are recipe for operational effectives. In order to outperform
competitors, Porter suggested that Firms need to understand its competitors, its position and
translate this understanding into competitive strategy (Porter, 1980, 1985). Porter Generic
strategies focus on ways by which firms can achieve the most advantageous position that is
possible in its industry (Pearson, 1999). According to critics, Porters generic limits company’s
choices to three options. However, choice of strategy are bounded by access to resources, size
of the firm and competitive analysis (Wright, 1987, p.94).
3. IN WHAT WAYS GROWTH MAXIMISATION CAN BE ATTAINED
Figure 7; The BCG matrix
Source; (Mark Butje, 2012, p 148)
The BCG matrix also known as Boston matrix was created by Bruno Henderson in the 1970’s
for Boston Consulting Group to help companies capitalise on market-share growth
opportunities (BCG, 2015). Depending on market growth rate and relative market shares, the
BCG matrix is used determine high or low performers of businesses or products. BCG matrix
is divided into four categories, which are Stars, Question mark, Cash cow and Pet (Philip.K, et
al., 2008).According to Bruce Henderson ‘‘only a diversified company with a balance product
Market share
High Low
High
Low
MarketGrowth
Stars Question marks
Cash cow Pet

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portfolio can use its strengths to capitalise on growth opportunities’’(BCG.P, 2010). On the
other hand, it’s arguable to connect market share and profitability because sometimes low share
companies can be profitable and vice versa (Babette & Craig, 2012). The model also ignores
potential response from competitor while organisation try to build market shares and support
growth (Blythe, 2006).
Human Resource Management
1. HOW TO PRESERVE THE CORPORATE CULTURE IN THE FACE OF
MERGENCE AND ACQUICITION.
Figure 8: Deal and Kennedy’s cultural model
Source: Deal and Kennedy, 1982, p. 107
According to Deal and Kennedy, strong corporate culture are key factors in enhancing
competitive performance through greater employee commitment (Deal and Kennedy, 1982).
Employees in a strong culture know what is expected of them and Namaste solar has to preserve
their carefully crafted culture. An organisation where staff do no act in accordance with
organisational expectation will turn to use excessive regulatory procedures in an attempt to
ensure staff compliance.
2. RESTRICT EMPLOYEES BURNOUT
Maslach (1982) defines burnout as a psychological syndrome involving emotional
exhaustion, depersonalisation and a diminish sense of personal accomplishment that
occurred among various professionals who work with various people in challenging

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situations. The Maslach Burnout Inventory (MBI) provides a three dimensions to burnout
and is the most used instrument for measuring burnout (Maslach &Jackson, 1981). While
some researchers have confirmed the use of MBI as a useful tool for research, (Evans &
Fischer, 1993) others suggest viewing it as a unidimensional phenomenon
(Brenninkmeijer &Van Ypere. 2003).
3. LACK OF INCENTIVES TO RETAIN IMPORTANT EMPLOYEES
Figure 9: Herzberg’s Two – Factor Theory
Source: (adapted from Herzberg, 1959)
Herzberg’s two-factor theory identified employees to have two sets of needs in the work
place, he describes them as Hygiene factors and Motivators factors (Herzberg, 1959).
According to Herzberg, a combination of both factors can improve individual performance and
increase motivation. On the downside, the procedure used by Herzberg’s theory is limited by
its methodology and the theory fails to account for differences in individuals (Baridam, 2002)
4. EFEECTIVE APPROACH TO PROBLEM SOLVING PROCESS
Employees
Dissatisfied
And
unmotivated
Hygiene
Factors
Employees
Not dissatisfied
but
Unmotivated
Motivation
Factors
Employees
Satisfied
And
Motivated

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Figure10; Pareto Analysis diagram
Source; (spcforexcel.com)
Pareto analysis is a formal technique developed by economist Vilfredo Pareto in 1906 to
address competition for action. During a research Pareto observed that 80% of the land in
Italy was owned by 20% of the population. According to the analysis, vital items occupy a
large amount (80%) of cumulative percentage of occurrence while useful item occupy a
relatively lower amount (20%) (Karuppusami and Gandhinathan, 2006). Pareto analysis is
now used to determine which task or factor will have the most impact in an organisation
(Cervone, 2009). The Pareto analysis may lead to faulty decisions and inefficient allocation
of resources, if it fails to take into consideration recent policy changes such as government
regulation or economic policy.
5. HOW TO IDENTIFY PEOPLES STRENGTH AND WEAKNESS FOR TEAM
BENEFIT

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Figure 11: Belbin team roles
Source; (adapted from Belbin, 1981)
Belbin team role was formed in 1980’s (Belbin, 1981) and since then the theory has
become widely known (Furnham et al., 1993a). These roles were identified by Dr. R.
Meredith Belbin, who believed ideal group members need to fulfil eight and later nine team
roles which he had identified (Belbin, 1993). These included; resource/investigator, co-
ordinator, specialist, monitor/evaluator, plant, shaper, implementer, completer/finisher and
team worker. According to Belbin, some team members or managers can function in more
than one role but certain roles are unlikely combinations such as ‘shaper’ and ‘team worker’
while others roles such as ‘plant’ and ‘monitor evaluator’ were combination which could be
found together ( Belbin, 1981, p 140). The model on the other hand, turns to measure
behaviours and not personality. Belbin’s model is not a psychometric model and so cannot
measure personality attributes.
Belbin’s
Team
Roles
Shaper
Specialist
Completer
Implementer
Resource
investigator
Co-ordinator
Monitor
evaluator
Plant
Team worker

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1. HOW TO DEAL WITH INCREASE COMPETITION BOTH NATIONAL AND
LOCAL?
Strategic alliance are among the options available to companies, in order to achieve
their goals; they are based on cooperation between companies (Mockler, 1999).
Strategic alliance yields better results under certain conditions (Pellicelli, 2003).
Partners need to recognise the need to access competence and capabilities in order to
achieve particular goals. On the other hand, it’s difficult to implement and manage a
strategic alliance because of the differences in partners operation.
2. LACK OF PROPER INDUSTRY ANALYSIS AND SHAPED ORGANISATION
STRATEGY
Figure 12: Porter’s five forces
Source: (Kathryn Best, 2010, p 76)
Porter five forces gives a practical view of an industries competitiveness and
help develop corporate strategy accordingly. The five forces model is an influential tool to
identify where power lies in a business situation by using an outside-in perspective (Johnson,
Scholes & Whittington, 2008). The last decade has witness the emergence of information
technology (IT) which has become more and more important to achieve competitive advantage
but Porter’s model doesn’t include as competitive force. According to Downes, new technology
is one of the most important drivers for change (Downes, 1997).
Industry
Rivalry
Threat of
entrants
Bargaining
power of
suppliers
Bargaining
power of
buyers
Threat of
substitutes

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Financial Analysis and Management.
1. LACK OF FINANCIAL RESOURCES FOR APPROPRIATE EXPANSION
Pecking order theory of capital structure is one of the most influential theories of
corporate finance. It states that firms have a preferred hierarchy of financing decisions.
Firms choose capital according to the following preference order; internal finance, debt
and equity. Myers and Majluf (1984) argued that managers have more inside
information than investors and act in favour of old investors.
Organisational Behaviour
1. COMPLEX ORGANISATION STRUCTURE
Figure 13: The Mckinsey 7S Model
Source: (B.L. Gupta, 2007, p 128)
The structure of an organisation depends on their objective and culture. These structures
dictates the way they operate and perform (Waterman et al.., 1980). Mckinsey model is one of
the cornerstones of organisational analysis. The model is based on seven key element of any
organisation, with the view that for it to operate successful all seven element must be aligned
synergistically together. According to Richard D’aveni, organisation’s competitive
environment is often fast changing that stability assumptions by McKinsey’s framework are
Shared
Value
Strategy
Structure
System
StyleSkills
Staff

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dysfunctional and organisations need more agility, speed and capabilities to cope with the
uncertainty (Richard D’aveni, 1994).
Research methodology
As stated by Collins and Hussey (2009) research methodology is the overall approach to the
entire process of research study. Research methodology varies as according to the problem to
be investigated and focuses more on the problem to be investigated. First, the research
philosophy, which creates the starting point to the research approach. According to Goddard &
Melville, Research rationalities can differ on the objectives of research and on the most ideal
way that may be utilized to accomplish these objectives (Goddard & Melville, 2004).
Research are of two types qualitative and quantitative. Quantitative method involves charts,
graphs and number while qualitative method deals with non-quantitative elements. Case study
is non- quantitative and so is related to quantitative technique. Qualitative method is best fit
approach used in solving business problems and therefore the case study research will be done
following this method.
Research Design
The research design purpose is to address research questions in the study and turn them to
research projects (Colin, 2002: p 163). It specifies method and procedures by which data is
collected, measured and analysed (Cooper & Schindler, 2011). There exist three major research
designs; descriptive, explanatory and exploratory (ibid: 139). There exist more than one
objective to undertake a case study, there current study is based on exploratory design.
Research Philosophy
Positivism accepts that reality exist independently of the things being studied. This means
that all factual knowledge is based on information gathered from observable experience, and
any idea beyond this domain is demonstrated as metaphysical. Just systematic explanations are
permitted to be known as valid, through reason alone (Davies, 2007). Whereas, Interpretivism
involve research to interpret elements of study and integrates human interest in the study.
According to (Collins, 2010), interpretivism is ‘‘associated with the philosophical position of
idealism, and is used to group together diverse approaches including phenomenology, social
constructionism and hermeneutics; approaches that reject the objectivist view that meaning
reside within the world independently of consciousness’’. (p.38)

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26 Namaste Solar
Interpretivism approach will be used in this research. While giving solutions for the
problems of an organisation having to choose its future on three available options, its strategic
critics, organisational behaviour and human resource challenges are all human constraints. The
effective implementation of the solution as tool for developing a successful business model
depends on the perspective of the firm affected.
Research Approach
The design and structure of a research project determines the choice of research approach.
There exist types of approaches; inductive and deductive approach. The choice to pick a
particular approach ought to be founded on its suitability to answer research questions
(Bryman, 1988).
Inductive approach allows researchers to provide subjective thinking with the help of
various examples (Ridenour, Benz and Newman 2008). Inductive process starts with research
questions, aims and objectives that needs to be achieved during the research process
Figure 14: Inductive research
Source: (Blackstone 2012)
Deductive approach allow researchers to begin with social which the find compelling then
test the implementation with data (Blackstone, 2012). It begins from a general level to more
specific level with scientific investigation.
Figure 15; Deductive research
Source; (Blackstone, 2012)
After careful understanding of both approaches, the method adopted for this study is
inductive research.
Gather Data Look for patterns Develop Theory
Specific level of focus Analysis General Level of focus
Theorize/Hypothesize Analyse Data Hypotheses Supported or Not
General level of focus Analysis Specific level of focus

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Research Choice
The choice of data gathering technique affects research questions and how objectives are
met. Selection of the right technique depends on data collection procedure (qualitative and
quantitative or both). According to Saunders, there exist three methods of research choices
which include; mono method, multi-method and mixed method.
The research choice used is multi-method. By adopting multi-method, researchers would
be able to identify more solution this making the research more reliable and credible.
Research Strategy
The research strategy is the way the researcher expect to do the work (Saunders et al., 2007).
The study accentuate on secondary data for getting quicker background knowledge and
material for the case study. With this form, researchers will consult past studies and finding,
for example, reports, press articles and previous market research project keeping in mind the
end goal to arrive at a conclusion.
Research strategy includes a number of different approaches, such as case study research,
interviews, grounded theory, action research, archival research, surveys and experimental
research.
Case study research is the appraisal of a single unit with a specific end goal to set up its
key components and draw generalisations (Bryman, 2012). A research looking into case study
as a research strategy meant at undertaking an inside and out examination of the organisation
pundits and discussing about and giving the findings with solution.
Source of data
As the study is qualitative, therefore the data used is secondary. According to Newman
1998, Secondary data is derived from the work or opinions of other researchers. They include
data gathered by someone else and presented in various forms such as journals articles, archive
materials, reports, company annual report, books etc. Written documents such as journal
articles, books and internet search are used to respond to the research objectives.
Ethical issues

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Some moral issues which are generally connected with research when research develops.
This happens during contact with organisation and individual data, which need to be collected,
analyse and reported. Though, the subject of the work is totally secondary data and not intended
to affect anybody. Data collected in this paper is gathered from secondary sources and that is
publicly available. This data is handled using certain management models to analyse the data
and review findings and nowhere data is stored. No privacy norms or actual participation of
any organisation or individual involve in the research and there is no confidential data to work
on. Therefore, the entire process of conducting this research is in a moral and responsible way.
Hence, study of Namaste Solar case company involve no ethical issue.

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CHAPTER FOUR
Analysis and Finding
This section concentrates on models began on chapter three for the analysis on Namaste
Solar and provide significant findings to comprehend the business problems.
Swot analysis
Findings
Findings
Strengths
 Shared ownership for employees
 Democratic decision-making
 High employee engagement
 Rapid growth
 25% market shares of Colorado
solar energy
 Loyal customers
 Corporate social responsibility
integrated in organisation culture
 Strong organisation culture
Weakness
 Rapid growth implies high capital
which the organisation doesn’t
have.
 Poor organisation structure with
mixed divisions and functional units
 Time consuming decision making
process (consensus and democratic),
supress innovation due to low risk
solutions.
Opportunities
 High demand for customer solar
installations in Colorado and other
markets
 Strong national growth(USA) for
solar installations demand
 Private equity organisations and
investors want to purchase part or
the whole of the organisation at up
to 5 times what the organization
internally values itself
 Emerging recession encourages
individuals and organisations to
invest in solar energy to save some
money.
Threats
 Emerging recession threaten spending
plans and incomes
 Selling organisation could ruin
corporate culture
 Staff had overwork and burnout from
rapid growth and constant works for
years.
 Most employees had the life savings
invested the company with high
personal risk. These obstructs moves
for any strategic option for
transformational change.

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 There is still opportunities in the market for Namaste solar to exploit with strong
national growth
 There is need for capital to utilise the opportunities in the market and investors can
provide that.
 Namaste Solar can rely on its strong organisation culture and loyal client to gain market
shares.
Porter’s generic strategies
Generic strategies Key analysis
Cost leadership
Namaste Solar can focus on efficient
employment of capital and human resources
in an attempt to keep cost at a low level
while bringing the rewards to its customers.
They have market shares of 20-25% of the
state with a double digit revenue growth.
They can afford to perform above industry
average. Moreover they have one of the
most loyal customers in the industry.
Differentiation
Namaste Solar can offer more value to its
customers through distinctive offerings or
product quality. The availability of
innovative technology and its well-built
relationships with it superior customer
services could be a base for differentiation
Focus
There exist niche opportunities which can
be exploited by Namaste solar such as
providing and storing solar power during
blackouts i.e. backup power. Another niche
could be providing monitoring system that
helps consumers get more from solar.

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Findings
 According to recent report by the international renewable energy agency, cost of PV
panels have decreased by 80% since 2009 and this can be transfer to consumers through
lower prices by Namaste solar to achieve cost leadership.
 Differentiation is possible through innovation and unmatched customer experience.
BCG matrix
Market products Key concerns/analysis
Star Installation of photovoltaic solar system tied
to electric grid unit had a huge market share
in USA solar energy industry and keeps
growing despite the recession. It can be
considered a star.
Question mark There is a growing need for community solar
projects due to unsuitable rooftop for solar
panels for many residence.
This provides an opportunity for
crowdsourced solar projects, which can
attract new clients to cleaner energy. This
could be the next star.
Cash cow Despite high demand in Colorado, other
states are growing in solar generation such as
Arizona, California, New York and Texas
and this is despite the current economic
recession.
Dog The company’s inability to size the various
opportunities in the market will lead to
stagnation and fall in market shares.

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Findings
 Community solar projects and solar water heating has a growing market through the
USA, with the right investments can be the next big thing.
 The company had 20-25% market share in Colorado while the national growth rate is
45%. The company needs more investment to take advantage of the huge national
market potentials.
Deal and Kennedy’s cultural model
Element of Deal and Kennedy’s model Key concerns/ analysis
Tough guy macho culture
There exist elements of tough guy macho
culture in the sale department. Where
feedback is rapid and decision marking
quicker. Completion is high and meritocracy
is the best form of acknowledgement and
reward.
Work hard/ Play hard culture
Fun and action are characteristics of this
type of culture. It create high energy, which
managers need to direct to the right task. This
type of culture is what’s required by Namaste
Solar’s burnout employees.
Bet-your-company culture
The culture is associated with high risk and
regular meeting to give opinion. The regular
weekly Big picture meeting (BPM) can be
identified at Namaste solar.
Process culture
Less feedback and slow feedback makes it
hard to measure. Process in this type of
culture is slow and also known a
bureaucracy. Certain elements can be

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associated to Namaste Solar, in it slow
decision-making culture.
Findings
 A mix of the four-culture model can be found with Namaste solar. The blending of all
four-culture helps the company remain responsive to any change in environment.
 Management needs to preserve the unique culture which is strength for the
organisation and can be a source of competitive advantage.
Maslach-Burnout Inventory model
Findings
 Top managers at Namaste Solar need to get closer to staff to understand them more
and help in their personal life, if necessary.
 Flexible working hours and encourage vacation days to help motivate them.
Herzberg’s two factor theory
Findings
 Namaste Solar needs to reward achievement and recognise employees efforts in a
means to maintain their importance
 Need to create defined opportunity for advance with the organisation, to help
employees’ client the hierarchy ladders and retain the best.
 Better working workplace environment will go a long way to improve employee
productivity
Belbin team roles
Findings
 Team roles needs to be defined and understood by team members, in order to preserve
time and ease decision making.
 Top teams members need to make sure they have though oriented people to help lead
the group.
 Selection of team members should be based on matching functional competence with
team competence.

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Strategic alliance
Finding
 Joint venture will help Namaste Solar penetrate new markets more easily while
reducing the disadvantage associated with new market penetration.
 New market such as California and Arizona, present huge opportunities which
Namaste Solar need to take advantage of.
Porter’s five forces
Figure 16: Namaste solar Porter’s five force analysis
Findings
Low threat of entrants
Need for high
investment and
product differentiation.
Low bargaining power of
suppliers
High number of
competitors and high
number of suppliers
coupled with possible
backward integration.
Medium bargaining power
of buyers
1- Products are mostly
undifferentiated
and brand loyalty is
weak
2- Lots of small
buyers and
switching cost of
customers is are
high
High threat of substitutes
Fossil fuel, wind power,
geothermal power, biomass
High Rivalry
Competitor
selling similar
products and
exist High
innovation
pressure

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35 Namaste Solar
 Having greater market share is possible, Namaste solar need to lower cost by efficient
employment of capital and human resources
 New competitor with much more differentiated services are holding important market
share
 Company needs to introduce more diversified product and services and differentiate
them.
Mckinsey 7S model
Finding
Internal elements Key analysis
Strategy
The main strategy is to maximise potential income for the
company.
Retention of key values- care for the earth, customer,
community and company.
Maintain an employee engagement culture as key competitive
advantage
Structure
Because of complex organisation structure level and slow
democratic decision process. So much time is wasted on
meetings and negotiations to attain vital decisions which affects
the company’s future.
System
Employee’s equal say in company operation and decision
making makes them feel important and work hard to attain
company’s mission.
Shared values
Clearly aligned set of values incorporated and promoted
Style
Working together with employees at each level of management
and sharing common values, help boost employee morale and

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 Soft elements are influenced by Namaste Solar culture and therefore difficult to
control
 Namaste Solar structure at times interlocks but they have control in the strategy.
CHAPTER FIVE
Proposedsolutionand recommendations
Strategic Management
facilitate participative style. Whereas, challenges arise when it
comes to making decisions in short period.
Staff Company’s unique business model, shared value and culture,
gained widespread recognition. To sustain this, company has to
hire only capable and promising candidates.
Skills
Company employees are equipped with the right technical skills
necessary to achieve organisational goals and produce excellent
workplace.

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Solutions for problem 1
 Namaste solar should use its strength such as its strong organisation culture and
expertise to explore the available opportunities.
 They could expand to order states with high demand for solar power and gain market
shares nationwide.
 The company could go for joint venture with other solar companies in other states, so
as to reduce cost and gain from the know-how of its partner.
Recommendation
 Accept option B (sale part of the company) to increase capital, which will help
capitalise on the opportunities available while keeping control of the company’s
values and culture.
 Build on customer loyalty to increase market share and introduce promotion.
Namaste solar should refer to low- cost and product differentiation strategy to achieve
competitive advantage
1. Differentiation strategy
Namaste solar could use differentiation strategy by offering distinctive products,
technological innovation and personalised services.
2. Value creation by cost leadership
Sourcing materials such as photovoltaic panel from much better value for money
overseas companies, ensuring that line capital and processes are optimise and efficient
use of human resources in an effort to transfer these advantages to the customers.
Recommendation
 Increase R&D spending to boost innovation of distinctive products or services
 Target broader markets such as Arizona, Texas and New York etc.
 Set up systems that will help achieve the low price strategy

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 Make changes to marketing strategy in order to influence consumers positively. To
achieve this company has to purse a detailed market research to understand and test
market for customer preference.
 Potential millions of clients can be reached through digital marketing on social media
channels at a cheaper rate.
Recommendation
 Increase advertising and consumer awareness on the benefits of green energy
 Use AIDA (Attention-Interest-Desire-Action) tool in promotional activities. This will
help the company be more effective in its marketing communication.
Preserving a company’s culture as it grows is a big challenge. The best way of doing
so is to institutionalise the culture hence it can continue to live on and thrive in a consistent
way.
Recommendation
 Hire employee who not only fit with the culture of the company but will also build upon
it with their passion and personality.
 Recognise and reward employees when necessary
 Establish customs which employees can look up to.
Employees’ burnout causes plenty of problems such as lower productivities. In the case
of Namaste solar the following points will be helpful;
 Namaste solar should build employees moral by organising company activities such as
snowboarding, soccer and baseball. These activities most be creative and fun.
 The company most ensure that each employee is in the position they feel most
passionate about and be willing to move skilled employees to different positions, if they
find it more passionate.
 Namaste solar has provide reasonable working hours to employees, allow for sick days
and paid time out.

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 When deadlines are unrealistic, the company has to provide flexible timetable and
change the deadline, so it can be attainable.
 Namaste solar has to encourage employees to alert managers when they suspect they
might be burning out or a co- worker is. This will help respond quickly to the situations.
Recommendation
 Management needs to consider training employees on certain skills which need to be
improved on such as stress management.
 Set up an Employee Assistance Program (EAP), which will act as a counselling service
for employees.
Solution of problem 3
Namaste solar can introduce both monetary and non-monetary incentives to maintain
employees’ importance. Monetary incentives will include profit sharing plans, cash reward and
mid-year rewards. Non- monetary incentive such as flexible work hours and training
opportunities. These incentives will help increase employees moral, employees’ involvement
and job satisfaction.
Recommendation
 Namaste Solar needs to introduce training and development scheme or program for
employees to help them grow with the company.
 Leaders of Namaste Solar have to show appreciation to employees when needed and
use communication to build credibility.
Solutions of problem 4
In an effort to save time, Namaste solar has to prioritize certain issues or challenges over
other and put in place a clear response channel.
Recommendation
 Determine a clear plan of action for problem resolving process and steps to take.
With increase competition in Colorado, Namaste solar can opt for joint venture as strategy
to gain new markets and thereby blocking or reducing competition threat. Joint venture is much

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cheaper to setup and they need to choose a partner that share same objectives and whose culture
are similar with that of the company.
Recommendation
 With the rapid changing environment, Namaste solar should seek for company with
compatibility in values, philosophy and goals. This will help reduce future problems or
changes.
 Define own alliance objectives and strategy before finding partner for strategic alliance.
After the analysis done by Porter five forces, porters generic help identify the strategies
to be implemented. Namaste solar should refer to low- cost and product differentiation strategy
to achieve competitive advantage
1. Differentiation strategy
Namaste solar could use differentiation strategy by offering distinctive products,
technological innovation and personalised services.
2. Value creation by cost leadership
Sourcing materials such as photovoltaic panel from much better value for money
overseas companies, ensuring that line capital and processes are optimise and efficient
use of human resources in an effort to these advantages to the customers.
Figure 17: Porter’s model of generic strategies
Source: (Porter 2004)
Competitive advantage
Lower cost Differentiation
Broad target
Competitive Scope
Narrow target
Cost
leadership
Differentiation
Focus

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Solution for problem 1
Selling part of the company will help raise equity and address the problem of capital
shortage while maintaining control of the company. This move will suit the company in teams
for its values and culture.
Implication for various stakeholders
The solution offered in this paper allude from different areas of business affecting various
stakeholders. Namaste Solar passes positive changes to its stakeholders.
OWNERS
Implementing the strategies suggested will increase market share and as well maximising
interest for shareholders and stakeholders too. Option B (partial selling) will increase the
number of shareholders with capital necessary for the company’s growth.
MANAGERS
Managers, will have added obligation to attempt and convey the organisation’s business
effectively by implementing the changes under the guidance of owners.
EMPLOYEES
Namaste Solar employees will profit from training and development programs to upgrade
their professional skills to exceed expectation in their career. They will be stimulated by fair
incentives, compensation and assistance needed to deliver better customer experience.
Proposed business plan
The business plan is proposed for the next 4 years to ensure success and growth for Namaste
Solar;
Limitation

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As the study was an exploratory type, which required abundant amount of time to
investigate the subjects to comprehend the problems and to identify the right response to those
problems. Time wasn’t much available but the knowledge gained from previous MBA semester
one and two made it possible to pursue the study without much difficulty within due time.
Resource availability and constraints
Namaste Solar need to build on its resource capability such as employees ownership,
cooperatives & democratic workforces and brand. The company now has a valuable brand
which needs to be used proficiently. Insufficient financial resource for proper expansion can
be resolved by injection of capital from investors.
CHAPTER SIX

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Introduction
The goal of this section is to utilise the learning gained from chapter one to five to First
Solar, Inc. (solar industry) a dominant company in solar industry. The company was selected
based on careful study of the company background and current position in the market.
However, based on secondary data, First Solar’s stock has gained popularity among investor
due to the company’s outstanding performance. However, despite First Solar’s good
performance, no company is without flaws. Based on the conclusion of secondary research,
First Solar also have some weaknesses and this chapter aims at outlining the key business
problems and analysing them with models.
A section will be dedicated to the transfer of learning gained from Namaste Solar case
company to First Solar. Though both companies belong to same industry and different in
technology used technology but there are significant management theories and strategies that
are common and can be used by both. Conclusion and recommendations will be offered at the
end to complete the report.
Company Background
First Solar, Inc. with headquarter in Tempe, Arizona, started in 1999 and today has a
workforce of over 4000 workers. The organisation provides solar energy solution around the
world and it operates through two segments; Component and Systems. They have as objective
to become competitive where traditional power marker has driven cost of energy per watt
below a dollar, making solar power a viable choice for the future (kamenetz, 2010). Through
their integrated Solar panel power solution, First Solar provides and economically attractive
alternative to fossil fuel power. The mission of the company is simply; ‘a world powered by
clean, affordable energy’’ (First Solar, 2012).First Solar’s strategic objective is to the cost of
solar electricity to levels that compete with peaking traditional energy. The company is socially
oriented too and has partnered with local and non-profit organisation to develop and support
their initiatives by donating equipment, funding, training and job creation (First Solar,
2012).According renewable world, First Solar was the largest solar provider in USA in 2009
(Renewable Energy World.Com). Despite the success, there are some malfunction in the
business that are formed as problem in the next section.
Business Problems of First Solar Inc.

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The purpose is to analyse business issues, challenges and proposing solutions to overcome
them and create successful business strategies.
Strategic Management Problem
1. A LACK OF CLARITY IN POSITIONING
Despites First Solar’s genic cost leadership, the company’s solar panels are not as efficient
as the silicon solar module product by the Chinese and they cost less compared to First Solar
panels. More to that, First Solar was more of resource oriented through its merger and
acquisitions, for example the acquisition of NextLight Renewable Power, LLC for
$285million in 2010 (Kann, 2010).This leads to the need for a new strategic position.
2. IDENTIFY THE THREATS AND OPPUTUNITIES IN THE BUSINESS
ENVIRONMENT
The solar industry keeps changing and attracting new players which reduce the profit
margins of First Solar. To be able to react according, Firs Solar need to understand the macro
environment in which it operated.
1. OVERWHELMING INTERNAL AND EXTERNAL COMPETITION
The solar energy market keeps growing and this growth attracts more competitors for First
Solar. The competition is both domestic and international and they both manage solar projects
which is similar to the business functioning of First Solar.
Problem analysis using relevant models
The goal of this section is to present relevant solutions for problems observed above. These
solutions will be on business concerns and future strategic directions will be provided to help
the firm succeed in its business portfolio.
1. SWOT Analysis

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45 Namaste Solar
Strength
1. Strong investment in R&D.
2. Obtained Economies of scale
3. Use of unique technology
4. Vertical integration across
solar value chain
Figure18: SWOT analysis of First Solar
Strength
 R&D expenditure has been increased significantly each year to help produce led –tech
products for the company. According to First Solar, 2015, R&D expenditure increase
by almost $100million and this represents a 3.4% per net sales in 2014. (First Solar,
2015).
 Economies of scale helps First Solar reduce average cost of manufacturing from
roughly $3/W to $1/W and by 2013, First Solar had achieved a manufacturing cost of
59cents per watt (Ayre, 2013).
 First Solar uses CdTe technology in its solar panel construction. This technique is
unique and has a lower manufacturing cost.
Weakness
 First Solar wasn’t spared from structural imbalance between supply and demand caused
by the rapid growth in solar industry. Its greatest problem has been the inability to
efficiently meet market demand.in 2011, First Solar was unable to produce the amount
of energy need that year though it has a production capacity of 2.367 megawatts
(Wesoff, 2012).
 First Solar has always focused on markets with government subsidy and this subsidies
have played a key role in solar industry. However, some of this markets or countries
Weakness
1. Structural imbalance challenges
2. International competition
3. Government subsidies
Opportunities
1. Growing PV market
2. Opening in foreign markets
3. Political power to influence
policies
Threats
1. High competition
2. Volatile commodity prices
3. Low intellectual property.

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has started to reduce government subsidies. For example in Germany, reduction in
government subsidy let to a fall in demand for solar energy.
Opportunities
 Photovoltaic markets keeps growing and emerging markets such as Chile, Brazil and
India are promising markets for the future of First Solar. All these countries have
growing energy needs which First Solar can explore.
 With the reduction in government incentives to invest in solar energy, western countries
markets such as US, Germany and France are beginning to slow. Future opportunities
lie in countries such as china and the Middle East. This represent opportunities for
expansion and diversification of revenue sources for First Solar.
Threat
 According to lead analyst of North America Solar, Nathaniel Bullard, the solar energy
market has had a 40% compound annual growth rate of new build since the 1970s and
saw 140% growth in 2011 ( Bloomberg, 2011). This is s treat because the industry
develops further, competition grows and develop too. First Solar has to be innovative
and remain changeable, so it rise up to the challenges of the future.
 Some of First Solar’s, patents are still unprocessed and this is a threat since the company
really heavy on its success trademark and trade secrets. A leakage on trade secret which
are not patents could seriously disrupt the business ability to perform.
2. PEST ANALYSIS
Political factors
The government has invested much in renewable energy with an effort to reduce
greenhouse gas emissions. Some of the political actions includes new policies, tax
incentives and legislation which help promote growth in renewable energy.
Some recent political development and legislative in the US includes the American
Recovery and Reinvestment Tax Act 2009, Emergency Economic Stability Act of 2008
and the Energy Improvement Extension Act (IEA, 2010). With the main aim of making
solar energy cost-competitive with conventional forms of energy by 2015, President Bush
launched the Solar American Initiative (SAI) in early 2006 (IEA,2010). Some Tax
incentives include the Emergency Economic Stabilization Act of 2008 and Energy

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Improvement Extension Act, which both extend existing tax credit for renewable energy
initiatives (IEA, 2010). The US government has also imposed a percentage of energy use,
which has to come from renewable sources under the Clean Air Act (IEA, 2010). This has
boosted the demand for renewable energy.
All this initiatives has helped foster growth and development in renewable energy. The
political success can only be possible through economic stability and strength.
Economic factors
Economic growth and stability has a direct and positive impact on the renewable energy
industry. The recent economic recession of 2008 had a detrimental effect on the growth of
renewable energy industry. Certain macro-economic indicators such as GDP,
unemployment rate and price indices have an impact on renewable energy industry.
According to the United States Bureau of labor Statistics there has been a continuous
drop in employment, national employment rate was 8.8 percent as of March 2011, down
from 9.6 percent in 2010 (B.L.S., 2011).
Social Factors
Population growth and environmental awareness are external environmental aspects of
social factors. There are two forces which influences the growth of renewable energy. They
include increasing energy demand and increasing environment concerns. There is a
growing interest on environment issues such as deforestation, global warming, climate
change and stability of delicate ecosystems. This has led to movement such as ‘‘going
green’’, which is a trend in the US to help educate and great awareness on renewable
energy. The media is playing a big role as well by creating programs on how economic
activities affects the environment around us.
As the world’s population keeps growing, the demand for energy keeps growing too.
Fossil fuel is infinite and therefore, as demand continues to grow and supply decreases, this
lends to an increase in prices for gasoline which creates shock waves through society.
Additional demand from developing nations has continued to rise fossil fuel prices, this has
in return created an interest in finding alternative energy sources to support daily life.
Technological factors

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External technological factors includes research and development, rate of technological
change and application of inventions and ideas. According to the Solar Energy Industry,
there is a rapid development and increase in solar energy technology (Solar Energy Industry
Association, 2011). These new industry technologies includes solar cooling systems, thin-
firm PV applications and incorporating PV systems into roofing materials (Solar Energy
Industry Association, 2011). Furthermore, there is an aggressive pursue for future
technology by research and development such as nanotechnology, solar hybrid lighting and
thermal storage system (Solar Energy Industry Association, 2011). Technology
developments have help advancement solar energy, strengthen solar energy consumption
and improve manufacturing equipment enabling low cost production.
3. Blue ocean Strategy
Red ocean strategy Blue ocean strategy
The exist high competition with over 20
companies producing photovoltaic panels
in the worlds
Was behind the thin-film solar panels
(Cadmium telluride solar cells) and hold for
module efficiency at 14.4%.
First solar is among the top10 worlds
manufacturers of solar panels though their
market share keeps falling due to cheaper
Chinese productions.
Highly competitive market and no
approach developed to make competitor
irrelevant.
First Solar compete for market shares in a
high rivalry industry and this has brought
about convergence leading to red ocean
strategy due to high competition and
financial losses.
The company’s marketing and product
strategy aligned to the whole system of low
cost.
Transfer of learning

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49 Namaste Solar
This area is committed to the transfer of learning and findings from the analysis directed
on Namaste solar case to First Solar Inc. With a specific end goal to comprehend the transfer
of learning and findings, a framework is created to give an auxiliary outlet to the use of findings
as demonstrated below.
Figure 19: transfer of learning from Namaste Solar case company to First Solar Inc.
The above outline demonstrates a practical view of execution of findings between two
organisations irrelevant of their domain. The accompanying are thoughts which were gained
during writing response to Namaste solar case study to tackle First Solar Inc. business
problems.
1. TRANSFER OF NAMASTE SOLAR STRONG EMPLOYEES CULTURE
Both companies have are dedicated to building a strong organisation culture. However,
Namaste Solar is well known for its strong employees’ culture, which is among its core
values and a means of competitive advantage. First Solar employee feels that the company
is not loyal to them and don’t provide enough job security. To resolve this, First solar needs
to improve company culture and align companies competences with its core values to create
the culture the company needs.
2. TRANSFER OF NAMASTE SOLAR DEMOCRATIC WORKPLACE
Namaste Solar has received several awards in regards to the company’s unique work
environment such as the WorldBlu’s Most Democratic Workplace (2010- 2014)
(namastersolar.com). The company applies democratic practices such as participation
decision-making system, voting and debate in the workplace while First Solar has a chaotic
but productive workplace. Democratic workplace practices help create happier employees
Namaste Solar Case
Strategic
Management
Human Resource
Management
International
Business
Financial Analysis
and Management
Organisation
Behaviour
First Solar Inc. Case
Company
 Strong employees
culture
 Democratic
workplace
 Low cost strategy
 R&D and market
research
 Merger and
acquisition
Analysis, findings and
management concepts
transferredtoFirstSolar

Page. 50
50 Namaste Solar
which in return increases productivity and this can be applied to management in First Solar
business to increase employee’s productivity.
3. TRANSFER OF FIRST SOLAR LOW COST STRATEGY
Although, Namaste Solar is widely recognised and has received awards for its innovative
business model, the company can gain from First Solar’s low cost strategy. First Solar was
able to break $1 per watt, in 2008 by manufacturing at the lowest cost. This led to the
company being the low-cost leader in the photovoltaic industry.
4. TRANSFER OF FIRST SOLAR R&D AND MARKET RESEARCH
First Solar is well known for its R&D laboratory and allocate more financial resources to
the department. This has led to the development of new products such as the high-rate
vapour transport deposition process (HRVTD). The process is at the heart of First Solar’s
mass manufacturing line which produces thin-film photovoltaic modules. Onthe other hand
Namaste Solar needs to invest more on market research and development like First solar to
gain meaningful insight.
5. TRANSFER OF FIRST SOLAR MERGER AND ACQUISITION
Bothe companies are fighting for market shares in highly competitive markets. New
product development requires time and cost so much, therefore both companies can move
to merger and acquisition to grow market shares. First Solar has acquired companies such
as NextLight in 2010, which was a leading developer of utility-scale solar projects in the
southwestern United States. Such acquisitions has help diversify First Solar’s portfolio and
increase its presence in the renewable energy industry. Whereas, Namaste Solar lacks funds
and right strategies to merge or acquire other companies.
Solutions and Recommendation
For Problem 1: competitive positioning
First Solar has to keep a close look at its competitors then differentiating its offering and create
value for its market. The solar panel industry keeps growing and attracting new supplier which
are using same low-cost method to attract customers and gain market share. First Solar has to
identify a spot in the competitive landscape and put in efforts to winning the marketplace. As
soon as First Solar’s offering is different from that of its competitors, it’s much easier for them
to influence the market and win market shares. First can as well use advertising by referring its
competitors advertising strategy as a base to show its differentiation to potential customers.
For Problem 2: Diversification of industry scope
First Solar has been outperformed by competitors in renewable energy industry and this is one
of its most significant threats. To overcome this, First Solar has to invest more in research and
development or diversify its industry scope to other alternative renewable energy. To do so
First solar needs to acquire or merge with other large alternative energy companies. An
example could be an acquisition of a wind company, this is because a mergence between both
a solar and wind power company is infeasible as they are direct competitors.
For Problem 3: Geographical expansion

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51 Namaste Solar
First Solar has to expand into countries which they currently are not present or have small
presence in. Countries such as Russia, China, Australia, Saudi Arabia and Brazil creates great
opportunities for any solar company. The all have increasing demand for energy to and First
Solar can join this markets and start competing for contracts.
Conclusion and Recommendation.
Through the analysis, First Solar has been appreciated for its innovation and bring innovative
product to the market than any other competitors. The company’s expenditure on R&D has
given them a cutting edge in the industry. The company has produced the most effective solar
panel in the world (thin-film) and uses the CdTe technology in its solar panel construction.
This technique is unique and has a lower manufacturing cost.
Despite First Solar’s innovations and low cost strategy the companies keep losing market
shares to its competitors. The analysis done, shows the problems affecting the company from
strategic management to international business. The company needs to take into consideration
the solutions provided if they want to remain profitable and competitive.
First Solar has to continue its expansion into emerging markets, invest in R&D to address
the solar module intermittency, lobby for renewable energy credit and leverage its intellectual
property rights. For the practical growth of an individual, transfer of learning has proved to be
very successful and matters the most.

Page. 52
52 Namaste Solar
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