Economics analysis of Suzlon Company
Market share valuation
Vestas wind is a leader in this business a fact attributed to its significant presence both on local and global scale. Diversification into the two main segments is associated with big economies of scale allowing enterprises to diversify further in production and concentrate on venturing into new markets (Watts and Chapman, 1982).
Figure 1: Global Market share held by wind power companies.
Cash flow analysis
Suzlon Company seems headed for robust financial times; the above analysis indicates that generally, for the past five years the company has been experiencing a growth rate of 23% in profit before tax figures. This could be attributed to the fact that over the past few years the company tried maintaining low level of expenditures and increasing income (Watts and Chapman, 1982).
Figure 2: Cash flow analysis.
Table 1: Analysis based on Technological, Organizational and Personal perspectives
Gap of this case study
The case study is deficient in provision of adequate briefing about organizational culture at Suzlon and how it would be affected when the organization goes global. Culture could be referred to as an integration of human societal beliefs and knowledge. Work culture is a great compliment to business operation and performance.
It is believed that good work culture is a critical prerequisite for an improved organizational development. Management of organizations which are in the process of transforming towards global scale is usually faced with tasks such as adoption and integration of inherent work culture on global level for performance driven business.
It is stated clearly that in the ever dynamics of the business world, flexibility in work culture has to be embraced for the purposes of meeting local specifications so that it could not act as a hindrance to company’s performance (Bruno and De Souza, 2009).
Additional considerations
The current problem at the institution is flexibility in embracing demands of both local and global clients through provision of dedicated central management accounting system.
Locally, the organization has thrived due to their strong association with social values, tradition and systems of the immediate environment. Application of six sigma principles in organizational culture is recommended for (Fontaine, 2007) business which is undergoing transformation process from local to global status.
The purpose is provision of training solutions with large avenues of transforming duties in management structure, being largely driven by diverse consumer needs. It is critical for a transforming company to make decisions based on analysis of site, specific conditions of a market, offering efficient management strategies used in driving profits and revenues towards new levels.
The solution for this is selecting competent management personnel as future leaders, who are capable of integrating systematic new work culture change without causing shocks within business operations through well laid transformational process.
Delegation of a global account at suzlon
In designating a Global Account Management, suzlon requires a three tier framework. The first tier comprises global accounts (Customer orders and payment, Customer support and care and Personnel management) managed according to categories related to Global markets, so that customers are categorized to achieve economies of scale (Watts and Chapman, 1982).
Second tier comprises regional management of accounts while third tiers have site specific accounts for specific areas of business operations as shown in figure 3 below.
Figure 3: Proposed Global Account Management for Suzlon Company.
Management at GAM
The GAM should be headed by a Chief Executive Officer whose functions are to direct and implement strategies for the business as provided for by the management board.
Directly under him/her are the global account managers whose mandates are coordinating and executing management of global accounts to whom regional mangers report to. At the very end are site managers who are critical in providing tailor made solutions for local customers.
In resolution of conflicts, personnel managers at each tier will be mandated to execute settlement of conflicts specific to each area of operation (McNeill, 2009, pp 12-29).
Rolling out GAM
GAM should be rolled out limited to specific customers, covering more of them over time. This provides time for management to be tandem with the use of the system gradually and also to cultivate new work culture among the employees avoiding the unnecessary burden of shock in work culture. Lastly this process will allow feeding of relevant data at specific tier of GAM management (McNeill, 2009, pp 12-29).
References
Bruno, F. C., & De Sousa, P. O., (2009). Organizational Culture: How to Measure it – A Case Study. Brazil: Nova Lima.
Fontain, C., (2007). Six Sigma’s Contribution to Organizational Culture. Berlin: Northeastern University, Print.
McNeill, R. G. (2009). The Go-To-Market Frontier: Global Account Management (GAM). Journal of Global Business and Technology (1), 12-29
Watts, J. M., & Chapman, R. (1982). Engineering Economics. Washington DC: National Institute of Standards and Technology