Exam Notes - Strategic Management Analysis Essay - 2

Exam Notes - Strategic Management Analysis - Essay Example The stakeholders are important to the firm primarily because they check the actions of the company to ensure that the company serves their interest. They can influence decisions or exert control; the level of control or the extent of influence would differ depending on how much the stakeholders are interested or involved in the firm (Besanko 2010, p. 33). Governments could also offer rebates on electric vehicles. For instance, Israel usually taxes internal combustion engine (ICE) vehicles at 70%, but agreed to tax electric vehicles at 10% until the year 2019. The United States, as of the year 2010, offered rebates that ranged from $3,200 - $7,500 depending on the capacity of the battery. In Denmark, rather than the 180% ICE tax, consumers would be able to buy electric vehicles at 0% until the year 2015 (Etzion & Struben, 2011, p. 16). Workers have an influence in that they could take an industrial action to persuade the company to do as they wish; and venture capital companies could vary the credit period and amount of credit to Better Place. Stakeholders can best be influenced through effective communication with them. For instance, clients can be informed about the products and services of Better Place and be persuaded to use them. By judging the company, stakeholders essentially provide valuable suggestions, views and opinions and help in shaping the firm’s project and activities concerning its business of electric vehicles. Threats stakeholders pose: threat of consumers refusing to buy electric vehicles; governments not supporting the project of launching electric vehicles; threat from the competition. Opportunities: huge potential market for electric vehicles; working with key utility firms such as Hawaii Electric Company, Israel Electric Corporation and Toronto’s Bullfrog Power to invest in renewable energy and building recharging networks linked to the grid (Etzion & Struben, 2011, p. 16). Renault-Nissan is committed to provide cars that ar e compatible with the infrastructure of Better Place. Level of interest Low High Low Power High 2 Industry analysis and scenarios The company committed itself to using clean electrons emanating from renewable sources. Agassi held the belief that the firm would have the capacity to buy electricity inexpensively from renewable sources and the cost of driving an electric car would be less than or equal to that of driving an ICE vehicle powered by gasoline (Etzion & Struben, 2011, p. 8). Scenarios for the future are as follows: Using renewable energy for electric cars Technology failing Technology succeeding Public acceptance Public rejection Porter’s 5 forces; supplier power, buyer power, threat of substitutes, threat of new entrants and rivalry are used as a model for industry analysis. Threat of new entrants: threat of new entrants to the electric vehicle industry will serve to reduce the profitability of Better Place as it operates in the industry. However, the high capital r equirements necessary serves as a vital barrier to entry. Supplier power: Powerful suppliers, including the manufacturers of electric vehi