ENERGY INNOVATION AND ENTREPRENEURSHIP 4
EnergyInnovation and Entrepreneurship
EnergyInnovation and Entrepreneurship
Theenvironment has drawn intense concern in the recent times. This mayhave been triggered by the increasing need for sustainability andmore profitability, coupled by the realization regarding thelimitability of the resources that are at the disposal of humanbeings. In essence, it has become imperative that measures aredevised to enhance environmental sustainability particularly withregard to stabilizing the energy resources. Given the increasingdependence on energy, researchers have come up with cleaner sourcesof energy such as wind, solar and geothermal generating plants thatallow for the renewability of the resource in the long-term andshort-term thereby reducing the dependence on non-renewable sourcesof energy. It is noteworthy that a large number of such projects arelocalized to particular regions. While this is a step in the rightdirection, ensuring the global expansion and adoption of thesetechnologies goes a long way in enhancing environmentalsustainability across other regions.
Ininstances where a local level technology think-tank seeks to enhanceits application on a global scale, there are varied models orstrategies that it could pursue. Key among them is seeking alliancewith other localized entities that are in the same field. This wouldallow for the entity to hit the ground running and utilize thealready established infrastructure to expand its services in otherparts of the globe (Hill, 2013). On the same note, there is the addedopportunity that comes with the increased amounts of resources, bothfinancial and human, emanating from the pooling together of theentities to make a combined entity. However, there are variedproblems that come with alliances with other players in other partsof the world. Key among them is the decreased control over theactivities of the entity and the decisions that are made. More oftenthan not, parties in a merger or alliance tend to have equaldecision-making capabilities in the locations where they expand(Hill, 2013). However, unlike in the previous times whendecision-making would be carried out by a small group with similarideas and missions, alliances increase the number of parties thathave to undertake the decision-making process. This slows down thepace of decisions and could impact the profitability andsustainability of the entity in the long-term.
Thealternative, however, is to acquire an already established entity inthe regions where the entity seeks to expand. Acquisitions often havesimilar pros as the mergers with the only exception being that therewould not be an increase in the resources that are needed so as toimplement the expansion. Nevertheless, acquisitions are usually madeon entities that have already established networks, with the newowners having the capacity to exercise full control over theactivities of the newly acquired entity. On the pros side, theconsolidation of entities allows companies to have a proportionatemarket presence, as well as power to get hold of the leadershipposition (Hill, 2013). Similarly, acquisitions allow entities toincrease their profits and cut costs through leveraging the sheermagnitude of the resultant organization. Nevertheless, acquisitionsoften mean that there would be a reduction of resources to bededicated to the achievement of the entity’s goals. More often thannot, individuals in the acquired entity resign, thereby leaving ashell entity particularly in instances where they had an emotionalattachment with the same (Hill, 2013). This may interfere with thefunctioning of the entity in the short-term and, therefore, itsachievement of its goal.
Hill,C.W.L (2013). GlobalBusiness Today: EighthEdition. New York: McGraw-Hill Higher Education