Introduction
AES Telasi is a power distributing company situated in Tbilisi, Georgia. The firm prides itself in being responsible for the modernization and restoration of Tsibili’s electrical grid. Despite the political dark image that dented the management of the company in 2004, the company still remains afloat with quite valuable assets. Indeed, by the time it exchanged hands in 2003, its net worth was 34 million US Dollars. The company however still faces a couple of country and project risks.
The first and most threatening of the risks is the economic risk. This factor has dented on the company’s image a number of times including its time of sale in 2003. Apparently, the company’s debts had hit the 60 million US Dollar mark. That led to the company owners having to sell it at a mere 34 million to cut their losses. The economic risk factors can be analysed both internally and externally. Internally, the company faces mainly the workforce and employment risk. With a great population under its payroll, AES Telasi can only hope that it never liquidates assets to pay employees.
Externally, the economic challenge that must be addressed in the company is the foreign investment question. The decision on whether or not to expand abroad remains a point to ponder about. With the Russian owners Inter RAO AES at the helm, this only becomes a question of when and not whether this will happen. The only issue is whether the company has the liquidity and asset presence to attempt such a daring venture. With private investment and strategic growth plans however, the company is more than capable of mounting a venture into the unknown.
On a positive note, some of the factors that could be risks for the Georgian firm have been the stronghold in the firm. Competition for instance is not a factor the company needs to worry about. In the state of Georgia, the company’s brand name is well established and respected. This explains why it has managed to remain afloat even in challenging times and periods that characterise its past reputation. Besides, there is more than ample market space for a power-driven country such as the United States of America.
The PESTEL analysis of the United States of America reveals that her political strength offers the most favourable stability for investment. The US also has the adequate technological capacity to support the operations of AES Telasi in any state the company opts to expand in. The only factor that would raise eyebrows about some states is the unpredictable and potentially lethal weather conditions. States like San Francisco and New Orleans have in the past been hit by strong hurricanes and tsunamis. Such vagaries of nature will to a large extent affect the company’s power grid.
The state of Georgia has a great number of opportunities for this company. Its contribution in Tsibili would definitely be appreciated in other cities and towns as well. The remote regions of Mtskheta, Gori and Kazbegi would be great investing areas. In the centre of Georgia, the western region of Clochis, Racha and Imereti would be great investment targets. The state has great deal of untapped opportunities in the energy sector. By taking advantage of these, AES Telasi would go a long way towards developing its asset base.
Conclusion
Not only does electricity provide the basis for development in businesses and other commercial ventures in the United States, but it is also the one component most Americans cannot do without. That given, AES Telasi would definitely find ready markets in regions that require electrical installations and power maintenance. With the country’s electricity grid covering every state, AES Telasi services will be required in a great way. This is the market opportunity that awaits the company in the United States of America.
Works Cited
Grant, Robert AES Corporation: Rewriting the Rules of Management http://www.blackwellpublishing.com/grant/docs/17AES.pdf.
