Suzlon Energy Inc.
Suzlon Energy Inc. is a global corporation that is the fifth largest wind energy company in the world. It was started in 1995 when a textile company in Surat bought two wind turbine generators to help reduce the amount of electricity used and ensure its steady supply when there is no power. This led to the beginning of the wind energy business in India. Over the years, Suzlon’s biggest customers began to make their operations global and thus required consistent sales and terms of service across countries. However, this was a great challenge to the General Manager of Sales, Ravindra Utgikar because global accounts were new concepts in the industry of wind energy. This challenge was despite being convinced of the advantages of a global account management (GAM) from a GAM workshop he had attended (Chandrasekhar 1).
Ravindra Utgikar will have a difficult time trying to convince the board of the company to establish the GAM system in the company. This challenge is mainly because majority of annual sales have been from Indian customers apart from the previous year when sales from international customers made up half of the annual revenues. There is also the challenge of the GAM concept being very new in the wind energy businesses all around the world. There are also critical growth issues being faced by Suzlon. Thus, Utgikar will have to present his case strongly so as to get approval from top management (Chandrasekhar 2).
Global account Management strategies involve moving beyond the borders to other countries where important clients are operating. GAM involves coordinating and interacting with other countries while domestic account management involves coordinating functions within one country. Top executives are more involved in GAMs as they involve dealing with the international community (Shi, White, Zou and Carusgil 621). In my opinion, it is because these executives are better trained for and experienced in handling international customers. GAMs work best by taking into account the quality of information being exchanged with the customer rather than the amount. Quality information promotes better account management as customer and service provider needs are achieved ensuring continued business relations (Birkinshaw, Toulan and Arnold 246). This means that clear communication lines need to be established and a platform needs to be created for exchange of ideas and negotiations.
The wind energy business began after the oil crisis in 1973 that led to seeking of alternative sources of energy. Wind energy seemed like a good option because it was free of pollution risks. The Kyoto Protocol of 1977 where countries signed a contract promising not to engage in any environmental damaging activities and the Renewable Portfolio Standard that was an agreement to get power from renewable sources, promoted the establishment of the wind energy industry. However, activists of wildlife explained that wind turbines were disastrous to birds and bats as they killed them when they went out hunting. Wind turbines were also said to cause noise pollution, interference of natural habitats and reduction in prices of lands close to wind energy production stations. Wind energy supporters counteracted this by saying that wind energy was the solution to global warming which is the number one cause of death of birds and its goal is to address issues of the ecology (Chadrasekhar 4).
Suzlon Energy Inc. began later than some wind energy companies but quickly rose in rank by being innovative and filling market gaps which is quite impressive. They made their equipment locally rather than importing it which was better because it was manufactured in relation to the wind conditions of India. They offered clients complete solutions, achieved economies of scale, and made turbines with large capacities as well as for harsh climates. Soon, Suzlon Energy Inc. became global attracting even international clients due to the attractive deals they offered their customers (Chandrasekhar 9). GAM would be a step farther in strengthening relations with clients.
GAM was very important to Suzlon as it had not yet been established in India giving Suzlon the upper hand on their competitors. Therefore, Utgikar had to find a way to convince the board why they should establish the GAM program in their company. Formulating a standard contract for all clients whether local or international could help launch the GAM. Also, the standardization of products globally and documentation would save time for buyers and sellers because primary data would not have to be collected. These activities would promote quality global account management. GAM required a GAM manager who would manage specialists of GAM thus preventing discord in the management of global accounts. Also GAM would ensure the consolidation of business units and international subsidiaries (Chandrasekhar 11).
In conclusion, the GAM program would contribute positively to the company growth getting ahead of its competitors. Its merits and contribution towards the expansion of the company would surely convince the board that it is a program worth starting in the Suzlon Company. Being that Suzlon is known for being full of creative ideas, GAM will help in opening a new chapter for Suzlon that will take it to great heights and probably even make it the best wind energy company in the world. Use of wind energy enlightens us on the importance of using renewable resources to avoid pollution and ensure ecological health. It is important to keep the environment safe and uncontaminated.
Works Cited
Birkinshaw, Julian, Omar Toulan & David Arnold. “Global Account Management in Multinational Corporations.”Journal of International Business Studies 32.2 (2001):231-248.
Chandrasekhar, R. Suzlon Energy Inc. Ontario, Canada: Ivey Management Services, 2009. Print.
Shi, Linda H., White Chris, Zou Shaomind & Carusgil Tamer. “Global Account Management Strategies: Drivers and Outcomes. Journal of International Business Studies 41 (2010): 620-638.
