[Padau Wave Power Enterprises]
Business Plan
Using Wave Power to Generate Electricity in Saudi Arabia
Introduction About the business
Turning calamities into business opportunities is Padau Wave Power Enterprises’ next big project. Padau Wave Power Enterprises operates in a region that is chronically known to for strong waves that mostly wreak havoc anything on their way. Tapping the waves to produce energy is certainly a brilliant idea that Padau Wave Power Enterprises seek to venture into for a number of reasons. Firstly, the energy yielded will add to Saudi Arabia national grid in a sustained manner considering that wave power is renewable; its utilization does not translate its exhaustion. Secondly, being a renewable source of energy, using of wave power to generate power will translate to sparing of the rapidly diminishing means of generating power. Finally, tapping wave energy will lead to a reduction of wave’s damage on the natural and build environment.
The Padau Wave Power Enterprises’ is funded by both the public and private means. This is because its operations touch on diverse aspects with regards to the environment as well as the economics of Saudi Arabia and the Arab region in general. The project will benefit the Saudis in a tremendous manner.
With the division of labor and compartmentalization, each area will be handled by a specific department to ensure that an ideal business decisions are arrived at (Durkheim, 2014). Just like in past undertakings, cooperation will be required to ensure proper passage of information from one department next.
Business Plan Summary
The Wave Power Program is a mega project. There is no doubt that it will succeed for various reasons including a large capital base, managerial economies of scale and availability of up-to-date technology. With regards to a large capital base, Padau Wave Power Enterprises is owned by Shirai Investment Company with a net worth of $2.5 billion. Various projects that have been funded by Shirai Investment Company are highly profitable because of the high investment right from the start. With a wide capital base, Padau Wave Power Enterprises has conducted studies over the past decade with regards to the technology, cost, manpower and profitability of the business. Put differently;Padau Wave Power Enterprises is not trial and error undertaking. Padau Wave Power Enterprises also enjoys better managerial economies of scale.
Both macroeconomists and microeconomists agree that the price of a commodity/ product or service is one of the main factors that influences the decisions made by the consumer, however, this may not be the only factor. At times, it may not be the deciding factor. In the application of microeconomic principles, it is assumed that all the other factors are constant while the price of commodity rises, the demand for that product will fall (Kilian, 2006). Conversely, demand increases if the price is lowered. Basing on the pricing concept, microeconomics can forecast with precision on what consumers are likely to buy and even the quantities to be bought. Padau Wave Power Enterprises is venturing into the project with a full understanding of managerial economies of scale that awaits them thereby raising the possibilities of success.
Vision Statement
Turning calamity into opportunity
Overall Goals
The goals of Padau Wave Power Enterprises are anchored on various distinct projects that are interrelated at some point because of the support they have for each other. These areas are: development of policies, capacity development, management of knowledge and skills, creation of interest and awareness and finally creating an investment plan
Mission statement
This mission can be achieved by developing policies, capacity development, management of capacity, the creation of interest and awareness that are necessary for creating an investment plan.
Goals/objectives
Activities: hire policy makers, seek opinions of people and seek government collaboration.
Activities: educating both the public and the workforce on the undertaking of Padau Wave Power Enterprises program.
Activities: Creating a budget, sourcing for funds, hiring and training of personnel
Business Details
Padau Wave Power Enterprises centers its main business ideas on turning calamities into business ideas. Wave power is a risky business undertaking; however, the company has done careful considerations and has found it a worth undertaking. It major product is energy generated from wave power. It is major customer will be Wahah Electric Supply Company of Saudi Arabia Wahah Electric Supply Company of Saudi Arabia (WESCOSA) which is tasked with supplying electricity in Saudi Arabia. The annual national demand of electricity is 8,161.20 kWh per capita; this is higher than most countries such as Egypt and Syria (Electric Power Consumption in Saudi Arabia, 2016). The demand keeps rising over the years due to rapidly expanding the middle-class population.
Benefits and risk management analysis
One of the biggest benefits of Padau Wave Power Enterprises is its size. Its mother company is one the largest companieswith respect to market share and capital base. As noted earlier, it has a net worth of over $2.5 billion. It offers a variety of products. This makes the company very versatile in the ways it can appeal to customers from various demographics. Secondly, the company is always focusing on developing new and better flavors for products and finally, Padau Wave Power Enterprises enjoys a good relationship with consumers that can help in the marketing of its products because it is already a household name.
Risk Management
Support of the Green Environment
The project utilizes a green source of energy. There is no emission of greenhouse gases to the atmosphere. This will help shield society against climate changes. This can be realized through the stabilization and reduction of greenhouse emission into the atmosphere the various other ways of generating electricity. This can be done in various ways; 1) combining emission controls mechanisms with carbon sequestration strategies through capacity building and 2) enactment of controls aimed at lessening the amount of greenhouse gases that are emitted from buildings and by opting for measures that utilize renewable sources of powering the turbines (Meinshausen et al., 2009).
Environmental/resource impacts
With the use of wave power, petrol and harmful sources of energy will be used less often. This will downscale the amount of greenhouse gases and the subsequent global warming. This will encourage the demand of the product even more.
Strategies
Action Plan
The market
Market targets
The primary target is the domestic users. As notes earlier, the average Saudi uses about 8,161.20 kWh annually. Our major aim is to contribute half the average per capita consumption by the end of 2017 and by two-thirds by 2020.
Conclusion
Use of wave energy has a lot to offer. As evidenced, it can improve the general wellbeing of a human with respect to addressing global warming by scaling down a number of greenhouse gases emitted. In addition to that, it can cut down the cost of electricity since wave power is free. The harnessing of the wave, though challenging is an exciting undertaking that enjoys wide spread support from people from all walks of life.
References
Durkheim, E. (2014). The division of labor in society. Simon and Schuster.
Electric Power Consumption (Kwh Per Capita) in Saudi Arabia. (2016). Tradingeconomics.com. Retrieved 13 May 2016, from http://www.tradingeconomics.com/saudi-arabia/electric-power-consumption-kwh-per-capita-wb-data.html
Kilian, L. (2006). Not all oil price shocks are alike: Disentangling demand and supply shocks in the crude oil market.
Meinshausen, M., Meinshausen, N., Hare, W., Raper, S. C., Frieler, K., Knutti, R., & Allen, M. R. (2009). Greenhouse-gas emission targets for limiting global warming to 2 C. Nature, 458(7242), 1158-1162.
