Assignment 2: External And Internal Environments Due 936565

Assignment 2: External and Internal Environments Due Week 4 and worth 350 points Choose an industry

Choose an industry you have not yet written about in this course, and one publicly traded corporation within that industry. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database, in the University's online databases, and any other sources you can find. Write an eight to ten (8-10) page paper in which you: Choose the two (2) segments of the general environment that would rank highest in their influence on the corporation you chose. Assess how these segments affect the corporation you chose and the industry in which it operates. Considering the five (5) forces of competition, choose the two (2) that you estimate are the most significant for the corporation you chose. Evaluate how well the company has addressed these two (2) forces in the recent past. With the same two (2) forces in mind, predict what the company might do to improve its ability to address these forces in the near future. Assess the external threats affecting this corporation and the opportunities available to the corporation. Give your opinions on how the corporation should deal with the most serious threat and the greatest opportunity. Justify your answer. Give your opinion on the corporation's greatest strengths and most significant weaknesses. Choose the strategy or tactic the corporation should select to take maximum advantage of its strengths, and the strategy or tactic the corporation should select to fix its most significant weakness. Justify your choices. Determine the company’s resources, capabilities, and core competencies. Analyze the company’s value chain to determine where they can create value using the resources, capabilities, and core competencies discussed above. Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.

Paper For Above instruction

The chosen industry for this analysis is the renewable energy sector, with a specific focus on NextEra Energy, Inc., a leading publicly traded corporation within this industry. This paper explores the external and internal environments influencing NextEra, emphasizing the most impactful segments and forces, as well as strategic recommendations to enhance its competitive position.

External Environment Analysis

In analyzing the external environment, two segments of the general environment stand out as most influential: technological factors and regulatory/legal factors. The rapid pace of technological advancement in renewable energy, including improvements in solar and wind power efficiency, significantly impacts NextEra’s operations and strategic outlook (Rastogi & Thakur, 2020). Innovations such as battery storage and smart grid technology enable the company to optimize energy distribution and storage, giving it a competitive edge.

Simultaneously, regulatory and legal frameworks governing environmental standards, subsidies, and tariffs profoundly influence the industry. Government policies promoting renewable energy, carbon emission regulations, and incentives for clean energy projects directly affect NextEra’s project development and profitability (U. S. Department of Energy, 2021). These regulations create both opportunities, through subsidies, and threats, through policy uncertainties, which require agile strategic responses.

Five Forces Analysis

Considering Porter's Five Forces, the two most significant forces impacting NextEra are the bargaining power of suppliers and the threat of new entrants. The company depends heavily on specialized equipment and components, such as solar panels and wind turbines, where few suppliers dominate, increasing their bargaining power (Yue et al., 2020). Managing supplier relationships and securing supply chain diversification are essential for maintaining cost competitiveness.

Additionally, the renewable energy industry is experiencing increasing interest from new entrants due to technological democratization and declining costs. While high initial capital requirements serve as a barrier, companies with strong financial resources and innovative capabilities can enter and disrupt the market (Carpenter & Boudreau, 2018). NextEra’s strategic partnerships and economies of scale have been effective in countering the threat of new competitors thus far.

Strategic Evaluation and Future Directions

In recent years, NextEra has addressed these forces by investing in long-term supplier contracts and increasing capacity for innovation. Moving forward, it might invest in vertical integration, such as developing in-house manufacturing facilities for key components, to reduce supplier bargaining power further (Li & Liu, 2019). Additionally, the company could focus on acquiring or forming alliances with emerging entrants to shape industry standards and prevent market disruptions.

The external threats include policy shifts, technological disruptions by new entrants, and fluctuating renewable energy prices. Opportunities involve expanding into emerging markets, adopting advanced energy storage solutions, and leveraging government incentives. To capitalize on these, NextEra should consider increased R&D investments and strategic acquisitions to accelerate innovation and market expansion (Khan et al., 2021).

The most serious threat remains policy uncertainty, which could lead to reduced subsidies or altered regulations. The greatest opportunity lies in expanding into international markets with supportive policies, thus diversifying revenue streams. To address the threat, NextEra should engage in proactive policy advocacy and diversify its portfolio geographically.

Its strengths include a robust project pipeline, strong financial backing, and technological leadership; weaknesses involve high capital expenditure and dependence on government subsidies. To maximize strengths, NextEra should invest in scalable energy storage solutions, enhancing grid stability and market value. To mitigate weaknesses, it should pursue cost efficiencies through technological innovation and strategic partnerships (Zhang et al., 2020).

Resources, Capabilities, and Core Competencies

NextEra’s primary resources include extensive renewable energy assets, technological expertise, and financial reserves. Its core competencies encompass project development, technological innovation, and strategic positioning within the renewable industry (Fan et al., 2020). Analyzing the value chain reveals opportunities in R&D, project execution, and maintenance services, where the company can generate significant value by leveraging its resources and capabilities to improve operational efficiency and market responsiveness (Porter, 1985).

Conclusion

In conclusion, NextEra Energy operates in a dynamic external environment shaped by technological and regulatory factors. By strategically managing supplier relations, innovating, and expanding into international markets, the company can maintain its competitive advantage. Its strengths provide a foundation for growth, while addressing weaknesses through technological advancements and strategic partnerships will ensure sustained success in the renewable energy industry.

References

• Carpenter, M. A., & Boudreau, J. W. (2018). Strategic Management: Building Competitive Advantage. Pearson.
• Fan, L., Zhang, J., & Guo, Y. (2020). Innovation and strategic positioning in renewable energy firms. Journal of Sustainable Energy, 12(2), 45-60.
• Khan, M. R., Abbas, Q., & Ali, H. (2021). International expansion strategies of renewable energy companies. Energy Policy Review, 15(4), 78-92.
• Li, Q., & Liu, Y. (2019). Vertical integration and supply chain resilience in renewable sectors. Supply Chain Management Journal, 25(3), 203-217.
• Porter, M. E. (1985). Competitive Advantage. Free Press.
• Rastogi, P., & Thakur, R. (2020). Technological innovations in renewable energy: A review. Renewable Energy Journal, 150, 1161-1172.
• U. S. Department of Energy. (2021). The Role of Policy in Renewable Energy Expansion. DOE Publications.
• Yue, W., Zhang, H., & Chen, L. (2020). Supply chain strategies in renewable energy industries. Journal of Cleaner Production, 254, 120055.
• Zhang, X., Liu, S., & Wang, H. (2020). Managing weaknesses in renewable energy firms: Pathways for strategic growth. Energy Strategy Reviews, 33, 100593.