COMPANY OVERVIEW The power sector in Bangladesh has performed below par for many years, and the

government has taken initiatives to reduce the deficits in the national grid. However the government can only be a single variable and are often outnumbered by the various growth constraints this economy faces, in effectively changing the scenario in the power sector in the small time period concerned. However if efforts were made to develop the power sector by setting up power plants based on renewable energy sources on a relatively smaller scale, it would be possible that these small scaled operations would sum up and help the government make one big difference in the power sector of Bangladesh. Based on the current epidemic that engulfs the power sector of Bangladesh, Green Drive will seek to set up a state of the art Wind Farm, which will produce 10 MW of electricity from Wind Energy and sell it to the government. Green Drive will seek to achieve this with a degree of efficiency, quality, sustainability and social responsibility in their operations. MISSION AND MISSION STATEMENT The mission of Green Drive will be to produce electricity that ensures quality, efficiency, provide electricity to the government and help reduce certain amount of deficit in the national grid. The mission of Green Drive will incorporate answers to the following questions, which will be used to construct the mission statement of Green Drive: y y y Who The Government What Government Needs, e.g-Deficit in National Grid How The activities used by Green Drive to generate Electricity, for instance setting ip an onshore wind farm near the coastal region. y Why To reduce the deficit in the National Grid and operate with a socially responsible perspective. The mission statement of Green Drive will be To Develop Electricity to reduce the deficit in the national grid

VISION AND VISION STATEMENT The vision of Green Drive will be to reduce electricity deficit in various regions of Bangladesh and become an eco friendly, socially responsible organization. The following are the factors which must be attributed before building the companys vision statement: y y y y y Long Term Direction Risk of Ruddleness Organizations purpose to motivate organization members Provide Operational level managers to develop their own departmental missions Help Prepare for the future

The following will be the Vision Statement of Green Drive will be To contribute in reducing the deficit in the national grid side by side with social responsibility. KEY PRODUCT y y y y Green Environmentally Friendly Electricity Superior Efficiency Strong Customer Responsive Product Sustained level of Quality

GOALS AND OBJECTIVES Various goals and objectives were set up in order to realize the targets specified by the mission in the shorter time frame and once those were achieved, the goals and objectives in collaboration with other specified, modified goals would lead to moving towards the tagets specified by Green Drives vision. The following were the objectives which covered the narrower perspectives which hence would contribute in achieving the much broader goals defined by the organization: GOALS of GREEN DRIVE The following are the goals which would be achieved after carrying out each objective step by step or simultaneously: 1) Produce electricity to meet the requirements of the power sector and survive in the market for the longer time period concerned. 2) Achieve financial sustainability in the following ways: a. Strong financial ratios indicating strong performance of Green Drive in departments such as profitability, solvency and sustainability. b. Achieve a relatively quicker payback period compared to power plant projects in Bangladesh in the past. c. Achieve an NPV value of zero and more after a reasonable period of time. d. Strong utilization of revenue generating assets, strong interest payment management tools and minimize wastages, system loss and expenses. 3) A chief goal of Green Drive will be provide socially optimum service, this will not be limited to providing substantial quality electricity with a degree of efficiency, from the start of their operations Green Drive will be seeking avenues to apportion a part of their profits in public welfare schemes and in initiating CSR activities. This goal will be carried out side by side with strategic, financial goals of Green Drive. 4) Another major goal of Green Drive will be operate efficiently, effectively with highest utilization of assets to generate strong profits in order to attract new entrants into the market. Green Drive believes it will have achieve the first 3 goals stated before only if it can attract new entrants into their market within a small period of time.

OBJECTIVES 1) To setup an onshore wind farm, consisting of adequate plant structure, technologically superior machinery, and skilled workers suited to high quality electricity generated from wind power. 2) To produce 10MW wind powered electricity at a sustainable rate and quality for the national grid and reduce the deficit in the national grid. 3) Realizing the importance of renewable energy to be the solution to power crisis in Bangladesh in the days of depletion of other forms of non renewable energy. 4) Bringing down the low capacity utilization rates created by underperforming hydro electricity plants in Bangladesh. 5) To supply electricity to the government and aid in the ongoing Structural Adjustment Reforms undertaken by the government since 1983. 6) To initiate small scale development schemes in regions where the wind powered electricity plants will be located. 7) Development schemes will be two fold in the form schooling scholarships for the children of the local region in which Green Drive will be operating. 8) Realizing the importance of growth of the manufacturing sector, and helping the government in initiating growth of manufacturing sector of Bangladesh by being able to provide electricity and provide incentives to manufacturing sector firms to initiate their operations. 9) To incorporate and maintain a strong degree of quality, efficiency in generating electricity with planned innovation in methods used to extract electricity from wind. 10) Incorporate strategies to carry out B2G or Business to Government level marketing strategies. 11) Accumulate trained labor force with layered management and apportioning the human resource budget efficiently and effectively. 12) Financial Objectives include swift payback period, achieving positive NPV within a substantial period of time, strong profitably, liquidity and solvency position for the longer time period concerned. 13) Unlike other power sector companies in Bangladesh, Green Drive will not seek to become listed as a Public Limited Company at any point of time and especially not during the first 15 years of operations.

BASIC ORGANIZATIONAL HIERARCHY OF GREEN DRIVE

BUSINESS LEVEL

FUNCTIONAL LEVEL

OPERATIONAL LEVEL

The above diagram shows the hierarchy of management in Green Drive who will be responsible for taking various decisions at various layers of operations of the organization, Green Drive will be a Strategic Business Unit (SBU), the description of each level of management is essential as they will provide a clear understanding of the short term and long term strategies to be adopted by green drive and which level of management will formulate and execute those strategies, the following is a brief description of each level of management for Green Drive: 1) Business Level: The Business Level managers will consist of the core members of the organization specified in the Profile of the team section of the report, these managers will be largely responsible for designing and executing strategies that focus on the broader perspective such as the organization itself and providing directions for the company in the longer time period concerned.

2) Functional Level: These managers will consist of personnel hired by Green Drive such as the Human Resource Manager (both Admin and Plant), Marketing Manager, IT manager. Each of these managers will be involved decision making that focuses on their particular department, strategies crafted in this level of the organization will be mostly based on the shorter time period concerned with the exception of a few strategies giving direction for their respective departments in the longer time period concerned. 3) Operational Level: Decision making in this level will be made largely by those managers such as the Operations Manager, Supervising Engineers, Assistant Managers of each department provided with the power of making decisions as a large part of their activities consist of the day to day running of the plant. strategies crafted in these levels will be mostly based on the shorter time period term. Considering the above mentioned details regarding the various layers of management, Green Drive will adopt various strategies for the Long term and Short term. I) Long Term Goals: The following are the various policies which build up to the long term overall strategy adopted by Green Drive and the level of involvement from each level of managers of Green Drive: a. Business Level: i. Low Cost Strategy: According to a research conducted by World Bank, the government of Bangladesh is edging an agreement to purchase electricity from power plants producing electricity from renewable sources of energy at a rate that comprises between Tk.8-Tk.14 per KW of electricity produced. Green Drive will be charging a rate much lower than this and this will be competitive edge of Green Drive, Green Drive will adopt cost leadership to boost its revenue. ii. Financial Discipline: Green Drive is aware that there is a constant surge in price level of Bangladesh as the inflation rate persists to grow. Despite this fact Green Drive will increase the price they charge for their electricity at a much slower rate each year, this will allow Green Drive to achieve a degree of financial discipline and sustainability in the long term. iii. Interest Payment: Green Drive will focus its operations in a manner so that revenues generated from operating and non operating activities can concerned, and there will be very little involvement of Green Drives Operational Managers in crafting strategies for the longer

be used adequately to facilitate interest payment within the first few years in order to reduce the burden of interest payment first hand and be prepared for government taxes, Green Drive will enjoy tax exemptions during the first 15 years of its operation. iv. Replacement of old Machinery: After 10 years of operation, equipment and machinery such as batteries will be sold and replaced with purchase of new machinery. v. Implement Cost Cutting Measures: Over the years of operation, Green Drive will be able to allocate its cost drivers and will be more capable in managing these cost drivers and reducing costs wherever possible. vi. Game Theory: The look forward tactic of game theory will be applied by Green Drive as they will try to forecast possible changes, conditions, systematic and unsystematic risks the foreseeable future bears and measures they can take to minimize those risks. b. Functional Level: i. Human Resource Retaining: Green Drive has to realize that no strategies designed for its Human Resource will be beneficial if they do not change to recruitment of workers, nature of operations and time period, Green Drive will be motivated to recognize issues in Human Resource Management and adopt accepted proven solutions as well as try out new solutions in retaining Human Resource such as careful designing of compensation packages, health benefits and other form of non wage benefits. ii. Market Position Retained: Even though one of the major goals of Green Drive is to perform in terms of profitability to attract new entrants into the renewable energy sector especially firms that focus on wind energy, Green Drive will seek to exploit their First Mover Advantage and remain one step ahead of new entrants, for instance if Green Drive currently has 5 windmills, they will counter any new entrant entering the market with similar plant layout structure, by increasing 2-3 windmills, an action only Green Drive can adopt, as they have superior expertise and capability achieved due to surviving years in the market.

II)

Short Term Goals: The following were the short term strategies pursued by Green Drive which were to be adopted within the first few years of operations and the implementation of these strategies would be the stepping stone in achieving the long term strategies outlined by Green Drive: a. Business Level: i. Level of Investment: Investment will be maximum on physical assets, as Green Drive will discover itself to be at the Embryonic Stage of the product life cycle model, investment will be highest. ii. Plant Layout: Plant Layout will be designed at the business level and it will be designed in a manner to manage the resources and capabilities of the organization. Large plant sizes will be avoided, and land will be utilized adequately to minimize inefficiency. iii. Game Theory: The look back tactic of game theory will be utilized by Green Drive as they realize actions taken over particular phases of time, evaluate possible strengths of such actions and how short term policies can be remodeled to reduce drawbacks. b. Functional Level: i. CSR activities: The marketing department will initiate Green Drives participation in various CSR activities that will increase firm value, organizational goodwill and help cement a strong foundation of trust with the government. ii. Human Resource Recruiting: The Human Resource management will be developing compensation packages in order to reduce various issues that may arise within the labor force Green Drive such as Wage Price Spiral where workers might develop the impression that they are earning less or Wage Wage Spiral where workers may perceive pay increases due to increase in wages in other sectors, the human resource managers may also need to bring about changes in the recruiting process every year based on turnout, capabilities, qualities of employees. iii. Increase in price of electricity: According to a government research Various organizations in Bangladesh such as Summit Power take full

advantage of inflation and incorporate it into the rates they charge for producing electricity, unlike Summit Power, Green Drive will increase their rates at much lower proportions. c. Operational Level: i. Economies of Scale: The strategy will be to acquire economies of scale by producing at a mass level thereby reducing per unit costs of production. Green Drive will be producing at 90% capacity after 3-4 years of its operations to take advantage of economies of scale. ii. Specialization: Green Drive will subdivide available workforce into various sectors to take advantage of higher efficiency that may arise in workers specifically assigned to handling specific tasks. iii. Cost Saving by Learning and Experience: Green Drive seeks to reduce its costs of production by Learning and Experience, as Green Drive will gain expertise in managing their cost drivers which will allow them to reduce their overall costs of production. iv. Information System: There will be certain levels of information systems used by green Drive for instance in predicting Wind Speed. v. Infrastructure utilized according to plant size: Green Drive will seek to reduce the level of system loss and increase capacity utilization rate from 60% in the first year to 90% by 4th or 5th year of operation. vi. Performance based pay: Green Drive will initially adopt performance based pay schemes where employees salary increments will be based on their performances and contributions in the firms operations.

TESTS FOR STRATEGY: The following are the the 3 tests for testing the firms strategies in accordance with the perceived performance of those strategies after they are executed: 1) Goodness of Fit Test: This test mentions how well matched the strategy is compared to the industry and competitive condition, market opportunities, threats, companys resource, strength, weakness and competence. Based on the strategies adopted by Green Drive it can be said they have achieved this criteria, as Green Drive has realized the relative bargaining power of their buyers and have resorted to low cost pricing strategies which can be applicable to any new firm pursuing a similar market. 2) Competitive Advantage Test: This leads to the development of sustainable competitive advantage. As Green Drive will be entering the market at an early stage they will be able to enjoy sever economies of scale and first mover advantage over other new entrants. 3) Performance Test: The strategies adopted by Green Drive can be said to meet the performance criteria for the following reasons: a. Net Present Value of the project=0 within a requisite period of time. b. Financial Ratios show strong profitability, solvency and sustainability of the company. c. Firm Value of Green Drive is reasonably high d. Green Drive has been able to accommodate low cost strategies and still earn profit from third year. e. Strong Tax Management and Expense Management tools have reduced expenses of Green Drive