BUS 599 MOD 03 Congruence Model of Organizational Behavior

BUS599: Strategic Management
Module 3 Case: CONGRUENCE MODEL ANALYSIS
Instructor:
Date:
INTRODUCTION
It is important to strengthen the existing power system to support a more climate-friendly power system. It requires modifications and integration of critical new technology; the low cost options can improve delivery of photovoltaic generated electricity. Sun Power seeks to gain a larger market share in the PV market while enhancing performance and profitability. Supporting a reliable power system that meets the needs of clients also requires taking into consideration the pricing decisions and distribution to increase solar presence to clients who can afford while remaining competitive. The solar PVs influence future investments and costs, and decisions are made whether to deliver electricity through a bulk power system and to consumers.
SIMULATION DECISIONS
KEY METRICS AND DATA ANALYSIS
Decision 1 for 2008-2017
In the analysis of the simulation process, it is important that there is a procedural format that would entail the systematic consideration of all the possibilities, as well as the most likely or preferred outcome. According to Gregory et.al. (2007), organizational diagnosis usually calls for the use of a diagnostic funnel, which basically is the set of the most appropriate steps used in the conduction of the organizational analysis and diagnosis. This is what constitutes the organization’s operational framework, which in the long run brings about an elaborate focus in the perspective of the managerial and the overall business practices within the enterprise.
Applying the right strategy means determining how best the companies resources can be used with the intention of achieving the set goals. Plans put in place help a company be able to identify both its strengths and weaknesses. Having this kind of information will enable the business work on eliminating their weakness and continue to improve on their strengths. All the three categories benefit greatly from a good strategy take the case of environment for instance if good strategies are not used on the environment group achievement of the company goals may be tough because the company may have its priorities set wrongly.
The price for the third module was $ 0.13 as compared to the previous module price, which was $0.15. To some extent, this price will alter the market share and the cumulative profits. This will be based on the assumption that we made that most people are ready and willing to choose sun power over other competitors with the same product.
There will an annual increase in both the revenue expected and the gross profit as indicated in the output below. It reveals an increase of 5.94 percent of both the revenue and the gross profit as compared to the previous SLP2 when the consumer net price for the sun power was 0.15 percent (Conkling & Roberts, 2007).
From the cumulative profit shown, it can be concluded that the company has got a higher ability to increase profit in both the long run and the short run. We are also expecting that the company will increase investments. Competition affected the company earlier on, and it was outperformed by its competitors, but since the chances of profitability are high, then more is expected regarding performance improvement.

SLP 3

SLP2

Decision 1: For Years 2008-2012



Market Share

5.94%

4.85%

Consumer Net Price ($kWh)

$0.13

$0.15

Module Price

$0.11

$0.13

Unit Direct Cost ($kWh)

$0.10

$0.10

Annual Revenue


$626.82M

Annual Net Income


$35.85M

Cumulative Profit


$51.84 M

Decision 2 for 2013- 2017
In this module, the price was $0.11 as compared to the previous $0.13. This indicates a change by -0.02 for the consumer net price. There is a vast improvement on both the annual revenue and the cumulative profit. They both increase to 11.62 percent recording a change of 3.16 percent from the previous module. From the analysis, the market share grew by 3.16 percent which led to the changes that were recorded in the cumulative profit and the annual revenue. Although there was a loss earlier on, the improvements that have been experienced in this module gives hope for more positive changes in the next stages.

SLP 3

SLP2

Changes


Decision 2: For Years 2013-2017



0.00%


Market Share

11.62%

8.46%

3.16%


Consumer Net Price ($kWh)

$0.11

$0.13

-$0.02


Module Price

$0.11

$0.13

-$0.02


Unit Direct Cost ($kWh)

$0.08

$0.08



Annual Revenue


$1.71B

$0.53

Billion

Annual Net Income


$110.86M

($68.29)

Million

Cumulative Profit


$134.36M

($611.39)

Million






Decision 3 for 2018- 2022
In the third phase of the simulations, the module price was $ 0.09 as compared to $ 0.11from the previous decision. The market share increased to 56.06 percent as compared from what was attained in the second decision from the simulations. This was a clear indication that our objectives were at hand and our goals towards growth were intact. An improvement was experienced from the profits obtained, the revenue and the income as compared to the previous decision. Annual net income improved significantly as compared to the earlier decision hence still there is hope of improvement (Platzer, 2015).

SLP 3

SLP2

Changes
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