GVEP International (Term Paper Sample)

University Name
GVEP International
Name
Course Name and Number
Professor Name
Paper Due Date
Table of Contents
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EXECUTIVE SUMMARY  PAGEREF _Toc384070020 \h
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GVEP INTERNATIONAL  PAGEREF _Toc384070021 \h
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MANAGEMENT TEAM  PAGEREF _Toc384070022 \h
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MARKET RESEARCH AND ANALYSIS  PAGEREF _Toc384070023 \h
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ENTRY STRATEGY  PAGEREF _Toc384070024 \h
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SWOT ANALYSIS  PAGEREF _Toc384070025 \h
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Strengths  PAGEREF _Toc384070026 \h
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Weaknesses  PAGEREF _Toc384070027 \h
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Opportunities  PAGEREF _Toc384070028 \h
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Threats  PAGEREF _Toc384070029 \h
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Works Cited  PAGEREF _Toc384070030 \h
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EXECUTIVE SUMMARY
GVEP International is a non-profit organization that focuses on increasing access to modern sources of energy. This is done in developing nations in Africa and the Caribbean to reduce poverty. The United Kingdom registered the organization as a charity in 2006 and it was founded in 2002. The organization has three objectives; enabling universal access to modern energy services, doubling the amount of renewable energy in the world’s energy mix, and doubling the rate of improving energy efficiency. The organization’s goal is to assist the achievement of the Millennium Development Goals.
Ethiopia is a suitable country for GVEP International to conduct business. The Ethiopian government has prioritized energy generation and accepted that the country needs to embrace alternative sources of energy. This is consistent with the government’s strategy to diversify its economy and reduce reliance on agriculture. The charity’s experience with other African countries also makes Ethiopia a suitable location for operations.
The management team for the Ethiopian operations will comprise of locals. A country manager will head operations in the country and he/she will be assisted by four managers covering renewable energy technologies, marketing, management, and finance. There will be no interaction with expatriates so as to take advantage of the collective knowledge of the senior leadership in the country. The system of leadership will be based on an innovative approach. When it comes to the motivation system, empowerment, open communication, and reward packages will be used.
Majority of Ethiopia’s population is concentrated in rural areas and a high percentage of households cannot access modern sources of energy. The government has initiated programs such as distribution of solar panels to bridge the energy gap. Ethiopia has invested in infrastructure and intends to spend vast sums to double electricity generation over the next decade. Competition and market share do not apply to GVEP International since it is a non-profit organization. These conditions make operation in Ethiopia viable.
The entry strategy will be an alliance with the government. However, the organization will need to get reassurance that it will operate independently. This entry strategy will face challenges like obtaining registration, and limiting human rights advocacy activities in order to obtain more than 10% of its funding from foreign countries. When it comes to cultural issues, Ethiopia has a strong history with community based operations and self-help groups. In conclusion, the need for economic diversification and the strong culture that favors organizations like GVEP International should make this entry successful.
GVEP INTERNATIONAL
GVEP International (Global Village Energy Partnership International) is a non-profit organization that focuses on increasing access to modern source of energy with the intention of reducing poverty in developing countries (GVEP International, 2014). It was founded in 2002 in Johannesburg, South Africa and it evolved to become a charity registered in the United Kingdom in 2006 (GVEP International, 2014). The organization assists small businesses in the energy sector to be successful in order to achieve the goal of making modern energy available. According to the organization, approximately one and a half billion people in the developing world live without electricity. In addition, two and a half people depend in charcoal, wood, kerosene and animal dung for fuel (GVEP International, 2014). This is an enormous problem as access to energy allows people to meet their basic needs. In addition to this, lack of reliable energy that is affordable hampers economic and social development.
The global energy industry is dominated by large utilities. However, the main objective of energy utilities is to make profits by supplying vast amounts of energy to areas with high population densities. They rarely invest in extending their grids to rural areas due to limited energy consumption in these areas. According to GVEP International, large utilities can only provide 40% of the energy that is required to guarantee universal access to modern energy (GVEP International, 2014).This limited capability means that there is a 60% gap in the energy industry that has to be filled by small and medium-sized businesses. This 60% gap is the section of the energy sector that is of interest to GVEP International.
GVEP International has identified Africa and the Caribbean as the areas that require its assistance. The organization has operations in Tanzania, Uganda, Kenya, Rwanda, and Senegal in Africa, in addition to Haiti, Belize, Barbados, Jamaica, and Suriname in the Caribbean. GVEP International’s mission is to increase access to modern sources of energy in order to aid economic and social development. The organization has three objectives which include doubling the amount of renewable energy in the world’s energy mix, enabling universal access to modern energy, and doubling the rate of improving energy efficiency (GVEP International, 2014). The main goal of this firm is to ensure the achievement of the Millennium Development Goals designed to eradicate extreme poverty by 2015.
GVEP International offers various products and services in the countries where it operates. One of the services offered by the organization is training programs for entrepreneurs from small and medium-sized businesses in the energy sector. The training covers business planning, record keeping, and sales and marketing. The firm also provides training and assistance when it comes to manufacturing and sourcing energy technologies. The company also provides capital in addition to these services. This is done in several ways including offering loan guarantees, offering advice on how to work with financial institutions, and providing actual capital to winners of competitions (GVEP International, 2014). The final service offered by the firm is access to a delivery network. This is critical as it bridges the gap between the small and medium-sized energy business and customers that depend on traditional forms energy.
According to GVEP International (2014), its entry and growth strategy is based on an enterprise approach. The organization does not offer products and services for free. It helps markets to work with the medium and small energy businesses so that these businesses can grow. GVEP International’s growth strategy can thus be described as one which focuses on enabling the growth of energy businesses so as to work towards universal access to energy products and services. The organization, therefore, has a limited period of involvement in individual communities.
The description of the energy industry, GVEP International and its products and services, and its mission, vision and goals provide the rationale for the decision to select Ethiopia as a country where GVEP can begin operations. Ethiopia is a developing country with an economy that is based on Agriculture. However, the country’s government is encouraging diversification into industries such as manufacturing, textiles, and energy generation (The World Factbook, 2014). GVEP International’s focus on developing countries like Ethiopia coupled with the Ethiopian government’s need for additional energy generation provides the rationale behind the decision to bring GVEP International into Ethiopia.
MANAGEMENT TEAM
When it comes to management, GVEP International is overseen by a board of trustees that has ten members. Given the range of services offered by the charity, this board of trustees is composed of individuals who have accumulated years of experience in various sectors (GVEP International, 2014). These sectors include development, finance, renewable energy, consultancy, engineering, law, investment, and economics.
Approximately 80 staff handles the day to day operations of Global Village Energy Partnership International. According to GVEP International, majority of these workers come from the host countries in which it operates. The organizations employees are tasked with combining expertise in energy and business with knowledge of their local markets. When it comes to senior management, they are drawn from different cultures and backgrounds and require the same expertise on energy and business. GVEP International’s current Chief Executive Officer is Ben Good. He is an engineer who has 20 years of experience in the energy sector and renewable energy. Below the CEO are senior managers who head the charity’s various divisions. These include the Chief Operations Officer, Head of Advisory Services, Head of Finance, and the Head of Communications. As stated, GVEP International operates in the developi...