NAMASTHE SOLAR
Introduction
Namasté Solar is a leading Colorado solar installer in the residential market. Colorado’s favorable market conditions attract new competitors, putting pressures on price and market share. Unusual management structure and values systems, and public incentive structures complicate a pending decision to grow the residential market or develop a commercial installation business. (http://leeds.colorado.edu/casestudy/169#overview)
The Pros and Cons of Namaste’s Three Options
Path A: to “sell the whole kit and caboodle”
Advantages:
* By more invested capital the company can grow much faster than the market. The invested capital can be used to acquire more resources and for more research and development projects which ultimately might increase the company’s profit. * Very high expansion is possible because the company can hire more people which enable them to reach more customers and more installations. By this process the company’s reputation can be kept high and increase the profitability. * The disadvantages in decision making strategy which was originally followed by the company can be eliminated. * The stack holders and stock holders can receive a huge return for their invested capital. * The investment risk of the employers can also be reduced. * Last but not the least, employers feeling of tired and overworked can be reduced to a great extent.
Disadvantages
* The company’s core values like Care for the Earth, Care for our Customers, Care for our Community, Care for the Company, Care for Ourselves can be totally lost. * “Holistic Profit “, the concept originally followed will also be lost. * Strategy’s like BPM(Big Picture Meeting),FOH( Frank, Open and Honest) Communications, open book management, High employee engagement, Democratic decision making, Good remunerations program, Shared ownership