This case study report will explore the company Phase Separation Solutions (PS2) and identify the key problems and alternatives. An analysis and application of models will then be conducted. Specifically, the five models chosen consist of a PESTEL analysis, Porters Five Forces, a SWOT analysis, the VRIN model and the organisational configuration model. An evaluation of alternatives involving advantages and disadvantages for the alternatives are then investigated. Finally, a conclusion and recommendations are presented for PS2.
Identification of Key Problems and Alternatives
Within the case study there are a set of key problems and alternatives presented. The first problem deals with whether PS2 …show more content…
9). Furthermore, in 2010, the Chinese government claimed that $3 billion would be invested to oil investigation and oil remediation from 2011 to 2016 (Peng & Beamish, 2012, p. 10).
Economic Factors: In the past 30 years, economic development of China was rapid where the real GDP per capita rose from $220 in 1980 to $2,883 in 2010 and the annual growth rate was around 9% per annum (Peng & Beamish, 2012, p. 8). The huge economic development will provide many opportunities for companies to enter. The Chinese economic environmental is still at the early stage however it has great potential to grow.
Social Factors: Environmental pollution has become a serious social issue facing the Chinese government due to its negative consequences on society’s health. Around 410,000 people die every year in China because of environmental pollution (Peng & Beamish, 2012, p. 9). Meanwhile, the number of protests related to environmental pollution increased with an annual rate of 29% in recent years (Peng & Beamish, 2012, p. 9).
Technological Factors: China’s technological capabilities are not as developed as other nations and causing lags in potential growth. TDU technology is widely used in China’s POP market. Compared with TDU, PS2’s TPS technology has higher mobility. In China, the oil sludge industry is in its infancy so advanced technologies are needed to propel development.