Negotiation Exercise on Tradeable Pollution Allowances: General Background Information Description
Designed to teach students about the trade-offs faced by firms exploring alternative approaches to complying with pollution control regulations. The setting is the U.S. electric utility industry in 1993. In accordance with the provisions of the 1990 Clean Air Act, coal-burning utilities must lower their emissions of SO2 (sulfur dioxide) significantly by 1995, and then reduce their emissions by an additional 50% by the year 2000. In this stylized negotiation each utility has the option of complying with the regulations through one of three methods: 1) by installing pollution control equipment ("scrubbers"); 2) by substituting high-sulfur coal; and/or 3) by purchasing tradeable SO2 allowances from other firms that overcomply with the emission control legislation. Not only must each utility reduce its emissions by a different amount, but the costs faced by each firm with respect to scrubbing and fuel switching differ as well. Also, assumptions relating to the state regulatory environment differ across negotiating groups. Negotiations take place in groups of four utilities, and separate scenarios are available for three distinct groups. (See Supplements.)
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Case Analysis of Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
Negotiation Exercise on Tradeable Pollution Allowances: General Background Information is a Harvard Business (HBR) Case Study on Global Business , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Negotiation Exercise on Tradeable Pollution Allowances: General Background Information is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Negotiation Exercise on Tradeable Pollution Allowances: General Background Information case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Negotiation Exercise on Tradeable Pollution Allowances: General Background Information will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Global Business, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Negotiation Exercise on Tradeable Pollution Allowances: General Background Information, is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The Negotiation Exercise on Tradeable Pollution Allowances: General Background Information case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Global Business Solutions
In the Texas Business School, Negotiation Exercise on Tradeable Pollution Allowances: General Background Information case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
Step 1 – Problem Identification of Negotiation Exercise on Tradeable Pollution Allowances: General Background Information - Harvard Business School Case Study
The first step to solve HBR Negotiation Exercise on Tradeable Pollution Allowances: General Background Information case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that So2 Pollution is facing right now. Even though the problem statement is essentially – “Global Business” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in So2 Pollution, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Negotiation Exercise on Tradeable Pollution Allowances: General Background Information.
The external environment analysis of Negotiation Exercise on Tradeable Pollution Allowances: General Background Information will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Negotiation Exercise on Tradeable Pollution Allowances: General Background Information case study. PESTEL analysis of " Negotiation Exercise on Tradeable Pollution Allowances: General Background Information" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Negotiation Exercise on Tradeable Pollution Allowances: General Background Information macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
To do comprehensive PESTEL analysis of case study – Negotiation Exercise on Tradeable Pollution Allowances: General Background Information , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
Government policies have significant impact on the business environment of any country. The firm in “ Negotiation Exercise on Tradeable Pollution Allowances: General Background Information ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which So2 Pollution is operating, firms are required to store customer data within the premises of the country. So2 Pollution needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Negotiation Exercise on Tradeable Pollution Allowances: General Background Information has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, So2 Pollution in case study Negotiation Exercise on Tradeable Pollution Allowances: General Background Information" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. So2 Pollution in case study “ Negotiation Exercise on Tradeable Pollution Allowances: General Background Information ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, So2 Pollution in case study “ Negotiation Exercise on Tradeable Pollution Allowances: General Background Information ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ Negotiation Exercise on Tradeable Pollution Allowances: General Background Information ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then So2 Pollution can compete against other competitors.
Government Scheme & Subsidies Impact on Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Negotiation Exercise on Tradeable Pollution Allowances: General Background Information case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – So2 Pollution needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
Social Factors that Impact Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
Technological Factors that Impact Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
Environmental Factors that Impact Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
Legal Factors that Impact Negotiation Exercise on Tradeable Pollution Allowances: General Background Information
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Negotiation Exercise on Tradeable Pollution Allowances: General Background Information case study. PESTEL analysis of " Negotiation Exercise on Tradeable Pollution Allowances: General Background Information" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
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