Group Activity 2.2 in Strategic Management

Group Activity.
(Strategic Management)
Activity 2.2
1. Surf the Internet and Perform following:
a. Describe the physical or natural environment surrounding companies located in

Luzon, Visayas, and Mindanao.
 Luzon is the largest Island in the Philippines. It is home to Manila, the country's
capital and largest city. Luzon is the country's leader in both industry (which is
concentrated in Manila) and agriculture (rice, corn coconuts, sugarcane,
mangoes, bananas). The main grain-producing region is a central plain reaching
100miles (160 kilometers) north of Manila. The Ifugao mountaineers' beautiful
rice terraces can be found further north. The Bondoc and Bicol peninsulas have
significant coconut plantations. Mined metals include iron, gold, manganese, and
copper. Hardwoods grow well in forest regions.
 Eastern Visayas is located in the Philippine archipelago's east central region. It is
made upon three main islands: Leyte, Biliran, and Samar, which comprise the
archipelago's eastern most shores. According to the Corona climate categorization
system, the region has two types of climates: Type II and Type IV. Type II
climate has no dry season but a notable maximum rainfall from November to
January. This climate can be found on Samar Island and the eastern section of
Leyte Island. Type IV, on the other hand, has an even distribution of rainfall
throughout the year and a brief dry season that lasts from February to May.
 Mindanao is the Philippines' second-largest island (after Luzon), located in the
archipelago's southernmost region, surrounded by the Bohol, Philippine, Celebes,
and Sulu seas. It measures 293 miles (471 kilometers) north to south and 324
miles (521 kilometers) east to west and is irregularly shaped. In the largely
Roman Catholic Philippines, Mindanao is a Muslim outpost. Despite the fact that
Muslims are no longer the majority, Islamic culture is visible; there are numerous
mosques and distinctive brassware, such as the kris, or dagger, is produced. In
1990, the Muslim Mindanao autonomous zone was established, consisting of
territory in western and southern Mindanao as well as a number of adjacent
islands, including Tawi-Tawi and Jolo. Because of its large expanses of
undeveloped fertile land, Mindanao has been considered the country’s “pioneer
frontier.” It did not experience substantial population increase until migration was
promoted, particularly in the mid-20th century
b. Identify the programs and regulations adopted by the European Union, United
States and ASEAN to reduce carbon dioxide and other greenhouse gases.
 EU policies: Climate change mitigation (GHG reduction) The EU climate and
energy package was adopted in 2009 to implement the 20-20-20 targets endorsed
by EU leaders in 2007 - by 2020 there should be a 20 % reduction of GHG
emissions compared with1990, a 20 % share of renewables in EU energy
consumption, and energy improvement by 20 %.
 The, United States Environmental Protection Agency (EPA) began regulating
greenhouse gases (GHGs) under the Clean Air Act ("CAA" or "Act") from mobile
and stationary sources of air pollution for the first time on January 2, 2011.
Standards for mobile sources have been established pursuant to Section 202 of the
CAA, and GHGs from stationary sources are currently controlled under the
authority of Part C of Title I of the Act. The basis for regulations was upheld in
the United States Court of Appeals for the District of Columbia in June 2012.
 During the period 2005-2030, South Asia would become more carbon intensive.
The primary energy mix of the five South Asian countries (excluding India)
would shift toward more aggressive use of cleaner resources, such as natural gas,
hydropower, bio mass, municipal solid waste, wind, and nuclear energy, if a
carbon tax regime is considered necessary to stabilize GHG concentrations at 550
parts per million by volume (ppmv) of carbon dioxide equivalent (CO2e). China
wants to reach carbon neutrality by 2060 and peak carbon dioxide emissions by
2030. By 2030, it will have reduced its carbon intensity by more than 65 percent
compared to 2005. By 2030, non-fossil fuels will account for roughly 25% of
primary energy demand.
c. Explain how different countries invest in sustainable energy, including wind,
solar, and water power, to support advocacies on environmental sustainability.
 Solar, wind, hydroelectric, biomass, and geothermal energy can offer electricity
without contributing to global warming like fossil fuels. Renewable energy is
frequently at the top of any list of adjustments the world can make to mitigate the
worst effects of rising temperatures in any conversation about climate change.
This is due to the fact that renewable energy sources like sun and wind do not
create carbon dioxide or other greenhouse gases, which contribute to global
warming. Clean energy has a lot more going for it than just being "green": it
creates jobs, strengthens electric networks, improves energy access in
underdeveloped nations, and lowers energy bills. All of these elements have
contributed to a recent renewable energy revolution, with wind and solar power
establishing new electricity generating records. Average surface temperatures are
rising as greenhouse gases trap heat in the atmosphere that would otherwise
escape into space. Climate change is the term scientists now use to describe the
complex shifts affecting our planet's weather and climate systems. Global
warming is one symptom of climate change. Climate change includes not only
rising average temperatures, but also extreme weather events, shifting wildlife
populations and habitats, rising sea levels, and a changing climate. Climate
change encompasses not only rising average temperatures but also extreme
weather events, shifting wildlife populations and habitats, rising seas, and a range
of other impacts.
2. Mini-Case. Read the mini-case of Walmart de México and answer the discussion
questions comprehensively.
Discussion Questions:
1. How can the company leverage its sterling credit rating to get renewable energy
projects off the ground?
 Despite the fact that the proposed wind farm was located in a region with
substantial wind resources, the project would not have been able to get finance
without a credit worthy off-taker. The developers were able to secure financial
support, purchase and build the turbines, and begin generating electricity by 2010
thanks to Walmart de México's 15-year PPA (Power Purchase Agreement).
2. For the EVM wind farm, Walmart de México's equity investment was minimal
and just sufficient to meet the requirements for Mexico's self-supplied tariff.
Should the company take a larger equity position in furthering energy projects
rather than simply serving as an off taker?
 Rather than simply acting as an off taker, the corporation should have a larger
equity stake in energy projects. Because the return on equity investments is the
increase in the value of the initial investment in the company. Because you don't
have to accept loans or utilize debt financing to obtain the necessary capital for a
company's growth, employing equity investment to finance your firm has fewer
risks.
3. What technologies should Walmart de México employ to achieve its renewable
energy goals?
 I would suggest to them a technology like Photovoltaic and Biomass to achieve its
renewable energy goals. Photovoltaic systems require just routine inspections an
minor repairs, which are incredibly inexpensive when compared to traditional fuel
systems. Photovoltaic systems are also extremely dependable even in adverse
situations. Photovoltaic arrays ensure that important power supply run
continuously and without interruption. As a renewable energy source, biomass is
always and abundantly available. Because our society continually creates waste
such as rubbish, wood, and manure, the organic elements required to produce
biomass are unlimited.
4. Should the company hold a portfolio of projects or just concentrate on one
technology?
 Because good portfolio management generates business value by aligning projects
with an organization's strategic goal, making the greatest use of limited resources,
and creating synergies between initiatives, the corporation must maintain a
portfolio of projects.
5. How could Walmart de México expand the program to other Central American
countries where it operates?
 There are numerous ways for Walmart de México extend their business abroad,
each of which necessitates unique background knowledge, expertise, and
commitment. The first option of global expansion is to use an in-house strategy,
which means you create your own mobility structure based on your preferences,
needs, and constraints. This strategy requires you to identify and decide on the
particular path you wish to take. It's incredibly open-ended and necessitates a
great deal of research, planning, and dedication.
6. Is there a way to include suppliers into a renewable energy program?
 There will be a way to engage the suppliers at some point because they, too,
require the capabilities of this project, which include long-term renewable energy
variability and lower electricity rates.
PROBLEM:
 Walmart de Mexico faces a problem in achieving sustainability targets without
jeopardizing the interests of its corporate authorities and stakeholders.
SOLUTIONS:
 More working capital should be allocated to operations, and sufficient funding
should be allocated to renewable energy initiatives.
 Have a hydropower project but only use renewable energy as a byproduct.
 Instead of plastic bags, use reusable bags or paper bags.
 Encourage suppliers to contribute to renewable energy project funding

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Group Activity.

1. Surf the Internet and Perform following:

a. Describe the physical or natural environment surrounding companies located in

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