The paper "Pakistan Solar Energy Company" is a perfect example of a business case study. Solar Century is a UK company that has been dealing with the manufacture and supply of solar energy panels including their installation not only in the UK but also internationally. For quite some time now, the company has been operating in Pakistan through agents. The few years’ experiences have revealed to the company that Pakistan has a huge potential for the marketing of its services in Pakistan. This is because Pakistan has sufficient solar energy potential in addition to the fact that the country has a large population yet to be connected to electricity.
It is also the government policy to connect the population to power. In a bid to increase the company’ s returns from this lucrative market, the company’ s shareholders in December 2015 unanimously resolved to establish a Subsidiary in Pakistan under the name Pakistan Solar Energy Company (Rose-Ackerman, 2005). As a result, the board was tasked with the responsibility of conducting research in a bid to establish the advantages and the challenges that the company would be faced with in its decision to expand to Pakistan.
Thus, this paper presents a report prepared for the Sola Century board of directors on the suitability of establishing the subsidiary in Pakistan. The report conducts both macro and microeconomic analysis of Pakistan as well as the proposed subsidiary. It is hoped that the board will find the report useful as the company implements the decision to relocate to Pakistan. The Macroeconomic environment of Pakistan These are the conditions that exist in the whole economy as opposed to existing in a particular sector or industry of the economy.
These include such factors as the trends in a country’ s gross domestic product (GDP), employment and spending, inflation as well as fiscal and monetary policies adopted by a particular company. These factors are important to a company as they will determine whether or not it succeeds in a particular country as a business and the economy don’ t exist as an island and the actions of one affect the other.
Rose-Ackerman, T2005, Foreign direct investment and the business environment in developing countries: The impact of bilateral investment treaties, Yale Law and Economics, vol. 11, no. 3, pp. 12-35.
Ottinger, R2013, Renewable energy law and development: Case study analysis, Northampton, Edward Edgar.
Chaudhry, R2009, Renewable energy technologies in Pakistan: Prospects and challenges, Renewable and Sustainability, vol. 23, no. 2, pp. 12-19.
Hazboun, E2015, Sustainable access to energy in the global south: Essential technologies and implementation approaches, New Jersey, Springer.
Batra, K2003, Investment climate around the world: Voices of the firms from the world business environment survey, World Bank.