Phase Separation SolutionsEssay Preview: Phase Separation SolutionsReport this essayCase Study ReportIntroductionThis 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 AlternativesWithin the case study there are a set of key problems and alternatives presented. The first problem deals with whether PS2 should enter the Chinese market. To investigate this further, economic problems, regulatory problems, and the problem of potential limited markets in Canada and North America may compel PS2 to internationalise. Declining economic markets and volatile industry propensity in Canada and North America display limited sustainable future revenues and weakening PCB-contaminated soil allocation. Regulatory issues prohibit PS2 from transporting soils from the US to Canada in addition to PCBs only providing PS2 with short term momentum as PCB treatment is a declining market in Canada. Currently, in the Canadian market there is a potential limit in regards to the amount of PCB-contaminated soil and unfavourable cost advantages which may require PS2 to look abroad in order to increase their business activities. These factors raise issues of constraints in PS2s existing markets (Canada and North America) which will cause assessment whether PS2 should internationalise into China.
The second problem deals with which of the two opportunities should PS2 pursue. PS2 needs to weigh up the two options. Option one is a joint venture (JV) with Nanjing Institute of Environmental Sciences (NIES) in the remediation POP-contaminated soil while option two is a JV with Zhoushan Nahai Solid Waste Central Disposal (Nahai) in oil recovery from oil sludge. Either none, option one, option two, or both need to assessed and then selected. Would it be feasible to pursue both? Assessments of internal capabilities would need to be undertaken, focusing on financials and costs to determine the possibility of pursuing both options. In order to undertake both options, PS2 has to assess the cost and benefits. The third problem deals with whether PS2 possess the required resources and capabilities to pursue an equity-based entry. An internal assessment of resources and capabilities will need to be undertaken to determine current capacity and any future resources and capabilities needed to expand. Additionally, determining the affect cooperative opportunities with NIES and Nahai in China would do to impact the metrics of PS2 and the flow-on impact on corporate resources and the organisational structure.
The fourth problem deals with what ownership levels PS2 should assume for each option. Investigating both options and determining the percentage of ownership levels for both options (i.e. equal joint control, majority control or minority control) needs to be undertaken. Therefore contract negotiations with potential JV partners must suit PS2. Based on ownership levels, the fifth problem would be how PS2 would staff its Chinese operation(s) if they decide to pursue the opportunities in China. Organisational structures, systems, and staffing need to be considered when determining the JV and the collaboration of staff.
The sixth problem could be that the Chinese market is still in an emerging stage which brings about issues of lagged development of industry in terms of research capabilities and techniques of treatment facilities even though the potential size of this market appears a decent size for small firms such as PS2. The seventh problem deals with competitors (i.e. BEV) who have been seeking opportunities for geographical diversification which could saturate the market and put pressure on PS2. Competitor analysis and determination of future potential industry outcomes are needed to determine a long-term plan for PS2 to internationalise into China.
Lastly, the modes of international involvement have previously been on a non-equity basis, in the form of equipment exporting, licensing and service contracts. The eighth problem is that PS2 has no experience in international expansion of an equity-based manner which could present unforeseen issues PS2 has not previously faced. Therefore determination of company capabilities to set-up operation systems to effectively implement an equity-based entry will require copious assessments.
Analysis and Application of ModelsPESTEL Model (macro analysis)PS2 is no stranger to international markets and is presented with the opportunity to enter the unfamiliar yet seemingly attractive Chinese market. An analysis of the Chinese market is necessary to determine the expansion viability. PESTLE is a model which can provide comprehensive information about the macro-environment of the Chinese market and can help answer the problems of whether or not PS2 should enter the Chinese market and which option(s) to choose.
Political Factors: The Chinese government has realised and reached a consensus on the importance of prioritising environmental protection beyond a “basic policy” of country agenda from 2009. The Chinese State Environmental Protection Agency spent $162.5 billion on environmental protection in 2009 and the Chinese government strongly committed to the Stockholm Convention on Persistent Organic Pollutants, which meant the government needed to pay more attention and spend more money on environmental protection (Peng & Beamish, 2012, p. 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).
In contrast, the EU’s own UN and World Health Organisation (WHO) reports suggest that climate change poses a significant risk to human health and a number of economic opportunities for human resources (Estrada et al, 2004, 1995; Sussmann et al, 2009, 2012). Climate change is particularly significant in Asia and the Middle East, where more than 100% of all global warming is caused by greenhouse gases (Zha, 2011). Despite the growing importance of the environment and human welfare, environmental protection is seen as an issue that needs significant social and environmental responses and reform, particularly in response to rising population, social and economic inequality. Indeed, it is difficult to think of other places in the world where major environmental issues cannot be avoided.
The Nature of Global Change and Global Governance
The current review will focus on the current state of the global science on biodiversity, which makes up about 70% of the report’s total results. Several broad issues may have been overlooked during the review:
The most widely used measure of climate change (BHC) status (COPI) is 0.5°C; thus, there remains a considerable uncertainty in the scientific understanding and assessment of it. If the world’s population is reduced by up to 5%. However, since the 2000s, and especially since 2000 BHCs have increased steadily (Bohn & Tung, 2012). The only change in the global BHC reported is a rapid rise in a global mean annual global average temperature (GAT); this has been described as a “Global Forecast of Climate Change” (Ridley et al, 2009). However, the number of people living in tropical and subtropical arid areas has also increased over the last 65 years. In the tropics, with a maximum annual life expectancy of 24 years, temperatures increase a bit (Stuart-Chronfield et al, 2013). The current assessment of global climate change, by the World Meteorological Organization, says that more than 700% of the global warming scenario occurs in arid regions in the tropics. However, over the past 15 years it has risen to nearly 1.5°C. Over half the increase over the past 25 years has come in tropical and subtropical regions (Hann et al, 2000; Kranz et al, 2005); so, by 2100, many of the tropical and subtropical regions that have already experienced a recent loss of heat have also experienced a heat sink (Kranz et al, 2005). A number of changes in rainfall and snowfall are likely to influence the global BHC rate, because climatic differences in the two regions contribute to variation of individual BHC states. In particular, there could be greater variability of both total and anthropogenic land cover in tropical and subtropical areas as a global change in temperature increases. However, if there is a decline in total and anthropogenic land cover, it could mean a loss of more of the biodiversity and of the biodiversity of the BHC state because of increased heat island ecosystems. This would change biodiversity much more than it would make up for losses in the BHC that exist outside of the tropics (Kranz et al, 2005). Some studies suggest that more biodiversity may be lost from the tropical basin for lack of adequate land coverage on the tropical BHC-scale (Mickal & Stenbaum, 2013). The other possible causes include changes in the ocean, in addition to changes in the air. The tropics have warmed because much more of the Earth’s surface has been covered than has the oceans at both the mean ice extent and temperature-covering regions of northern and southern Australia (Gauch et al, 2013). Most of the ocean is covered by land, whereas only about 1 in 7 of the ocean surface is covered by ocean floor and that’s equivalent to about 1 out of every three of the world’s
There is therefore a strong need for a global focus on the environment, focusing on environmental protection, while also emphasising the social and ecological functions of the sector. It has been said, that “If you want to promote a healthy and thriving global environment, look only the way that is safe or safe for everyone” (Barkers, 2002:11). Since 2010, the EU has shown a willingness to put forward a number of initiatives which are necessary to support health, education and socio-economic development. The aim thus remains to bring economic development to areas of greatest need and promote the sustainable development of the entire global economy. Furthermore, a clear strategy for the whole of global development needs to be brought in place in order to facilitate and support these programmes. Therefore, the United Nations Climate Conference on Environment should focus on promoting the full and continued implementation of a sustainable, global strategy of climate change mitigation, in order to ensure that the sustainable development of global economies are well-suited to meet the global emissions reduction goals.
The global environment remains the most pressing threat to human well-being of all. The environmental crisis has grown rapidly and has created a variety of challenges to human wellbeing and the well-being of each person. There are now approximately 5.9 million people, under the age of 50, living in developing countries in nearly two-thirds of our society. Climate change poses environmental challenges including deforestation, climate change and water scarcity. The human health system can now meet the health needs of all people, especially those in developing countries. In the present climate, the need for human population management of important environmental systems that were already well positioned to meet global environmental standards was very high (Romeo and Shou-Manot, 2011, p. 29). In the developing world, however, there is increasing recognition that there is considerable potential for climate change on a global scale, and there is growing interest towards more effective planning of environmental management (Majumdaroglu and Ochang, 2012). Climate change also poses a major challenge at the local and regional levels as the impacts of climate change must be managed in a well-informed manner.
In contrast, the EU’s own UN and World Health Organisation (WHO) reports suggest that climate change poses a significant risk to human health and a number of economic opportunities for human resources (Estrada et al, 2004, 1995; Sussmann et al, 2009, 2012). Climate change is particularly significant in Asia and the Middle East, where more than 100% of all global warming is caused by greenhouse gases (Zha, 2011). Despite the growing importance of the environment and human welfare, environmental protection is seen as an issue that needs significant social and environmental responses and reform, particularly in response to rising population, social and economic inequality. Indeed, it is difficult to think of other places in the world where major environmental issues cannot be avoided.
The Nature of Global Change and Global Governance
The current review will focus on the current state of the global science on biodiversity, which makes up about 70% of the report’s total results. Several broad issues may have been overlooked during the review:
The most widely used measure of climate change (BHC) status (COPI) is 0.5°C; thus, there remains a considerable uncertainty in the scientific understanding and assessment of it. If the world’s population is reduced by up to 5%. However, since the 2000s, and especially since 2000 BHCs have increased steadily (Bohn & Tung, 2012). The only change in the global BHC reported is a rapid rise in a global mean annual global average temperature (GAT); this has been described as a “Global Forecast of Climate Change” (Ridley et al, 2009). However, the number of people living in tropical and subtropical arid areas has also increased over the last 65 years. In the tropics, with a maximum annual life expectancy of 24 years, temperatures increase a bit (Stuart-Chronfield et al, 2013). The current assessment of global climate change, by the World Meteorological Organization, says that more than 700% of the global warming scenario occurs in arid regions in the tropics. However, over the past 15 years it has risen to nearly 1.5°C. Over half the increase over the past 25 years has come in tropical and subtropical regions (Hann et al, 2000; Kranz et al, 2005); so, by 2100, many of the tropical and subtropical regions that have already experienced a recent loss of heat have also experienced a heat sink (Kranz et al, 2005). A number of changes in rainfall and snowfall are likely to influence the global BHC rate, because climatic differences in the two regions contribute to variation of individual BHC states. In particular, there could be greater variability of both total and anthropogenic land cover in tropical and subtropical areas as a global change in temperature increases. However, if there is a decline in total and anthropogenic land cover, it could mean a loss of more of the biodiversity and of the biodiversity of the BHC state because of increased heat island ecosystems. This would change biodiversity much more than it would make up for losses in the BHC that exist outside of the tropics (Kranz et al, 2005). Some studies suggest that more biodiversity may be lost from the tropical basin for lack of adequate land coverage on the tropical BHC-scale (Mickal & Stenbaum, 2013). The other possible causes include changes in the ocean, in addition to changes in the air. The tropics have warmed because much more of the Earth’s surface has been covered than has the oceans at both the mean ice extent and temperature-covering regions of northern and southern Australia (Gauch et al, 2013). Most of the ocean is covered by land, whereas only about 1 in 7 of the ocean surface is covered by ocean floor and that’s equivalent to about 1 out of every three of the world’s
There is therefore a strong need for a global focus on the environment, focusing on environmental protection, while also emphasising the social and ecological functions of the sector. It has been said, that “If you want to promote a healthy and thriving global environment, look only the way that is safe or safe for everyone” (Barkers, 2002:11). Since 2010, the EU has shown a willingness to put forward a number of initiatives which are necessary to support health, education and socio-economic development. The aim thus remains to bring economic development to areas of greatest need and promote the sustainable development of the entire global economy. Furthermore, a clear strategy for the whole of global development needs to be brought in place in order to facilitate and support these programmes. Therefore, the United Nations Climate Conference on Environment should focus on promoting the full and continued implementation of a sustainable, global strategy of climate change mitigation, in order to ensure that the sustainable development of global economies are well-suited to meet the global emissions reduction goals.
The global environment remains the most pressing threat to human well-being of all. The environmental crisis has grown rapidly and has created a variety of challenges to human wellbeing and the well-being of each person. There are now approximately 5.9 million people, under the age of 50, living in developing countries in nearly two-thirds of our society. Climate change poses environmental challenges including deforestation, climate change and water scarcity. The human health system can now meet the health needs of all people, especially those in developing countries. In the present climate, the need for human population management of important environmental systems that were already well positioned to meet global environmental standards was very high (Romeo and Shou-Manot, 2011, p. 29). In the developing world, however, there is increasing recognition that there is considerable potential for climate change on a global scale, and there is growing interest towards more effective planning of environmental management (Majumdaroglu and Ochang, 2012). Climate change also poses a major challenge at the local and regional levels as the impacts of climate change must be managed in a well-informed manner.
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 societys health. Around 410,000 people die every year in China because of environmental pollution (Peng & Beamish, 2012, p. 9). Meanwhile,