LEGO case write-up

Nameste Solar Case Study

1. Provide an overview of Nameste Solar’s internal environment, with a particular focus on the organization’s vision, mission and values.

Namaste Solar’s internal environment had followed a democratic, employee-owned and high engaging culture where the employees were involved in all the decision making process. The young firm had the vision of building the business in which the risk reward was shared and the decision making process was decentralized. The mission was to propagate the responsible use of solar energy and pioneer for scrupulous business practices while creating holistic wealth that was shared among all the stakeholders. The values of the organization were to care for the earth, the customer, themselves, the company and the community. For example, the firm did not have a personal guarantee to take a loan for their firm thus they did not want to risk taking a personal guarantee at the time. The firm valued employee opinion that’s why they involved the employees at every decision making process.

2.What is the core problem or issue facing Jones and Nameste Solar?

Jones and the Namaste Solar faced the problem of financing. For example, Jones and his co-founders invested all their savings into the business but they still needed more. When they tried to get loans, the banks were not willing to lend to the start-up company as they knew this was a risky move for the company due to the economic recession that was being experienced in Colorado. The banks needed a personal guarantee yet Jones and the organization did not have and did not want to risk. The organization was undergoing through this hard time due to the high number of employees. The company was growing fast with no capital for expansion.

3.What criteria should the group use in reaching a decision?

Since the young firm had had been committed to sing a democratic, employee-owned and high engaging culture, the same system should be used by engaging its employees in the decision making process. The firm should use voting since voting was still part of engaging the employees through consensus.

4.What are the key advantages and disadvantages of the options in the case as Path A, B and C?

In Path A that involved selling the whole firm, would have brought in fresh infusion of capital, the firm would hire more people, reach more customers and install more solar powers. This would leave the employees overworked and stressed due to the high demand needed from them by their job. In Path B that involved selling part of the firm would also guarantee fresh infusion of capital. The firm would also firm hire more people, reach more customers and install more solar powers while maintaining control over the culture. However, this would continue the burnout effect. In Path C that involved not selling the firm, offered consistency to the values of the company. This was very disadvantageous as the company would end up bankrupt.

5.What do you think the company should do next?

The company should consider ways of getting capital without compromising the values and culture of the firm. Since the company’s values are to care for the community and ourselves which ensures the health of the employee, then the firm should consider those who feel stressed out and overworked and lay them off. This would be good for the health of the employees and would save some capital for the company. Similarly, the firm should stop hiring of more workers than it can afford to pay without compromising the firms’ financial status.