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Table of Contents Internal Forces and Trends Considerations 3 External Forces and Trends Considerations: 4 Supply Chain Analysis 5 SWOT Table Summarizing the Findings 6 References: 7

Strategic Plan Part 2: SWOT Analysis Paper

Air Products and Chemicals Inc.

Internal forces can be relatively controlled by Air Products and Chemicals Inc. Strategy is the plan of action as presented in the business model. The strategy’s strength is that it offers room for business growth by offering a clear guideline on the course of action. On the other hand, the strategy may either fail either due to weakness in the formulation stage or due to poor implementation.

On the other hand, structures include the existing infrastructure. Air Products has a wide variety of structure both physical and technological. This is strength as the firm needs to make less investment. The weakness is that not all the structures are compatible. Besides, processes and systems include the leadership and the flow of activities. The renewable energy division is a subsidiary of a larger organization. Hence, it is bound to benefit from the existing systems within the firm.

In addition, resources refer to capital, labor, machine and equipment. All these play a critical part in the production process. The renewable energy has the strength in that it will share most of the resources with the other divisions at Air Products. Besides, the firm is large enough to sufficiently source the required resources. Essentially, goals refer to the objectives that the firm plans to attain. These provide key bearing to the activities of the division. The mission, vision and values of the division give it strength in addressing its aims and objectives.

Further, the strategic capabilities for the new division include access to the market, great research and innovation capacity and the ability to engage skilled manpower. Besides, Air Products culture based on the values such as sustainability, growth, conservation and care provide foundation for the new division as guided by the company’s leadership (Air Products, 2015).

However, some of the weaknesses may include lack of intellectual property rights. This may allow other stakeholders to duplicate ideas and innovations. Besides, most of the existing technologies may not support the new division’s operations. Besides, the regular innovations may add on the cost of production.

Air Products and Chemicals Inc. has very little control over the external environment. Economic factors include investment in the renewable energy sector. It is noted for instance, that developing economies have had more renewable energy investment than their developed counterparts (Finance, 2016). Besides, the global share of investment in the renewable energy sector held by the developing economies is on the rise. In addition, the overall investment towards the production of renewable energy doubled in 2015. This represents an opportunity for growth.

Also, legal and regulatory forces and trends are another important consideration for the renewable energy division. The legal environment influences the investment in the renewable energy sources. Policies, especially in the developing countries, remain a hindrance to the effective adoption of renewable energy. In most countries, there is no regulatory framework to guide the energy market. The electricity suppliers hence are unable to operate independently without government or consumer influence which is a threat to the sector.

In considering global forces, it is worth noting that for instance in 2015, the renewable energy sources made up 53.6% of the new power installations. The renewable energy sector’s increased contribution to the global energy represents a growth opportunity.

The technology in renewable energy sector is dynamically advancing every day. According to (Turchi, Ma, & Erbes, 2011), advancement in technology presents an opportunity for growth and innovation of better and more efficient energy production means O. the other hand, it poses a threat due to the possibility of the invested technology turning obsolete. In this regard, there has been rise on the innovation to increase efficiency and cut down on the production costs. For instance, the adoption of hybrid renewable energy systems is an opportunity for growth (Turchi, Ma, &Erbes, 2011). Innovation by other stakeholders however means that the firms have to be constantly innovative to avoid the threat of being overridden.

Social factors in the renewable energy sector where the new division at Air Products seeks to venture include the social acceptance of the technology. This presents an opportunity for growth with increased investment. There is the threat that the society may not positively receive the renewable energy (Rodriguez, 2012). In addition, environmental factor include the regulations by various organizations including UNEP which recommend the rolling out of renewable technology. The environmental friendliness of the renewable energy provides an opportunity for massive adoption of the technology. However, there is the threat that the aesthetic value may be lost for instance where a wind-farm is established.

In a competitive analysis, Air Products commands a significant market share. This gives the firm and the new division an opportunity to capitalize on the existing customers’ loyalty. On the other hand, there is the threat that specialized competitors may prove to be a challenge.

The renewable energy division at Air Products and Chemicals Inc. supply chain operations involve directly transacting with the clients. The strength being that it is possible to outsource and trade at a fairer price in the absence of middlemen. The weakness is the narrowed down supply chain which reduces variety. However, the chain provides opportunity for faster transactions and negotiations. The threat is that withdrawal of a supplier for instance may leave the company with fewer alternatives which may be costly to production process.

Air Products has been evolving and diversifying its operations. This is an effective way of adapting to change. Besides, research and innovation have ensured sustainability of ideas and operations. In order to develop and leverage core competencies and resources within the supply chain, it will be necessary to carry out greater partnerships both with suppliers and clients. This will enhance loyalty and commitment.