FOR WRITING KING

The renewable energy division seeks to be the next big venture for Air Products and Chemicals Inc. As with every business venture, it is necessary to have a strategic plan in place. This will help in aligning Air Products renewable energy division's activities to its vision and strategy. Besides, the strategic plan ensures that communications are improved both internally and externally. This is done through a scorecard which will also help Air Products to bench its performance against strategic goals. Therefore, it is important to consider the trends that characterize the renewable energy industry including concerns over the sustainability of the energy. This looks not only on the short term feasibility but the long term perspectives of the project. To attain this, several processes are carried which include simulating and accelerated life-time testing in order to develop the state-of-the-art technology. In this regard, it is important to note that these processes come at an additional cost of the production process.

Besides, another trend is that renewable energy investment overtook fossil fuel energy. This is an important trend which guarantees that the renewable energy sector is a worthwhile investment looking forward. Since the shift for the renewable energy is occurring in very short time spectrum, it makes the renewable energy division at Air Products dynamic. In addition, the trend foretells the potential that the industry has for growth. Besides, there is a trend where commercial and industrial customers have taken the lead in the renewable energy industry. This is seen both in terms of the investment in research and development of renewable energy technology and the customers for the renewable energy. Institutions and business premises are embracing the potential resourcefulness of the renewable energy sector.

Also, there are new sources of capital and financial products from private investors. The private sector is eyeing the renewable energy sector due to the greater returns projected. The insurance sector too is gaining confidence in the industry. There are more risk-transfer structures which have made it possible to minimize the level of risk by increasing the opportunity of getting lucrative returns from the investment. Another trend is that in the development of cross-technology, there is increased government funding. Governments of the world have become more sensitive to the global issues regarding traditional fossil fuel. In particular, global warming, sustainability, cost and global fuel crisis has seen a shift for the renewable energy.

Notably, distributed generation initiative has seen the renewable energy investment move away from the centralized power generation. Individual consumers hence can produce their energy. The decline in the cost of acquiring distributed energy generation equipment portends that a rapid advancement and eventual takeover by the renewable energy is imminent. Specially, assumptions made in the business model for Air Products’ renewable energy division include that the existing structures both the infrastructure and research capacity of the institution will sufficiently support the new venture. There are chances of failure of full compatibility. This would see the costs in the establishment of the division rise. It is further assumed that the policies and framework in the global adoption will be independently established for the renewable energy. It is not guaranteed that this will take place in a considerably realistic period.

Essentially, the risks associated with the venture include that technology easily runs obsolete. This would mean that there are recurrent costs in acquisition and upgrading to new technology. Another risk is the degree of social acceptance for the new technology. “There have been remote incidences of hostile reception of renewable technology by communities” (Rodriguez, 2012). For instance, the construction of windmills on land and offshore is seen as degrade on the aesthetic value of the natural scenery. Finally, there is the risk that the division’s strategy may fail at the implementation phase. However, robust planning is critical in mitigating these risks.