enron dabhol case study analysis

Brought to you by:

Enron and The Dabhol Power Company

By: Andrew C. Inkpen

In September 2001, Houston-based Enron Corporation (Enron) was embroiled in a long-running dispute with various levels of government in India. The dispute involved the Dabhol Power Company (DPC), a…

• Length: 18 page(s)
• Publication Date: May 21, 2002
• Discipline: General Management
• Product #: TB0159-PDF-ENG

What's included:

• Teaching Note
• Educator Copy

$4.95 per student

degree granting course

$8.95 per student

non-degree granting course

Get access to this material, plus much more with a free Educator Account:

• Access to world-famous HBS cases
• Up to 60% off materials for your students
• Resources for teaching online
• Tips and reviews from other Educators

Already registered? Sign in

• Student Registration
• Non-Academic Registration
• Included Materials

In September 2001, Houston-based Enron Corporation (Enron) was embroiled in a long-running dispute with various levels of government in India. The dispute involved the Dabhol Power Company (DPC), a 2,184 megawatt (MW) power project in the Indian state of Maharashtra. The dispute began in the mid 1990s. In April 1995, Enron began construction of a $2.8 billion power plant in the state of Maharashtra. In August 1995, the Maharashtrian government announced that the project was canceled based on the recommendations of a committee set up by the government to review the project. After the contract was renegotiated, construction resumed and Phase I was completed in 1999. In 2001, with Phase II of the project 95% complete, Enron announced that it would sell its DPC stake because of payment disputes with its sole buyer, the Maharashtra State Electricity Board (MSEB), and the failure of the Indian central government to honor its counter-guarantee.

Learning Objectives

This case can be used to illustrate market entry challenges in India, and could also be used in a section on political risk or in a regional business class on India. The case illustrates the problems facing a division of a large multinational company as it does business in a developing nation. It illustrates the difficulty of predicting and understanding local political conditions and coping with the threat of project cancellation or forced renegotiation.

May 21, 2002

Discipline:

General Management

Geographies:

Industries:

Energy and natural resources sector

Thunderbird School of Global Management

TB0159-PDF-ENG

We use cookies to understand how you use our site and to improve your experience, including personalizing content. Learn More . By continuing to use our site, you accept our use of cookies and revised Privacy Policy .

The Economic Times daily newspaper is available online now.

Enron-dabhol power project: supreme court closes case of alleged corruption.

A bench comprising CJI Gogoi and Justices Deepak Gupta and Sanjiv Khanna allowed the plea of Maharashtra government to close the case.

Read More News on

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Amid slackening revenue-growth for IT majors, there is a silver lining

What India’s most powerful investigative agency is about?

India Inc is under-reporting work-related injuries. Why?

A 1 pm mail, two top exits: Is IndiGo heading for a deep restructuring?

Zepto CEO Aadit Palicha doesn’t run the quick-commerce app. Then who does?

How this oil & gas stock found its roar back after years of silence

Find this comment offensive?

Choose your reason below and click on the Report button. This will alert our moderators to take action

Reason for reporting:

Your Reason has been Reported to the admin.

To post this comment you must

Log In/Connect with:

Fill in your details:

Will be displayed

Will not be displayed

Share this Comment:

Stories you might be interested in

Backstory: The Dabhol conspiracy and Enron's India misadventure

In the backstory, cnbc-tv18 columnist sundeep khanna writes how a key infrastructure project, the dabhol power project in the 1990s, got mired into controversies. the project became a case study in how corrupt politicians, foreign diplomats and pliant bureaucrats conspire with large mncs to turn a project unviable..

Fern Fort University

Enron development corp.: the dabhol power project in maharashtra, india (b) case study analysis & solution, harvard business case studies solutions - assignment help.

Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (B) is a Harvard Business (HBR) Case Study on Global Business , Fern Fort University provides HBR case study assignment help for just $11. Our case solution is based on Case Study Method expertise & our global insights.

Global Business Case Study | Authors :: Krishna G. Palepu, V. Kasturi Rangan, Sarayu Srinivasan

Case study description.

A new administration/government takes power in a state in India and cancels a power project agreed upon/created by the previous state government and an American-based energy company. The project cancellation is based on allegations of irregularities, exorbitant costs, and political pressures.

Economy, Government, Marketing, Negotiations

Order a Global Business case study solution now

To Search More HBR Case Studies Solution Go to Fern Fort University Search Page

[10 Steps] Case Study Analysis & Solution

Step 1 - reading up harvard business review fundamentals on the global business.

Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review (HBR) fundamentals on the Global Business. Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.

Step 2 - Reading the Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (B) HBR Case Study

To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. My case study strategy involves -

• Marking out the protagonist and key players in the case study from the very start.
• Drawing a motivation chart of the key players and their priorities from the case study description.
• Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic.
• Evaluate each detail in the case study in light of the HBR case study analysis core ideas.

Step 3 - Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (B) Case Study Analysis

Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study analysis by following Fern Fort University step by step instructions -

• Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
• HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to mark out the organization's culture, its people priorities & inhibitions.
• Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the progressive challenges the company is facing in the case study.

Step 4 - SWOT Analysis of Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (B)

Once you finished the case analysis, time line of the events and other critical details. Focus on the following -

• Zero down on the central problem and two to five related problems in the case study.
• Do the SWOT analysis of the Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (B) . SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.
• SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (B)
• SWOT analysis will also provide a priority list of problem to be solved.
• You can also do a weighted SWOT analysis of Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (B) HBR case study.

Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (B)

In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

Step 6 - PESTEL, PEST / STEP Analysis of Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (B)

Another way of understanding the external environment of the firm in Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (B) is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.

Step 7 - Organizing & Prioritizing the Analysis into Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (B) Case Study Solution

Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

• Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
• Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the company core competency is design differentiation.
• Case study solutions can also provide recommendation for the business manager or leader described in the business case study.

Step 8 -Implementation Framework

The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives -

• Detailed understanding of the case,
• Clarity of HBR case study fundamentals,
• Analyzed case details based on those fundamentals and
• Developed an ability to prioritize recommendations based on probability of their successful implementation.

Implementation framework helps in weeding out non actionable recommendations, resulting in awesome Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (B) case study solution.

Step 9 - Take a Break

Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.

Step 10 - Critically Examine Enron Development Corp.: The Dabhol Power Project in Maharashtra, India (B) case study solution

After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.

Previous 5 HBR Case Study Solution

• RWE and the Proposal for a German Electricity Regulator, Spanish Version Case Study Solution
• Securing a City's Future Water Supply: Building a Reservoir in Charlottesville, Virginia Case Study Solution
• Argentina's YPF Sociedad Anonima (D): The International Platform Case Study Solution
• Suzion Energy Ltd. Case Study Solution
• Dharavi: Developing Asia's Largest Slum (A) Case Study Solution

Next 5 HBR Case Study Solution

• Argentina's YPF Sociedad Anonima (B1) Case Study Solution
• Coming to Grips with Deregulation: Bay State Gas Case Study Solution
• India's Negotiations Concerning the Dabhol Power Company 2001-2005 Case Study Solution
• Busang: River of Gold (B) Case Study Solution
• Unified Energy System of Russia Case Study Solution

Special Offers

Order custom Harvard Business Case Study Analysis & Solution. Starting just $19

Amazing Business Data Maps. Send your data or let us do the research. We make the greatest data maps.

We make beautiful, dynamic charts, heatmaps, co-relation plots, 3D plots & more.

Buy Professional PPT templates to impress your boss

Nobody get fired for buying our Business Reports Templates. They are just awesome.

• More Services

Feel free to drop us an email

• fernfortuniversity[@]gmail.com
• (000) 000-0000

• Order Status
• Testimonials
• What Makes Us Different

Enron and The Dabhol Power Company Harvard Case Solution & Analysis

Home >> Management Case Studies >> Enron and The Dabhol Power Company

In September 2001, Houston-based Enron Corporation (Enron) was embroiled in a long-running dispute with the various levels of government in India. The dispute involved Dabhol Power Company (DPC), 2184 megawatt (MW) power project in the Indian state of Maharashtra. The dispute began in the mid-1990s. In April 1995, Enron began construction of $ 2.8 billion power plant in Maharashtra. In August 1995, Maharashtrian government announced that the project was canceled on the basis of recommendations of the commission established by the Government to review the draft. Once the contract has been revised, construction resumed, and the first phase was completed in 1999. In 2001, the second phase of the project is made by 95%, Enron announced that it would sell its stake because the DPC payment dispute with its sole customer, Maharashtra State Electricity Board (MSEB), and the Indian central government's refusal to honor its counter-guarantee . This study Thunderbird Case. "Hide by Andrew C. Inkpen Source: Thunderbird School of Global Management 18 pages. Publication Date: May 21, 2002. Prod. #: TB0159-PDF-ENG

Related Case Solutions & Analyses:

Hire us for Originally Written Case Solution/ Analysis

Like us and get updates:.

Harvard Case Solutions

Search Case Solutions

• Accounting Case Solutions
• Auditing Case Studies
• Business Case Studies
• Economics Case Solutions
• Finance Case Studies Analysis
• Harvard Case Study Analysis Solutions
• Human Resource Cases
• Ivey Case Solutions
• Management Case Studies
• Marketing HBS Case Solutions
• Operations Management Case Studies
• Supply Chain Management Cases
• Taxation Case Studies

More From Management Case Studies

• Pixtech, Inc
• Managing Inventories--Reorder Point Systems
• Alex Sharpes Portfolio
• Hisense-Hitachi Joint Venture: Expanding in Southeast Asia
• Beef Noodle Casserole
• Umpqua Bank: Managing the Culture and Implementing the Brand
• Managing Creativity in Luxury Fashion Houses: Raf Simons at Dior

Contact us:

Check Order Status

How Does it Work?

Why TheCaseSolutions.com?

Product details

Don't have an account? Sign up now

Already have an account login, get 10% off on your next order.

Subscribe now to get your discount coupon *Only correct email will be accepted

(Approximately ~ 0.0 Page)

Total Price

Thank you for your email subscription. Check your email to get Coupon Code.

Enron and the Dabhol Power Company Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of Enron and the Dabhol Power Company Case Solution

The Enron and the Dabhol Power Company case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Enron and the Dabhol Power Company case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Enron and the Dabhol Power Company case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the Enron and the Dabhol Power Company case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of Enron and the Dabhol Power Company Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Enron and the Dabhol Power Company is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the Enron and the Dabhol Power Company HBR Case Study

The objective of the case should be focused on. This is doing the Enron and the Dabhol Power Company Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

• In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
• The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
• Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of Enron and the Dabhol Power Company

An important tool that helps in addressing the central issue of the case and coming up with Enron and the Dabhol Power Company HBR case solution is the SWOT analysis.

• The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Enron and the Dabhol Power Company.
• Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the Enron and the Dabhol Power Company Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for Enron and the Dabhol Power Company

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Enron and the Dabhol Power Company operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

• These are the threats that the industry faces due to new entrants.
• It includes the threat of substitute products.
• It includes the bargaining power of buyers in the industry.
• It includes the bargaining power of suppliers in an industry.
• Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of Enron and the Dabhol Power Company

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

• The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
• Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
• These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the Enron and the Dabhol Power Company case solution.

VRIO Analysis of Enron and the Dabhol Power Company

This is an analysis carried out to know about the internal strengths and capabilities of Enron and the Dabhol Power Company. Under the VRIO analysis, the following steps are carried out:

• The internal resources of Enron and the Dabhol Power Company are listed down.
• Each of these resources are assessed in terms of the value it brings to the organization.
• Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
• Each resource is assessed whether it could be imitated by competition easily or not.
• Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of Enron and the Dabhol Power Company

The Value chain analysis of Enron and the Dabhol Power Company helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

• The firm’s primary and support activities are listed down.
• Identifying the importance of these activities in the cost of the product and the differentiation they produce.
• Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow Enron and the Dabhol Power Company to increase its competitive advantage.

BCG Matrix of Enron and the Dabhol Power Company

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

• Identify the relative market share of each strategic business unit.
• Identify the market growth of each strategic business unit.
• Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
• Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the Enron and the Dabhol Power Company BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of Enron and the Dabhol Power Company

Ansoff Matrix is an important strategic tool to come up with future strategies for Enron and the Dabhol Power Company in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

• The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
• The organization can develop new products for the existing market. This is known as product development strategy.
• The organization can enter new markets with its existing products. This is known as market development strategy.
• The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of Enron and the Dabhol Power Company

Enron and the Dabhol Power Company needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

• Analyse the company’s products and devise strategies to improve the product offering of the company.
• Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
• Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
• Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

Enron and the Dabhol Power Company Blue Ocean Strategy

The strategies devised and included in the Enron and the Dabhol Power Company case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of Enron and the Dabhol Power Company

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Enron and the Dabhol Power Company looks at the direct and indirect competitors within the industry that it operates in.

• This involves a detailed analysis of their actions and how these would affect the future strategies of Enron and the Dabhol Power Company.
• It involves looking at the current market share of the company and its competitors.
• It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
• It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into Enron and the Dabhol Power Company Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Enron and the Dabhol Power Company case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

• The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
• The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Enron and the Dabhol Power Company Case Study Solution that the business unit should focus on costs.
• The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and Enron and the Dabhol Power Company case answers should be written down in the Enron and the Dabhol Power Company case memo, clearly identifying which part shows what. The Enron and the Dabhol Power Company case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the Enron and the Dabhol Power Company HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Enron and the Dabhol Power Company is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of Enron and the Dabhol Power Company Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

• A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
• It shows that one has been clarified with the HBR fundamentals on the topic.
• It shows that the details provided in the case have been properly analysed.
• It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
• The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Enron and the Dabhol Power Company Harvard case is complete and properly answered.

Recommendations and Action Plan for Enron and the Dabhol Power Company case analysis

For Enron and the Dabhol Power Company, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

• Enron and the Dabhol Power Company should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
• Enron and the Dabhol Power Company should enhance the value creating activities within its value chain.
• Enron and the Dabhol Power Company should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
• To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

Baron, E. (2015). How They Teach the Case Method At Harvard Business School. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/

Bartol. K, & Martin, D. (1998). Management, 3rd edition. Boston: Irwin McGrawHill.

Free Management E-Books. (2013a). PESTLE Analysis. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf

Gupta, A. (2013). Environment & PEST analysis: an approach to the external business environment. International Journal of Modern Social Sciences, 2(1), 34-43.

Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). Strategic attributes and performance in the BCG matrix—A PIMS-based analysis of industrial product businesses. Academy of Management Journal, 25(3), 510-531.

Hill, C., & Jones, G. (2010). Strategic Management Theory: An Integrated Approach, Ninth Ed. Mason, OH: South-Western, Cengage Learning.

Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), 196-206.

IIBMS. (2015). 7 Effective Steps to Solve Case Study. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/

Kim, W. C., & Mauborgne, R. (2004). Blue ocean strategy. If you read nothing else on strategy, read thesebest-selling articles., 71.

Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson education.

Kulkarni, N. (2018). 8 Tips to Help You Prepare for the Case Method. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method

Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). A fuzzy quantitative VRIO-based framework for evaluating organizational activities. Management Decision, 50(8), 1396-1411.

Nixon, J., & Helms, M. M. (2010). Exploring SWOT analysis – where are we now?: A review of academic research from the last decade. Journal of Strategy and Management, 3(3), 215-251.

Panagiotou, G. (2003). Bringing SWOT into Focus. Business Strategy Review, 14(2), 8-10.

Pickton, D. W., & Wright, S. (1998). What's swot in strategic analysis? Strategic Change, 7(2), 101-109.

Porter, M. E. (2001). The value chain and competitive advantage. Understanding Business Processes, 50-66.

Porter, M. E. (1985). Competitive advantage: creating and sustaining superior performance (Vol. 2). New York: Free Press.

Porter, M.E. (1979, March). Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy

Rastogi, N., & Trivedi, M. K. (2016). PESTLE Technique–a Tool to Identify External Risks in Construction Projects. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388.

Rauch, P. (2007). SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. European Journal of Forest Research, 126(3), 413-420.

Warning! This article is only an example and cannot be used for research or reference purposes. If you need help with something similar, please submit your details here .

9414 Students can’t be wrong

PhD Experts

Balazs Tetany

If you guys need the paper of any level as a research paper, report writing and dissertation. This service has experts as per your specifications. You can get whatever you want.

Mustafa Ryan

The paper was decent enough and the person wrote the assignment in a compelling way. Thank you very much!

All in all, I’m satisfied with this service. Honestly, I’m stunned how people are posting negative comments about this company. Thank you!

Violet Arlo

The expert was very great and delivered a great paper to me. This cheap paper writing service issued paper before the deadline and also free revision. Thanks!

Calculate the Price

(approx ~ 0.0 page), total price $0, next articles.

• ERP In Tosco (A) Case Analysis
• Nestlé Continuous Excellence (C): Operations And Beyond Case Analysis
• Erp In Tosco (A) & (B) Case Analysis
• Competitive Advantage Through Channel Management Case Analysis
• D'Aquino Quimica Do Brazil SA Case Analysis
• Enron's Demise: Were There Warning Signs? Case Analysis
• Innovation And Customer Service At Grupo Supermercados Wong: A Peruvian Success Story Case Analysis
• Destination Marketing: Branding Las Vegas Case Analysis
• Leading Across Cultures: China, 2004 Case Analysis
• Leading Across Cultures: India Case Analysis

Previous Articles

• CMM Compania Minera Montemorelos, SA Case Analysis
• Bayer AG: Children's Aspirin Case Analysis
• BAT Central America Case Analysis
• Tesco, Plc: 'From Mouse To House' In Online Grocery Retailing Case Analysis
• SF Corporation And Trade Finance Securitization Case Analysis
• Nick Jensen In Myland Case Analysis
• Korean Plastics Company: Factoring Export Receivables Case Analysis
• Japan Glass Company: Forfaiting Export Receivables Case Analysis
• International Pizza House In Brazil Case Analysis
• Hobart Corporation Case Analysis

Be a great writer or hire a greater one!

Academic writing has no room for errors and mistakes. If you have BIG dreams to score BIG, think out of the box and hire Case48 with BIG enough reputation.

Our Guarantees

Zero plagiarism, best quality, qualified writers, absolute privacy, timely delivery.

Interesting Fact

Most recent surveys suggest that around 76 % students try professional academic writing services at least once in their lifetime!

Allow Our Skilled Essay Writers to Proficiently Finish Your Paper.

We are here to help. Chat with us on WhatsApp for any queries.

Customer Representative

• Free Case Studies
• Business Essays

Write My Case Study

Buy Case Study

Case Study Help

• Case Study For Sale
• Case Study Service
• Hire Writer

Dabhol Case Study

Conclusion Overview: rhea Electricity Act was amended in March 1992 to provide incentives and a fixed component of 16% rate of return to the investors, following this act a delegation of central government officials visited the USA and I-J to woo the foreign investors and this in-turn instigated the confidence of foreign investors. This can be substantiated by several MOUSE being signed after the event. Contractual operational risk management/mitigation arrangements a.

Reduced Financial Risk Status of “Pioneer Project” Fast track projects: This project was categorized as a fast rack project and for such fast projects the central government decided not to follow the standard public tendering process instead it would negotiate with the Pips for individual projects. The rationale was that government was not in a strong negotiating position and therefore the financial risk to the Pips had to be reduced to entice them to invest in India.

We Will Write a Custom Case Study Specifically For You For Only $13.90/page!

Project Site of your choice Government’s invitation to visit India and investigate power plant development opportunities – Given a free hand to choose potential site. C. Response of Central rent Highly favorable response of Central Government and State Government officials in the Maharajah’s State Government to the proposal of Enron stating to build the largest of its kind gas fired power plant. D.

Formal MOM signed In May 1992 India invited Enron Corp. to explore the possibilities of building a large power plant in Maharajah’s and the following month a memorandum of understanding was signed.

In December 1993 Maharajah’s State Electricity Board MIMES) signed a power purchase agreement with a newly formed company called Oddball power corporation (DIP) where Enron held 80% of the equity and its two ratters, General Electric and International Generation company each held 10%. E. Fast paced clearance to proceed with the project rhea project went forward even though the World Bank team and the GO’s Central Electricity experts hinted on many irregularities in the agreement and that it was a one sided agreement in favor of Enron.

Speedy approval process by Foreign Investment Promotion Board asking the Central Electricity Authority to give clearance to the Oddball project without the detailed information on economic and technical clearance normally required. However, final clearance would still be necessary at a eater date. Fast paced clearance to proceed with the project: Major government approvals were in place by March, 1993. F. The Contract rhea power purchase contract itself was very rigorously designed and was supposed to give the Oddball decent commercial risk cover.

The Maharajah’s State Electricity Board is the sole purchaser of the Dip’s product – electricity. To mitigate the commercial risk DIP needed to sign a very binding power purchase agreement (APP) Ninth its customer. The first Power Purchase Agreement was signed between the DIP and MESS on 8th December 1993. The APP was renegotiated after the newly elected Maharajah’s state government scrapped the agreement in second quarter 1995.

Revised 20 year agreement was signed in November 1995 with final capacity of 2,184 MEW implemented in two phases, the first being 740 MEW.

At the time of signing the average cost of power was calculated to be around RSI 2. 4 per skew produced assuming 90% load. The APP was formulated as take-or-pay deal in forcing the MESS to buy or pay for 90% of the power DIP is able to produce. DIP was to receive capacity availability payments fixed with USED exchange rate plus variable fee for actual energy produced. In case of arbitration the court of London was to be used.

APP liabilities were guaranteed by the owner of MESS, the State of Maharajah’s, counter-guarantees were also provided by the Government of India.

G. Currency Risk Cove red APP adjectively transferred the currency risk trot C to MESS because most to the payments were tied to the USED and they were thus not influenced by the fluctuations in the currency market. Financial Protection in the form of guarantees signed by Central Government to assure Enron in the event that MESS was unable to make its aments. H.

Memorandum of Understanding (MOM) According to MOMS, Enron has to be paid the same amount regardless of the Maharajah’s State Electricity Board’s consumption of energy I. E.

MESS had to pay for energy produced by 90% capacity of the power plant even though its consumption Mould correspond a minor capacity. Case Question #2 Assuming that the measures for mitigating operational risks that underpinned the Oddball power project were a problem, discuss how Enron may have demonstrated ‘credible commitment” to the Oddball power project. Conclusion

Enron may have demonstrated “credible commitment” to the Oddball power project in the following ways: More accurate analysis of political risk rhea deal was criticized for its high cost, lack of competitive bidding, negative environmental impact, accusations of bribing etc. BGP/ Ship Seen made it a part of their election campaign to throw out Enron. Enron failed to understand that power and politics have a major role to play in permeating deals with governments. It should have done a better analysis of the political environment of India and analyses the impact of change in power.

The Power Purchasing Agreement between Enron and MESS was a secret deal and thus it created conflicts among politicians who are elected democratically. The communication and transparency were clearly lacking in this project. Enron should have been more transparent in dealing with the politicians in order to create an environment of confidence. Involvement of a local partner Enron was not familiar about the Indian situation. It should have involved a credible local partner in a Joint Venture in order to understand the Indian scenario, bureaucracy and government better.

Better Dealing of MOM & APP .

Enron should have mentioned the specific details about the project costs (detailing the Civil costs, mechanical costs, electrical, instrumentation costs with further break Jp for engineering, procurement and construction) as required by the Indian Law. 2. Enron should have set a competitive pricing for the generation of electricity. 3. Enron should have mentioned in MOM when the 20 year contract would begin and when the electricity supply or payment would commence.

4. Enron to secure all the approvals taken from federal and state approvals. 5.

Enron should have negotiated he APP in such a way that it would supply part of its power supply (say 40%) to MESS and remaining part to other power deficit states. 6. Considering the fore risks, Enron should have dealt the APP in INNER instead of US dollar.

7. Enron may also have considered merchant power trading (variable unit rate of power based on demand) n the APP instead of going for only fixed pricing irrespective of demand. 8. Enron should have shown its credibility of the project by show casing its usage of technological and efficient equipment in producing the electricity over the peers.

Case Question #3 Suggest approaches to manage risks in an unstable political and institutional environment associated with non-recourse/limited recourse finance.

Conclusion Mitigating political risks ay including the government in the deal in order to gain access to the Indian market the venture kept a potential threat close to it. As government has a stake in the denture, they should have done everything to keep it afloat. Unfortunately for Enron, their partner’s other interests got in the way.

Questions that arise for the case are Neither Enron was fully aware of the financial credibility of India in the international arrest, whether they had considered alternative sources of financing and the problems with the feasibility report that Enron originally used (a report for the World Bank revealed doubts about it). The problem could have been solved if the central government would have allowed its own utilities like the Power Trading Corporation to buy power from Oddball, so that it could have reduced its dependence on MESS.

However, central utilities were as reluctant to buy high cost power as MESS.

Possibilities for Enron in avoiding the political risks in the first place are involving the Nor Bank, the Inter-American Development Bank or some other multilateral financing agency in the project more strongly by borrowing from them, through thorough gauging of the environment and political situation and adapting to the circumstances. The arrangements with the host country government were not sufficient to reduce substantially, or even eliminate, the political risk.

The secrecy of the APP creates conflicts with the deals with the politicians that are elected democratically. Thus communication and transparency are critical for the success of project. However, there were several problems on the customer’s side.

Solutions loud be making Subs commercially autonomous, profit-seeking bodies, making reforms in their political economy and guidelines, promoting competition to get better deals by changing the mind-set – invite competitive bids only for the price of power and letting private plant operators sell power directly to customers.

Mitigating economical risks Rigid contractual framework dealt with most of the commercial risks adequately. Failures in invoking guarantees can be considered more as legal or political than as economical risks. However the failure of MESS, the customer, is part of the commercial risk – there is no solvent customer. DIP could have dealt with MESS liquidity risk by for example negotiating the APP to include clauses giving DIP right to sell all excess electricity to other customers.

As Enron has considerable knowledge in operating in the energy business it probably has skills needed by the Mess’s operative management. Enron could have demanded a position in the MESS or at least required it to regularly give status report and give some means of influence or clauses of required financial status of the customer. By these arrangements the Enron could have ensured its customer’s ability to pay bills and ask for more.

Related posts:

• Case Study on California Energy Crisis
• MESC Case study
• Enron Corporation and Anderson case study
• French consortium Case Study
• Case Study on Illegal Agreement
• Case Study on Financial Risk
• Free Essay on Project Management Case Study: Yorkshire House Foods

Quick Links

Privacy Policy

Terms and Conditions

Testimonials

Our Services

Case Study Writing Service

Case Studies For Sale

Our Company

Welcome to the world of case studies that can bring you high grades! Here, at ACaseStudy.com, we deliver professionally written papers, and the best grades for you from your professors are guaranteed!

[email protected] 804-506-0782 350 5th Ave, New York, NY 10118, USA

Acasestudy.com © 2007-2019 All rights reserved.

Hi! I'm Anna

Would you like to get a custom case study? How about receiving a customized one?

Haven't Found The Case Study You Want?

For Only $13.90/page

Enron And The Dabhol Power Company Case PESTEL Analysis

Home >> Darden >> Enron And The Dabhol Power Company >> Pestel Analysis

Enron And The Dabhol Power Company Case Study Analysis

Enron And The Dabhol Power Company's external atmosphere would be studied with the PESTEL framework (appendix 1) for highlighting the market's Political, Economic, Social, Technological, Environmental as well as Legal environment while the level of rivalry in the Taiwanese sector would be examined under Concierge's five pressures analysis (appendix 2). Industry forces such as the negotiating power of the buyer and also provider, the danger of brand-new entrants and replacements would be highlighted to recognize the level of competition.

Political Factors:

Political factors have actually played the most substantial functions in the development of Taiwan's Enron And The Dabhol Power Company sector in the type of human source growth, innovation advancement as well as setting up of institutes for moving modern technology. In addition to these factors, a 5 year strategy for the development of submicron modern technology was initiated by the government in 1990 which included development of laboratories for submicron advancement in enhancement to the above discussed functions.

Economic Factors:

The truth that the Enron And The Dabhol Power Company industry is going through an out of balance need and supply situation is not the only financial issue of the market. The excess supply in the market is followed by a cost which is less than the cost of Enron And The Dabhol Power Company which has actually led to capital problems for producers. Economic crisis is a major concern in the sector because it can set off reduced production. Improvements in efficiency degrees can cause raised production which leads to recession once more as a result of excess supply and low need causing closure of firms because of low revenue. The Enron And The Dabhol Power Company sector has actually experienced economic downturn thrice from 1991 to 2007 suggesting that there is a high possibility for economic downturn due to excess supply and low earnings of firms.

Social Factors:

Social factors have likewise contributed in the direction of the development of the Enron And The Dabhol Power Company industry in Taiwan. The Taiwanese federal government has actually concentrated on human funding growth in the sector via trainings aimed at boosting the knowledge of sources in the market. The launch of the Semiconductor Institute in 2003 for training and creating ability is an example of the social efforts to improve the industry. Even though modern technology was imported, obtaining sources familiar with the innovation has been done by the government. Social efforts to boost the picture as well as high quality of the Taiwanese IC sector can be seen by the reality that it is the only sector which had professionally built divisions of labor worldwide.

Technological Factors:

There are still some technical issues in the Enron And The Dabhol Power Company market especially as Enron And The Dabhol Power Company suppliers in Taiwan do not have their very own modern technology and also still depend on foreign technical partners. The federal government's involvement in the industry has actually been focusing on changing the Enron And The Dabhol Power Company industry to minimize this dependency. Leading firms in Taiwan like Powerchip has actually made critical partnerships with international companions like Elpida from Japan. However, there are technological constraints in this configuration specifically as international governments like the Japanese governmentis hesitant to move innovation.

Environmental Factors:

A general testimonial of the atmosphere suggest that Taiwan is a complimentary area for Enron And The Dabhol Power Company production as noticeable by the convenience in capability expansion in the Enron And The Dabhol Power Company industry. The truth that the region provides manufacturing abilities better strengthens this monitoring.

Legal Factors:

The legal environment of Enron And The Dabhol Power Company has concerns as well as opportunities in the type of IP civil liberties and also legal contracts. A company has the lawful security to secure its copyright (IP), handling as well as technology which can increase the reliance of others on it. The Enron And The Dabhol Power Company market also provides a high value to legal contracts as evident by the fact that Micron's passion in Enron And The Dabhol Power Company might not appear because of the previous firm's lawful contract with Nanya and Inotera.

PESTEL Analysis for Enron And The Dabhol Power Company Case Study Solution

• Search Search Search …
• Search Search …

Enron and The Dabhol Power Company

Subjects Covered Energy

by Andrew C. Inkpen

Source: Thunderbird School of Global Management

18 pages. Publication Date: May 21, 2002. Prod. #: TB0159-PDF-ENG

Enron and The Dabhol Power Company Harvard Case Study Solution and HBR and HBS Case Analysis

Related Posts

You may also like

Subjects Covered Entrepreneurs Leadership development Managing people Social enterprise Values Vision by Joshua D. Margolis, Mark Wetzel Source: Harvard Business School 29 […]

Time for Design

Subjects Covered Creativity Managing creativity & innovation Organizational design Thinking by Jeanne M. Liedtka, Henry Mintzberg Source: Rotman School of Management 6 […]

Playgrounds and Performance: Results Management at KaBOOM (C)

Subjects Covered Accountability Balanced scorecard Board of directors Growth strategy Performance management Performance measurement Social enterprise by Herman B Leonard, Marc J. […]

Whats the BIG Idea (A)

Subjects Covered Entrepreneurship Inventions by Clayton M. Christensen, Scott D. Anthony Source: Harvard Business School 22 pages. Publication Date: Nov 14, 2001. […]

Case Study Solutions

Enron and The Dabhol Power Company

Subjects Covered Energy

by Andrew C. Inkpen

Source: Thunderbird School of Global Management

18 pages. Publication Date: May 21, 2002. Prod. #: TB0159-PDF-ENG

Enron and The Dabhol Power Company Harvard Case Study Solution and HBR and HBS Case Analysis

Clients Who Bought This Case Solution Also Bought: