Introduction

The management of business strategy mainly depends upon the business operations and functions conducted by the organisation. Every organisation needs to evaluate the strategies that help them to achieve their competitive benefits and improve the internal business operations accordingly. This report is based on identifying the external market factors that influence the strategic planning of Thermax organisation. Thermax organisation is the Indian-based energy organisation that is dealing in energy production sector. With the support of this report it becomes easy to evaluate the success factors for the organisation that can be achieved by aligning the corporate strategy which the business operations. The purpose of this report is to evaluate the issues that may affect the success factor criteria as well as strategies to mitigate the issues. This report will deliver the strategic proposal plan for the organisation through which they can achieve success factor, which are important to grow in the competitive market.

Component 1

Conduct a PEST analysis

Political factor (T): Policymakers’ propensity to meddle in the corporate environment is captured by this concept. Many political actors have contributed to determining the numerous factors that would affect the productivity of Thermax Limited Business in a specific market sector or race. Thermax is subject to a wide range of restrictions depending on the countries in which it operates (Przychodzen and Przychodzen, 2020). Since then, India as well as other rising nations have made changes to legislation governing both market entrance and how enterprises in the energy sector may function in their respective markets.

Economic factor (T): Include factors outside of the government’s control that affect the market. The revenue and overall market are influenced by economic considerations. A number of variables have a significant influence on development and supply of a product. This would include: inflation, asset prices, the trade recession, savings rate, business taxes, distribution channels, as well as foreign currency rates, among others (Destek and Sinha, 2020). The rising disparity throughout the community will have a negative influence on consumer confidence, which in turn will have a severe influence on consumer purchase. Economic growth in India has a strong impact on Thermax’s results there. Growth over the past two decades has been effective by increased globalisation and the use of community resources to serve customers throughout the world.

Social factor (O): In India, this gap between rich and poor is increasing. Of the previous 6-7 centuries, this has changed the power base in culture. Safety regulations are becoming ineffective as a result of increased liberalisation (Becker et.al 2017). Thermax must avoid these mentalities because the price of loss in India was too high. When it comes to energy generation, clients in India choose experiential goods over conventional value propositions. This trend may be used by Thermax to create products that improve consumer satisfaction.

Technological factor (O): Energy manufacturing and service costs are falling rapidly thanks to new technologies. More flexibility is needed in Thermax’s distribution network so that it can satisfy client requests while also keeping costs in check. India should increase spending on R&D both at the macro and local levels (Park et.al. 2017). There is a disruptive environment if both public and private parties are investing resources in the development of innovative solutions.

Apply Porter’s 5 Forces

New entrance threat: New entrants thread on Thermax organisation is low as they maintain stable position in the market due to which impact of new entrepreneurs may not affect its existence. This sector is not considered as the attractive sector due to which few of the people think about this entrepreneur business to start their career.

Supplier’s bargaining power: The bargaining power of supply and impact on the Thermax organisation is medium because there are number of suppliers available in the market due to which using negotiation power is less for all the suppliers (Irfan et.al. 2019). This thread can be minimised by improving the procurement process related to raw material in the context of market price.

Buyer’s bargaining power: Bargaining power of buyers in the context of energy production organisation is high because there are other organisations, which are providing the services at market price. The domestic organisations including BHEL and Suzlon are providing latest energy production services to the client customers.

Substitute threat: Substitute threat for Thermax organisation is medium because they are currently dealing in energy production and combined heat due to which they tried to maintain stable position in the market (Routet.al. 2018). On the other side, technological threat maybe faced by Thermax organisation but that can be improved by adopting new equipment’s.

Rivalry threat: Industry rivalry related to energy organisation is quite high as there are many organisations, which are dealing in the same industry. BHEL is one of the high competitors of Thermax organisation as they are providing number of product and services related to energy consumption.

Develop survival and success factors for the industry

Many areas of analysis have used the success factors technique to discover the most important factors affecting an industry’s success. The economy is critical to the progress of any nation. Increased use of alternative energy sources, for particular, is an important factor in a country’s economic success. Money, economic output, valuations, and exporters balances are all economic factors (Luthra et.al. 2018). Renewable sources have become alternate to non -renewable energy because of the rise in the cost of non – renewable energy. The term “environment” refers to everything in and around us that is active and may have an effect on our health as well as the wellbeing of other life forms like living things. Emissions of carbon dioxide, environmental damage, land usage requirements, and the development’s effect on the ecosystems are causes of natural issues that influence the sustainability of renewable energy sources. This is possible that social elements such as public trust in renewable technology, attitudes, views, and interests develop over time.

These social variables that contribute to the effectiveness of energy projects include public interest, social acceptability, job development, citizen involvement, customer trust, and private sector engagement (Raut et.al. 2017). Advances with in resource development business are often influenced by social considerations. Technology is a new kind of electrical energy material, which enhances existing measures. Technological advancements are crucial for an energetic business, since they might affect how the sector develops. Examples of technological variables that influence the success with renewable energy include R&D, technical, inventive, advanced, new, as well as information technology. When it comes to establishing energy projects, state support is crucial, particularly in early phases of technological development, since it helps to ensure the success of such initiatives. Renewable electricity installation success is influenced by government policies, politics, financial assistance, as well as Feed-in-Tariff programme.