CASE ANALYSIS ON

ORSTED

EXECUTIVE SUMMARY - STRATEGIC OVERVIEW

This is the case analysis on Danish multi-national power company, Ørsted. It is the huge energy
company in Denmark which is famous for electricity as a product since 15 years. The case has been
analyzed on the basis of its journey from transforming into a renewable energy business as an offshore
wind developer. The business has been set for making money out of green energy or renewal energy
that claims sustainability. The company has been making a strategic view point of generating electricity
or energy from the renewal sources of energy by the end of 2040.

However they have been so successful that the company has been seen covering the global areas with
around generating 88% of the energy from their renewable sources. The largest offshore company
orsted has been spreading its value to the world. The main fortune that glowed up was that they hit
their target within an unexpected short period of time through the renewable source. Back the around
85% of the energy have been generated by the coals and 15% were generated by the renewable but
today’s scenario is something else. The company has been safeguarding the climatic conditions by
minimizing the carbon emission by great amount.

The Energy companies in other countries are following suit and investing in offshore wind farms,
according to Wright. Competition to buy existing farms or secure contracts to build new ones is ramping
up, with Ørsted bidding for sites in Germany and Holland. Meanwhile, governments across Europe are
exploring new offshore spots around the world with the perfect conditions (high wind speeds and
shallow waters) for wind farms.The strategic overview of the company is solely based on green energy.
These are the insights the company has been valuing so that the economic sustainability is observed in
the installation. The company has been aligned with SDG where the reduction of carbon emissions and
coal-based energy is ought to be omitted by 2025.

BUSINESS CASE FOR SUSTAINABILITY

Sustainability is something that the world now craves for. The environment in the current state is of
deteriorating due to constant use and consumption of energy with an extreme limit (Azarpour et al.,
2013). In the situation of maximizing the acidity of the climate, the company orsted has been targeting
to split the ratio of 85/15 where 85 is for renewable sourcing and 15% is conventional. The thought of
being coal-free energy production has been a supreme thought by the company in this green policy.

As per the global scenario and emergency of the climatic issue the company has to take certain action
for the emission of unnecessary carbon emissions in the atmosphere. The company has changed the
fossil fuel based company to renewable recognized company that makes them important, and earn
profit at a global basis (Sathaye et al., 2011). The company has off and on shore wind farms with solar
energy. The sustainability. For the installation of wind turbine, the company has sold many of its
businesses as of those hydro power plants and it has entered to largest offshore available.

For the ratio of 85/15 the company has targeted to be 98% with green in coming three years as its
sustainability flag. The company’s great initiative has made the environment quite healthier and
economic friendly. The sustainability has been aiding in economic support through low-cost installation
and user-friendly environment (Bocken et al., 2014). Phasing out the production of energy from coal has
been a point in creating sustainability. They claim that by 2020 they will have their sustainable energy
through biomass and create a history.

The business and employers of the company believes that their long-term effort of maintaining the
sustainable effort has some benefits for the business and market itself (Wesarat, Sharif and Abdul Majid,
2017). All the transformation of the company top-ranked is all because of shifting the fossil fuel based
company into the green energy based company. The company is itself using the green energy that
makes them even more reliable. The operations in the company is all based on sources of renewable
energy.

PRODUCT/SERVICE BREAKDOWN STRUCTURE AND SCHEDULED EXECUTION

The company has been seen involving with orsted wind power within on shore and offshore, orsted bio
energy and thermal power, and so on. The product that the company owned or run as a service before
was to phase out coal where they used coal as a source of energy back then (Vögele et al., 2018). But
then the development of onshore wind, solar energy and storage solutions had made it a success.
Talking about the offshore wind turbines, the company has developed a huge numbers than any others.
The company has planned to maximize the wind capacity to 9.9GW. There are many wind farms such as
Danish wind farms, UK, and Germany and so on. The product as bio energy is one of the product that
has been a form of bio mass. This is the transforming role of the company from fossil to green energy so
far.

The company has been in service provider for electricity utility and claimed to replace the coal fuel
totally into sustainable biomass. The main value is vested on green energy so far where the company is
all set to eradicate the carbon emission and produce green energy and sustained environment. The
company has decided with its structured breakdown of maintaining leadership in offshore wind projects
(Markard and Petersen, 2009). Being highly competitive when it comes to quality of emitting all the
harmful gases usage is the main priority. The company has stated to recycle by the use of renewable
source of energy and uplift the target by 2025.

The company has a service break down through the use of coal fired plant back then where the chaos of
climate usage was on point. Similarly, talking about the execution of the company, the project
management is seen too focused on the internal delivery by excluding the interest of the external stake
holders so far. The public relation and the service relations may be on risk. Next is the unbalanced
management of inventory that is leading to the lagging of the company service and poor execution
(Rehman Khan and Yu, 2019). Although the company has been seen expanding the market globally but
the success is seen overtaking within the domestic market only not more than the novel market.

CONCLUDING REMARKS

In conclusion, we must say the journey of the company is outstanding when it comes to commitment
because the company that stated the consumption of the coal will be eradicated by 2040 makes it
possible by 2021 where the renewable sourcing of energy has been done. The company has been
transformed into a green business from the old fossil fuel business for a global change. From 2006, we
have observed that the company has reduced its green house gas consumption by 72% and now in this
modern world the company provides clean energy to around 12 million people. The investments made
in the offshore wind projects have yielded a great result till date. The financial turnover has been seen
through the journey.

The company is proudly ranked as the most sustainable company till date. The company is all set to
create a strong competitive desire for all the competitors in supplying energy to the people. The
company has transformed its coal based projects into sustainable biomass in this era of global
surrounding. Although the company faces challenges from the employees, shareholders, customers and
outer forces for expanding the business in a better way of sustainability the pressure is much more
when it comes to building a green business.

To secure the supply and the financial leverages, the company has permission to various gas storage
facilities and the inclusion of diversified portfolio makes it more safer. Orsted has been the first
company to earn the top position in among the 69 companies due to renewal of its business model. The
company can approach its business in this global market with the aid of financial resources as well as the
physical resources too. The diverse portfolio has aided the company to help concentrating the wealth
that is the good sign. However, the brand awareness for the company is only vested on domestic
markets. Although it has its website in the internet but the professionalism for marketing still lacks.

The current disposable income of the customers can be re used to enhance the business model of the
company where the company can access the key to globalization where the customer demand is much
higher. The company must look up to the changing regulations and policies because the huge amount of
cost is levied on tax to be paid. Hence the company must keep an eye on it. The company must check on
the cost effective procedure along with green policy so that the long-term existence can be acquired.
The company is seen making commitment where it claims to make Europe climate-neutral by 2050. The
company has saved millions of lives each year by providing clean air where it assures that the energy
produced through is a savior. The reduction in the carbon emissions has help to enhance the bio mass
production and sustained environment.
References

Azarpour, A. et al. (2013) ‘A Review on the Drawbacks of Renewable Energy as a Promising Energy
Source of the Future’, Arabian Journal for Science and Engineering, 38(2), pp. 317–328. doi:
10.1007/s13369-012-0436-6.

Bocken, N. M. P. et al. (2014) ‘A literature and practice review to develop sustainable business model
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Markard, J. and Petersen, R. (2009) ‘The offshore trend: Structural changes in the wind power sector’,
Energy Policy, 37(9), pp. 3545–3556. doi: 10.1016/j.enpol.2009.04.015.

Rehman Khan, S. A. and Yu, Z. (2019) ‘Inventory Management’, in Strategic Supply Chain Management.
springer, pp. 109–138. doi: 10.1007/978-3-030-15058-7_5.

Sathaye, J. et al. (2011) ‘Renewable Energy in the Context of Sustainable Development’, in IPCC Special
Report on Renewable Energy Sources and Climate Change Mitigation. Cambridge University Press.

Vögele, S. et al. (2018) ‘Transformation pathways of phasing out coal-fired power plants in Germany’,
Energy, Sustainability and Society, 8(1), p. 25. doi: 10.1186/s13705-018-0166-z.

Wesarat, P., Sharif, M. Y. and Abdul Majid, A. H. (2017) ‘Role of Organizational Ethics in Sustainable
Development: A Conceptual Framework’, International Journal of Sustainable Future for Human Security,
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