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Group Project: VoltSpot

Pedro Carmona, Ruben Theunissen, Bruno Moulheres

Gus Machado College of Business St. Thomas University

MAN-3600-01

Professor Nicholas Mathew

March 19th, 2023

Spain is a country located in southwestern Europe, bordered by the Mediterranean Sea to

the east and the Atlantic Ocean to the west. It has a diverse society, with a mix of different

cultures and ethnicities. The social environment in Spain is characterized by a strong emphasis

on family and community ties, with a rich history of art, literature, and music. The political

environment is a parliamentary monarchy, with a king as the head of state and a prime minister

as the head of government. Spain is divided into 17 autonomous regions, each with its own

government and legislative body.

The Spanish economy is the fifth largest in the European Union and is primarily driven

by the services sector, which accounts for around two-thirds of the country's GDP. Spain is also

a major producer of goods such as automobiles, chemicals, and pharmaceuticals. The economic

system in Spain is a mixed economy, with elements of both capitalist and socialist systems. The

government plays a significant role in the economy, but there is also a thriving private sector.

The majority of the population in Spain is Roman Catholic, although there are also

significant Muslim and Jewish communities. The demographics of Spain have been changing

over the past few decades, with an aging population and an increase in immigration from other

countries. The education levels in Spain are relatively high, with a literacy rate of nearly 99%.

Spain is ranked 28th in the world in terms of economic freedom, according to the

Heritage Foundation's Index of Economic Freedom. It has a relatively high level of social equity,

with a GINI index of 33.1. The government of Spain is a parliamentary monarchy, with the king

serving as a symbolic head of state and the prime minister as the head of government. It is

generally considered easy to do business in Spain, with a relatively open economy and a
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business-friendly environment. However, there are some challenges, including bureaucracy, high

levels of unemployment, and a complex tax system.

According to Hofstede's cultural dimensions, Spain is ranked relatively high in the

dimension of "masculinity" (meaning the society values competitiveness, assertiveness, and

success), while also having a relatively high score in the dimension of "uncertainty avoidance"

(meaning the society tends to avoid ambiguity, uncertainty, and risk). Spain is also ranked

relatively low in the dimension of "individualism" (meaning the society values collectivism,

cooperation, and social harmony) and has a moderate score in the dimension of "power distance"

(meaning the society has a hierarchical structure and values respect for authority).

In the GLOBE or 7d/Trompenaars cultural model, Spain is considered to be a

"particularistic" society, which means that relationships and context are more important than

rules and regulations. Spain is also considered to be a "neutral" society, which means that

emotional expression is not encouraged in public settings.

Our renewable energy solution that provides electric car charging stations, VoltSpot, may

fit well in the cultural framework of Spain, as there is growing awareness and concern about

environmental issues and sustainability. However, it is important to consider the specific cultural

factors in Spain, such as the relatively high uncertainty avoidance and collectivism, which may

impact the adoption and implementation of renewable energy solutions. It may be necessary to

provide clear and specific information about the benefits and advantages of electric cars and

charging stations, and to emphasize the collective benefits of using renewable energy sources.

Additionally, building strong relationships and partnerships with local communities and

businesses may be important for the success of the business.

There are a few ethical issues to consider regarding the business idea of VoltSpot

providing electric charging stations in Spain. One issue is the potential environmental impact of

manufacturing and operating the charging stations. While electric vehicles themselves are

considered more environmentally friendly than their gasoline-powered counterparts, there may

still be a significant carbon footprint associated with producing and installing charging stations.

It will be essential for VoltSpot to take steps to minimize its environmental impact through

sustainable sourcing of materials, energy-efficient operations, and responsible waste

management.

Another ethical issue to consider is the potential impact on local communities. As

VoltSpot expands its operations across Spain, it may encounter opposition from residents

concerned about the charging stations' impact on their neighborhoods. It will be necessary for

VoltSpot to engage in transparent and respectful communication with local communities to

address any concerns and ensure that the charging stations are installed in a manner that respects

local culture and values.

VoltSpot can adopt a sustainability-driven and community-focused approach to approach

these ethical issues. This approach would prioritize the environmental and social impact of the

business alongside profit, seeking to balance the three pillars of sustainability: environmental,

social, and economical. VoltSpot can engage in sustainable practices such as using renewable

energy sources for its operations, reducing waste, and adopting energy-efficient technologies.

The company can also prioritize community engagement and consultation, seeking to understand

and address the concerns of local communities.

Regarding ethical theory, a universalist approach is the best fit for

VoltSpot. Universalism is the ethical theory that applies moral principles universally across all

individuals and cultures. It emphasizes the importance of ethical principles such as respect for

human rights and the environment, regardless of cultural differences or individual preferences.

By adopting a universalist approach, VoltSpot can ensure that its business practices are

consistent with fundamental ethical principles and that it is operating in a manner that is

respectful and responsible to all stakeholders, including customers, employees, local

communities, and the environment.

Spain has similar laws to the U.S.'s Foreign Corrupt Practices Act (FCPA) to prevent

corruption and bribery. The Spanish Penal Code criminalizes active and passive bribery, as well

as the bribery of foreign officials. The Spanish Anti-Corruption Law establishes the legal

framework to prevent, detect and punish corruption in both the public and private sectors. This

law criminalizes various corrupt practices, including influence peddling, embezzlement, and

misuse of public funds. Additionally, the Spanish Companies Act requires companies to maintain

proper accounting records and internal controls to prevent corrupt practices.

In Spain, the government's fight against corruption and bribery is a top priority. Spain has

various agencies responsible for enforcing these laws, such as the Anti-Corruption Prosecutor's

Office, the National Police, and the Civil Guard. These agencies work to investigate and

prosecute cases of corruption and bribery.

Spain has robust legislation and enforcement mechanisms to prevent corruption and bribery

in business activities, including those related to VoltSpot's operations. It will be necessary for

VoltSpot to comply with all relevant laws and regulations in Spain to avoid any legal and ethical
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issues. The company should prioritize establishing a strong ethical culture, training its employees

regularly, and maintaining proper accounting and control systems to prevent corrupt practices.

As a company operating in the renewable energy sector in Spain, VoltSpot is committed to

conducting its business in a socially responsible and ethical manner. We strive to maintain high

ethical standards, promote sustainability, and respect the rights and dignity of all stakeholders.

To achieve these objectives, we have established the following code of conduct:

1. Compliance with Laws and Regulations VoltSpot is committed to complying with all

applicable laws and regulations in Spain, including those related to the environment,

labor, and anti-corruption. We will maintain a culture of compliance and ensure that our

employees are trained and informed of their obligations under the law.

2. Respect for Human Rights VoltSpot respects the human rights of all stakeholders,

including customers, employees, suppliers, and local communities. We will not tolerate

discrimination, harassment, or abuse in the workplace. We will promote equal

opportunities and diversity and respect the privacy and dignity of all individuals.

3. Sustainability and Environmental Responsibility VoltSpot is committed to promoting

sustainability and minimizing its environmental impact. We will strive to reduce our

carbon footprint, use renewable energy sources, and adopt energy-efficient technologies.

We will also promote responsible waste management and strive to minimize the use of

natural resources.

4. Ethical Business Practices VoltSpot is committed to conducting its business ethically and

transparently. We will not tolerate any form of corruption, bribery, or other unethical

practices. We will maintain accurate and transparent accounting records and avoid

conflicts of interest.
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5. Community Engagement VoltSpot recognizes the importance of engaging with local

communities and promoting their development. We will seek to understand and address

the concerns of local communities and promote their well-being. We will also respect

local customs and cultural heritage.

6. Health and Safety VoltSpot is committed to ensuring its employees' and stakeholders'

health and safety. We will provide a safe and healthy working environment and promote

the well-being of our employees. We will also prioritize the safety of our customers and

the general public.

7. Intellectual Property Rights VoltSpot respects the intellectual property rights of others

and will ensure that its products and services do not infringe on any third-party rights.

As a VoltSpot employee, you must uphold these values and principles and act under this code

of conduct. Any violations of this code will not be tolerated and may result in disciplinary action,

including termination of employment.

The best strategy we have considered is adopting a differentiation strategy for VoltSpot,

providing electric charging stations in Spain. This strategy involves creating a unique and

valuable offering that differentiates the company from its competitors. In VoltSpot's case,

differentiation can be achieved through several means:

1. Developing Innovative Charging Solutions: VoltSpot can differentiate itself by offering

innovative charging solutions unavailable in the market. For example, it can provide

high-speed charging stations, mobile charging units, or charging stations that use

renewable energy sources.

2. Superior Customer Service: VoltSpot can differentiate itself by providing superior

customer service that exceeds customer expectations. This can be achieved by offering
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24/7 customer support, user-friendly payment systems, and clean and well-maintained

charging stations.

3. Strategic Partnerships: VoltSpot can differentiate itself by partnering with key players in

the electric vehicle industry. For example, it can partner with vehicle manufacturers to

provide complete charging solutions or hotels to provide charging stations for guests.

By adopting a differentiation strategy, VoltSpot can command higher prices for its charging

solutions, as customers are willing to pay for the added value and unique features. Additionally,

it can establish a loyal customer base and protect itself from price competition from low-cost

providers.

In contrast, there are better approaches than a low-cost strategy for VoltSpot, as Spain's

electric charging station market is not price-sensitive. The market is driven by convenience,

accessibility, and value-added services, rather than price alone. Adopting a low-cost strategy

could result in lower profit margins and compromise the services' quality, harming the

company's reputation and customer loyalty. Therefore, a differentiation strategy is the best

approach for VoltSpot to succeed in Spain's highly competitive electric charging station market.

Here is an analysis of the electric charging station industry in Spain, to which VoltSpot

belongs:

1. The threat of new entrants: The electric charging station industry in Spain has a low

barrier to entry, as it is relatively easy for new players to enter the market. However, the

industry requires significant capital investment, which could deter some new entrants.

Additionally, the market is becoming increasingly saturated, with several players already

operating. Therefore, the threat of new entrants is moderate.

2. Bargaining power of suppliers: The electric charging station industry relies on suppliers

for equipment, technology, and maintenance services. However, the suppliers could be

more cohesive, and many alternative suppliers are available. Therefore, the bargaining

power of suppliers could be higher.

3. Bargaining power of buyers: The electric charging station's buyers are primarily electric

vehicle owners and operators. They have high bargaining power, as they have access to

several charging stations and can easily switch between providers based on the service's

price, quality, and convenience. Therefore, the bargaining power of buyers is high.

4. The threat of substitutes: The electric charging station industry's substitutes include

gasoline stations and other alternative modes, such as public transportation and personal

vehicles. However, the increasing demand for electric vehicles and government

incentives to promote electric vehicles reduce the threat of substitutes. Therefore, the

threat of substitutes is moderate.

5. Rivalry among existing competitors: Spain's electric charging station industry is highly

competitive, with several players offering similar services. The industry's key players

include ChargeNow, Endesa X, and Tesla. The competition is primarily based on the

quality of service, pricing, and accessibility. Therefore, the rivalry among existing

competitors is intense.

Key success factors for VoltSpot may include:

1. Strategic location: VoltSpot must select optimal locations for its electric charging

stations, such as highly populated areas, tourist destinations, and major highways.
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2. Innovative solutions: VoltSpot must offer innovative solutions that differentiate them

from its competitors, such as faster charging times, superior customer service, and user-

friendly payment options.

3. Strategic partnerships: VoltSpot must form partnerships with key stakeholders, such as

electric vehicle manufacturers, to promote their charging stations and increase usage.

4. Government incentives: VoltSpot must take advantage of incentives such as tax credits

and subsidies to reduce costs and increase profitability.

SWOT analysis for VoltSpot:

Strengths:

1. First-mover advantage in the electric charging station market in Spain.

2. Strong brand recognition.

3. High-quality and innovative charging solutions.

4. Strong relationships with electric vehicle manufacturers.

5. Support from the Spanish government to promote electric vehicles and charging

infrastructure.

Weaknesses:

1. Limited geographical coverage.

2. Limited financial resources for expansion.

3. Dependence on electric vehicle adoption rates.

Opportunities:

1. Growing demand for electric vehicles in Spain.

2. Potential to expand into other European countries.

3. Strategic partnerships with energy companies or electric utilities.

Threats:

1. Increasing competition from established players and new entrants.

2. Technological advancements could make charging stations obsolete.

3. Economic downturns or policy changes could reduce government incentives.

Possible VoltSpot competitors or rivals could include both local and global players. Local

competitors could include Spanish companies such as Endesa X, Iberdrola, and Repsol, which

have already established a presence in the electric charging station market. Global competitors

could include companies such as Tesla, ChargeNow, and E.ON, which have a global reach and

offer innovative charging solutions. VoltSpot must differentiate itself from competitors by

offering unique and innovative solutions, superior customer service, and strategic partnerships.

Foreign Direct Investment

The most suitable option for VoltSpot's entry strategy into the Spanish market would be a

foreign direct investment (FDI). FDI refers to a company investing directly in a foreign country

by establishing a subsidiary or acquiring an existing business there. In this case, VoltSpot would

establish a subsidiary in Spain to provide electric charging stations nationwide.

The reason for choosing FDI is that it allows VoltSpot to have complete control over its

operations in Spain, including its pricing, marketing, and distribution strategies. VoltSpot could

make quick decisions and respond rapidly to changing market conditions. Moreover, FDI would

enable VoltSpot to build a brand and reputation in Spain, which would help it to establish a

strong market presence. Here is how VoltSpot can apply the FDI approach to its entry strategy:

1. Conduct market research: VoltSpot must conduct thorough market research to identify

the potential demand for electric charging stations in Spain. This research should also
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cover competitor analysis, regulatory and legal requirements, and cultural differences that

may affect the market entry strategy.

2. Develop a business plan: VoltSpot should develop a comprehensive business plan that

outlines the investment required, projected revenue, and expected return on investment.

The program should also detail the legal and regulatory requirements for establishing the

business in Spain.

3. Establish a legal entity: VoltSpot needs to establish a legal entity in Spain to conduct

business. This can be achieved by either setting up a new company or acquiring an

existing one. Setting up a new company requires more time and effort, while developing

an existing one can provide a ready-made infrastructure and an established customer

base.

4. Build partnerships: Building strategic partnerships with local companies, such as electric

vehicle manufacturers, charging network operators, and utilities, can provide valuable

resources, including financial, technical, and operational support. It can also help

establish credibility in the market.

5. Choose optimal locations: VoltSpot should identify optimal locations for installing

charging stations based on population density, electric vehicle ownership rates, tourist

destinations, and transportation hubs. High-traffic areas like urban centers, airports,

shopping centers, and tourist destinations along the coast should be prioritized.

6. Offer competitive pricing: VoltSpot's pricing strategy should be competitive and

affordable to attract and retain customers. The pricing strategy should consider the cost of

electricity, maintenance, and charging equipment.

7. Provide excellent customer service: Customer service is crucial in the electric charging

station market. VoltSpot should ensure customers have a seamless experience when using

their charging stations. This includes providing reliable and fast charging services, easy

payment methods, and responsive customer support.

FDI has several advantages, including:

 Complete control over the business operations in the foreign market.

 Ability to leverage local resources and expertise.

 Better protection of intellectual property.

 Potential tax advantages.

 Increased access to the local market and customers.

The Advantages

The advantages of FDI are that it allows for complete control over the business

operations in the foreign country, including the ability to transfer technology, expertise, and

knowledge. Furthermore, FDI provides a long-term commitment to the market, enabling the

company to build a strong brand and reputation in the host country.

However, FDI also has some disadvantages, including:

 High initial investment costs.

 Higher risk due to unfamiliarity with the local market and culture.

 More significant regulatory and legal requirements.

 Political instability and currency exchange rate fluctuations.

The Disadvantages

The disadvantages of FDI are that it is a more expensive entry mode than exporting,

licensing, or franchising. Moreover, there are risks associated with the political and economic
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environment of the host country, as well as the cultural differences that may affect the company's

operations.

The various FDI kinds

FDI comes in two flavors: biological and inorganic. While inorganic FDI entails buying

out an existing company in the target nation, organic FDI involves investing money into already

established businesses. The bulk of foreign direct investment (FDI) into India has come from

five nations: Singapore, the US, Japan, the Netherlands, and Mauritius. There are two ways for

FDI to enter India: automatically and through the government. An Indian company or non-

resident is automatically exempt from requesting RBI or government approval. On the other

hand, prior authorization and approval are required for the government path. FDI is not allowed

in specific industries, including chit-fund investments, farmland and plantation work, nuclear

energy production, real estate and housing, gaming, lotteries, and betting businesses.

Advantages and Disadvantages of Entry modes:

 The advantages of market entry: The benefits of this strategy include boosting sales,

strengthening brand recognition, enhancing return on investment, raising product costs,

and creating more direct sales channels.

 The disadvantages of market entry: Limited growth potential: Certain entry modes, such

as exporting or licensing, may limit the company's growth potential in the new market.

For example, a company may be determined by the number of products it can export due

to transportation costs or regulatory restrictions.

Conclusion

Overall, VoltSpot's FDI entry strategy should be based on extensive research and careful

planning to ensure success in Spain's competitive electric charging station market. By building
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strategic partnerships, offering competitive pricing, and providing excellent customer service,

VoltSpot can establish itself as a reliable and trusted provider of electric charging solutions in

Spain. VoltSpot's entry strategy for the Spanish market would allow it to respond quickly to

changing market conditions and build a strong brand and reputation. While FDI is a more

expensive entry mode than other options, it provides a long-term commitment to the market,

which is necessary for building a successful business.

Organizational design

Organizational design refers to the framework of an organization's structure, systems, and

processes, which determine how tasks are divided and coordinated among employees to achieve

business goals. For VoltSpot, an organizational design that aligns with the business's objectives

would be essential for successfully implementing the business idea.

The basic building blocks of organizational structure include the division of labor, hierarchical

levels of authority, a span of control, and departmentalization. In VoltSpot's case, the division of

labor would involve the creation of different departments responsible for various tasks such as

operations, marketing, finance, and customer service. The hierarchical levels of authority would

establish the chain of command, indicating who reports to whom in the organization. The span of

control would determine the number of employees under a manager's supervision, while

departmentalization would define how functions are grouped to create departments.

Multinational companies

Multinational companies have different structural options, including global, international,

transnational, and multi-domestic structures. A global design involves centralizing decision-

making authority in a single location. In contrast, an international form involves decentralizing

decision-making authority to individual subsidiaries—a transnational structure balances

centralized and decentralized decision-making, focusing on achieving global efficiency and local

responsiveness. A multi-domestic design is like a multinational structure but focuses more on

local responsiveness.

VoltSpot, being a new business, could adopt a transnational structure that balances centralized

decision-making with a degree of decentralization to individual subsidiaries. This structure

would enable VoltSpot to have a global presence while still being responsive to local market

needs.

Terms of Coordination

In terms of coordination and control, multinational companies use various mechanisms to

achieve their business objectives, including standardization, formalization, and coordination.

Standardization involves creating uniformity in products and processes across different markets.

Formalization involves developing rules and procedures to guide employee behavior, while

coordination involves establishing communication channels among other departments.

VoltSpot could use coordination mechanisms such as cross-functional teams, regular meetings,

and project management software to facilitate communication and collaboration among different

departments. Regarding control mechanisms, VoltSpot could use formalization by establishing

standard operating procedures and performance metrics to evaluate employee performance and

ensure consistency in the delivery of services.

Conclusion

In conclusion, VoltSpot's organizational design would be critical in determining the

business's success. Adopting a transnational structure that balances centralized and decentralized

decision-making would enable VoltSpot to have a global presence while still being responsive to
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local market needs. Additionally, coordination and control mechanisms would ensure that

VoltSpot achieves its business objectives and delivers high-quality customer service.
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