2020269

2020269

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Management)
Module Title: (e.g. Studying for Strategy Operations and Seminar 15
Business) Partnerships Group

Module Code: SG7001 Word Count

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except where clearly quoted and referenced, has been copied from
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INDUSTRY OVERVIEW:
Thermax Limited is an energy and environmental industry which is engaged in the
business of manufacture and sale of boilers, heating and cooling equipment, industrial
chemicals, and water and waste management equipment. It provides the solutions for
the energy and environment sector internationally.

Type Public
Industry Energy and environmental engineering
Founded 1980
Head quarter Pune
Area served around the globe 88 countries

Vision: SUSTAINABLE SOLUTIONS IN ENERGY & ENVIRONMENT.

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PRODUCTS: Boilers and turbines, steam accessories, water and waste management,
dust collector, heaters and many more.

COMPONENT 1
EXECUTIVE SUMMARY:
In component 1 of this report, we will be analysing energy and environment industry
with the help of PESTEL and porter’s five forces, resulting towards the success and
survival factor of the industry.

CONTENT:
Industry overview--------------------------------------------------1
Executive summary-----------------------------------------------2
PESTEL analysis--------------------------------------------------2-5
Porter’s five forces------------------------------------------------5
Survival factors----------------------------------------------------5
Success factors---------------------------------------------------6

PESTEL analysis on energy and environmental industry

TRENDS References
POLITICAL 1.globle trade wars between the major
nations like US, china and EU https://www.thebalance.com/trade-wars-
definition-how-it-affects-you-
Countries 4159973(Trade Wars and their Effect on
2. corruption between in organisation the Economy and You)
and with governments departments https://www.bbc.co.uk/bitesize/guides/
zxc2sg8/revision/1 (Energy supply and
consumption)

ECONOMIC 1.factories and offices are run using

energy. As countries develop https://www.thebalance.com/trade-wars-
definition-how-it-affects-you-
economically, they build more factories 4159973(Trade Wars and their Effect on
and offices for people to work in. the Economy and You)
2. imported fuel, raw material and

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machineries is expensive because of

high consumption.
SOCIAL 1. energy insecurity can cause conflict.
2. management of energy waste and
emission should be controlled to
protect public health
https://www.bbc.co.uk/bitesize/guides/
zxc2sg8/revision/1 (Energy supply and
consumption)
https://www.internetgeography.net/
topics/what-are-the-impacts-of-energy-
insecurity/ (What are the impacts
of energy insecurity?

TECHNOLOGY 1. The development of new Fundamental of strategy by ROBERT M.

technologies means that more people GRANT AND JUDITH JORDAN
are using energy. https://www.bbc.co.uk/bitesize/guides/zxc2sg
2. improvements in technology can 8/revision/1 (Energy supply and consumption)
open new opportunities for energy
production.
3. innovation and invention is important
for an industry like this due to the
growth in technological advancements.
LEGAL 1. wages count towards the overall https://www.bbc.co.uk/bitesize/
cost of energy production. guides/zxc2sg8/revision/1 (Energy
supply and consumption)
2. reformation of energy resources and
supply outline by law.

ENVIRONMENT 1. New supplies of fossil fuels are

sometimes found, but only in places
that have the right geography.
2. Mining for the raw materials for
energy can also cause environmental
problems with loss of habitat and
noise.
https://www.nationalgeographic.org/
encyclopedia/distribution-fossil-fuels/
(Distribution of Fossil Fuels)
https://www.bbc.co.uk/bitesize/guides/
zxc2sg8/revision/1 (Energy supply and
consumption)

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ECONOMIC: The potential to generate non-renewable energy depends on the country

location. different areas in the world can generate different types of energies for
example Islands have the potential for wave power and tidal power, sunny countries
can generate solar power and countries close to plate boundaries can generate
geothermal power. Moreover, the consumption of energy is increasing day by day
globally. It is estimated that global energy consumption in 2040 will be 56% higher than
it was in 2010. The growth in the energy consumption will largely take place in
developing countries. As the countries develop economically, they build more factories
and offices for people to work and factories and offices are run using energy. Other
economic factors are imported fuel is expensive. Exporting countries set the prices for
fuel, leaving importing countries vulnerable Which create production of energy very
expensive for the importer’s countries.

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TECHNOLOGY: Improvements in technology can open new opportunities for energy

production. Fracking is the process of extracting shale gas. The USA now carries out
fracking, which has increased their energy supplies. Wind turbines and solar panels are
becoming more efficient and so these are being used in more countries.
Renewable technologies give you the ways to increase energy supplies although they
are less efficient at producing energy then fossil fuels.
For examples:
Biomass, Hydroelectric power, Wave power and tidal power, Geothermal power, Solar
power and Wind power.
With the help of technology waste management systems are generated for the non-
renewable resources like nuclear energy and energy form fossil fuel.
Even the use of non-renewable energy can be made more efficient. This could
increase energy supplies as less fuel would be used.
The use of technology is increasing the requirement of energy. Due to the demand the
of production is increasing.

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Porter’s 5 forces:
1

Force High / medium / low Why?

Bargaining power of MEDIUM Raw material causes great
suppliers. volatility.

Bargaining power of HIGH China keeps pressure on

buyers. the industries for lower
price because of number
of domestic industries to
choose from like BHEL
and bharti electrical etc
Threat of new entrants LOW Setup cost to too hight for
these kinds of industries.
Not an attractive sector.
Threat of substitutes MEDIUM Every industry has their
own zone or their product
or their core manufacturing
in which they deal.
Technological improved
equipment’s creates
threats.
Rivalry among existing HIGH To sustain in this industry,
firms it is very important to make
new research and reform
energies to sustain.

SURVIVAL FACTORS:
These are the factors which are helping the industries to be sustained in the market
and perform with this many levels to deliver the government, customers and public.

 Maintain a good rapport with clients (celebrated industries) with great service.
 Maintain stockholders with satisfying professional expertise.
 Resources for raw material supplies.
 Operational excellence for attracting clients.
 Technical Warehouse management system to reduce waste and organise
material.
.

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SUCCESS FACTORS:
“New energy revolution” may come earlier than expected

1. The new energy revolution which is the industry 4 revolution should come soon as
the reformation of energy with the help of artificial intelligence and CNC machines will
make it easy to deliver energy.

1. moderate level of diversification with the help of horizontal and vertical networking.
2

3. innovation and invention for new ways which are cost effective with expertise.

4. skill development programs for industry 4.0 revolution.

5. eco-friendly green energy production solutions.

2
Fundamental of strategy by ROBERT M. GRANT AND JUDITH JORDAN
Fuel poverty strategy for England". Department for Business, Energy and Industrial Strategy. 22 July 2019. Retrieved 21 October 2020.  
 English, Andrew (6 October 2007). "Fuel's gold – the cost of carbon emissions". The Daily Telegraph. London: Telegraph News and Media Ltd. Retrieved 29
October 2015.  
 Caineng Zou, Shizhen Tao, Lianhua Hou, Rukai Zhu, Xuanjun Yuan, Guosheng Zhang, et al.Unconventional oil & gas geology  
 Geological Publishing House, Beijing (2014)  
 BPBP statistical review of world energy(2015)[2015-11-20]  
 http://www.bp.com/content/dam/bp/pdf/energy-economics/statistical-review-2015/bp-statistical-review-of-world-energy-2015-full-report.pdf  
 Caineng Zou, Guangming Zhai, Guangya Zhang, Hongjun Wang, Guosheng Zhang, Jianzhong Li, et al.Formation, distribution, potential and prediction of
global conventional and unconventional hydrocarbon resources  
 Pet Explor Dev, 42 (1) (2015), pp. 13-25  
 BPBP statistical review of world energy(2005)(2005-06-14) [2015-11-20]  
 ttp://envirofinance.com/downloads/energy_markets/bp_report_2005.pdf  
 REN21. Renewables 2015 global status report. (2015-06-18) [2015-11-
20]. http://www.ren21.net/wp-content/uploads/2015/07/GSR2015_KeyFindings_lowres.pdf.  
 REN21The first decade(2004–2014)[2015-11-20]  
 http://www.ren21.net/Portals/0/documents/activities/Topical%20Reports/REN21_10yr.pdf  
 IHA. 2015 Hydropower status report. [2015-11-21]. http://www.hydropower.org/sites/default/files/publications-docs/2015%20Hydropower%20Status
%20Report%20 double%20pages.pdf.  
 IEA/NEA. Technology roadmap: nuclear energy. (2015-08-29) [2015-11-23]. http://www.iea.org/publications/freepublications/publication/
Nuclear_RM_2015_FINAL_ WEB_Sept_2015_V3.pdf.  
 Yinghong Zhang, Baoping LuPrediction of global energy trend and analysis on energy technology innovation characteristics  
 Nat Gas Ind, 35 (10) (2015), pp. 1-10  
 ArticleDownload PDFCrossRefView Record in ScopusGoogle Scholar  
National Bureau of StatisticsChina statistical yearbook(2014)(2015-02-26) [2015-11-20]  
 http://data.stats.gov.cn/publish.htm?sort=1  
 BP. BP energy outlook 2035. (2014-01) [2015-11-20]. http://www.bp.com/content/dam/bp/pdf/energy-economics/energy-outlook-2015/
Energy_Outlook_2035_booklet.pdf.  
 EAWorld energy outlook(2015)(2015-04) [2015-11-20]  
 
 
http://www.worldenergyoutlook.org/media/weowebsite/2015/WEO2015_ToC.pdf  
 
 
https://www.moneycontrol.com/swot-analysis/thermax/T/strength 
 

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COMPONENT 2
EXECUTIVE SUMMARY:
We will be disusing the competitive advantages of the Thermax ltd, understand the
phase of industry and with the help of these we will help Thermax to solve issue and
develop a strategic proposal with every analysis needed.

CONTENT:
Introduction -------------------------------------------------------------7
Competitive advantage-----------------------------------------------7
VRIO tool implementation-------------------------------------------8-12
Industry life cycle------------------------------------------------------13
Develop and prioritise issues with potential solutions---13-17
Assess strategic options--------------------------------------------18
Impact on stakeholders---------------------------------------------18-20
Strategic proposal and implementation plan---------------20
Explanation for choosing strategy ----------------------------20-21
Why each stage of strategy was needed? -------------------22
Conclusion--------------------------------------------------------------22

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INTRODUCTION:
This report gives information about the technology advancement for Thermax ltd which
is necessary to be made for industry 4.0. Thermax is facing some issue with
subsidiaries and as a global company Thermax has huge impacts due to global trade
war between major countries. Raw material is one of the biggest issues as the price
violations. strategic options given in the report will solving the issues pertinent to
Thermax ltd with strategic proposal for implementation

As we know the external environment, survival and success factors

of the energy and environment industry we can now assess Thermax
Ltd.
By looking at the competitive advantage of the organisation, we can see how the
organisation is distinguished from others.

To understand the competitive advantages of an organisation it is important to

distinguish between the resources and capabilities.
 Resources are the productive assets own by the organisation
 Capabilities are what the firm can do
The resources and capabilities we are going to look at VRIO analysis and identify
which of them are the competitive advantages.

RESOURCE ILLUSTRATIVE VALUABL RARE INIMITABL ORGANIZE TYPE OF

S EXAMPLE E E D COMPETITIV
E
ADVANTAGE

TANGIBLE Debt as
compare to
assets is very TEMPORARY
less on   ✔  ✔ ✔           ✔
Thermax ltd. So,        
it’s very easy for
the organisation
to borrow
money for
PERMANENT
further
expansion.      ✔ ✔       ❌             ✔
               
Thermax ltd.
Operates in 29
international
office and 14

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manufacturing
unites (10 in PERMANENT
India and 4
international)        ✔ ✔      ❌             ✔
area for                
manufacturing
facility

(Pune- 50 acres,
Paudh- 47 acer,
Savli- 100 acers PERMANENT
etc )      ✔      ✔ ❌        ✔
7 domestic                
subsidiaries and
21 overseas
subsidiaries.

INTANGIBLE Brand image (as

they protect PERMANENT
     ✔        ✔      ✔      ✔
environment in
               
their own limited
ways)
Convert Waste
to energy        ✔        ❌       ❌       ✔ TEMPORARY
               

Technological
partnership with      ✔    ✔ ❌             ✔
Babcock &                 TEMPORARY
Wilcox
Enterprises,
Inc., Balcke TEMPORARY
Durr, Lambion
Energy      ✔ ❌        ❌             ✔
Solutions,                
Germany,
Marsulex
Environment
Technologies,
USA.                  
The Thermax    
group is INR
5831CR (822
Million US$)
organised with a
huge range of
products for

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heating, cooling, ❌       

water and waste    ✔     ❌             ✔
management,             PERMANENT
and specialty
chemicals.
Solarphotovoltai
c system of
1285 MV

Digital
capabilities and
R&D are of
great help in the
growing portfolio
Thermax has
initiated an all-
encompassing
digitalisation
programme

HUMAN Thermax ltd live

by high value of
       ✔        ✔ ❌        ✔ PERMANENT
integrity and
excellence in
management.

Thermax ltd
mission is to nurture
the talent and look ✔ ✔ ❌    ✔ PERMANENT
after of people by
helping them to
grow and get
fulfilled in an open
culture

Competitive advantages of Thermax Ltd.

TANGIBLE RESOURCES:
 Considering the plants, equipment and land minerals as the competitive
advantages, Thermax ltd has presence in 88 countries with 29 international
offices, with 14 manufacturing units of which four are overseas.

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 7 hellion domestic subsidiaries and 21 overseas subsidiaries makes Thermax

unique. TOESL a wholly owned subsidiary, which provides a green energy
sustainable solution, that provides treated water to the manufacture pollster
and solar power to pharmaceutical company in Maharashtra.

 A huge asset value as compared to the labilities which give Thermax a great
advantage to borrow money for further expansion. This includes the larger areas
of plants like 50 acres for the Pune plant (head quarter) and more then 100
acres for Savli plant.

INTANGIBLE RESOURCES:
 Thermax ltd has a great reputation and a net worth of 822 million US dollars
having Technological partnership with Babcock & Wilcox Enterprises, Inc.,
Balcke Durr, Lambion Energy Solutions, Germany, Marsulex Environment
Technologies, USA try to protect the environment in their own possible ways.

 Thermax has initiated an all-encompassing digitalisation programme to make

energy cost efficient with waste reduction and they are even working in making
energy from waste (concluded an order of Rs 320 crore from waste heat boiler,
electric turbine generator.

 Digital capabilities and R&D are of great help in the growing portfolio of the
Thermax with sustainable solutions. Thermax and its subsidiaries are focusing
on sustainable solutions for its business growth and injecting cooling system
and power plants into the international market which run over renewable
energy such as solar energy, biomass, waste heat from industrial plants.

 Thermax ltd have commissioned to build a solar photovoltaic system of 1285

MV not only this India is considering generating 5000MV of solar energy in
which major contribution is given by Thermax ltd.

HUMAN RESOURCES:
 Thermax ltd is proving employee-friendly working environment by focusing on
their personal needs for which they have arranged employee welfare trusts.

 They also have training programs like LDP II which is a leadership program with
currently 32 managers, and juniors’ levels LPD III with 52 managers. For
interpersonal skills and ownership at work, Thermax have initiated a training

THERMAX LTD TRYING TO SUSTAIN IN MATURITY PHASE

As we know the competitive advantage it is important to understand the industry
life cycle as well, because by the understanding of this we can analyse in which
phase is the industry operating.

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Thermax ltd is showing similar amount of order booking for long time and even
the net profit is stagnant, so when the business matures the margin involved
gets thinner while the cash flow seems stagnant and sale seems slowing down
similar in the case for Thermax ltd.

it’s important to know because many businesses likely to innovate and install
new technology and invest in new product at this time to keep the maturity
phase for long time or start the growth phase again with the help of new
strategy.

Thermax ltd is facing some issues in proper functioning of

the organisation further discussion is about those issues.
The issues are being developed and prioritised in the same order.

ISSUE 1: Is stagnation in sales due to the bargaining power of buyers, especially

the chinese importers?

Over the past decade, the sales of Thermax ltd have remained stagnant, as there is no
proper growth visible in the financial statements. We can see the similar amount of the
order booking for both national and international clients.

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Thermax is only dealing with the B2B business so bargaining power of buyers is too
strong as the domestic competitors are there to compete in price which result in
reduction of the margins involved. Not even energy imports have a lot of options like
BHEL to request energy at good prices due to the pressure to lower prices especially
for China’s importers. Due to inflation this stagnation is a great problem. Growth needs
to increase as raw material, wages, construction costs and machineries are still costing
heavily on the industry.

STRATEGIC OPTIONS FOR ISSUE 1:

 Training for sales teams to identify and work with qualified clients who can see
value in their work, including the budget to pay and confidence to deliver
amazing results.
 Practicing cold emails and calls is a good option together with social media drive
will make it of great value.

ISSUE 2: TECHNOLIGICAL AND AUTOAMTION

Does Thermax ltd have all the automation and technology needed?

Even though the chemical plant in Dahej, Gujarat has been automated and Thermax is
thinking about automating 13 other plants (which are four decades old), the automation
required for cost reduction to enable better performance and accuracy is not there.

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Technology for maintaining the raw material and semi-automation for producing the
renewable source of energy is not there which makes it an issue for upcoming years.

STRATEGIC OPTION FOR ISSUE 2:

 Use the innovation process: This process allows you to go through invention
and then innovations by combining the basic knowledge with the advancement
which can be used to develop new technology.

 Considering the profitability of the innovation which means focus on the property
rights in innovations (like patents, copyrights, trademarks, trade secrets etc) and
also the understanding of the tacitness and complexity of the technology.
 It is not possible to impose technology in an organisation with out
complementary resources (not just innovation but diverse resources and

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capabilities)

 Exploitation of the innovation and technology is needed to understand how and

when to enter the market.

ISSUE 3: MODERATE DIVERSIFICATION

Are subsidiaries being threats or a benefit for Thermax ltd?

The diversification Thermax is having not working in the way needed as we can see
some of the subsidiaries are more of liability than an asset for example, “Thermax
(Zhejiang) cooling and heating engineering co. Limited, china (TZL)” which is a wholly
owned subsidiary is facing very tough time to sustain in the market and Thermax
instrumentation limited (TIL) is also showing very stagnant results from couple of years.
Even Thermax ltd closed its wholly owned subsidiary which was in China from 10 years
with net worth $14M and the Danstoker / Omnical subsidiary which was in Germany.

Thermax ltd is having amazing divarication in environment, energy and chemical

segments but some of them are becoming a liability for the industry which should be
resolved.

STRATEGIC OPTION FOR ISSUE 3:

 Analysing the firm scope (economies and transaction costs, cost of corporate
complexity and management attention). One of the methods to do that is by
specialisation vs integration method.

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 Adding value in diversification by

 Control access to key inputs and different channels
 Understand they key competitors and try to make them under control
 Access to resource by legitimation
 Imposing virtual integration and outsourcing some operations

ISSUE 4: OPERATIONAL
Are the operations and resources performed in the manner needed?

 Global trade
The rising trade tensions amongst the major economies like USA, China and EU
nations have meant there is a great threat to Indian companies participating in
global trade due to the margin that is being affected on the Indian company
exporting.

 VOLATILITY IN RAW MATERIALS

There have been some problems because of volatility in raw material, for
example ion exchange resin business which was showing amazing growth with
marginal improvement in profitability is under great pressure due to volatility in
raw material price.

STRATEGIC OPTION FOR ISSUE 4:

 Reduce the cost of production to improve the margin
 Start investing in the firms for easy access of raw material.
 Starting ventures for raw material productions

We are aware of the strategic options of the issues that Thermax is facing but
now we need to know if Thermax is compatible to apply these strategic
options or not!

As we start assessing the options we need to know if Thermax ltd have all the
resources needed to implement the options or if not, can it be developed?

Resources Available within the firm or on the open market

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or merger
Physical resources  Thermax ltd have a great value of cash
flow
 It is listed in equity market so can
arrange many for development
 They don’t have any depth so can
borrow money because of amazing
credit history.
 Huge assets which can sold for
development.

Competences and intellectual  They have research centres to perform

resources various experiments for new innovations
 Various existing resources can be of
great use for further inventions.

Human resources  They take a good care of their

employee with the high-end training and
other financial benefits
 Recruitment process is screening the
person from various tests to select the
best of the deities.

Reputational assets  They save environment in their best

possible ways
 Charity is one of the main agenda they
have.
 Brand image

Time  They don’t have enough time as they

are in stagnation from couple of years,
but this can be generated.
 They have time to outpace the
competitors as other industries are
facing the same issue.
 Stakeholder is in great hope and want
results soon.

Thermax ltd have almost all the resources to execute the following options
mentioned above. Due to the stagnant sales and slow automation the time
associated with development is shortened therefore the delivery should be quick and
effective.

 Improving sales will provide Thermax ltd with volume of orders which are
almost constant from last 5 years.
1. There will be improved sales and growth in net profit.
2. There might be some expenses on sales office to be maintained
throughout the world to bring more orders.
 Technology and automation will help in improving margin by reducing the
production cost.

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1. Thermax ltd have enough capacity to semi automation of the industry

to reduce the cost of production as there will be less wastage and
reduction of employee
2. Proper training and education to be provided to the workers.
3. Recruit skilled workers will be of great challenge or converting non skill
to skilled will require a lot of effort and money.
 Emerging the non-performing subsidiaries will help to avoid the time, money
and other resources wasted on them.
1. Joint ventures and outsourcing will help save resources of major
activities
2. Analyse and restructure the subsidiaries.
3. Adopt proper format of expansion with moderate diversification.
 Start own resources of raw material.
1. Investing in the resources like raw material have a great impact on
industry sale. Rather then outsourcing this Thermax should invest in
their own production of raw material.
2. Proper management and warehouse technology should be provided to
avoid the wastage of resources.
 Joint ventures with other countries will help Thermax to avoid participating in
the global trade war and create a professional environment for global trade
and opportunity.

STRATEGIC PROPOSAL:
Every firm’s progress can be seen by its balance sheet, if an industry is able
to provide good profit growth and sale.
We will improve margin by reducing cost with the help automation and
technology and improve the volume of sale. Their own source of raw material
will help them in easy availability and reduce costing of raw material.

Emerge subsidiaries
|
Own raw material (cost reduction)
|
Impose semi-automation and technology (improve margin)
|
Improve sales (volume of orders)
|
Growth (sustainable competitive advantage)

Let’s observe the options acceptable by the stockholders or if any major

stockholders are impacted by this proposal.

The most important people effected by any decision the firm are the
controlling stakeholder of the organisation. The strategy should be satisfying
to them and able to deliver the results. So, we need to understand if the
options are able to provide growth, financial returns, risk involved, and ethics
maintained. If all of these factors are acceptable by the stakeholder, we ready
for implementation.

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Growth  Green energy is a unique

product, and we can provide
the same with good prise.
 Balance sheet can reflect the
increased net profit as our
major focus is on growth.

Financial returns  Return of investment would

not be a problem as the cost
of manufacturing is getting
reduced
 We are tending to provide
volume to orders which can
increase revenue.
 Technology, innovation, sales
offices and raw material
production joint will add into
physical assists of the
organisation.

Risk involved  It will be a lot of effort to

implement the technology and
finding skilled workers.
 Raw material venture requires
a lot of financial support
 There will be problem with
emerging subsidiaries as the
stakeholder associated with
specific subsidiaries may not
like it.

All the options are considered in a format that stakeholder will not be affected by the
proposal but as the work is under process there should be effective human resource
team for ever unit to understand the working environment and as slot is going on,
there should be harmony amongst the people.

But as we look forward to emerging the subsidiaries, there might be some

problem as the management may not like it.so there further purpose should in
such a way that they can see the growth is being delivered and more over
emerging the subsidiaries will not take your positions in command.

Other relations of organisation will definitely like the strategy as it is proving a

good ethical environment with growth involved and vision of the organisation
is being considered always that is sustainable energy solution by helping save
environment in their own possible ways.

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Conflicts should be managed when the changes are being made because
changes require a lot of effort and understanding almost the people working,
for this there should be analysis for the need of the employees and on the
same time HR team should try to satisfy the need and this can do by
introducing training classes, introducing events for enjoy, adding incentives
and some other benefits to encourage employee to work effectively.

Understanding the strategic proposal

For every company, the most important key is to make consistent profit and
growth associated with it. This can be done with the help of competitive
advantage. The strategy I propose will provide Thermax with a sustainable
competitive advantage which can show growth in the balance sheet as well.

competitive advantage can categorise in two ways

This strategy can provide both of them

We can see three possible ways by with we can show growth.

 By improving volume of sales

 By reducing the production cost
 By increasing the prise

Increasing the prise in case of Thermax is not possible because of the bargaining
power of the buyers, so not focusing on the increasing the price but improving the
margin by decreasing the production cost. This can be done by the following:

 Having our own plant for raw material

 Proper warehouse management
 Imposing technology and semi-automation
 By introducing innovation and invention

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By this we can minimise the cost of production and provide the same level of
expertise in products and even at the lower prise which can contribute to be one of
the competitive advantages (cost advantage).

Improving volume of sale is the other factor by which an industry can grow.
Unfortunately, Thermax is not showing the growth in sale from a long time and we
need to work on that.

 There must be sales offices in every country to expend our business

worldwide
 Sales training in B2B business as we as Thermax are dealing with other
companies so for this, we need to know who the potential client is and able to
pay the expertise we are delivering.
 Innovation and invention for a new way of energy development is the thing
which is needed by the world right now as the Thermax is able to innovate this
can be one the competitive advance which can differentiation advantage.

By combining cost reduction which leads to improving margins and increasing

volume with the help of technology, innovation and automation will take our industry
Thermax ltd to new hights.

Understanding why each stage of the analysis was needed

Resources and capabilities combining together contribute to be the competitive

advantage of an organisation. This helps the industry to strand out and grow. Every
industry needs there three type of competitive advantage which are tangible
(physical assets), intangible financial and intellectual assets) and human resources.

Industry life cycle has given us the understanding in which phase the industry is
working to that implementation can be done accordingly. Maturity phase of Thermax
needs to be converted into growth by innovation and strategy.

Developing issues and prioritise has made us focus, so that our resources are used
in major functioning of the industry and no resource should be wasted in the process
of implementation.

Strategic options have helped us divide our understanding about what is needed to
be done and how it should be done.

By assessing these options, we know that Thermax have all the resources to
implement their options or if any resource needed to develop

moreover, we have taken care of the major stakeholder and provide the satisfaction
demanded by them with our strategy.

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Strategic purpose provides you with the procedure for implementation and by this
sequence of understanding we can provide our industry with strength to grow and
stand out.

Conclusion:
Every company go through lots of ups and downs, but our major concern is to
resolve those issue with our expertise as we did in this report that is providing
strategic proposal to help better function of the industry.

COMPONENT 3

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