Question: QUESTION 1 [ 2 0 MARKS ] WindGen ( WG ) is a manufacturer of equipment for the renewable energy sector and is situated near
QUESTION MARKS
WindGen WG is a manufacturer of equipment for the renewable energy sector and is situated near
Johannesburg, Gauteng see map below The company has a strong domestic market for their
fibreglass composite wind turbine blades and has some excess plant capacity thanks to a recent
expansion and is investigating the opportunity to enter the export market. Demand for turbine blades is
especially strong in India and the United States, where there is a strong commitment to renewable
energy but a shortage of critical parts to meet the growing need for powergenerating capacity.
During its annual executive retreat, exporting is a major topic of discussion. After a presentation by the
business development team and a similar evaluation by an industry analyst, WGs CEO sees the light.
He quickly became a strong proponent of selling wind turbine blades to power companies near
Bangalore, India and Lansing, United States. Now all we have to do is figure out how to get the blades
there quickly and without damage, says the CEO. Chris get your team on this one. I want some solid
answers.
Chris Knight, WGs transportation director, knows this is a big opportunity for the company but it comes
with tremendous challenges. Picking the right mode, finding ports that can handle the blades safely,
and routing the freight are just a few of the issues that keep Knight awake the night after the CEO
tagged him to lead the Global Export project.
At his next staff meeting, Knight reminds his team: These blades are meters long and weigh
tons. We must first get them from the plant to the point of export. Thats not easy, since we need to plan
routes to avoid urban rush hours, sharp curves, narrow lanes, and weightlimited bridges.
On top of those usual challenges, we have to find a highquality international carrier to get the blades
to India and the United States, Knight adds. And dont forget the port challenges and final delivery to
Bangalore and Lansing. Turning to you, Knight says: Get me some answers fast! We need a plan of
action for the CEO by Friday.
What are the major problems and pitfalls that WG faces as it tries to go global with its product
line?
What modes of transportation would you recommend to Knight as most appropriate for moving
the turbine blades domestically and internationally?
How would you route shipments of turbine blades from Johannesburg to Bangalore and
Johannesburg to Lansing, Michigan? Explain why?
What role will ports play in the flow of turbine blades from South Africa to India and the USA?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
