SUMMATIVE ASSIGNMENT 1

Name : Mary Nambao

Student ID Number: R2002D10464027
Course name: UU-MBA-717-ZM-18929
Tutor: Marieta Efthymiou
Date: 20th September 2020

i
Table of Contents
ACRONYMS ............................................................................................................................................ iv
1.0 EXECUTIVE SUMMARY ................................................................................................................ 1
1.1 Long term Objectives .............................................................................................................. 1
1.2 Short term objectives.............................................................................................................. 2
1.3 Functional Strategies .............................................................................................................. 2
1.4 Financial Plan : 2021-2022 ...................................................................................................... 3
1.5 Conclusion ............................................................................................................................... 5
2.0 STRATEGIC RATIONALE ............................................................................................................... 6
2.1 Introduction ............................................................................................................................ 6
3.0 OVERVIEW ................................................................................................................................... 7
3.1 Background ............................................................................................................................. 7
3.2 Vision and Mission .................................................................................................................. 7
3.3 Core values .............................................................................................................................. 7
3.4 Governance ............................................................................................................................. 7
4.0 MICRO AND MACRO ENVIRONMENTAL ANALYSIS ..................................................................... 8
4.1 Internal Analysis ...................................................................................................................... 8
4.1.1 SWOT Analysis................................................................................................................. 8
4.1.2 Value Chain Analysis ..................................................................................................... 10
4.2 Macro-Environmental Analysis ............................................................................................. 11
4.2.1 Political .......................................................................................................................... 11
4.2.2 Economic ....................................................................................................................... 11
4.2.3 Social ............................................................................................................................. 11
4.2.4 Technology .................................................................................................................... 12
4.2.5 Legal .............................................................................................................................. 12
4.2.6 Environmental ............................................................................................................... 12
5.0 STRATEGIC ANALYSIS AND CHOICE .............................................................................. 13
6.0 LONG TERM OBJECTIVES ................................................................................................... 13
7.0 SHORT TERM OBJECTIVES ................................................................................................. 14
8.0 FUNCTIONAL STRATEGIES AND TACTICS ..................................................................... 14
9.0 POLICIES THAT EMPOWER ACTION ................................................................................ 17
10.0 STRATEGIC CONTROL AND CONTINUOUS IMPROVEMENT ...................................... 18
11.0 FINANCIAL PLAN : 2021-2022 ............................................................................................. 18
12.0 CONCLUSION ......................................................................................................................... 19
13.0 REFERENCES .............................................................................................................................. 20

ii
iii
ACRONYMS

COMESA Common Market for Eastern and Southern Africa

ERB Energy Regulation Board

KGRTC Kafue Gorge Regional Training Centre

NHCC National Heritage Conservation Commission

REA Rural Electrification Authority

RET Renewable Energy Technology

SADC Southern African Development Community

WARMA Water Resource Management Authority

ZDA Zambia Development Agency

ZEMA Zambia Environmental Management Agency

ZESCO Zambia Electricity Supply Corporation

iv
1.0 EXECUTIVE SUMMARY

Zambia’s national electrification rate is 22% translating into 45% urban and 3% rural
and falling short of the Sustainable Development Goal number 7: “Ensure access to
affordable, reliable, sustainable and modern energy for all”(Batchelor, Brown, Scott, &
Leary, 2019). Resource Renew Ltd. a subsidiary of Kafue Gorge Regional Training
Centre (KGRTC) has a mission to empower rural communities through provision of
inexpensive, readily available biomass energy in a safe and environmental ly sound
manner with a motivated workforce and inspired shareholders. This five year Strategic
Business Plan (2021-2025) defines the short and long term objectives that will lead
to the achievement of the Mission.

Resource Renew Ltd will be serving a rural community in 5 districts with very few investors
in any commodity. It will use concentrated growth as its grand strategy and will invest to ensure
that the Renewable Energy Technology (RET) in form of biomass energy is efficiently
produced and supplied to the community. (Nurhendiarni, Hidayat, & Pasasa, 2015). The other
grand strategy this firm will use is vertical integration; in backward integration it will grow
50% of its raw material and in the forward integration it will distribute its product. This vertical
integration will promote dependability (Aveni, & Ravenscraft, 1994). Using focus
differentiation as a generic strategy, the firm will establish itself in a niche market segment by
providing this energy to a rural population with no hydro-power energy.

1.1 Long term Objectives

The Mission statement will be achieved through the following long-term objectives:

1. To increase shareholder’s earnings by 5% by 2025

2. Increase the production of biomass energy to cover 5 rural districts by 2025
3. To partner with local farmers in producing raw material in 5 districts by 2025
4. To have workers spend 15% of their work time per year in skill development activities
by 2025
5. To be a lead company in using innovative technology in biomass energy production by
2025
6. To contribute 1.5% of the annual gross revenues to local social sector programs by 2025

1
1.2 Short term objectives

The short term objectives guiding the implementation of the strategy in a phased manner are:

1. Resource Renew Ltd will develop a marketing strategy by 2022

2. Resource Renew will supply 50 % of its raw materials by 2022
3. Resource Renew Ltd. will acquire equipment able to produce biomass energy to service
30% of households in 5 rural districts by 2022 .
4. Resource renew Ltd. will have contracts signed with at least two farmers per district to
partner with in raw material farming in the 5 districts by 2022.
5. At the end of one year, 30% of the workers will have attended at least one skill
development training.
6. Two middle level managers will do a course in new technologies in the energy sector
by 2022
7. Resource renew will renovate one hospital ward at the local hospital by 2022.

1.3 Functional Strategies

Marketing Strategy: The Marketing department will use the product development strategy. It
will be introducing a new product to a new market and this will require use of the, ‘PULL’
strategy. There will be efforts in building brand awareness even before there is a threat of new
entrants. Skim pricing will also be used as a marketing strategy because even if the community
is a poor community, they are receiving subsidies from the government and other
developmental partners.
Financing Strategy: Resource Renew Ltd. will aim to develop accountability frameworks in
the company. All transactions will be recorded and audited timely. Navision software will be
used to reduce on fraud. In-service training to accounts staff will be on-going

Research and Development strategy: With differentiation as a generic strategy for Resource
New, there is need to constantly innovate better ways of being unique in the services it offers.

2
It will take up a strategy as a technological leader investing in innovations. The strategy for
developing a learning organization and knowledge management will be implemented.

Operations Strategy: The plant will be based in 5 rural districts where the clients for the RET
are. Most of the factory workers will come from the rural districts resource renew ltd will be
operating in. The workers will be trained on the job considering that this is new business and
very few of the locals would have the skills required. Equipment will be imported but
innovations will be encouraged to identify alternative cost-effective technologies. The supply
chain management will be assured by vertical integration.

Logistics strategy: the firm will outsource half of the raw materials and aim to produce the
other half. This combination of outsourcing and backward vertical integration ensures
community ownership alongside quality control and dependability. It will maintain the
competitive advantage of vertical forward integration as it installs and distributes the
commodity.

Human Resource Management (HRM) strategy: The firm needs more of factory workers who
do not need to be highly educated. It will also introduce work teams to enhance quality and
productivity. Skills development programs are facilitated and the appraisal system enforces the
requirement to upgrade one’s skills.

Technology strategy: This will focus on enhancing organizational learning and knowledge
management. Improved communication among departments and also externally with the
stakeholders due to the technology, will play a big role in sustaining its core values of
Efficiency , Quality, Dependability and Innovation (Sharma, 2008).

1.4 Financial Plan : 2021-2022

Resource Renew has acquired a $2,000, 000 loan to install equipment for production and
distribution of the energy and also the ICT required. The operations capital of $150,000 will
be complimented by the income from sales and the government subsidies. This money will be
used to acquire land for farming and putting up the plant and warehouse. Other expenses will
be recurrent consumables, fuel and maintenance of infrastructure. On human resource, there
will be routine administration expenses, trainings and health schemes funded and also
renovation of a hospital ward as social responsibility. Marketing and the workers’ wage bill
will be allocated a total of $40,000 with a loan repayment of $100,000 per year. Routine
running costs for departments have been assigned $3000, this does not include the Marketing

3
department which has its own budget. The net balance at the end of the year will be $341,000
which will be used implement recommendations from the Total quality management (TQM)
program as the firm start operations for the following year. Details in Fig 1.1

Fig. 1.1

Cash flow budget

Cash inflow
Beginning cash balance $150,000
Government payments $200,000
Sale of energy to the communities $200,000
Loan $2,000,000
Total inflow $2,555,000
Cash outflow
Procurement of farmland (1000 acres) $3,000
Infrastructure (Warehouse and factory) $10,000
Equipment installation at $1000 /KW (direct combustion $2, 000,000
equipment) and for distribution, Software technologies
Spares and other consumables $10,000
Fuel $15,000
Raw material procurement (Sugarcane and cassava residues) $15,000
Wage bill $30,000
Marketing $10,000
Administration and Training $5,000
Renovation of a hospital ward $2,000
Maintenance (Buildings, Vehicles and Equipment) $, 3, 000
Health schemes for workers $,3,000
Operations budget for departments (apart from marketing) $3,000
Loan payment $, 100,000
Total outflow $2,209,000
Cumulative cashflow $341,000

4
1.5 Conclusion

This strategic business plan outlines how the mission of Resource Renew Ltd. will be achieved.
With only 3% of the rural population being electrified, the energy from this company will
compliment the supply from hydropower. This will form a foundation for Small and mid-size
enterprises to invest in rural areas and in turn alleviate poverty for the locals. The community
will only pay 50% of the cost of energy as the government will pay the other 50%. This assures
Renew Resource profitability as it not only reduces inequity by serving the rural areas but also
supplies clean energy to replace the traditional biomass energy.

5
2.0 STRATEGIC RATIONALE
2.1 Introduction
This strategic business plan for a biomass energy plant in Zambia is derived from the
national energy policy formed in 2008. It rides on the objectives from the draft
renewable energy strategy done in 2010 which are more inclined to universal access to
energy (IRENA,2013; MEWD,2010 ).The national public utility, the Zambia Electricity
Supply Corporation (ZESCO) accounts for 94% of all the power generated. It does not
meet the Country’s demand as the national electrification rate is at 22% translating into
45% urban and 3% rural. The biomass energy plant will contribute to efforts being made
by the government to reduce poverty for the rural population through rural
electrification (JICA,2008). This will also be a response to the sustainable development
goal number 7, which urges countries to provide clean and affordable energy for the
population. With a total biomass resource and economic bioenergy potential of 2.15
million tonnes, and 498 MW, respectively, venturing into biomass energy production
will compliment the energy being produces from the hydro stations (MEWD, 2008).

The main goal of the Kafue Gorge Regional Training Centre (KGRTC) is to develop
skills and competencies in energy technologies in a manner that facilitates sustainable
energy development for socio-economic transformation in Sub Sahara region (KGRTC,
2017). Having identified Biomass energy production as an opportunity in its strategic
business plan, it has formed a subsidiary called Resource Renew Ltd. to concentrate on
biomass energy in rural electrification.

Resource Renew Ltd. has developed this strategic business plan to guide its operations
for the next five years and will require a capital of $150,00 0 (US) to operationalize it.
The plan will identify the objectives , priorities and strategies needed to successf ully
reach the goal of the firm whilst maintaining a competitive advantage (Mc Guire, 1995;
O'Regan & Ghobadian,2002).

6
3.0 OVERVIEW
3.1 Background

KGRTC is a regional training centre for southern Africa and it is based in Zambia. It
runs a 750MW Kafue Gorge Lower (KGL) hydroelectric power station and now owns
the Resource Renew Ltd subsidiary.

3.2 Vision and Mission

The mission of Resource Renew Ltd is to empower rural communities through provision of
inexpensive, readily available biomass energy in a safe and environmentally sound manner
with a motivated workforce and inspired shareholders

The vision statement is to be a leading energy firm in equity promoting innovations

3.3 Core values

The core values of the firm are Efficiency, Quality, Dependability, Equity, Innovation and
Environmentalism.

3.4 Governance
The subsidiary is governed by an independent board of trustees from KGRTC but has
representation from the member countries to the parent firm; Malawi, eSwatini, Uganda,
Tanzania and Zimbabwe. The board of trustees will safeguard governance by providing the
direction of the firm with quality goals, ensuring efficient administration, reduce liabilities, and
assure stakeholder engagement (Roberts & Connors, 1998).
The firm will be governed by the principles laid out in the National Energy Policy ,2019 and
abide by the following acts; the Electricity Act, Chapter 433 of the Laws of Zambia, the Energy
Regulation Act, Chapter 436 of the Laws of Zambia, the Rural Electrification Act No. 20 of
2003 and the Petroleum Act Chapter 435 of the Laws of Zambia (Ministry of Energy , 2019).

7
4.0 MICRO AND MACRO ENVIRONMENTAL ANALYSIS
4.1 Internal Analysis

4.1.1 SWOT Analysis

4.1.1.1 Strengths
1. Adequate startup capital
2. The CEO and departmental heads have experience in biomass production with tacit
knowledge that can place the firm to operate on a global scale if other resources are in
place
3. The firm has acquired equipment and technology to offer quality services
4. The shareholders for Resource Renew Ltd own the Parent company KGRTC. They
have proven to adequately investment for operations in KGRTC. This has gained
Resource Renew the respect it needs from the policy makers and competitors.
5. The Board of trustees for Resource renew have the autonomy to give policy and
strategy direction
6. The governance structure includes engagement of stakeholders especially clients
7. The firm chairs the rural empowerment committee enabling it to interact with policy
makers and other stakeholders
8. The energy plant is located within the rural community and there is ownership of the
product by the community. It also provides job opportunities to the locals.
9. The firm distributes the energy to the household level

4.1.1.2 Weaknesses
1. The workers do not have experience in biomass production
2. The firm has little experience with risk management
3. The Organizational culture not yet developed, not much collective learning going on or
tacit knowledge being tapped into.
4. The raw materials are not always readily available. The cassava and sugarcane crops
are not grown at a large scale in the community being served by Resource Renew
5. Not able to reduce production costs through economies of scale because of the
inadequate raw materials
6. Weak brand portfolio
7. No experience in marketing products for a rural community

8
4.1.1.3 Opportunities
1. Existence of Plans (Transitional: 2002–2005; Fifth: 2006–2010 and; Sixth: 2011–2015)
and the Vision 2030 which emphasise renewable energy technologies ((Mudenda,
Makashini, Malama & Abanda, 2018)
2. Existence of the Rural Electrification Master Plan (JICA,2008)
3. There are 3 out of the 10 provinces already producing sugar cane ((Kaunda, Morel &
Mtawali ,2013)
4. Community acceptance
5. Government subsidies
6. World bank poverty reduction programmes to enable the communities to afford
renewable energy ((Mudenda, Makashini, Malama & Abanda, 2018)
7. Only 3% of rural areas are electrified (IRENA,2018).
8. Solar power not dependable during the winter and rainy season
9. New environmental policies such as the 2008 Statutory Instrument (SI) #42 that states
that biofuels are an energy source, encouraged for a cleaner environment (Kaunda,
Morel & Mtawali ,2013)
10. High tariff rates for hydroelectricity at household level
11. Increase in unplanned settlements
12. Enabling environment with a variety of stake holders such as; Energy Regulation Board
(ERB), Rural Electrification Authority (REA) and Biofuels Association Of Zambia
(IRENA,2018)

4.1.1.4 Threats
1. Country policies not being adequately favorable. The National Energy policy in effect
now is more inclined to grid-connected hydropower .There are also gaps such as lack
of standardised power purchase agreements, legal and institutional framework to
promote renewable not complete (Mudenda, Makashini, Malama & Abanda, 2018).
2. Change of government might affect the subsdies the firm gets to lower the production
costs
3. High inflation rate
4. Farmers not venturing into growing more sugarcane for biomass production. This is
because sometimes they refer to times the government has not honored their part of the
bargain in buying the product off the farmers ( Zielewska et al.,2009)
5. Other firms providing the same service to the same community

9
 6. Competing markets for the crop ,
7. The rural communities preferring traditional biomas such as charcoal. An article in an
MPDI journal highlights this threat , “In some instances, a household dependent on
traditional biomass may be able to afford the recurring cost of a cleaner source of energy
such as Liquefied Petroleum Gas (LPG) but fail to afford the obligatory LPG stove and
gas cylinder, thus eliminating the likelihood of switching fuels” (Mudenda, Makashini,
Malama & Abanda, 2018)
8. Poor levels of knowledge about the RETs and cultural believes not supporting its use
can be a threat

4.1.2 Value Chain Analysis

Infrastructure: Warehouse for storage adequate for bulk procurement of raw material.
Departments well defined, strategic planning at business and functional level is available

HR Management: Personnel recruitment done, departmental heads highly skilled, Capacity

building programs inbuilt as job on training for the workers , Health schemes for workers
extended to their families
Support Activities

Technology dev.: Equipment for production and quality control has been procured and installed

Procurement: Agents to procure raw material and collection points are in place, contracts with
suppliers have been signed

Inbound Operations Outbound Marketing & Service

logistics logistics Sales

Raw materials Energy Does its own Clients are residents Maintenance
are procured production Installation and Small Medium Quality control
within Zambia Energy storage and Enterprises Customer care
(cassava and The acceptance of
transmission
the firm in the
Sugar cane) Metering community helps
Capacity to Maintenance
Primary Activities

with word of mouth

store the marketing and local
procured raw radio stations
materials in The price for the
bulk locals is subsidized
Strong supply
chain skills

10
4.2 Macro-Environmental Analysis

The macro-environment factors are key to any firm developing a strategy as they have impact
on the competitive advantage . In this strategy , the PESTLE analysis has been used and the
following areas have been analysed: Political, Economic, Social, Technology, Legal and
Environment.

4.2.1 Political
Zambia has been politically stable since independence in 1964 and this is a positive factor for
investors as they can comfortably plan ahead. The trade policy has opened up trade in the
COMESA and SADC region and this facilitates importing of necessary equipment. The trade
regulations & tariffs for energy concerning the rural population need to be understood
especially that the community expect subsidized services. Poverty reduction programs such as
social cash transfer facilitate the utilization of the commodity by the community. Inasmuch as
political interest in the company will promote community acceptance sometimes their influence
has negative impact as they undermine the legal requirements in the interaction with the firm
(Phiri & Guven-Uslu,,2019). The bureaucracy in the government processes fuels corruption
especially for the private sector as they to obtain necessary licenses for the running of the
business. The running costs for RET are usually high if the government does not have subsidy
policies for firms serving the rural areas. This would need to be harmonized with the wage
legislation. (ADB, 2016, Norad ,2011 )

4.2.2 Economic
The foreign borrowing in Zambia has contributed to the fiscal deficit as the debt interest
payments stands at 41%. With a wage bill being at 47% , only 12% of the resources are
available for the Country’s operations (Picazo & Zhao, 2009; Fagernäs & Roberts,2004;
Operations Evaluation Department ,1997 ;Mwambazi, 2020). The reduced fiscal space may
affect allocation of funds to poverty reduction programs and subsidies. The GDP growth rate
is 3.1% per annum, other than the falling copper prices the insufficient hydro-electric power
generation have also contributed. The increasing inflation rates and disruption of supply chain
due to Pandemics such as Covid 19 are threats to a firm in its infancy. The high unemployment
rate in Zambia of 13.2% makes the pool of potential workers bigger (CSO,2019).

4.2.3 Social
The social cultural factors in rural Zambia play a significant role in the work culture of the
locals. Most Zambians are affiliated to a church and their shifts should be planned with special

11
religious days in consideration. Respecting family ceremonies such as funerals help the
community feel the firm’s management has integrated well. Understanding the community
helps to develop an appropriate communication strategy. This would be helpful most people
have very little knowledge on the RET (Mudenda, Makashini, Malama, & Abanda, 2018). We
have 60 % of Zambians living below a poverty line, therefore corporate social responsibility in
this community would be appreciated (ILO,2018).

4.2.4 Technology
RET is not a very advanced field in Zambia and therefore technology diversity is not yet
appreciated. The firm at the moment has been able to acquire the minimum basic equipment .
An analysis of how fast technology in biomass energy production is changing has helped
settle for suitable and cost effective technology. The company will continue monitoring the
technology updates needed. Research is one avenue that will help the development of new
technology.

4.2.5 Legal
Although the National Energy Policy of 2008 brings out grid-connected hydropower more than
other renewable energy technologies, the National Development Plans and the Vision 2030
highlights the significance of venturing into other RETs to compliment meet Zambia’s energy
needs (Kachapulula-Mudenda, Makashini, Malama & Abanda, 2018). The following pieces of
legislation are present but need to be reviewed so as to promote other RET such as biomass
energy:the Electricity Act, Chapter 433 of the Laws of Zambia, the Energy, Regulation Act,
Chapter 436 of the Laws of Zambia, the Rural Electrification Act No. 20 of 2003 and the
Petroleum Act Chapter 435 of the Laws of Zambia (MOE,2019). The Energy Regulation Board
ERB) through the Energy Regulation Act CAP 436 of the Laws of Zambia regulates the energy
sector.

4.2.6 Environmental
The rains are adequate in the area the biomass plant will be situated. This is an advantage incase
Resource Renew Ltd decides to do backward integration and grows it’s own raw material. The
following statutory bodies work together with the ERB to monitor the firm’s reponse to the
environmental sustainability: Water Resource Management Authority (WARMA), National
Heritage Conservation Commission (NHCC), Zambia Environmental Management Agency
(ZEMA), Zambia Development Agency (ZDA) and Department of Lands (MOE, 2019).

12
5.0 STRATEGIC ANALYSIS AND CHOICE
The area being serviced by Resource Renew Ltd is a remote part of Zambia with very few
investors in any commodity. There is no hydro power grid and the community uses traditional
biomass energy such as charcoal and firewood. A few use solar energy just for lighting but not
for cooking or heating purposes. The firm will assess the market requirements , the technology
and logistics needed and also the clientele’s preferences. Using this Grand Strategy of
concentrated growth, it will invest to ensure that the RET in form of biomass energy is
efficiently produced and supplied to the community. (Nurhendiarni, Hidayat, & Pasasa, 2015).
As Resource New penetrates this new market in rural areas, it will position itself to have
competitive advantage over its competitors (Galetic, & Nacinovic, 2006; Pearce,1982). To
increase the community ownership and cut on raw material cost, the firm will be outsource
supply of the raw materials from the locals but also will acquire one of the farms for quality
control purposes. This backward vertical integration gives the firm an opportunity to give
technical assistance to the locals growing the raw materials on its behalf. Vertical integration
as a grand strategy also promotes dependability (Aveni, & Ravenscraft, 1994). The capital costs
are high and in trying to maintain the competitive advantage ,the firm will use the
differentiation strategy. RET- Biomass energy is unique not only because it offers the
community cleaner energy but also in that the community identifies with it’s production. The
community understands the raw materials and there is a sense of ownership which promotes
the marketing for the product. Resource renew will establish itself in a niche market segment
by providing this energy to a rural population with no hydro-power energy. This is a special
clientele as they are subsidized by the government through poverty reduction programs and
Resource Renew Ltd will be able to maintain its profits (Akan, Allen, Helms, & Spralls, 2006).

6.0 LONG TERM OBJECTIVES

The long-term objectives which will help the firm evaluate its performance in line with its
Mission statement are as follows:

7. To increase shareholder’s earnings by 5% by 2025

8. Increase the production of biomass energy to cover 5 rural districts by 2025
9. To partner with local farmers in producing raw material in 2 provinces by 2025
10. To have workers spend 15% of their work time per year in skill development activities
by 2025

13
 11. To be a lead company in using innovative technology in biomass energy production by
2025
12. To contribute 1.5% of the annual gross revenues to local social sector programs by 2025

7.0 SHORT TERM OBJECTIVES

In order for the firm to achieve the long term objectives, there will be the following short term
objectives which will help implement the strategy in a phased manner:

8. Resource Renew Ltd will develop a marketing strategy by 2022

9. Resource Renew will supply 50% of its raw materials by 2022
10. Resource Renew Ltd. will acquire equipment able to produce biomass energy to service
30% of households in 5 rural districts by 2022 .
11. Resource renew Ltd. will have contracts signed with at least two farmers per district to
partner with in raw material farming in the 5 districts by 2022.
12. At the end of one year, 30% of the workers will have attended at least one skill
development training.
13. Two middle level managers will do a course in new technologies in the energy sector
by 2022
14. Resource renew will renovate one hospital ward at the local hospital by 2022.

8.0 FUNCTIONAL STRATEGIES AND TACTICS

Marketing Strategy: The Marketing department will use the product development strategy. It
will be introducing a new product to a new market and this will require use of the, ‘PULL’
strategy. There will be efforts in building brand awareness even before there is a threat of new
entrants. Skim pricing will also be used as a marketing strategy because even if the community
is a poor community, they are receiving subsidies from the government and other
developmental partners.

14
 Department Tactics
Marketing Focus group discussions
Local radio programmes
Radio spots
Sponsored sports
Community Drama
Community meetings
Collect feedback from clients through surveys
Branding

Financing Strategy: Resource Renew Ltd. will aim to develop accountability frameworks in
the company. All transactions will be recorded and audited timely. Navision software will be
used to reduce on fraud. In-service training to accounts staff will be on-going.

Department Tactics
Finance Navision installation
Inservice training
Management of Inflow and outflow transactions
Keeping transaction records updated
External auditors

Research and Development strategy: With differentiation as a generic strategy for Resource
New, there is need to constantly innovate better ways of being unique in the services it offers.
It will take up a strategy as a technological leader investing in innovations. The strategy for
developing a learning organization and knowledge management will be implemented.

Departments Tactics
Research and Abstract and concept writing skills course
Development Exchange visits with similar plants
Rewards for best concept notes
Subscriptions to online resource material

15
Operations Strategy: The plant will be based in 5 rural districts where the clients for the RET
are. Most of the factory workers will come from the rural districts resource renew ltd will be
operating in. Most workers will be trained on the job considering that this is new business and
very few of the locals would have the skills required. Equipment will be imported but
innovations will be encouraged to identify alternative cost-effective technologies. The supply
chain management will be assured by vertical integration.

Departments Tactics
Operations Build warehouse for storage
Make work teams and identify supervisors
Quality control
Identify farms to partner with
Manage firm’s farm
Coordination meetings with other departments

Logistics strategy : the firm will outsource half of the raw materials and aim to provide the
other half. This combination of outsourcing and backward vertical integration ensures
community ownership alongside quality control and dependability. It will maintain the
competitive advantage of vertical forward integration as it installs and distributes the
commodity.

Departments Tactics
Logistics Sign contracts with suppliers
Sign contracts with agents for raw material collection
Run farm for raw materials
Distribute the energy produced to clients
Forecasting and quantification of needed resources

Human Resource Management (HRM) strategy: The firm needs more of factory workers who
do not need to be highly educated. It will also introduce work teams to enhance quality and

16
productivity. Skills development programs are facilitated and the appraisal system enforces the
requirement to upgrade one’s skills.

Departments Tactics
Human Resource Recruitment
Management (HRM) Inservice training
Skills development through offsite training and e-
learning
Appraisal
Coordination of the renovation for the hospital ward
Facilitation of health schemes

Technology strategy: The technology strategy will focus on enhancing organizational learning
and knowledge management. Improved communication among departments and also
externally with the stakeholders due to the technology will play a big role in sustaining its
core values of Efficiency , Quality, Dependability and Innovation

Departments Tactics
Information Manage firm’s computer networks
Technology and Manage and protect data resource
Information Systems Update operating systems
Facilitate knowledge management platforms

9.0 POLICIES THAT EMPOWER ACTION

Policies and guidelines to empower the workers to make decisions which are aligned to the
Mission, strategy and tactics of the firm are in place. Thompson, Strickland and Gamble (2015)
mention that, “Policies and procedures provide company personnel with a set of guidelines for
how to perform organizational activities, conduct various aspects of operations, solve problems
as they arise, and accomplish particular tasks”. Algorithms have been developed to help arrive
at standardized answers for most of the issues that would need decision making. Most routine
activities are standardized, and this will help workers understand their roles even without the
managers being involved (Thompson, Strickland & Gamble (2015).

17
10.0 STRATEGIC CONTROL AND CONTINUOUS IMPROVEMENT

The Total quality management (TQM) program has been imbed in the management systems
to promote continual quality and productivity improvement. It will be extended to workers at
all levels in different departments to have a corporate culture that strives for quality and
customer satisfaction (Thompson, Strickland & Gamble (2015). Benchmarking will be used to
understand how best the firm can improve value chain activities. Better performing companies
will be studied and best practices learnt.

11.0 FINANCIAL PLAN : 2021-2022

Resource Renew has acquire a $2,000, 000 loan to install equipment for production and
distribution of the energy. The operations capital of $150,000 will be complimented by the
income from sales and the government subsidies. This money will be used to acquire land for
farming and putting up the plant and warehouse. Other expenses will be recurrent
consumables, fuel and maintenance of infrastructure. On Human resource, there will be routine
administration expenses, trainings and health schemes funded and also renovation of a hospital
ward as social responsibility. Marketing and the workers wage bill will be allocated a total of
$40,000 with a loan repayment of $100,000 per year. Routine running costs for departments
have been assigned $3000, this does not include the Marketing department which has its own
budget.The net balance at the end of the year will be $341,000 which will be used implement
recommendations from the Total quality management (TQM) program as the firm start
operations for the following year. Details are in Fig. 1.1 below.

Fig. 1.1

Cash flow budget

Cash inflow
Beginning cash balance $150,000
Government payments $200,000
Sale of energy to the communities $200,000
Loan $2,000,000
Total inflow $2,555,000
Cash outflow

18
 Procurement of farmland (1000 acres) $3,000
Infrastructure (Warehouse and factory) $10,000
Equipment installation at $1000 /KW (direct combustion $2, 000,000
equipment) and for distribution, Software technologies
Spares and other consumables $10,000
Fuel $15,000
Raw material procurement (Sugarcane and cassava residues) $15,000
Wage bill $30,000
Marketing $10,000
Administration and Training $5,000
Renovation of a hospital ward $2,000
Maintenance (Buildings, Vehicles and Equipment) $, 3, 000
Health schemes for workers $,3,000
Operations budget for departments (apart from marketing) $3,000
Loan payment $, 100,000
Total outflow $2,209,000
Cumulative cashflow $341,000

12.0 CONCLUSION

This strategic business plan outlines how the mission of Resource Renew Ltd. will be achieved.
With only 3% of the rural population being electrified, the energy from this company will
compliment the supply from hydropower. This will form a foundation for Small and mid-size
enterprises to invest in rural areas and in turn alleviate poverty for the locals. The community
will only pay 50% of the cost of energy as the government will pay the other 50%. This assures
Renew Resource profitability as it not only reduces inequity by serving the rural areas but also
supplies clean energy to replace the traditional biomass energy.

19
13.0 REFERENCES

ADB (2016). Country Profile: Republic of Zambia. Available at:

file:///C:/Users/WB380054/OneDrive%20-

%20WBG/Desktop/UNICAF/Module%202/Summative%201/Political.pdf

[accessed 20 September 2020]

Akan, O., Allen, R. S., Helms, M. M., & Spralls,Samuel A., I.,II. (2006). Critical

tactics for implementing porter's generic strategies. The Journal of Business

Strategy, 27(1), 43 53. https://doi.org/10.1108/02756660610640173

Aveni, R.,A., & Ravenscraft, D. J. (1994). Economies of integration versus bureaucracy

costs: Does vertical integration improve performance? Academy of Management

Journal, 37(5), 1167. Retrieved from

https://search.proquest.com/docview/199808352?accountid=188730

Galetic, L., & Nacinovic, I., (2006). Growth Strategies As Strategic Choice Of Croatian

Enterprises: An Empirical Study. Zagreb: University of Zagreb, Faculty of

Economics and Business. Retrieved from

https://search.proquest.com/docview/217742785?accountid=188730

IRENA (2013). Zambia Renewables Readiness Assessment 2013. Retrieved from

https://www.irena.org/documentdownloads/publications/rra_zambia.pdf

KGRTC (2013). Strategic Business Plan. Retrieved from

https://www.kgrtc.org.zm/docs/KGRTC-Strategic-Business-Plan-2018-2022.pdf

Batchelor, S., Brown, E., Scott, N., & Leary, J. (2019). Two birds, one Stone—Reframing

cooking energy policies in africa and asia. Energies, 12(9), 1591.

https://doi.org/10.3390/en12091591

20
JICA (2008). The Study for Development of the Rural Electrification Master Plan 08-004 J R

E D No. in Zambia Final Report Summary Report. Retrieved from

https://openjicareport.jica.go.jp/pdf/11871019.pdf

Kaunda, S., Morel , M., & Mtawali , M. (2013). The State of the Energy Sector in Zambia;

Implications for Industrial Development, Jobs and Poverty Reduction. Retrieved

from

http://www.pmrczambia.com/wp-content/uploads/2015/06/The-State-of-the-Energy-Sector-

in-Zambia-.pdf

Kachapulula-Mudenda, P., Makashini, L., Malama, A., & Abanda, H. (2018). Review of

renewable energy technologies in Zambian households: Capacities and barriers

affecting successful deployment. Buildings, 8(6)

https://doi.org/10.3390/buildings8060077

McGuire, J. P. (1995). Successful strategic planning is more important then ever. Healthcare

Financial Management, 49(4), 10. Retrieved from

https://search.proquest.com/docview/196369081?accountid=188730

Zambia. MEWD (2008). National Energy Policy, retrieved from

https://www.moe.gov.zm/?wpfb_dl=42

Zambia. MEWD (2010). Power System Development Master Plan for Zambia, 2010-2030.

Retrieved from https://www.moe.gov.zm/?wpfb_dl=46

Zambia. Ministry of Energy (2019), National Energy Policy. Retrieved from

https://www.moe.gov.zm/?wpfb_dl=51

21
Mudenda,K, P., Makashini, L., Malama, A., & Abanda, H. (2018). Review of Renewable

Energy Technologies in Zambian Households: Capacities and Barriers Affecting

Successful Deployment. Buildings,8 (77).

Norad (2011). Joint Evaluation of Support to Anti-Corruption Efforts Zambia Country Report

retrieved from https://www.oecd.org/countries/tanzania/48912843.pdf

Nurhendiarni, S., Hidayat, N. K., & Pasasa, L. (2015). The effect of asean open skies policy

2015 upon opportunities for low-cost carriers in indonesia - a case study of

pt.citilink. The South East Asian Journal of Management, 9(1), 34-51. Retrieved

from https://search.proquest.com/docview/1691156514?accountid=188730

O'Regan, N., & Ghobadian, A. (2002). Formal strategic planning: The key to effective

business process management? Business Process Management Journal, 8(5), 416-

429. https://doi.org/10.1108/14637150210449102

Pearce, A. (1982). Selecting among alternative grand strategies. California Management

Review 24(000003), Retrieved from

https://search.proquest.com/docview/206283675?accountid=188730

Phiri, J., & Guven-Uslu, P. (2019). Social networks, corruption and institutions of

accounting, auditing and accountability. Accounting, Auditing & Accountability

Journal, 32(2), 508-530. https://doi.org/10.1108/AAAJ-07-2017-3029

Roberts, C. C., & Connors, E. J. (1998). Core responsibilities of board trustees. Journal of

Healthcare Management, 43(2), 111-3. Retrieved from

https://search.proquest.com/docview/206724298?accountid=188730

Sharma, B. (2008). Technology strategy, contextual factors and business performance: An

investigation of their relationship. South Asian Journal of Management, 15(3), 19-

22
 39. Retrieved from

https://search.proquest.com/docview/222683500?accountid=188730

The World Bank , The World Bank in Zambia, Available at:

https://www.worldbank.org/en/country/zambia/overview [accessed 20 September

2020]

Thompson, A .,Strickland, A, & Gamble, J. (2015). Crafting and Executing Strategy:

Concepts and Readings (20th Ed.). Retrieved from

https://unicaf.vitalsource.com/#/books/9781307141276/cfi/109!/4/2@100:0.00

UNICEF (2016). National Political Economy Analysis and Fiscal Space Profiles of countries

in the Eastern and Southern Africa region Case Study Zambia. Retrieved from

https://www.unicef.org/zambia/sites/unicef.org.zambia/files/2018-

08/UNICEF_PEA_-_FSA_Zambia_-Final_Report_2016.pdf

Zambia. Zambia Development Agency (2013). Energy Sector Profile. Retrieved from

https://ab-network.jp/wp-content/uploads/2014/07/Energy-Sector-Profile.pdf

Zielewska (2009). Biomass energy register for sustainable site development. Retrieved from

https://ec.europa.eu/energy/intelligent/projects/sites/iee-

projects/files/projects/documents/ben_structure_of_master_plan.pdf

23