You are on page 1of 4

What is the central issue or problem in the case?

Redco a company privately organizes and privately operated without any financial help/ assistance, seeks to develop this place called Durbuk in the district of Leh. This covers 4 villages, they are to provide them with power generated from solar, as DG caused pollution and was insufficient to fullfil the needs of the people and SUG was very expensive to maintain. Low in cash Redco seeks helps from another organization LEDeG that also is a non- profit organization which covers the needs of the people by genetating revenue by other sources and coming up with new ideas by conducting a needs analysis of new opportunities. The main issue of concern is its long term existence and maintenance which is highly essential to look through for its survival and persistent operation.

What are the important case facts?


Following are the important case facts; Solar energy was to be provided to a least economically developed block of the district, which is a challenge as temperature mostly stays cold as low as -30 C to -40 C (Extreme weather conditions). The 5 villages where revenue was generated from were inhabitable. Literacy rate was 20%, where 50% were males. Per capita income of Durbuk was below Average. Summer stayed for 4 months from June to September. Where solar energy was mainly extracted. Lighting, room, heating, cooking and water pumping were the main areas of concern of the people. Primary aims:1. Developmental Interventions. 2. Identify a local institution for the management of electricity production and supplies from the SPV. 3. To maintain and undertake operational decisions. Organizational structure of REDCO comprised of general body members who were beneficiaries; 1. Power management committee 2. Board of directors For the check of misuse of electricity. Redco and LEDeG enetered into a memorandum of understand (MOU) with Power Development Department (PDD) of J&K government by which they became responsible for supplying power to the people directly. It became a public + private task, involving both parties in which operation was done by Redco and LEDeG, maintenance was under Power Development Department (PDD) that occasionally faced failure and interruptions due to lack of scrutiny.

Is the data provided in the case enough for analysis?


It contained reviews by the people, facts and tables by LEDeG, along with numerous findings. It does not contain a conclusion after the research for a better analysis. A part from that I think it was sufficient enough.

What are the mission, strengths and opportunities in front of REDCO?


Mission: Providing facilities to poor villagers, improve their standard of living Coming up with enough finances to generate energy to fulfill the needs of the people, especially under developed regions with capable human labor that can be used in the production of agricultural goods. Strengths: They were able to plan and conduct a task in Durbuk, despite the shortage of finances, they provided electricity to villagers, where the temperature was extreme, traveling was impossible during winters because of the snow. Still they managed to execute their task smoothly, this is their biggest strength to be able to do things and come up with solutions for various problems that they are facing. Opportunities: They will get more opportunities if they collaborate with more organizations, that can help them with finances, apart from getting the support for LEDeG, that is their strength. They need to be associated with more organizations, this will pave more opportunities for them to work on other projects. They not only produce electricity from solar photovoltaic plant but also use generators and SPVs. There are few companies that do the same, hence this gives them a competitive edge. Apart from their main concern i.e. the raise of finances, they have got a lot of opportunities to prosper in future with their existing goodwill and energetic manpower, they have themselves a future of opportunities.

What are the mission, strengths and opportunities in front of LEDeG?


Ladakh Ecological Development Group, is the oldest and well-known non government organization in the area. Mission: Their mission is to develop the under developed, by using various resources, they find the missing gap nad try to fill it up with whatever resources they can use. Mostly provide human labor. Which is used in terms of administrative and implementation support. Strengths: They are passionate about their work, they form new developmental intervention for the benefit of the inhabitants, its a non-profit organization formed for the welfare of the people and the country. Their biggest strength is their human capital that are passionate about their work and provide training to people in order to bring a better brighter future.

Opportunities: They have a lot of opportunities in this field as development is required everywhere, they can be very successful if they keep innovation their top expertise when it comes to generating revenues through business ideas.

What are the main problems faced by REDCO?


Main problems faced by REDCO are; The major problem is their financial shortages, which is essential and highly needed to run the cooperative. They lacked resources to maintain their administrative stability. This was outsourced. Durbuk is a cold desert where electricity was to be supplied made from solar energy. Hydropower development was not possible due to frost and reduced discharge during winter. SPV plabt could not be considered due to its heavy investment, regular maintenance and heavy replacement costs every 5th year. They had insufficient biomass burning. Water supply was unreliable. They were dependent on yhe government. The electricity pricing had been done in accordance to the state government regulation at a subsidized rate and there was no monitoring so 50/ house wasnt enough to meet the expenses of the company. The current amount which was collected by the villagers was not fixed as they were not regular in making the deposits monthly. Electricity was also mis-used and stolen by people. They are highly dependent on donors. When we sum it all up, we can forsee that there is an upcoming of even tougher days for REDCO, as the time will pass the demand will increase and they will be under more pressure.

What is meant by pump priming in the cooperative?


It is an action in order to sustain things i.e., using money generated through other sources for obtaining a certain task. In this case money was being obtained by other activities such as handicraft and ecotourism, revenue generated from them was used to run REDCO smoothly. This is called pump- priming.

Assignment # 2 Case Study; REDCO Limited Subject: Business Policy and Strategy

Submitted by: Hammad Gul Khan Mansoor Ali Siddiqui Zohaib Jahangir Tooba Tariq Sabeen Ashraf

Section: H Submitted to: Prof. Amjad Hussain Submission Date: 20th March, 2012