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Smart Solutions for Global Warming January 31, 2007

Posted by Kira in Organizations and Mother Earth.

Although everyone is enjoying the warmer weather and more mild winters, the rising temperatures of our Earth may be detrimental. More recently, there has been a lot of concern over the issue of global warming. With all the expressed concern for the environment and the high price of oil, any company or organization would be wise to tap into the environmentally conscious consumer market. This is a great time for companies, such as Ormat Industries located in Israel, to enter into the renewable energy market.

“A Mideast nation with no oil of its own, Israel is increasingly tapping into a different kind of resource- the inventiveness and persistence of its scientists and entrepreneurs. From shale oil to solar power, Israeli companies are becoming world leaders in alternative energy, exporting their technology to customers worldwide while at the same time reducing Israel’s dependence on costly oil imports.”

Ormat Industries has become a global leader in geothermal energy and is one of the hottest renewable energy companies traded on Wall Street. Much of the company’s success is due to a turbine design that allows renewable energy sources to be converted into electricity more efficiently. The company operates 11 plants in five countries that use its turbine technology.

This article touches on a few of the issues discussed at the beginning of Chapter 3. Ormat has dealt nicely with managing both their specific and general environment. By breaking into the renewable energy market, they have surpassed their oil competitors and have also satisfied consumer/stakeholders’ changing wants and needs for a safer environment. The company has also satisfied other outside stakeholders including the government and consumer interest groups, such as the EPA, that strongly advocate for alternatives to oil. Managing these forces from outside stakeholder groups helps the company’s ability to secure resources. Ormat has also managed their general environment well- more specifically economic, technological, and environmental forces. With their new turbine technology, the company eliminated its need for costly inputs- such as oil. This new technological development has important implications for an organization’s competitive advantage. Also, their environmentally friendly energy source strengthens the organization’s relationships with competitors, consumers, and government agencies.

This article is also relevant to the resource dependency theory. Organizations are dependent on their environment for the resources they need to survive and grow. With no oil in Israel, Ormat would not be able to survive. The absence of oil in Israel left this scarce resource to be completely controlled by other organizations. The goal of this theory is to minimize dependence on other organizations. Ormat was able to minimize its dependence on other organizations since oil is not necessary for renewable energy. This added strength to the company and has made them less vulnerable to other organizations. With the exportation of their technology worldwide and 11 plants in five countries, Ormat is increasing their influence over the global environment.

I hope that Ormat Industries sets an example that other companies will follow. The future and safety of our environment is crucial- which many people do not seem to understand. Hopefully we will see an influx of companies following suit and breaking into the renewable energy market. I look forward to hearing more about the company’s future projects that were also discussed in the article.




1. Stephanie - January 31, 2007

After listening to Bill Nye this evening, global warming and the pursuit of new technologies for energy are hot topics on my mind. The technology for alternative energy seems to be quite feasible as so many advancements, discoveries and inventions have been made, but the problem seems to come back to the will to practice and establish the new technology into our lives. It seems as though that true integration of the technology and use will not be made unless more governments and influential companies decide it is a priority to make changes now. Setting benchmarks and goals are not enough if there is not passion and true belief behind the effort.
I too hope that other companies follow Ormat Industries example, as our environment is truly in danger of drastically irreversible changes that will ultimately negatively affect our conditions of living.

2. Home Improvement List - August 17, 2007

Thanks for sharing this information. Really is pack with new knowledge. Keep them coming.

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