Case study analysis

Ecosoluciones(Eco) is a non-profit research organization located in Madrid, Spain. One of their

objectives is to try to introduce non-polluting sources of electricity in developing countries. One
successful application of their research was the Alumbre Project. This provided electricity
created by wind generators to the remote village of Alumbre, Peru, which previously had none.

In Alumbre, wind generators were installed by Ecosoluciones to supply, for the first time,
=Ecosoluciones also agreed to maintain and repair the generators. There was a complete
transformation in the production process. The factory was able to buy new machinery.
Productivity increased dramatically. New jobs were created.

Ecosoluciones also promised, in partnership with Peru Telecom and the Peruvian government, to
help fund the improvements in communication between Alumbre and the rest of Peru. This also
allowed regional trade to develop. The entire community experienced significant improvements
in their quality of life. The Peruvian government saw this as a practical solution to develop other
depressed areas of the country.

Unfortunately in 2008 a severe financial crisis hit Europe and the Spanish government suspended
part of its funding for research organizations such as Ecosoluciones. As a direct result, the
management of Ecosoluciones felt it may no longer be able to maintain Alumbre’s wind
generators.

1. Define the term ‘stakeholder’. (2 marks) define and give examples (1 or 2 examples)

Stakeholder is anyone or any group that has interest in the business. It can affect or can
be affected by the performance of the business. For examples, owners, employees,
customers.

2. What are the businesses that are in the secondary sector. (2 marks) define the term and
give examples of businesses.

Secondary sector is a sector that involves businesses that manufacture raw materials into
finished or semi-finished products, examples are clothing factories, car manufacturers, textile
factory in the case study, etc

3. Identify 4 different stakeholders of Ecosoluciones in the case study. (4 marks)

Peruvian government-Eco partners, Spanish government-funding Eco

Textile factory-Eco supplies electricity

The local community of Alumbre

Employees of textile factory-but not so directly…they are directly connected to the textile
factory, but they have a ‘say’ since they supply electricity

4. Explain possible conflict of two groups of stakeholders in the case study. (4 marks)

With the introduction of electric-powered machinery in the textile factory, productivity

rose dramatically, a clear benefit to the owners of the factory (one stakeholder). However,
if Eco leaves the project, there will be some disappointment of the owners. They can’t
maintain the factory, thus, there will be conflict with the workers of losing jobs.

Peruvian government and Eco-Eco has commitment to the Peruvian government. It has
improved industry but the withdrawal of Eco may cause conflict.

The local community and Eco-The local community people’s lives have been improved,
the withdrawal of Eco to maintain the Alumbre project may cause conflict.

5. Describe the production stages in textile company. (inputs, processes, outputs) (6 marks)

Inputs- machine operators, workers, managers, machines, the building (2)

Processes- sizing, desizing, scouring, bleaching, mercerization, dyeing, printing,

special chemical finishing, etc.(2)

Outputs-the cloths, the fabric in different sizes or colors.(2)

6. Explain one objective of Ecosoluciones(Eco). (3 marks)

Identify one objective(see the types of objectives you have learned), explain by using the
case study.

1 point identify

1 point explain

1 point application of the case study

social responsibility. It is a non-profit organization so its main purpose is not making profits but
to help remote villages like Alumbre, Peru where there is no electricity/limited electricity.

In case the full mark is 2:

1 point identify
1 point explain and apply

Only explanation no application- 0