The case study Aggreko

In any case, the expansion of a firm globally is considered as a strategy for improving the firm’s position towards its competitors. However, this is not always the case. In fact, in order for the above target to be achieved it is necessary that the firm is able to develop a competitive advantage towards its rivals. This issue is examined in current paper. Reference is made to a specific firm, Aggreko plc, a global competitor in the energy market. the ability of the firm to compete effectively its rivals in the global market is evaluated by analyzing its macroeconomic environment. It is made clear that the firm’s potentials to achieve a stable growth in the international market are many. however, the improvement of certain of its strategies is necessary in order to avoid significant market risks, in the context described below. 2. Aggreko plc – Company Overview Aggreko is a leading firm in the energy industry. The firm specializes in the provision of ‘temporary energy rental solutions’ (Aggreko 2011, Corporate Website). apart from the above sector, the firm also activates in a series of similar areas, such as ‘electronics, industrial manufacturing and machinery manufacturing’ (Hoovers 2011, Competitive Landscape). … amples of the specific business strategy is the acquisition in 1986 of Electric Rental Systems Inc – through which the firm entered the US market and the acquisition in 1989 of Yeow Kong Electrical Company (Singapore) through which the firm entered the Asian Pacific market (Aggreko 2011, Corporate Website, History). The financial results of the organization reveal its strength, as a global competitor in the particular industry. indeed, in 2010, the firm’s revenues were estimated to ?1,156m (and ?1,023m in 2009), a profit that is significant if compared with the firm’s revenues in 2003, when the firm managed to reach a profit of ?324m (Aggreko 2010, Corporate Website, Investors, Strategy and Performance) – the increase in the firm’s profitability is clear and impressive. through the years, the overall improvement of the firm’s performance is also reflected in the difference of the firm’s ROCE (Return on Capital employed) which was estimated to 32% in 2010 – compared to 13% in 2003. The continuation in the improvement of the firm’s performance can be made clear in Table 1 – Appendix, where the key financial results of the organization for the years 2009 and 2010 are presented. At the same time, Graph 1, Appendix, shows the firm’s strategic performance globally. it is clear that there are regions (Africa) where the firm’s strategies need to be re-evaluated being aligned with the local social and economic conditions. Under these terms, the review of the firm’s macroeconomic environment could help to identify any weaknesses or failures, which significantly impact the organization’s plans. 3. Macroeconomic environment In order to evaluate the competitiveness of the firm within its industry, it is necessary to identify the key elements of the