SolarComm Scenario
SolarComm Scenario
SolarComm is a hypothetical solar power company in Austin, Texas, where you are the general manager. This United States-based solar power company specializes in high-value, custom-built solar power systems for commercial and multifamily residential customers. The company was recently acquired by a large private equity firm at a premium price. After the acquisition, SolarComm’s new executive leadership made several moves to increase profitability and pay down the new company’s large corporate debt. The strategy included raising the prices of SolarComm’s most popular products and signing vendor agreements with low-cost manufacturers.
Shortly afterward, the solar consultants who sell SolarComm products began to complain that manufacturing problems, including the delivery of faulty components, had reduced customer satisfaction and resulted in lost business. SolarComm engineers, who are responsible for designing and overseeing the solar power systems’ construction, assert that the problems are exacerbated by SolarComm’s procurement practices. The engineers report that procurement managers must be willing to negotiate with the manufacturers more aggressively...