The Energy Smart Company Going International

THE ENERGY SMART COMPANY GOING INTERNATIONAL

Abstract

The Energy Smart Company has decided to look into going International in order to help with the energy crisis. The company has asked me to evaluate Spain as a potential market. Explanation of Spain's political and legal system of starting a business is included in this paper. In conclusion, I will let the company know if Spain considered for expanding the company.

ENERGY SMART COMPANY GOING INTERNATIONAL

The Energy crisis around the world has increasingly got worse, compared to the 1970's when it first became aware as a problem (Time, 1973). The gas and oil prices started to rise to where the people started realizing action needs to be started. Experts were saying that the country would be out of oil by the year 2030 (Time, 1973). No one believed these experts until around 1990, when gas prices went over $4.00 a gallon. Now there are many companies trying to help with this crisis.

The Energy Smart Company has been in business since 2008, when they started installing retractable window and door screens into homes (Energy, 2009). The idea of the company is to help customers save money on their energy bill by going green to improve their quality of living. Implementing the energy saving products are expensive at first, but within three to ten years the customers will get their money back (Energy, 2009).

The company decided that Spain would be the best market to start an energy smart business (MIT, 2012). Spain is the top world producer of solar panels and they are the leading country over Japan and the United States. Eduardo Zarza, the director of concentrating solar research, (MIT, 2012) has said that the Solar Research Center in Almeria, Spain has gone from a research company to an international superstar (MIT, 2012). Scientists have come from all over the world to see learn more about the solar panels. Acciona is the company in Spain that makes and sells the solar panels. They connected the largest PV plant to the Portuguese power grid (MIT, 2012).

The national government is strong, but the country divided into regions, each has fiscal and planning powers within their areas. This is more or less like America and the separate states. There are many cities within each region. In each region, the government provides grant aid for the installation of renewable energy resources and these grants are easy to obtain (Porteus, J. 2011).

The National government does not direct the economy, except at the strategic level, as Washington does (Porteus, J., 2011). The regions have a great deal of independence and unless something bad happens to government of the state do not get involved. There are three levels of judiciary in Spain - Central, Regional or Community and Municipal (AIU, 2011). The high courts make a decision and the other court systems must follow and not interfere.

According to the CIA World Fact book, Spain's population is 46.5 million people (CIA, 2011). The government is parliamentary monarchy and the legal system is civil law with regional variations (AIU, 2011). Spain is the best place for a solar company because of their hot summers and their mild winters. The sun shines about 350 days out of the year (Spain, 2011). Most business close down from 1:30pm to 4:30pm in order for families to have a meal or take a siesta (nap) (Spain, 2011). Spain is the thirteenth largest country in the world and is fifteen years above average in GDP growth (CIA, 2011). In 2008, the real GDP growth rate was 0.9%. In 2009, the real GDP growth rate was -3.7% (CIA, 2011). In 2010, the real GDP growth rate was -0.1% (CIA, 2011). Spain is one of the least corrupt countries (Spain, 2011)

Spain's government is all for the expansion of the solar industry with a goal of 20 percent of renewable energy (MIT, 2012). The advancement of solar energy companies will be the forefront of the global field for Spain (MIT, 2012).