Namaste Solar Case Study

1. What is the mission of Namaste Solar? How does the mission reflect the company’s values? Explain. The mission statement of Namaste Solar is “to propagate the responsible use of solar energy, pioneer, conscientious business practices and create holistic wealth for our community which benefits all stakeholders equally- customers, employees, investors, and the environment.” The mission statement reflects the company’s values because they direct explain how the values or linked the mission statement. The company has five core values. The first value is “care for the earth.” Namaste Solar Company’s core activity was designing and installing solar energy systems.” Namaste Solar even went so far and got there building to be LEED-gold certified. The second company value is “to care for the customer.” Namaste Solar cares for the customers by offering them a 10-year warranty on all of their residential installations. Namaste Solar also reimbursed customers for their lost energy production when equipment was out of service for repairs.

The third company value is “to care for the community.” Namaste Solar has chosen to donate 1% of its revenues in the form of solar system installations to nonprofits communities. The forth value is “to care for the company.” Namaste Solar care for the company by choosing to create a collaborative and equitable culture. They support and stand for a company that is open-management, democratic decision-making, and a meritocratic system. The fifth value is “to care for ourselves.”

2. Does it seem that Namaste Solar has made a commitment to operating in socially responsible manner? Is the company’s strategy ethical and does it address the needs of all of its stakeholders? Explain. Yes, I do think that Namaste Solar has made a commitment to operating in socially responsible manner. In the text it says that one of the company founders is in complete control of marketing the company. His main focus is to reach out and marketing to the community in forms of educating them about the company. He is responsible for making sure that community has a good idea and sense of understanding exactly what the company does, what they stand for, and the importance of solar energy. Yes, I do think that the company’s strategy is ethical and does address the needs of all of it stakeholders because for one the company is going about promoting and advertising their company the right way.

They aren’t doing any false educational programs or promoting their company and the employees are very involved in the decision-making process so this benefits them as stakeholders. Therefore none of the employees are blindside by any of the decision making situations that the company has. 3. How does Namaste Solar link rewards and incentives to strategically-important employee behaviors and the company’s targeted outcomes? Namaste Solar has linked rewards and incentives to strategically-important employee behaviors and the company’s targeted outcomes because from the start Namaste Solar used a strategy for encouraging employees by showing a commitment to employee ownership.

The company crafted restricted stock plans that allowed all employees have an equal opportunity to buy shares in Namaste Solar at any time, at the then-current value. They allow newly hired employees to buy stock on their first day and get to enjoy the benefits of ownership, including dividends if any are paid. One of the founders of the Namaste Solar Jones stated that during the hiring process they make sure that they mention to every applicant that if hired “we want your ideal situation to be staying with Namaste Solar for five years or more. The reason being is because they want to hire people who want to be there for long-term, because Namaste Solar business model depends upon long-term thinking.

4. What are the key features of Namaste Solar’s organizational culture? Does the company’s culture support good strategy execution? Explain. The key feature of Namaste Solar’s organizational culture is that they have created and implement a culture that is committed to sharing the risks and rewards of Namaste Solar. In that same culture they have made sure that they have a decentralized decision-making process. This culture setting allows employees to work in an environment that is fun, upbeat which allows them to enjoy their working there and what they do. I do think that company’s culture support good strategy execution because if the employees are happy and being very productive in what their work then this means that the company will be very profitable. 5. What are the three strategic options concerning the company’s future? What impact will a choice among the three options have on the company’s values and culture and employees and other stakeholders? The three strategic options that concerns the company’s future are the following 1. “Sell the whole kit and caboodle.”

2. “Selling a portion of the company, with employees retaining partial ownership.” 3. “Recommit to Namaste Solar’s original vision of being a privately held, 100% employee-owned firm, with or without some changes in strategy. The text discusses that both strategies 1 and 2 would bring a new beginning and fresh infusion of capital into the company. Because the company was growing at a faster rate than it was able to generate capital internally, the founders found out that made it difficult for them to obtain non-recourse bank-loans.

Many of the employees argued that strategy 2 offered a way to offer a way to bring in external capital to support growth and all while keeping the same culture. Some employees think that selling part of the company and bring in a private equity investor, so that that way the company is able to keep control of their same mission statement and stay true to their values. Strategy 3 is the only path consistent with the company’s values. I think that the company best option is to sell a portion of the company, with employees retaining partial ownership. I think that bring in outside investors will allow the company to potentially generate some capital all while allowing the organization to stay true to their mission and values.