Capstone Essay Example | Topics and Well Written Essays - 2000 words

Capstone - Essay Example The products offered by the company primarily include micro turbine units, components, subassemblies and different types of machineries associated with it. Other types of accessories offered by the company include rotary gas compressors having digital controls, and various heat recovery equipments for Combined Heat and Power (CHP) applications. The stocks of Capstone are traded in NASDAQ with the ticker symbol "CPST" (Capstone Turbine Corporation, 2012a). This study entails about the detailed analysis of the internal and external environmental factors associated with Capstone Turbine Corporation. Based on the internal strengths and weaknesses and external opportunities and threats experienced by the company some of the strategic recommendations have been provided in this study which could help it to compete effectively in the market and increase its profitability position. External Environmental Analysis The external environmental factors having an impact on the operational effective ness of Capstone have been analyzed in this section. The mission and vision of the company and its effectiveness on the overall success of the company have been analyzed. Porter’s Five Forces analysis tool has also been used to assess the impact of the various industrial factors affecting the company. Mission and Vision of the Company The mission and vision of the company is to become the leading producer of low emission micro turbine systems in the world (Capstone Turbine Corporation, 2012c). The primary stakeholders of the company include its employees, company management team, the suppliers, the consumers and the investors. The company has managed to utilize its available resources in an effective manner which is indicated through its increase in profitability in the recent years. Capstone management is committed towards the growth and expansion of the company. There has been a significant rise in the revenue generated by the company for the fiscal year 2012 as compared to the year 2011. There has been a consistent increase in revenue generation of the organization for the past 20 quarters. The growth strategies of Capstone are mainly designed to achieve profitability, increase cash flow generation and improve the gross margin of the company. The company is mainly focused on the reduction in costs through various energy efficient means. Porter’s Five Forces Analysis Porter’s five forces model helps an organization to assess the competitive forces which exists within the industry (Hill & Jones, 2012, p. 49). The forces which help out in the process are named as a) threat of new entrants, b) threat from the substitute products or services, c) bargaining power of the suppliers, d) bargaining power of the consumers and finally e) competition within the industry (Society for Human Resource Management (U.S.), 2006, p.38-39). The five industrial forces having an impact on the industrial equipment industry in which Capstone operates its busines s activities is described below: a. Buyer Power: The industrial equipment industry can be adjudged to be highly fragmented in nature because it consists of many segments and sub-segments. Significant number of large and medium sized