Reference no: EM132304609

Why not all companies can go for mass customisation?

WINDCO wants to construct and operate an offshore wind farm off the coast, in the Gulf of Mexico, a popular tourist area.

The main economic sectors in the area are: tourism and eco-tourism, commercial fishing, oil/extractive industries. The project and the geographical location are briefly described in the following.   

WINDCO has a successful track record of gaining stakeholder buy-in for its projects. However, this is the first project that will be constructed in an off-shore location. The board of directors is excited about the potential the project represents: if successful, the company can pursue a growth strategy that targets more off-shore development.

On the other hand, some board members and shareholders are somewhat leery of the new project as it is a departure from WINDCO’s previous wind farm developments, which are located in large swaths of agricultural (farm) land. These areas typically have low population densities and are in need of economic development.

The geographical area where the proposed project is to be executed is on Florida’s Gulf Coast. The offshore wind farm would be sited to the south-west of the coast, an area popular with tourists. This area subject to the strong marine dynamics found all around the area.   

The area where it is planned to build the offshore wind farm is 18 km off the coast. The aim of this proposal for an offshore wind farm consists of executing a project that makes it possible to produce wind energy using wind turbines in tandem with an aquaculture-related R&D project. The proposed wind farms will provide a man-made habitat for fish and shellfish. The research project has a 10 year timeline.

The aquaculture aspect of the planned development is being done in partnership with researchers at the Gulf Coast University and the Southwest Florida Oceanographic Institute, who will be evaluating the effectiveness of the technology and arrangement in producing fish and shellfish.

Job creation is mainly expected to take place during the construction phase of the project, with approximately temporary 150 jobs being created, including engineers, technologists, and highly-skilled tradespeople. Care and maintenance of the operation will require approximately 50 full time employees. The energy-generation (wind farm) project must obtain government approvals from the Ministry of the Environment, the Ministry of Energy and the Ministry of Fisheries and Agriculture.

The Ministry of Energy has a mandate to purchase renewable forms of power. Purchasing power from WINDCO’s Gulf Coast project would help the government to get closer to its “green energy” targets.

The Ministry of the Environment is monitoring the project’s development; however public input towards the project will largely dictate its response. The public has the ability to comment on the project through the government’s environmental registry, which enables the public and stakeholder groups to provide input on proposed projects.

The Ministry of Fisheries and Agriculture has some concerns about the public’s reaction to the project; however, it is interested in the results of the aquaculture study and potential recovery of the snook population. The following information shows how the project is perceived by other affected and interested parties: “.... Controversy exists over the construction of wind farms in areas with a certain environmental value. As always, and as is now the case during the early stages of plans for offshore wind farm projects, it is not easy for those with vested interests and those who are affected by the project to come to any kind of understanding.   

The construction of the first offshore wind farm envisaged for the Gulf of Mexico is on hold. The project, sited 18 km off the coast includes 270 individual 3.6 MW wind turbines which would provide 1000 MW of total power. This has been presented as the “first sustainable development initiative in the world to combine wind energy production with fish farming [aquaculture]”. Fishers, political parties, trades unions, social associations and the three town councils, who together make up the Local Fisheries Council, have unanimously rejected the initiative because of the detrimental visual impact it would have for hotel complexes planned for the area, and the effects on the daily movements of vessels fishing in the area. Neither does the Council see the economic advantages of the promoters’ proposal to install 500 cages under the wind farm for the farming of carnivorous species, with an estimated annual production of 40,000 tonnes of fish and 5,000 tonnes of shellfish.

Greenpeace believes the project is of great interest due to the large amounts of clean energy that would be generated and also because of the R&D element of hydrogen production, but is opposed to the unsustainable proposal for installing an aquaculture mega project, due to the multiple effects it would have on the environment and consumers. In short, too much activity for too small an area.

The communities of Cape Coral, Bonita Springs and Fort Myers are concerned that the development will negatively impact the perception of their pristine beaches, which are major drivers of tourism to the areas. They are unclear as to how they will benefit from the wind turbine development. Furthermore, because of the off-shore location of the turbines, they do not have the ability to approve or disapprove of the project.

The Florida State Tourism Bureau has concerns regarding the environmental and esthetic impact of the wind turbines on the area’s beaches and coastal areas, which are popular with tourists and large cruise ships, which often navigate the coastal communities as part of their cruises.   

The Gulf Coast Yacht Club Association represents yacht clubs and boating groups located on the coast. They are similarly concerned that the wind turbines will hinder access to their member clubs and pose a safety risk to boaters and other vessel owners/operators.

The Coast Guard is concerned that the presence of the wind turbines will pose increased hazards to marine life, birds and marine vessels, however, the project is not significantly aligned with the role/responsibility of the Coast Guard.

Using the description of the project, the geographical area where it would be situation and the reactions of both people affected by and with vested interests in the project, your task is to complete a Stakeholder analysis.

Step 1 Identify the stakeholders (hint: brainstorm).

Questions to guide you: What are the main bodies or administrative organizations that might be affected by the construction of a wind farm?

Which groups have the ability to approve/disapprove the project?

Which groups have the ability to influence the project?

Who stands to benefit from the project

Which economic activities might potentially be affected by the construction of an offshore wind farm and which associations represent them?

Step 2 WINDCO has undertaken a number of consultations with stakeholder groups. Some stakeholder groups previously opposed to the project are starting to show less opposition as they have become more aware of some of the benefits of the initiative. WINDCO has decided to form a Community Engagement Committee (CEC). The CEC will be used to increase understanding of stakeholder concerns, increase awareness of the project and ultimately help WINDCO to earn/maintain the “social license” it needs to operate. Which stakeholder groups should be invited to join the CEC?

Step 3 Make recommendations about how WINDCO could communicate with the following stakeholder types: “key players”, “keep satisfied”, “keep informed”, and “minimal effort”.