Why did Solyndra fail?.
Why did Solyndra fail?: Founded in 2004, Solyndra Solar Company was a US company based Silicon Valley. The major strategy of making money was manufacturing solar panels without using polysilicon; this would make the panels cheaper to manufacture as well as install.
The other strategy for making income ahead of its competitors was the use of rounded panels; this would maximize installation space thus producing more electrical power per every rooftop.
Given the then skyrocketing price of silicon, these solar panels would be cheaper thus giving the company at a competitive edge in the market. However, these strategies were not executed as planned; a brief history of the company proves this.
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The financial records were never shown, and Solyndra told lies after lies in order to receive an energy loan that they should have never received. Solyndra knew from the start their financials records were not good enough or stable enough to receive that loan.
They also knew they were seeing negative numbers prior to taking the government loan. Solyndra also failed their employees and ended up facing a lawsuit, due to not following the laws. They failed to give their employees proper federal notice that followed the WARN Act.
Solyndra ended up being raided by the FBI because it was obvious that they had broken the law somewhere along the lines. Solyndra needed to make some changes from the start, and that should have included making sure they had proper management and management who knew what they were doing.
“Milton Friedman.” The Concise Encyclopedia of Economics. 2008. Library of Economics and Liberty.
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