External Factors impact on BC Hydro’s Business model

images-2 First nation Government strongly rejected the Site C hydroelectric megaproject from BC Hydro company due to the fact that the fist nation leaders believed that this project would cause environmental issues, such as destroying farmland and wildlife habitat. Also, they claimed that constructing and operating a dam and 1,100-megawatt hydroelectric generating station on the Peace River would create negative impacts on fishing opportunities. In general, First Nation were more care about their aboriginal utilities and focused on their governs on natural resources. All these environmental or social factors threaten the megaproject of BC Hydro Company.
Actually, these problems can all be solved. For example, for environmental factors, BC Hydro can advance its technology in order to avoid the possibilities to destroy farmland or wildlife habitat. Furthermore, they can communicate with the First Nation Group and try to set up relationship with them, which means understanding what Fist Nation really wants and satisfying their needs. As an example, because first nation is worrying that the dam may cause flooding and “impair their right to fish, hunt and use the area for ceremony purposes,” the company can contribute a part of profits to native people as compensations but require them to refuse other companies to set up dam in their region. Through this kind of negotiation, the company can get comparative advantage and build barriers to entry at the same time.

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Source from
http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

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