A Suggestion for Establishing Energy Management Policy in Primary Aluminum Industry by Applying Strategic Management Tools

"Most industries attempted to conduct their energy consumptions in an optimized way for a few decades. This is because policymakers and top managements in industries have felt the critical situation of a possible energy shortage that could happen for them in the near future, even in countries with significant fossil fuel resources. Decisions related to energy consumption in any industry will have a long-term effect on different parts of the industry structure. In this way, energy decisions should be categorized as part of any industry's main strategic and long-term decisions, which should be made by top strategists. On the other hand, strategic management has many powerful tools to help the policymakers in industries to establish a long-term strategy for energy consumption and reducing or preferably eliminating the energy loss. This will be more important for industries in the Middle East, where they have just started to make an applicable strategy for their energy consumption and to design a long-term procedure for their energy management. Based on strategic management and by comparison we designed and offered a new model for establishing the main structure of energy management strategy in primary aluminum industry, which is a high consuming energy industry. This strategy, which we will call ESM (Energy Strategic Model) and has been applied for a typical primary aluminum industry in this paper, is similar to the practical models in the field of strategic management, which were developed for designing the overall company strategy.IntroductionThe elementary goal for introducing strategic management in any organization was to establish a successful plan helping the company to survive and to gain competitive advantage over its competitors in a rough business environment. Strategic management is an ongoing process that evaluates and controls the business and industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, and a new economic environment[!]."