FRENDY ENERGY

CAMILLA PECETTO

CAMILLS PECETTOCAMILLA PECETTO

CAMILLA PECETTO

Camilla Pecetto

FRENDY ENERGY Company Overview Friendy Energy was founded in 2006 by Rinaldo Denti. Thanks to his past entrepreneurial success, Rinaldo decided to develop an effective and innovative approach: the business of mini-hydroelectric power in Italy. The company builds and operates mini power plants toward the production and sale of electricity. The company main activities are located in the north of Italy, from the region of Piemonte and Lombardia, whit a specific focus on the province of Novara and Pavia due to the high concentration of irrigation canals and waterways jumps of small and medium size. These systems are considered good examples of how to make hydro-electric power in the most impossible situations. BUSINESS MODEL BUSINESS TO WATER

The innovative business model developed by Frendy Energy foresees close cooperation from all the players involved in the value network, in order to generate wealth for each subject according to a win-win situation where the value is created by the system and captured by each party. Suppliers, irrigation authorities and stakeholders are directly or indirectly connected to the system Frendy Energy, and strongly oriented to a sustainable growth respecting the economic, ecological and social principles. In particular, the system provides, through the use of unusual instruments such as royalties of 10% irrigation institutions and the involvement of strategic partners to venture capital, equitable benefit sharing for the benefit of the community through the common good: water. The activities are conducted with extreme caution with regard to: Balancing cost / benefit and cost / effectiveness Cost and principles of extreme affordability through a constant and integrated control of the supply chain by the company and its partners Maintaining ecological integrity of the body of water

SUPPLIERS Frendy Energy has strong relationships with some providers considered strategic for the development of the business: From Private to Public At the time of listing, the company had four plants in the last three years and has already obtained licenses for the construction of three other plants, in addition to having already begun the authorization process to obtain the concession for another 6 hydroelectric power plants, of which four in Piemonte and two in Partnership established: some by a direct stake in Frendy Energy; Exploitation of Spare Capacity of suppliers in terms of staff, facilities and resources (Ventura method); Possibility of choice between different suppliers for the same category

Lombardia. The company estimates to be able to connect to the network and deploy other 9 stations over the next six years, for a total aggregate estimated production of 15 GW per year. FAMILY BUSINSS THEORETICAL INSIGHTS Family businesses show one of the most important characteristics of complexity theory, which is the interaction between the family, ownership, and business systems. Marion and Uhl-Bien (2001) assume that such interdependent systems are unpredictable due to the different nature of the businesses and the industry where they operate. Moreover, leaders (such as visionary, transformational, and charismatic) can be frustrated in creating an effective organizational strategy. In the case of Frendy Energy, Rinaldo Denti is the leader and CEO of the company. His function is to enable organizational effectiveness as well as focusing on creating conditions that encourage innovative solution as well as the interaction within and between systems. Moreover, his sister Clelia Denti as her husband Guido Pecetto are part of the business as they have financed the project since the beginning and still do. They have an ownership stake in the business, however they are not part of the board of directors but are involved in the decision making process. Moreover they are daily informed with the companies activities and decisions. Both Rinaldo and Clelia have kids, who are yet not involved in the business due to the fact that they are either too young or because they are not interested in this moment of their life. However, the opportunity to be part of Frendy Energy by the second generation will probably arise in the future and with it many problems could come. FAMILY TREE

Rinaldo Denti

Clelia Denti Guido Pecetto

Martina 12 Arianna 9 Emanuele 6

Andrea 26

Camilla 23

According to the systems theory of family business emphasizes that the overlap among the three sub-systems often creates conflict among family business actors because of diverse viewpoints on family business problems (Gersick, 1997; Poza, 2009). For example, a family member, like in this case, who has an ownership stake in the business but is not involved in management, is likely to have a different perspective on dividend policy than the family member who has ownership and also serves as the CEO. Thus, interaction is vital among the family members in order to form a common understanding.