The report starts with analyzing the effect of the organizational change on corporate planning. It is found that PowerGen reorganized itself three times between 1990 and 1998. The changes in the organizational structure had to be supported with effective corporate plans which specified the roles and responsibilities of each function. Initially, PowerGen had a centralized structure which underwent a complete transformation to a decentralized operation with unit managers at each business level being given wider responsibilities.
The next section tries to analyze the core competencies and capabilities which have helped PowerGen to maintain its market share. It has been found that PowerGen’s focus was to supply electricity at a low cost. It formed an effective supply chain across various geographical locations and by partnering with various companies which helped it to produce electricity at low cost. This section also analyzes the core competencies and capabilities of two other major players in the industry which are EDF and E.ON.
The last section deals with understanding the effect of privatization and deregulation and PowerGen’s merger with Midland electricity which was a major strategic move and helped PowerGen immensely to stay ahead of the competition.
The report ends with an analysis of the centralized system of planning adopted by CEGB in the context of Hofstede’s article titled “Cultural constraints in management theories”. It shows the importance of cultural aspects while dealing with employees.
The end product of electricity industry is one of the fastest growing industries in the world. The spiraling demand for energy is expected to rise considerably till 2030. The total value of the electricity market comprises of the total electricity sold to commercial, industrial, residential and other users. In 2007, the total value of the market increased by 14.5%.