Powergen case study : strategy and corporate planning - Essay Example

The first two companies were responsible for generating non-nuclear electricity.12 regional electricity companies were formed for the purpose of transmitting electricity. In 1991, 60% share of PowerGen was sold and the company was made private. It was allocated 21 power stations capable of generating 30% of the total electricity supplied. The company went through some massive restructuring processes during next 6-8 years. This report includes an in- dept analysis of these restructuring processes and their effects on the corporate planning process.

The report also includes some theoretical explanation of concepts like strategy, corporate planning, core competencies, dynamic capabilities etc. Furthermore a comparative analysis of two energy generating companies, namely EDF Energy and E.ON Energy is made in this report. PowerGen acquired Midlands Electricity plc. An analysis of this merger, taking into account the consequences that led to privatization and deregulation of electricity industry is included in this report. All these analysis and description are provided while answering the three separate questions.

‘Strategy’ is one of the most important and complex terminology in the world of business management. Business strategy is a crucial determinant in the success of a particular organisation. However, the term is also heavily used in military and sports. In fact, the term owes its origin to military. Strategy can be used in different ways as per the demands of the situation. According to Mentzberg, a strategy may be in the form of a ploy or a plan or a pattern of behaviour or a perspective or even a position with respect to others.

None of these should be seen in isolation from others (Campbell, Stonehouse, Houston, 2002). The term, ‘strategy’ is explicitly defined by the famous American personality, Alfred D. Chandler. According to him “strategy is the determination of the basic long term goals and objectives