STRATEGIC PLANNING

Strategic Planning - Powergen Case Study-

Strategic Planning - Powergen Case Study-

Strategic Planning

An organization's definition of its direction, or strategy, and making decisions on the planning, and utilization of its people and capital to reach its goals is strategic planning. It is essential for an organization to know where it stand to be able to identify where it is going, and determine its destination, and how the organization plans on achieving its benchmark position. This plan or document that incorporates all the relevant information is the “strategic plan”. Having a growing business shows the need and importance of taking vital decisions related to business operations for expansion.

In respect to planning for growth, the creation of a strategic plan can be a vital component in preparing a practical aim for business, and to idealize the future so that the growth of the company can be maximized. A business plan and a strategic plan are two very different plans and should not be confused as one. The basic strategy of an organization is on a strategic plan, which is a lengthy to midterm performance.

Value of strategic planning process

It is important to analyze and evaluate internal and external environment to be able to better plan and develop a strategy that can help the company or organization reach its goals (McCosh, 2003).

Porter 5 Forces Analysis on Powergen

Rivalry among competitors

Powergen might face rivalry among neighbour hood power generation groups, which have a better emphasis on taking care of their shareholders. It is the nature of private industries to be more efficient as their goal is to generate profit; hence a much lower operating cost structure. The private companies may possess a serious threat to the company because of their ability to operate more effectively and efficiently, and their ability to diversify into renewable and green energy.

Threat of new entrants

The company is an electric power firm providing electricity in the UK and has operations abroad. The company already has a number of local competitors in the market giving the company tough competition. The competition became worst when competition came in utilizing environmental friendly, green, and nuclear power generation, having an edge over the company.

Threat of substitute

As far as a substitute is concerned, there are a number of other companies operating in the country, acting as a substitute to the company's service. The company faces threats as customs have easy access to other companies ...