SCOTTISH AND SOUTHERN ENERGY PLC

Scottish and Southern Energy plc

Scottish and Southern Energy plc

Introduction

The main purpose of this paper is to make a strategic analysis on the Scottish and Southern Energy plc. This paper makes an analysis on the economic and competitive environment of the company and makes an evaluation on the company's corporate strategy. The paper also discusses the company's financial performance by making evaluating the company's financial ratios. In the end, recommendations have been made in this paper regarding the future strategic decisions of the company.

Company Overview

Scottish and Southern Energy plc is a UK's energy firm that provides services to almost 10 million customers. It provides the services of distributing the power and gas via Scottish Hydro Electric, Southern Electric and SWALEC. The company has regulated assets of almost 79,300 miles of power transmission. It also includes the 3.5 million end users. The company generates almost 11,000 (MV) generating capacity. The company also makes operations in the field of gas exploration, wind farms, gas storage, energy trading and retail appliance sales.

The economic and competitive environment

Scottish and Southern Energy plc is operating in an economic and competitive environment that helps the company in getting the competitive advantage. The economic environment in which the company operates includes different factors like it affect the purchasing power and spending patterns of the company (Altman, 2008, p. 589). The economic factors that affect the company are unemployment, income, business cycle, inflation and interest rates. There are different factors that affect the trends in the economic environment of the company like issues in the distribution of global income, changing patterns of consumer-expenditure and low savings and excessive debt. The company is operating in a highly competitive environment. There are many other companies operating as an energy provider, and they are getting the loyal customer results. Competition in the business environment is becoming fiercer and more complex because of globalization, technological advancements enabling connectivity, and the shift to a knowledge-intensive economy (Rick, 2005, p. 239). Scottish and Southern Energy plc's main focus is to capture such strategic alliances, while incorporating the new opportunities into new business models to maximize the competitive advantage of the firm.

Company's Corporate Strategy

Scottish and Southern Energy plc adopts the corporate strategy that makes it prominent in the business world. Company's corporate strategy is aimed at finding ways and methods approved by its diversified business principles in various sectors, as well as the actions and approaches that can improve the performance of groups of companies, which diversified the company (Pizzey, 2004, p. 34). Company's corporate strategy also focuses on thinking through actions and attitudes associated with effective management in an area of business. Business strategy is aimed at finding mechanisms to achieve strong long-term competitive position. Corporate diversification strategy is developed primarily in connection with the state or changes in the product, market, industry, competitive position and technology. Question about the beginning of the diversification process depends in part on the capabilities of the company's growth in this industry, and it is from ...