Contents

• Introduction 4
• Strategy and Corporate Planning 5
• PowerGen’s Organizational Structure and its Impact on Corporate Planning Process (1990-1998) 7
• The Role of Core Competencies and Dynamic Capabilities in PowerGen’s Market Share and Profit before Tax in England and Wales (1991-1998) 10
• Core Competencies and Capabilities of Electricité de France (EDF) and E-ON 12
• Effect of Privatization and Deregulation in the UK Industry on the Merger between PowerGen’s and Midlands Electricity Plc in Mid 1990s 14
• Central Electricity Generating Board’s Centralized Approach to Planning 16
• Conclusion 17
• References 18

Description

Workable competition, open markets, no entry barriers have been the concepts that have debated by business scholars across the world. All this concepts aim at a common objective. That is to make the global economy and markets favorable for everyone and to benefit the consumer. All the governments across the world have taken initiative to make their national markets favorable to all to reduce market domination by the few companies or monopolies. One of the ways of doing this is to privatize industries and deregulate markets. Privatization of government run companies will lead to more opportunities for the private companies and reduces market domination by government sectors. Deregulation of laws will help new companies to enter the market that is entry barriers will be reduced.
The United Kingdoms electricity industry was privatized and deregulated in the year 1990. This was done to increase competition and to end the monopoly of Central Electricity Generating Board (CEGB). The CEGB was divided into two divisions, namely, PowerGen and National Power.
For any organization, it is very important to understand its core competencies and build on it. Core competencies are those qualities are attributes of the company that ca be easily imitated by any other company. A deeper understanding of core competencies will help the company to use this understanding into venturing other markets. Also it also helps in implementing and making the best of the organizations dynamic capabilities.
This report discusses PowerGen’s organizational structure and how the organizational structure impacted the corporate planning process in the last decade of the 20th century. It also discuses how PowerGen’s core competency and dynamic capability accounted for the market share and profit before tax in England and Wales during the period 1991-1998. The core competencies and capabilities of Electricité de France (EDF) and E-ON (PowerGen after it was acquired by E-ON in the 2000) are compared. The report also discusses the effect of privatization and deregulation on PowerGen’s merger proposal Midlands Electricity Plc in 1995. The report criticizes the centralized approach to planning associated with the Central Electricity Generating Board (CEGB). In doing so the report uses two articles cited in cited in De Wit and Meyer, namely, “Cultural constraints in management theories” by Geert Hofstede’s and “PowerGen: Strategy and Corporate Planning” by David Jennings.