Strategic Analysis Assignment Help on Duke Energy You can get Strategic Analysis assignment help of any topic. For this assignment help, Our business assignment help experts select the Duke Energy Corporation. You can get help with assignment of any topic.
Company Background: Duke Energy Corporation is a recognized utility company involved in the generation, transmission, and distribution of electricity. The company also sell and transport natural gas.
The company functions in the US and Latin America. The company headquarter is situated in North Carolina and it employs approximately 18,250 people (Anderson, Sweeney & Williams, 2011). The company operating profit is increasing continuously from last several years. The company has its processes in Indiana, North Carolina, Kentucky, Ohio and South Carolina in the US and in Brazil, Peru and Ecuador, Guatemala and Argentina. Duke Energy furnishes and disseminates electricity to just about, four million US customers and has approximately 35,000 MW of the US generating capacity (Anderson, Sweeney & Williams, 2012). The company success depends on different factors and aspects that are analyzed here in this paper with the help of an all-inclusive strategic analysis.
Company Mission and Vision:
Mission: Duke Energy’s mission is to provide clean, reliable and affordable energy to its customers – 24 hours a day and seven days of a week (Gary, 2010).
Vision: The company vision is to we make individual’s lives better by offering gas and electric services in a sustainable way (Anderson, Sweeney & Williams, 2012). In addition to the company mission and vision, the company operates with specific values (safety, integrity, caring, openness, passion, and respect) that in turn also guide its employees in behaving in an ethical and sustainable way that in turn assist company in maintaining its position in the market. The company mission guides its employees in all their actions whereas its vision helps in creating an all-inclusive work place where everyone works as per organizational goals and values described (Anderson, Sweeney & Williams, 2012). The company mission and vision statements play three significant roles. It helps in communicating the purpose of the company to its stakeholders.
As well, it also informs strategy development along with the development of measurable goals and objectives that in turn assist in identifying the effectiveness of company’s strategy (Gary, 2010).
Primary Stakeholders: The company’s primary stakeholder include its stock holders, investors, owners, creditors, suppliers and all of them are actively engaged in its key business decisions. All its primary stakeholders play a key role in its all business decision that have significant for its success (Pratt, 2010). The company success is because of active involvement of its primary stakeholders in its business decisions. In addition to this, the company leaders also take decisions as per the concerns of its primary stakeholders by discussing with them in an effective manner (Anderson, Sweeney & Williams, 2011).
Impact of Five Forces of Competition on Duke Energy: As per assignment helper For effective strategy development at Duke Energy Corporation, it is vital to take industry analysis.
It could be done effectively with the help of Porter’s five force analysis in the following manner:
Threat of New Entrants: The threat of new entrants in the industry is low due to high entry barriers. High entry barriers in this industry are all because of large initial capital needed to develop power generation plants. Construction of plants is also difficult because of the length and difficult regulatory approval procedures. Development of transportation grid also requires high initial investments that present number of difficulties in front of new entrants (Anderson, Sweeney & Williams, 2012). Attracting customers from established company having monopoly is also a difficult task that in turn makes it hard for new entrants to enter the industry Duke Energy is operating (Pratt, 2010).
Bargaining Power of Suppliers: The bargaining power of suppliers in the industry relies on the company’s key performance area. If a company occupy each aspect of value chain from power generation to retaliating it, its dependence on suppliers is high, whereas firms focussing on one or two aspect of value chain is not highly dependent on other firms. The current trend of disintegration is although decreasing suppliers’ bargaining power as new entrants are focussing on specific areas and suppliers are increasing in the industry (Gary, 2010). With growing number of suppliers their collective power will decrease in future.
Bargaining power of Buyers: Electricity provided by Duke Energy is a commodity and due to this the switching cost between its providers are non-existent for purchasers. This in turn helps a lot in increasing bargaining power of its buyers. In industry long-term contracts are becoming a norm for both the industrial and commercial consumers. Therefore risk is being shifted to providers in the form of wholesale purchase of energy (Anderson, Sweeney & Williams, 2011). In addition to this, development of several energy buying communities also helps buyers in increasing their bargaining power (Hill & Jones, 2004).
Threat of Substitute Products: Mentioning substitute of energy is not relevant here as there is nothing that can substitute energy so threat of substitute products in the industry in which Duke Energy is operating is impossible. Replacing energy is not possible and it is critical for the continued existence of the world (Anderson, Sweeney & Williams, 2012).
Competative Rivalry within the Industry: The competition in the industry is very low and it is because of the protection offered through natural monopoly rule to industry players. Some municipalities in present are trying to control their energy expenses by developing various ways to generate electricity on their own along with the help of solar and wind generators (Hill & Jones, 2004). These start-up efforts are very little concerning the competition with large energy producers. So, it can be said that the competitive rivalry in industry is very low and it is all due to the monopoly rule enjoyed by its large players.
SWOT Analysis Assignment Help: With the help of Porter’s five forces analysis it is clear that the competition in the industry in which Duke Energy operates is very low and this is also a reason of its success. The company efforts to attain an effective position through natural monopoly rule significantly help it in attaining success.
For improving its strategic position in the market, it is also vital to undertake SWOT analysis assignment help that is as follows:
Strengths:
- The company has strong market position with diversified position.
- It is engaged in the widespread generation, transmission, and transportation infrastructure at global level (Anderson, Sweeney & Williams, 2011).
- The company enjoys increasing revenues and operating profits (Pratt, 2010).
Weaknesses:
- The company operations are intense.
- It has unfavorable generation portfolio (Anderson, Sweeney & Williams, 2012).
Opportunities:
- Electricity demand is ever-increasing in the US (Hill & Jones, 2004).
- Rising population of Ohio also present Duke Energy with several new opportunities.
- Popularity of renewable energy is also growing significantly (Gary, 2010).
- Current rates of consumption are about to double in the world in the next 20 years.
Threats:
- One key threat for Duke Energy is consolidation in the North American electricity utility industry (Anderson, Sweeney & Williams, 2011).
- Another threat is compliance to various environmental laws and regulations.
- Economic slowdown in the US can also present different issues in front of it.
Strategy on the basis of SWOT analysis: On the basis of company SWOT analysis, it becomes evident that there is a significant need of focussing on clean energy or renewable energy as today everyone is aware with the growing environmental concerns and its harmful effects. For capitalizing on its strengths and opportunities, and minimize its weaknesses and threats, the company needs to adopt a strategy of replacing fossil fuels with renewable energy as this can only help it in maintaining its position in the long run. With this, it would also become possible for the company to decrease its dependence on volatile commodity market (Anderson, Sweeney & Williams, 2011). This strategy if adopted by the company would direct it towards dealing with most of its weakness and market threats such as complying with environmental laws and regulation, economic slowdown etc. Use of renewable energy in all aspects would facilitate assured company growth as well as sustainability that in present are essential for electric utility companies such as Duke Energy Corporation (Gary, 2010).
Levels and types of strategies Duke Energy can Use Subsequent are the various levels and types of strategies that Duke Energy may use for maximizing its competitiveness and profitability: The most significant strategy that needs to be continually used by the company at all levels is to decrease its production cost, because it is operating in the heavily regulated industry with extensive fixed cost. In regard to high fixed cost of functioning’s, capacity utilization for creating economy of scale is vital factor to attain success and sustain in the long-run (Anderson & Martin, 2010). As it is identified that the level of competition in the industry is very low so, it is essential for the company management to make use of strategies that improve its capability to attract new consumers into particular geographic area. This in turn will help the company in creating economies of scale regarding the high fixed costs of power generation and related infrastructure. In this regard, the company could make use of different environment initiatives and campaigns so that; it could become able to attract consumers. Use of these kinds of initiatives and strategies would significantly assist the company in strengthening its competitiveness as well as profitability (Gary, 2010). Another key strategy that could be used by the company to improve its competitiveness and profitability is to make use of advanced technologies to focus on renewable energy and replacing the use of fossil fuels. Use of advanced technologies is essential for Duke Energy as it is one of the largest electricity utility company and need to update its technologies and processes (Anderson, Sweeney & Williams, 2012).
Communication Plan: For communicating all the above-recommended strategies to all stakeholders, it is essential to have a communication plan that includes communication objective and tactics:
Communication Objectives: Creating awareness among all stakeholders and discuss new strategies with them to gain their support and suggestions (Gary, 2010). Communication Tactics: For communicating and discussing new strategies with all stakeholders, the company can make use of different tactics such as board meeting for shareholder, general meetings for employees, seminars for discussion and gaining suggestions, reports for community to know their reactions etc. Use of these tactics would definitely help the company management in effectively communicating all new recommended strategies with their all stakeholder (Anderson & Martin, 2010).
Corporate Governance Mechanisms Used by Duke Energy In present, Duke Energy is one of the largest US electric utility companies and its success depends on the corporate governance mechanisms used by it that are as follows:
The Duke Energy EHS Policy: The Duke Energy EHS Policy gives direction to make sure that its corporate EHS values are systematically applied all across Duke Energy. Company’s EHS Policy facilitate in maintaining its values for the health and safety of its employees, contractors, customers and communities. It also helps its employees in being committed to save the environment and reliably dealing with natural resources.
The EHS Management System: This system helps management in establishing standards to lead Duke Energy in carrying out the EHS Policy. The EHS Management System offers an ordinary framework that links business planning, execution, measurement and performance improvement, and leads its various businesses in thoroughly handling EHS risks, opportunities and affects (EHS Policy and Management System, 2012). Effectiveness of Leadership within the Duke Energy Corporation From the time of its establishment, the company is being managed with effective leaders and it is all because of its experienced leadership team that Duke Energy is become able to create tomorrow’s energy future, at present (Our Leaders, 2012). Without the significant role of its leaders, it was not possible for Duke Energy to become the largest electricity utility company in the US and operate with diverse portfolio. In addition to its key leadership team, the company is also involved educating future leaders through its Duke University Energy Initiative. This initiative helps it in concentrating on educating future leaders, exploring to discover solutions, and get involved with business (Duke Energy Initiative, 2012). The leadership followed is effective, but with recent changes and increasing consumer demand towards renewable energy, it is vital for the Duke Energy to adopt transformation leadership. With this leadership approach, the company leaders would become much more able to deal with the transformations needed to adapt to market and environmental changes. Efforts by Duke Energy to be a Responsible Corporate Citizen From the time, of its establishment the company is trying to behave in a responsible manner as being an energy utility company and providing electric services in a sustainable manner. Duke Energy has become able to attain sustainability all because of its ethical behaviour and working as an ethical corporate citizen. The company operates with environmental policies that in turn assist its employees at all level from top-to-bottom to operate in an ethical manner and provide sustainable energy to all its consumers (Anderson, Sweeney & Williams, 2012). Initially, the company was not so involved in environmental initiatives’ but with Global Climate Change, Duke Energy is undertaking different initiatives so that it could serve its consumers with clean, reliable and affordable energy. The company mission and vision also helps in creating a growing economy. The company operates in a way that not only assists it in its internal development as well as external environment development also. The company policy towards creating, transmitting energy is selected in a way that also assists economy to grow in fair manner and this is the reason of positive impact on its bottom line and increasing operating profits (Gary, 2010). The company is able to make significant positive impact on its bottom line because it is also fair to its employees.
The company is strict to work promoting policies, associations and technologies that ensure its success in the new market economy. For dealing with environmental issues and challenges, the company is trying to make use of low- and zero-emission renewable energy technologies so that it could become able to fulfil its consumers’ future energy demands. Today, the company is quite active in bringing renewable energy to the market with the help of new and advance technologies. The company doing hard to invest in various new technologies so that, its customers could be served with low carbon options (Hill & Jones, 2004). At the same time, it has also made various successful efforts to protect and improve the quality of air, land and water resources by setting up different emissions control equipment on its power plants, taking part in stewardship projects, and organizing all inclusive lake management plans (Sipes, 2010). The company also work with various environmental stakeholders at the nationwide, state and local levels to distinguish and encourage different environment and energy policies in regard to the benefit of people, earnings and the globe. The company is also actively involves in publically reporting its environmental, safety, and health performance so that if, any important step need to be taken through discussions can be taken in a timely manner. All these efforts of Duke Energy assist it in making positive impact on its bottom line.
References: Anderson, D.R., Sweeney, D.J. & Williams, T.A. (2012). Modern Business Statistics with Microsoft Office Excel (4th ed). India: Cengage Learning. Anderson, D.R., Sweeney, D.J. & Williams, T.A. (2011). Statistics for Business and Economics (11th ed.). India: Cengage Learning. Anderson, D.R., & Martin, K. (2010). An Introduction to Management Science: Quantitative Approaches to Decision Making (13th ed.). USA: Cengage Learning. Duke Energy Initiative (2012). Duke Energy. Retrieved from http://energy.duke.edu/initiative EHS Policy and Management System (2012). Duke Energy. Retrieved from http://www.duke-energy.com/environment/ehs-policymgmtsystem.asp Gary, D. (2010). Fundamentals of Human Resource Management: Content, Competencies and Applications. India: Pearson Education. Hill, C.W.L. & Jones, G.R. (2004). Strategic management theory: an integrated approach (6th ed). USA: Houghton Mifflin. Our Leaders (2012). Duke Energy. Retrieved from http://www.duke-energy.com/about-us/leaders.asp Pratt, J. (2010). Financial Accounting in an Economic Context (8th ed.). USA: John Wiley & Sons. Sipes, J. L. (2010). Sustainable Solutions for Water Resources: Policies, Planning, Design, and Implementation. USA: John Wiley & Sons.
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