In order to supply the electricity Britain needed to develop infrastructure which would allow it to export electricity all across the world (Macalister, 2010).
Prior to 1989 all electricity needs of Britain and Wales was taken care by the Central Electricity Generating Board. However there was a sharp decline in power stations during the period 1958 to 1986 because of increasing technical complexities associated with the industry.With privatization and deregulation of the electricity industry in 1991, CEGB went through a massive restructuring of the organization. PowerGen was formed to take care of the non nuclear power generation. The report has been framed in the context of PowerGen.
The report starts with an understanding of the terms corporate planning and strategy. It then tries to analyze the impact of changes in organizational structure on corporate planning of PoweGen. The next section deals with understanding of the core competencies and capabilities of PowerGen and how it has helped PowerGen to maintain its market share and profits. It also analyzes the core competencies and capabilities of EDF and E.ON. The report also explores the impact of privatization and deregulation on PowerGen. The report ends with understanding of the centralized nature of planning of CEGB with reference to Hofstede’s article titled “Cultural constraints in management theories”.
Corporate planning involves setting the corporate goals and objectives and identifying long term plans to ensure development of the company. Corporate planning is based on macroeconomic forecasts of various economic factors which were then analyzed with regards to the organization’s performance. It is a description of various economic trends like market share, demand conditions, costs and margins, marketing trends and industry trends.
In 1974 and 1979 the world was hit by oil crisis which led to macroeconomic