QUESTION 1
ESKOM’S COAL FIRED PLANT
The Turnaround strategies main goal is to return an underperforming or distressed company to normal, in terms of acceptable levels of profitability, solvency, liquidity and cash flow.
The Turnaround strategy is regarded as a defensive strategy as it is taking into consideration that the company or a department in a company is not perform as well as it was and as well as the company needs it to.
The turnaround strategy can be further broken up into three groups, namely: Retrenchment; Recovery and Revenue Growth.
Retrenchment is a strategy that takes remedial action in response to prolonged deterioration among business units (Louw & Venter, 2013). It takes the form of cost-cutting and reducing non-core …show more content…
You are looking for a short-term way to generate cash quickly but it wont guarantee sustainability in the long term. (Louw & Venter, 2013)
Eskom are using the turnaround strategy to approach the issues attached to the coal fired plants that contribute to approximately 77% of South Africa's power and this is unlikely to change as far as we can see. But as South Africa continues to have ‘Load Shedding’ the issues continue to appear. Eskom are leaning more towards the Recovery factors of the turnaround strategy as they are bringing in fresh entrepreneurial blood in the attempt to prepare for the future. They are building two new power stations that will be done by 2021 (if all goes to plan), which will keep the lights on for future days to come.
ESKOM’S HYDROELECTRIC PLANT
They are using the Growth strategy. This strategy is aimed at winning the larger market share, even at the expense of short term earnings. The growth strategy can be broken up into five categories that are used together to find the most appropriate option. It is split into two main groups being Internal and External growth …show more content…
It has used a horizontal integration as the Hydroelectric source of energy is renewable whereas coal is not. So by integrating a renewable source of energy it starts creating more thought into what Eskom are going to do after coal as it is becoming a growing concern.
Eskom need to look for alternatives to that of coal and renewable energy seems to be the best option.
DIESEL GENERATORS AND “SOLAR FARMS” OPERATED BY CORPORATES IN SA
Cooperative or corporate combination strategies involve organisations working together to achieve some kind of competitive advantage. It can be split into two methods; namely Joint Ventures and Strategic Alliances.
A Joint venture is the creation of a new organisation owned by two or more partners, typically they are formed to exploit opportunities in areas that co-owners find attractive but they aren't able to develop them individually. These projects are often to big for an individual to do on their own accord and so they need the help of larger benefactors. Joint ventures also feature in new industries and technologies requiring a multiplicity of skills and other resources that no one organisation possesses. (Louw & Venter,
ESKOM’S COAL FIRED PLANT
The Turnaround strategies main goal is to return an underperforming or distressed company to normal, in terms of acceptable levels of profitability, solvency, liquidity and cash flow.
The Turnaround strategy is regarded as a defensive strategy as it is taking into consideration that the company or a department in a company is not perform as well as it was and as well as the company needs it to.
The turnaround strategy can be further broken up into three groups, namely: Retrenchment; Recovery and Revenue Growth.
Retrenchment is a strategy that takes remedial action in response to prolonged deterioration among business units (Louw & Venter, 2013). It takes the form of cost-cutting and reducing non-core …show more content…
You are looking for a short-term way to generate cash quickly but it wont guarantee sustainability in the long term. (Louw & Venter, 2013)
Eskom are using the turnaround strategy to approach the issues attached to the coal fired plants that contribute to approximately 77% of South Africa's power and this is unlikely to change as far as we can see. But as South Africa continues to have ‘Load Shedding’ the issues continue to appear. Eskom are leaning more towards the Recovery factors of the turnaround strategy as they are bringing in fresh entrepreneurial blood in the attempt to prepare for the future. They are building two new power stations that will be done by 2021 (if all goes to plan), which will keep the lights on for future days to come.
ESKOM’S HYDROELECTRIC PLANT
They are using the Growth strategy. This strategy is aimed at winning the larger market share, even at the expense of short term earnings. The growth strategy can be broken up into five categories that are used together to find the most appropriate option. It is split into two main groups being Internal and External growth …show more content…
It has used a horizontal integration as the Hydroelectric source of energy is renewable whereas coal is not. So by integrating a renewable source of energy it starts creating more thought into what Eskom are going to do after coal as it is becoming a growing concern.
Eskom need to look for alternatives to that of coal and renewable energy seems to be the best option.
DIESEL GENERATORS AND “SOLAR FARMS” OPERATED BY CORPORATES IN SA
Cooperative or corporate combination strategies involve organisations working together to achieve some kind of competitive advantage. It can be split into two methods; namely Joint Ventures and Strategic Alliances.
A Joint venture is the creation of a new organisation owned by two or more partners, typically they are formed to exploit opportunities in areas that co-owners find attractive but they aren't able to develop them individually. These projects are often to big for an individual to do on their own accord and so they need the help of larger benefactors. Joint ventures also feature in new industries and technologies requiring a multiplicity of skills and other resources that no one organisation possesses. (Louw & Venter,