Strategic Management Processes in Eskom, South Africa

Essay by singhs14University, Master's January 2008

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TABLE OF CONTENTS1.EXECUTIVE SUMMARY2.INTRODUCTION3.STRATEGIC MANAGEMENT PROCESS IN ESKOM3.1 Methodology of Review3.2Management Process3.2.1Environmental Analysis3.2.1.1Comments3.2.2Vision Statement3.2.2.1Communication3.2.2.2Values3.2.2.3Comments3.2.3Objectives3.2.3.1Short Term Priorities3.2.3.2Medium and Long Term Priorities3.2.3.3Comments3.2.4Crafting of the Strategy3.2.4.1Comments3.2.5Implementation3.2.5.1Comments3.2.6Monitoring3.2.6.1Comments4RECENT CHANGES IN THE STRATEGY4.1Factors Which Led to Changes in the Strategy4.2Results and Expected Results5. ESKOM INVESTMENT STRATEGY INTO THE FUTURE6. RECOMMENDATIONS ON STRATEGIC ACTIONS AND CONTROLS NEEDED8.1.Revenue Management8.2.Benchmarking8.3.Outsourcing8.4.African Collaboration7.REFERENCES8.ANNEXURES1. EXECUTIVE SUMMARYThe aim of the assignment is to:•consider the strategic management of an organization of choice and comment on the process and evaluate its effectiveness;•discuss the changes made over the last five years and how they took place, and the factors that led to the changes in strategy; and also the results of changes in the strategy;•extrapolate into the next five years in order to identify the organization's abilities for attaining a competitive advantage through their strategy.

•recommend strategic actions required to be implemented, referring to necessary controls.

This product is a review of the strategic management process in Eskom Holdings, which is the organization that the group preferred. Eskom is an established company in South Africa with an illustrious history in the role it has played in growing the SA economy since its founding in 1923.

This paper has been confined to the changes introduced in the period after the year 2001 until today. The major objective of government with these changes government was targeting at cutting costs and bringing standardization in the tariff structure.

Eskom is to this day striving to implement the changes that were mooted back in the cabinet decision of 2000. As it will be explained this cabinet decision of 2000 set in motion the restructuring that brought about the establishment of Regional Electricity Distribution (RED's) stations.

Owing to lack of sufficient progress, the RED's were followed in 2003 by the establishment...