Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Another challenge to Verve's business is that they have supply contracts with Synergy, the electricity retailer in Western Australia. These contracts drive much of the revenue for Verve, but lock in electricity rates. The lack of change in revenues from 2008 to 2009 illustrates this, and the increasing costs illustrate the challenge of operating without the ability to increase rates to match input costs.
A further challenge is in the steady deregulation of the Western Australian electricity markets. With this deregulation, Verve's contracts with Synergy will be smaller going forward as the latter picks up supply from new entrants. This leaves Verve with a decreasing revenue stream but plants that they must continue to maintain. At some point, they may be able to decrease capacity to meet lower demand, or Verve will need to find new markets. The closest markets are other Australian states, but the long distance of transmission will put Verve at a competitive disadvantage to suppliers based in the eastern states.
Conclusion:...
Over the long-term, these trends should continue. The result of this will be decreasing demand for Verve energy with a corresponding further erosion of revenues. Verve will ultimately need to address this issue through cost reductions. These will include potential shutting a plant. The timing of capacity reduction is the most important cost reduction strategy for Verve. It incorporates not only the state's electricity capacity but also forecasts of supply from new entrants and negotiations with the company's labor. Verve needs to know several years in advance when it will need to reduce capacity and begin to negotiate contracts and take other steps to allow that capacity reduction to happen. Accurate long-range forecasting is essential, although at least Verve appears to have governmental support in the form of a new tariff coming, which will help the company maintain itself during the interim until it is able renegotiate labor contracts and plan for the…
Another challenge to Verve's business is that they have supply contracts with Synergy, the electricity retailer in Western Australia. These contracts drive much of the revenue for Verve, but lock in electricity rates. The lack of change in revenues from 2008 to 2009 illustrates this, and the increasing costs illustrate the challenge of operating without the ability to increase rates to match input costs.
A further challenge is in the steady deregulation of the Western Australian electricity markets. With this deregulation, Verve's contracts with Synergy will be smaller going forward as the latter picks up supply from new entrants. This leaves Verve with a decreasing revenue stream but plants that they must continue to maintain. At some point, they may be able to decrease capacity to meet lower demand, or Verve will need to find new markets. The closest markets are other Australian states, but the long distance of transmission will put Verve at a competitive disadvantage to suppliers based in the eastern states.
Conclusion: Each of the issues above contributes to the Verve's poor current financial situation. Over the long-term, these trends should continue. The result of this will be decreasing demand for Verve energy with a corresponding further erosion of revenues. Verve will ultimately need to address this issue through cost reductions. These will include potential shutting a plant. The timing of capacity reduction is the most important cost reduction strategy for Verve. It incorporates not only the state's electricity capacity but also forecasts of supply from new entrants and negotiations with the company's labor. Verve needs to know several years in advance when it will need to reduce capacity and begin to negotiate contracts and take other steps to allow that capacity reduction to happen. Accurate long-range forecasting is essential, although at least Verve appears to have governmental support in the form of a new tariff coming, which will help the company maintain itself during the interim until it is able renegotiate labor contracts and plan for the mothballing of a facility.
Both companies realized that business processes had a direct effect on organizational performance. Critical Analysis: Wang's article is a persuasive piece of research regarding the usefulness of the BSC as a strategic management tool for analyzing the effectiveness of business re-engineering efforts and documents the relationship between the organization's business processes and the achievement of organizational goals. Wang utilizes two top companies, Acer and Compaq, in his case studies, companies with
The SMCO site would serve as a portal bookmark and I might return to it if I needed to research a topic and needed to know at once a list of all the major business trade magazines, or if I needed to find multiple ways of checking company data on sources like ZDNet and Bloomberg Financial Market reports. I can see how the SMCO would be a helpful place to
If a startup is being planned, the strengths and weaknesses are related mainly to the promoter(s) - their experience, expertise and management abilities - rather than to the project. The objective is to build up a picture of the outstanding good and bad points, achievements and failures and other critical features within the company. Threats & Opportunities The external threats and opportunities confronting a company, can exist or develop in the following
Strategic Management The "100 Best Corporate Citizens" list, compiled by Business Ethics magazine, is designed to serve stakeholders with "with excellence and integrity," (Graves, Waddock, and Kelly). Because the criteria used to compile the list are broad and comprehensive, the list is an authoritative and reliable indicator of corporate ethical behavior and overall social responsibility. Criteria are reasonable, insofar as they pertain directly to environmental and humanitarian concerns. Issues related to
To contribute to my professional experience, I have worked all over the globe within the scope of major retail organizations to help compile and execute successful marketing and brand imaging strategies. While working for VOGUE in New York in 2007 as an editorial intern, I helped select current fashion trends through exhaustive research and development. I also had the luxury of helping with the creative tasks of compiling the
" Of these respondents, over 50% of them stated that they lack a disaster recovery plan (Anthes, 1998). However, most of the problems stem from the lack of communication at the corporate level. (Hawkins, et al., 2000). Business Continuity Plans (BCP) and other forms of strategic planning are no longer a luxury, but a must-have factor and an important element of any organisation's risk management system. Organisations are increasingly dependent upon