Internal Environment Strengths Huge financial reserves Broad range of products Vast installed base, extensive local manufacturing

facilities Leader in power transimission and distribution Leader in industrial automation equipment huge installed equipment base R & D department

External Envrionment Oppurtunities Revival of indian economy Revenue was stagnant in US and Europe and ABB was lokking towards India & China for growth Increased governement spending on power

These reforms, started in 2001, shifted the focus from power generation to power transmission and distribution. As part of the reforms, the Indian Government allotted nearly Rs 90 bn to the Accelerated Power Development and Reforms Programme (APDRP) 17 to improve power distribution in the southern states of Andhra Pradesh, Karnataka and Tamilnadu. ABB India acquired around 12-15 per cent of the business. The passing of the Electricity Act, 2003 Population increase will increase demand of product

Weeknesses Company workforce has become lathergic and unconcerned about financial conditions Organisation culture problems no financial support from parent company stagnant revenues large working capital blocked Revenue from services was dying ABB India failed to take adv. Of selling prod and services to growing manufacturing industies

Threats Sluggishness in power and industrial sector Worldwide slump in engineering industry due to recession Legal action resulted in detoraition of company image

Objective given to CEO Doubling the revenue of ABB in India in less than five years

Statergy employed Retructuring program involving Shifting focus from product to pruduct and service Earlier mix was 80:20 and now mix 60:40 Increasing channel partners Colloboration with Banks for funding of channel partners Organisation restructuring i.e. shifting of office to Bangalore with no cabins New HR policies Cost cutting Greater thrust on export Appointed a national service manager E-commerce business

Company entered the retail market

PESTEL ( Political, Economic,Socio-cultural,technological,environmental and legal) SWOT Comment on the competetive status and attractiveness of the industry Evalute the coorporate strategy pursued by Uppal and highlight drawbacks of the same

In your opinion what would b the future strategy at different levels , give justificstion for the same.

PESTEL ( Political, Economic,Socio-cultural,technological,environmental and legal) Political Government Stability

Taxation policy Foreign trade regulations social welfare Economic Factors Business cycles

Interest rates Money supply Inflation

PESTEL ( Political, Economic,Socio-cultural,technological,environmental and legal) SWOT Comment on the competetive status and attractiveness of the industry Evalute the coorporate strategy pursued by Uppal and highlight drawbacks of the same

In your opinion what would b the future strategy at different levels , give justificstion for the same.

PESTEL ( Political, Economic,Socio-cultural,technological,environmental and legal) Political Government Stability

Taxation policy Foreign trade regulations social welfare Economic Factors Business cycles

Interest rates Money supply Inflation

Reduced focus Company core competency New focus area does not have high entry barrier Attrition of people within closed mindset Reduction in employee satisfaction Foreign market earning, focus exports

In 2001 was a turbulent year on account of economic slow down and political tensions leading to massive flash points in the aftermath of 9/11 attacks. India was in phase of sttructured liberations since 1991 new ttrade and industrail reform policy

India was designated hub for asia pacific region

Industry is coming out of the recession. Manufacturing sector was growing in India Govt. was likely to increase spending on power new regulations by India Govt.

PESTEL Analysis of Power sector

PESTEL Analysis Political/Government policies Analysis:

Economic Analysis:

Figure-1 Industry & Power growth relationship

Source: Reliance Review of energy market-2002

Sociological Analysis:

v Landlessness v Joblessness v Homelessness v Food insecurity v Poor health level v Loss of assets Following Dams displaced the huge population. Dam Name State Name People Displaced

Almati Karnatak 140,000 Tehari Uttaranchal 105,000 Narmada Gujarat 250,000 Environmental Analysis: Thermal power plants use the low variety of coal for power generation which causes many environmental effects.
Air Environment:

Water environment:

Noise & Land Environment:

Biological Environment:

Socio-Economic Environment:

Legal & Regulatory analysis:

PESTEL Analysis of Power sector

PESTEL Analysis Political/Government policies Analysis: In India, the subject of electricity is covered under the Concurrent List in the Constitution of India, implying that both the central government and state governments have the power to make legislation for the sector. As a result, all major issues affecting the power sector require concurrent action by the central government and state governments. The allocation on power development during the first four Five Year Plans (FYP) was very low i.e. 10-15 percent of the total outlay. The low allocation of budget in power sector hampered the rural & urban electrification, and power generation capacity. With rapid industrialization and extensive demand for power both As it is a subject of concurrent list so each state has developed its own electricity policy and pricing based on its own interest rather than thinking of country as a whole. The different pricing regimes and distribution policies of state governments further aggravated the power situation. The low collection of revenue makes condition burst & slow down the growth Of SEBs and subsequently effect on the power syste. Another reason for the power systems non-viability is the skewed retail tariffs, whereby agricultural consumers receive virtually free power (with flatSubsidies provided by the government were a large amount. As the state government paid these subsidies irregularly, So SEBs did not plan any long term project implementation i.e. capacity expansion, network extension, regular maintenance and system improvement. This also affects the T&D losses of SEBs. Severe financial losses have led to the almost total inability of these utilities to self-finance improvements. Utilities also borrowed heavily and aggravated their losses. In the past, these losses used to be made good by government But after 1990, The Government has realized the importance of power in the economic development of the country. The Union Ministry of Power has developed appropriate strategies and a blueprint to address the problems in a time-bound manner. These strategies and the blueprints were flexible and to be adjusted to accommodate positive inputs and developments. Beginning with the opening up of power generation for private The recently established Central Electricity Regulatory Commission is empowered to regulate the central power utilities in accordance with the Electricity Regulatory Commission Act, 1998. The central power utilities include the National Thermal Power Corporation (NTPC), the National Hydroelectric Power Corporation (NHPC), and the Nuclear Power Corporation (NPC), which are engaged in generation, and the Power grid Corporation, which is engaged in interstate power transmission. The Government also owns financing institutions devoted solely to

Economic Analysis: The basic requirement and detrimental factor for growth and success of all companiesindustrial or serviceis Infrastructure. The infrastructural sectors, specially power have direct bearing on the improvements of all production companies. Industrial output growth in India has closely tracked the movements in the composite index of infrastructure industries during 1980s and 1990s. This observed relationship between infrastructure growth and industrial performance has important implications for sustaining higher output growth. The decline of infrastructural growth between 1980s and 1990s was mainly from the decline in growth of electricity, coal and Figure-1 Industry & Power growth relationship

Source: Reliance Review of energy market-2002

To accelerate the growth of the economy, government allocated the 28% of the budget in seventh FYP and 23.3% of the budget to the power sector in ninth FYP. But this has come too late and power shortage has become a The state government policies about the subsidies hamper the growth of the power sector. Total subsidy for the Central and State governments taken together amount to Rs. 9886 crore in 1994-95., which is 1% of GDP at market prices. The share of Central government in this is 37%, i.e. roughly half of corresponding State government subsidies. The recovery-rate for the Centre, in the case of power subsidies, is 36.8%, which is somewhat higher than the corresponding figure of 15% for the States. The total power subsidies for the year 1994-

Sociological Analysis: The new hydropower plant adversely affected the human being and the other animals. The core problem in displacement is peoples loss of livelihood and their potential impoverishment. The forcibly displacement of communities, create hamper the production system. Many jobs, much valuable land, trees and other income v Landlessness v Joblessness v Homelessness v Food insecurity v Poor health level v Loss of assets Following Dams displaced the huge population. Dam Name State Name People Displaced

Almati Karnatak 140,000 Tehari Uttaranchal 105,000 Narmada Gujarat 250,000 Environmental Analysis: Thermal power plants use the low variety of coal for power generation which causes many environmental effects.
Air Environment:

Emission of SO2, NO2, and Black carbon from power plant is harmful for the people living in surrounding area. The above pollutant of the thermal power plants causes dense / intense fog, haze and smog that cause the respiratory disorder. An increase in the concentration of Black carbon produces changes in the monsoon (rainfall) patterns and abnormal heating of the atmosphere as it is strongly absorbing in nature. Coal is the most carbon intensive of all fossil fuels, emits massive amounts of carbon dioxide or CO2 leading to global warming and climate change. Although two other gases, carbon dioxide and ozone are not considered in traditional emission
Water environment:

As we know that water slurry is used to take the ash from the power plant to the ash pond for disposal. The water may contain harmful heavy metals like boron, which have a tendency to leach out over a period of time. Due to this the ground water gets polluted and becomes unsuitable for domestic use. The second factor affecting the water environment is the release of ash pond decant into the local water bodies. This is harmful to the fisheries and other aquatic biota in the water body. Huge amounts of ash rich in toxic trace elements and radioactive elements or radio nuclides, are disposed off in large ponds and on open grounds surrounding the power plant, thus contaminating the topsoil and the subsurface aquifer. Absence of an underground lining permits easy mixing of the ash with the topsoil of the area. Al, As, Zn, Mo, Ba, V, Mo, Cd, Mn, and Pb exceed the WHO guidelines for drinking water in the tube well waters. People living near the ash ponds are subjected to a high radiation dose In the case of hydroelectric plants water environment is affected due to the stagnation of water in the reservoir. If the reservoir accumulates runoff from agricultural fields, the water may contain high amounts of fertilizer and pesticide residues, which may accumulate in the reservoir. Another point of consideration is that the formation of

Noise & Land Environment:

The exposure of employees to high noise levels is more in the Coal based thermal power plant. The natural soil becomes more alkaline due to the alkaline nature of fly ash thereby damaging the agriculture / agricultural sector.
Biological Environment:

The effect on biological environment can be divided into two parts, viz. the effect on flora and the effect on fauna. Effect on flora is due to two main reasons land acquisition and due to flue (combustion exhaust) gas emissions.
Socio-Economic Environment:

Hydro power plants create the following problem i.e. resettlement and rehabilitation, effect on local civic amenities and work related hazards to employees of the power plants. Legal & Regulatory analysis: In the Electricity Act 1910, the rights were given to the state government for generation, transmission and distribution of electricity. But if government had not sufficient resources to develop these projects, it has option to issue the license to others for those projects. In this way regulation restricted the other organization to enter into this business. There was legal frame work for laying down wires and other works but there was no regulation regarding the tariff, power generation, and infrastructure development. There were some provisions to maintain