COST - DRIVEN TO PROFIT - DRIVEN
Question 2: Propose a strategy to move Energy Pro from a cost - driven to a profit - driven center.
Energy Pro should minimize their cost of maintenance and losses due to the load - shedding as a key strategy. As a power station they should develop a cost - driven model which assess the maintenance methods as a company. The strategy is a strategy that employs maintenance, it functions are those of a specific power system characteristics, with the use of the right methods among the methods that they have as a company. There is also the possibility of applying condition - based maintenance for the whole service period the power system for underground powerlines system can also be economically efficient and viable.
Energy Pro as a company should sit down with its management and employees and try to come up with a way of decision - making with its regards to the fact of working to correct their mistakes. They as a company should sit down and see where their mistakes are, How did the mistakes begin? and find a way or other alternatives of moving forward and correcting these mistakes. The management should admit their mistakes and try to find solutions of including the whole of South Africa in finding opinions on a way forward. I do not disagree with the fact that they as a company are working on a strategy of calling all their resigned employees that are working in other companies to come and train the other remaining employees and giving them benefits that are higher then what is necessary, they should be wdorking on a way of finding employees that are willing to help with the training of the new employees with the acquiring of the required skills and trying to training them without making demands, already Energy Pro is in a big mess and it will not help them in paying old employees big amounts just to get them to help them out and help solve the problem instead they are not making a profit the are continuing to put themselves into cost and which in the end it will be difficult for them to handle. It will be able to maintain its finance and refrain from funtioning on debt. Skills development will systematically enhance the competency of each staff member.
Succession management programmes have been established for critical and scarce skills categories. In order for Energy Pro to move effectively and efficiently from a cost driven to a profit driven they are to know their market, they have to enable their product to be successful and to maximise their profit and try not to keep their costs down. Energy Pro is to work on in a way taking their prices up as they are the supplier of electricity and in order to help themselves get out of debt and to be able to pay for all those power stations that are going to be built. This will enable Energy Pro to minimise the debt that they have already found themselves in and to minimise overspending on their budget as a company.
