Case Study: Operations Strategy Of A Power Supply Bureau

Because of the natural character of power grid, there is barely any competitor for any ofthe grid company. The loss of competition has lazed the grid companies and made themlosing the will of self-improvement. But in fact in China, there are still two factors whichpush these grid companies to manage themselves more effective at a lower cost: theauthorities put the grids into a comparison in order to find out which one operates better, andthe process of reforming electrical industry is now accelerating.A Power supply bureau (A Bureau) was set up in1979. In2010, A Bureau scored89.68and got the first place in annual assessment of Guangdong Power Grid Corporation. It wasalmost5point higher than the second one, and much better than other bureaus inside ChinaSouthern Power Grid. Underneath the aura of outstanding score, A Bureau still investing inpower grid infrastructures because one of its KPI–Average blackout time of urban user, onlyrecorded88.8minutes, far below the performance of excellent girds like Singapore Energy orTokyo Electricity. The management board of A Bureau had recognized that only concentratedin construction of hardware could make the grid more reliable, but hardly catch up with themost excellent ones.The process of catching up with the excellent ones is most likely a competition for Abureau, which means we could take the competition vision to analysis its situation and formits operations strategy. This paper tries to draw a draft for A bureau of its own operationstrategy, and also tries to make a sample of strategy formulation for grid companies utilizingthe theories of strategy management. In this paper, these two questions are mainly discussed:a) Right in the time of A Bureau’s strategy formulation, what should A Bureau do toanalyzing itself and its environment, setting up its strategic target, and constructing a maturestrategy system?b) What should A Bureau do to archive its progress within the phase of strategyimplementation?...