The Hydro Quebec Company is owned by the Government of Quebec. It is responsible for the generation, transmission and distribution of electricity in energy sources of Quebec. Its headquarters are located in Montreal. Hydro Quebec was born in 1944; its goal was to serve the Montreal area by executing sound fiscal management and selling electricity at the lowest possible cost.
Almost 96% of the electricity generated by Hydro Quebec is extracted from hydropower. As a result, the production of nuclear and thermal gas and oil is marginal as wind. According to current strategies of the company, the latter sector is however expected to grow, along with hydropower and energy efficiency.
The company has evolved into a difficult economic environment, and is linked to numerous threats in the external environment. An analysis of the situation before 1982 shows the uncertain economic environment due to the two oil price shocks of 1973 and 1979. Inflation resulting from higher crude oil is caused by economic recession and therefore has adverse fluctuations in interest rates and exchange rates on the economy. All this translates to a slowdown in demand for electricity.
Many factors have influenced the environment. These include the encouragement of efficient use of energy, the willingness to use alternative energies to less expensive oil (gas, electricity, wind), decrease dependence on oil producing countries, changing customer behavior, the unstable economic environment, the considerable increase in competition in the energy market because of deregulation and the fragile financial position of local government.
The analysis of the company's internal perspective will be approached with its strengths and weaknesses in 1982. First, Hydro Quebec has very competitive electricity rates which are among the lowest in the market in North America.
Then, the firm has proven expertise and proficiency in managing projects of any size and tends to take its long term decisions. Similarly, through their research skills (electricity and electrical engineering) and application of this research, they have advanced technology. Since its inception, the Quebec group has the necessary experience in financial and legal negotiations including internationally. All this has enabled them to make a profit of $ 800 million in 1982.
Tags: Hydro Quebec Company, organizational changes in the Hydro Quebec Company, history of the Hydro Quebec Company
[...] Hydro Quebec was to become proactive, to listen to the customer and respond to competition. All these changes are breaking with the traditions of the company. This is a change in the values of a state enterprise which is considered as a large family or security until retirement was sacred and that became more a commercial enterprise with sales requirements and results. The creation of a center Marketing - Commercial There is a willingness of the company to go from being a builder of dams than seller of electricity. [...]
[...] However, the Quebec organization also has weaknesses. Thus, the nature of the business makes it a fragile market. Production and distribution of electricity costs require significant investment. As it is impossible to store the energy produced, it must constantly find new markets and customers to get a good ROI. Similarly, the company is characterized by a functional compartmentalized system which is very bureaucratic, centralized under the excessive weight of its head office. There is no information system, no management control, no coordination, no career management, no marketing department, no mechanism for performance assessment of achievements and too big projects were together. [...]
[...] Analyzing of the situation before 1982, shows that the economic environment was uncertain, particularly due to the two oil price shocks of 1973 and 1979: inflation resulting from higher crude oil resulted in an economic recession and therefore other effects on the economy as adverse movements in interest rates and exchange rates. This translates to Hydro Quebec by a slowdown in electricity demand. Many factors have influenced the environment. These include the encouragement of efficient use of energy, the willingness to use alternative energy to oil which is less expensive (gas, electricity, wind energy), reduce dependence on oil producing countries, changes in customer behavior, the unstable economic environment, the substantial increase in competition in the energy market due to deregulation and the fragile financial situation of local government. [...]
[...] The company must spend two billion dollars in total for the transition to a more modern network. This long-term investment is partly financed by the arrival of cash commercial shift. Yet this turn business leads to strategic questions: How should we manage export? What pricing policy for manufacturers? To solve these problems without creating others, it is set up with inter-departmental committees, bringing together the key people on the issues in question and more able to impose modifications naturally derived from meetings called common core. [...]
[...] The results were convincing with 14% in Quebec and 17% in exports in 1984. It worked almost too well, since the regions happen sometimes difficult to keep up, it started making stocks and that cost them dearly. Personnel changes along with promotional offers. However, a billion dollars have emerged over two years for the marketing effort. Part of this success can be explained by the introduction of a system of merit pay. If sales increased the network itself does not change and is in very poor condition. [...]
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