Sempra Energy Strategic Management Essay

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Logistics and operations of the company

Sempra Energy is a globally known company in the supply of energy. It is probably the biggest company in the sector. The company’s center is in San Diego, although it has branches in several places, which traverses the world. Its mother company, Sempra Global, houses several other companies.

Employment and forms of energy production

Upon initiation in 1998, it has grown to employ more than 13,800 people who served in excess of 25 million consumers in 2009 alone. The company’s presence is evident in Fortune 500, which ranks the top 500 companies and corporations in the country.

The strengths that define Sempra Energy entail employing competent workers in all levels of energy production. The employees possess all the equipments they need; furthermore, their working environment is pleasant (Ashby, Miles & Heidrick et al., 2002).

Sempra Energy also treats the workers well and gives them better compensation than many other competitors give. One major weakness is that due to centralization in management, the administrators make some decisions based on the reports they receive. This is regardless of the acknowledgements posed by diverse entities.

“Ethics and Social Responsibility”

The company participates in various corporate social responsibilities, which promotes its reputation and consequently its market base. This company enjoys global supremacy due to its diverse products (Thompson & Strickland, 2003).

It deals with electrical and gas energy utilities with emphasis on sustainable use of energy. The company presence in the global arena is advantageous; however, the economic recession may affect the county’s operation.

Sempra Energy is in a formidable financial position. This is apparent in research on consumer’s needs and identification of emerging markets. The company can reach new markets with ease, upon comparison to competitors.

Changes and effects of transitional demographics

Demography has shown that population will continue to grow and this creates more opportunity for Sempra Energy’s products (Pennwell Corporation, 2007). As the populace grows, a desire arises for more power utilities.

Although Sempra Energy has established itself well in the energy sector, it is important not to underrate potential threats that will arise. There are possibilities that new companies will come up and strategize on how to overtake the company. Therefore, the company should lure consumers so that competitors will have to draw new consumers (Plunkett & Plunkett, 2008).

Technology is an additional threat to Sempra because it is likely to introduce utilities, which last longer, thus reduced sales. A positive view is that Sempra Energy should be the first to stock such resources thereby taking leads. This is before the ‘marketplace is swamped with other companies’ products’ (Plunkett & Plunkett, 2008)

Longevity strategies

The trend in the recent past is that there is preference for products, which are responsive to the surroundings. It is noteworthy that energy efficient utilities, which Sempra supplies are advantageous thus increasing the total sales for the company.

Longevity strategies ensure that there is a continued allegiance towards Sempra Energy’s products (Ashby et al., 2002). This is through supplying high quality utilities and ensuring that they are reliable. As new consumers come into the market, they prefer products that are already tested and working.

References

Ashby, M. Miles, S. & Heidrick and Struggles. (2002). Leaders talk leadership: Top executives speak their minds. Oxford: Oxford University Press.

Pennwell Corporation. (2007). Oil and Gas Journal Databook 2006: Databook 2000. Pennwell Corp.

Plunkett, J. & Plunkett Research, Ltd. (2008). Plunkett’s energy industry almanac 2009: The only comprehensive guide to the energy & utilities industry. Houston, Tex: Plunkett Research.

Thompson, A. & Strickland, A. (2003). Strategic management: Concepts and cases. Massachusetts, MA: McGraw-Hill.

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