Exelon Strategic Plan Options
Organizations that desire to operate competitively in the future have to do things differently. They have to plan in advance and device strategies to guarantee a competitive edge that will keep them in business. It is for the said purpose that most organizations engage in strategic planning.
A strategic plan by itself does not achieve long-term goals, but it facilitates the realization of the goals given it acts as a synergistic map for all stakeholders in the organization. In other words, the management works within a stipulated framework. This report considers the strategic options at the disposal of Exelon.
Despite having an integral growth strategy, Exelon’s operations depend on sustainable renewable energy sources. Power generation companies are known as the largest pollutant due to the massive emissions and surface disposal.
Therefore, in as much as the company considers growth strategies, going green are a strategic option to consider going into the future.
Exelon’s Vision
Like all progressive companies, Exelon has a well-defined vision. The company’s vision is to be the best group of electric generation and gas delivery companies in US- while offering the best value to customers, employees, investors and the community it operates in (Exelon, 2010).
Values
The achievement of strategic objectives thus the realization of the vision requires that organizational operations are anchored on given values. At Exelon, the key values include Safety, integrity, and diversity, continuous improvement and accountability (Exelon, 2010).
The company is committed to ensuring all the customers and employees are working in a clean and safe environment. Secondly, the company upholds dignity and ethics in all its operation. The company ensures operations transcends above ethnicity, gender and religious inclinations.
Going Green Strategy
Climate change is of concern all over the world. Climate change has become an enormous challenge that organizations have to respond to. Bearing in mind Exelon deals with nuclear energy, which is subject to dangerous emissions, the organization is determined to enhance a safe environment for all.
The organization’s strategic plan identifies the need to lower carbon emissions as a priority. The aim is reducing the amount of carbon emitted by 15 million metric tons of green house gas (GHG) each year (Exelon, 2010).
To achieve this milestone, the organization needs to step up its power generation system to ensure it is reducing overlying on carbon energy and increasing alternative energy sources.
In an attempt to fulfill this plan, the organization has set aside $5 billion to invest in inexpensive clean energy projects.
The projects which are intended to be constructed are, economic renewable (wind energy), increased output nuclear plants, smart grid programs, and retiring 4 inefficient carbon-intensive plants (Exelon 2010).
The implementation of this project will steer economy and community welfare through numerous job opportunity creation. In addition, the projects are also aligned to offer lower energy charges through low cost leadership strategy.
The sustainable environment strategy is in accordance with the requirement of international environmental stability. The environmental sustainability strategies adopted by the organization makes the world a better place.
Investing on friendly environmental energy sources not only enhances the organization’s reputation but it also allows it to compete effectively with other world leading firms.
Growth Strategy
The second strategy that Exelon has adopted is a growth strategy that aims to revolutionize the company’s entire operations. The growth strategy is aimed at expanding output margins and geographical coverage.
Despite being one of the most reputable organizations in the US, Exelon is planning to increase its geographical expansion in an attempt to reach new market niches (Exelon, 2010).
The other expansion area is diversification through mergers and acquisitions. Two years ago, the organization had planned merging with Public Service Enterprise Group (Exelon, 2010). The success of this merger would ensure the organization becomes the largest utility company.
On the other hand, the operations would generate revenue worth $ 27billion in annual revenues (Exelon, 2010). This expansion would help to employ over 28,000 people and extend its services coverage by over 9 million institutions (Exelon, 2010).
The other area of growth targeted is improvement in operation through utilization of strong information systems. This would help improve on leadership and resource stewardship management (Mcllvaine, 2007). The two will work to reduce the operation costs while creating financial value.
On the other hand, Exelon is making large strides by using clean energy such as wind energy, and efficient projects in operating the operations.
Critical Analysis
As the organization strives in meet its immediate and future requirements both environmental leadership strategy and growth strategies best fit the organizational plan.
By undertaking environmental sensitive projects, the organization is ensuring that it complies with international environmental requirements such as the Kyoto protocol.
Moreover, the projects will help the Exelon to increase its voltage production which will enable it fulfill its vision of becoming the best electric generation company. This strategy will also help it in meeting its safety core values by ensuring safe internal and external environment.
Similarly, environmental leadership is in line with continuous improvement core value that aims expanding its operation and engaging on new challenges and wide goals.
The growth strategy seems to be all-inclusive. The strategy was formulated to help organization to have a harmonious growth. For instance, the organization’s operations are in line with its goals of ensuring that it develops a world-class nuclear energy generation.
Therefore the organization growth strategy is in accordance with its vision simply because it strives to improve both its operation while maintain keen interest on the environment.
Despite the positive externalities that comes with environmental leadership, the cost constrains has negatively affected the organization’s growth strategy. Installations of machineries to extract environmental friendly energy are very costly and largely hamper the growth strategy.
However, implementations of the two strategies pose challenges that require the management to remain steadfast to remain on track. The conflicting priorities presented by the two strategies make it difficult for the organization to decide on any project.
For instance, any growth project is not invested in unless it is also considered viable after doing an Environmental Impact Assessment (EIA).
Conceptually, environmental leadership is expensive endeavor that requires adherence to premeditated goals as well as organization structure (Organization for Economic Co-operation and Development, 2001).
On the other hand, rapid growth sometimes makes all operation to be cumbersome in implementing the organization environmental leadership strategy.
Although mergers form a vital ingredient in growth, the differing environmental strategies makes it sometimes complicated to implement the environmental strategy while pursuing partnerships or mergers. However, the strong foundation of Exelon has helped the organization to manage arguably well.
Summary
Just like any other organization, Exelon has developed a strategic plan that governs its operation. The main strategic options being pursued are growth and environmental leadership.
The two strategies offer the organization a host of opportunities as well as challenges. Integrating the two conflicting organization strategies requires management to utilize all the resources available diligently. Failure to promote environmental welfare would hinder the organization’s future prospects.
Reference List
Exelon (2010). Climate change demands action. We are not waiting. Web.
Mcllvaine, A. R. (2007). Power Play: Human Resource Executive. [online] Web.
Organization for Economic Co-operation and Development. (2001). Policies to Enhance Sustainable Development. Paris: OECD Press.