Running Head: ORGANIZATIONAL READINESS

Assessing Organizational Readiness

[STUDENT NAME]

[PROFESSOR NAME]

[COURSE TITLE]

[DATE]

Introduction

Enron was the majority owner of Dabhol, which was a large combined cycle power plant situated on the western coast of the Maharashtra state in India. The project of Dabhol power plants was commenced in 1992 and took a total of nine years to begin operations of the plant. The total project cost of Dabhol was 2.9 million dollars, with Enron owning 65 percent of the plant followed by, Bechtel Enterprises owning 10 percent, General Electric owning 10 percent, and the state of Maharashtra Electricity Board holding 15 percent. Enron asserted that the Dabhol power plant is the largest gas-fired power plant in the world producing 2, 184 megawatts of electricity. The plant ceased operations in June 2001 that had arisen from a payment[pic] and contract dispute between the owners of the plant and the state of Maharashtra government. The paper will analyze the critical success factors (CSFs) as applied to the various facts found in the case study in “Politic, Institutions and Project Finance: The Dabhol Power Project”. The paper will also attempt to determine the benefits of the project, organizational readiness, and risk culture of the company with facts stated in the case study. By analyzing the CSFs and other components project risk recommendations will be given after a thorough analysis of the criteria.

Critical Success Factors (CSFs) of Dabhol Power Project

The term critical success factors are used to define the elements or components that are mandatory for an organization or project to achieve its mission. They can also be considered as the critical factors or the needed activity to make sure that the company or organization meets with success. According[pic] to Freud (1988), critical success factors are