...Electric Utility, Inc. – Balanced Scorecard Example Objectives Measures (D=Drivers) FY01 Customer Financial •Maximize returns •Profitable growth •Leverage asset base •Manage operating costs •Industry leading customer loyalty •ROCE •Revenue growth •Asset utilization rate •Operating costs / customer •Customer Satisfaction Rating 14% 6% 80% $150 80% Targets FY02 14.5% 8% 85% $140 85% Initiatives FY03 15% 12% 90% $125 90% •Customer loyalty program Business Growth •Capitalize on deregulation opportunities •Optimize trading opportunities •Develop innovative services •Use alliances and joint ventures •Leverage cross-group R&D •% revenue from deregulated products/services •% trading revenue •Revenue from new services •% customers serviced through alliances/joint ventures •NPV product/service pipeline •% R&D projects meeting protocol gates (D) 5% 10% $500M 10% $500M 90% 7% 12% $550M 20% $550M 95% 10% 15% $600M 25% $600M 100% •Telecom infrastructure development •Trading risk assessment •Research alliance program Internal Processes Continued Public Support •Proactively manage relationships •Ensure reliable services •Communicate/educate customers Customer Service Excellence •Seamless cross-group delivery •Understand customer drivers •Effective customer services Optimize Core Business •Optimize asset utilization •Max return on resource allocation •Continued cost management •Enterprise-wide risk management •Customer/partner satisfaction (5 point scale)...
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...The grid operaTor, power MarkeT & prices under Texas eLecTric dereguLaTion ERCOT THE GRID OPERATOR, POWER MARKET & PRICES UNDER TEXAS ELECTRIC DEREGULATION THE STORY OF FEBRUARY 2011 A SPECIAL RESEARCH PROJECT BY THE STEERING COMMITTEE OF CITIES SERVED BY ONCOR & THE TEXAS COALITION FOR AFFORDABLE POWER The sTory of ercoT AMARILLO LUBBOCK PLANO FORT WORTH ABILENE MIDLAND/ODESSA WACO DALLAS ALPINE AUSTIN HOUSTON SAN ANTONIO CORPUS CHRISTI LAREDO THE ERCOT REGION The grid operaTor, power MarkeT & prices under Texas eLecTric dereguLaTion THE STORY OF ERCOT ABOUT THIS REPORT The Electric Reliability Council of Texas, also known as ERCOT, is the non-profit corporation that oversees the Texas power grid. The organization also has responsibility for settling transactions in the state’s wholesale spot market for electricity. But the term “ERCOT” also is used loosely in other ways. For instance, the term can describe the geographical footprint for retail electric deregulation in Texas. It is also sometimes used to describe the state’s wholesale energy market. This report touches upon policy questions relating to all these conceptualizations of ERCOT: as an organization, as an energy market, and as the area of Texas with competitive electric suppliers. To distinguish between these meanings, the term “ERCOT” will be used whenever practicable to refer to the organization, “the ERCOT region” will be used to refer to deregulated areas of the state...
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...largest trading firms in the U.S. It was founded in 1985 by Ken Lay when he began his crusade to help liberate businessmen from government regulation. It remained one of the largest firms up until 2001, when all of their illegal activity was exposed and all of the finger pointing began, and was even voted to be the most innovative companies in 2000 by fortune 5 hundred magazine (First 20 min.). The scandal had broad reach, and included many politicians including WWW.Time.COM (2002) George Bush Sr. and Jr. as well as then Vice President Dick Cheney and Attorney General John Ashcroft. It also included Enron’s auditor Joseph F. Berardino who was the CEO of Arthur Andersen, and their banker Marc Shapiro Vice President of JPMorgan Chase. All of these people played a role in the scandal, although they didn’t even work for the company, but the key players were the Enron officials. Including but not limited to the following Enron employees, Kenneth Lay was the CEO, and Jeff Skilling was the Chief Executive while Richard Causey was the CAO. Andrew Fastow was the CFO and Wendy Gramm and John Mendelsohn were both members of the Board of Directors (Behind the Enron Scandal). The bad decisions were made from the very beginning. The Smartest Guys in The Room (2005) The Bush family had a very strong relationship with Ken Lay, and George Bush Sr. helped get $30 million in subsidies for Enron Int., while he was in office. He also promoted Ken Lay as the ambassador of deregulation. Lay...
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...ENRON'S COLLAPSE: THE OVERVIEW ENRON'S COLLAPSE: THE OVERVIEW; ENRON COLLAPSES AS SUITOR CANCELS PLANS FOR MERGER By RICHARD A. OPPEL Jr. and ANDREW ROSS SORKIN Published: November 29, 2001 Correction Appended Enron, the champion of energy deregulation that grew into one of the nation's 10 largest companies, collapsed yesterday, after a rival backed out of a deal to buy it and many big trading partners stopped doing business with it. Enron, based in Houston, was widely expected to seek bankruptcy protection. With $62 billion in assets as of Sept. 30, it would be the biggest American company ever to go bankrupt, dwarfing the filing by Texaco in 1987. Late in the day, though, Enron's chief financial officer, Jeff McMahon, said that the company was still talking to banks about a restructuring and considering other options. Talks with its would-be rescuer Dynegy, also of Houston, about salvaging the deal ended in acrimony. Dynegy, which had agreed on Nov. 9 to buy Enron but had second thoughts as Enron disclosed more financial problems and investors pummeled its stock, accused Enron of misrepresenting the health of its business. Enron, meanwhile, was weighing whether to sue Dynegy for breaching the terms of the deal, a person close to Enron said. Enron's swift collapse left the prospects of 21,000 employees in doubt and wiped out what was left of the holdings of stock investors, including some big mutual funds, as shares that sold for $90 in August 2000 crashed to close yesterday...
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...income workers compared to the increased affluence of higher socioeconomic groups. There has been a decline in full time work from 89 per cent to 69 per cent and rapid growth in services to over 80 per cent. There has been an increase in part-time and casual work; around one in four workers are part-time (due to more flexible workplaces, increased subcontractors, extended trading hours, work and family considerations). The workforce participation of women has increased from 37 to 55 per cent and the number of employed people with a bachelor's degree or higher has increased from 3 to 19 per cent. The proportion of 15 to 24 year olds remaining in our education system has increased from 35 to 54 per cent, partly due to the changing needs of our workplaces and the increased competition for jobs and further education. There has also been a significant increase in 'own account workers', known familiarly as 'independent contractors' (for example, professionals working from home or tradespeople running their own businesses). See animation 1 Structural change also refers to industrial change, corporate deregulation/downsizing and changing...
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...among the people. In the run-up to complete deregulation, there are instances of increase in the domestic price of POL products that are proportionately more than the rise in their international prices. In the most recent instance (of 13th September, 2012), the diesel price was raised by Rs.5 per litre at one go, even without any rise in international prices. These steps are being taken to eliminate the government subsidy on these products in a step-by-step manner. Deregulation of the POL sector is bound to eliminate the direct or indirect subsidies completely. And reduction in subsidy, according to the government, is the need of the hour in order to reduce the fiscal deficit as proportion to GDP. Deregulation is also necessitated in the current neo-liberal environment because if the government keeps subsidizing the public sector owned oil marketing companies (OMCs) like Indian Oil, Hindustan Petroleum and Bharat Petroleum, then the private companies like Reliance and others would not get a ‘level playing field’ and they would not be able to compete in price. In this way, the present subsidy regime indirectly restricts the private players from entering the oil marketing sector. Hence, if the priorities of the government in power are the reduction of subsidies and ensuring a ‘level playing field’ for private players rather than containing inflation and generating employment and growth, it would opt for a policy of deregulation. “A market-determined pricing system for petrol...
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...America's seventh largest corporation. Enron gave the illusion that it was a steady company with good revenue but that was not the case, a large part of Enron’s profits were made of paper. This was made possible by masterfully designed accounting and morally questionable acts by traders and executives. Deep debt and surfacing information about hiding losses gave the company big problems and in the late 2001 Enron declared bankruptcy under Chapter 11 of the United States Bankruptcy Code. Many factors affected Enron's surge to the top and its sudden fall. In this report we will discuss and present what we think were the main reasons of their rise and fall. Enron’s surge to the top From energy to trading Kenneth Lay was one of the key spokesmen when it came to deregulation of the energy market, much because of his personal connection to the Bush family. In the early 1990's the United States congress approved a legislation that deregulated the sale of natural gas. Not long before this Lay was...
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...Charles Schwab in 2008 1. Analyze the competitive structure of the brokerage house industry using Porter’s five forces model. What are the principle drivers of profitability in this industry? How have changing regulations, demographics, and technology impacted competition over the last two decades? Five Forces Analysis assumes that there are five important forces that determine competitive power in a business situation. These are: 1) Bargaining Power of Supplier 2) Bargaining Power of Buyers 3) Intensity of existing Rivalry 4) Threat of New Entrants 5) Substitutes 1) Bargaining Power of Supplier In the on-line brokerage firms, we have 3 major categories of suppliers that are * Suppliers for IT infrastructure * Suppliers for the software required to operate these sites and offer functionality to customers * Information services that will offer content to brokerage firm’s website Once the on-line brokerage commits to a company (supplier/s) of the above .these companies that supply this back-end infrastructure can be reasonably certain that the on-line brokerage will commit and remain a customer for some time since future equipment will usually have to be compatible with the existing architecture. The same dependencies can be attributed to the software vendors. Another leading supplier consists of firms that provide financial information to the brokerages such as Aether, Reuters and Associated Press. However, Securities and Exchange...
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...driven by neoliberal ideologies, which has adapted to the economic and social conditions of the current day. The recent phenomenon of globalization is in essence a modern form of global hegemony and dominance that establishes control through financial domination and capital exploitation. This paper focuses on this process of domination by examining the effects of neoliberal policies and structural reforms using the nation of Brazil as the unit of analysis. As will be discussed later in this report the government of Brazil has undergone significant structural changes over the last few decades that have resulted in an economic shift towards neoliberal policies. Policies promoting free enterprise capitalism, privatization of national assets, deregulation, tax reforms, flexible interest rates, trade liberalization and reductions in public expenditure have resulted in devastating outcomes for poor and marginalized groups within Brazil. These economic reforms have reordered government priorities resulting in cuts in social spending, worsening of wage inequality, displacement of workers, intensification of national debt and the weakening of labor bargaining and the conditions for meaningful work. The argument that this paper seeks to prove is that neoliberal policies in Brazil have altered political and social structures resulting in economic imbalance and economic, social and cultural human rights infringements. In order to fully understand the impacts of globalization in Brazil it is...
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...known as Jonathan’s Coffee-house. It is the earliest evidence of organized trading in marketable securities in London. 2. Royal exchange This is something similar to the exchange that we see today. The Royal Exchange not only housed brokers but also merchants and merchandise. However, this was the birth of a regulated market and, as such, had its teething problems in the shape of unlicensed brokers. B. Opportunities (1801—1914) 1. Establishment On 3 March, 1801, the first regulated institution of the London Stock Exchange was formed and the modern Stock Exchange was born. 2. First codified rule book In February 1812, the General Purpose Committee confirmed a set of recommendations, which later became the foundation of the first codified rule book for the Exchange. With its new governmental commandments and increasing trading volume in place, the Exchange was progressively becoming an accepted part of the financial life in the City. The government used the Exchange's organized market to raise the enormous amount of money in the wars against Napoleon. C. During the Wars (1914 —1945) 1. The First World War The Exchange market was closed from the end of July in 1914 until the New Year in 1915. It was set to open again on the 4th of January 1915 under tedious restrictions, as transactions were to be in cash only. Due to the limitations and challenges on trading brought by the war, almost a thousand members quit the Exchange between the...
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...Securities, Commodities, and Financial Services Sales Agents Significant Points • Most positions require a bachelor’s degree in busi- • Applicants face keen competition for jobs, especially • Turnover is high for newcomers, but those who are successful have a very strong attachment to their occupation because of high earnings and considerable investment in training. in investment banks. ness, finance, accounting, or economics; a master’s degree in business or professional certification is helpful for advancement. Nature of the Work Each day, hundreds of billions of dollars change hands on the major United States securities exchanges. This money is used to invest in securities, such as stocks, bonds, or mutual funds, which are bought and sold by large institutional investors, mutual funds, pension plans, and the general public. Most securities trades are arranged through securities, commodities, and financial services sales agents, whether they are between individuals with a few hundred dollars or large institutions with hundreds of millions of dollars. The duties of sales agents vary greatly depending on their specialty. The most common type of securities sales agent is called a broker or stock broker. Stock brokers advise everyday people, or retail investors, on appropriate investments based on their needs and financial ability. Once the client and broker agree on the best investment, the broker electronically...
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...Cooke Economics and Statistics Administration Office of Policy Development Office of Business and Industrial Analysis June 1997 ESA/OPA 97-6 Structural Change in Banking: the Role of Information Technology Structural Change in Banking: the Role of Information Technology ABSTRACT Commercial bank investment in information technology (IT) equipment has grown rapidly, from $104 million in 1960 to more than $10 billion in 1994. These investments in “hard” technologies (computer hardware, software, telecommunications equipment, etc.) have been accompanied by increases in "soft" technologies, for example, complex financial innovations that were infeasible on a large scale without IT hardware. These developments, together with deregulation, are creating new competitors, new financial markets and instruments, and a new role for commercial banks as providers of financial services. This study documents how changes in information technology have affected the role of banks in financial markets and have influenced changes in the structure and performance of the U.S. banking industry. The analysis also covers new, fast-growing financial innovations linked to IT investment e.g., asset securitization and derivatives. IT’s effect on the banking industry has been positive. Increased competition has caused banks to lose traditional customers, but IT enabled the banks to offer new products, expand into nontraditional areas, operate more efficiently, and minimize risk. The aggregate...
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...MGT 6753 Industry Analysis Low-Cost Carriers in Europe Julian Geiger, Michael Schlottke, Marcus Schrade MGT 6753 Industry Analysis Low-cost carriers in Europe Industry Overview The market for low-cost carriers first emerged in the US with Pacific Southwest Airlines, pioneering the concept in 1949. The European market did not really develop until aviation deregulation came into effect in the 1990’s, making flights affordable for a wider range of customers. Building on the inclining demand for cheap flights mainly by private individuals (average annual growth of 9.4% for leisure travelers between 1996 and 2003 [11], Figure 2), the industry has experienced rapid growth since then. Most notably, Irish airline Ryanair, formed in 1990, and British company EasyJet, formed in 1995, were able to shape the European market (Figure 3). Germanwings and Air Berlin are additional major players in the low-cost carriers (LCC) market throughout Europe. PEST Analysis The evolvement of the LCC industry in Europe was only possible through one major political decision in 1997 – the deregulation of the European flight market. Before, the market for flights was largely controlled by the governments of European countries, trying to secure their respective national carrier’s market share. This led to high prices for European flights – airfares were roughly twice as much as those for comparable distances in the U.S. [1]. After lifting most restrictions and enabling European carriers...
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...prominent Retail shop on a common platform and analyze their working and performance. Café Coffee Day and Barista were chosen because of the convenience of research process as they are well known cafeteria in most of the locality. They are the only two major players in the national coffee café industry, and their customers consider both as interchangeable brands. This is why it is important to study how these brands differentiate themselves through different Retail strategy. Café Coffee Day It was in the golden soil of Chikmagalur that a traditional family owned a few acres of coffee estates, which yielded rich coffee beans. Soon Amalgamated Bean Coffee Trading Company Limited, popularly known as Coffee Day was formed. With a rich coffee growing tradition since 1875 behind it coupled with the opportunity that arose with the deregulation of the coffee board in the early nineties. Coffee Day began exporting coffee to the connoisseurs across USA, Europe & Japan. Coffee Day has a wide and professional network in the major coffee growing areas of the country comprising over 48 agents and 50 collecting depots. Coffee Day has a wellequipped roasting unit catering to the specific requirement of the consumers. The process is carried out under the control of experienced personnel to meet highest quality standards. The most modern...
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...OVERVIEW OF THE CASE In 2002 Delta airlines faced the unfortunate realization that the competition from low cost carriers like Southwest and JetBlue was becoming a serious problem. Even though Delta had been looking at this problem for a long period of time, the business model of Delta Airlines was organized by function and their solutions generally focused on individual aspects of the firm. For example, the marketing department provided marketing ideas, the customer service department offered customer related solutions etc. Delta realized that they did not have a comprehensive solution to dealing with the low cost carriers in the market. One of the simplest solutions proposed by Delta management was the idea that Delta could launch its own low cost subsidiary, however, looking at the rest of the airline industry, low cost subsidiaries seemed to be ideas that were either immediate failures or unsustainable over time. According to experts, they had “never seen a high-cost carrier transform itself into a low cost carrier”. With or without this option, Delta would have to find a solution to this problem. The airline industry in the United States is immense, with more than 620 million passengers and over $81 billion in fares in 2001 alone. Unfortunately, while immense in size, in terms of profit, the airline industry continued to perform below the average for other industries. Many investments made by the larger carriers were not profitable and the tragedy of 9/11 put more pressure...
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