Constructing the Medupi Power Station

Constructing the Medupi Power Station Description

Medupi, rising from the dry Limpopo Province bush veld, was the first baseload project built in South Africa in 20 years. It would be the largest dry-cooled coal-fired power station in the world and was developed by Eskom, which generated 90 per cent of Southern Africa's power, at an estimated cost of R125 billion. In spite of the worldwide concern about greener energy, coal remains the most popular power station fuel for South Africa, due to the country's vast resources of 224 million tonnes annually. The new capacity Medupi would offer was sorely needed. Regular and nationwide load shedding, due to a shortage of capacity, affected the entire country during 2007 and 2008 and all businesses were asked to turn off non-essential lighting and equipment, even during the day. It had been no mean feat to keep to a project schedule that involved various suppliers providing different packages at different dates and also required accommodating several interfaces during both the design and implementation of the work on site. Due to the massive scale of the project as well as the highly specialized civil engineering required for different sections of Medupi's construction, three companies joined forces to tackle the job, namely Murray & Roberts, Aveng and Concor. Murray & Roberts appointed Coenie Vermaak as project director at Medupi and at 34 the youngest project director in the group. The managers of the joint venture realized quickly that this would be "a project like no other." The three companies' different ways of working necessitated much more integrated coordination. For instance, employees from the different parent organizations had different job descriptions, were numerated differently, had different benefits, structures, processes and cultures. Medupi's uniqueness provided an opportunity to be pioneers in the construction industry and to "reconstruct construction" with a different way of working on a construction site. A culture of employee engagement and alignment was required.

Case Description Constructing the Medupi Power Station

Strategic Managment Tools Used in Case Study Analysis of Constructing the Medupi Power Station

STEP 1. Problem Identification in Constructing the Medupi Power Station case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Constructing the Medupi Power Station case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Constructing the Medupi Power Station case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Constructing the Medupi Power Station case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Constructing the Medupi Power Station case study

STEP 6. Recommendations Constructing the Medupi Power Station case study

STEP 7. Basis of Recommendations for Constructing the Medupi Power Station case study

Case Analysis of Constructing the Medupi Power Station

Constructing the Medupi Power Station is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Constructing the Medupi Power Station is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Constructing the Medupi Power Station case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Constructing the Medupi Power Station will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Constructing the Medupi Power Station case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Constructing the Medupi Power Station, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Constructing the Medupi Power Station case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Leadership & Managing People Solutions

In the Texas Business School, Constructing the Medupi Power Station case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Constructing the Medupi Power Station

Step 1 – Problem Identification of Constructing the Medupi Power Station - Harvard Business School Case Study

The first step to solve HBR Constructing the Medupi Power Station case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Medupi Medupi's is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Medupi Medupi's, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Constructing the Medupi Power Station.

The external environment analysis of Constructing the Medupi Power Station will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Constructing the Medupi Power Station case study. PESTEL analysis of " Constructing the Medupi Power Station" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Constructing the Medupi Power Station macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Constructing the Medupi Power Station

To do comprehensive PESTEL analysis of case study – Constructing the Medupi Power Station , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Constructing the Medupi Power Station

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Constructing the Medupi Power Station

Government policies have significant impact on the business environment of any country. The firm in “ Constructing the Medupi Power Station ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Medupi Medupi's is operating, firms are required to store customer data within the premises of the country. Medupi Medupi's needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Constructing the Medupi Power Station has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Medupi Medupi's in case study Constructing the Medupi Power Station" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Medupi Medupi's in case study “ Constructing the Medupi Power Station ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Medupi Medupi's in case study “ Constructing the Medupi Power Station ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Constructing the Medupi Power Station

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Constructing the Medupi Power Station ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Medupi Medupi's can compete against other competitors.

Government Scheme & Subsidies Impact on Constructing the Medupi Power Station

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Constructing the Medupi Power Station case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Constructing the Medupi Power Station

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Medupi Medupi's needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Constructing the Medupi Power Station

Social Factors that Impact Constructing the Medupi Power Station

Technological Factors that Impact Constructing the Medupi Power Station

Environmental Factors that Impact Constructing the Medupi Power Station

Legal Factors that Impact Constructing the Medupi Power Station

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Constructing the Medupi Power Station case study. PESTEL analysis of " Constructing the Medupi Power Station" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Constructing the Medupi Power Station case study solution