Building a multi-utility business
A ScottishPower case study

Page 1: Introduction

If you look in the dictionary for the word ‘utility’ you will find the following: “the quality of practical use, usefulness: a public service such as the bus system.” These definitions help us to arrive at a picture of what utilities are. Utilities are services which are of practical use to the community at large in this country including businesses, other organisations...
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Page 2: Review

The Electricity Industry in this country was privatised mainly in 1990 and 1991. The operations of the Electricity Industry consist of four main functions: Generation: The production of electricity at power stations. Transmission: The bulk transfer of electricity at high voltages through a central transmission system known as the national grid. Distribution: The transfer of electricity from the...
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Page 3: The external environment

Looking at the recent history of developments in the electricity industry, it becomes immediately apparent why ScottishPower has developed its strategy:1/4/90Large industrial customers who used over 1MW were able to choose their own electricity supplier. These customers account for around 30% of electricity sales, but include only a very small number of the large industrial firms, such as ICI...
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Page 4: Strategy

In recent times there has been ever increasing competition in the utilities market and this has been accentuated by the entry of foreign companies into the UK e.g. French multi-utility companies, particularly in the field of water services and US telecommunications. Regulation has been ever-tightening. Regulators are appointed by the government to establish and maintain a competitive framework...
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Page 5: Implementing a strategic vision

ScottishPower has gone a long way towards implementing its strategic vision. This case study has shown how ScottishPower has moved into a diversity of utilities - most recently by acquiring Southern Water so that it has added water supply and sewerage services to its portfolio.The popularity of offering multi-utility services is already in practice. For example, one of ScottishPower’s...
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Page 6: Conclusion

This study provides students with a fascinating and detailed practical case study of how a leading organisation has developed and implemented a strategy designed to enable it to ride the wave of change. This strategy has involved careful consideration of the scope of its operations and of how resources can be drawn on to ensure that the organisation is able to focus on its strengths. ScottishPower...
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