AGL Limited: Providing Secure And Affordable Energy In Eastern Australia, Essay.

Background of AGL Limited

Discuss about the Managerial and Financial Reporting Systems.

The operations of the firm AGL limited started in the early 1937 and this long journey has led it to become one of the best achievers of the Energy companies. The company has a great overview with best in the game technologies and workforce. It also provides its customers very secure and affordable energy which is also free of emission of the greenhouse gases which are very dangerous for the environment. It serves the customers of the whole eastern Australian region and is providing them with a source of energy for 175 long years. They have a variety of energy sources which includes gas, solar power, electricity and many other related energies (AGL, 2017). This long tenure of serving its customers has increased their credibility in the market thus making them a much-known energy provider. When it comes to the background of the firm, it is very bright as it has not only generated energy using the thermal power generation but it has also used the renewable sources of energy like the wing, water turbines, solar energy, biofuels, etc.

As per the functioning of AGL Limited stated it can be commented that the energy generation industry has been facing and undergoing a lot of changes in the recent years. There are many leadership changes in the institution that may help him to capitalize the firm and thus create a dynamic environment for the firm to prevail upon (AGL, 2017). These changes will also lead to the improvement of the product range they provide thus increasing the diversity of the products and services provided by them.

The structure that he will be using to maintain different departments will have seven different execution teams which are the energy market operations, shareholders relations, new energies, organizational transformations, people, and culture, group organization and at last the finance and technology (Bodie et. al, 2014). Also, the firm has decided to appoint a separate company secretariat but have not thought to put it on the executive team. Also a detailed study of the companies upstream gas business is on its way. Only after the proper assessment and reviewing of the companies new upstream gas business, it will tend to stand constantly in the field (Douma & Hein, 2013).

There will be a recruitment of the new executive roles for the different departments and also the existing members have been invited to be given with some existing jobs for them which are much needed in the new structure (Peirson et. al, 2012). The most of the recruitments are asked to be made until the 1st of May but there may be an external research required for few placements which will be announced on the 1st of July. The new structure will lead to many changes in the line of reporting of the institution which will also be taken into force from the 1st of May. The process of restructuring will lead to an observational decrease in the cost and expenses as because of the fewer employees thus will also affect the operational functions of the firm’s employees (AGL, 2017).

Functioning of AGL Limited

This framework consists of three major elements. Firstly, it is the design of business, objective or strategy of the organization, secondly, it is the actions which are involved in the formulation of strategy and its implementation and lastly it is the ability of the members to execute the strategy (Hemmer & Labro, 2008).

Business design (Objective/ strategy) - the element of the business organization is identified first. An inquiry to understand the business organization is made here. This helps in designing the plans to achieve goals in innovative techniques.

Strategic management principles and activities – under this step we form the strategy and ways to execute the same. This step is wholly concerned with the execution of the strategic plan in a detailed way so that the designs can be successfully implemented. It helps is training the members of the organization to do better by developing the competitive advantage (Siraj et. al, 2011).

Organization member capabilities – the members play a very vital role in order to achieve the targets. The capabilities of these members can be classified into three broad heads, these include the strong foundation, that is the management, secondly comes the innovation and lastly, it is the design of the business. Under this strategy, the focus is to be shifted from mass to individual. Personalised service is the major objective of this strategy. It also helps to share the energy (Levine & Prietula, 2013). The focus of this tragedy is not only to make use of big assets for self but also use small assets and bring them to the advantage of others. Carbon emissions control is another part of this strategy. Implementation of new generation technology helps in cost saving and lesser pollution (AGL, 2017). Being environment-friendly will not only help the environment but also help create value for the company. Creating market opportunities for the small investors is another part of this strategy. This helps in capital formation and benefits the small investors too (Caradonna, 2014). The strategic management practices of the firm are involved in being a personalized retailer. As seen the company is taking the serious initiative in empowering the customer to manage their energy usage and this is done through the presence of simple solutions, smart technology, and services that are personalized (Freeman & Alexander, 2013). Hence, the main focus is to provide comfort to the customers and to enhance its base in the market.

Restructuring of AGL Limited

Secondly, the strategic management of the company aims at being an owner, as well as the operator of large assets to both large and small assets. The main concern of the company or the strategic vision is to invest in a future that is shared where the generation of energy can be done, stored and shared by people (Davies & Crawford, 2012). Thirdly, the strategic aim is to move from high to lower emission technology (Carmichael & Graham, 2012). Therefore, the company aims at making way for new and low carbon emission. Lastly, the company aims at moving to markets that are new and left unexplored. The expansion process has led to new opportunities in the retail segment.

The firm is a huge bundle of the resources and capabilities which are generally made up of the physical, financial, human and the intangible assets. According to the big theories, these resourced are non-renewable and exhaustive in nature and thus have limited mobility and also are of homogeneous nature. The firm can thus use these resources to grow if it is capable of understanding the use of them and thus applying them to work to complete the organizational goals (Needles & Powers, 2013).

Going by the resource-based theory, it can be said that AGL Energy is using the resource-based theory into practice. The company is using the resources, however, devising new and improved means that helps to safeguard the resources. It is noted that the company has made way for new and low carbon emission (AGL, 2017). Therefore, the major emphasis is on the attainment of the organizational goals, on the other hand, it even ensures that the resources are used in a manner that does not exploit it.

It is the difference between the top management of the firm and the employees. It mentions the firm as a contract of nexus. Both the sides need to interact and work together so that they can share the risks and damage thus leading to the increase in the efficiency of the firm and also recognizing that the intermediate goals of the firm which were set as targets are achieved (Deegan, 2011). In the case of AGL Energy, it can be noted that the top management and the employees share a cordial relation and this is one of the major reason for the success of the company (AGL, 2017).

A firm is the aggregate of the buyers, suppliers, rivals and other agencies. These are thus linked by the individuals who lead to the increase in the legitimacy of firm’s resources and thus make the diverse reach of the firm. When the firm has high reachable it can be centralized easily but also this reach may lead to forming constraints within it (Brigham & Daves, 2012). As seen by the mission and vision that the company tends to target the customers and this is done by the suppliers, agencies etc. Hence, it can be commented that the company has a strong network that has led to the attainment of success.

Framework of AGL Limited

This theory tells that the firm can have a secure path built on its resources and capabilities which may be used to survive by the firm in the harsh situations. These may help the firm to take another path thus helping them to survive the new or immediate environmental changes. Thus this theory believes that the firms are interrelated and thus they also have a mixed system of cooperation (Alter, 2013). As seen by the progress of AGL Energy, it can be said that the company has faced severe competition from Origin Energy, Delta electricity, etc however ensured a smooth movement owing to the resources and capabilities (AGL, 2017).

Under this system the mission or the purpose of the organization is rooted with the strategy formulation, it is a systematic approach under which the actions or decisions of the firm which are against the goal or mission are tested (Parrino et. al, 2012). The bases on which the targets of the firms are expected to be achieved are formed under this approach. The evaluation of the firm and its environment along with nature and form is also defined. It also helps in deciding the nature of decision made by the business and the corporate (AGL, 2017). Last but not the least it defines the state or order which will help the firm to achieve its target mission. Going by the discussion and the process, it can be said that AGL Energy has ensured a systematic approach and this is one of the major reason why the company has been successful in the attainment of the goals (AGL, 2017). The framework of the company is clearly defined and is done in accordance with the line of business. The strategy of the company resides on four important notions and there are two major strategic imperatives that are carbon-constrained future and catering to the customer's requirements.

Conclusion

When it comes to strategy as a perspective, it can be said to be more abstract in nature that helps in attainment of the goals because it is not related to a market or business in a directs manner. However, it is related to the manner in which a firm performs. As per the discussion on AGL Energy, it can be commented that the company has desired values in mind and is performing as per the objectives that are laid down. Moreover, the strategic objective influences the mission and vision of the company. When it comes to the concept of a rational system, an organization designs a strategic objective and keeps a strong strategic management. Similarly, AGL Energy performed in a strong manner because the strategic management approach of the company is well defined and ensure that the aims are attained. In short, the concept of strategic objective helps the firm in attaining the most economical way that is possible. However, to ensure this, it is essential for the company to have strong standards for control, as well as coordination.

References

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