Introduction
Centrica is a large multinational company, based in the UK but also with interests in North America and Europe
Centrica was demerged from the former British Gas in February 1997, established to continue to invest in a successful energy and related home services business in UK.
In Great Britain, Centrica is known and trusted by millions of consumers with their consumer’s brand, British Gas and Dyno, developing a range of products and services tailored to the specific needs of commercial customers. It remains the largest residential supplier of gas and electricity in UK. It is also the largest domestic central heating installation and maintenance company.
In addition, non-customer brands, Centrica Energy and Centrica Storage, play a key role in supporting the customer brands. Centrica Energy sources the gas and electricity to supply customers through their upstream gas production and electricity generation facilities and wholesale and gas trading activities. Centrica Storage provides gas storage services for a wide range of customers including other businesses within the group. Centrica has made strong inroads into the North American market and exporting strategy into Europe with ventures in Belgium, the Netherlands and Spain.
Centrica serves millions of people across the United Kingdom, North America and Europe. They provide a wide range of products and services, from gas and electricity supplies to insurance and telephone services.
Strategic Plan
Strategic planning consists of the process of developing strategies to reach a defined objective. This process provides an overview of the entire organization to its leadership. It is also defined as a plan describing how a firm will adapt to take advantage of the opportunities in its constantly changing environment, in order to maintain a strategic fit between firms and goals and capabilities and these market opportunities (Dictionary of Business 2002).
Strategic Plan should serve as a framework for decisions or for securing support/approval. This should also provide a basis for more detailed planning. This explains the business to others in order to inform, motivate and involve. Moreover, this assist benchmarking and performance monitoring and stimulate change and become building block for the next plan.
SWOT Analysis
SWOT analysis can provide a framework for identifying and analyzing strengths, weaknesses, opportunities, and threat. This can also provide an impetus to analyze a situation and develop suitable strategies and tactics, a basis for assessing core capabilities and competences. Moreover, this can provide the evidence for, and cultural key to change and a stimulus to participation in a group experience.
Vision
Centrica will be either number one or two leading supplier of energy and related services both in UK and internationally that have the appropriate business and regulatory climate , in order to provide high returns to shareholders that shareholders expect to receive from the top 25 best performing companies in the FTSE 100.
In 3 to 5 years time, Centrica will recover the wholesale cost of gas and will acknowledge that the long-term strength of the Group is dependent on British Gas delivering a fair and reasonable profit. We will have more than 300 new fully qualified engineers and will complete the nationwide roll-out of the engineer deployment system to all central heating engineers. Operating profit will rise by 60%.
Mission
Centrica manage sales, marketing, and customer service activities to reduce the impact of competitor. Cost control remains a high priority of the company. Develops system and improve process to achieve efficiences to meet the objective to reduce cost. Continue to seek expansion of infrastructure that bring gas into UK to have downward pressure on prices.
Corporate Values
The corporate values of Centrica are based on fundamental values and beliefs which links their vision to their business principles. These includes passion for customers, pride, trust, challenge, and support.
Passion for customer is the central value to the way they work. They have an ethos to deliver outstanding customer service, anticipating customers’ needs and correct errors promptly. They give value to money, and deliver efficient and effective products and services.
Pride comes from the satisfaction of their customer and from dlivering high quality products and services. Proud of the staff and their achievements and recognize and reward success. Trust is at the heart of their relationship to their customers, doing what they say, acting with integrity and respecting and empowering employees. Building trust helps develops strong future relationship with their stakeholders. Challenging themselves from constant striving for continual improvement, engaging constructively with advocates and critics from within and outside the company to maintain competitive edge nad deliver consistentlyoutstanding stareholders returns. Supporting employees seeking to meet and own challenges. They foster teamworking and knowledge sharing, and give their employees the tools and training they need to do their jobs well.
Objectives
The long term objectives of Centrica are summarized as: to expand the business agressively and offer above average returns to stakeholders and to be tnimber one or two leading supplier of gas and electricity in UK and internationally.
Goals
Centrica’s key targets will be achieved over the next 3-5 years are as follows: increase operating profit by 60%, operating and overhead costs reduction, achieve an expansion of efficient infrastructure, achieve a develop system and improved process, become the largest supplier of gas and electricity over Europe, and employ fully qualified employees and engineers.
Strategies
Centrica’s strategic priorities are the following: rigorous cost reduction across the Group to allow lower prices on the commodities, proactive marketing to strengthen customer loyalty and cope up again the large customer loss from this year, positive price management to sustain profitability, building growth in our service and energy businesses at home and abroad, and absolute financial discipline in acquisition and capital investment.
Marketing Mix
Product
Centrica provides a wide range of products and services, from gas and electricity supplies to insurance and telephone services.
British Residential Gas supply gas and electricity to residential customers throughout Great Britain. British Gas Services is the nation’s biggest residential gas and electricity supplier and also the largest domestic central heating and gas appliance and breakdown cover ptovided under the home care. British Gas Business is Britain’s leading supplier of energy to the business sector, and the only energy supplier dedicated to the needs of small to medium size customers through to industrial and commercial customers. The creation of a distinct business unit in 2002 enabled British Gas Business to focus on the specific needs of businesses, from core gas and electricity services to central heating care. Centrica Energy source the gas and electricity we need to supply our residential and industrial customers in Great Britain through a team of specialists working for Centrica Energy. Centrica Energy consists of our upstream gas production, electricity generation and renewable asset operations, wholesale and certain industrial gas sales activities, and our energy procurement optimisation and scheduling unit. Dyno-Rod, which is part of British Gas, is the UK’s market leading drain cleaning service. Its work includes clearing blockages, CCTV drain inspections surveys, drain repairs and pipework installations.It operates through a network of franchises covering all of the UK and Ireland.
Price
Price is one of the problem of Centrica today. Centrica have higher prices than the other competition in the industry.ause of high prices in their commodities, they loss millions of customer. To regain the loss, Centrica need to lower their prices. In order to lower their prices, they need to reduce their operational cost.
Promotion
Centrica had loss many customers. In order to regain them a intensified promotion should be done. Additional services should be undertaken to sustain their still loyal customers and also to attract new customer.
Place of Distribution
Centrica has a goal to penetrate the whole Europe. It would be a good idea for the company to expand more to be able to get to supply the gas and electricity to the European countries. Additional rofit would entail the company if it will be achieved.
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