Introduction to Management of AGL

Australian Gas Light Company AGL was formed in the year 1837 with its head office in Sydney. AGL company produces electricity, gas, internet, and mobile it generated energy from power stations that use thermal power, natural gas, wind power, hydroelectricity, solar energy, gas storage, and coal seam gas it’s a business operation and practices are sustainable therefore making it popular among its stakeholders in various parts. This company despite its strengths and weaknesses has managed to keep sustainable values and high business objectives in its running.

Vision and mission
Every company has a vision that serves as a strategic plan for the success of this business it also aligns everyone to a certain focus ensuring everyone works towards the same focus in that organization. The vision of AGL is to lead the Australian energy market and create sustainability in the business operation processes. Its mission is to offer sustainable and renewable energy products and services to its customers to a cost-effective approach (Pelegrini, Marie 2014) AGL has focused on the use of its available resources adequately to offer high-quality services.

Purpose
AGL has a passionate belief in progress – technological and human – and a relentless determination to make things better for everyone, the community, the Australian economy, and the world at large. AGL is working on inventing new ideas, having new partners and infrastructure to renew and expand their business and make their products more sustainable, affordable, and useful

Values
Every organization has its values. AGL is strongly focused on the development of strong ethical and economical values, The first major value is care in every action it is concerned with the physical and psychological safety of everyone, puts first its environment, and is responsible and sustainable in all of its actions. The second value is integrity always which is doing the right thing, keeping promises, being open and accountable, and keeping their promises. The third value is better as one that is building a collaborative partnership with their stakeholders, being respective and inclusive of all, and breaking down silos. Delivering their best is also another value where they aspire to go an extra mile for their customers, always looking to improve and doing their work excellently every day. The last value is shaping tomorrow, they embrace opportunities to grow and have the courage to explore new possibilities and keeping the future in focus.

Social Responsibilities
AGLs objectives, values, and activities indicate an example of a company that is socially responsible for example their first value which is care in every action and one of it is caring for the environment. By producing sustainable and renewable resources, the company corporates a social responsibility practice. The use of renewable resources such as water and solid waste to generate energy is also an example of corporate social responsibility. The company’s aspiration to go for an extra mile for their customers, being respective and inclusive of all and delivering their best shows the management’s focus on people’s sustainability aspect this has ensured the management of the organization gain strong business growth and effective customer support.

Stakeholders
AGL understands that interest in the Plant is not only from directly affected landowners and its neighbors but everyone in the broader community. AGL’s engagement with the community at large and its stakeholders is viewed as appropriate. The values of AGL have mentioned building collaborative partnerships with its stakeholders, being respective and inclusive of all. Management of the organization gives strong value to its external stakeholders such as community members, business clients, customers, and the government of the states. Internal stakeholders such as employees and board, members have also received huge value.
AGL has a way of choosing its stakeholders (Chapman, McLellan, Tezuka 2018); the stakeholder’s analysis tools

including the following:
Category 1-Stakeholders on which the company is likely to have a high impact either positively or negatively and those who have a high level of interest in the company. This includes the neighbour’s, residents, employees, and business clients near the business
Category 2-Stakeholders on which the company is likely to have a high impact either positively or negatively but do not have a high interest in the company. These are the residents and businesses located further from the business
Category 3-Stakeholders who have considerable interest in the plant but on whom it has a relatively low impact
Category 4-Stakeholders with little interest in the company and on whom it has little or impact

Goals
Goals represent a company’s larger purpose and work to establish an end goal for employees to work toward. Business goals do not have to be specific or have clearly defined actions they are broad outcomes that the company wishes to achieve, they help an organization maintain success in the global business operation process, and they are comprised of specific, measurable, realistic, attainable, and timely goals (Beugelsdijk, 2010).

AGL energy focuses on a pricing strategy where clients are demanding low prices this is because of the cost-based pricing strategy motivating the companies to charge a high price for some services causing a drop in sales growth rate. AGL energy aims at attaining a 25 percent sales growth rate compared to the previous year and also improve the client’s number this can be attained; by use of the internet the company should be able to promote most of its activities Lastly, the company aims at expanding globally to the nearby countries.

Believable & Value Addition
The setting of the Goals above is believed to help in the management. This is highly important to show that the comp0any is trying to improve its pricing strategy and the use of technology will also help it expand across the borders to take care of the business rise in its growth rate and market share growth rate. In addition, AGL energy will act as a value-added service as getting renewable energy services from people across the globe can help an organization ensure a significant growth rate across the world (Coultere & Hancke, 2016); by doing so the business will meet its mission and vision and attain its objectives.

Strengths, weaknesses, and threats (SWOT) analysis of AGL Company

Strengths
• Operates in Australia and serves many customers
• Generates gas and coal-powered plants, but also has wind, solar, and hydropower plants and is the largest
retailer of Renewable power in Australia
• Has strong market presence and is involved in natural gas generation
• Features in the ASX stock index of the top 50 Australian companies with a strong market capitalization (Dawood, Shafiullah, Anda 2020).
• Strong presence across the country

Weaknesses
• It is present in Australia only
• Govt interference often affects the operational efficiency of the company

Opportunities
• Opportunities in South Asian Countries
• Potential to expand renewable energy portfolio
• High demand for power in Australia

Threats
• A fall in Electricity prices would lead to lower profits
• The presence of much larger companies – especially Chinese – may be an entry barrier in Asian markets
• Consolidation of the power industry in Australia
• The rise in prices of coal would hamper profitability as close to half of the installed capacity is coal-based

Conclusion
AGL energy focuses strongly on the development and enhancement of economic, environmental, and social sustainability and focuses on offering high-quality products as well as services to their customers, has a great relationship with its internal and external stakeholders, is socially responsible and has a great future for the company this has made the company so popular over the years and its dignity has been maintained. Despite being a great and renowned company it has very few weaknesses; it is present in Australia only and Government interference often affects the operational efficiency of the company.

References

Beugelsdijk, S. (2010). “Strategic Human Resource Practices & Product Innovation.” Organization Studies, 29(8), 820-847.
Chapman, A. J., McLellan, B. C., & Tezuka, T. (2018). Prioritizing mitigation efforts considering co-benefits, equity, and energy justice: Fossil fuel to renewable energy transition pathways. Applied Energy, 219, 187-198.Coulter, S. & Hancké, B. (2016). A bonfire of the regulations, or business as usual? The UK labor market & the political economy of Brexit. The Political Quarterly, 87(2), pp. 148-156
Dawood, F., Shafiullah, G. M., & Anda, M. (2020). A hover view over Australia’s Hydrogen Industry in recent history: The necessity for a Hydrogen Industry Knowledge-Sharing Platform. International Journal of Hydrogen Energy.