Strategic Management: Power Company Case
Professor Gary Radine
March 24, 2020
Written By:
Lukas Plasschaert,
Ariana Vargas
David Muilenburg
Frahad Noei
, HISTORY OF POWER COMPANIES
The invention of electricity was the second industrial revolution, which helped to usher in
industrial productivity on scales. The business structure formed in the early 20th as meet the
economy of scale and reduce the unit cost by selling electricity to a more diverse set of
customers. As a result, advancing methods of equity leads the business to build new
infrastructure and extend their power plants and distribution lines over time. Industrial,
transportation, residential, and commercial sectors, and industries are the few of the primary
power grids in the United States. As the economy, population, and household growth, the
demand for electricity increase simultaneously. However, providing electricity demand in large
capacity is usually more difficult because of the cost and long lead time for the installation of
new equipment.1
The fuel is the primary source of electricity in the United States, and natural gas is one of
the main ones, which generates 34 percent of the U.S. electricity. One of the methods used to
extract gas in the U.S. is by fracking. Advancement and expansion of fracking in the past
negatively affected the environment and human health. As an example, contamination of
groundwater, especially in areas where water is already scarce in summer. Coal-power electric
plans make 30 percent followed by nuclear, 20 percent, hydroelectric, 7 percent, wind, 6percent,
and solar powered generate 1 percent of electricity in the United States. On the other hand,
research estimates that the U.S. electric power sectors create about 34 percent of the total CO2.
As a result, companies tend to move toward a cleaner, healthier, smarter, and in the mass level
much cheaper system. Furthermore, renewable energy such as solar and wind energy is growing
steadily and expected to extend in the future.2
Professor Gary Radine
March 24, 2020
Written By:
Lukas Plasschaert,
Ariana Vargas
David Muilenburg
Frahad Noei
, HISTORY OF POWER COMPANIES
The invention of electricity was the second industrial revolution, which helped to usher in
industrial productivity on scales. The business structure formed in the early 20th as meet the
economy of scale and reduce the unit cost by selling electricity to a more diverse set of
customers. As a result, advancing methods of equity leads the business to build new
infrastructure and extend their power plants and distribution lines over time. Industrial,
transportation, residential, and commercial sectors, and industries are the few of the primary
power grids in the United States. As the economy, population, and household growth, the
demand for electricity increase simultaneously. However, providing electricity demand in large
capacity is usually more difficult because of the cost and long lead time for the installation of
new equipment.1
The fuel is the primary source of electricity in the United States, and natural gas is one of
the main ones, which generates 34 percent of the U.S. electricity. One of the methods used to
extract gas in the U.S. is by fracking. Advancement and expansion of fracking in the past
negatively affected the environment and human health. As an example, contamination of
groundwater, especially in areas where water is already scarce in summer. Coal-power electric
plans make 30 percent followed by nuclear, 20 percent, hydroelectric, 7 percent, wind, 6percent,
and solar powered generate 1 percent of electricity in the United States. On the other hand,
research estimates that the U.S. electric power sectors create about 34 percent of the total CO2.
As a result, companies tend to move toward a cleaner, healthier, smarter, and in the mass level
much cheaper system. Furthermore, renewable energy such as solar and wind energy is growing
steadily and expected to extend in the future.2
