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AGL ENERGY Table of Contents Introduction3 Analysis3 Question 1.3 Strategy formation3 Question 2.4 Corporate Level Strategy4 Question 3.4 Business Level Strategy4 Question 4.6 International Strategy6 Question 5.7 Business Ethics and CSR7 Conclusion7 References9 Introduction AGL Energy is an Australian company which deal in generation of gas and electricity for the purpose of commercial and residential usage. It was founded in the year 1837 and supplied gas for lighting the street lamp of Sydney. The company produces almost 85% of the energy from burning of coal. This analysis will help us to know if AGL Energy is performing above the benchmark and are able to achieve the objectives. Analysis Traditionally, the strategies failed as ground-breaking ideas were not generated and implemented by the companies. The principles of strategy formation which are used by the companies are inclusiveness, mental wellbeing, simple policies, ideation and culture of mutuality (Georges, Romme and Barrett 2010). Comment by Gareth Eldridge: & Question 1. Strategy formation The strategies of AGL Energy are based on three priorities which are growth, transformation and social license for operating with sustainability. In terms of growth AGL Energy focuses on enhancing the existing products by delivering high-level performance and creating values for the customers (AGL 2020). Secondly, it plans to progress and develop the core energy market through innovation. Therefore, AGL’s strategy formation adopts the environmental transformation and implementation of strategies in the strategic planning process (Akinyele 2007). Reducing the amount of carbon footprints and carbon emissions is also a strategy of AGL towards sustainability. AGL is an innovative organization at its core and should be able to implement disruptive technologies which are essential for digital transformation (Bhanda and Taylor 2021). Carbon credit is considered as a direct investment towards building a low-carbon society. It aims to reduce greenhouse gases and keep the temperature stable, boost crop yield and biodiversity (Gold Standard 2018). Comment by Gareth Eldridge: Rephrase for clarityComment by Gareth Eldridge: All supporting sentences need citation.Comment by Gareth Eldridge: Use linking words in the supporting sentences to show how the ideas connect and are relevant.Comment by Gareth Eldridge: No comma for Harvard. Remove from all citationsComment by Gareth Eldridge: This is only half a sentence. You need to finish it. Question 2. Corporate Level Strategy The corporate level strategy of AGL is focused on the objectives towards growth and its transformation. In order to achieve this the customer services in AGL Energy aims to grow and transform itself by achieving organic as well as inorganic growth. AGL acquired Click Energy through which will serve 215000 customers. They acquired Epho and Solgen for solar energy solutions, installation of 850 MW of grid which is powered by battery and thermal generation capacity of Australia by 2024. A 250 MW of battery constructed at the Torrens Island will begin its construction process.Comment by Gareth Eldridge: A body paragraph should use the following ‘burger’ structure:1. TOPIC SENTENCE: State your point directly and make sure it links directly to the question and the heading if there is one. Do not use citation. Useful phrases might be “One major problem is…”, “Another significant cause of… is…”, “One reason that…”.2. SUPPORTING SENTENCES: This is the information that comes from your research and you use it to prove your topic sentence. Add clarification and extra details. Give examples and reasons. Answer questions such as “How?”, “Why?”, “Which?” etc.All the ideas must link together LOGICALLY and not jump around (this is called ‘unity’ or ‘coherence’). Join all the ideas together clearly using linking phrases “Moreover, Additionally, Hence” etc. (this is called cohesion).EVERY supporting sentence needs in-text citation (author surname + year) or a continuation phrase “He adds that”, “They further state that” etc. Do not repeat the same citation concurrently – use a continuation phrase instead.3. CONCLUDING COMMENT: Paraphrase the topic sentence and then extend it with your own deduction based on your reading. What did you learn? Why is your topic sentence true? Do not use citation here as this is your chance to add your own voice. The latest corporate level strategy which was announced by AGL Energy is their intent to go for demerger. The corporate level strategies implemented by organizations help in understanding the economic opportunities such as demerger (Schommer et al. 2019). Through this process AGL will be creating two companies which will create new future for Australia and will help in the transition of the energy system in Australia. The two industries are AGL Australia, used for storing large portfolio renewable assets, and Accel Energy, the largest electricity generator of Australia delivering low-cost electricity (AGL 2022). This is a diversification strategy of AGL Energy which helps the company to spend the additional resources for company’s economic usage (Akewushola 2015). Decarbonization will help to provide clean energy to the customers. Using electricity for running cars instead of gasoline and diesel helps in building clean electricity (Quigley 2019). Demerger of AGL Energy will help in corporate restructuring and prevent acquisition, acquire more capital and create a separate entity for smooth management of the business (Kenton 2021). Comment by Gareth Eldridge: This sentence is too short so join it to the previous or next sentence. Comment by Gareth Eldridge: A body paragraph should use the following ‘burger’ structure:1. TOPIC SENTENCE: State your point directly and make sure it links directly to the question and the heading if there is one. Do not use citation. Useful phrases might be “One major problem is…”, “Another significant cause of… is…”, “One reason that…”.2. SUPPORTING SENTENCES: This is the information that comes from your research and you use it to prove your topic sentence. Add clarification and extra details. Give examples and reasons. Answer questions such as “How?”, “Why?”, “Which?” etc.All the ideas must link together LOGICALLY and not jump around (this is called ‘unity’ or ‘coherence’). Join all the ideas together clearly using linking phrases “Moreover, Additionally, Hence” etc. (this is called cohesion).EVERY supporting sentence needs in-text citation (author surname + year) or a continuation phrase “He adds that”, “They further state that” etc. Do not repeat the same citation concurrently – use a continuation phrase instead.3. CONCLUDING COMMENT: Paraphrase the topic sentence and then extend it with your own deduction based on your reading. What did you learn? Why is your topic sentence true? Do not use citation here as this is your chance to add your own voice. Question 3. Business Level Strategy The business-level strategy of AGL Energy which is targeted towards achieving future growth, transformation and social license for achieving competitive advantages and growth in terms of market share. The business level strategy of AGL can be explained through Porter’s Generic Model. Comment by Gareth Eldridge: Are you allowed to just add images you have copied from the internet? Check the brief. If it is allowed you need to reference this. Does this image add to your argument? Porter’s Generic Model Sources: Mind Tools Business level strategy helps to determine the process for utilizing the resources for manufacturing of products in comparison to competitors (Hatten et al. 1978). According to the Porter’s Generic strategies it can be observed that AGL Energy is focused on delivering a low-cost and differentiated electricity product to the customers in Australia. There are two electricity companies which are operational in Australia. These are the Energy Australia and another is AGL Energy. In South Australia, the power bill price for Energy Australia is $1722 a year while that of AGL Energy is $1575 per year (Electricity Monster 2022). Hence, the customers are able to save atleast $147 annually by purchasing electricity from AGL Energy. But in terms of gas AGL Energy charges slightly more than Energy Australia annually (Ethan 2021). Therefore, it can be stated that in terms of electricity which is the main source of revenue for AGL Energy, is a cost leader. They are able to provide high-quality and clean electricity to the customers in Australia by charging a price lower than the competitors (AGL 2022). Thus, it is through business level strategy which have a positive relationship with the performance of the company (Andrews et al. 2006). Comment by Gareth Eldridge: For whom? Where did you get this from?Comment by Gareth Eldridge: All supporting sentences need citation or a continuation phrase. They have structured a common platform which helped in meeting the internal and customers requirement. They have consolidated 50 business websites under on platform which meets all the needs of customers and the internal stakeholders along with introduction of cloud technologies. This new technology offers the customers a 24-month energy management planning along with customized report. This helps to efficiently manage the consumption of energy. They optimized the mobile services enabling the customers to pay the bills online (James 2015). Thus, it can be stated that AGL is emphasizing on the product differentiation strategy by delivering low-cost electricity through digitalization. This low-cost strategy of AGL will help them to acquire mass customers throughout Australia. Hence, through the differentiation strategy, company is able to distribute values to its customers based on uniqueness (Porter 1985). Question 4. International Strategy Management of the risks are essential for any organization and hence based on this concept, AGL evaluates all the operational and financial activities for recognizing the material risks associated with the business and aligning it with the ISO 31000. Thus, this strategy will help AGL to mitigate as well as lower the risks of the company (AGL 2021). Risk management is considered as one of the primary areas of the project management body of knowledge (Larson & Gray 2013). Thus, during international expansion by AGL there will be numerous risks. It is risk identification which needs to be integrated into all the methods of the project and help to identify the extra risks as well reduce the unknowns (Kendrick 2015). Comment by Gareth Eldridge: Topic sentence is too short. Extend it. Maybe link it to the next sentence. Further, the company is currently operating only in Australia. It is present in states such as New South Wales, Queensland, South Australia and Victoria. Their international presence is yet unknown. Yet the company has planned for reducing the international barriers for import and exports of electricity and natural gas. Their strategy towards decarbonization by delivering clean and renewable forms of energy to the customers (AGL 2020). The strategies which can be adopted by AGL Energy for going international are structuring policies which will remove the regulatory and administrative barriers. It is through international strategies which will enhance the performance of the multinational organization with respect to deployment of the specialized assets such as technology, products, knowhow and various practices from the domestic country to the host nations (Zaheer, 1995). The best way in which AGL Energy can establish their international presence is by creating a new data power center in New Zealand which will produce and delivery purely renewable form of energy (Clancy 2018). Comment by Gareth Eldridge: Please refer to previous feedback I have given you.Burger structureComma use in citationApply this