PowerPoint Presentation

PGESCo Power Generation Engineering and Services Co.The leader Power company in the Middle East

About PGESCO.PGESCo, was establish in 1993 as a cooperation between the ministry of Electricity And energy of Egyptian government, Bechtel power corporation of the USA and commercial international Bank of Egypt (CIB) with the following Mission, purpose and principles. In 2012 Bechtel start to separate and new vision and mission has been established.PGESCo. provides engineering, procurement, project management services related to the design of electric power generating plants of all types as well as complementary, supplementary or related services, whether locally or abroad.PGESCo is determined to maximize the utilization Of Egyptian national resources, both personnel and material. PGESCO emphasizes on realizing and enhancing local Egyptian engineering capability through extensive technology transfer programs to train national engineers in current state-of-the-art design practices.

Vision To be the Middle East premier engineering and project management companyImproving lives and making a lasting difference in the communities in which our businesses operate.We provide life cycle power solutions to enhance our customers business, whilst creating better technologies that benefit both and the environment.Customers and partners will see us as integral to their success.We will anticipate their needs and deliver on every commitment we make.People will be proud to work at PGESCo.We will create opportunitiesto achieve the extraordinary, and we will reward success.

MissionProviding safe workplaces and ensuring that the public is not harmed by company operationsIntroducing alternative unique solutions for hybrid fueling systems to help the Government to minimize fuel shortage.To lead the way in nuclear power generationTo deliver strong financial performanceto be a leader in sustainabilityTo maintain a team of high performing people.Values PGESCo values are at the heart of our operations and we believe these values set as:-Quality: Make it personal, deliver requirements first timePeople we will attract, develop and retain the best team members. We encourage open communication and will show respect for others.Integrity we are honest, fair and reliable in our day-to-day interaction with customers and fellow employeesEthics: Uncompromising integrity, honesty, and fairness are at the heart of our companySafety: Zero accidents is our unwavering goal.

PEST AnalysisPoliticalLocal : lack of decision makers results of fast turn over of government heads The international fund organizations retraction supporting MENA :Volatile political bonds that are affected easily with any small speeches from anyone due to weak external affairs ministerUnstable political situation that's may effect easily and investment with and from others Arab country

PEST AnalysisEconomicalLocal:-Egypt credit ranking/categotory has been severely affected -International Loans approvals/agreements has become very challenging-Government has become forced to accept any applied interest rates -Continuously increasing exchange rates that impacts the Initial Project cost.-Poor fuel resources availabilityMENA:-Gulf countries find such investment in Power Projects Profitable and with an attractive secured ROI.-Availability of fuel resources.

PEST AnalysisSocialThe common culture creates a heavy energy consuming life which increase the energy needs in most of our market The population in the country increases whith about 2 million each year which leads to an increasing power and energy needs in the market Politics can drive the society to boycott other countries investments in country

PEST AnalysisTechnological lack of internet technology which effected transfer database between projects Rate and developing of technology diffusion to enhance the power plant engineering

SWOT Analysis

Strengths

Good Amount of technical experts and in-house creative team with good credentialsExcellent cost competitive edge against other competitors in marketGood record of achievements in Egyptian marketBest constructability management practitioners in our team Weakness

Low experience in leading green energy projectsLow financial resourcesPolitical Unrest is causing employee concerns and unrest Unfair recruitment standard of selection influenced by relation with the ministry

SWOT Analysis

Opportunity

Competitors are slower to enter due to security concerns in some markets.Huge growing energy marketUnlimited green energy resources in our market

Threat

A lot of global companies seeks to enter the marketUnstable political situation affects relations with the neighborhood countriesConsideration of government corruption

Organization StructurePgesco. Is adopting a hybrid ( functional matrix ) structure

Overall strategy PGESCo is adopting an Analyzer generic strategy that builds on the market needs and plans against the competitor efforts in marketPGESCo is adopting a (Cash-Cow Model Portfolio) due to the high market share it has in the Egyptian market driven by high reputation and excellent cost leadership . On the other hand, PGESCo in the Arab Market is adopting an (Investment Model Portfolio) through high business growth rate to make full use of the high growing market theirStrategy PeriodFebruary 2014 to January 2016January 2016 to July 2018GoalAchieve 4 active projects target per year with total amount 10 billion $ with 21% profit margin Achieve 6 active projects target per year with total amount 14 billion $ with 23% profit margin

Corporate Strategy (ies)GrowthConcentration : horizontal geographical GrowthDiversification : concentric ( related ) Business StrategyCost Leader Ship to penetrate the Local market through competitive pricesCost Leader Ship sustaining same competitive prices Functional StrategiesHR Department

Target recruit 1500 employees Training matrix including tech. training target 350 employees Establish a New salary scale plus compensation and befits compare to compotator Reduce the hiring of consulting level HR Department

Target recruit 2000 employees Training matrix including tech. training target 500 employees

Organization Behavior Models ( OB )

Supportive model :Where the team leader is transferring knowledge and giving support Organization culture Models ( OC )

Leadership and Enriched culture :

Where the team leader coaching team members by following coaching hour approach

Another important element to support our culture which the best leader awardManagement of change as an implementation challenge The challenge was a conflict between PGESCO Strategy and BECHTEL Strategy which was preventing PGESCO to penetrate MENA markets.After BECHTEL separation, PGESCo challenged to penetrate MENA markets through Radical organizational change.The formula applied for this change (Gleichers Formula)D x V x F > RD : Dissatisfaction from the limited opportunities of new projects in EGYPT.V : Vision to target the MENA markets which will enhance the career path for the employees with better opportunities for vertical overseas experience F : First step by signing new contracts in IRAQ and LYBYAEvaluation ProcessEvaluation Tool : Metrics & KPIsMetricKPIWeightTargetScoreTotalContractNo. of Contracts Awarded20%475%15%Total Contract Values20%10 B$80%16%Safety

No. of Accident30%3133%40%QualityCompletions on Time

15%100%75%11.25%Completions in Budget15%

100%80%12%Total100%94.25%

Thanks for your time

Prepared by SHARK Team

Ahmed abo Rayaahmed Hassan Hany A. RahimHesham El-GbalyMohamed KareemRami El-Ktatny