Canada Utilities Report

This report provides a comprehensive analysis of Canada Utilities Limited, an Alberta-based energy company. It begins with an overview of the company, its resources, capabilities, and competitive advantages. A PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors impacting the company. Porter's Five Forces framework is applied to assess the competitive landscape, including threats from new entrants, substitutes, buyer and supplier power, and competitive rivalry. The report concludes with an examination of Canada Utilities' strategic approach, focusing on growth, innovation, and financial strength. The analysis highlights the company's efforts to build strong community relationships, pursue acquisitions, and deliver long-term value to shareholders. The report utilizes information from various sources, including Bloomberg, Cision, and the company's own website and annual reports.

Running head: REPORT
Management
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1REPORT
Contents
Introduction..............................................................................................................................2
Overview of the company.....................................................................................................2
Discussion................................................................................................................................2
Resources, capabilities and competitive advantage of Canada Utilities..............................2
PESTLE Analysis.................................................................................................................3
Porter’s Generic Strategic....................................................................................................4
Strategic approach of Canada Utilities.................................................................................5
Conclusion...............................................................................................................................5
References...............................................................................................................................6

2REPORT
Introduction
Overview of the company
Canada Utilities Limited is an Alberta based company with an asset of $21 billion
employing 5,200 individuals. It is an ATCO company which is a diversified global business
corporation providing service excellence as well as innovative business solutions. Canada
Utilities works in the field of pipeline and liquids, electricity, logistics and operation
management, workforce housing, distribution as well as infrastructure development and
retail energy. The company is trying to find out strategic alternatives for the generation of
electricity in Canada and it is constantly evaluating and optimizing the different business
portfolios (Canada Utilities Limited, 2017).
Discussion
Resources, capabilities and competitive advantage of Canada Utilities
The gas and the electric are the main resources of Canada Utilities. The organisation has
increased double in size when it has merged with other international organisation in the field
of electricity generation and gas. Canada Utilities has also tied contract with other leading
contractors of technical services and this has increased its assets as well as other related
facilities. Moreover, there were mergers with the subsidiary gas agencies and this has led to
the development of high-pressure pipelines in the rural and the urban areas. The company
has also aimed to replace the iron and steel mains and cast iron by 2020. The blue flame
kitchen which is expected to provide cooking tips; recipe and safety information to the
household is an important resource of Canada Utilities. The company has expanded to a
large customer segment and it is trying to capture new customers every day (Cision, 2018).
The support of the employees has helped in the expansion and the development of better
competitive strategies and thus there are different series of leadership that has made it
easier to undertake the leadership process. The employees of Canada Utilities have
provided enormous opportunities to develop and capture through the evolving as well as the
technological landscape. The business opportunities related to low carbon generation,
energy service as well as infrastructure development are considered to play a vital role in the
development and growth of the company. The customers of Canada Utilities are also
considered to be very energetic and thus they play a more active role in enhancing the
performance of the organisation (Bloomberg, 2018).

3REPORT
PESTLE Analysis
Political: Canada maintains a good relationship with the other powerful nation such as
France, USA and UK. This has helped in the development of better political stability and
Canada is considered a good place for the development of electricity and gas generation
organisation and this will be better for Canada Utilities. The political environment of Canada
is suitable for the growth of the international portfolio and this has played a vital role in
shaping the landscape of Canada (SmallCap Power, 2018).
Economic: Canada is considered to be the 10th largest economy in the world and the
company has signed Free Trade Agreement with countries. The country is also the member
of OECD and WTO and thus it has become easier to export the goods and services to other
countries. Canada Utilities has made a better investment in the capital infrastructure and this
has contributed to the capital growth of Canada.
Social: The Company has also engaged in the public engagement process and this
has made it easier to conduct face to face meetings with the indigenous communities and
the local people of the country. This will make it easier to build a better relationship with the
community members and thus it will help in the process of modernisation. Canada is also
suitable for the growth and innovation that involves new technologies and this has helped in
the development of distinct product portfolio. The Canadian customers are confident about
the sustainability that is provided by Canada Utilities and this has improved the customers of
the company (SmallCap Power, 2018).
Technological: There is the provision of public and private investment and this has
helped the organisation to improve accordingly. The company is moving with the changing
landscape and the development of improved technologies and this are preferred by the
people of Canada. Canada Utilities is also playing a vital role in the development of energy
infrastructure and this has helped in the long term investment program that is necessary to
diversify and expand the asset base.
Legal: The people of Canada keep a track of the record of dividend growth and this
has made it easier for Canada Utilities to develop their earnings. The total adjusted earnings
have been increased and managed and thus it ensures that there is adequate financial
capacity that is important to provide credit ratings. Moreover, there are certain rules and
regulations that have to be followed by Canada Utilities in the generation of electricity and
gas.
Environmental: Canada has invested in different ways in order to reduce the diesel
generated power and also to reduce the emission of greenhouse gases. The country has

4REPORT
signed a memorandum with Yukon and other partners for the development of renewable
energy as well as battery storage solutions. This will provide benefit to the development of
Canada Utilities. On the other hand, this will also help Canada Utilities to become a direct
provider of the local energy sector and it will help to control the development of renewable
energy accordingly. There is the provision of partnership for clean water and this will provide
better evidence to support the community accordingly (Funding Universe, 2018).
Porter’s Generic Strategic
The threat of New Entrants: There is a huge capital requirement in the Utility industry of
Canada and it is necessary to improve the investment on R&D that will boost up the process
of innovation. This will help in providing a competitive advantage and there are provisions for
the increase in the internal competition in this particular industry. The volatility in this industry
has made it difficult to compete with the other competitors. There is the economics of scale
and the national, as well as international law, has posed a restriction on Canada Utilities.
The threat of Substitutes: There are different alternatives to oil and gas pipelines and
thus it can replace the amount of hydrocarbon that is being supplied by Canada Utilities.
Moreover, a large amount of investment is made is R&D and there are different types of
procedures involved in the domination of the global energy mix (Canada Utilities Limited,
2018).
Bargaining Power of the buyers: The bargaining power of the buyers in this particular
industry is considered to be relatively small and the buyers are more interested in
purchasing quality products. There are different benchmarks that determine the price of
products that are being supplied by Canada Utilities and thus it affects the quality of the
products.
Bargaining power of the suppliers: There are different suppliers in the utility industry
and thus it is difficult to analyse the value chain process. The ability of different companies to
affect the prices of raw materials used by the organisation is very high and there is the
possibility of a greater level of investment in this sector. There is the huge cost of production
involved in carrying out the production process accordingly.
The threat of Competitive Rivalry: There are many competitors of Canada Utilities such
as Toronto Hydro, Hydro One, Duke Energy, Florida Power and thus it has become
challenging for the organisation to sustain in such a competitive environment. Canada
Utilities must try to manage the resources accordingly and compete in this industry (Canada
Utilities Limited, 2018).

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Strategic approach of Canada Utilities
Growth, innovation and the financial strength will provide the basis for foundation and this
will help in the long-term development and growth of the organisation. It is the responsibility
of the organisation to expand the market lines and the other areas of business and thus it
will offer better opportunities to the customers. It will also help in the development of
integrated solutions so that it will be easier to fulfil the needs. There are different strategic
imperatives that have helped in the operational excellence and the employees as well as the
customers are privileged to serve the people around the world (Canada Utilities Limited,
2018).
Canada Utilities has the provision of the better work environment and the employees are
always encouraged to take creative as well as innovative approaches so that it becomes
easier to fulfil the needs of the customers. This will help in the research and development
process and thus it will be easier to differentiate from the competitors. Canada Utilities has
also reviewed their assets and this will help in the growth and redeployment of the proceeds
in the organisation. The outlook of the business depends on the opportunities that are
available in the local market of Canada (Canada Utilities Limited, 2018). The company is
also trying to manage better and safe working environment for the employees who are
involved in the provision of a timely supply of goods as well as services.
Conclusion
Therefore, it can be said that Canada Utilities is trying to maintain a collaborative and
respectful approach and this has made it easier to tie positive relationships with the
community leaders. It has helped in the growth and development of economic and social
contracts and thus it will benefit the organisation to a large extent. The company has
pursued development as well as acquisition and this will help in the provision of long-term
values to the shareholders.

6REPORT
References
Bloomberg. (2018). Retrieved from
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=873742
Canada Utilities Limited (2018). Retrieved from
http://www.canadianutilities.com/Investors/Our-Strategies
Canada Utilities Limited. (2017). Annual Report.
Cision. (2018). Retrieved from https://www.newswire.ca/news-releases/responding-to-
climate-change-and-other-regulatory-challenges-is-top-concern-faced-by-canadian-
utilities-sector-pwc-survey-537783831.html
Funding Universe. (2018). Retrieved from http://www.fundinguniverse.com/company-
histories/canadian-utilities-limited-history/
SmallCap Power (2018). Retrieved from https://smallcappower.com/top-stories/canadian-
utilities-stocks-natural-gas/