Strategic Analysis and Recommendations for Trustpower Limited, NZ

This report provides a comprehensive strategic analysis of Trustpower Limited, an electricity generation and retailing company based in New Zealand. The analysis includes an overview of the company's mission, vision, and values, followed by a detailed SWOT and TOWS analysis. The SWOT analysis identifies Trustpower's strengths, such as its diverse services and financial backing, and weaknesses, including its concentration in a few areas and lack of strong strategic planning. The TOWS analysis explores strategic options based on these factors. The report also includes a RACES analysis to evaluate strategic options, and concludes with a discussion of the best strategic options for the company's future development, considering market position, competition, and opportunities in renewable energy and telecommunications.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the student
Name of the university
Author Note:

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Table of Contents
Introduction................................................................................................................................3
Mission of the company.........................................................................................................3
Vision of the company...........................................................................................................3
Values of the company...........................................................................................................3
SWOT and TOWS Table...........................................................................................................4
SWOT Table..........................................................................................................................4
TOWS Table..........................................................................................................................4
SWOT and TOWS explanation..................................................................................................6
SWOT Analysis.....................................................................................................................6
RACES Analysis....................................................................................................................7
TOWS Analysis.....................................................................................................................8
Best Strategic option..................................................................................................................9
Conclusion..................................................................................................................................9
References and Bibliographies.................................................................................................10

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Introduction
Trustpower Limited is an electricity generation and electricity retailing company that
is headquartered in Tauranga, New Zealand. Listed with the New Zealand Stock Exchange,
the company provides a number of different kinds of services that includes the likes of
Electricity, Gas services, internet communication. The company has also an established unit
for providing telecommunications link to its clients (trustpower.co.nz, 2019). The business
enterprise is one of the most reputed companies of the country and with a huge revenue of
NZD$ 947million, the company has a great market share in the New Zealand. The
management of the business unit employs more than 800 persons and its ownership structure
is mainly dominated by Infratil and Tauranga Energy consumer trust with a share of 51% and
26.8% respectively (trustpower.co.nz, 2019). On the other hand, the remaining share is
widely distributed among the other shareholders. The management of these New Zealand
based organization has been on an expansion mode since the start of 2010 which began with
the acquiring of Energy Direct in 2013 and also buying around 65% shares of King Country
Energy Limited from Nova Energy. The company has all plans to develop its business in
New Zealand in a strategic and successful manner that can be helpful for greater profitability
and success (trustpower.co.nz, 2019).
Mission of the company
The mission of the company is based on the improvement of the lives of the people in
the different areas of New Zealand where it provides service. The management also has the
purpose of providing access to the different utilities that delivers business comfort and
connectivity (trustpower.co.nz, 2019).
Vision of the company
The vision of the company provides the future direction of the company. The future
direction for the management of the company is to make Trustpower a household name
among the different areas where the company operates with the supply of a great customer
service (trustpower.co.nz, 2019). The company has also plans to supply high level of
telecommunications to the people and also has the vision to supply electricity to the irrigation
fields of New Zealand. Apart from this the management of the company aims to carry
forward a vision that will help them to play an active role in the carbon market
(trustpower.co.nz, 2019). The company also aims to grow it name through the presentation of
a friendly, famous and highly efficient customer service.
Values of the company
The values of the company are there to define the company about their real character.
It helps to define the company and its purpose (trustpower.co.nz, 2019). The company
attitudes and the friendly way they act as an organization is one of the major values. The
company embraces all the values of the business organization through the likes of the
attitudes that people embrace, as individual people and as teams. The major value of the
company lays in the fact “for what the company stands for.” The term PRIDE is used to

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define the major values of the company. PRIDE stands for Passion, Respect, Integrity,
Innovation, Delivery and Empowerment.
SWOT and TOWS Table
SWOT Table
STRENGTH OPPORTUINITES
 Large number of services
 Presence of a sound financial
backing
 Large number of customers
 Renewable energy generation and
creation of a sustainable future
 Positioning the brand for better
market share
 Targeted opportunities to the
customers from electricity only to
multi product category
WEAKNESSESS THREATS
 Concentration of the company in
only a few areas
 Absence of a strong strategic
planning
 Lack of adequate Human resource is
also a major weakness
 The presence of companies like
Contract energy, Genesis and
Meridian Energy have limited the
opportunities for the company in
New Zealand
 Volatile Wholesale Electric market
in New Zealand
 The presence of a weak
telecommunication process is a
threat for the future development of
the telecommunication business of
the organization
TOWS Table
Organization
Trustpower Limited, New
Zealand
STRENGTHS-S
1. Presence of large
number of business
services
2. Presence of a strong
financial backing
3. Presence of a large
client base
WEAKNESSESS – W
1. Concentration of the
company in only a few
areas
2. Absence of a strong
strategic planning
3. Lack of adequate
Human resource is also
a major weakness
OPPORTUNITIES-O
1. Expansion
opportunities for
the company
SO STRATEGIES
1. The presence of a
large number of
variations in the
WO STRATEGIES
1. The concentration of
the company in
selected patches of

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2. Establishing other
sources of
business
3. Creating a
sustainable future
for the
organization
services offered by
the business
organization can help
to further set their
step to opportunities
like renewable
energy
2. A strong financial
support can help the
Trustpower Brand to
gain a strong market
position. A Strong
positioning in the
market can be helpful
for the success of the
organization
3. The presence of a
large client base is
important as because
it helps the
management of the
business to target
these customers and
gain market share in
other business
activities
New Zeeland can be a
problem for
Trustpower to properly
leap forward in
development of
renewable energy. The
absence of adequate
resources here makes a
problem for the
company to address
this issues.
2. A gradually developed
market growth plan
using new businesses
can help position the
company in a better
manner
3. Appointment of new
human resources is
needed to ensure that
the management is able
to present the
customers with
multiple products of
their use
THREATS-T
1. The presence of
companies like
Contract energy,
Genesis and
Meridian Energy
have limited the
opportunities for
the company in
New Zealand
2. The absence of a
proper strategic
the organization
planning is surely
a threat to the
company
3. The presence of a
weak
ST STRATEGIES
1. The threats must be
handled in a smart
manner through the
presence of a
strategic mission that
will help the
organization provide
better services than
their competitors
2. A regular update of
the strategic vision
can help address the
issues much more
smoothly
3. Increase in the
telecommunication
WT STRATEGIES
1. The increase in the
base of the company
will help the
management to reach
out to a large number
of individuals
2. Reduction in the
volatile wholesale
electric market through
spot buying of
electricity
3. A better retention and
communication
strategy can help to
recruit a large number
of employees

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telecommunication
process is a threat
for the future
development of
the
telecommunication
business of the
organization
infrastructure
SWOT and TOWS explanation
SWOT Analysis
The SWOT analysis of Trustpower is as follows;
a. Strengths- Trustpower is one of the most reputed companies of New Zealand and
thus the company has established a name for itself in the energy sector. The
management of the business has been able to establish a number of business services
that has been a major strength of the organization (Newberry, 2015). The company
currently provides services like electricity, gas, telecommunication and internet which
can be further expanded to gain profitability. The business has been able to establish
all these services just because of a sound financial structure which has helped them to
achieve milestones in the business. The providence of these large number of services
has helped the organization to gain a large range of customers.
b. Weaknesses- In contrast to the strengths of the company, the management of the
business has identified a number of different types of the internal and external issues
that has made them weaker in comparison to the development of the business in a
proper and identified manner (Newberry, 2015). The absence of a strong strategic
planning is another weakness that can have a negative impact on the vision of the
organization to expand its operations across the country. Though there have been
some efforts from the part of the management to implement the strategies
accordingly, the absence of a concentrated effort and a fixed strategy has restricted its
success. The human resource problem is another major issue of the company as the
non-implementation of the strategies in an appropriate manner has led to the increase
in attrition amongst the employees.
c. Opportunities- According to, Carey et al. (2015) the very first opportunity to the
company is the creation of new opportunities in the form of establishing renewable
energy and making the most of it. The major demand for the renewable energy can
also provide the opportunity for the organization to create a new positioning strategy
and address the demands of the new customers as well as the existing customers.
Lastly the company can also have the opportunity to target the customers with
multiple sustainable products that will be marketed by them accordingly.
d. Threats- The weakness of the organization leads to a large number of threats for
Trustpower that makes them vulnerable to business success. The very first threat that
the company faces includes the absence of a fixed strategy that can help in its

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operational expansion. The absence of the strategy has led to companies like Contract
Energy, Genesis and Meridian Energy to gain a strong market share and surpass its
achievements (Logan et al. 2019). The absence of a proper stability in the Wholesale
Electric market of the country is a problem. It can be tackled through immediate on
spot electricity purchase. The need for a strategic planning is important as the
presence of a strategic direction can lead the organization to business success.
Another major threat being the low level infrastructure of the telecommunication
sector of the business. The development of the telecommunication sector can lead to
the success of the business in the most appropriate manner.
RACES Analysis
STRATEGIC
OPTION A-
BRAND BASED
STRATEGY
STRATEGIC
OPTION B-
DEVELOPMENT
OF A VARIED
BUSINESS
SOURCES
STRATEGIC
OPTION C-
FINANCAL
DEVELOPMENT
RESOURCES  Brand Name
is a resource
which can be
utilized to
establish
gradually in
New Zealand
 Varied
business
sources are a
resource that
can also be
utilized to
gain success
 Huge
financial
support is
also one of
the major
resources
ACCEPTABLE  The Strategy
is quiet
acceptable
 The strategy
is equally
acceptable
 Acceptable
strategy as
because
financial
strength is
necessary
COHERENT  Logical
strategy as
brand name
of
Trustpower
can be a
success for
the
organization
 Though it is
important for
the company
to gain
competitive
advantage
with different
businesses,
investing in
different
areas is quite
problematic
 Financial
stability for
the
organization
in the present
and the
future is
quite
important for
the success
of the
organization
EFFECTIVE  Trustpower
brand name
 Not too
much
 Strategy is
highly

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is quite
effective
effective in
business
organization
effective
SUSTAINABLE  Development
of brand
name is quite
sustainable
for the
organization
 Not a
sustainable
option
 Sustainable
business
strategy
BEST STRATEGY  YES  NO  YES
TOWS Analysis
The TOWS analysis is as follows;
a. SO Strategies-The SO strategies have helped define the strength based opportunities
that can be utilized by the management of Trustpower limited to develop the
organization and gain a considerable advantage of the New Zealand energy and
telecommunication market. The very first strategy of the organization will be to
develop renewable energy sources and also promote the formation of renewable
energy. The conversion of the organization from a specific sector based work to a
multitasking organization is key to a sustainable future for the enterprise (Kulkarni,
2016). The conversion of the organization and attaining a professional aim can help in
the success of the industry in a proper and efficient manner. The increase in the
positioning of the market and the promotion of the success story can help in the
success of the business.
b. WO Strategies-The WO strategies of the business is key to addressing the weakness
in a positive and scientific manner. The very first step that needs to be implemented
by the company is the formation of a healthy strategic direction and then
implementing them in the business to gain a successful recognition in the business
market. The presence of the strategic direction can help the business to ensure the
success of the organization in the most effortless manner (Aryanpur et al. 2019). The
strategical direction of the business unit can help to fix up the flawed human resource
plan. The development of a new human resource plan can thus help the management
to gain a strategical business aim and help retain the best talents of the organization.
The weaknesses of the business unit can thus be addressed by a scientific and
systematic business strategy.
c. ST Strategies- The only way to attain a leadership role is to provide better service
than the competitors and also provide unique services that can be quite important for
the organization (Aryanpur et al. 2019). The better the strategies, the better will be the
chances for the organization to gain a competitive advantage in the market.
Trustpower must also regularly update on the strategic plannings of the business to
keep an update on the different kinds of the business strategies that are being
undertaken by the other business companies and also keep an update on the new

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demands of the clients. This apart the management can also reduce the threat
possessed in the market by increasing its presence in other business sectors like
telecommunication and internet services. The increase in the scope of the business in
other sectors (Farfan & Breyer, 2017).
d. WT Strategies- The very first initiative that can be undertaken by the management of
the company is to increase the presence of the company through different strategies
like business expansion, business acquisition and many other strategies. The company
must also concentrate on the development of the business in line with a strategy that
can help them develop the business in a systematic way. The strategic business
initiative and the presence of a strong business retention policy will be key to the
success of the business in the market.
Best Strategic option
The company has been delivering on its ambition to be the organization that the
country can trust upon for keeping it energised and connected. The strategy of the business is
to provide the best values to the customers and help them to enjoy the comfort, convenience
and connectivity of the energy sector. The focus of the company to rebuild its strategic
initiative with the creation of a new and better strategy is currently the best option for the
management to develop the business in lines with the organizational objectives. The major
aim of the business organization will be to develop the renewable energy of the country. The
concentration needs to be given on the telecommunication sector more due to the rising
competition from the other major players as well as the new entrants. The most critical to the
success of the business is to develop the capability of the organization and invest in the
building of a learning culture and development of lean, scalable and agile platforms to create
a better consumer insight. The management must be able to disrupt themselves and indulge in
new innovation and strategies that can help in the success of the organization. The
development of the business in line with the expectation of the business can be really
sustainable for the development of the business in a proper manner. The progress of the
company will follow the transformation planning which can be successful for the
organization. The application of the strategy must be structured in a phased manner to gain
success in the business.
Conclusion
The report has been a reflection of the strategic development of the business as
because it helps the management to ensure business success in a proper and efficient manner.
The report has started off with a well-developed introduction where the mission, vision and
values of the company along with a brief history of the company has been provided. The
providence of these facts has helped to identify and discuss the internal and external factors
of the business organization in a proper manner. The SWOT analysis has helped identify the
strengths, weaknesses, opportunities and threats faced by Trustpower Limited in New
Zealand. The presentation off the strategic plannings has helped to develop the TOWS
analysis which is a strategic discussion of the internal analysis of the business unit. The
strategic discussion along with the business plans has helped the report more compact and

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informative. Lastly the selection of the main priority of the business to consider strategic
options has made the research more successful in nature.

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References and Bibliographies
Aryanpur, V., Atabaki, M. S., Marzband, M., Siano, P., & Ghayoumi, K. (2019). An
overview of energy planning in Iran and transition pathways towards sustainable
electricity supply sector. Renewable and Sustainable Energy Reviews, 112, 58-74.
Carey, B., Dunstall, M., McClintock, S., White, B., Bignall, G., Luketina, K., ... & Seward,
A. (2015, April). 2015 New Zealand country update. In Proceeding, World
Geothermal Congress.s
Council, T. R. (2016). Trustpower Limited Mangorei Hydroelectric Power Scheme
Monitoring Programme Annual Report 2015-2016.
Council, T. R. (2016). Trustpower Limited Patea Hydroelectric Power Scheme Monitoring
Programme Annual Report 2014-2015.
Farfan, J., & Breyer, C. (2017). Structural changes of global power generation capacity
towards sustainability and the risk of stranded investments supported by a
sustainability indicator. Journal of Cleaner Production, 141, 370-384.
Kulkarni, S. (2016). Management of Power Sector for Sustainable Development. South Asian
Journal of Management, 23(4), 212.
Logan, J. S., Arent, D. J., Zhou, S., Rose, A., Chernyakhovskiy, I., Statwick, P., ... &
Martinez-Conde del Campo, F. (2019). Ten Principles for Power Sector
Transformation in Emerging Economies (No. NREL/TP-6A20-73931). National
Renewable Energy Lab.(NREL), Golden, CO (United States).
Mora-Monge, C., Quesada, G., Gonzalez, M. E., & Davis, J. M. (2019). Trust, power and
supply chain integration in Web-enabled supply chains. Supply Chain Management:
An International Journal.
Newberry, S. (2015). Public sector reforms and sovereign debt management: Capital market
development as strategy?. Critical Perspectives on Accounting, 27, 101-117.
Plunkett, T. (2017). The Capital/Revenue Distinction, Feasibility Expenditure and
Trustpower Ltd. v. Commissioner of Inland Revenue. Auckland UL Rev., 23, 364.
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Sioshansi, F. P. (Ed.). (2016). Future of utilities-utilities of the future: how technological
innovations in distributed energy resources will reshape the electric power sector.
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media › reports › tpl24742-annual-report-
trustpower.co.nz. (2019). Retrieved 31 December 2019, from https://www.trustpower.co.nz ›
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