Welsh Utilities Regulator: Strategies for Business Problem Resolution

This report examines the challenges faced by the Welsh Utilities Regulator, a utility service provider in Wales, focusing on its business problems and potential solutions. The report begins with an executive summary and an introduction to the organization, highlighting its commitment to growth and development. The main body of the report delves into understanding the problems, including the impact of the current bonus scheme and the external environment using PESTLE and Porter's Five Forces analyses. It then outlines the organization's objectives, such as cost reduction and customer base expansion, and proposes a plan to address the identified issues. The plan involves revising the bonus scheme and performance management criteria. The conclusion emphasizes the importance of a strategic plan to enhance sales, profitability, and customer satisfaction, advocating for a more conservative bonus policy. The report includes references to relevant academic sources.

PROPOSAL

Executive Summary
The current report will have a discussion on the various problems that are being faced by
the Welsh Utilities Regulator and what are the plans that are being framed by the company for
the purpose of effectively and efficiently dealing with the concerned problems. The organisation
deals in providing utility services within Wales, United Kingdom. It is thus quite important to
have right kind of business plan with the management of the organisation to successfully face
any sort of challenges going forward. The role of employees in the success of organisation and
how the different types of bonus schemes has affected growth of the organisation and its
profitability is also discussed in this report.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Plan to sort out the problem........................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Welsh Utilities Regulator is an organisation which deals with providing utility services to
people within Wales, The organisation has 119 employees as of now and is committed for
growth as well as development of the organisation in the longer run (Clair and Milliman, 2017
S). Thus it is quite crucial to have a future business plan that will enable Organisation to
effectively provides services to citizens within the region. Basic Utilities are very much
necessary for the purpose of having a right kind of standard of living and thus company provides
the same to its citizens in an effective as well as efficient way and thus the organisation is
providing the same in the region of Wales.
MAIN BODY
Understanding The Problem
There are around 119 employees within the Welsh Utilities Regulator and all of them had
shown satisfactory performance, but the problem has been with the bonus scheme of the
organisation, which seems to be quite liberal and does not benefits the organisation in a big way.
For understanding the problem, it is important to understand the environment and surrounding in
which the organisation operates, these are discussed as follows:
PESTLE Analysis
Political: This is the factor which is identified with the dependability of the political state of
country. The organisation operates in UK and the various
Economical factor: This is most basic factor which performs diverse exercises of association in
stipulated era. The current organisation operates in a sound economic environment and it
receives necessary funds through Welsh Assembly (Leach and Scoones, 2013).
Social: This factor manages the perspective of worker working in the association in successful
way. There are diverse parts of the association helps to perform different elements of which are
perform by the association. The organisation provides various services to the people like water
supply, electricity supply etc. The various social factors do not have much effect on the overall
health of the organisation in the region, because of the fact that organisation is in the business of
providing some basic necessities to the citizen on which social factors does not matter much.
Technological factor: This factor is manages the usage of various sorts of innovation keeping in
mind the end goal to keep up the adequacy of association (wart and Kinnie, 2013). This consist
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to be the most essential part of research work as it plays important role in growth and
development of firm. In this modern competition is so high at market place and organisations are
widely concern on applying new and innovative technologies in respect to attaining high growth
and success at market area. It is necessary for firm or its higher authority to provide training to
their new as well as existing employees as to providing them appropriate knowledge about the
technologies which are used at work place. The major focused area of small as well as large
business firm is to adopt new and advance technologies as to attaining higher competitive edge
within the market as to providing high competition to their rivals.
Legal factor : This factor is worried about satisfying the distinctive guidelines and control made
by the administration within the country. The Organisation has to face stringent regulatory
frameworks laid down by the government and thus it becomes even more important to take care
of all the legal regulatory frameworks that prevails within the region. Legal regulations have a
direct impact on the overall workings of organisation and strategies are also framed keeping in
mind the various types of legal bindings that are their within the environment.
Environmental : This factor is identified with the distinctive sorts of condition of association in
compelling way. There are different elements which are identified with the outer inward
condition of association.
Porter five forces Model
It is the devices for breaking down rivalry of the business it attracts the mechanical association to
drive the five powers which decide the aggressive force in the commercial centre.
Threats of new entrants: This power decide that it is so natural to enter a specific mechanical.
On the off chance that a mechanical is likelihood of the association.
Bargaining power of suppliers: Solid dealing power enables providers to offer higher evaluated
or low quality crude materials to their purchaser (Goyal, 2012).
Bargaining power of buyers: Purchasers have the ability to request bring down cost or higher
items quality from industry makers when their haggling power is solid.
Threats of substitute: This power is particularly undermining when purchaser can without much
of a stretch locate the substitute items. There are various private players that are there in the
industry of utilities and they are providing services at a very competitive cost to the concerned
citizens. Therefore, the services of the company can be substituted at any time by the citizens of
the concerned state and may lead to loss of customer base for the organisation. Thus it is
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essential to make sure that right kind of policies are framed to retain consumers by providing
them high quality services and at a competitive prices than their peers.
Rivalry among the competitor: This Force is the principle determinant on how focused and
productivity an industry in aggressive industry need to contend forcefully for a market (Fincham,
2012).
Objectives of the Organisation
Every organisation runs on an objective that it would want to achieve in the longer run,
same is the case with current organisation it aims to full fill the objectives such as reduction in
the overall cost of operations so that profits can be made and efficiency can be maintained within
the organisation. Yet another aim would be to enhance the Customer base by providing services
to more consumers within the region (Dwyer, Stanton and Thiessen, 2013). These objectives are
discussed in detail as follows:
Cost Reduction: The organisation will try to reduce its cost by framing certain policies that will
bring efficiency within the operations and thus will lead to cost reduction. Welsh Utilities
Regulator is engaged in providing services of necessities to the citizens of Wales, thus it is quite
important to reduce the overall cost if company wants to make necessary profits, because it wont
be able to charge higher prices from the citizens due to caps which are laid down by the
government on the prices of necessities like water and electricity. Thus, the sole contributory for
the company's profits can only reduction in cost and not a increment in the prices of services.
The organisation can also reduce its cost by reducing its cost on employees that it is incurring
and at the same time making sure that business growth is maintained. This will be done by
implementing efficient strategies in an effective as well as efficient manner.
Increase in Overall Customer Base: The organisation may also takes the path of raising its
overall revenues in order to increase the profits of company in the longer run (Dolowitz, Keeley
and Medearis, 2012). The board of directors of the concerned organisation must make sure that it
raises the access of its services among general people and citizens, this can be done by adopting
an aggressive technique of expansion of the organisation and its operation.
Plan to sort out the problem
STEP 1: The WUR is providing a bonus of 35% to the employees of the organisation which is
way too higher for the company in order to make substantial operation and increasing the
efficiency of the company in the future. For solving the purpose the company need to decrease
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the amount of bonus they are paying as they are not able to meet the criteria that is required by
the government. The company was paying such an high bonus to attract the key employees
from the private sector but if they continue to do so they will face a government intervention in
the process.
STEP 2: All the WUR employees receive their full bonus in every they have worked in the
company and since the scheme of this bonus has started and the bonus that are receiving is
based on the regular objectives that they have to achieve which are not even challenging. The
company is required to make modifications and revise the terms and conditions for the payment
of bonus. The board should revise the performance management criteria so that employees are
only awarded the bonus when they performed beyond the set criteria and has added the value in
the organisation in some other way such as efficiencies, innovations etc.
CONCLUSION
Thus, It is quite clear from the above discussion that for the purpose of effectively
enhancing the overall growth of the organisation, it is extremely necessary to have a right kind of
plan that will enable the organisation to increase its sales and profitability and at the same time
deliver on customer's Expectations. The organisation shall also make necessary plan to change its
bonus schemes which is quite liberal as compared to other peers, which is costing too much for
company in the longer run. The management of the organisation should implement a more
conservative bonus policy for its employees that will be a win-win situation for both organisation
and Employees.
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REFERENCES
Books and Journals
Clair, J. and Milliman, J., 2017. Best environmental HRM practices in the US. In Greening
People (pp. 49-73). Routledge.
Swart, J. and Kinnie, N., 2013. Managing multidimensional knowledge assets: HR
configurations in professional service firms. Human Resource Management Journal.
23(2). pp.160-179.
Goyal, D.P., 2012. Business alignment and critical success factors in information systems
implementation: an empirical analysis of selected Indian organisations. International
Journal of Business Information Systems. 10(4). pp.397-416.
Fincham, R., 2012. Expert labour as a differentiated category: power, knowledge and
organisation. New Technology, Work and Employment. 27(3). pp.208-223.
Dwyer, J., Stanton, P. and Thiessen, V., 2013. Project management in health and community
services. Routledge.
Dolowitz, D., Keeley, M. and Medearis, D., 2012. Stormwater management: can we learn from
others?. Policy studies. 33(6). pp.501-521.
Leach, M. and Scoones, I., 2013. Carbon forestry in West Africa: the politics of models,
measures and verification processes. Global Environmental Change.23(5). pp.957-967.
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