MG309 STRATEGIC MANAGEMENT

ASSESSMENT 2: STRATEGIC PLAN REPORT

EFL 3-YEAR PLAN

Name: Ateca Talei Tikinivono

Student ID: S11187750

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Contents
EXCUTIVE SUMMARY..........................................................................................................................6
1.0 COMPANY OVERVIEW.............................................................................................................7
1.1 Vision Statement..............................................................................................................................7
1.2 Mission Statement............................................................................................................................7
1.3 Core Values......................................................................................................................................7
1.4 Background of the Company..........................................................................................................8
1.5 Product or Service...........................................................................................................................9
1.6 Target Market................................................................................................................................10
2.0 EXTERNAL ANALYSIS..................................................................................................................11
2.1The General/ Macro-environment.................................................................................................11
1. Political Factors........................................................................................................................11
2. Economic Factors......................................................................................................................11
3. Social Factors............................................................................................................................11
4. Technological Factors...............................................................................................................11
5. Legal and Environment Factors.................................................................................................11
2.2 Industry Environment (5 Potters Model).....................................................................................12
1. Threats of new Entrants.............................................................................................................12
2. Bargaining Power of Suppliers..................................................................................................12
3. Bargaining Power of Buyers......................................................................................................12
4. Threats of Substitute Product.....................................................................................................12
5. Intensity of Rivalry among Competing Firms............................................................................12
2.3 Competitive Environment.............................................................................................................12
Opportunities.....................................................................................................................................13
Threats...............................................................................................................................................13
3.0 INTERNAL ANALYSIS...................................................................................................................14
3.1 Company Resource........................................................................................................................14
1. Uncertainty................................................................................................................................14
2. Complexity.................................................................................................................................14
3. Interorganizational Conflict......................................................................................................14
3.3 Core Competencies..................................................................................................................15
1. Valuable Capabilities................................................................................................................15

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 2. Rare Capabilities.......................................................................................................................15
3. Costly to Imitate.........................................................................................................................15
4. Non-Substitutable Capabilities..................................................................................................15
Value Chain Analysis......................................................................................................................16
3.3 Competitive Advantage...........................................................................................................16
4.0 COMPANY STRATEGIC GOALS AND ACTIONS...............................................................17
4.1 Action Plan............................................................................................................................18
4.3 Company’s Organization Structure and Leadership....................................................................20
...........................................................................................................................................................21
4.4 Strategy Evaluation.....................................................................................................................21
5.0 CONCLUSION..................................................................................................................................22
6.0 REFERENCES..................................................................................................................................23
 7.0 APPENDIX................................................................................................................................24
..................................................................................................................................................................24

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 EXCUTIVE SUMMARY

The majority of Fijian households receive their electricity from Energy Fiji Limited (EFL),
which is the nation's main electrical supplier. The objective of EFL is to increase the areas of Fiji
where it provides energy. EFL has adopted technical innovations in recent years that have raised
the caliber of its offerings to the general population. Notably, EFL provides some of the South
Pacific region's most reasonable electricity costs.
Considering difficulties like the Covid-19 epidemic, EFL has persisted in moving forward and
finishing key projects across the nation. The business places a strong emphasis on teamwork,
understanding the benefits of cooperating closely with its clients, other companies, and its highly
qualified and specialized workers. This study will look deeper into a number of EFL activities.

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 1.0 COMPANY OVERVIEW

1.1 Vision Statement

 Energizing our nation
1.2 Mission Statement

 Is to provide a clean and affordable energy solution for Fiji with at least 90% of the
energy requirements through renewable sources by 2035

1.3 Core Values

 Customer focus
 Honesty
 Courage to do what’s right for EFL
 Team Work
 Individual Accountability
 Transparency
 Innovativeness
 Compliance

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1.4 Background of the Company

The Electricity Act of 1996’s provisions were used to establish and formally enact Energy Fiji
Limited (EFL), formerly known as the Fiji Electricity Authority. On August 1stof that year, it
started operating. According to the Electricity Act, EFL’s duties and obligations are largely
focused on achieving the core goal of giving the people of Fiji a dependable and affordable
power supply while uploading high standards of quality. Fiji, consistent tariff rates are applied to
all consumer groups to ensure affordability across various socioeconomic categories. These rates
are regulated and set by the Fijian Competition and Consumer Commission (FCCC), which is
also responsible for guaranteeing a reasonable return for shareholders. EFL reviews these tariffs
on a regular basis.
EFL had been in charge of implementing the Electricity Act and related laws, establishing
industry standards, accrediting electricians, and issuing licenses to suppliers to conduct business
in particular regions. Nevertheless, the FCCC assumed the regulator's responsibilities on
September 30, 2019, after the Electricity Act of 2017 was published in the official gazette.
However, EFL and the FCCC have a Memorandum of Agreement (MOA) that allows EFL to
carry out some regulatory duties until further notice.
EFL was at first in charge of implementing the Electricity Act and related laws, establishing
industry standards, accrediting electricians, and issuing licenses to suppliers to conduct business
in particular regions. Nevertheless, the FCCC assumed the regulator's responsibilities on
September 30, 2019, after the Electricity Act of 2017 was published in the official gazette.
However, EFL and the FCCC have a Memorandum of Agreement (MOA) that allows EFL to
carry out some regulatory duties until further notice.
The Fiji Electricity Authority (FEA) underwent corporatization on April 16th, 2018, and changed
its name to Energy Fiji Limited (EFL), a publicly listed business formed under the Companies
Act. EFL was also named as the FEA's successor organization. A major goal of this
corporatization was to promote the growth of Fiji's capital market by allowing Fijians to profit
economically from the organization and by listing the newly corporatized business on the South
Pacific Stock Exchange. The updated Electricity Act of 2017 was approved by Parliament in
March of that year, but it didn't go into force until it was gazette on October 1st, 2019.

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1.5 Product or Service
Serving Viti Levu, Vanua Levu, and Ovalau, Energy Fiji Limited (EFL) is the sole electricity
supplier for Fiji. EFL is continually looking for ways to improve and expand the scope of its
nationwide power delivery services. To provide access to energy in rural areas that were
previously without it, the government started 70 initiatives for rural electrification in 2022. As a
result, from 205,580 consumers in 2016 to 199,020 customers in 2020, the customer base
increased by 4.53%. (Energy-Fiji-Limited-2021-2022 annualrepord pdf, 2021-2022)

[EFL ANNUAL REPORT]

The table below shows the initial and final balances of deferred income for the current fiscal
year.

SOURCE: (EFL ANNUAL REPORT2 2022)

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 1.6 Target Market
EFL also provides a web-based platform to suit clients who favor online contact, while also
making sure to help clients who might not be at ease with technology or don't have access to the
internet.
The organization provides services to a wide range of clients, including 185,689 customers, 105
significant industrial clients, 19,786 businesses, and houses of worship in addition to individual
residences. EFL is also in charge of providing power for lighting up roadways in towns and
communities.
EFL is also important because it is the main source of energy for the general populace. It offers
financial assistance to those with low incomes and others, working with the government to help
people pay their power bills. The table below shows that annual report strategic plan compared
form the 2021 annual report and the 2022 annual report.

SOURCE: (2022 ANNUAL REPORT)

Profit after Tax $58.11 M From 66.59M in 2021

Electricity sales $371.39 M From $318.91M in 2021

Dividends Declared and Paid $46.61 M From $184.73M in 2021
Total Loans $166.68 M From $184.73M in 2021
Fuel Cost $138.29 M From $77.76M in 2021
Number of Employees 855 From 877 in 2021
Shareholder Value $951.56 M From $946.08M in 2021
Total electricity produced 1,081,461 From 937,019 MWh in 2021
MWh
Total Asset $1.52 B From $1.50B in 2021
Powe Line Route 11,546.31 km From 11,348.91 kM in 2021
Total New Connections 6,645 new From 6,314 in 2021
Connections
Total Customers 214,628 From 210,320 in 2021

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 2.0 EXTERNAL ANALYSIS
All external elements that have an impact on a business' operations are referred to as the external
environment. In modern business practices, examining the external environment is intimately
related to managing the firm on a daily basis. This integration is a result of how intense, intricate,
and unpredictable external events are that have an impact on business operations. For instance,
the COVID-19 epidemic has had a huge influence on many firms, creating financial difficulties
for many commercial enterprises.

2.1The General/ Macro-environment

1. Political Factors
The Company Act, not the Public Enterprise Act or the Electricity Act, has jurisdiction over the
company's governance.

2. Economic Factors
The nation has previously been severely damaged by cyclone-related natural disasters,
necessitating expensive repairs on the part of the firm. The COVID-19 epidemic, however, has
created new difficulties because the government has enacted border closures and curfews in an
effort to stop the virus' spread, which has led to company closures and an increase in
unemployment. Due to this circumstance, EFL's sales of energy have decreased in comparison to
other years, with observable effects on the national economy.

3. Social Factors
Regarding highly qualified, licensed, and specialized experts to join the EFL team, Energy Fiji
Limited has vacancies. This program intends to improve company operations and make it easier
for the people of the country to receive electrical energy in an efficient and effective manner.

4. Technological Factors
One of the measures the organization has taken to improve its structure is the creation of a
comprehensive web platform that compiles all pertinent data about EFL. This project aims to
simplify the online bill payment procedure and cater to clients who prefer online interactions.

5. Legal and Environment Factors

The company's operations have been impacted by the increase in fuel prices, especially in terms
of fuel expenditures related to running generators to produce hydroelectric electricity.

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2.2 Industry Environment (5 Potters Model)

1. Threats of new Entrants

The fact that EFL is the only power provider in the country, the entry of new businesses with
competitive pricing into the electricity supply market poses a serious threat.

2. Bargaining Power of Suppliers

On Ovalau and the two main islands, Energy Fiji Limited has a monopoly as the only supplier of
hydroelectric power. They have the power to change rates without facing any opposition because
they are the only provider in this situation, which could result in more money for the business. A
smaller company, the Department of Energy, provides solar power services and caters to
particular government buildings across the nation.

3. Bargaining Power of Buyers

A staggering 90% of customers have stated that they want EFL to supply electricity to the whole
country. The customer base has experienced a significant increase, as seen in EFL's annual
reports for 2019 and 2020. This demonstrates the significant influence that the company's
consumers have when it comes to making cost-effective purchases. Additionally, by giving
consumers the option to select tariffs depending on their income levels, the government's
approach of enforcing uniform, income-dependent tariffs empower consumers.

4. Threats of Substitute Product

Due to its monopoly on the nation's electricity supply, the corporation has not been impacted by
the lack of competitors.

5. Intensity of Rivalry among Competing Firms

There doesn't seem any kind of competition between competitor companies in the electricity
supply sector of Fiji. All homes in Fiji now have access to EFL's power supply services, which
were recently expanded.

2.3 Competitive Environment

The majority of the population receives power from Energy Fiji Limited, a market monopolist. A
smaller, supplemental source is the Department of Energy and Solar Power

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2.4 Key Opportunities and Threats

Opportunities
The business has continued to operate, and by increasing the capacity of substations to satisfy
customer demand, progress has been made in upgrading the EFL infrastructure network.
Substations including Denarau, Wailekutu, and Ba have seen major improvements.

Threats

The organization has several kinds of obstacles, including unfavorable weather conditions like
floods, cyclones, and storms that demand high repair and recovery costs. The COVID-19
epidemic has also interfered with the business's operations, causing project delays and
interruptions.

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 3.0 INTERNAL ANALYSIS

"An internal review helps managers find ways to improve the operations of the company."

3.1 Company Resource

1. Uncertainty
Although the corporation today contributes significantly to the economy as a power supplier, it
anticipates a different environment in the future. Numerous elements could modify the market
and potentially have an impact on the company, such as the entrance of new competitors. A shift
in customer preferences in favor of solar energy is another option.

2. Complexity
The company generates electricity using hydropower and wind power sources, with support from
two more independent suppliers, in an effort to reduce its carbon footprint. By producing energy
sustainably, the company upholds the values it promotes and protects the environment.

3. Interorganizational Conflict
It is quite important to engage in team building activities at various EFL stations and workplaces
since it gives employees the chance to discuss and work through any issues they may have had.

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 3.3 Core Competencies

1. Valuable Capabilities
"Due to the rugged surroundings, the powerful river current that originates in the highlands and
flows towards the ocean has produced electricity through a hydroelectric plant. The firm receives
power from renewable resources from Energy Fiji Limited. With its renewable energy facilities,
EFL has effectively replaced expensive diesel generators. The lowest electricity tariffs in the
South Pacific region are a result of government subsidies, which have been essential in
sustaining the company's operations.

2. Rare Capabilities
"The EFL firm powers the entire country with electricity produced by a hydroelectric dam
located at Monasvu Dam. The highland location of Monasavu allows it to serve both nearby
locals and others living further away from the dam with energy.

3. Costly to Imitate
Energy Fiji Limited has regularly provided energy to the people of Fiji, resulting in high
household satisfaction. Any potential rivals looking to offer similar services would have a
difficult time capturing a sizable market share. The business, which is governed by the
government, guarantees consumer affordability and offers subsidies to guarantee universal
access to electricity.

4. Non-Substitutable Capabilities
Because of the increasing expenses associated with raw materials, such as fuel, competitors will
have to reassess the company's decision to construct one. Consequently, opting for an alternative
product is exceedingly costly.

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 Value Chain Analysis

TECHNICAL CONSTRUCTION OPERATIONS

PUBLIC RELATION AND OHS SAFETY

REVENUE AND CUSTOMER SERVICES

REPORT

3.3Competitive Advantage
There currently exists no competitive advantage because the government won't allow other
businesses to operate in the nation.

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 4.0 COMPANY STRATEGIC GOALS AND ACTIONS
4.1 Strategic Objectives
It is specifically stated in this research that EFL is important contender in the market for
renewable energy. Additionally, the business is continuously expanding its efforts to reach
isolated locations without access to roads and actively promoting the resilience of Pacific Island
nations.
EFL has a long-term goal of replacing the current 132,000v transmission line to link with the
Viti Levu shoreline as part of the process of modernizing and transitioning the company's
transmission network to better serve the community. By 2022, this project is expected to be
finished.
Additionally, EFL is a company that strongly emphasizes energy conservation by utilizing
hydropower. The corporation has established challenging environmental targets, hoping to have
a 90% renewable energy portfolio by 2050 and ultimately aiming for 99% renewable energy.

SOURCE: (Website for EFL energy conversion)

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 4.1 Action Plan
In order to further connect its customers, Energy Fiji Limited (EFL) has implemented practical
mobile phone payment options like M-paisa and direct bank transfers. EFL has enhanced the
way it interacts with customers, especially in rural areas where prepaid services are extensively
used. This method has made paying bills easier and removed the need for clients to travel far
distances.
A complete internet platform that offers information about the company's services has also been
built by EFL.
The main goal of EFL is to offer inexpensive energy to every family with the help of a standard
rate set by the government that favors those with low incomes. The business wants to provide
services to every state and urges clients to contact their offices with any questions.

PARTICULARS GOALS DEPARTMENT OUTCOME COMPLETION

Customer Achieved 2021
Meeting the EFL guarantees that services
needs and customer needs are
desires of met.
customers
Government The government Operated by the Achieved 2021
holds a 24% stake in company
the divestment.
The construction A 132KV power Operated by the Achieved 2022
of a new route transmission line company
extending from extending from
Nadarivatu to Nadarivatu/Monasavu
Sigatoka. to Nacocolevu.

Solar systems in Providing suggestions Operated by the Achieved 2021

Tavua and Ba. or advice regarding company
the projects.
Connecting Transmission of Operated by the Achieved 2021
network from 132KV electricity company
Virara to from Virara to
Koronubu, Ba. Koronubu.

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Improving the The ongoing work Operated by the Not 2021
generators that operations were company Achieved
are still in disrupted by the
operation at impact of Covid-19.
Wailoa.
Suggests that the Operated by the Achieved 2021
Tavua and Bar project should company
solar setup proceed.

Conferences Reports must be

completed punctually
to enable effective
decision-making.

1. Corporate
plan as of
October 31st,
2021.
2. Half year plan
on the 1st of
August
3. Preparing an
unaudited
report on
August 1st
4. Annual report
as of 2019,
26/03/2022
Producers of Required to sign an Operated by Still in 2022
electricity agreement act company progress

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 4.3 Company’s Organization Structure and Leadership

The ELF Executive management team members present monthly reports and deal with both concrete and
abstract problems that the board can manage. They carried out the Board's decision.

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4.4 Strategy Evaluation
Every two years, the EFL company updates its 10-year strategy and invests resources
accordingly. Even during the COVID-19 pandemic, the company prioritizes satisfying consumer
demand while also taking precautions to protect staff welfare and uphold the caliber of its
services. The company's top priority continues to be the safety and welfare of its employees. The
business is also devoted to providing all of the country with access to electricity in the near
future.

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 5.0 CONCLUSION
To conclude, the EFL company plays a crucial role in providing the country with its primary
electricity source. It guarantees the safety of power supply to every household, with the
Monasavu dam serving as a highly important energy reservoir in the nation. Consequently, the
EFL company operates in close conjunction with the overall functioning of the country. Energy
Fiji Limited is crucial to the growth of the country and serves as more than just an energy
supplier. Fiji has been powered by its persistent dedication to providing safe, dependable, and
sustainable energy, as well as illuminating its path to a better and more affluent future. EFL will
surely be a steadfast partner in Fiji's journey toward advancement, innovation, and sustainability
in the energy sector as it continues to develop and change.

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 6.0 REFERENCES

 (Energy-Fiji-Limited-2021-2022 annualrepord pdf, 2021-2022)

 Prasad, R.D. and Raturi, A.K., 2018. Role of solar photovoltaics in future electricity
generation in Fiji. In Asia Pacific Solar Research Conference. Australian PV Institute.
(Prasad, 2018)

 Singh, S.R., 2020. An Assessment of the Hydro Potential for Viti Levu, Fiji Using GIS
Techniques. Translating the Paris Agreement into Action in the Pacific, pp.101-127.

 Metherall, N., Holland, E., Beavis, S. and Vinaka, A.M.D., 2021. Characterization of pH
variations along the Ba River in Fiji utilizing the GEF R2R framework during the 2019
sugarcane season. Environmental Monitoring and Assessment, 193(12), p.828.
 Ketchen, D.J. and Shook, C.L., 1996. The application of cluster analysis in strategic
management research: an analysis and critique. Strategic management journal, 17(6),
pp.441-458.

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 7.0 APPENDIX

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