Evaluation Of The Strategy Of China Southern Power Grid Co., Ltd.

Generally, this paper is aiming at the study on the strategy of the electric power nature monopoly company under the condition of industry restructuring and deregulation. Since 1980s', many country have been restructuring the nature monopoly industry to introduce competition. The structure of the property right and industry had changed a lot, that the centralized vertical integration industry structure was separated horizontally to introducing competition in those departments where hold potential competition. As the typical nature monopoly industry, the electric power industry had experienced the industry restructuring and deregulation. In 2002, Chinese government issued the plan of electric power industry restructuring, in which State Power Corporation would be separated into two transmitting & distributing companies, five generating companies and other four companies. The competition would be introduced among generating companies and transmitting & distributing companies remain the nature monopoly position. The regulation institute was constituted.The ultimate destination of the electric power industry restructuring is maximizing the interest of the society and the public. Whether it achieve the destination depends on the operational effectiveness of the new company. The new company needs to operate different from the rival, that is to say, formulate the strategy to compete. This paper analyzes the political, economic, cultural and industrial competition environment of China Southern Power Grid Co., Ltd. (abbr. CSG) and the particularity of the nature monopoly company, concludes that the strategy of CSG. The paper also considers that CSG will create competitive advantage in core business focused low cost. In corporate-level strategy, the company should adopt diversification strategy and operate internationally.This paper also evaluate the implementation of the strategy, make suggestions about the strategic management, strategic control, strategic budget and performance evaluation of CSG.. Through benchmarking, CSG will derive the key performance index from the organization's vision and strategy. Then CSG adopt the balance-score-card to evaluate the performance in order to insure the consistence between strategy and operation.In the face of variational global environment and legal and political environment, the nature monopoly company needs to be active to study the change, formulate the appropriate strategy to improve the operational effectiveness.