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Project Proposal- Welsh Utilities Regulator

University: ITCM College London

  • Unit No: 6
  • Level: Undergraduate/College
  • Pages: 9 / Words 2289
  • Paper Type: Assignment
  • Course Code: BA5F01
  • Downloads: 635
Organization Selected : Welsh Utilities Regulator


The present report is based on the case study of WUR, a non departmental public body created through new legislation responsible for regulate gas, water, sewerage and electricity. Presently all 116 employees of enterprise are getting bonus on annual basis up to 35% of their current salary. Bonus is offer to workers when they achieve the set objective which is not much challenging. In this situation board of enterprise wants to introduce a change in performance management system so in order to improve employee's productivity and to increase profits of enterprise. PESTLE analysis and model called Porter's five force analysis is use in this report. Major finding of this report is that by cost reduction and be set more effective objectives entity can set the target set by government in time.


WUR (Welsh Utilities Regulator) is body created through a legislation that came into existence in year 2004. it is liable for regulate the gas, electricity, sewerage and water industries in Wales with the aim of promote interests of customers. 116 staff members work in WUR and receive full bonus since the scheme of bonus is started (Wysocki, R. K., 2011). One of the main aim of this scheme is to attract and retain skilled workers for a long time period. Company's Board wants to do do some modifications is the performance management approach so when employees achieve the set objectives then it add some value to the operations of WUR. For this entity can formulate and implement a plan is all given in this report.


Understand the problem

WUR is a public body which is responsible for regulate water, gas, sewerage and electricity industries in Wales in order to safeguard the short and long term interest of consumers. Performance management policy of WUR allow all staff members to get bonus up to 35% of their salary on annual basis. This policy is develop to attract skilled workers and to retain them for a long time period. Welsh Utilities Regulator face various recent failures as firm fail to achieve the targets set by government. In this situation, WUR board is concerned that should the bonus scheme become public knowledge. Bonus is offer to employees when they achieve the set objectives which are not challenging. Now board of enterprise want to do some changes performance management scheme of employees so when they achieve the set objectives then it should add some value in the operations of enterprise or should offer some benefit to the firm. With this performance of enterprise can be improve and it can meet the objectives set by enterprise. For find an effective solution and to understand that what should be done by entity, PESTLE analysis can be done by firm:

PESTLE analysis

This model help enterprise in identify and examine the events, trends and pressures that affect the decision making process and profitability of organisation. By analyse the forces of external environment manager can align the objectives of entity with these forces. Further it support in utilise the opportunity exist in market which increase customer and market share of enterprise (Cummings and Worley, 2014). The major elements that require to be consider while conduct a PESTLE analysis is given as follows:

  • Political factors: This element consists the potential political influences that affect the decisions and purchase decision of customers of enterprise. Wars, terrorism, government subsidies, import and export tariffs, elections is all come under this. To complete all business activities smoothly, it is very essential for enterprise to have a good knowledge about the political conditions of a country.
  • Economic factors:This consist current and future economic pressures that is very essential for an enterprise to consider. Major economic factors that might affect the planning and decision of an enterprise consists wage level, inflation, foreign exchange rate, employment level, taxation, and volume of money in circulation.
  • Social factors:Social elements are the one that largely affect the decision taken by a business enterprise. For get success, it is very essential for an enterprise to identify and examine the needs of consumers as this help in attract them and also support in retain them for a long time period. Main economic factors are changes take place on fashion and lifestyle of consumers, changes on buying trends, expectation of public and trends in crime (Krackhardt, 2014). WUR require to examine the economic condition and financial climate for do modification in the bonus scheme of employees.
  • Technological factors:Technology is known as the factor that affect almost every sector and the various firms that operate in it. It is very important for enterprise to use update technology because it not only help in satisfy the neds of customers but at the same time bring efficiency in business operations. As WUR wants to add some value in its all operations then entity require to use the new updated technology and should provide training to its employees so they can learn how to perform their job roles with help of new technology. Advancement in computer network and telecommunications, discovery of new resources and new methods all are the major technological factors that require to be consider by firm.
  • Legal factors:Existing and upcoming changes in legal policies and legislations require to be consider by firm while formulate strategies and take business decision. Human rights, working directives, health and safety, corporate governance and environmental responsibilities all are the major factors that require to be consider entity while analysis legal environment (Mir and Pinnington, 2014). With help of this WUR can formulate better policies and strategies and at the same time can achieve the objectives set by government.
  • Environmental factors: These elements can be analyse by enterprise during strategic planning as with this company can influence the behaviour of customers. Major elements cover under this aspect are water shortages, initiatives related with reduce wastage, pollution, impact of global warming, natural disasters and climate change.

All these are the major factors of PESTLE analysis that require to be analyse by WUR with this managers can take a better decision and at the same time can identify the opportunities exist in business environment. Another feature of this tool is that it provide a framework to respond the changes take place in business environment and with this can achieve set goals. In case if you are concern about how will you get coursework help, you can take assignment help from our professional academic writers.

Porter's five force analysis

This tool was developed by professor of Harvard Business School Michael Porter in order to examine the attractiveness of sector such as profitability and growth (O'Reilly and Tushman, 2013). Porter identified that an enterprises keep a close eye on its competitors and their actions but he encourage that various other factors are there that require to be examine by firms in order to increase their profits and sustain in market for long run. Porter's identified that five major forces are there that create competitive environment, these factors are given below under the following points:

  • Competitive rivalry: This aspect help in determine the number of rivals exist in market and also highlight their major strength. Intense rivalry serve a big threat for firm as competitors has the power to attract more customers with help of price cutting and aggressive marketing. Opposite of this less number of rivals increase profits chances of enterprise.
  • Suppliers power: This aspect highlight the how suppliers of enterprise increase their prices or how many potential supplier a firm have. When large number of suppliers present in an industry then it does not have the power to affect the position of entity (Porwal and Hewage, 2013). Opposite of this, lower number of suppliers has the power to change the actions and decision of organisation operating in specific sector.
  • Buyer power:This is another force that which explain the power remain in the hands of buyers. When enterprise deal in savvy buyers then they have more power to affect the pricing strategy of enterprise. On of the other hand when organisation enjoy a large customers base then buyers have less power to influence the pricing strategy of company.
  • Threat of substitution:Substitute of product is known as that product which has same features like company's product. When substitute of the product exist in market in which firm deal then it serve as a threat for enterprise on the opposite of this when company manufacture and offer unique products to its customers then it decrease the threat.
  • Threat of new entry: Ability of others to enter in a market is a factor that largely affect the position of entity in market. If small amount of funds are require enter in industry with high potential of growth then this serve a big threat for firm (Tsai and et. al., 2011). On the other hand when more funds are require to enter in a market then it does not serve a big threat to company.

Objective of organisation

Objective of an enterprise can be long term or can be short term that firm seek to accomplish. One of the main feature of organisational objective is that it play a big role in formulate strategies and develop policies. Attainment of enterprise objective help in achieve the final objective. For complete the project in given time period WUR can also set objective. These objectives is given below under the following points:

  • Reduction in cost: Funds are known as one of the most essential resource require by every enterprise to execute business activities (Turner, 2016). It is very essential for manager to formulate policies in order to reduce the cost of business activities as this bring and enhance efficiency and at the same time help in provide featured products to customers at affordable prices. One of the main objective of WUR is to decrease the cost of business so efficiency can be bring in firm's operations and it can meet the set target in effective manner.
  • Increase number of customers: It is very important for a business enterprise to manufacture and offer featured products to its customers in order to attract them and retain them for a long time period. This increase number of customers and at the same time ensure long term survival of enterprise.

Plan for sort out the problem

While carry out commercial operations every enterprise face some kind of issues and it is very important for manager to deal with that issue in an effective manner so company can attain its set goal and objective. As board of WUR is facing a issue and wants to do changes in performance system of employees so in this a plan can be formulate and use by entity for this.

First step: As all employees working in WUR are getting bonus of up to 35% on their basic salary on annual basis. Bonus is given to workers when they achieve the set objectives which is not a challenging task so this does not add any value in firm's operations and only increase the cost of firm (Yang, Shieh and Tzeng, 2013). In context to this situation, firm can decrease the bonus percentage of its employees and can set challenging objectives for them so their performance can add up some efficiency and annotation at workplace. Scheme of high bonus help firm in attract and retain skilled employees but due to not so effective performance management system this is not provide any kind of benefit to firm. By do some necessary changes performance of employees can be improve.

Second step: By do modifications in the performance management system manager can encourage employees to work well and this will directly improve efficiency of business operations. In this manner WUR can achieve the set by government (Yukl, 2012). But before do any modifications is performance management system manager require to carry out research related with identify the elements that encourage employees to work well.


From the given project, it can be summarised that it is very important for manager to formulate and use an effective performance management system. With this performance of employees can be improved and they can be motivated to perform their job roles in an effective manner. Every firm set an objective and carry out various functions to achieve that objective so it is very important for manager to communicate that objective with employees so they can perform well and help entity in achieve its set objective. In this way WUR can perform well and can achieve desired outcome.


  • Cummings, T. G. and Worley, C. G., 2014. Organization development and change. Cengage learning.
  • Krackhardt, D., 2014. Graph theoretical dimensions of informal organizations. In Computational organization theory (pp. 107-130). Psychology Press.
  • Mir, F. A. and Pinnington, A. H., 2014. Exploring the value of project management: linking project management performance and project success. International journal of project management. 32(2). pp.202-217.
  • O'Reilly III, C. A. and Tushman, M. L., 2013. Organizational ambidexterity: Past, present, and future. Academy of management Perspectives. 27(4). pp.324-338.
  • Porwal, A. and Hewage, K. N., 2013. Building Information Modeling (BIM) partnering framework for public construction projects. Automation in Construction. 31. pp.204-214.
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