Propose the recommendations to the CEO of ESKOM whether they should consider restructing into a more competitive market
Answers
Answer:
Following are the recommendations for the CEO, the options are listed alongside their individual explanations:-
Explanation:
OPTION 1: No restructuring/status quo
This means that the CEO should retain the vertically integrated monopoly.
This was presented by Frans Baleni (deputy chairman of the Development Bank of Southern Africa)
Considering that Eskom is a vertically integrated, state-own entity. It has served South Africa sufficiently and provided electricity at competitive rates as well as aided the country’s economic development. So this step should just plain and simply be eradicated.
OPTION 2: There should be Shallow restructuring
This refers to status quo existing but with increased public participation in the matter.
The country should identify the key priorities and look that what needs to be done for socio-economic benefits. Thus look for an electricity sector which can ensure long-term socio-economic success.
This could lead to solved issues of inequality and affordable electricity.
And whilst keeping these goals in mind the public may also be involved in the process of ESKOM. The employees could use help from re-skilling programs.
Answer:
At the present economic scenario, there is a number of points that can be highlighted and or improvised by ESKOM. Producing electricity nowadays has now become expensive. So the company should look for much cheaper ways to produce electricity.
The company should work well to produce sustainable electricity to get an idea to cater to more number of people and household. :