Eskom Case
Eskom Case
Background
Eskom, an electricity provider in South Africa, has recently undergone a series of changes in the way that the industry operates, including reconfiguring from a government department to a company. The company aims to be the lowest cost electricity producer in the world, and thus has implemented a Productivity Accounting focus (see Exhibit A). The company has come to a crossroad where it must decide if continuing this focus will further their new objectives.
Problems
At the root of many of Eskom’s dilemmas is the switch from a governmental agency to a company. Maximizing shareholder value does not always coincide with what is best for the country. Eskom has stated goals such as hiring 50% black South Africans, protecting the environment and electrification of 1.75 million homes. These goals are difficult to achieve when striving to be the lowest cost electricity producer in the world.
The focus on productivity lead management to create an......
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Approximate Word Count: 1029
Approximate Pages: 5 (250 words per double-spaced page)
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