Centrica – Strategizing in a Multi-Utility

1. What do you think would be the principal challenges in implementing the new Centrica business model?
 Centrica poses challenges in managing an increasing number of employees, creating and developing its business model, making and executing corporate strategy and introducing an appropriate organizational structure to sustain growth in the future.
 From gas to energy to home service to financial services and motoring, challenges may arise at the home and financial services since both are into customer service. USA today is still in the state of financial crisis some people aren’t paying what they are due, even though Centrica have the home service that will guide people what to buy still they can’t control the crowd what not to buy. Offering car insurance and loans may also have challenges, people may use accidents, etc. for them to claim the insurance, some people might also use delaying tactics to not pay their loans. Proper training and approach must be given to the employees to be assigned in those jobs.

2. Is the Centrica model “aligned” with the environment that the firm is operating in? Use the ESCO Model to help you answer the question.
 First British Gas was divided into two BG plc and Centrica. Second Centrica had problems with the British Gas’s contracts and resolved it by terminating and paying the contracts. Centrica acquired The Automobile Association and offered car insurance, driving lessons, breakdown cover, loans, motoring advice and other services. In September 1996, acquired Goldfish credit card and became UK’s seventh largest credit card. Also acquired One.Tel with partnership of Cable & wireless, Vodafone and Torch Telecom. Went to International market Canada and North America’s Luminus, Energy America and Direct Energy.
 Centrica’s environment circles around Gas, Electricity and LPG.