Assessing Strategy of Bristol Tennessee Essential Services (BTES)
A Synopsis of the Business Case for Bristol Tennessee Essential Services
BTES is a company whose history dates back to as far as 1945 when its ownership was transferred from the Cities Service Power & Light to the Tennessee Valley Authority (BTES, 2018). The company deals in the provision of utility services, primarily the supply of electricity and fiber services across many parts of the United States. It serves over 30, 000 people with just 68 employees (NIST, 2017). The company offers high-speed internet services to the citizens of the US.
Critical Evaluation of the Strategic Decisions That Led To BTES Winning the Baldrige Performance Excellence Award.
First, its service reliability prompted the decision to earn the company the award. In this case, the BTES Company’s service reliability is up to standard because it has reduced the instances of power outages to a great extent. The average amount of time over which there are electric outages in the United States is between 112 and 250 minutes annually depending on the area (EIA, 2018). However, the company had an average power outage of 60 minutes per year, which outdoes most of the companies dealing in the provision of similar services by a huge margin.
Secondly, its operating costs are far much lower as compared to its competitors (NIST, 2017). Between 2012 and 2016, it maintained its expenses below all the competing firms operating under the Tennessee Valley Authority.
Besides, the customers gave the company a high rating based on the Customer Average Interruption Duration Index. The company was rated higher than any other utility company due to its fast services, quality customer care services and low average outage time.
The use of these decisions to award the BTES was appropriate. The three factors qualify it as an efficient and productive company that deserves to be at the top of the rest.
The Organization’s Strategic Source and Type of Competitive Advantage.
The strategic sourcing in the BTES Company is concerned with incorporating the needs of the customers as well as those of the company. As a company, it places it uses an employee-engagement strategy in which it concentrates on trying to bring out the best in the employees. It trains and engages them, which ensures that the workforce is motivated. The result is that the customers are served well, and the company also succeeds in the market.
BTES competitive advantage is cost leadership and differentiation. Using the former strategy, the company has set out to be the low-cost provider of electricity and internet services in the economy (University of Cambridge, 2016). It has saved its users up to $70 million for the last 40 years (NIST, 2017). It also uses the differentiation strategy by providing faster services than its competitors. Its internet services are the fastest in the US and its power outages last shorter than its competitors.
The Future Strategic Direction of BTES Based on the Analysis of Key Decisions in the Business Case.
The BTES should now aim at creating more branches across the US. It only supplies 33, 000 people hence can expand to other areas to get more customers. Reaching other areas will be a strategic measure to increase its market size.
Critical Evaluation of the Vision, Mission, Purpose, and Goals of the Organization.
Its mission is providing high-quality services to their customers, employees and the community. The vision is becoming the best provider of internet, electric, telephone, and cable television services. Its goals are the provision of the best services to its customers and to also promote job growth within its location. The company has apparently achieved all of them. Its services are ranked as among the best in the US, and it has created many employment opportunities to the people.
Analysis of How The Management Strategy Hierarchy Led To Competitive Advantage For My Chosen Organization.
BTES uses the strategy of employee empowerment. Each employee is given the chance to introduce new ideas to improve the performance of the organization under the Check-Act-Plan-Do process. This allows the formulation of many new ideas that help boost the performance of the firm ahead of its competitors.
The Symbiotic Relationship between Strategy and Policy.
Strategies are ideas on how the company can achieve its objectives. The policies are rules designating the procedure for implementing the strategies. Strategies and policies work together to achieve the objectives of the company. Poor policies will hinder the implementation of the strategies.
References
BTES. (2018). History. Retrieved August 12, 2018, from Bristol Tennessee Essential Services: http://www.btes.net/index.php/about-us/history/
EIA. (2018, April 5). U.S. Energy Information Administration. Retrieved August 12, 2018, from Energy Information Administration: https://www.eia.gov/todayinenergy/detail.php?id=35652
NIST. (2017, November 15). Malcolm Baldrige National Quality Award 2017 Award Recipient, Small Business. Retrieved August 12, 2018, from NIST: https://www.nist.gov/baldrige/bristol-tennessee-essential-services
University of Cambridge. (2016). Porter’s Generic Competitive Strategies (Ways of Competing). Retrieved August 12, 2018, from University of Cambridge: https://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-strategies/
