Topic

Stakeholders Goal In
State Grid Corporation of China

Submitted To:

Sir Imran

Submitted By:
Shaikh Salman Younus SP09-MBA-070

Mazhar Faiz SP09-MBA-067

MBA - 4(B)

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 State Grid Corporation of
China

Brief Introduction

SGCC was founded on Dec. 29th, 2002 as a pilot state-owned

corporation by the State Council. As a backbone state-owned enterprise
that may affect national energy safety and economic lifelines, SGCC's core
business is to build and operate power grids and provides secure and
reliable power supply for the development of the society. With a registered
capital of RMB 200 billion yuan and service area covering 26 provinces,
autonomous regions and municipalities directly under the jurisdiction of
the Central Government which equals to 88% of the national territory.
SGCC carries out the president responsibility system. The president is the
legal corporate representative of SGCC.

By the end of 2005, SGCC accumulated a total asset of RMB1176.7

billion yuan with a debt-asset ratio of 61.96%, and possessed 195,899 km
of 220kV and above transmission lines with a transforming capacity up to
616.64 GVA. SGCC has 1.502 million employees and serves 128 million
customers.

In 2005, SGCC sold electric power up to 1464.6 Twh and achieved

an operation income of RMB 721.4 billion yuan with a net profit of
RMB14.4 billion yuan profit & tax of RMB 60.4 billion yuan. SGCC was
ranked the 40th in the Fortune Global 500 in 2005.State Grid Corporation
serves as China’s primary power grid builder and operator, supplying
power to millions. And in 2009 company was ranked 15th in the Fortune
Global 500 and in 2010 current year company is ranked as 8th top
company in the fortune global.

State Grid President Liu Zhenya has set his sights on constructing
China’s first national Smart Grids in order to slash energy costs and
improve distribution. If the grids are completed by 2020, they are
expected to provide up to 35% of China’s energy supply.

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Stakeholders of SGCC
Following are the stakeholders of State Grid Corporation China.

o Customers

o Suppliers

o Employees

o General Public

o Distributors

o Creditors

o Stockholders

o Managers

o Board of Directors

Now we take a look at the goals of all stakeholders individually in

general.

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Goals of SGCC’s Stakeholders

Customers:
As mentioned in the brief introduction of the company wants
SGCC to include proving quality energy services to its customers at
reasonable prices. Same is explained by the company as they want to
produce best for the customers at reasonably low pricing then the
currently prevailing in the market.

Suppliers:
Suppliers would most likely want SGCC goals to include
remaining with them for long term and long lasting relationship with
them as they are one of the largest companies in China and also in the
globe as they are ranked 8th in current years Fortune Global 500. And
purchasing from them at prices that allow the suppliers to earn
reasonable profit margins.

Employees:
Employees at SGCC would like if the company add in their goals
to provide good working conditions, equitable compensation, and
promotion opportunities. As the company operates wholly in the
electrical market and they are providing energy services so working
their can be quite dangerous so employee would like if company add in
their goals to provide safe and sound working conditions to the
company employees.

General Public:
As the company is operating in the services sector especially in
the energy sector so, they are providing services. General public like
the company goals if the add in their goals what the general public.
Like, providing services at minimum costs, and also to provide
significant employment opportunities to the public and contributions to
the charitable institutions.

Distributors:
Like the suppliers, distributers of the company would also like to
have strong and healthy relationships with the company. Also selling to
them at low prices so that they can also earn profit.

Creditors:
Creditors are mostly concerned with their amount held with the
company as they want to know when company is going to pay back
them and how much would it take time. They would like if company

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 maintain a healthy financial posture and a policy of on time payment to
the creditors.

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Stockholders:
Stockholders are the real owners of the company. They want
nothing more than this that there investment in the company should
remain safe and sound. And they should get return on that invested
amount. And also they want growth in this annual return.

Managers:
Managers are the persons who actually work in the company.
And they are they persons who implement overall strategies of the
company made by the top management and the policy makers of the
company. So they would kike the company to expand the market share
of SGCC to make compatible growth-oriented acquisitions which match
the company profile to boast the company capacity, productivity of the
company, and to launch and start the company new projects not only
in China but also out in the globe.

Board of Directors:
Boards of directors in any company are the very important
persons, as they are the chief executives of the company and they are
the authority to make any decision. And they have to decide between
what is good and what is bad for the company. They want to remain
with the company as the part of the 8th top ranked company of the
world. And they also want to satisfy the demands of the other stake
holders of the company as they handle them so they would not be
liable to law suites as they want to save themselves. They are
appointed by the shareholders of the company so their first preference
is to maximize the shareholders wealth of the company.

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