PGESCo Power Generation Engineering and Services Co.

The leader Power company in the Middle East

ABOUT PGESCO.
PGESCo, was establish in 1993 as a cooperation between the ministry of Electricity
And energy of Egyptian government, Bechtel power corporation of the USA and
commercial international Bank of Egypt (CIB) with the following Mission, purpose
and principles. In 2012 Bechtel start to separate and new vision and mission has been
established.
PGESCo. provides engineering, procurement, project management services related
to the design of electric power generating plants of all types as well as
complementary, supplementary or related services, whether locally or abroad.
PGESCo is determined to maximize the utilization Of Egyptian national resources,
both personnel and material. PGESCO emphasizes on realizing and enhancing local
Egyptian engineering capability through extensive technology transfer programs to
train national engineers in current state-of-the-art design practices.

VISION
To be the Middle East premier engineering and project management company
Improving lives and making a lasting difference in the communities in which our
businesses operate.
We provide life cycle power solutions to enhance our customers business, whilst
creating better technologies that benefit both and the environment.
Customers and partners will see us as integral to their success. We will anticipate
their needs and deliver on every commitment we make.
People will be proud to work at PGESCo. We will create opportunities to achieve
the extraordinary, and we will reward success.



MISSION
Providing safe workplaces and ensuring that the public is not harmed by company operations
Introducing alternative unique solutions for hybrid fueling systems to help the Government to
minimize fuel shortage.
To lead the way in nuclear power generation
To deliver strong financial performance
to be a leader in sustainability
To maintain a team of high performing people.
VALUES
PGESCo values are at the heart of our operations and we believe these values set as:-
Quality: Make it personal, deliver requirements first time
People we will attract, develop and retain the best team members. We encourage
open communication and will show respect for others.
Integrity we are honest, fair and reliable in our day-to-day interaction with
customers and fellow employees
Ethics: Uncompromising integrity, honesty, and fairness are at the heart of our
company
Safety: Zero accidents is our unwavering goal.

PEST ANALYSIS
Political
Local :
lack of decision makers results of fast turn over of government heads
The international fund organizations retraction supporting
MENA :
Volatile political bonds that are affected easily with any small speeches from
anyone due to weak external affairs minister
Unstable political situation that's may effect easily and investment with and from
others Arab country


PEST ANALYSIS
Economical
Local:
-Egypt credit ranking/categotory has been severely affected
-International Loans approvals/agreements has become very challenging
-Government has become forced to accept any applied interest rates
-Continuously increasing exchange rates that impacts the I nitial Project cost.
-Poor fuel resources availability
MENA:
-Gulf countries find such investment in Power Projects Profitable and with an
attractive secured ROI .
-Availability of fuel resources.

PEST ANALYSIS
Social
The common culture creates a heavy energy consuming life which increase the
energy needs in most of our market
The population in the country increases whith about 2 million each year which
leads to an increasing power and energy needs in the market
Politics can drive the society to boycott other countries investments in country

PEST ANALYSIS
Technological
lack of internet technology which effected transfer database between projects
Rate and developing of technology diffusion to enhance the power plant
engineering

SWOT ANALYSIS

Strengths

Good Amount of technical experts and
in-house creative team with good
credentials
Excellent cost competitive edge against
other competitors in market
Good record of achievements in
Egyptian market
Best constructability management
practitioners in our team
Weakness

Low experience in leading green energy
projects
Low financial resources
Political Unrest is causing employee
concerns and unrest
Unfair recruitment standard of selection
influenced by relation with the ministry

SWOT ANALYSIS

Opportunity

Competitors are slower to enter due to
security concerns in some markets.
Huge growing energy market
Unlimited green energy resources in our
market

Threat

A lot of global companies seeks to enter
the market
Unstable political situation affects
relations with the neighborhood
countries
Consideration of government corruption

ORGANIZATION STRUCTURE
PGESCO. IS ADOPTING A HYBRID ( FUNCTIONAL MATRIX ) STRUCTURE
OVERALL STRATEGY
PGESCo is adopting an Analyzer generic strategy that builds on the market needs and plans
against the competitor efforts in market
PGESCo is adopting a (Cash-Cow Model Portfolio) due to the high market share it has in the
Egyptian market driven by high reputation and excellent cost leadership .
On the other hand, PGESCo in the Arab Market is adopting an (Investment Model Portfolio)
through high business growth rate to make full use of the high growing market their
Strategy Period February 2014 to January 2016 January 2016 to July 2018
Goal
Achieve 4 active projects target per year with
total amount 10 billion $ with 21% profit margin
Achieve 6 active projects target per year with
total amount 14 billion $ with 23% profit margin

Corporate Strategy
(ies)
Growth
Concentration : horizontal geographical
Growth
Diversification : concentric ( related )

Business Strategy
Cost Leader Ship to penetrate the Local market
through competitive prices
Cost Leader Ship sustaining same competitive
prices
Functional Strategies
HR Department

Target recruit 1500 employees
Training matrix including tech. training target 350
employees
Establish a New salary scale plus compensation
and befits compare to compotator
Reduce the hiring of consulting level
HR Department

Target recruit 2000 employees
Training matrix including tech. training target
500 employees

ORGANIZATION BEHAVIOR
MODELS ( OB )

Supportive model :
Where the team leader is transferring
knowledge and giving support
ORGANIZATION CULTURE
MODELS ( OC )

Leadership and Enriched culture :

Where the team leader coaching team
members by following coaching hour approach

Another important element to support our
culture which the best leader award
MANAGEMENT OF CHANGE AS
AN IMPLEMENTATION
CHALLENGE
The challenge was a conflict between PGESCO Strategy and BECHTEL Strategy which was
preventing PGESCO to penetrate MENA markets.
After BECHTEL separation, PGESCo challenged to penetrate MENA markets through
Radical organizational change.
The formula applied for this change (Gleichers Formula)
D x V x F > R
D : Dissatisfaction from the limited opportunities of new projects in EGYPT.
V : Vision to target the MENA markets which will enhance the career path for the employees
with better opportunities for vertical overseas experience
F : First step by signing new contracts in IRAQ and LYBYA
EVALUATION PROCESS
Evaluation Tool : Metrics & KPIs
Metric KPI Weight Target Score Total
Contract No. of Contracts Awarded 20% 4 75% 15%
Total Contract Values 20% 10 B$ 80% 16%
Safety

No. of Accident 30% 3 133% 40%
Quality Completions on Time

15% 100% 75% 11.25%
Completions in Budget 15%

100% 80% 12%
Total 100% 94.25%

THANKS FOR YOUR TIME

PREPARED BY SHARK TEAM

AHMED ABO RAYA
AHMED HASSAN
HANY A. RAHIM
HESHAM EL-GBALY
MOHAMED KAREEM
RAMI EL-KTATNY