Tenaga Nasional Berhad

John Antony Xavier and Yazmin Islahudin
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John Antony Xavier: Universiti Kebangsaan Malaysia, Malaysia
Yazmin Islahudin: Universiti Putra Malaysia, Malaysia

Asian Case Research Journal (ACRJ), 2015, vol. 19, issue 02, 353-376

Abstract: This case study deals with strategic management issues. Based on documentary sources, the case examines the dilemma confronting the CEO of Tenaga Nasional Berhad (TNB) as he explores options to revive the flagging fortunes of the company. The case ends with Dato’ Sri Che Khalib contemplating going nuclear to meet the burgeoning power needs of the country. Given its monopoly position, TNB cannot raise its tariffs without government approval and the government had always been conservative in approving such increases in tariffs. TNB has to contend with purchasing power from the independent power producers (IPPs) at high prices. It also had to contend with fluctuating supplies of gas, albeit at subsidized prices, to fire its power plants. The case study highlights factors from which strategies could be formulated to ensure the sustainability of TNB’s operations. It also highlights the issues pertaining to industry regulations and how TNB seeks to overcome such policy constraints to ensure its sustainability.

Date: 2015
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DOI: 10.1142/S0218927515500133

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