AES in Nigeria
Central Issue – The central issue discussed in this case is the kind of organization that the business manager of the AES Barge IPP facility should design such that it fulfills the AES stated values and core beliefs and at the same time serves as a model for future AES Organizations setup in other African facilities. Background – The AES Corporation is one of the largest power companies in the world, with ownership of a 180 plants producing 60,000 MW over 28 countries with another additional 10,000 MW in the development stages in 12 countries. ... The Barge independent power producer (IPP) facility in Lagos, Nigeria was AES’ first operating asset in Africa. ... Nigeria and Africa in general offers great growth opportunities for a company like AES with the government proposed privatization and split up of NEPA, which would interest companies like AES. Situation Analysis – q AES Corporate Values Bakke and Sant were former energy conservationists who had stressed social values in the organization over profits and had strived to make AES a socially responsible, employee empowered organization. ... According to the AES prospectus, the company was based on the following Corporate Values; § Integrity – the company would always try and act with integrity and fulfill its commitments. ... It was the founder’s belief that the establishment of these practices, values and structure had contributed to the tremendous growth experienced by AES over the years. It had instilled a feeling of empowerment in the AES employees, which meant more decision making responsibilities for them, which in turn resulted in them acting like business people in the interest of the company. AES sees tremendous growth potential in Africa since the governments were privatizing the public sector companies but at the same time they also saw more risk, both political as well as financial.