The General Electricity Company of Libya Moving into Globalization Essay

The intent of this study is to give a clear consultancy for DBD in how to spread out and better its concern ability in order to be an international house. The study consists of six elements get downing with an debut followed by two instance surveies of telecommunication companies one is successful and the other one is less successful in the Saudi market. Then it will analysis the Libyan market as a proposed market by doing a SOWT analysis including the forth subdivisions of it strength, failing, chances and menace. Finally, there will be a decision which gives some recommendation to DBD sing the Saudi market.

This adviser study will give DBD a clear vision on the Libyan market. The Libyan market is considered as a recommended market for DBD in order to run new concern in a underdeveloped state such as Libya. There will be two instances surveies to supply a broad over expression on the companies which run ventures in Libyan market. How these companies run their concern procedure. The first company is The Libyan crude oil institute called LPI is developing and instruction Centre provides proficient and academic class for the employees of the companies in Libya in both the populace and private sector.

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The Libyan economic system fundamentally depends on the oil sector. This sector represents more than 70 % from the entire Libyan export. Libyan is considered as one of the highst income economic system along with other seven African states as the last research was done by th World Bank. The GDP per capita is about 15,000 $ . Libya has one of the highest GDP in the universe comparing with South Korea, Spain, Newzealand. These high rates figures reflect positively on the Health services, instruction, and societal security. The unemployment in Libya is the highest in the part with 21 % .

The population of Libya is merely 6 million life in a immense country. The entire country of Libya is 2 million square metre. Libya has the longest seashore on the Mediterranean sea with about 2000km.

The 2nd house is the general electricity company of Libya ( GECOL ) is the first provider for the electricity in Libya. GECOL is bring forthing and transforming electricity throughout the Libyan parts by utilizing a immense electrical workss and Stationss and transforming towers web. The study will explicate the chances and togss in the Libyan market as a new ambitious market. Libya is considered to hold the potency for forward to use in a developed state. Libya has late witnessed a immense roar in every sector such as banking, industry, agribusiness, wellness services and instruction. International companies presents are viing in order to obtain chances to put in the Libya market and Libyan authorities promoting the gap doors for this competition in order that will reflect positively on The Libyan economic system.

Case Studies

The General Electricity Company of Libya ( GECOL ) :

the General People ‘s Congress Established a Company for Electricity under Act No. 17 of 1984 Rome issued by the General Company for Electricity the purpose behind the constitution of this house is to supply country of operation and care of power systems, and energy production workss, and related distribution Stationss and transition, transmittal lines and distribution of energy, and electrical control centres, and the direction and operation and care of H2O desalinization workss throughout the Great Jamahiriya. The company besides industry equipment and stuffs used by cooperation with the competent governments. The company is supplying public services and services consumers in electricity charges against appraisals.

GECOL ( General Electricity Company Of Libya ) is the electric public-service corporation of the Great People ‘s Libyan Arab Aljmahiriya. Over the last 10 old ages, GECOL has more than doubled its energy production and the hereafter promises an even faster growing. To run the power grid from the 400 kilovolt degree down to the distribution web in a extremely dependable and efficient manner, a province of the art public-service corporation communicating web with TDM- & A ; LANservices was planed and the execution began in 2007. More than 300 Stationss are already in topographic point an many more are about to follow. is the electric public-service corporation of the Great

Peoples ‘s Libyan Arab Aljmahiriya.It is entirely responsible for the coevals, transit and distribution of electric power in the whole country.It operates more than 30 electricity coevals workss, chiefly steam and simple-cycle gas-turbine units and diesel generators in rural countries. The available installed bring forthing capacity in the bing

workss is 5500 MW. The current system maximal demand is about 4000 MW.GECOL is besides the 6th largest operator of H2O desalinization workss in the universe. More than a billion US $ will be invested in more than nine desalinization units over the following decennary. The future vision is focused on reenforcing the GECOL substructure by using modern engineerings in the Fieldss of coevals, transmittal and distribution. To run its core-business in a commercially and technically really demanding environment.

Management Mistakes

Gecol fails of supplying a good and modern manner to direct the charges measures of electricity ingestion to the Libyan people. The manner applies presents is by directing workers from the gecol service section in order to look into the electricity box inside the client ‘s place, they estimate the cost of the electricity throughout the continuance. This manner of roll uping the measures from the clients it is non modern and inconvenient for the client, the costumier may non at place in the clip of roll uping informations from the electricity box besides the electricity workers do non go forth a notice on the client ‘s door as a reminder of electricity payments, so as a consequence of this the electricity company happen no manner of cutting down the electricity for unpaid clients place

The place of the electricity box which is inside the client ‘s place. This electricity box place does non forestall some costumiers from rip offing on the electricity measures, because the electricity box is an old manner design, so those rip offing costumiers seek to halt the electricity reader informations from motion for long continuances in order to cut down the existent ingestion of electricity so at the terminal at the clip of roll uping electricity informations by the electricity workers. The workers read unreal informations from the electricity box and ends with low measures for the cheating clients. The deficiency of utilizing a modern engineering of roll uping informations has a great negative consequence on the electricity company hard currency flow.

Lack of care

The periodic care of electrical box and the lightning columns in the streets is really of import for people ‘s safety particularly for kids. Most of Libyan people ‘s complains from the exposed wires that come from the electricity columns to the place. That cause many electrical dazes and sometimes decease instances.

Lack of professionalism

Most of electricity workers in the GECOL service section are non qualified to make care. The professionalism is needed particularly with high unsafe occupation which deals with electricity. The workers before get downing the occupation, they get a short term preparation in covering with the electrical equipment, this kind of classs do non include a existent and practical applications. The trainers focus merely on the theoretical side, so the workers do non hold any thought on how to cover right with the electrical equipment and tools at services or outgrowths instances. It is reported by Gatewood, et Al ( 1995 ) that employees require regular preparation particularly in companies where engineering is to the full engaged. For illustration, Total in the United Kingdom spent about $ 20,000 per employee on initiation plan and preparation. The employees have to be trained until they become professional and skill full to execute their undertakings accurately. Nissan besides bears the disbursals of extra categories that the employees may wish to take ( Pettinger, 2001 ) . Furthermore, Daft ( 2003 ) points out that about $ 100 billion is spent by companies each twelvemonth on preparation. This goes to demo how preparation classs are perfectly critical in an administration.

Lack of motive

Employees Motivation is a critical factor for any company which seeks to obtain a good return and maintain the procedures running swimmingly inside the house. Most of the GECOL employees do non hold any sort of a good wage and lacking for fillips in the company. That has negative effects on the GECOL employees from experiencing defeat and dissatisfactory as their attempts inside the houses are non appreciated by the boards of the company. Many of skillfull and experts inside the company from workers and admin staff to the applied scientists started using to vacate from the house in a first opportunity they got to work in other companies which is paid higher wages and fillips for them. This is supported by Pettinger ( 2007 ) who stated that employees must be motivated and inspired by supplying them with sufficient income every bit long as they are productive. Furthermore, hapless wage and wages strategy consequence in abnormality and losing labors. Nelson & A ; Quick ( 2008 ) besides support the construct that motive is needed for people to acquire involved in a company and exercise more attempts in their work. He besides stresses that the absence of motive is a beginning of dissatisfaction. Having a good inducement plan in a company is a really built-in portion of human resource direction as it assists to pull and keep skilled employees ( Daft, 2003 ) .

Libya Petroleum Institution ( LPI ) :

LPI is considered one of the top high degree institutes in Libya. This an first-class repute obtained from the services provided. First, LPI provides English classs for the public and private sectors employees. The classs are given by high qualified educated trainers who have high instruction and keep international learning certification. These classs are running in high criterion quality category suites which contains the lastest modern equipment in instruction and Personal computer research labs.

Furthermore, the LPI pupils considered in the high rank degree of qualified and trained power force in Libyan market due to the support which is given by the ( NOC ) National oil Corporation ministry associated with the best course of study acquisition. There are many local rivals for LPI, although LPI still the first pick for many private and public houses in Libya. This penchant comes from presenting many international certifications such as care and safety in oil Fieldss approved by the American administration of safety. Furthermore, the oil companies both as services or production companies competence to employe the LPI pupils, because they are already qualified and adept, so there is no preparation classs needed for them and that is better for the oil companies in salvaging clip and preparation cost.

On the other manus, the LPI as has a strength points it has failing points. These failings come from the relationships between the admin and proficient section inside the LPI. There is a sort of lacking of communicating sometimes the proficient section takes orders from the admin. These orders need to be explained accurately to carry through the targeted end in an first-class manner. There of hold in directing the trials consequences in estimated dead line clip. Michael Sheehan confirmed this by stating, among the most seeking elements of hapless communicating in today ‘s workplace is a deficiency of information for the proper achievement of the undertakings necessary within the concern. Poor communicating is an of import issue to get the better of in the workplace, though it may non ever be easy.A When deciding the state of affairs in the workplace, retrieve to give it clip, and actuate the employees decently

The LPI rivals had a opportunity of the struggles happened inside the LPI, so they started graping the attending of the companies by offering cheaper monetary value for making research labs trials compared to the LPI monetary value, although these rivals does non hold the equal substructure as the LPI has, but the companies prefer to obtain good and accurate service within a fixed dead line, that helps these companies for salvaging times and money particularly the cost of rening oil geographic expedition equipment, this can be estimations in 100 1000s American dollars daily.

As a consequence of a hapless communicating inside the LPI. The LPI started losing some assigned contracts with foreign companies due to the recent mistake in trials result inside the LPI laboratories or there is a sThere must be an betterment in the ambiance inside the workplace. The admin should follow the ( two manner ) of communicating is really of import. The employees should non merely listen, but ever have a opportunity to discourse and be encouraged to inquire inquiries, discuss, show their ain thoughts. At the same clip the admin should gain that effectual communicating in the workplace provides employees with a clear apprehension of what is the mark end from them, with cognition of what to make and what to anticipate, such as a kind of communicating manner creates effectual public presentation of the staff and accordingly increase employees loyalty.

The manner frontward

After the probe which has been done. Libya market is recommended for DBD in order to spread out its concern globally for many grounds. Libya is one of the fewest states that have ne’er been attacked by terrorist groups, besides the demographic and spiritual construction of the Libyan people makes Libya one of the safest topographic points in the universe, particularly in Africa where are many neighbourhood states have affected by civil wars and local struggles due to the distinction in the cultural and spiritual construction of their population. Second, After 11 old ages of being under besieging, Libya started to grap attending of all companied around the universe which were off from the Libyan market due to political relations grounds, particularly oil service, production and geographic expedition companies such as Total, Shell and Schlumberger. Furthermore, Libya has launched an first-class substructure particularly in the banking sector where there are a batch of different of private and public Bankss for case HSBC and Alaman. This roar in banking sector gives a large opportunity for DBD to put inside the Libyan market and development its procedure.

Third, after recent alteration in the investing regulations in investing ordinances in Libyan market for foreign companies, nowadays the Libyan market allows to foreign investors to get a bulk retentions inside the companies which is a joint venture between Libyan and foreigner investors, so this gives DBD chances to do a partnership with a local spouse while DBD has the largest proportion in the company as a consequence of this the return value for DBD will be better. Fourthly, DBD can put in many country in the Libyan market, presently there are good return investing in different sector for case industry, wellness, torism, services, agribusiness and any other sector approved by the National General People ‘s committe ( GPS ) .The best countries where DBD can do its investing in Libya Market is the it service and telecommunication services. Libya has a deficiency in the IT and telecommunication substructure. There are merely two participants in the IT and telecommunication sector in Libya and their ability to cover and supplying services to the clients do non run into with the demand that can do them satisfied.

Fifthly, the foreign investing provides now many inducements for foreign companies to inest such as a five old ages exclusion from revenue enhancements and this continuance can be extent to further three old ages if net net incomes reinvested in the undertaking. Furthermore there are free revenue enhancements from client ‘s responsibilities on import of machinery, equipment and tools required for execution of the undertaking for five old ages continuance every bit good as there is no excise revenue enhancements on the abroad goods.

On the other manus there are many challenges could confront DBD enlargement procedure in Libyan market for case. The IT and telecommunication substructure of Libya is still new and may does non run into the outlook of DBD.Second, as a foreign company DBD I need for people who can talk English and foreign linguistic communications fluently while there are non adequate Libyan people who can talk Foreign linguistic communications. Training is a must, because there are an adeqite qualified and adept employees in Libyan market, so the DBD needs to set this in its history.


There are many ways to do an first-class research for DBD about the come ining the Libyan market. Visiting the Libyan embassy web site and cod information about the country that can be invested in besides there is a commercial section inside the embassy where it provides helpful information about the Libyan market for the single and houses investing.

Searching in the web site of the Privatisation and Investment Board ( ) in order to obtain information about the ordinances and Torahs for puting in the Libyan market.

Libya investing has a utile web site ( ) where there are an chance for DBD to happen a local spouse in seeking to do a joint venture. Sending a group of different construction for DBD to go to commercial conferences and meetings such as the international personal businesss in order to derive cognition about the companies and rivals in the Libya market.


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