Entergy: Financial & Strategic Parameters Essay

1023 words - 5 pages

In the following few pages, analysis will be conducted on Entergy’s strengths and resource capabilities, competitive weaknesses and resource deficiencies, market opportunities, and threats to future profitability.
Company strengths and resource capabilities. Four strengths and resource capabilities have been identified for Entergy, Inc. These strengths include its experienced and well-seasoned senior management team, its strong balance sheet, its current infrastructure, and finally, its strong brand image. An analysis of Entergy, Inc.’s strengths will begin with its experienced and well-seasoned senior management team.
One of the most important investments for companies today is in human capital. Entergy, Inc.’s defined management team is well-seasoned and an experienced asset, which is strategically important in achieving the future corporate vision (Annual Report, 2014). This important resource can be utilized in out-strategizing Entergy, Inc’s competition while achieving corporate goals and objectives. Entergy is committed to managing the assets to maximize useful life and run-time expectations. The management team consists of 14 executive officers and 11 members on the board of directors. The common thread that ties the executive offers and board of directors is the CEO & Chairman of the Board, Leo Denault. Since his tenure started as CEO in 2013, Denault has established the vision, strategic direction, objectives and plans to create sustainable value for Entergy’s four stakeholder groups: owners, customers, employees and communities. He is closely engaged with the board of directors, providing planning and policy recommendations on all important aspects of the corporation. Denault also leads and provides guidance to the Office of Chief Executive, which is the most senior management team of the company and manages and sets direction for the various business units. Finally, Denault ensures that the company and its operating units are strong, positive contributors to the well-being of their communities and the industry.
A strong balance sheet represents the second resource capability for Entergy, Inc. As of January, 2014, the company’s balance sheet listed approximately $43 million in current assets and only $4 million in current liabilities. This represents a current ratio of 1.28, meaning that Entergy, Inc. can afford to pay its current liabilities four times over (Annual Report, 2014). These factors, along with the company’s strong debt-to-equity ratio, will furnish Entergy, Inc, “with the financial flexibility to execute our long-term business plans effectively and to move strategically to expand our business reach to global expansion” (Annual Report, 2014, 2). Entergy is an overall profitable, liquid organization that can be quick to respond.
Entergy, Inc.’s third strength is its company infrastructure, which includes its transmission division, nuclear plants, and its wholesale commodities division. This is a real advantage,...

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