Evaluation Essay Sample on PG&E: Economic and Social Impact on Northern California

Introduction

PG&E company is an American based, standing for Pacific Gas and Electric. It is among the leading companies in providing natural gas and electricity in the country, with its headquarters in San Francisco, California. The company has been providing natural gas and electricity to almost two-thirds of the residents of Northern California ("Special Thanks to Pacific Gas and Electric Company," 2013). This discussion has looked at both economic and social-cultural trends and how they have affected various operations of the company.

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Economic Trends

The primary economic trend that has been affecting the operation of the business is the exchange rates. The exchange rates have been mainly changed by the regulations made towards the organization concerning the export of its products. Not only in PG&E Company, electricity in the United States has been regulated and requires authorization. However, it was earlier authorized in early 1998, but this authorization expired precisely after two years. In return, this has been limiting the surplus production of oil as well as electricity in the company. Therefore, exporting of natural oil and electricity by PG&E Company should be allowed "under section 202(e) of the Federal Power Act (FPA)" ("Pay Attention to These 6 US Economic Trends and Protect Your Finances", 2020).

The rate of unemployment in the country has also affected the development of the Company. Over the past six months, the prices of unemployment in the United States have been 3.5 or 3.6% ("Pay Attention to These 6 US Economic Trends and Protect Your Finances", 2020). This rate is still high, meaning that it harms both businesses as well as economic growth. When the rate of unemployment is high, it also indicates that the dependency rate in the country is high, and so the rate of poverty. Besides, when more people are unemployed, it means that there circulation of money in the economy is still low, and the purchase of goods and services decreases. In return, the high rate of unemployment in the United States has hindered the profitability of PG&E Company, through reducing the purchases of natural gases as well as sufficient payments of electricity bills.

The last economic trends that have been affecting the operations of PG&E Company are the GDP growth. The Growth Domestic Product (GDP) of the United State in 2019 indicated an increase of 2.1% in the fourth quarter as compared to the second quarter ("What Made the U.S. Economy Grow 2.1% in Q3 2019", 2020). The increases in the GDP represent a positive impact on nearly everyone in the economy. The GDP of the first quarterly in the United States had also increased with 2.1% from the last quarter of 2018 ("What Made the U.S. Economy Grow 2.1% in Q3 2019", 2020). The consistent increase in the GDP shows that it is becoming stable, and this has enabled the PG&E Company to increase the number of employees. Besides, it indicates that, as the GDP grows strong, more customers will be able to but natural gas, install and pay for the electricity effectively. Furthermore, this has made PG&E Company make more investments and obtain more revenue as well.

Sociocultural Trends

The primary social, cultural trend that has been observed by the company is the concern for the natural environment. As a provider of natural gas and electricity to almost 16 million Californians, the company has set various commitments towards making the environment and friendly and clean place for living ("PG&E, Pacific Gas and Electric - Gas and power company for California," 2020). Therefore, it has been offering the cleanest energy in the country, as well as a robust array for helping customers in saving energy as well as in reducing the carbon footprint that involves; arranging programs related to energy efficiency, demanding responses from the customers as well as installing solar. In return, it has been able to increase the use of renewable and clean energy, protect sensitive species and habitats, and protect the business itself.

Secondly, the company has been able to consider the career preference of the employees. It has done this by creating an inclusive, diverse, and culture workforce. Precisely, it has created an environment whereby employees enjoy being part of the organization and can offer the best services ("PG&E, Pacific Gas and Electric - Gas and power company for California," 2020). In return, this diverse workforce reflects the customer's diversity, thus creating a positive relationship with the employees. It also establishes the loyalty of the customers by ensuring that their expectations are met adequately. All this impacts the organization positively, through making more sales and gaining a large number of customers, thus increasing the overall productivity of the company.

The attitude of the society towards products offered by PG&E Company is another factor that has impacted its operation in a significant way. The altitude of people towards certain goods and services plays a primary role in determining sales. For the PG&E Company, most of the people like the products being offered since they are concerned about environmental impact. As earlier stated, the products are clean and renewable, which reduces environmental pollution. Besides, the prices are favorable for even low and middle-class residents, meaning that it has consolidated everyone("Special Thanks to Pacific Gas and Electric Company," 2013). Employees have also been offering the best services to the customers, thus drawing more customers into the company. With all these factors, the attitudes of most customers towards the Company's products have increased, thus increasing their trend of consuming the products and increasing the effectiveness of the company.

References

Pay Attention to These 6 US Economic Trends and Protect Your Finances. The Balance. (2020). Retrieved 10 March 2020, from https://www.thebalance.com/top-usa-future-economic-trends-3305666.

PG&E, Pacific Gas, and Electric - Gas and power company for California. Pge.com. (2020). Retrieved 10 March 2020, from https://www.pge.com/.

Special Thanks to Pacific Gas and Electric Company. (2013), 5(4), 595-595. https://doi.org/10.5070/p26g60

What Made the U.S. Economy Grow 2.1% in Q3 2019. The Balance. (2020). Retrieved 10 March 2020, from https://www.thebalance.com/u-s-gdp-current-statistics-3305731.