Business Context

Running head: BUSINESS CONTEXT
Business Context
Name of the Student:
Name of the University:
Author’s Note:

1BUSINESS CONTEXT
Strategies form an indispensable part of the overall business plan of the major
companies as well as the business organizations (Barney, 2014). Therefore, the major
business organizations as well as the companies try to “develop effective strategies which
will lead to the overall growth and the development of their entire business operations”
(Barney, 2014). However, it is often seen that a “mistimed or misplaced strategy can instead
of leading to the overall growth as well as development of the business organization or the
company can hamper the prospects of the company or the business organization in the longer
run” (Eden & Ackermann, 2013). It is a reflection of this that the various companies take into
consideration the internal and the external environment of their operation for the purpose of
the development of effective strategies (Barney, 2014). This essay intends to shed light on the
business process of the Australian company “Inpex” and its related aspects.
The company “INPEX Corporation” was originally founded in the nation of Japan in
the year 1966 (INPEX in Australia, 2018). The company is one of the most reputed ones in
the “field of oil and gas industries” and explores for “oil and gas” in various parts of the
world (Tissot & Welte, 2012). According to the Forbes Magazine (2018), the company has a
current market value of $14.8 billion and is the 978th largest company in the world in terms of
the yearly revenue which it generates. It is significant to note that the company Inpex
Australia was started around 30 years ago and has become one of the major oil and gas
companies in the nation of Australia within a very short time (INPEX in Australia, 2018). In
addition to stabilizing the economy of the nation the “Ichthys LNG Project” under which the
company was founded intends to deliver jobs as well as sound economy to the nation for
many more years to come (INPEX in Australia, 2018). The company currently has its
headquarters in “Darwin, Northern Territory, Broome and The Kimberly” and operates
primarily in the “Timor Sea and the Carnarvon, Browse and Bonaparte basins” (INPEX in
Australia, 2018).

2BUSINESS CONTEXT
The internal environmental factors which affect a particular company or business
organization can be analyzed by the framework of the SWOT analysis. As per this particular
framework the strength of the company Inpex Australia can be said to be its stable
relationship with its parent company “Inpex Corporation” based in Japan and the availability
of the oil and gas resources in several parts of Australia (Eden & Ackermann, 2013). The
weakness of the company can be said to the non-renewable nature of the oil and gas
resources and also the various environmental threats which the oil and gas industry is facing
at the present moment (Ford et al., 2014). The opportunity which the company can utilize in
the near future is the by become more diversified by tapping for other kinds of energy sources
as well (Eden & Ackermann, 2013). The major threat which the “company is facing at the
moment is from the environmental cauldron” and also from the depleting nature of the natural
resources.
The external environmental factors which affect the business operations of a
particular business organization or company can be measured by the framework of PESTLE
analysis. The political climate of the nation of Australia is very suitable for the conduct of
business and the government of Australia takes active initiatives for the promotion of trade
and commerce (Eden & Ackermann, 2013). Therefore, this particular political environment is
especially suitable for the business of the company Inpex. The economic condition of the
nation of Australia is a very stable one yet it is reeling from the effects of the economic
recession which the world is facing at the moment. Therefore, this particular economical
condition is very uncongenial for the interests of the business organization Inpex. The social
environment of the nation of Australia is a very liberal one and very congenial for the
conduct of trade and commerce. It is to be noted that the people of Australia constantly need
regular supply of oil and gas and it is here that the role of the company Inpex becomes very
significant. The nation of Australia is a fairly advanced one in terms of technology and latest