Business Environment and Strategic Management

This presentation discusses the nature, scope, and key concepts in corporate strategic planning of the oil and gas sector. It also critically analyzes the internal and external factors that influence corporate strategy in the industry. The presentation focuses on Victoria Oil and Gas PLC and examines its strengths, weaknesses, opportunities, and threats. It also discusses the external factors such as political, economic, social, technological, environmental, and legal factors that impact the industry. Overall, the presentation provides insights into the business environment and strategic management in the oil and gas industry.

Business Environment and Strategic Management
TASK LO 1& LO 2

INTRODUCTION
• Strategic planning is a process and planning of all which is important for the company in order to
achieve its determined goals.
• Business environment refers and consist all the internal and external factors that impact and
influence business activities and process of the company.
• Victoria gas and oil company is a domestic energy supplier in Africa.
• In 2004, Kevin founded this company and was responsible for refocus of the company towards
natural gas in Africa.

1 Nature, scope and key concepts in corporate strategic
planning of oil and gas sector
• Corporate strategy is the plan of the company that defines ways, method and in order to achieve
corporate goals within strategic management.
• There are mainly four types of corporate strategy such as: market penetration, diversification,
vertical integration and horizontal integration.
• The oil and Gas sector play a vital role in social development and economy.
• The strategic decisions of Victoria gas and oil company are highly unstructured, and long term.
• Managers in this type of industry talk of midstream, upstream and downstream activities.

To be continued
Nature and scope of Victoria oil company
• Victoria oil and Gas Plc conduct its business in accordance with the best practice standards that
govern human rights.
• The main aim and goals of this company is to respect various or different cultures and the rights of
the people of local communities.
• The another main aim of this company is maintaining and promoting integrity, honesty and high
ethical standards.
• It wants to make a positive and large amount of contribution to local communities.
• In order to compliance with corporate social responsibility, company should ensure that all the
members of staff are aware of the company's commitment towards social responsibility. They also
communicate the company's activities with the community.

2. Critically analysis the internal or external factors which
influence corporate strategy in oil and gas industry.
Victoria Oil and Gas PLC
STRENGTHS
• Strong Brand Portfolio- Over the years, Victoria Plc has invested huge amount in building a strong
brand portfolio. It can be very useful if, the organisation wants to expand into new categories.
• Strong Dealer Community- It has developed a culture among dealers & distributors to promote
company's products and also invest in training the sales team.
• High level of customer’s satisfaction- Company has dedicated customer’s relationship
management department that helps to achieve a high level of customer satisfaction among present
customers and potential customers.
• Strong distribution network- Over the years Victoria Plc has developed a reliable distribution
network that can reach majority of its potential market (Henri, Boiral and Roy, 2016).

To be continued
WEAKNESSES
• Challenges from new entrants- The company has not been able to tackle the challenges present by
new entrants in the segment and has lost small market share in the niche categories.
• Product demand forecasting- The company's managers are not very good at product demand
forecasting leading to a higher rate of missed opportunities compare to its competitors.
• Organisation Structure- IT is only compatible with present business model thus limiting the
expansion in adjacent product segments.

OPPORTUNITIES
• There is great growth opportunity for the Victoria Oil and Gas, as there is an exponential growth in
the population and particularly in the existing and potential customer segments.
• Through the advanced technological integration Victoria Oil and Gas can decrease cost and improve
efficiency in their innovative products.
• Reduction in the interest rates can improves their financing at lower cost-profitability.
• The emergence of e-commerce and social media marketing trend can be a great opportunity for
Victoria Oil Gas Plc if they can develop strong online presence on different social networking sites.
To be continued

THREATS
• The changing regulatory framework and introduction of new strict regulations impose a major
threat to the Victoria Oil Gas Plc. It makes compliance with legal standards more complex and
challenging for the Company.
• The rise in inflation rate increases the cost of production and can impacts the business profitability.
• Shortage of skilled labour in the market can make it difficult for the Company attract talent with the
right skills set (Haines, 2016).
• Increasing competition from the competitive firms can be a threat for Victoria Oil Gas Plc.
To be continued

External Factors
• External factors are also known as macro business environment that directly or
indirectly influenced the overall industry or company in several manner.
• The impact of those external factors could have been positive or negative as well.
As compare to external factors internal factors of the company is controllable.
• Besides, external factors are more challenging for the industry to cope up with.
• Such external factors are legal, technological, social, environmental, economical.

Political factors
• Oil and gas industry needs labour to work with and they have to pay the taxes and other charges.
• Oil and gas industry should need to followed the rules and regulations of government and pay all taxes and other charges
which are levied over it.
• The industry has to follow the taxation policy, implement labour laws in the industry. They impact on the company strategic
position that affect the long-lasting growth of the company.
• Government provide products and service and decision of government can affect this industrial sector and also enhance the
quality of the infrastructure.
To be continued

Economic factors
• Economic is another significant factor that affect the overall industry growth.
• Generally, OPEC countries have earned lot of wealth through the sale of oil and petroleum to other
countries.
• In oil and gas industry political factor influenced by oil prices with supplementary goods.
To be continued

Social factor
• the social factor is the most significant factor that affect industry in both positive and negative
manner.
• Social factor in the oil and petroleum industry shows the demography, income generation,
religious, culture and ideological views on the issues.
• In this industry most of the employees are from good educational backgrounds. Through they get
good income and wages.
• People want this kind of industry in the country to make their future needs more enlarging and
effective. It can help them to rise their living standards.
To be continued

• Technological factors
• Technological is the most beneficial factor for the company that can help to remove
the effective way of learning and goals.
• This factor makes company profitable by introducing new technologies in the
production process.
• Through company get advantage from the corporate strategy. Industry is working
for the complementary products like ships, vehicles, airplane, petrochemical
including synthetic rubber etc.
• On the other hand, substitute companies or industry has been produced other
products such as nuclear industry, energy resources and natural gas.
• In other words, the use of these substitute will automatically increase the use of oil
and gas industry.
To be continued

Environmental factors
• The geographic industry or the refinery industry has been given great impact on the oil companies.
• As per the latest report of the OPEC declares that, most of the countries which produced oil are
Russia, Iran, Nigeria, China, Qatar.
• On the same side, due to natural disasters such as earthquake, tsunami, storms, cyclones, snow
storm. This industry would have facing lot of trouble. Indirectly this factor impact on the investors
in the oil and gas industry.
• To use of oil and gas products are very necessary rather than oil and petroleum products. In order
to overcome from this factor Victoria Oil & Gas Plc needs to make effective strategic plan or
utilize all potential resources to prevent the situation in safe manner.
To be continued

Legal factors
• This is the last factor of external factors that influence company corporate strategy
and affect in both positive and negative manner.
• Legal factor is all covered from laws, regulations that compulsory for the companies
to adopt which is related to company law, employment law etc.
• this factor influence corporate strategy in different manner such as regulations in
competition, pollution, international trade and consumer protection.
• In other words, the positive impact of this factor is company can free by applying
this law in case of any uncertainty they have their safety precautions.
• It helps company to make good deal with the overall environment.
To be continued

Conclusion
On the basis of above given presentation, it has been analyzed through out the study
that business environment and strategic management is the two elements which is most
significant in the oil and gas industry. It has been critically analyzed the internal or
external factors that how they influenced company corporate strategy

REFERENCES
Ahmad, N. K. W. and et.al., 2017. An integrative framework for sustainable supply
chain management practices in the oil and gas industry. Journal of Environmental
Planning and Management. 60(4). pp.577-601.
Ahmad, W. N. K. W., and et.al., 2017. Evaluation of the external forces affecting the
sustainability of oil and gas supply chain using Best Worst Method. Journal of cleaner
production. 153. pp.242-252.
Amuna, Y.M.A., Al Shobaki, M.J. and Naser, S.S.A., 2017. Strategic Environmental
Scanning: an Approach for Crises Management. International Journal of Information
Technology and Electrical Engineering. 6(3).pp.28-34.
Haines, S., 2016. The systems thinking approach to strategic planning and
management. CRC Press.
Henri, J. F., Boiral, O. and Roy, M. J., 2016. Strategic cost management and
performance: The case of environmental costs. The British Accounting
Review. 48(2).pp.269-282.

Thank You