Oil and Gas Industry Global Trends

This document explores current trends shaping the global oil and gas industry. It examines factors like political influence, environmental concerns (including gas flaring), technological advancements in extraction (e.g., shale gas), and the role of key players like China and Russia. The analysis also touches upon the challenges and opportunities facing the industry in different regions.

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Business Management and Strategic Management
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Business Management and Strategic Management
Contents
Introduction.................................................................................................................................................3
External competitive environment for identifying opportunities and threats...............................................3
Internal operating environment for analyzing strengths and weaknesses.....................................................5
Consistency of strategies with mission and goals of The Ritz Carlton........................................................6
Business model of The Ritz Carlton............................................................................................................7
Key partners............................................................................................................................................7
Key activities...........................................................................................................................................7
Key resources..........................................................................................................................................8
Value preposition....................................................................................................................................8
Customer relationship..............................................................................................................................8
Channels..................................................................................................................................................8
Customer segments..................................................................................................................................8
Cost structure...........................................................................................................................................8
Revenue streams......................................................................................................................................8
Employment of strategic management theories...........................................................................................8
Reflection of the role played........................................................................................................................9
Conclusion...................................................................................................................................................9
References.................................................................................................................................................11

Business Management and Strategic Management
Introduction
For bringing advancements and enhancements in the organization the business entity is required
to Identify and decide the strategies and plans. This process of identification and management of
the strategies and plan has been considered as an empirical task and is known as business
management and strategic management. This process of management is required to be
implemented with the organizational structure and culture so as to bring some positive changes
and these changes will be proven beneficial for the business corporation in terms of growth and
results. The managerial staff and top level within the organization are the authorities who are
held liable for the adoption and execution of these strategies (Adewuyi and Oyejide, 2012).
Bringing a hike and boost to the performance level and productivity has been considered as the
main objective behind the adoption and implementation of these tactics and strategies.
Scheduling, managing, monitoring, analyzing the operations within the organizational structure
are the additional operations and functionalities which are executed within these management
practices. The below-described concept has been considered as an integral approach for the
entity and is also relevant and liable in effectively attaining the desired goals and objectives of
the organization. A position over the rivals will be attained and the business corporation will be
able to sustain easily in this competitive environment. The concept can also be termed as the set
of activities or the decisions which are required to be essentially and effectively taken by the
managers for deciding the outcomes of the performance and productivity of the business
corporation (Aigboduwa and Oisamoje, 2013). The below-executed analysis has been
concentrated on The Ritz Carlton which is a high standard or premium brand name in the sector
of the hospitality industry. The below-executed report has been made focused on the analyzing
the business situations and also proposing the new strategic choices and the business
implications of the new strategy.
External competitive environment for identifying opportunities and threats
Competitor analysis comprises of the competitors who can be considered as the barriers or the
obstacles on the track of growth and success of the business entity (Anomohanran, 2012). The
below-executed analysis has been made focused on the external competitive environment of The

Business Management and Strategic Management
Ritz Carlton. The competitive environment comprises of some the main competitors of the entity
which are discussed as follows:
Opportunities
Growing business markets: The upcoming developments of the businesses and business travel
dictate an opportunity for the business corporation because the independent business travelers are
considered as the major driving factors of the hospitality industry. Their spending tendency is
more as compared to an average traveler (Ritzcarlton 2017). Generally, while spending money if
the consumers are spending other’s money on themselves they do not economize but will try to
gain the highest value of it.
Innovations as compared to the competitors: The business entity should attempt to innovate
some services or products for grabbing the attention of the travelers. For instance, offering
libraries etc. As mentioned in the presented case the entity has focused on the design of the
hotels in the regions of China .i.e. Beijing, the brand can develop some innovations in the design
which will be proven beneficial for the entity (Anthony, 2012). As presented in the case, The
Ritz- Carlton Beijing brings a new level of elegance and design aesthetic to China’s capital city,
this point can be considered as an advantage for developing relations and bonds with the public
in China on cultural and religious aspects and which will be considered as a big opportunity for
the firm. This will aid the business corporation in stepping ahead in the intense competitive
environment. Moreover, offering discount schemes and packages can also be considered as one
of the strategies which can be adopted by The Ritz Carlton for sustaining in the competitive
environment.
Business expansion: The business corporation should focus on the business expansion and this
will be considered as an opportunity which will be relevant for sustaining in the external
competitive environment (Aron, 2013). For instance, the entity can try to enter some new regions
and establish the markets. This will aid the organization by an increase in the market share,
goodwill and brand equity etc. All these factors considered as a whole will be assisting the entity
in developing a strong position in the competitive environment.
Threats

Business Management and Strategic Management
The biggest threat which is very much significant and is liable in affecting the productivity of the
organization is the development of the competitive environment which has been faced by The
Ritz Carlton in Beijing China. Grand Hyatt and Hilton Beijing are the two brand names which
are the leading names in the hospitality sector and are the top competitors of The Ritz Carlton
(Ciarreta and Nasirov, 2012).
Fear to the travelers has become a prominent theme across the hospitality sector and the reason is
the terrorist activities and the natural calamities in the region of Beijing China (Qz 2017). For
instance, the creation of a terrorist threat by repressing the secessionist fervor in its western
frontier has been considered as one of the biggest and upcoming threats for the travelers and
which will bring a decline in the rate of the tourism in the region of Beijing. This will be
considered as one of the biggest threat for The Ritz Carlton.
Internal operating environment for analyzing strengths and weaknesses
Strengths
The business organization is a luxury brand name and offers the highest standard and lavish
facilities to the travelers and tourists in Beijing and other regions of the world (Ghandi and Lin,
2014). The quality of the service has been considered as one of the biggest strengths for the
business entity.
The Ritz Carlton has focused on the design and structure of the hotels in Beijing which attains
the entity with the attraction of a huge volume of consumers (Hiatt, Grandy and Lee, 2015). The
brand offers a number of services such as a distinction of housing special feature is offered by
the entity which comprises of the mezzanine floor offers guests a wedding chapel, private family
salons for grooming before the ceremony and a spacious function area for hosting large private
banquets etc. This can also be counted in the list of the strengths of the brand.
Moreover, the grand ballroom, wood-paneled boardrooms and meeting rooms for the
professional tourists are made technologically appropriate and updated (Hu and Xu, 2013). This
presents the technological advancements of the brand and is the one of the strength for The Ritz
Carlton.
Weaknesses

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In general sense, it can be considered that The Ritz Carlton is a premium brand name which
offers set of premium and lavish services. These services are very expensive and are un-
affordable by middle-class tourists (Keil, 2014). And due to this reason, the entity lacks a major
portion of consumers.
Moreover, on the basis of the research conducted by the Trip Advisor, it has been analyzed that
the staff is proven inefficient and in-capable in meeting the standards of the organization. The
staff lacks training and is inefficient in serving the tourists (Killing, 2012). Due to this, there has
been a decline in the goodwill and market share of the organization.
Moreover, the Trip Advisor has also mentioned in the blogs that the consumers and face a lot of
trouble during the time of renovations. The tourists who are currently present in the hotel during
the time of renovation are not treated well and which is tarnishing the brand name.
Consistency of strategies with mission and goals of The Ritz Carlton
The below presented is the justification of the consistency of the strategies with the mission and
goals of The Ritz Carlton:
One of the adopted marketing strategies of the business firm is that “understanding the value of
the each and every employee”. This means the organization considers the workforce an integral
part of the organizational structure and hence it has been mentioned in the mission statement.
The mission statement focuses on the employees and attempts to develop and offer a working
environment where a value is given to a diverse range of staff, enhancement is brought to the
quality and standard of living and also the individual ambitions are fulfilled (Mitchell, Marcel
and Mitchell, 2012). The next strategy is the fulfillment of the unexpressed requirements of the
consumers. As it has been clearly mentioned in the mission statement The Ritz Carlton
experience invigorates the senses, instills, well-being and attempts to fulfill the wishes which are
un-expressed by the tourists.

Business Management and Strategic Management
Business model of The Ritz Carlton
Figure 1 Business Model of the Ritz Carlton
(Source- Business model canvas of the Ritz Carlton, 2017)
The above pasted is the business model canvas of The Ritz Carlton which comprises of the
below-mentioned components:
Key partners
This component has been considered as one of an integral part of the business model. The entity
should make identification of the key partners as they play a crucial role in aiding and assisting
the organization in business operations and functionalities (Ovadia, 2012). In case of The Ritz
Carlton, the key partners are the 3rd party payment providers, the hotel owners and also the other
hotel organizations etc.
Key activities
The key activities comprise of all the operations and the functionalities which are executed
within the organizational structure of the entity. For instance, some of the core operational ties
are the platform management, promotions and maintaining personal relations.

Business Management and Strategic Management
Key resources
The resources are the assets which are available with the organization and are utilized in the
generation of revenues (Pinkse and Van den Buuse, 2012). This comprises the human
resource .i.e. the staff, the premises of the hotel, financial resources, the technology used by the
organization etc.
Value proposition
This factor comprises of bringing an enhancement in the visibility of the hotel, expanding
increase in the customer base, development in the accommodation options, offering accessibility
and an ease in booking facilities etc.
Customer relationship
This factor is also one of the key element which should be considered at priority as customers are
the king of the market and a strong relation will be proven beneficial for the entity. Offering
personal assistance, serving additional discounts and services to the tourists etc can be
considered under this component.
Channels
The channels are referred to the mediums which are utilized by The Ritz Carlton for distribution
and promotion of services. This can include the official websites, the advertising websites for
which the entity is paying, the sales teams etc. These are the platforms or the channels which are
being utilized by the business entity for making promotion and distribution of the products and
the services.
Customer segments
The customer segment comprises of the business class professional who conducts meetings, the
travelers, and the tourists. These are the main segments which aid the entity in generating the
expected revenues for the firm.
Cost structure
The cost structure comprises of all the expenses which are incurred by the entity during all the
operations and functionalities. This includes the advertising and marketing costs, salaries to the
staff, logistics, legal, company registration, platform maintenance etc.
Revenue streams
This factor comprises of the elements which assist in the revenue generation process. For
instance, the commission received from the accommodation booking, from the cab service
owners etc.
Employment of strategic management theories
Implementation of the strategic management theories comprises of the translation of the chosen
selected strategies into organizational practices for attaining strategic goals and targets. The

Business Management and Strategic Management
employment of the strategic management theories has been termed as the concept of developing,
utilizing, and amalgamating organizational structure which will lead to the attainment of the
competitive advantage and a better productivity. The below presented is the review of the steps
through which the strategic management theories are employed in The Ritz Carlton:
An appropriate disbursement of the abundant resources is required to be done for operating the
strategy and the associated activities.
Moreover, there should be a development of some strategy supporting policies which will assist
in the strategic management process.
Further selection and employment of the best policies and programs should be done, which will
bring constant improvements.
And at last the reward system should be linked so as to accomplish the outcomes.
Reflection of the role played
I have been appointed as the internal consultant in The Ritz Carlton. The main function which
was executed by me, as an internal consultant was to manage the people side of change by
implementing the mechanisms and tools of structured change management. The core operations
for the role is spreading awareness about the change management process, developing strategy
and plans and enabling the other doers of the change management. These all are the role which
has been played by mean internal consultant for bringing improvements and advancements in the
productivity and effectiveness of the organization.
Conclusion
In the limelight of the above-executed analysis, it has been inferred that the strategic
management and business management are the two crucial concepts for any of the business
entity which is required to be managed efficiently. The Ritz Carlton is a premium and luxurious
brand name in the hospitality sector. Beijing is the region which has been considered in the
above-presented report and analysis over the same has been executed. The analysis comprises of
the internal and the external environment to win a sustaining position in the competitive
environment. Moreover, the report also includes the strategies which affect the business model of
the entity. It has been observed that the strategic management and implications of the above-
mentioned strategies will offer the business organization with a number of benefits. The adoption
of the outlined strategies will discharge the stress and burden of the managers. The theories aids
in the development of a sense of discipline which will enable the management to divert their
focus on the future growth of the organization instead of the daily routine operations Moreover

Business Management and Strategic Management
the strategies also provide a framework to the various decision-making process and through
which the managers will be benefited.

Business Management and Strategic Management
References
Adewuyi, A.O. and Oyejide, T.A., 2012. Determinants of backward linkages of oil and gas
industry in the Nigerian economy. Resources Policy, 37(4), pp.452-460.
Aigboduwa, J.E. and Oisamoje, M.D., 2013. Promoting small and medium enterprises in the
Nigerian oil and gas industry. European Scientific Journal, ESJ, 9(1).
Anomohanran, O., 2012. Determination of greenhouse gas emission resulting from gas flaring
activities in Nigeria. Energy Policy, 45, pp.666-670.
Anthony, R., 2012. China’s role in the East African oil and gas sector: a new model of
engagement.
Aron, L., 2013. The political economy of Russian oil and gas. American Enterprise Institute for
Public Policy Research.
Ciarreta, A. and Nasirov, S., 2012. Development trends in the Azerbaijan oil and gas sector:
Achievements and challenges. Energy Policy, 40, pp.282-292.
Ghandi, A. and Lin, C.Y.C., 2014. Oil and gas service contracts around the world: a
review. Energy Strategy Reviews, 3, pp.63-71.
Hiatt, S.R., Grandy, J.B. and Lee, B.H., 2015. Organizational responses to public and private
politics: An analysis of climate change activists and US oil and gas firms. Organization
Science, 26(6), pp.1769-1786.
Hu, D. and Xu, S., 2013. Opportunity, challenges and policy choices for China on the
development of shale gas. Energy Policy, 60, pp.21-26.
Keil, K., 2014. The Arctic: A new region of conflict? The case of oil and gas. Cooperation and
Conflict, 49(2), pp.162-190.
Killing, P., 2012. Strategies for joint venture success (RLE international business) (Vol. 22).
Routledge.
Mitchell, J., Marcel, V. and Mitchell, B., 2012. What next for the oil and gas industry?. Chatham
House.
Ovadia, J.S., 2012. The dual nature of local content in Angola's oil and gas industry:
development vs. elite accumulation. Journal of Contemporary African Studies, 30(3), pp.395-
417.
Pinkse, J. and Van den Buuse, D., 2012. The development and commercialization of solar PV
technology in the oil industry. Energy Policy, 40, pp.11-20.

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Qz, 2017, China created a new terrorist threat by repressing secessionist favor in its western
frontier, Assessed on 23rd October 2017, https://qz.com/993601/china-uyghur-terrorism/.
Ritzcarlton, 2017, The history of Ritz Carlton hotel company, Assessed on 23rd October 2017,
http://www.ritzcarlton.com/en/about/history.