Formulating and Implementing an Effective Strategy

Added on -2020-02-05

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STRATEGY
TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
INTERNAL AND EXTERNAL FACTORS...................................................................................3
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
ILLUSTRATION INDEX
Illustration 1: Fluctuating oil prices from 2007 to 2016 .................................................................4
Illustration 2: Total deals in sector from year 2014 to 2016............................................................6
Illustration 3: Total deals in countries between 2014 to 2016.........................................................8
Illustration 4: Total fluctuation in M&A deals in oil industries between 2014 to 2016................11
Illustration 5: Top ten upstream deals in 2016...............................................................................12
INTRODUCTION
Strategy is a set of activities that are to be mostly structured and implemented with a
purpose to attain the expected forms of results by placing better techniques and methods to
acquire the attention of the market (Ben‐Amar and McIlkenny, 2015). Similar to this, the report
is also providing information on the factors and methods of formulating and implementing an
effective strategy which is capable of overcoming the plans and objectives that are to be
achieved by them.
INTERNAL AND EXTERNAL FACTORS
According to the study of Grant (2015), it has been assessed that for developing an
effective strategy for an organisation, they need to analyse the situation in order to determine the
internal and external factors. Both the factors would help the managerial team of organisation to
formulate strategy for accomplishing the desired forms of targets. The internal factors are present
within the firm which are highly responsible to impact the management and their business
activities from internal aspects. On the other hand, the external factors are determined as the
elements that are existing in the extrinsic environment of the organisation. Both of the factors
have great impacts on the overall working and functioning of the business. On the contrary to
this, the research made by Teece (2010), stated that the internal and external are the factors
which generally affects the operational and functional processes of the firm. Thus, it is
significant for the management team to assess such factors before planning any strategy.
In that context, the energy sector in one of the most leading and earning market for many
corporates and business geeks. Many companies invest their money, capital and share funds
within the cited sector. The emerging market of energy sector has motivated and attracted
numerous oil companies to be a part of it. But, in the recent search made by Doyle and Von
Windheim (2015), witnessed that the oil companies are facing a great impact of falling price rate
which creates various types of difficulties. The rising number of troubles and problems has
provoked them to identify the market needs and requirements, analyse the situation for
determining the factors that could be consider as the main areas and elements to formulate
strategies. The research made by Chadwick and Cashen (2015) addressed that the most common
and highly preferred techniques for stabilising their business in the energy sector is merging and
acquisition. The reason is specified as it reduces the influence of negative impacts and helps the
companies in accessing new markets, acquiring new customers and generate better forms of
results.
In that respect, the management of oil companies should be capable of addressing the
entire kinds of internal and external factors that are responsible to impact the strategy defined by
them. For this, they should conduct any strategic and efficacious analysis so that both the factors
are appropriately addressed with their number and level of impact (Hassan and Kouhy, 2015).
Illustration 1: Fluctuating oil prices from 2007 to 2016
(Source:Olson, Slater and Hult, 2005)

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