Organisational Structure, Internal and External Forces, Risks and Business Practice Decisions of Inpex Australia

This report discusses the organisational structure of Inpex Australia, the internal and external forces impacting their business, the risks confronting the business, business practice decisions that enhance organisational performance, and functions within Inpex that will help them in achieving its strategy.

MANAGEMENT
AND
BUSINESS CONTEXT

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Contents
Introduction...........................................................................................................................................1
Organisational structure of Inpex.......................................................................................................2
External and internal forces that impacts their business....................................................................2
Risks that is confronting the business................................................................................................4
Business practice decisions that enhance organisational performance...............................................4
Functions within Inpex that will help them in achieving its strategy.................................................5
Conclusion.............................................................................................................................................5
REFERENCES......................................................................................................................................6
Introduction
In the present business environment it is essential for any company to have proper
understanding of the ways in which they are doing their business. Companies also need to

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understand the capabilities it has and the structure it is following. Firms also need to calculate
the risk factors that are associated with their business so as to make plans for eliminating it
(Van Der Aalst, La Rosa & Santoro, 2016). They also need to make sure that they take
decision that may help in enhancing their organisational performance. Organisations have
different kinds of functions so as to achieve their business strategies. Inpex Australia is one of
the largest oil and Gas Company in Australia. It deals in the business of exploration and
production of Oil and Gas. This report highlights the organisational structure of the Inpex
Australia as well as the internal and external environment surrounding their business. It also
illustrates about the risk that is faced by the Inpex and the steps that are taken by them to
improve their performance.
Organisational structure of Inpex
A company must have an organisational structure that can support the business it is
dong (Schermerhorn, Davidson, Poole, Woods, Simon & McBarron, 2014). It must support
its mission and Vision. Inpex is an organisation that is having vision to become a global
leader in international oil and gas Exploration Company by the means of sustainable growth.
More than 2000 workers are employed under the project named Ichthyns LNG in the
Australian location. There are leaders at the top most of the company and the lower levels
there are various departments that help them in managing their work efficiently. Leaders
consist of Board of directors below which there is an executive committee. Each department
has managers that checks and assign the duties to lower level of the employees as per their
skills. Apart from this there are many other departments present in the company having
different kinds of roles like maintaining CSR, compliances committee, information security
committee etc. These departments have the role of watching every other department under
them or parallel to them.
External and internal forces that impacts their business
There are several internal and external forces that are impacting the business of Inpex
Australia. It is crucial for the company to understand their impact on their business so as to
take steps for avoiding it (Griffin & Pustay, 2012).
Some of the external forces that may impact their business are as follows:

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 Political: There are many political ties that are breaking and coming up in many parts
of the world. This has affected the business of Inpex and the oil prices and the tax
rates are always dependent in the political relations between the two nations. The
policies regarding the extraction and production of oil and gases have changed in
Australia which is directly or indirectly affecting the business of the firms.
 Economic: In various parts of the world economic instabilities can be noticed. This
also had the effect on the Australian economy (Maylor, Blackmon & Huemann,
2016). This has forced the companies to make sure that they have proper economic
policies to ensure higher profits. The slowdown in the American market and the poor
performance of European economy has resulted in many kinds of loses for the
company.
 Social: Society is changing and so is their demand. This change in the demands has
forced companies to change their operational mechanism. Requirement of the oil and
gas have increased. This has provided an excellent chance for the cited company’s
growth.
 Technological: Many new kinds of technologies are coming up in the oil and gas
extraction. This is forcing the oil and gas firms to make advancements in technologies
at regular intervals of time. It will help the firm in staying ahead of their competitors.
 Environmental: Various governments all around the world have forced the companies
to embed an operational mechanism that favours the environment. New
environmental policies all around the world have forced the leaders of Inpex Australia
to think about the sustainable production of oil and gases.
 Competition: The competition in the industry has risen to alarming level and hence it
has become difficult for the companies like Inpex Australia to attain higher growth
rates. Many new firms have come up in the field of renewable energy which is an
alternative of the non-renewable energy sources (Marschan-Piekkari & Welch, 2011).
Inpex Australia also needs to invest heavily on the technologies related to the
renewable resources.
Internal forces
 Increasing demands of employees: The demands of the employees especially who are
working at the off-shore sites have increased considerably (Singh, 2012). As
employee satisfaction is important for Inpex Australia hence companies have to fulfil

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these. In the increasing price war this is becoming burden on the financial assets of
the firm.
 Resources: Maintaining the quality of resources they have in a major challenge
especially in terms of human capital they have. Inpex Australia has to invest a lot on
the training program so as to maintain the quality of operations.
 Diversity management: Inpex Australia has employees from various parts of the
world. Managing such diversity at the workplace is a challenge for the company. It is
essential for the firm to make sure that they have excellent policies that help them in
managing such a diverse workforce or otherwise it may result in poor performance for
the employees (Bryman & Bell, 2014).
Risks that is confronting the business
There are several kinds of risks that are confronting the business of the firms
(Chalmeta & Palomero, 2011). It is essential that company understand these risks and takes
actions to remove these.
 Increasing inflation: Inflation rates have increased in many parts of the world (Carroll
& Buchholtz, 2014). This has forced Inpex Australia to sell their products at higher
prices. In the increasing competition this is a major challenge for the company.
 Limited amount of natural resources: The amount of natural resources is limited and
hence these are getting depleted at very faster rate. In such situation company needs to
have a sustainable business plan for the utilisation of resources.
 Shift towards the renewable resources: Companies are advancing towards the use of
renewable resources. This has increased the risk for Inpex Australia as they have to
think about moving towards renewable resources which can be very costly for the
firm.
Business practice decisions that enhance organisational performance
There are many types of decisions that are made by the management of Inpex so as to
enhance the performance of the organisation. This has also forced the companies to make
sure that they enhance their organisational performance.
 Training: They have used many kinds of training sessions for their employees. This
helps them in increasing the skills and capabilities of their employees (Wheelen &
Hunger, 2011). It also helps the company in increasing efficiency and performance of
their employees.

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 Operational management: The operational management of the company has been very
useful. They have been using the strategies like lean production etc. to enhance the
efficiency of the workplace which directly affects the operational management of
Inpex Australia.
 Quality: They have been using quality management tools like Six sigma and TQM for
maintaining quality of their products and services. This helps them in competing with
other rivals in terms of quality they delivers.
 Cross cultural development program: They are using this program for managing
diversity at the workplace. This program was highly beneficial for managing the
diversity at the workplace.
Functions within Inpex that will help them in achieving its strategy
There are various functions within the organisation which will help in achieving their
set strategies. Some these functions are as follows:
 Human resource management: This function within the organisation has a very
important role in managing the diversity which is essential for the growth of the firm.
HRM helps in increasing the productivity of the employees (David, 2011).
 Marketing: It is an essential function within an organisation that has many kinds of
role. The most important role of marketing unit is to promote the brand name of the
company. It helps in enhancing the sale of the company’s products which is necessary
for their long term growth (Inpex Corporation, 2018).
 Research and development: This function within Inpex Australia has the role of
making research which was necessary for the growth of the company. This helps in
making sure that company keeps itself ahead of other competitors in the market. It is
necessary for bringing innovation at the workplace. It will also play very crucial role
in shifting towards renewable energy resources.
 Information and communication technology: This department has the role of
managing all the communication mediums as well as the other technologies related to
IT. This helps them in bringing efficiency in the work process.
 Finance: This department plays a very vital role in achieving strategies of the
company. Since implementation of any strategy totally depends on their financial
constraints. Hence this department has the role of managing financial assets which is
necessary for achieving their strategy.

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Conclusion
From the above report it can be concluded that Inpex Australia has a much managed
organisational structure that helps them in conducting all their operations smoothly. There are
many internal and external forces that are surrounding the business of Inpex Australia. This
has forced the company to make plans that could help in changing these factors in the favour
of the company. Apart from this there are several risk confronting the business of the firm.
Inpex Australia is taking many kinds of decisions that may help in enhancing their
performance. Apart from this there are many functions within an organisation that may help
in achieving the strategy.

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REFERENCES
Bryman, A., & Bell, E. (2014). Research methodology: Business and management contexts.
Oxford University Press Southern Africa.
Carroll, A., & Buchholtz, A. (2014). Business and society: Ethics, sustainability, and
stakeholder management. Nelson Education.
Chalmeta, R., & Palomero, S. (2011). Methodological proposal for business sustainability
management by means of the Balanced Scorecard. Journal of the operational
research society, 62(7), 1344-1356.
David, F. R. (2011). Strategic management: Concepts and cases. Peaeson/Prentice Hall.
Griffin, R. W., & Pustay, M. W. (2012). International business. Pearson Higher Ed.
Inpex Corporation, (2018) About Inpex. [Online]. Retrieved from:
http://www.inpex.co.jp/english/company/organization.html.

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Marschan-Piekkari, R., & Welch, C. (Eds.). (2011). Rethinking the case study in international
business and management research. Edward Elgar Publishing.
Maylor, H., Blackmon, K., & Huemann, M. (2016). Researching business and management.
Palgrave.
Schermerhorn, J., Davidson, P., Poole, D., Woods, P., Simon, A., & McBarron, E.
(2014). Management: Foundations and Applications (2nd Asia-Pacific Edition). John
Wiley & Sons.
Singh, P. K. (2012). Management of business processes can help an organization achieve
competitive advantage. International Management Review, 8(2), 19.
Van Der Aalst, W. M., La Rosa, M., & Santoro, F. M. (2016). Business process management.
Wheelen, T. L., & Hunger, J. D. (2011). Concepts in strategic management and business
policy. Pearson Education India.