Management Assignment: Oil & Gas Industry
Added on 2020-06-06
2 Pages3960 Words35 Views
Kelland, M.A., 2014. Production chemicals for the oil and gas industry.CRC press.Merrow, E.W., 2012. Oil and gas industry megaprojects: Our recenttrack record. Oil and Gas Facilities, 1(02), pp.38-42.Inkpen, A.C. and Moffett, M.H., 2011. The global oil & gas industry:management, strategy & finance. PennWell Books.REFERENCES Oil and gas industry is also known as petroleum sector whose mainobjective is to explore, extraction, refining and promotion of petroleumgoods. However overall industry is segmented into three different partssuch as; upstream, midstream and downstream. Mainly, this poster isgoing to highlight the overview of four different companies in oil industryand their current positioning at marketplace with the help of Porter Fiveforce model.CairnBritish PetroleumINTRODUCTIONCompany overview:- One of the successful company in oil industry whichis listed on London stock exchange and get succeeded in establishing theirnumber of locations in several other nations. Basically, Sir Bill Gammelwas a founder of Cairn in almost 1981 who is a international Rugby playerand acquired various other companies in order to become one of the largestoperators of oil or refinery. In fact they are focussing on expansion byacquiring various other small companies for enhancing turnover of anassociation. Hence, usage of porter five force model is describing isdescribing below:- Analysis of competitors aids in designing company schemes orstrategies in order to defend company from rivalries. In fact as per porterrules it is essential to study the plan of other companies because it helps inprotecting Cairn. Porters shows that industries are expanding across internationalboundaries because of consumer demand which resulted in increase in threatfrom new entrants. However, Cairn is facing a major issue from entry ofnew companies which create a problem for selected business entity whilelaunching a new branch. Society is worrying about their goodwill due to which sometime get affected by availability of close substitutes.Absence of consumer potentiality to negotiate. Affected by raw materials suppliers of an organization becausethey are liable for offering appropriate commodity to attain set objectives orgoals. As per above data it has been analysed that current positioning of Cairn is increasing day by day which makes aids an association in enhancing image at marketplace. As per survey data it is identified that theirturnover maximized in a minimum time period by expanding current branches across the global level. BP plc is a officially denoted as a British multinational company in petroleum industry by having its headquartered in London, England and seen as a world's seven largest organization.In fact, according to survey report it has been observed that as per performance in 2012 BP is seeing as a sixth largest company because of their goods or services. However, according to past two years of report this firm was expanded across the internationalboundaries and established their branches in almost 72 countries. Therefore, turnover of an organization get increases day by day due to increment in consumer demand. According to this factor of this theory various majorcompetitors of an organization is explained in order to analysecompetition level at marketplace. For example; major rivalry ofBP are Royal Dutch Shell, Cairn and so on. As a result they arealso coming with various ideas or methods of running a businessentity which may influence the success of a company in everymanner. Oil and gas industry is growing in a rapid way due tocreation of modern world as well as few people seen it as a majorsource of income generation. Therefore, it is analysed that variousother companies are establishing their branches at Europeanmarket for gaining maximum return on their investment. Hence,in this factor of porter five forces an association can easily analysethe danger from new emerging companies in order to make plansas per requirement. Environment friendly products in oil industry is majorthreat in terms of close substitutes for BP because it aids inreducing pollution. In this sector purchasers are not having that anyauthority to bargain or to do negotiation on price.Bargaining power of supplier:- According to this factor anassociation is facing number of suppliers in order to attain their setobjectives or goals.Hence it has been analysed that in recent time BP ishaving a turnover of almost US$183.0 billion which shows theircurrent positioning at marketplace and its overall scenario. In fact,they are having a very positive goodwill due to which they getsucceeded in acquiring loyalty or trust of consumers in anappropriate manner by satisfying their needs or demands at thetime of requirement. Moreover, considered as a very a strongbrand which makes them more successful or developed. Business essential extended project
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