Strategic Management in Oil and Gas Industry in Nigeria

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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1STRATEGIC MANAGEMENT
Executive Summary
The report is built on the analysis of the business based model which can be implemented by
an organization in the oil and gas business. The analysis is based on the study of the external
environment based factors which affect the organization in the industry. The industry has
been analysed with the help of the Porter’s five forces framework. SWOT framework is used
for examining the internal environment of the company. The future opportunities provided to
the organization is an important part of the report. The report has been concluded by stating
that the oil and gas based organization in Nigeria can increase the revenues with the help of
effective natural resources.

2STRATEGIC MANAGEMENT
Table of Contents
Introduction....................................................................................................................3
PESTEL analysis of Oil and gas industry in Nigeria.....................................................3
Porter’s five forces analysis of Oil and gas industry in Nigeria....................................6
SWOT analysis of Oil and gas business........................................................................7
Marketing based analysis...............................................................................................8
Description of the business model.................................................................................8
Advantages and disadvantages of the business model...................................................8
KPIs of the Oil and gas business in Nigeria...................................................................9
Conclusion......................................................................................................................9
References....................................................................................................................10

3STRATEGIC MANAGEMENT
Introduction
The natural resources which are possessed by Nigeria are able to affect the oil and gas
based industry in a huge manner. The country has acquired the position of 10th biggest
producer of oil in the entire world. Nigeria is the third biggest manufacturer of oil in Africa as
well. More than 90% of the total foreign exchange based activities are based on the oil based
revenues. The daily levels of production of Oil are thereby limited with the help of the OPEC
quota based reductions. The production of oil in Nigeria is thereby based on the response
which is provided to the oil supply in the entire world (Ablo 2015).
The report will be based on the analysis of the external environment based on the Oil
and gas industry of Nigeria. The Oil and gas business based industry of the country will be
analysed with the help of Porter’s five forces framework. The marketing analysis will be
made with respect to the business model of the organizations operating in the industry.
PESTEL analysis of Oil and gas industry in Nigeria
The exploration of the Oil and gas based industry in Nigeria is based on different
factors and aspects. The major factors which thereby need to be analysed in order to
understand the industry include, the political factors, economic factors, social factors,
technological changes, legal condition and environmental factors. The industry can thereby
be analysed in an effective manner by studying these aspects in a detailed manner (Badiru
and Osisanya 2016).
Political factors – Political issues have always been able to affect the rich oil based
states in Nigeria. The instability which has been experienced in the political condition of the
country is also considered to be a major factor which is able to affect the industry. The
corrupt nature of government officials is also considered to be a factor which has a major
effect on the organizations which operate in the industry (Ablo 2015). The youth in Nigeria