Strategic Analysis of INPEX: SWOT and PESTLE Analysis

Running head: STRATEGIC ANALYSIS OF INPEX
STRATEGIC ANALYSIS OF INPEX
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STRATEGIC ANALYSIS OF INPEX
Introduction
Inpex Global is a dynamic and determined part of the Inpex Corporation which is a
leading and independent global producer and explorer of gas and global oil. The organization
is a part of the business community in many countries of the world for greater than 30 years.
Inpex has been able to deliver economic benefits and local jobs in the regions like, Japan,
Indonesia, Eurasia. The headquarter of the organization is located in Perth and it has its
offices in Darwin, Broome, Northern Territory and Kimberly (Inpex.co.jp. 2018). The
portfolio of Inpex Corporation include its flagship project named, Ichthys LNG Project. The
vision of the organization is mainly to become the top international gas and oil corporation in
the industry. Natural gas is the core of business and Inpex has the aim to grow inti the
integrated energy related organization with the help of its contribution to the stable supply of
energy (Inpex.co.jp. 2018).
Organizational Structure of Inpex
The organizational structure of Inpex Oil and Gas is functional in nature. The efficient
team of the organization works under the CEO of the organization. The directors of the
organization work directly under the CEO and the managers of the various departments
operate under the directors. The operating personnel further operate under the managers of
the various departments of the company (Anifowose et al., 2016). Inpex Oil and Gas employs
more than 3000 employees on a global basis. The various managers are responsible for the
operations in different countries. The company has a technical team which is knowledgeable
and efficient in nature. The relationships between the managers and the employees have been
the major factors which have affected the operations of Inpex (Badiru & Osisanya, 2016).

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STRATEGIC ANALYSIS OF INPEX
Internal analysis of Inpex based on SWOT
Strengths – The project portfolio of the organization is diversified in nature which
helps it gaining high dividends and further get a competitive advantage in the industry. The
operational efficiencies of the organization have been able to provide them with huge levels
of operational profits. The strong focus of the organization on research and development have
provided it with a technical edge over the other companies (Bansal & DesJardine, 2014). The
revenues and the net profits of the organization have always been high. The employee base of
the organization is more tham 3000 and it has its operations in almost five countries.
Weaknesses – The decline in the production of natural gas has led t huge losses for
the organization and the revenues have also decreased. The growth that has occurred in the
usage of renewable resources have also caused losses to the revenues of Inpex. The non-
conventional sources of energy are being promoted on a large scale, which are able to affect
the revenues of the organization (Bjerga & Aven, 2015).
Opportunities – The expansion related initiatives that are takedn by the organization
has given it a wider reach and increased its potential as well. The growth that is experienced
in the demand for global energy has been able to provide the profits to the company. The
medium and the long-term business related strategies of the organization have been able to
generate profits to the organization. This has also strengthened its position in the market
(Cavusgil et al., 2014).
Threats – The competition that is faced by Inpex in the oil and gas industry is also
quite high. There are other organizations in the market which have greater amounts of
financial resources, geographical reach and credit access. The operations of the organizations

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STRATEGIC ANALYSIS OF INPEX
in this sector is based on the federal and the state governments of the countries where they
operate (DaSilva & Trkman, 2014). The fluctuations that take place in the prices of gas and
oil in the countries can also impact the operations of this organization in an adverse manner.
The natural disasters can also cause huge losses to the revenues of Inpex (Ferreira et al.,
2014).
External analysis of Inpex based on PESTLE
Political factors – The business environment in Australia is safe and stable for the
operations of any type of organization. The political environment of the country is stable and
is welcoming for the operations of business organizations belonging to any sector. The oil
and gas sector of Australia has shown booming growth and gas further affected the operations
of organizations like Inpex in a positive manner (Ford, Steen & Verreynne, 2014). The
country has a growing economy and stable political environment for business. The country
also consists of educated, skilled and multi-lingual population.
Economic factors – The prices of the properties are higher in Australia as compared to
the levels of income. The population of the country is growing and incomes are rising further.
The growth rate of the Australian economy is also quite high and the GDP of the country is
higher as compared to that of UK. The unemployment rates in the country is also low. This
stable economy of the country has helped in the further if growth of Inpex (Frank et al.,
2016).
Social factors – The changes that have occurred in the social trends of Australia have
affected the revenues of Inpex. The society of the country is divided by three class4esw
which include, the working class, the middle class and the upper class. The rise in the people
belonging to working class have further increased the growth rates of the organization in
Australia (Klettner, Clarke & Boersma, 2014).