Contemporary Developments in Business and Management: Lukoil Report

This report provides a comprehensive analysis of Lukoil, an oil and gas company, focusing on contemporary developments in business and management. The report begins with an introduction to Lukoil's business operations and objectives. Task 1 delves into the external influences on the company, including a PESTEL analysis that examines political, economic, social, technological, environmental, and legal factors. It also explores Porter's Five Forces to understand the competitive landscape. Task 2 examines the marketing communication mix and its impact on Lukoil's policies and decision-making processes. The report evaluates the effectiveness of the organization's responses to external factors and offers recommendations for improvement, including strategies for marketing and customer attraction. The report concludes with references to the sources used.

Contemporary
Developments in
Bussiness and
management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Explanation of the external influences on the company and their impotence in for the
company......................................................................................................................................3
TASK 2............................................................................................................................................5
Definition of the marketing communication mix and their influences on the polices and
decision-making of the company................................................................................................5
Critically evaluate the effectiveness of the organizational response...........................................7
Demonstration of the some areas in the company for the improvement in the response............9
CONCLUSION .............................................................................................................................10
REFERANCES..............................................................................................................................11

INTRODUCTION
The company and coordination of the business activities in order to achieve their business
objectives and goals (Abdulahi and Aykan., 2016). Management consist with the interlocking
functions to creating a polices for the company, controlling, planning, organizing resources of
the company in order to achieve the objectives of the polices which is set for the company.
This report will cover the Lukoil company for the case study which is oil company and
their headquarter is in Russia. They sell petroleum, natural gasses and many more. This report
will provide PESTEL analysis of the Lukoil company and explain how factors such as political,
environmental, economical, technological etc impact on the company in the both ways positive
and negative. This will be covers in the task one and in the task two this report will conclude
marketing communication mix and explain that what are the influence of marketing
communication mix in companies polices and decision-making. It will also critically evaluate
the effectiveness of the organizations response and in the end this report will provide
recommendation for the improvement in the response of the company and it will provide proper
solution and way in which company can use it for the marketing, and they can attract customers.
TASK 1
Introduction
This task will cover provide definition of the internal and External environment. It will
also provide pastel analysis of the Lukoil company to understand external influence and their
importance for the company. This report will conclude factors such as political, economical,
social, technological, environmental and legal factors.
Explanation of the external influences on the company and their impotence in for the company
Internal environment
Internal factors refers to the events, culture and factors within the company which has a
ability the companies decisions. Especially the behaviour of the HR.
External factors
External environment is composed with the outside factors. These factors have huge
impact on the operations and activities of the company. These factors are divided into two parts
which is micro and macro environment.
PESTEL analysis of Lukoil company

PESTEL Analysis is proper framework which is helpful to understand external factors
which affect the profitability of the company. There are some factors such as Political factor,
economical factor, Social, technological, environmental and legal. Lukoil company should aware
about those factors to control risk.
Political Factor
Political factor can impact on the probability of the company and survival of the Lukoil
company. Company have both positive impact and negative impact. Lukoil company is
multinational company, and they are selling gas in all over the world, so they have to pay taxes
to each and every county's government (Brewster., 2019). If any countries Tax structure change
then it can effect the probability of the Lukoil company, and they have to increase their prices
of their product, but on the other hand many country's government encourage gas companies, so
they can can provide employment to their country people and government also give benefits to
the companies. This can help Lukoil company to achieve growth, and they can earn more
revenue.
Economic Factor
Economic factored such as unemployment rates can effect the Lukoil company. There
are many countries where unemployment rates are every high and prole are ready to work in
their company in lower salary. This can be effect their growth, and they can get skillful workers,
and they have to pay minimum wages (Derous and De Fruyt., 2016). Countries such as Africa,
Pakistan etc have low employments rates so their works get ready to work in lower wages but if
any county's employment rate is high it means they are well-educated and Lukoil company have
to pay more salaries to them, and they have to pay their salaries if company is suffering from
losses. This is an economical factor and there are many other factors which can also effect the
company such as inflation rates, GDP rates etc.
Social factors
Distribution of the class in the population is of paramount importance; Lukoil company
will not able to advertise and promote their premium products to the community, it most of the
people belong from the middle class family. They will not able to purchase those products
because they will not able to afford, so they would have to relay with the niche marketing.
Lukoil company also providing employment to the needy people and this shows that they know
what's their social responsibility. This is creating customers loyalty, and they are also gaining

competitive advantages in the market (ILIEV., 2017). It is important for the every company top
understand their social responsibility because it is also impotent for the company growth and no
company can be successful without understanding their social responsibility.
Technological Factor
Technological factor can have negative impact on the Lukoil company if they do not
follow new trends in the technology. Technology always attract to the customers and this factor
also make any work easy and better and help company to achieve high competitive growth, and
they can show their presence in the market. Lukoil company is following technology and their
new trends. They also provide credit card facility in their petrol pump and many digital ways.
Customers can use this facility to pay their payment for the services and product. Most of the
people do not carry cash in their pocket so it can be useful for those people, and they can pay
degitalloy and they can take product and services. This technology6 help this company to take
high growth in the market, and they have good reputation in the Oil and Gas industry.
Environmental Factor
Lukoil company is also having transportation business and weather conditions can
impact on their business. They can have delay in the delivery dates and this can effect on their
relationships with the customers and also can impact on the company product and resources.
Climate change world also render some product useless For example, in the case of textiles, in
countries where the winter has become very mild due to Global Warming, warm winter clothes
have much less of a market. For the Lukoil company understand their responsibility towards the
environment, and they also plant trees nears their company and gas stations so people can take
fresh air and this also make good image in the customers mind. This is affecting their business
positively , and they have make good reputation in the market by planting trees near their gas
station (Kumar, Garwal and Kumar., 2017). Currently they have make huge profit as compare to
the previous year.
Legal Factor
`lows such as intellectual property laws and other related to the data potential laws are
mentioned before, In the place to save the patents and ideas of the companies they are only
profiting because of this data information (Leonidou and Hultman., 2019). If there is any
likelihood that data is stolen , then Lukoil company have high chances of the frailer, and they
can also loose competitive advantages in the market.

Lukoil company is following all the legal rules and labor laws of the government, and
they pay minimum wages to their employees, so they can work together and company can
expand their business more.
1)Porters 5 forces of Lukoil company
Threats of new entrants
Entry in this industry required amount of capital and investment in the resources. It is
important for unique product and services to show presence in the market.
Threat of substitution
Lukoil cannot be successful in the business if they are selling same product which is
already sell by the other companies. They should have some uniqueness in their product or
services.
Rivalry among existing firms
Rivalry among the existence firms shows the competition in this industry (Majid and
Mahmud., 2019). Competition is very high and Lukoil company can face strong competition
from the rival firms.
Bargaining power of supplier
It is important for Lukoil company to make good relationship with their supplier, so
they can add more value in their product.
Bargaining power of customers
Customers want quality product from the seller in low price range, if number of
competitors will increase then it will also affect on the customers bargaining power.
2)Porters five of Seplat petroleum development company
Threats of new entrants
The economies of scale are fairly difficult to achieve in this industry in which Seplat
petroleum development company is working. This makes costlier production for the new
companies.
Threat of substitution
There are very less substitute products where Seplat petroleum development company in
the market where they are operating their business.
Rivalry among existing firms

There are very few competitors where Seplat petroleum development company operate
their business.
Bargaining power of supplier
it is easy for the Seplat petroleum development company to change the supplier because
of less differentiation in the product.
Bargaining power of customers
Area where Seplat petroleum development company orates have very less petroleum
company. It means buyers have very few choice to choose.
TASK 2
Introduction
This task will provide proper definition of the marketing mix and why it is important for
the Lukoil company. This report will explain by liking the Lukoil company. In the end of this
task report will analyze how marketing mix of the Lukoil company influence on the companies
decision-making process and polices of the company.
Definition of the marketing communication mix and their influences on the polices and decision
making of the company
Marketing Communication Mix
there are main five elements of the marketing communication mix which is sales
promotion, personal selling, public relation, advertisement, and direct marketing. Company
advertise their product in the market, so they can make new customers and achieve their business
objectives and goals. Without marketing Lukoil company cannot be successful in their business .
In the marketing communication plays important role because communication helps customers to
understand what are specification of the product and how this can be effective for the customers.
Markets of the Lukoil company can attract customers by the effective communication, and they
can create customers loyalty. They just need to know where they should communicate their
message, and they also have to see customers gender and their age, behavior, so they can use
marketing communication to attract them to buy their product and take Lukoil company's
services. It will help them to achieve their business objectives, and they can achieve high growth
in the market.
Marketing communication Mix influence on the company polices and decision-making

Marketing communication mix have huge influence in the Lukoil company polices and
decision-making. If in the marketing trends and change and demand of the customers change
then they have to make new polices for the marking, and they have to choose right ways to do
marketing (Majid and Mahmud., 2019). They have to understand the needs of the customers and
according to that they have to change their policies, and they have to take new decision to satisfy
their customers. They have to read the market and understand what customers actually need and
according to that they have to develop their product and their new designer who can make new
design of the products and all. After the change in the polices and taking decision for the
company. Marketing team of the Lukoil company advertise their product to the customers. In the
winter session most of the people do not go outside the home, and they spend their most of the
time at the home. In this situation company have to implement new polices in their company, and
they have top make new strategies for the customer attraction. They should use digital marking
tool for the advertisement, so they prole can see their ads on online.
When company bring new product to enter the new market, company have to change in
their polices, and they have to take decision related to the product marketing (Moritz and et.al.,
2020). Lukoil company have to find ways to promote their product and proper tools for the
marketing. They have to show what their product is all about and how it will help to satisfy
customers demand. Their product should be different from other product, and they have to
provide quality product in low price range, so they can take competitive advantages in the new
market, and they can show their presence in the market, and they can also make good reputation
and new customers. In this kind of situation effective communication plays I impotent role, they
have to convene people to buy their product and sanctification of the product.
There are two ways they can advertise there are 5 elements of the marketing
communication mix which Lukoil company can use for the new product promotion.
Advertisement is one of them they can give advertisement on the T.V or social media platform
for their product promotion. In this method company target customers according to their ages
and intersent and this one of the effective way of advertisement, personal selling and direct
marketing sometimes integrated with the direct marketing element. However, many companies
make such extensive use of a sales force that it is important to consider this component
distinctly. Discount and promotion – they can provide huge discount on their new product so
customers attract and buy their product (Nudurupati, Tebboune and Hardman., 2016). When

their product get popular in the market then they can rise prices of the product, and they can
easily enter the target market. This is the best way to enter in market with new product. Public
relation and messaging- Public relations is sometimes somewhat similar to advertising in that
much of it involves messages communicated through mass media. The major difference is you
don't pay for the time or space for the message. Event and having presence- they can organize
an event though the event company and promote their new product in the market so customers
can get direct message, and they can understand the specification of the product. Lukoil
company have to host the event and for that they have to take help of the vent company, so they
can promote their new product ion the market, and they can take entry in the new market with
new product (Onoyama And et.al., 2017). Most of the companies use this marketing
communication mix element to advertise their product, and they can show their presence, and
they can easily enter the new market.
Critically evaluate the effectiveness of the organizational response
Marketing communication mix can be helpful for the Lukoil company so solve their
internal and external issue and help them to promote their business more effectively and better.
This will help company to expand their business, and they can solve their problem as well which
can be related to customers satisfaction, needs of the customers and their demand and many
other ways. Company can achieve growths and it will affect positively on Lukoil company
business (Renwick., 2018). There are seven common methods of the marketing communication
mix which is useful for the company, and they can take positive advantages.
Advertisement
this is the paid form of the representing services, ideas and goods by the influence.
Lukoil company can use famous influence for their product and business promotion. They can
target their audience according to the interest of the customers. They make a proper message for
the customers and explain why people should take services from the Lukoil company and what
are the benefits from their product and services. This will help them to advertise their product
through the influence and the followers of the influence will attract towards the Lukoil
company and will take services of the company.
Public relationships
the main purpose of the public relation is to create goodwill of the Lukoil company
with the public, and they try to reach to the customers segment and public (Renwick And et.al.,

2016). This happens through the earned or unpaid promotion opportunities such as media
coverage , awards functions and giving presentation in the events or any fictions. This is free
promotion and Lukoil company can many befits from the public relation so it is impotent for
them to work for the charity and many other ways like planting trees for the public health cares.
This make good relation with the company, and they get free promotion through the media and
public.
Personal selling
In this promotion marketers of the Lukoil company reach to the customers, and they
communicate with them explain their product specification and services provided by the
company (Stan and Amalia-Gianina., 2019). This help to make good relation and goodwill for
the company, and they get customers satisfaction and customers loyalty. Marketers of the
company communicate with the customers face to face and ask about the product, and they use
this product if they find they have any problem in services and products then company can
develop their product according to the demand of the customers.
Sales promotion
they can provide huge discount on their new product so customers attract and buy their
product. When their product gets popular in the market then they can rise prices of the product,
and they can easily enter the target market. Sale help to boost the product and services
promotion. Customer always attract from the services and product which they can get in the sales
because they get product and services in the low prices and this sales is only for the limited time.
It can help Lukoil company to provide satisfaction to their customers.
Direct Marketing
In this method company sell their product and services direct to their customers rather
than going to the retailers. Marketers use mailed brochures, catalogs, telemarketing and
promotional materials and shopping channels on the television. This all is direct marketing tools
but Lukoil company sell gas and oil so there is no use of this in their company.
Digital Marketing
This is one of the best way to promotion, and they can provide better help to the
customers issue (Virigineni and Rao., 2017). Lukoil company can remove privacy pages from
their customers so customers can understand the company motives better and clearly. Digital
marketing covers a lot of ground in the marketing area , from Web sites to search-engine, social

media marketing to the blogs in the websites . Digital marketing tools and techniques evolve
rapidly with technological advances and this best way to reach to the targeted audience, but this
umbrella term covers all the ways in which digital technologies are used to market and sell
company services, product, ideas, and experiences. They can use many tools for the digital
market and get success and better promotion of their services and products. Lukoil company
can get high market advantages, and they can save the time and cost both for the company.
Guerrilla Marketing
This is new tool in the marketing communication mix which involves (Wittenzellner and
Teske., 2018), innovation, unconventional and usually the low cost marketing tactics to engage
consumers in the activities of the marketing, this can be helpful for the Lukoil company to gain
attention, and they can achieve more exposes in the market of their services and products. This
strategy is an experimental and this creates a memorable experience or novel situation for the
customers so customers can connect with the Lukoil company's services and product or their
brand.
Demonstration of the some areas in the company for the improvement in the response
There are some areas such a digital marketing where Lukoil company should focus, and
they can can take advantages from this marketing communication tools. They can provide
survey for the customers digitally, and they can understand which age group people are more
interest in their company product, and they can also understand the needs and demand of the
customers (Yi., 2016). According to the demand of the customers Lukoil company can develop
their services and their products.
Website design can be a good solution for the company to attract customers, they should
appoint good blog writers who can write a attractive blog for the Lukoil company which can
help company to come in top researches in the search engine. This will help company to achieve
market growth, and they can make their name in the market and good reputation in the market.

Overview of Lukoil company
Who they are-
Lukoil company is a Russian multinational energy corporation who are specialized in
the transport, extraction and production of the natural gases, petroleum and petroleum products.
History
This company was established by the USSR on 25 Nov. 1991 this company's name is
combination of the LUK. The central figure of Lukoil company founder was the soviet deputy
minister of oil production Vagit Alekperov.
Location
Lukoil company was having more than 5800 location in 2014 and currently more than 105,000
people are working in Lukoil company.

Investors
Top managers of Lukoil company owned the largest stage of this company which is
more than 30 percent of the company shares. 20.6 percent by CEO, Conocophillips owned 19.26
percent shares. Remain shares freely traded on the London stock exchange.
CONCLUSION
As per the report has covered the Lukoil company for the case study which is oil
company and their headquarter is in Russia. They sell petroleum, natural gasses and many more.
This report has been provided PESTEL analysis of the Lukoil company and explain how factors
such as political, environmental, economical, technological etc impact on the company in the
both ways positive and negative. This report has been covered in the task one and in the task
two this report has been concluded marketing communication mix and explain that what are the
influence of marketing communication mix in companies polices and decision-making. It also
has been critically evaluated the effectiveness of the organizations response and in the end this
report has been provided recommendation for the improvement in the response of the company
and it has been briefly provided proper solution and way in which company can use it for the
marketing, and they can attract customer.

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