Knowledge Audit for Business Analysis: A Report on Eni Company

This report provides a detailed knowledge audit and business analysis of Eni Company, the sixth-largest energy company globally. It focuses on innovative approaches to facilitate projects within the company, referencing Eni's 2012 annual report and its adherence to international integrated council principles. The analysis covers Eni's distinctive approach to sustainable value creation, including operating resource efficiency, talent retention through sustainability, and balancing short- and long-term objectives. It also examines Eni's business model, competitive environment, strategies, and integrated risk management processes. The report further emphasizes the connectivity of information within the company, highlighting the importance of cooperation, integration, innovation, inclusiveness, responsibility, and excellence in achieving sustainable values. Key strategic guidelines, asset distribution along the value chain, and adherence to ethical standards are also discussed.

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KNOWLEDGE AUDITS FOR BUSINESS ANALYSIS
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Executive summary
This report focuses on innovative ways which can facilitate a project like Eni Company. Eni
Company is the sixth largest energy company on earth. It’s characterised by a strong position
in gas and oil value. This report contains the contents of Eni’s 2012 annual report which was
issued in May 2013 and prepared according to the principles which were developed by the
international integrated council. The analysis which is presented in this report explains the
most innovative elements and contents of the company, the integrated risk management
model, the competitive strategy and environment and how the company is governed.
Table of Contents

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1.0 Introduction..........................................................................................................................4
2.0 Approach to Sustainable Value Creation.............................................................................5
2.1 Operating resources efficiency.........................................................................................6
2.2 Sustainability retains and attracts the best people............................................................7
2.3 Government actions Public forums and are driving sustainability...................................7
2.4 Balancing short- and long-term objectives.......................................................................8
2.5 To Maintain and Develop In-house Competences...........................................................8
3.0 Business Model....................................................................................................................8
4.0 Competitive Environment and Strategy.............................................................................10
5.0 Integrated Risk Management and Process.........................................................................12
6.0 Connectivity of Information...............................................................................................13
7.0 Conclusion..........................................................................................................................13
8.0 References..........................................................................................................................14
9.0 Roles and Responsibilities.................................................................................................16

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1.0 Introduction
Eni Company is considered to be the sixth largest energy company in the universe. Presently
it is actively operating in over 90 countries with approximately 7800 employees.
The major objective of this report is to come up with an innovative proposal which can
facilitate the development of a project like the Eni Company. In the recent past, Eni Energy
Company has witnessed the evolution of corporate reporting as a result of the expansion of its
operation (Adrian, 2017, p. 234).
The analysis is mainly focused on the distinctive approach of the company to the sustainable
value creation. According to the International Integrated Reporting Council, an integrated
report is a brief communication on the organisation’s governance, strategy, prospect and
performance in relation to its external environment which results into the creation of short-
term, medium and long-term values. The financial providers to the organisations in most
cases are seen as the primary users of the integrated report and due to that the integrated
report should be designed in such a way to benefit all the stakeholders in the company who
include the customers, employees, suppliers, local communities, business partners, policy
makers and the regulators who have interests in the organisation’s ability to create more
values over a long period of time (Bhattacharyya, 2015, p. z23). The main goal of the
integrated report is to enhance the stewardship and accountability concerning the wide basis
of the six categories of capital and promotes a clear understanding of their interrelationships.
The integrated report is designed in such a way that it can support the integrated decision
making, actions and thinking which is aimed at the creation of the sustainable values for
stakeholders.
According to the objectives which were to be achieved this report contains the following
sections; Approach to Sustainable Value Creation, Business Model, Competitive

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Environment and Strategy, Integrated Risk Management and Process, Connectivity of
Information, findings and conclusion of the entire structure of the report (Bullock, 2012, p.
102).
2.0 Approach to Sustainable Value Creation
Integrating sustainability into any company requires a very systematic view that considers the
universal perspective, various elements of the system and their interactions value networks.
The analysis provides a view and can be used to inform the changes which are regarding the
company business model.
In this case, the term ‘network' refers to a group of more than three companies which are
either self-initiated or which are contracted and are connected in such a way that it can
facilitate the achievement of the company’s goals. The process of interpretation of
sustainability in the network of companies lacks a systemic approach. For the companies to
focus on the improvement of environmental aspects and the social aspects to develop the
code of conducts (Caraghiaur, 2012, p. 205). The business model below shows how
sustainability can be integrated into the company.
Fig 1; Business Model Innovation for Sustainability.

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Company sustainability refers to the means which a company uses to achieve high levels of
economic growth. Also to enhance the company reputation via the distinctive approach which
facilitates the external development of the company by promoting the respect for the
environment and individuals in general through the creation of opportunities for businesses
and the local communities (Cohen, 2015, p. 67).
The company Sustainability can be created by the four strategies below.
Fig 2; schematic diagram showing the four strategies that can be used for the creation of a
sustainability value.
2.1 Operating resources efficiency
It is well known that when the reporting processes are not focused on the capital efficiency,
there are high chances that some potential sources of values are likely to remain hidden. Due

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to the traditional measure of performance such as the return on investment and the working
capital are not only considered as financially essential but also as a reflection of how efficient
the company is.
Many companies are currently struggling with environmental impacts, material security and
depletion of resources.Most of them are seeking improved and new ways of operatingin order
to improve the company performance and also boost the ability of the company to transit into
the low-carbon (Couto, 2017, p. 56).
2.2 Sustainability retains and attracts the best people
Companies are putting effort in maintaining and attracting employees who they believe can
work according to what the company does and fit easily with the culture of the company.
Most employers are faced with a great challenge in finding the right people who have to work
within all levels of the organisation. From the studies which have been carried out in many
European companies, it was found out that the main challenges which the companies are
facing were related to the quality of the employees (Facility, 2013, p. 211).
Sustainability can be a significant differentiator for the company in retaining and attracting
the right employees.The employees of the company are considered to be the main drivers of
the company sustainability because most them have a clear understanding of how the
company operates.
2.3 Government actions and Public forums are driving sustainability.
Many companies which are concerned with the agenda of sustainability have discovered that
the attitude of the public is changing in regards to the issue of sustainability. In many
countries, there is a large shift of focus by the public towards the issues of sustainability.
Regulatory changes are forcing most companies to work with the most appropriate

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management process in the area of reporting. Many nations are impressing on significant
visibility and transparency on the sustainability. The company will need to have appropriate
internal processes to look after the management issues that might have ignored the past.
2.4 Balancing short- and long-term objectives
The best companies are characterised by the ability to drive performance in the short term
while balancing with the organisation vision in that where the company is moving to and
what it needs to achieve. The ability to see this perspective from sustainability brings about
the need of balancing the long-term objectives with the short-term objectives with the main
aim of achieving company sustainability (Hawkey, 2014, p. 45).
2.5 To Maintain and Develop In-house Competences.
While aiming at developing and maintaining in-house competences the abilities and know-
how of the people of Eni are enhanced. Eni Energy Company is greatly focusing on
developing and adopting its modern technologies and ways on how to maintain the in-house
competencies. In exploration. It just means the process of decision making results in focusing
the attention on the best opportunity for exploration (Wüstenhagen, 2016, p. 32).
3.0 Business Model
A business model is used to pursue sustainable values of any given company or business
organisations which are focused on the strategic guidelines and assets which are distributed
along the entire value chain. The business model is associated with the activities which are
conducted in a framework of rigorous and clear governance rules which comply with the
highest ethical standards which have an integrated corporate risk management system. The
continuous interaction of all the stakeholders and the six distinctive drivers, i.e. cooperation,
integration, innovation, inclusiveness, responsibility and excellence. The business model is

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illustrated below.
Fig 3; Eni’s Business model.
Integration of all the activities which were along the energy supply chain is a source of
significant synergies for facing market challenges and ensuring that a competitive advantage
is achieved.
Innovation is one of the key elements which are used for assessing the modern energy
resources, improving recovery from the efficiency and subsoil which ensures that there is
respect for the natural resources.
Excellence must be observed in the operations which are used to run the organisation which
makes use of the best practices, advanced technology, safety system and quality systems to
ensure that there is full respect for the environment and the community.

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Responsibility. There are very high levels of commitments to the transparency in the
governance of the company. The fight for human respect and fight against corruption is very
effective contributors to the development of communities and societies.
From the annual report, it was found out that the Eni Energy Company has designed its
strategies of growth along the guidelines which are discussed below.
Ensuring that it was to strengthen its competitive position in the core areas.
Consolidating and establishing a strategic partnership with the major countries.
Focusing on increasing the volumes of operated production. This will enable Eni Energy
Company to be able to deliver on time scheduled, cost budgets and also enable it to better
manage the technical risk (Huhtinen, 2017, p. 45).
4.0 Competitive Environment and Strategy
After the business model has been illustrated the analysis of the external and internal
strategies of the company follows. The integrated report identifies some industrial problems
and also describes the actions and initiatives which a company or any business organisation
need to implement.
Competitive strategies refer to the company's short-term strategies and long-term strategies
which are aimed at gaining the market shares against its competitors. Any company or
business organisation’s internal operating systems must be very flexible to give room to the
changes which are taking place in the external environment (Larsson, 2012, p. 47).
External; a company or business organisation external environment usually consists of
opportunities and threats. The threats refer to the situations that could negatively influence
the profits and sales.External opportunities refer to the circumstances or events that would
positively influence the sales of the company.

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Internal; the internal strategies can be a source of competitive strength or weakness. For
example in the case of a small business which in most cases cannot be in apposition to
compete with their large competitors regarding the cost (Mankins, 2017, p. 63).The large
businesses are usually known to be having negotiating power with the supplies.
Considerations; the Porter's five force model is a very useful framework tool which can be
used to come up with another project like the Eni company. The five –forces model are
usually used as the bargaining power for most customers, the bargaining power of suppliers,
changing the consumer preference, the threat of new competitors and the competitive rivalry
in the market. The term bargaining power refers to the ability to influence the prices which
are received or paid. Changing the preference of customers and introducing new competitors
can greatly affect the profits and sales, while the very competitive market usually limits the
ability of the company to increase the margins or raise prices (Martina, 2015, p. 456).
Fig 4; Porter's five force model

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5.0 Integrated Risk Management and Process
The risk management is well known as one of the major elements of effective administration
of companies. In a complex and dynamic environment, companies require the capacity to
understand, recognise, capitalise and accommodate the new opportunities and challenges.
The improved decision making, better results and better allocation of resources can be
attributed to the effective risk management (Pigneur, 2011, p. 421).
For the purpose of coming up with another project like the Eni company, risk management is
very crucial in that it involves a systematic approach which enables the company to come up
with the best course of action under some uncertainty by understanding, identifying,
assessing, making decision and communicating the risk issues as a very crucial component
of good management. Risk management does not mean that the risk will be avoided in case
of the potential threats. Rather the risk management will equip the organisation to be able to
make decisions which are informed by understanding the nature of the risk which enables
them to ultimately respond to the change by mitigating the threat and enabling the company
to capitalize on the opportunities (Pigneur, 2011, p. 233).
Integrated risk management. The risk management cannot be practised effectively alone as a
result of that; the integrated risk management usually promotes continuous, systematic and
proactive process to manage, understand and communicate the risks from the organisation
wide perspective in a consistent and cohesive manner.
The section of the risk management usually comes after the strategies to enable the reader to
get a clear understanding of the ability which the company has to manage the main risks
which are related to the strategies and goal achievements.

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6.0 Connectivity of Information
In relation with the elements, contents and the principles which are included in the
International Integrated Reporting Council framework all the sections which are included in
this report are operationalised to the principles of connectivity of the information this is an
attempt to show how the sustainability can be embedded within the individual company
(Webb, 2015, p. 426).
7.0 Conclusion.
In conclusion, having the main objective is to come up with innovative proposals which can
facilitate the development of a similar project like Eni Company. By having a clear
understanding of the company's distinct approach to the sustainable value creation, it was
much easier to come up with other ways through which the sustainability can be created
(Zysman, 2016, p. 34)
Some of the innovative proposals which were given include; operating resources efficiency,
retaining and attracting the best people, Government actions and Public forums which will
drive the sustainability, Balancing short- and long-term objectives and to Maintain and
Develop In-house Competences.
Competitive Environment and Strategy were well analysed. Both the internal and external
strategies for Eni Company were well understood before coming up with some proposals
which were to facilitate future development of a similar project. The risk management of the
company was deeply understood, and the proposals which were given were to be of great
importance in facilitating the development of a similar project like the Eni Company which is
currently considered to be the sixth largest energy company in the world.

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8.0 References.
Adrian, T., 2017. Business Models for Renewable Energy Initiatives: Emerging Research
and Opportunities: Emerging Research and Opportunities. 2nd ed. London: IGI Global.
Bhattacharyya, S. C., 2015. Mini-Grids for Rural Electrification of Developing Countries:
Analysis and Case Studies from South Asia. 3rd ed. Chicago: Springer,.
Bullock, C., 2012. A Guide to Energy Service Companies. 3rd ed. Chicago: Fairmont Press.
Caraghiaur, G., 2012. Energy and sustainable development: case studies. 3rd ed. Chicago:
United Nations,
Cohen, N., 2015. Green Business: An A-to-Z Guide. 3rd ed. Texas: SAGE.

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Couto, V., 2017. Fit for Growth: A Guide to Strategic Cost Cutting, Restructuring, and
Renewal. 1st ed. Texas: John Wiley & Sons.
The facility, G. E., 2013. Project Performance Report. 1st ed. London: The Facility.
Hawkey, D., 2014. Sustainable Urban Energy Policy: Heat and the City. 1st ed. London:
Routledge.
Huhtinen, K., 2017. Instruments for Waste Prevention and Promoting Material Efficiency: A
Nordic Review. 5th ed. Berlin: Nordic Council of Ministers.
Larsson, M., 2012. The Business of Global Energy Transformation: Saving Billions through
Sustainable Models. 4th ed. London: Springer.
Mankins, M. C., 2017. Time, Talent, Energy: Overcome Organizational Drag and Unleash
Your Team’s Productive Power. 5th ed. London: Harvard Business Review Press,
Martina, S., 2015. Innovating Energy Access for Remote Areas: Discovering Untapped
Resources: Proceedings of the International Conference; April 10th to 12th, 2014;
University of Berkeley. 2nd ed. Chicago: Universitätsverlag der TU Berlin.
Osterwalder, A., 2013. Business Model Generation: A Handbook for Visionaries, Game
Changers, and Challengers. 1st ed. London: John Wiley & Sons.
Pigneur, Y., 2011. Open for Business: Entrepreneurs, Clean Energy and Sustainable
Development. 3rd ed. Pris: UNEP/Earthprint.
Retd, I., 2012. Business Models for Renewable Energy in the Built Environment. 2nd ed.
London: Routledge.
Taylor, R. P., 2013. Financing Energy Efficiency:. 2nd ed. Paris: World Bank.

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Webb, J., 2015. Business Models to Realize the Potential of Renewable Energy and Energy
Efficiency in the Greater Mekong Subregion. 3rd ed. Chicago: Asian Development Bank.
Wüstenhagen, R., 2016. Sustainable Innovation and Entrepreneurship. 3rd ed. London:
Edward Elgar Publishing.
Zysman, J., 2016. Can Green Sustain Growth?: From the Religion to the Reality of
Sustainable Prosperity. 2nd ed. London: Stanford University Press.
9.0 Roles and Responsibilities
Section Writer Reviewer Proof-reader
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2
3
4

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Table 1; Roles and responsibility of group members.