Husky Energy Inc.: A Strategic Management and Operational Analysis

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FINAL PROJECT- RESEARCH & ANALYSIS
PAPER – PART II
HUSKY ENERGY
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Table of Contents
SUMMARY OF ORGANIZATION...............................................................................................3
ENVIRONMENTAL CONSTRAINTS..........................................................................................3
STAKEHOLDERS..........................................................................................................................4
STRATEGIC MANAGEMENT.....................................................................................................6
ORGANIZATIONAL STRUCTURE.............................................................................................7
MOTIVATION................................................................................................................................9
RECOMMENDATIONS...............................................................................................................10
FOUNDATIONS OF CONTROL.................................................................................................10
REFERENCES..............................................................................................................................11
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SUMMARY OF ORGANIZATION
Husky Energy Inc. is located in Calgary, Alberta, Canada founded in 1938. The business
organization is an Oil and Gas industry which provides Oil, natural gas, etc. products to the
customers. It is a public company managed by CK Hutchison Holdings as they have currently
40.2% of shares of the company. The company has 5500 employees’ works in the organization
in various countries such as Asia Pacific region, US, etc. Husky considered as the largest
integrated business industry in Canada. The company aims to provide good quality of products
and services as well as give the maximum return to investors for their investment (Neuberger,
2016). The research analysis is based on the management and strategic activities of the Husky
Energy Inc. as how they assess their strengths, weaknesses, threats, and opportunities and make
strategic actions regarding it and resolve the problems.
ENVIRONMENTAL CONSTRAINTS
Husky is an Oil and Gas business organization it is obvious that while extracting resources for
business there are constraints faced by the business industry. As this problem is directly
connected with the environment and can be faced worldwide regardless of any situation and
place (Neuberger, 2016). To understand constraints more specifically below is the PESTEL
analysis of Husky:
POLITICAL FACTOR – As Husky’s area of business is very large for that it has to make
policies with respect to each country.
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ECONOMIC FACTOR – Efficiency of markets in financial activity in countries helps Husky
business organization to expand further and skilled human resource help them to achieve it
effectively (Goldberg et al., 2015).
SOCIAL FACTOR – As level and mindset of society is significantly developed which helps
Husky to create a good relationship with society. The gender roles are evolving in countries
which are good to test different concepts to support business.
TECHNOLOGICAL FACTOR – The technology for Oil and Gas business sectors is not
developed as much and still a long way to go for maturity.
ENVIRONMENTAL FACTOR – Environment factors decide the sustainability for the Husky,
keep the environment safe and healthy through following environmental rule decided for
business sector is necessary (Wilson, 2018).
LEGAL FACTOR – Legal factor always impacts Husky and its business activity whether it
benefits the business not such as changing rules and time taken for cases to resolve etc.
Husky face the issue with extracting the resources for business without hurting the environment
as it is the biggest challenge for the business industry to keep the business activity ongoing and
protect the environment as well. Husky Energy takes good precautions measurement to ensures
that it's a business activity not cause any trouble to the environment as well as to the society
(Drilling, 2018). Effective practice of business considering environmental constraint attracts
more customers which is good for business.
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STAKEHOLDERS
As Husky Energy Inc. is a public body company in which stakeholders are divided into two parts
which are internal stakeholders and External stakeholders.
Internal Stakeholder
 Owners – Owners invested in the business to be considered as stakeholders of the
business industry.
 Manager – Manager manages the whole business industry and is the key stakeholder for
the business.
 Employee – Employee execute the plans prepared for the business and works best to
achieve business goals for which they considered as stakeholders (Drilling, 2018).
External Stakeholders
 Customers – Customer considered as one of the key stakeholders for the Husky.
 Suppliers – supplier played an important role in business enterprise as they provide the
required resources.
 Government – Government create the rules and regulations for the business as well as
they have shared in Husky as well to refer as a stakeholder for Husky.
Among all the above stakeholders of the Husky, Manager considers as an important stakeholder
as the manager is the key person who effectively manages business activities, as well as
significantly helps business organization towards success and manager, qualified to be given as
the highest priority as they play a critical role in the Husky (Yunker et al., 2018). Following are
the key functions of the manager:
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Planning – Manager of Husky responsible for planning the various activities which are required
for business.
Organizing – organize the resources which are needed for the business activity is another work
of the manager.
Staffing – Manager is responsible for recruiting and hiring the right employees for the right job
position in business.
Directing – Manager is responsible for directing their employees towards business goals.
Controlling – Another key function of a manager is to control the business activity in a manner
in which the business process runs smoothly (Yunker et al., 2018).
STRATEGIC MANAGEMENT
Husky can effectively use its strengths, weaknesses, opportunities, and threats to develop further
and achieve its goals and objectives.
STRENGTHS – Covers very large area for business, Strong and skilled human resource and
seen as a great leader in the market.
These strengths can really work for the Husky as by covering a large area for business activity
Husky can easily interact with its clients as well as a strong and skilled human resource within
the business organization always benefits the business (Fraser & Racine, 2016).
WEAKNESSES – Staff turnover, Husky's services not proving enough satisfaction for customers
and don't have good relationships with suppliers.
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Above weaknesses are the concerns for the business organization. Husky needs to maintain a
good relationship with their suppliers by complete deals time to time making good use of
motivation theories to avoid staff turnover within the business and along with these Husky needs
to improve its services to satisfy its customers effectively (Neuberger, 2016).
OPPORTUNITIES – Co-ordination with local suppliers and dealers, Change in demand and
support by the Government.
Husky have various opportunities to gain success such as the market trend keeps changing which
cause change in demand for the customer also for that Husky need to grab this opportunity first
to provide required services along with it with the rules favor the Husky's business nature it is a
great opportunity to expand business by co-coordinating with local dealers and suppliers (Brown
et al., 2016).
THREATS – Competitors, Commoditization of services and products and Trade wars between
some countries.
Above threats are the big drawbacks for the Husky as they need to outsmart their competitors by
adopting various effective techniques, to avoid the harm with respect to trade wars between
countries Husky need to expand their business in other countries to cover up that harm as well as
to overcome commoditization husky needs to use effective advertisement to make them aware of
their brand of products (Goldberg et al., 2015).
ORGANIZATIONAL STRUCTURE
Husky Energy Inc. is a private body in which simple functional organizational structure is more
suitable for the business activity. Functional organizational structure is a function based
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operating activity in which particular department is responsible for their own decisions and
activity.
Figure 1: Husky Energy Inc. Organizational Structure
Source: Goldberg et al., 2015
The above figure is the organizational structure of Husky Energy Inc. in which Board of
directors holds the main power and delegate duties and responsibilities. This structure is
functionally based as a specific department has a special function and they are responsible for
decision-making for a particular function (Goldberg et al., 2015).
Husky Energy Inc. using the mechanistic structure as the structure is totally hierarchical in which
authority is centralized but specialization in functions. This structure is easy to organize and
simple but as the broad in size difficult to cope up with but as the Husky is a public company run
by the board of directors it is well-suited organization structure for them.
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MOTIVATION
Husky Energy faces the problems of staff turnover even in the low level of organization which
shows that they are highly demotivated and not satisfied with their job. It is necessary to
motivate employees and reduce the rate of staff turnover (Brown et al., 2016). Herzberg’s
motivation theory is well suited for Husky's nature of the business.
Figure 2: Herzberg’s Two Factor Theory
Source: Brown et al., 2016.
This theory has a straight forward way says if employees get poor environment, bad quality of
food and water etc. their motivation goes down which creates dissatisfaction of job make the
condition of staff turnover on the other hand if employee gets good environment, good food and
water and proper workload that makes them motivated and increase job satisfaction which
reduces the rate of staff turnover.
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RECOMMENDATIONS
Husky Energy Inc. needs to see its business strategy as its strategy totally focused on discovering
opportunity as well as customer and employees oriented. Along with it, the Business industry
needs to work in their strengths, weaknesses, threats, and opportunities as they need to
strengthen their strength, work on weaknesses, grab opportunity fast as they can and prepare for
threats. The new modified strategy which is recommended suits their business vision pretty much
(Yunker et al., 2018).
FOUNDATIONS OF CONTROL
Husky Energy Inc. chose feedback and concurrent method to monitor the process.
Feedback control – Feedback control is an effective control method from which managers
measure the performance through customer or workers feedback.
Concurrent – Concurrent method used to measure the performance of employees within the
organization.
Through employee training and employee involvement, Husky can measure the performance as
well as these techniques help business to see whether their business goals achieve or not as well
the recommendations work for them or not (Drilling, 2018).
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REFERENCES
Fraser, G. S., & Racine, V. (2016). An evaluation of oil spill responses for offshore oil
production projects in Newfoundland and Labrador, Canada: Implications for seabird
conservation. Marine pollution bulletin, 107(1), 36-45.
Sander-Regier, R., Acheson, E. S., Rai, N., & Chen, J. R. Q. (2015). The University of Ottawa's
Husky Energy Courtyard: Looking back, looking forward after 10 years. Urban Forestry &
Urban Greening, 14(4), 1131-1136.
Drilling, H. E. E. (2018). REVISED REPORT IN RESPONSE TO CEA AGENCY
CONFORMITY REVIEW.
Yunker, Z., Dempsey, J., & Rowe, J. (2018). Canada's Fossil Fuelled Pensions: The Case of the
British Columbia Investment Management Corporation.
Neuberger, A. (2016). ROLE OF RISK MANAGEMENT IN THE OIL AND GAS INDUSTRY:
THE EFFECT OF DERIVATIVE CONTRACTS USED TO MANAGE OIL AND GAS PRICE
RISK ON STOCK PRICE SENSITIVITY IN THE OIL AND GAS INDUSTRY DURING A
PERIOD OF DECLINING OIL AND GAS PRICES.
Goldberg, A., Hedman, B., Taylor, R. P., & Russell, C. (2015). Sustained Energy Savings
Achieved through Successful Industrial Customer Interaction with Ratepayer Programs: Case
Studies (No. DOE/EE-1272). US Department of Energy, Washington, DC (United States).
Wilson, A. (2018). Inverted-ESP Completion Boosts Oil Rate While Disposing of Produced
Water. Journal of Petroleum Technology, 70(12), 70-79.
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Brown, M., Power, D., King, T., McAffee, R., & Dodge, K. (2016, October). Deepwater
Newfoundland and Labrador: Technology Application and Opportunities for Exploration and
Production. In Arctic Technology Conference. Offshore Technology Conference.
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