Comprehensive Analysis of Strategic Development at Woodside Petroleum

This report provides a comprehensive analysis of Woodside Petroleum's strategic development within the oil and gas industry. It begins with an executive summary highlighting the company's significance and the government's role in the sector. The report then delves into the company's mission, vision, and strategic themes, including maximizing asset value, leveraging employee capabilities, and expanding its portfolio. It also addresses controversies involving the company. An environmental analysis explores political, economic, social, technological, environmental, and legal factors impacting Woodside Petroleum. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. Furthermore, the report examines the organization's culture, core values, and leadership styles. The conclusion summarizes the key findings and emphasizes the company's position in the Australian market, its innovative capabilities, and its commitment to sustainable growth. The report uses multiple sources to support the analysis of the company's strategic development.

Running head: STRATEGIC DEVELOPMENT WITHIN AN ORGANIZATION
strategic development within an organization
[Document subtitle]

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STRATEGIC DEVELOPMENT WITHIN AN ORGANIZATION
Executive Summary
Among the top industries in India, Oil and Gas industry stands as a distinguished sector. All the
important decision making of the other economic sectors rests upon this Sector. Also, the
government has allowed complete FDI in this sector. Among all the top companies, Woodside
Petroleum Stands as the major contributor towards exploring and producing the petroleum in the
world. This report extends to give a brief analysis of the company's performances in the past and
prospective growth area. In the following sections, we will be discussing the growth and
development analysis of the company. Furthermore, we will be discussing the environment and
leadership analysis for the company.

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STRATEGIC DEVELOPMENT WITHIN AN ORGANIZATION
Contents
Growth and Development of Organization..............................................................................................3
Mission of Woodside Petroleum...........................................................................................................3
Vision of Woodside Petroleum..............................................................................................................3
Strategy of Woodside Petroleum..........................................................................................................3
Woodside Petroleum- A Victim of Controversies...................................................................................4
Environmental Analysis for Woodside Petroleum..................................................................................4
 Political factors..............................................................................................................................4
 Economic factors............................................................................................................................4
 Social factor....................................................................................................................................5
 Technological factors.....................................................................................................................5
 Environmental factors...................................................................................................................5
 Legal factors...................................................................................................................................5
SWOT Analysis of the Company..............................................................................................................6
Organization Culture and Leadership Style............................................................................................7
Organization’s Culture and Core Values............................................................................................7
Leadership style theories.......................................................................................................................8
Conclusion..................................................................................................................................................8
REFERENCES..........................................................................................................................................9

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STRATEGIC DEVELOPMENT WITHIN AN ORGANIZATION
Growth and Development of Organization
Woodside Petroleum is the Australia’s major production and exploration company. Woodside is
considered to be the largest gas producing and oil operating company in Australia. It is
headquartered in Perth region of Western Australia. This company was founded in the year 1954
by Peter Coleman and today it has over 3000 employees.
Mission of Woodside Petroleum
The company is operating at a profit of over $26 million and is striving to achieve the total target
of many more millions to be added to this gross figure. The mission of this company is to deliver
and create sustained and outstanding growth in the wealth of shareholders to provide the energy
for the coming years.
Vision of Woodside Petroleum
To be counted among the top leaders of LNG. To accomplish the vision of Woodside petroleum,
the company wishes to acquire the speed, executive skills, acumen of commercial, focus on cost,
capable of being technical. In this way, it can become and establish itself to be among the top
choices of the customers. Through their values and people, they will be able to deliver and
satisfy a future that is sustainable. The core values of Woodside Petroleum may include the
performance of the company being very sustainable and strong, having strong resect and careful
attitude towards employees and work, Building the environment of trust and integrity, being
accountable and taking initiatives, involving in creative and harmonized working environment.
Thus they believe in recognizing an atmosphere of profitability and sustainability which can
make the company distinctive and unique in its stature.
Strategy of Woodside Petroleum
Woodside Petroleum strives to achieve their vision by three core themes which are almost related
each other. These are- to maximize the value of their assets, to leverage the capabilities of
employees, and to increase their portfolio. Today the position of Woodside has been positioned
as a world-class provider of unique capabilities, hardcore relationships, loyal asset base, and top
level projects. They strive to achieve this position by developing the effectiveness in their
operations, by having an extension over their assets being g produced, and their resources of
contingency being developed. They want to deliver the value in gas and oil, and they have
constructed, designed and operated the top level plants of LNG, operating FPSO, the technology
of subsea, acquiring and processing at the seismic level and drilling of Deepwater. This company
has established itself by LNG being Floating, liquefaction near shore and processing of subsea.
This company has been able to lower the cost of operations from the support center of Pluto
based out at Perth. It can also help to maintain the outcomes and also to improve the
performance. The company also aspire to acquire the assets and corporates to increase their
portfolio and also maintain an approach that can always maintain their value for shareholder’s
wealth and risk can also be maintained and managed.

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STRATEGIC DEVELOPMENT WITHIN AN ORGANIZATION
Woodside Petroleum- A Victim of Controversies
Woodside Petroleum made an oil contract with former authoritarian leader MAAouya Ahmed for
which the company was about to invest $600 million in the oil project of Mauritania’s Chinguetti
(Healy, et al., 2015). But the government of Mauritania declared this statement to be wrong. The
main reason behind this was that this agreement was signed outside the framework of law and
normal practice. It can bring about a huge expense to the country which was amounting to
approx. $200 million in one single year. Among the top companies to make a wicked statement
in public regarding the attempt to acquire the Carbon Permits at free cost, Woodside was among
those companies. The foundation for conserving Australia has declared that the companies had
given exaggerated statements in Public but the stories which the investors and the shareholders
know are different. In 2009, a complaint was lodged by ACF with the affairs of consumer's
federal watchdog and they asked the matter to be investigated. But the commission for
consumers and Competition for Australia did not take any action in opposite to the company
(Albrecht, et al., 2014).
Environmental Analysis for Woodside Petroleum
The industry of Woodside Petroleum engrosses an immense role in the economy as it makes
possible for the transport to run on the road and also for mills and factories to work. The
company's employees can easily understand the nature of work, business conditions, and the
importance of energy resources the regulations which apply to this industry if Proper analysis of
the environment is done for the company (Doufene, et al., 2014).
 Political factors
The need of labor and the payment of taxes and extra charges to be levied are mandatory for the
petroleum and oil industry. The policy of taxation, laws of labor to be implemented, restrictions
of trade, company's stability of politics, tariffs, and laws of the environment needs to be followed
by the industry. With this industry, millions of people are associated. Hence many provisions of
education and health facilities and infrastructure for the community are provided by the
Government. And these all factors needs to be considered by the Company.
 Economic factors
The search by the country’s economy regarding the Petroleum’s finding and refining has greatly
impacted the economy of the countries. This sector can earn a lot of revenue via sale and
purchase of the oil as this is a necessary item for the commercial and domestic use. The demand
and supply of prices of oil and goods greatly impact the factors of the economy. Demand for oil
can cater to many different industries like detergents, synthetic rubber, insecticide, paints and
plastics, synthetic fiber, pharmaceuticals adhesives and much more.

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STRATEGIC DEVELOPMENT WITHIN AN ORGANIZATION
 Social factor
The income, religion, demographic factors, ideological and cultural factors impact this industry.
The professional and skilled workers are working in this sector to earn good wages and their
working hours are also relaxed. The social factors can help to raise the standards of living of
people and their demands for future can also be met. Woodside Petroleum can bring changes in
people live as it is very important for the people in their development. Some might consider this
industry to be a contributing factor in the increased pollution, but this Industry is also a great
source for the transport industry.
 Technological factors
The factors related to the technology involve the techniques, technologies, which may be used in
the organization. To find out the updated technologies, examine new techniques, the
technological factors are used. Such technologies are adopted to explore the gas and oil and may
also use pipelines, roads, trucks, and tanks. Secondly, the use of technologies also involves
protecting workers and environments and enhancing the management's efficiency while using
new hardware and software to improve their skills of repairing and maintenance. The
introduction of substitute industry like nuclear, biomass coal, renewal, energy and natural gas
have lowered the development of oil and gas industry.
 Environmental factors
The oil company’s activities get greatly influenced with the oil reserve’s nd refinery's position in
the geography. If any of the investors is thinking to invest in this sector, he or she should
consider the factors of Macro economy. The use of petroleum and oil in the industry is necessary
but using the gas and oil products in the industry is also believed to be necessary. Therefore strict
rules and regulation should be implemented to have a check and monitor the use of the products
related to gas and oil industry in the economy. Being in the category of Nonrenewable resources,
a structure of utilization of resources should be made to have their use in safe and protective
manner.
 Legal factors
The laws formation, regulations, and rules regarding the department, communities and
organization of international community and government which all constitute the legal factors
include Union of Africa, Europe, North America, Agreement of Free Trade, and ASEAN. The
Exploitation, commercialization and exploration of products of oil are influenced by the legal
factor. The Woodside Petroleum need to face the position of-of legality like regulating work,
protection of work, Protection of society, regulating protection and pollution, Trade of
International and protection of the consumer. Also, the taxes for oil prices and fuels need to be
paid by the industry (Speight, et al., 2015).

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STRATEGIC DEVELOPMENT WITHIN AN ORGANIZATION
SWOT Analysis of the Company
Strength
 Woodside has been able to secure a sustainable and distinct position at the competitive
edge due to its leading position in the market of Australia.
 The best quality gas and oil assets are included in world's expensive gas and oil basins
which include basin of Carnarvon.
 Woodside Petroleum is considered to be the largest selling producer of liquefied natural
Gas.
 The technology and innovating capabilities are being developed in this Woodside
Petroleum
 Woodside Petroleum has been considered to be among the most exploratory companies
the provinces involving deep watering Australia.
 The reliability of production and competitive advantage is added to the experience and
expertise of engineering in design with the construction vessels of subsea and barges of
pipe lay.
Weaknesses
 The Woodside Petroleum was involved in the protest which was regarding a proposal
about constructing the industrial complex of James Price Point in Kimberly region of
Western Australia.
 The detector of oil mist at Vincent oilfield of Woodside Petroleum in western region of
Australia.
 The hub which was processing the browse natural gas as acquired by the Woodside had a
serious impact on the performance of the company, as it can have legal complications.
Opportunities
 Woodside Petroleum has entered into an agreement with the international corporation of
Daewoo that may help it to secure the growth opportunities at international level in
emerging and frontier basins.
 The offshore and onshore gas supply may help the company to develop itself in Shelf of
North west region.
 The Woodside Petroleum can establish itself as a leader among Global LNG’s by
developing the projects for expanding the capabilities of LNG.
Threats
 The plays of Shale has increased the production
 There are many natural disasters happening in Australia like Floods, storms, cyclones,
earthquakes, bushfires and landslides.

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STRATEGIC DEVELOPMENT WITHIN AN ORGANIZATION
 The production and Exploration activities associate with themselves the risks of
operations.
 Internal Environment of Woodside Petroleum
The company has a strong safety and health culture which has been developed by the initiative to
keep each other safe and secure. Since the company has evolved into the leading company of gas
and oil in Australia, they have employed people from the group of diverse people who may bring
the talent to the company which is unique and different (Hernandez, J.A., 2014). The employees
in Woodside believe in fulfilling their dreams and the company also give them a chance to
develop them so that the goals of the organization are also achieved. There is a Compass which
is followed in Woodside Petroleum which includes 6 factors- Integrity (being open, honest and
fair), Working Sustainably (maintaining long term relations), Discipline (playing the rules),
Excellence (achieving the great results), respecting each other and working together
(harmonization) (Clements, et al., 2014).
Organization Culture and Leadership Style.
Organization’s Culture and Core Values
Woodside Petroleum had recognized the value's importance in 1999 when the CEO of the
company incorporated a bold step to place an event of change in the organizational behavior.
After this program was launched, Woodside's employees grew rapidly, and it was able to expand
its operation to North West Shelf project in western region of Australia to expand their
operations in the Sea of Timor, Western Africa and Mexican Gulf. The CEO of Woodside
(Akehurst) had imagined creating a workplace which was enjoyable, inspiring and a fun filling
workplace. The CEO believed that the returns of the shareholders should be maximized by way
of inspiring the employees by keeping a vision that was beyond the value of shareholders and
also by aligning the company and personal values. This program of leadership by performance
led to respect between two individuals, adopting responsibility or the behavior, communication
and team work, having authenticity, core value of trust in the performance and safety area.
According to the Woodside Petroleum the employees are encouraged to bring in their innovative
ideas into the organization. This idea was later adopted by other organizations like IBM,
Vodafone etc. But this step was not accepted by all employees as many of them thought of it as
an invasion to their private life. If the leadership models adopted in a company is much suited to
the employees, only then this step was considered to be most effective. Otherwise employees
would start considering their management to be hypocritical. After the successful seven years of
Akehurst at the company, Woodside have now become totally, changed and globally
independent player in energy resources (Albrecht, et al., 2014)

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STRATEGIC DEVELOPMENT WITHIN AN ORGANIZATION
Leadership style theories
 Michigan Studies
These studies were considered in the University of Michigan which identified the types and
principles of styles of leadership that increased the productivity and also increased the
satisfaction of job among the workers. There are two broad categories of styles of leadership-
Employee oriented and production oriented. This study was also able to identify the three most
significant characteristics of effective leaders- related to relationship, task and participative
(Odumeru, et al., 2013).
 Trait and Behavioral Studies
Trait theory gives emphasis to the individuals who can emerge as prominent leaders among the
society during various situations and tasks. There are various traits of an individual leadership
that includes adjustments, intelligence, conscientiousness, general self-efficacy, extrovert, etc.
Behavioral theory proves that to be an effective leader; an individual must possess some strong
attributes and ego that is positive in nature. Also there should be self-confidence that is must
(Latham, J.R., 2014).
 Transactional and Transformational Theory of Leadership
When the leadership works within the already established boundaries and goals of organization,
they are said to be the transformational leader. He tries to emphasize the evaluation of the
performance, organization and is completely task-oriented and cares only for the outcomes.
While Transformational leaders are oriented to future and cares for the quotient of status. He
motivates and engages the followers with the future’s vision (Dasgupta, M. and Vaghela, D.,
2015).
Conclusion
Woodside petroleum's Board of Directors has confirmed the maintenance of existing direction of
growth plan after reviewing the strategy of the company at long term basis. The company will be
focusing on delivering the shareholder's value through continuously developing the Australia's
Liquefied Natural Gas portfolio. Delivering the project for Pluto foundation can support the
opportunities for growth and it can also help to continue building the internal capabilities of
Woodside Petroleum. The business theme that is complementary can be well maintained in
business to explore the opportunities outside Australia.

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STRATEGIC DEVELOPMENT WITHIN AN ORGANIZATION
REFERENCES
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Western Australian Case Studies. In Resource Curse or Cure? (pp. 43-57). Springer Berlin
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Clements, K.W., Si, J. and Simpson, T., 2014. A Guide to Information on Australian Resource
Projects. Australian Economic Review, 47(4), pp.563-573.
Dasgupta, M. and Vaghela, D., 2015. Integrating Organization Culture with Corporate
Sustainability Strategy: A Review. Proceedings of ICRBS, 2015.
Do fine, A., Doron, A. and Krob, D., 2014, July. 2.1. 1 Model‐Based operational analysis for
complex systems‐A case studies for electric vehicles. In INCOSE International Symposium (Vol.
24, No. 1, pp. 122-138).
Healy, P.M. and Serafeim, G., 2015. Voluntary, Self-Regulatory and Mandatory Disclosure of
Oil and Gas Company Payments to Foreign Governments. Available at SSRN 1961404.
Hernandez, J.A., 2014. Are oil and gas stocks from the Australian market riskier than coal and
uranium stocks? Dependence risks analysis and portfolio optimization. Energy Economics, 45,
pp.528-536.
Latham, J.R., 2014. Leadership for quality and innovation: Challenges, theories, and a
framework for future research. Latham, JR (2014). Leadership for quality and innovation:
Challenge, theories, and a framework for future research. Quality Management Journal, 21(1),
p.5.
Odumeru, J.A. and Ogbonna, I.G., 2013. Transformational vs. transactional leadership theories:
Evidence in literature. International Review of Management and Business Research, 2(2), p.355.
Speight, J.G., 2015. Handbook of petroleum product analysis. John Wiley & Sons.
Woodside.com.au. 2017. Woodside Energy | Home. [online] Available at:
http://www.woodside.com.au/ [Accessed 12 Jan. 2017].