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Overview of oil & gas industry
Importance of communication
Importance of communication
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Recommended: Overview of oil & gas industry
The nature of the oil and gas industry is one that lends itself to intense competition between rivals. Gone are the days when oil and gas conveniently seeped out of the earth or were accidently discovered during other drilling operations. These days, due to the industry’s reputation of providing enormous profits, there are a plethora of companies in the industry that are engaged in exploration, development, acquisition or exploitation of oil and natural gas. Over the years, as the amount of companies in the industry has increased and drilling for oil has gotten more complicated, competition has stiffened and companies are left to find creative ways to gain and maintain a competitive advantage. This is the case when it comes to Sabine Oil and Gas. Sabine Oil and Gas, like many others in the industry, is constantly striving to gain and maintain competitive advantage over its rivals. However, with the potential success of any company in the industry depending on so many factors, achieving a competitive advantage is a tough task under normal circumstances. With the industry as a whole falling on extremely hard times with the rapid fall in oil prices, this task has gotten increasingly harder. To conduct a thorough …show more content…
Over the years, Sabine Oil and Gas has managed to create and maintain a company culture that revolves around transparency with all its employees. This especially became beneficial as the industry began going thru difficult moments in 2014. Managers made it a habit to communicate to its employees the standing of the company and kept them informed when decisions were made. This not only helped the company maintain a healthy working environment during tough times, it also re-established the trust between employees and the company’s management. This company culture isn’t something that can be measured quantitatively. However, the impact of a healthy company culture cannot be
One of these factors was the logistical nightmare of redeveloping the infrastructure needed to transport oil to the refinery. As early as 1881, Standard oil operated approximately 3,000 miles of pipelines, eventually owning ninety percent of the nation’s pipelines. Although transcontinental railroads were an available alternative, pipelines were cheaper, reduced handling and storage fees, and were more efficient. The fact that modern oil companies invest hundreds of millions of dollars into speculating for sustainable natural oil deposits implies that such deposits are rare and hard to identify with a passing glance. If the spurts of oil proved to be isolated incidents, the capital invested in building pipelines and reestablishing a monopoly would have been squandered.
The reason this topic was chosen was because the Martins chain as well as the Ukrops chain had specific characteristics/ symbols that could be used to define each chain. The concepts that the Martins takeover exemplified were prime examples of the topics we discussed in class. In class, we discussed the organizational culture and how it affects an organization. The Martins takeover is an excellent example of the ways organizational culture affects an organization. In this case, the Ukrops dominant culture just couldn’t compete with Martins. Even though Ukrops had an outstanding positive culture, this is one example of how the national culture had a tremendous effect on the local culture within the Ukrops chain. When the Ukrops managers thought about how their organization was being affected globally, they made the conscientious decision to sell to Martins. Because organizations depend heavily on foreign markets, the managers of Ukrops decided that Martins would be a much better fit to the community.
Sanders, E. J., & Cooke, R. A. (2005). Financial Returns from Organizational Culture Improvement: Translating Soft Changes into Hard Dollars. Human Synergistics/Center for Applied Research, Inc. Arlington Heights IL USA
Exxon and Mobil were two big competitors in the oil industry. In the 20th century, Exxon and Mobil operated with relatively low-price, and in low-margin environments. The market in the United States and Europe have grown and matured, allowing them both to grow with great success. The competitiveness has tightened worldwide in the crude oil business. Both companies have continued to advance new technologies, introducing new marketing innovations. They have extend there reach into high-growth markets. The two companies became more efficient, reduced costs, and increased shareholder’s value by there merge.
Corporate culture refers to an organization that shares the same values or beliefs that are usually instilled or passed down by example from the upper level executives throughout the organization (Thorne, O. Ferrell, & L. Ferrell, 2011, p. 191). Most organizations are molded from ideals set in place by the founders or upper level executives of an organization. In Enron’s case, they believed in doing whatever it took and unfortunately it bread competitiveness throughout the company, which forced employees into making unethical decisions in order to save their jobs. The CEO, Jeffrey Skilling, decided to implement a program that evaluated employees every six months and the bottom twenty percent of employees would be terminated. This created a
This compliments the already effective natural gas operations. In doing so annual revenue has increased to more than 10.8 million dollars just within the first quarter results. While continuing to strengthen the core operations, in Missouri, he focused on propelling the organization to the forefront of the gas industry, and amplified the focus on business growth. Of course this built value to shareholders, and created a notable reputation of safety and quality.
To remain competitive and increase profit margin, the company should focus on cost minimization techniques so that when the prices of oil goes down, then the company will still have high earnings as compared to others in the industry. This will bring the company into a superior position as compared to others, which will allow the company to undertake new profitable ventures even at the period of falling prices.
We discovered that the history of the oil industry along the Delaware River dates back to 1892. Since then, water port facilities, public transportation, and other forms of infrastructure have benefitted from this industry and undergone important development. More recently, however, due to the rising cost of importing and refining crude oil, a couple of refineries along the Delaware River are on the verge of shutting down. According to the report, the cessation of operations at these facilities has resulted in a direct loss of 1,800 jobs and an indirect loss of 15,000 jobs. In this situation, however, Delta Airlines spent 180 million dollars purchasing Trainer Refinery, for the purpose of lowering the cost of jet fuel. This purchase...
Organizational cultural is the system of shared beliefs and values that develops within an organization and guides the behavior of its members, while organizational structure is an expression of social and economic principles of hierarchy and specialization (Kinicki, 2015). Both the culture and the structure of an organization are important things for management to understand in order to successfully set and achieve an organization’s goals. Companies who excel in highly competitive fields can attribute their successful economic performance to a cohesive corporate culture that increases competiveness and profitability. This culture is best utilized in an organization that has the necessary structure to allow its employees to coordinate their
The Company has a unique offering with regards to tactics and the low risk opportunity to enter Spain and other European countries by using pre-existing oil wells and uncovering new locations. There has been a huge success in using the same type of operations in other countries where oil is extracted. By developing focused strategies in three specific aspects of drilling, ATO will replicate the efficiencies used in other successful countries. This process will lead to the extraction of other natural resources such as natural gas. There will be twenty-five new wells and six existing wells to take advantage of extracting oil but once the expansion into other natural resources happens
Seven levels of power are addressed in our text and Stanard Oil most prevalently possessed the economic, political, and legal power to control the oil industry (Steiner & Steiner, p.60-61). Standard Oil could acquire the competition and force those who resisted into bankruptcy. This consolidation was a detriment to the economy, but at the same time, Standard Oil built facilities and employed individuals that benefited the economy.
As we learn from the case study, the Lincoln Electric Company is the largest global manufacturer of machines for welding, which are used in all kinds of construction projects. This means that the company has a large global presence and many employees, so its culture affects thousands of its workers. Even though it is now 2014, the company still has a large market share and very satisfied employees, so clearly the culture leaves employees satisfied and motivates them to work hard for the company.
MSCI, a budgetary investigation firm with extraordinary aptitude in surveying the estimation of intangibles like carbon hazard, examined the petroleum business ' execution in five key classifications: operations, wellbeing and security; capacity to get to assets in developing markets; carbon discharges; interest in option vitality; and interest in unpredictable fossil powers like oil sands and oil shale, coal bed methane and coal crease gas, and both gas-to-fluid and coal-to-fluid energizes.
The industry is divided into three distinct sectors including the upstream, midstream and downstream sectors. The upstream sector includes the exploration and production of crude oil as well as the exploration and production of natural gas. This sector has experienced the largest amount of deals in terms of mergers and acquisitions, which will be further discuss in section III. The midstream sector involves the transportation of extracted petroleum from the upstream sector through pipelines, rail, barge, truck as well as storage. Finally, the downstream sector connects the end consumers through derived products such as gasoline, liquefied natural gas (LPG), liquefied natural gas (LNG), kerosene (aircrafts), and diesel…
Organisational culture is one of the most valuable assets of an organization. Many studies states that the culture is one of the key elements that benefits the performance and affects the success of the company (Kerr & Slocum 2005). This can be measured by income of the company, and market share. Also, an appropriate culture within the society can bring advantages to the company which helps to perform with the de...