Strategic management Essay Example | Topics and Well Written Essays - 4000 words - 1

Strategic management - Essay Example Disturbance in North Africa and the Middle East had significant affect (Jones, 2012) while Uganda seized disputed license of TOC and held its 33% stake sale to heritage and CNOC (Mason, 2011c) ECONOMIC Significant source of revenue for country. Increase in tax from UK government of about ?10 billion resulted in increased concerns from oil and gas exploration companies claiming negative impact on job losses and household bills (Mason, 2011b) TECHNOLOGICAL Extensive technological expertise is required for oil and gas exploration. TOC has signed five year contract with FMC technologies for operations in Subsea services (PennEnergy Editorial Staff, 2013). SOCIAL Development of exploration plants results in social development of the country. Civil society stresses the accountability need of payment from oil and gas companies to counties and their respective utilization (Stewart, 2011). ENVIRONMENTAL Business has significant impact in the environment. Exploration in Savanna and Wetlands wa s warned for affecting natural land to elephants and lions by UNESCO (Manson, 2011a) LEGAL Governments are increasing pressures with increased tax system in lieu of depleting world oil reserves (Holmes, 2011). INDUSTRY ASSESSMENT Oil and Gas exploration industry is increasing competitive across the board. BHP Billiton, Centrica, Shell, E.ON, Bayerngas UK, Bridge Energy, ConocoPhillips, DONG Energy, Endeavour, GDF SUEZ, iGas, Perenco, Total and Tullow Oil forms around 60% of the UK oil production. Increased competitiveness is present in the industry despite of heavy capitalization which becomes a barrier to the industry. For instance, recent offer from Uruguay for the exploration received 15 bids from nine participants while four were granted rights. The offer made for 15 blocks yet accepted bids for nine only while every block had competition among more than three bidders (Webber, 2012). Owing to world’s increased need of energy the bargaining power of buyer is continuously r educing while the power of supplier is consistently rising. Renewable energy offering substitute are still not able to affect the demand of the energy. Intense competition has turned competitors to move towards strategic collaborative ventures. INTERNAL ASSESSMENT: Market Line (2012) has conducted in-depth assessment of Tullow and has identified following SWOT factors: STRENGTHS WEAKNESS Competitive advantage of leading oil and gas exploration business in Africa. Tullow has significant assets across Europe, Asia and South America in addition to Africa. The company has significant debt of around $2,854 million in 2011, which is a significant increase from $1,943 million in 2010. Hence, owing to growing competitive pressures huge debt can negatively impact Tullow’s capacity to compete. OPPORTUNITIES THREATS The acquisition that has been Tullow’s strategy to enhance its portfolio still offers great opportunities in future. Current developments in Uganda and Ghana such as development of Jubilee oil Field have potential for future development. Tullow has major capital projects underway while projects for FY2012 amounted around $ 2 billion. Capital expenditures incurred and planned offer greater opportunities for future. Big players of industry than Tullow has significantly greater strength from all perspectives such as technology, financial resources hence pose serious threats. Oil

International Business Essay Example | Topics and Well Written Essays - 750 words - 12

International Business - Essay Example - Labor Quality is simply defined by the education, skills, sincerity towards work and the attitudes of the available employees in a particular organization. Along with these key aspects, labor quality also measures the domain knowledge, creativity, soft skills such as leadership and managerial quality, and most importantly, the ability of the labor forces to learn as well as adapt themselves with the change in the work environment. Therefore, it is essential to analyze the labor force before finalizing business contracts and expanding the business internationally, so that the right skills are available in order to conduct the business profitably. The price of labor is affected by supplies of labor, lack of labor unions, lower demand for labor and the lack of rules and regulations of the government. (How Do Labor Forces Influence International Business?, n.d.) Labor Quantity - Labor Quantity, another significant aspect of labor force, which can influence the labor force both positively and negatively. It is actually the number of potential employees that are available in an organization, who possess the necessary skills to be efficient and productive employees, in order to meet the business needs of the employer. The quantity of labor force is very important for an international business as a country with large number of qualified and well educated employees is beneficial for the company, as it can hire educated and qualified employees for comparatively low wages. In comparison, if there is limited number of educated and qualified employees in a particular country, then a company is compelled to pay higher wages in order to employ quality labor. (How Do Labor Forces Influence International Business?, n.d.) Labor Mobility - Labor Mobility is defined as the movement of people from one country to the other, or from one area to other area, for the search of jobs; it also refers to occupational mobility. A company’s productivity increases with the increased