Pacific Oil-Strategic Plan Pacific Oil Startegic Plan Essay
- Length: 11 pages
- Sources: 6
- Subject: Energy
- Type: Essay
- Paper: #138344
Excerpt from Essay :
Pacific Oil-Strategic Plan
Pacific Oil Startegic Plan
IMPLEMENTATION PLAN-ORGANIZATIONAL STRATEGY
RISK Management PLAN
Responding of Risk management Process
Evolution of Risk Management
Policies and Procedures
152011 Identified Risks
Pacific Oil-Strategic Plan
This paper presents a strategic plan or Pacific Oil. The paper starts with organizational background consisting of business mission, vision and the corporate values. The nature of the business of Pacific Oil has been clearly identified with some highlights on the business divisions operating in the oil industry. An environmental scan has been performed in order to have a clear insight into the circumstances in which the Pacific Oil is operating. This environmental scan for Pacific Oil is accompanied by a SWOT (Strength, Weakness, Opportunities & Threats) Analysis. Strengths and weaknesses of Pacific Oil relate to internal organizational environment while opportunities and threats relate to external environment of pacific Oil. After environmental scan, the corporate strategies of Pacific Oil have been identified in order to pursue for an implementation plan of the selected strategy. In the end, this strategic plan is accompanied by a Contingency/Risk Management plan for catering risks which Pacific Oil is facing.
Pacific Oil is a start-up business specializing in delivering cost competitive oil and gas products to various parts of the world. Pacific Oil has a focus of delivering the oil and gas products in Asia, due to emerging demand of oil products in that area. The headquarters of Pacific Oil are located in America, with supporting offices in UK, Germany and Canada. (Melissa & Crittenden 2009) Pacific Oil owns 4 gas stations and couple of commercial and residential properties for rent.
Together with the strategic partners, Pacific Oil's goal is to invest in the development, exploration, refining and operations of the projects related to oil & natural gas, such as a large combined energy power plant users, an integrated supply chain cycle, the receiving terminal, the LNG liquefaction plant, and to the upstream development. Pacific Oil believes that its integrated approach will reduce project implementation time and reduced total cost of the results. The liquefied natural gas will play a strong role in the future of China's energy market; the Pacific Oil will focus on downstream operations in China, and the procurement of natural gas supply from other parts of the world.
The early oil industry suffered from a rapid alternation of booms and busts. Word about high profits enticed newcomers to build refineries or drill for oil, but the rapid increase in production drove prices down, bankrupting many. This process reduced supplies, leading to higher prices and increased profits, encouraging new entries into the industry and, consequently, a repetition of the previous cycle. Today, 24.7% of world energy demand is for the natural gas, and liquefied natural gas account for 5.7% only of this supply. The contribution of liquefied natural gas is only 1.5% of the world energy market transformation, so there is room for growth is huge. Use of natural gas is undergoing a major expansion of the world. Develop a clear use of burning natural gas as fuel, combined cycle power plant has become widely accepted, and encouraged all over the world including China. (Kavasserei and Hegstad 2007)
The Government of China has planned to increase the consumption of oil products and natural gas from 2% per anum to 10% per anum by 2012. This means that there would be an increase in gas requirements from 20m tons in 2009 to about 69m tons by 2012. This can prove to be a major factor contributing in growth of revenues of Pacific Oil, if the company continues to supply oil & gas products at competitive prices.
We are responsible for providing quality products to our customer on competitive prices and as per the needs and wants of the customers. We are proud to deliver quality and valuable solutions to the customers as well. Our mission repeats us the thought everyday about our direction in which we are heading.
We are an organization globally recognized for providing a package of innovative products and services along with desired solutions developed by experts & professionals who are committed to society & environment.
Our values are the actions through which we have gained success in the market. They are the real reasons for our success Combined with an integral culture of our team, it is important every day. Our core values are the center of our business every day. Into all these, we do so that they become part of our culture, it is important to our success.
Competition in oil market is very intense. The oil marketing and refining companies are struggling very hard to cater to the increasing prices of oil globally. Shell group and British Petroleum are two major players in the oil market of United States. They both are very well organized and they give some hard times to minor players in oil market like Pacific Oil. Overall, the oil and oil refining industry have a very bright outlook for increased revenues and profits in the next few years. Due to many economic uncertainties, many industries are triggered with clouds of decreased revenues and profits. In 2010, the global oil industry along with utilities industry represents a market of $2.3 trillions. (Jolene 2009)
The two sides of the global economy are dumped into recession and set off a disastrous inflation. Consequently, oil prices directly affect the economy of the world. Many countries are looking for an alternative energy source. For example, in 2003 dollars of oil at 38 dollars -55/barrel, the major OECD economies, the annual average of about 3.5% based on the real GDP growth. The main reaction is psychological. Sharp and rapid, large-scale oil prices (that is the 'oil shock') always affect the financial and business confidence in the so-called 'crisis' made at least a few months, the number of stock market value of the inevitable sharp compression.
High oil prices hurt economic growth is much more important - over time - more than the reality of global macroeconomic adjustment, high oil prices and energy prices.
The market segments of Pacific Oil are very competitive and are subject to a long list of government regulations. Due to increased trend of mergers and acquisitions, there are changes in the markets shares and prices of oil in the market. In order to cater the changing market share and price, Pacific Oil needs more resources to spend on labor and materials. The costs of materials and the labor are affected by the inflation over recent years. There is an impact on the prices of Pacific Oil's products and services due to extremely competitive oil market. The trends of increased prices are expected to continue in long-run as the demand of oil from the developing countries are expected to increase due to lack of oil exploration in these countries and infrastructure developments. Pacific Oil should continue to invest in developing new products and services catering customer needs and wants so as to gain a bigger market share. Pacific Oil will definitely invest in upgrading of machinery and equipment and attracting capital ventures in order to capture the oil market. (Michael & Jude 2010)
Human well-being and use of energy has an unpredictable link. It is a fact that the company discovering and making oil available to world at competitive prices will lead the market. Energy use from oil, natural gas and coal will improve prosperity and growth over the last couple of years.
Pacific Oil has estimated that the growth of energy demand is directly linked to the economic prosperity and there would be a 3% rise in economic growth annually through 2020. The demand of energy is expected to grow slowly at the rate of 2% per anum. This generally will reflect advanced technology, energy conservation and efficiency of the oil companies. Pacific Oil has a capacity to expand its operations to other parts of the world to increase the market share by catering to the growing energy demand globally.
It has been estimated that 60% of the energy demand of the world would be catered by natural gas and oil supply, over the next twenty years. Oil industry is taking advantage of increased technological advances resulting in decreased cost of oil exploration and supply. Similarly, the quality, performance, efficiency and the cumulated value of oil and gas products is expected to add to the value of this resource for the world economy.
During the era of fast-paced economic growth i.e. 1975-1990, Pacific Oil has applied major proportions of its resources to the supply of oil and gas. Pacific Oil was able to gain the markets shares of global oil market due to its concentration on competitive prices and the demand of oil. Pacific has focused on supplying oil to developing nations because there was increased demand of oil from these nations. The increasing demand of oil from China and India is a sign of…