Strategic Management Jp Kenny London Jp Kenny Essay

Excerpt from Essay :

Strategic Management: JP Kenny London

JP Kenny London was "established in 1978 as the original office of the now JP Kenny group, the London office has amassed over 30 years of experience in executing pipeline and subsea projects for clients around the world" (J P. Kenny Ltd. 2011). Its meager beginnings in 19th century roots in the fishing industry have spawned into a multi-billion dollar organization, providing major energy resources.

This report examines the current strategic position of JP Kenny and the strategic options for the future of JP Kenny. By using the (PESTLE) Political, Economic, Social, Technology, and Environmental factors affecting JP Kenny, an assessment of opportunities, threats, strengths and weaknesses may be ascertained. Hence, such findings demonstrate the direct influence on JP Kenney's sustainability.

JP Kenny experiences a shortage of qualified engineers within the United Kingdom. To overcome this JP Kenny source engineering staff from around the world. Furthermore, JP Kenny has a skilled workforce in which these skills are transferable and can be used to explore the renewable energy industry.

Research of new and innovative technologies is of great magnitude within the industry, and JP Kenny will need to continue to research and to upgrade their technology to remain competitive. Therefore, research and technology will aid in its strategic capabilities in which JP Kenny is continually developing and evolving expertise in areas that add value to its customers.

Sustainability is critical to ensure continuous delivery to valued customers, as indicated in Exhibit A. Many customers have come to rely on JP Kenny's presence and contribution in the energy industry. With numerous awards and accolades, JP Kenny's relentless pursuit of excellence will undoubtedly fuel its key capabilities in offshore renewable services, thus delivering value through proven processes and technologies.

Strategic Management: JP Kenny London

JP Kenny London office has amassed over 30 years of experience designing and executing pipelines and subsea projects for clients around the world. It has evolved from its 19th century roots in the Scottish fishing industry. The Wood family's fishing business began in the 1890s when the family owned a number of fishing boats operating out of the port of Aberdeen in North East Scotland. In 1912, William Wood founded Wood & Davidson, a ship repairing and marine engineering firm to service the fishing fleet. Since, the Wood family's business has developed into a global energy services company employing 14,000 people in 36 countries, with sales of $2.2 billion (J P. Kenny Ltd. 2011). Insomuch, the large diversity of products and services offered by JP Kenny requires its management to have a strong understanding of the external and internal factors that govern its operations. To gain market share vs. its competitors, JP Kenny must assess its opportunities, threats, strengths, and weaknesses, while engaging in strategic options for sustainability. By evaluating such factors, JP Kenny may improve its competitive position in the marketplace.

Historical Background (J P. Kenny Ltd. 2011)

William Wood had seven sons and the youngest, John Wood (Sir Ian Wood's father), took over the family's share in the early 1950s. In 1964 John Wood bought out the other shareholders and became chairman -- the company had 50 employees and a turnover of £50,000. In 1964 Ian Wood joined the business, now named John Wood & Son, and the marine base expanded into fishing, fish processing and general marine engineering. At that time, Aberdeen was a major deep-sea trawler port and their 23-strong fleet was playing an important role. Ian Wood became managing director in 1967 and under his leadership, the company switched from the bigger trawlers to more profitable inshore boats and was the largest independent Trawler Owners in Scotland. During the 1970s Scotland's new industry, North Sea oil presented an ideal opportunity to translate marine engineering experience into engineering and support services and by the end of the 1970s, The John Wood Group (Aberdeen) had become one of the largest private industrial companies in Scotland, employing 1750 and with a turnover of £18 million.

From 1970 and throughout the 1980s, there was steady development of Wood Group's North Sea business, both onshore and offshore. In 1986, it formed numerous joint ventures, thus strengthening its position. By 1989, it was the UK's largest indigenous oil service company and a world leader in the overhaul and repair of industrial gas turbines, employing 2,000 people. During the 1990s, the Group expanded its international oil & gas activities and extended internationally with many strategic acquisitions. In 1991, the Group was employing 2,500 and operating in the North Sea, Europe, North America and the Middle East and declared profits of £16.9million, and by 1999, more than 5,500 people were employed in 25 countries and profits were up to £33.6million. Then in 1993, JP Kenny was acquired, with its world-renowned pipeline and subsea capability, this enhanced its position for forthcoming marginal field developments. Subsequently, long-term partnering arrangements were developed with a number of major clients making it a market leader in the North Sea. Such partnerships are a testament to its determination to achieve the highest standards of quality and customer dedication.

Opportunities & Threats

To analysis the external environment in which JP Kenny operates, a PESTEL model evaluates external factors, such as opportunities and threats that influence the operations of the London office. Further evaluation is conducted together with Porters five forces model to analyze competition within the industry.

Political Landscape:

Some political realities that must be taken into account when for business operations are trade quotas and restraints, industry subsidies, investment incentives, trade agreements, economic treaties, and bureaucratic processes. Each factors plays a major role in business processes and profitability. The majority of JP Kenny's operations are conducted overseas

(J P. Kenny 2011), leading to an increase in operating costs. When fuel costs increase, the cost of transporting goods increases, as well. JP Kenny depends on political stability in the other countries in which its suppliers operate. Therefore, it is paramount to ensure this stability by keeping a pulse on the economic climate. JP Kenny's presence in overseas markets facilitates its brand management and field expertise. As one of the very few independent subsea and pipeline companies with a global network of activities and involved in all phases of oil and gas extraction from appraisal through to abandonment, JP Kenny is uniquely placed to assist customers to evaluate subsea and pipeline system opportunities.

Moreover, this focus toward globalization shifts most of JP Kenny's operations to major overseas markets.

Economic Conditions:

Economically JP Kenny is affected by the price of oil and gas because of the availability of raw materials. As with other raw materials, crude oil is traded on the world market. Recently, crude oil prices have risen dramatically, driven by rising global demand and political instability in several oil producing countries (Chevron 2011). Crude oil prices are important in determining gasoline prices because crude is the primary raw material used to produce gasoline and other petroleum products. In some cases, the price of crude oil may account for up to half the price of a gallon of gasoline. Insomuch, the western economy for oil and gas is low, which reduces the overall price of such valuable commodities. The organization of the Petroleum Exporting Countries (OPEC) controls the oil market and maintains a stable price, although pricing fluctuates. If the market predicts a shortage of the oil and gas, then the oil companies will look for new supplies. Subsequently, discovering new streams can take many years; however, the most expedient way to discover new streams would be for the oil companies to increase production on existing fields.

JP Kenny depends upon the purchasing power of its customers, and when economic conditions are unfavorable, customers will feel the adverse effects regarding disposable income and credit worthiness. Such changes reduce their ability to purchase the energy resources that comprise a large portion of JP Kenny's profits. Other economic indicators that affect JP Kenny are consumer's spending propensity, unemployment, price indexes, tax rates, consumption patterns, gross domestic product trends, and interest rates. Insomuch, the company's ability to plan equitably across generations and cultures has fostered new development in globalization for the energy magnate.

Social Issues:

Social factors relate to assessing the social, cultural, and demographic aspects. Since Subsea is an engineering and specialised industry, JP Kenny have become aware of the shortage of qualified and experienced engineers within the UK. Therefore, it has great reliance on the aging population for their expertise and experience, e.g. If 5000 engineers retire and only 2000 graduate, the demand for skilled staff will become greater making the shortage within the industry a significant long-term threat. Additionally, "The education system in the United Kingdom is said to be biased towards the arts and pure science rather than applied scientific engineering, and business-type subjects. In the United Kingdom, approximately 30% of engineers have a professional qualification, while in Germany the figure is 70%" (Worthing and Britton page 313). Such trends have social implications that shape the way people live, work, produce, and consume. Such…

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