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

strategical management - Essay ExampleDisturbance in North Africa and the Middle East had significant advert (Jones, 2012) while Uganda seized disputed license of TOC and held its 33% stake sale to heritage and CNOC (Mason, 2011c) ECONOMIC Significant kickoff of revenue for country. Increase in tax from UK government of about ?10 billion resulted in change magnitude concerns from oil and gas exploration companies claiming negative impact on job losses and household bills (Mason, 2011b) expert Extensive technological expertise is required for oil and gas exploration. TOC has signed five year tighten with FMC technologies for operations in Subsea services (PennEnergy Editorial Staff, 2013). SOCIAL Development of exploration plants results in social using 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 Wet fine-tunes was warned for affecting natural land to elephants and lions by UNESCO (Manson, 2011a) LEGAL Governments be increasing pressures with increased tax system in lieu of depleting universe of discourse oil reserves (Holmes, 2011). INDUSTRY ASSESSMENT Oil and Gas exploration industry is increasing hawkish crossways 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 turn from Uruguay for the exploration received 15 bids from nine participants while four were granted rights. The tin made for 15 blocks yet accepted bids for nine only while every block had competition among more than trey bidders (Webber, 2012). Owing to worlds increased need of energy the bargaining power of buyer is forever reducing 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 Tullows capacity to compete. OPPORTUNITIES THREATS The acquisition that has been Tullows strategy to enhance its portfolio still offers great opportunities in future. Current develop ments in Uganda and Ghana such as development of Jubilee oil Field have capability 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, monetary resources hence pose serious threats. Oil