Strategic Management for Oil and Gas Industry-myassignmenthelp

Question: Discuss about theStrategic Management for Oil and Gas Industry. Answer: Introduction The term strategic management has been referred as the concept of identification and determining the strategies or the tactics and which are also required to be implemented and executed by the managers for the advancement and enhancement in the productivity and performance level within the business organization. The concept has also been considered as the mechanism of scheduling, managing, monitoring, analyzing the operations within the organizational structure (Adewuyi and Oyejide, 2012). This process has also been considered as very much relevant and effective and also assists in the attainment of the desired goals and objectives. This will also be aiding the business organization in the attainment of the competitive advantage over the rivals. The term can also be defined as the decisions or the acts which are to be under-taken by the managers for deciding the results of the limits of the performance of the business entity. The below executed analysis has been analyzed on an invest igation which has been made on the portfolio made focused on the Californian nut producing industry which has been facing wide-scale, highly sophisticated theft at all stages of the supply chain. The below presented report will be including the recommendations, investigation for the presented situation. Background to the situation In the presented scenario the focus has been given on the sophisticated theft which has been occurring in the nut manufacturing industry. The occurrence of the theft has been experienced at all the stages in the system of supply chain management. The crime rings in Californias prosperous agricultural industry are increasingly stealing heavy goods carriers which are full of high priced nuts (Aigboduwa and Oisamoje, 2013). The governing authorities and the victim firms were initiating and forcing the efforts to break the splurge which was costing millions to the concerned firms. The business corporations make utilizations of hi-tech tactics so as to hack the trucking entities for stealing identity. The hackers were using false shipping papers, posing themselves as legitimate truckers and drive loads and tons of nuts such as almonds walnuts, or pistachios valued at $150,000, and some worth $500,000 each. Moreover, it has also been observed that the after this when the nuts shipment fail ed to arrive on the expected destination by the time they are shipped to some other destinations in Europe or Asia where the truck hackers fetch a high amount on the sale of the nuts in black market. On the basis of the conducted research it has been analyzed that the business entity suffered a loss of nearly $7.6m for the all four years. As per the saying of Crosswell the general manager of Caro nut Co. Its made my life miserable, The business entity was victimized for six times in the last year and suffered a loss of $1.2m In these the theft stole cashews imported from Vietnam and Africa that were roasted, salted and packaged in Fresno (Anomohanran, 2012). On the basis of the research conducted by US Department of Agriculture it has been found that the region of California has been observed to be at the top in the production of nuts such as almonds, walnuts and pistachiosas compared to any other regions and which valued to $9.3bn in 2014 and the value of Almonds alone was $5.9bn. According to Dan Brayant, who is a supervisory special agent appointed for the violent and the organized crimes programs of FBI Sacramento office, analyzed that the high value of nuts has become one of the biggest reason for garbing the interest of the criminal rings and who are making advantage of of weaknesses in the cargo shipping indust ry for reaping huge profits. PESTEL analysis PESTEL analysis is the business approach which has been considered as relevant and liable for analyzing the external factor which are prevailing in the environment and are also have some impacts (Anthony, 2012). As presented n the scenario the below executed PEST analysis has been made focused on the California and this has been done for analyzing the factors which are influencing the business environment within the economy: Political: The political variable of this approach can strongly stimulate and impact the business environment. This variable plays an empirical part in stimulating the industrial sector and also the concerned industry (Aron, 2013). The main components of this variable are political stability, norms and order situations and regulations co-related with the business etc. These political variables are held responsible for stimulating the industry. On the basis of the conducted research it has been analyzed that California has a strong democratic political environment and also have efficiency and effectiveness in the laws and regulations which are levied by the governing authorities. Economic: This factor comprises of the components and also the analysis is also conducted over the variables which are associated with the economic conditions of the region in which the entity executing the business activities (Ciarreta and Nasirov, 2012). The economy have a GDP of over $16.760 trillion and which makes the region one of the biggest economy all over the globe. California is one of the most developed region and sue to which the industrial sector is benefited on various grounds. Social: The region has been facing issues of aging population and which will develop a issue of shortage of labor for future (Ghandi and Lin, 2014). And this can also be counted as a problem for the industrial sector as human resource is one of the integral assets for any of the organization. Technology: The two cornerstones of California are innovations and technology. And moreover, the economy has been ranked at top in adopting and implementing the technological up-gradations. Five Forces Analysis California manufactures most of the tree nuts in The United States. This state is growing most of the countrys walnuts, almonds and pistachios (Hiatt, Grandy and Lee, 2015). The industry is facing issues of theft as more than 35 truckloads of walnuts, almonds and pistachios, worth $10 million have missed in California. Thus lucrative nut business of California is continuously a target of refined crime rings. Due to this, the industry is facing losses. This section of report includes the industry analysis of nut sector by using Porters five forces model. Five forces for this industry are stated below; Industry Rivalry This force in porters five forces defines the intensity of competition among existing businesses in the industry. However, the nut industry in United States includes some large companies, but it is typically made up of several smaller organizations. In this commodity industry, major players are such as; Blue Diamond Growers California (Hu and Xu, 2013), Paramount Farms Los Angeles and Primex. The competition in the industry is high and organizations are attaining profits and revenues by exporting the nut products to other countries. Apart from these facts, growth and revenue generation are affected by the issues of theft in California and some other states of United States. In California, the nut theft is all-time high that led to the losses of $4.6 million form 31 cases in last three years (Keil, 2014). Threat of new entrants In nut industry, the cost of entrance includes buying an appropriate land and it also needs nut crops and trees, machines and required working capital. The barriers to new entrants are moderate as the fixed costs can be very lower in this industry (Killing, 2012). The industry has some large players, like; Blue Diamond California, which may pose competitive pressure on new entrant. Nut production is such an industry that may face risks of failure and uncertainties, for example; theft in Californian nuts. Threat of substitutes The nut industry includes different types of nuts, like; walnuts, almonds and pistachios for which there are no substitutes as they are used as a specific food ingredient (Mitchell, Marcel and Mitchell, 2012). Thus, by analyzing the Californian nut industry, it can be stated there are no identifiable substitutes for products, which utilize nuts as their ingredient. Eventually, the threat of substitute in the industry is week. Bargaining power of suppliers In Californian nut industry, there is high competition among suppliers and the organizations are adopting diversified distribution network and channels. There are various players in the Californian nut sector (Pinkse and Van den Buuse, 2012). Supplier power in relation to nut producer industry is moderate. Bargaining power of buyers The bargaining power of buyers is high when customers purchase the nut products in large volume. In the state, the customers purchase the nuts from farms, retailers, farmer markets etc. The bargaining power of customers is high in this industry as they can buy products from different groups, like; food processing firms, retailers and wholesalers (Rahim and Liwan, 2012). Resources and Capabilities Resources of the company are the assets, which are owned by the organization and it needs to have to deal with some issues. One of the best examples of this is large scale theft of nuts in California. There are some organizations with resources and capabilities, which assist the organization in preventing the theft of nuts in Californian industry. The related resources and capabilities are stated below; State and domestic law enforcement State and domestic law enforcement can play a vital role in preventing the theft in nut industry as the affected organizations can contact to the state and domestic law enforcement agencies. These agencies are working together on the theft investigations (Ruqaishi and Bashir, 2013). For example, in the year 2013, Tulare law enforcement in the state was able to arrest 4 people by communicating with the Los Angeles port force. In this way, the affected organization can overcome the losses of nut theft. Cargo shipping entities can develop an alliance with the law enforcement firms to aim at prevention of theft losses. Awareness and education efforts Furthermore, the affected organizations may have an awareness program and education efforts. This is the first step to prevent the theft of nuts and send the nut thieves to jail. Under this program, the company will create an internal theft task force to resolve the issue. There will be training and educations programs about the related issues, so that they can understand this. The organizations will have a code of conduct for drivers, which will include policies and penalties for them. Focus on security concern Along with code of conduct and law enforcement, the organization should have capabilities to address the security concerns. It will take some steps for providing security, like; keeping the records of truck drivers, checking licenses of drivers, utilizing finger print scanners, biometric installation in truckers etc. Considering these concerns, the organization will be capable to secure the supply of nuts from one place to other place. Identifications of five organizations The below mentioned are the five organizations which are engaged in preventing theft in the industry: Western Agricultural Processors Association: The business entity has been mainly focused the business operations and critical compliance areas such as air pollution, food safety and safety services. The business entity has been sharing the staff with California Cotton Ginners and Growers Associations. And by this way the entity has been making use of resources and capabilities. California Farm Bureau: This is a non-profit organization established mainly for farmers and ranchers which comprises of Farm Bureaus from nearly every county in California. The business association is into improving the quality of the wellbeing in California. The association make use of advocacy, ongoing outreach and economic services and products for those involved in in agricultural production. American Pistachio Growers: The business entity is a trade association which has been making use of the human resource and the contemporary technology as the resources and capacities. Blue diamond: The business corporation is a specialist in Almond has developed a code of conduct and also some norms are imposed so as to prevent the theft done of nuts. California Highway Patrol: This is an association which is mainly engaged in making use of technological surveillance tools and also there are some of the norms and regulations which aid in prevention of the theft. Conclusion In the limelight of the above executed analysis it has been concluded that California is the region who has been considered as the largest producer of various types of nuts. The industries who are engaged in the production of nuts are facing an issue of thefts of truck-loads of nuts. The above presented analysis has been made focused on the PEST analysis which has been conducted on California so as to analyze the external environment of the region. Moreover, the report also consists of the five forces which support the analysis made on the industrial sector. The nest is the identification of the five organizations which are involved in preventing from the theft and also some recommendations are made so as to prevent the companies involved in this sector. Recommendations The business entities should make some more investments over the concept of safety and security of the nuts while they are shipped. 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