Focus on Its Core Oil and Gas Business

Introduction

In the answer of the various companies towards the globalization, many industries are already experiencing the different changes that caused by the economic trends and other crisis. The economies of the developing and less developing countries are greatly devastated on the wave of impacts. The demands on the oil, petroleum, and gas are continuously growing and different refineries and other oil businesses felt the drastic changes. In the challenge of the inflation of the oils, many business groups changed their strategies. From the diversification of the tactics and strategies, the various companies are diverting their focus on different strategies wherein they can build their own growth and competitive advantage. Their focus is favorable in the entire organization and yet, the dissemination of the strategies may be hard because of the challenges that the organization solely shouldered.

Focus of Oil Companies

The oil producing companies are aware on the different challenges that are present in the market most especially in the international market. Because of the intense market competition, the challenges in the globalization make the view in the market more competitive than before. Part of the responsibilities of the business leaders is to deliver the appropriate strategy to adequately answer the needs for improvement and the needs to be more competitive. Based on this information, the companies are applied different strategies to lessen the pressure within the organization in meeting their goals. One of their basic strategies is the application of the information technology or IT in the process of their transactions or most of the processes.

Moreover, the challenges being faced by the oil and gas organization is with the association of the locating and producing the natural resources. This is the greatest challenge that most of the organization faces because of the competition the resources are sometimes drained, exploited, damaged, or saturated. This is a great alarming call for the organizations to promote some regulations wherein they can monitor the utilization or the use of the resources. In addition, the focus of the oil and gas companies is diverted because of the riding costs of different commodities or more likely, the fluctuation of the prices. The obligation of the companies to make the prices affordable for the market is not meant because of the prices in the world market. The challenges are doubles due to the environmental hurdles that creates a limitation in the objective of the company to expand and otherwise, deliver their products worldwide. The management of the companies in terms of their IT and other system and infrastructures distracts the other companies from achieving their corporate goal. This might limit the performance of the company that reflects in their revenues and strength of the stakeholders and their relationship with the management as well as the corporate social responsibility.

Merger and Acquisition

For some of the companies, the merger and acquisition are the norm in the industry that leads to total complexities in businesses and diversification. Due to the pressure in competition in the oil and gas industries, the operations might weaken and the efficiency among the people may not meet. Therefore, delivering the quality service can be impossible. In the coming years, the oil and gas organizations realizes that there is a need for the more focus on the optimizing their own organization by focusing more on their business. The core business focus dictates the more integrated financial, production, reduction of the unnecessary costs, land and asset management, and finding adequate solution that can address the needs of any petroleum company or natural resources.

The expertise that the oil and gas company might have could be based on the concentration of the business, technical and financial staff that dedicates on the best industry practices. Those practices might trigger on the valuable solution that could take the growth and future needs of the companies that in any moment, might give way to the success of the business.

Outcomes and Benefits

With the focus of the companies on their organization, there will be a less damage created and the promotion of the accessibility of the people to the other experienced people and together, integrated well in achieving the corporate goals. The different challenges can be minimized and experience avoiding the further risk is an additional strategy that the companies might take into an account for their own future use. The oil and gas are not bound to dedicate their potential for the team but in considering the growth of their own organization. The focus on the core activities of the company is inevitable and also expected in their journey to the ultimate competition.

Works Cited:

Adriatic LNG Tanks Transportation, 2009 [Online] Available at: http://www.gl-nobledenton.com/assets/downloads/Adriatic.pdf [Accessed 25 Feb 2010].

CGI’s Commitment to Oil and Gas, 2007 [Online] Available at: http://www.cgi.com/cgi/pdf/cgi_broc355_oilandgas.pdf [Accessed 25 Feb 2010].