...Report Introduction The following report will examine the 4 elements of the marketing mix and their relevance and importance within the retail petroleum industry. The marketing mix elements are often referred to as the 4 p’s of marketing and are product, price, promotion and place (Solomon, et al. 2011, p. 21). These 4 elements are the building blocks of an effective marketing strategy and are useful in gaining an understanding of marketing in the retail petroleum industry. This report will deal with each of these elements individually and discuss how the macro and micro environments of the retail petroleum industry in Australia affect the way marketers approach these 4 elements. Reference will be made to texts, industry reports, and an internet news article. These references will help to provide a complete understanding of the implications of the marketing mix on this industry. Product A product is ‘a tangible good, service or idea that satisfies consumer or business customer needs through the exchange process’ (Solomon, et al. 2011, p. 11). Products can be referred to as having three levels. These levels are the actual, the core and the augmented product (Solomon, et al. 2011, p. 22). An actual product is the tangible good or service that delivers the desired benefit to a customer. In the retail petroleum industry we have a number of actual products that are offered to customers. Firstly, there is petrol and diesel, as well as related products including LPG, oil...
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...Research topic: Global Forces of Petroleum Consumption In Oil and Gas Industry The most feasible research topic to be carried out is global forces of petroleum consumption in oil and gas industry. Petroleum stated as one of the most important natural resources in the world that consumed as most diverse in human living. But it feels like the amount of oil that being produce in the current time as comes to its peak. There is the reason of nowadays-innovative technologies being invented to be the substitution of petroleum usage, but petroleum still playing an important role of objects production such as pharmaceuticals, cosmetic and plastic as the foundation of chemical reaction, which means petroleum is still remain the important position that irreplaceable of natural resources for our human living. Therefore, oil and gas industry companies are facing the hard time as in not just only facing the competitors within the field and also handling the threats from substitutions as well. The most appropriate framework to figure out the macro environmental influences and able to visibly the threats and opportunities from the external issue is PESTEL analysis by containing six aspects, which are political, economical, social, technological, environmental and legal as in entire analysis. The most significant influence in political aspect is controlling hydrocarbon reserves by government. The government controls the oil reserves right to their national companies by excluding the other foreign...
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...research of environmentalist Jay Westerveld in 1986, in an essay regarding the hotel industry’s practice of placing green placards in each room, promoting reuse of guest-towels, ostensibly to “save the environment. Energy sector represents “biomass, coal, electricity, geothermal energy, hydrogen, hydropower, natural gas, nuclear power, petroleum, solar power, and power wind”, companies involved in generating energy. In this research paper, main focus is analyzing major energy industry components such as Petroleum industry, Nuclear power industry and Coal power industry, in order to explore the related Green Washing phenomenon. As an example for green washing, “Australian Federal Government’s Green Washing Campaign of nuclear power as a “clean” energy source and as the primary solution to reduce Australia’s green house emissions”, analyzed in this research. As an example in coal industry “ the clean coal” campaign recognized and analyzed as an green washing propaganda done by both government and private corporations. In petroleum industry, green washing occurs in two ways such as marketing campaign and research contributions. BP’s Beyond petroleum, and Chevrons “people do” advertising campaigns recognized as a green washing attempts and analyzed. Also ten chosen research agreements between corporations and universities is...
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...Effectiveness of Corporate Social Responsible practices handled in the petroleum industry in Bangladesh: A case study of Shell By Delwar 2014 Dissertation submitted to Anglia Ruskin University in partial fulfilment of the requirements for the Masters Programme Abstract The research issue is that multinational organisations in the petroleum industry such as Shell and British Petroleum are being pressurised by their stakeholders to take responsibility for their business activities. In view of stakeholder pressure, companies have developed and implemented CSR policies and practices. However, the effectiveness of these CSR policies and practices is questionable as the effects of companies activities have negatively impacted the lives of their stakeholders and continue to do so (Amao, 2013). There is extensive research being carried out on understanding the effectiveness of multinationals CSR practices as there exists a wide gap between what companies are saying and what they are actually doing. Practising CSR makes companies responsible for looking after the needs of their stakeholders, makes companies take steps to protect the environment, improve people's livelihoods, motivates employees and increases organisations' effectiveness and efficiency. Multinational state they are practising CSR. Yet their activities have caused much harm to stakeholders. Shell's activities in Nigeria have caused severe health risk to families’ drinking water...
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...ExxonMobil Introduction Government spending has been an instrumental component and reflection for the United States economy. As an integral part of the business cycle, the last several years have been through the trough since the recession in 2008. While government spending has been increasing, for a couple years it did reduce in addition to maintaining a steady quantity of spending up until the past few years of recovering and growth. As a result, there has been a steady increase of spending in the past three, with anticipation of greater spending in the years ahead. While the overall amount of spending has been increasing as a result of a stronger economy, there has been a surplus of oil and petroleum drilling. Given the lower demand for drilling, the oil and petroleum industry has been greatly affected with Exxon Mobil reporting lower profits, and BP has been reporting a loss, with anticipation of mass layoffs ahead. (Krauss, 2016) Fiscal Policy, Tax Rates, and the Economy Roughly 35-36% of our total government spending accounts for the gross domestic product (GDP). After the government bailout funding for banking and stimulating the economy with an additional $700B after 2008, over 42% of the annual GDP was of government spending. Federal income tax hovering between 16.8-17.2% for median class income has been consistent for the past several years. “Today's government spending levels are indeed too high, at least relative to the average level of tax revenue the government...
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...Minerals Management Service-Corporate Code of Conduct History The Bureau of Ocean Energy Management, Regulation and Enforcement formally known as the Minerals Management Service (MMS), is an agency within the United States Department of the Interior (DOI) that is headquartered in Washington, DC and is responsible for managing the ocean energy and mineral resources on the Outer Continental Shelf. The MMS oversees two operations, namely Offshore Energy and Minerals Management (OEMM) and Minerals Revenue Management (MRM). In 1982, Congress passed the Federal Oil and Gas Royalty Management Act. In response to the creation of the new legislation, then Secretary of the Interior James Watt created the MMS as the federal bureau responsible for managing the collection of revenue generated from programs including: oil and gas, coal, metals, potash, and renewable energy resources, as well as oversight of energy companies to ensure they are following the regulations of protecting the safety of their workers, as well as the environment. The MMS collects approximately $13 billion annually making it one of largest revenue sources for the Federal Government. The jurisdiction of MMS is limited generally to a region of the Outer Continental Shelf (OCS) that starts three miles from the coast and extends up to 200 nautical miles from the cost. There are two laws that establish this range: the United Nations Convention on the Law of the Sea (UNCLOS) Treaty and the Outer Continental...
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...as a S&P 500 Component (Exxon Mobil). When it comes to oil, Exxon Mobil does it all. With 102,700 employees, Exxon has broken its operations into two main categories Upstream and Downstream (Yahoo Finance). Exxon does partake in other types of operations such as it operates coal mines and has its own IT, real estate, help center, as well as an engineering and chemical research and development department which fall under the umbrella of Exxon Mobil Corp (Exxon Mobil). Exxon’s two main divisions are incredibly important in keeping its industry advantage, where the Upstream sector is responsible for the exploration of new resources in an efficient and economical manner. The Upstream sector also extracts resources and then deals with the wholesale and distribution of the minerals. The Down Stream operations include refining the mineral and managing retail operations and marketing. Due to Exxon’s vast capabilities and duties within its industry, Exxon finds itself competing with many other companies that are fighting for a share of the market revenues. Just a few of its large competitors are Chevron, BP, Cabot Oil and Gas, Marathon Oil Corp (Yahoo Finance). There are also a number of overseas oil competitors such as Saudi Arabian Oil Co, National Iranian Oil Co, and Royal Dutch/Shell (Market...
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...part of the course curriculum, the second year MBA students are required to undertake a study on macro analysis of a particular industry and thereby, prepare a project report on the chosen industry. The objective behind preparing this project report is to relate the management subjects taught in the classroom to their practical application and to get insight into practical situation. Petroleum Industry is considered to be the back bone of an economy because this is the main source of energy till date. Any economy around the world would fail to advance a single step in the absence of Petroleum Industry. The Petroleum Industry is divided into two segments namely Upstream Sector consisting of Exploration and Production of crude oil while the Downstream Sector consists of Refining, Processing, Storing, Marketing and Distribution of petroleum products. The most important part of the Petroleum Industry is the Petroleum Refining Industry which refines the crude oil to convert it to the usable fuel. It also derives many derivative products out of the crude petroleum like natural gas, naphtha, etc which can be used in various ways. Hence, for these reasons, we have chosen the Downstream Sector of the Indian Petroleum Industry for our Macro Analysis project. As this is a Macro Analysis project, we have concentrated on the Indian Petroleum Industry and that too focusing on the Downstream Sector for our study and not gone into the in depth analysis of the various players and their...
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...1.0 Environmental and Social Issues in Oil and Gas Industry 2.1 Safety Safety is one of the biggest concerns in every manufacturing industry, especially in petroleum industry. Petroleum industry easily identified as very dangerous industry especially those working at a oil rig. Petroleum companies are drilling oil in the mid desert, shores, and even at Artic seas. The condition of the sea bed is a huge concern on safety as well as the ice on the Artic region which can melt at any time causing death and injuries to thousands of workers. Its dangerous level is best represented by the wages in Petroleum Industrial which is soaring high tremendously. High wages paid to compensate the dangerous activities the workers involved in this Oil and Gas industry. Besides that, human errors such as carelessness or recklessness, delays in equipment maintenance or repair, failure to give proper training, failure to properly communicate, and incompetent safety procedures are also main reason of safety concerns in petroleum sector. Meanwhile, the nature of industry itself might cause the accidents involving explosions, mishaps while raising pipeline, oil rig, salt dome accidents, and contamination in storage and derrick safety violations. The safety in oil and gas industry is growing but at the same time increases in oil and gas activity correlate with an increase in the rate of fatal occupational injuries, particularly when inexperienced workers are not sufficiently trained in...
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...Kencana Petroleum Berhad 1.0 INTRODUCTION A core competency by definition is a unique ability that a company acquires from its founders or develops that can make a significant contribution to perceived customer benefits of a product or services and it is difficult for a competitor to imitated. Core competencies are what give a company one or more competitive advantages, in creating and delivering value to its customers in its chosen field (Anonymous). According to Fred (2013), core competencies define as a value chain activity that firm performs especially well. When a core competence evolves into a major competitive advantage, it will turn into distinctive competence. Core competencies may include any combination of skills, technologies, processes, knowledge or expertise and are often achieved as a result of long-term development processes and/or experiences (Mayhew, 2010). Competitive advantage on the other hand is defined as a measure relative to rivals in a given industry. Competitive advantage happen when a firm can do something that rival firm cannot do, or owns something that rival firm desire (Fred, 2013). For example, Nestlé core competency is food and beverages that is full with nutrition, health and wellness. By defining own core competencies and SWOT (strength, weaknesses, opportunity and treats) the company will be able to focus on its organisation uniqueness. In this study, I will focus on the core competency for Company SapuraKencana Petroleum Berhad...
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...Wellbeing(HSW) codes, regulations and best practice. I will look at the minimum requirements and industry standards verses mandatory and statutory requirements. A comparison will be investigated for improvements or modification between the two countries HSW, to see if the needs of an ever expanding offshore petroleum exploration and production division are being me. This comparative study will look at the Health, Safety and Wellbeing for Offshore petroleum operations. I will be making comparisons against Shell New Zealand and BP in the United Kingdom’s standards and regulations from an individual, team, company, industry and National viewpoint. Suggestions made from the high level information gathered in this report will be used to form a comparative overview of the HSW offshore petroleum regulatory framework. All people are entitled to the same level of protection regardless of where in the world they work. To ensure a consistent approach to Health, Safety and Wellbeing I will be looking at all levels to recognise any major gaps. Many advances have been made to the HSW since the 1988 Piper Alpha disaster with the total revamp of the Permit to Work System, this had a massive effect not only on the UK and NZ offshore HSW but also to offshore work in general all over the world. New Zealand has adopted many of its offshore HSW policies and regulations from many of the already developed petroleum countries, although many would say that these procedures have been adapted to suit our...
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...The Petroleum Institute Eisa Mohammed Al Nuaimi 200504377 Cohort - 06 Introduction Over the past four decades, companies and organizations in the UAE aimed to strengthen their competitive advantage by applying state of the art methods, practices, and heavily trading with other countries. This interaction led to the integration of markets and technologies and is defined by Globalization. The Organization of interest to the research is the Petroleum Institute a University & a Research Centre which was established in Abu Dhabi in 2001[i] and one of its aims is to become a renowned institution in engineering education and research hub for the energy industry. The importance of the oil industry in UAE is of significant importance because the UAE ranks as the 6th largest proven oil reserves[ii]. This report aims to look closely on how Economic Integration affects the oil industry as a whole and the Petroleum Institute in specific by applying a S.W.O.T. Analysis to the PI to stress several issues regarding its competitiveness in the regional and international economy. Background The Petroleum Institute is a private university located in Sas Al Nakhl, Abu Dhabi, UAE. The P.I. was established in 2001 by the Emiri Decree of H.H. Sheikh Khalifa bin Zayed Al Nahyan. The institution started with sponsoring from Abu Dhabi National Oil Company (ADNOC) and four international oil companies which are British Petroleum, Japan Oil Development Company, Shell and Total[iii]. The...
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...Industry Analysis Petro Oil Berkeley College J. Kerr, S. Powder. T. Lopez Background An industry analysis is a useful tool for business strategists. It helps businesses understand various pieces of the marketplace and how these various pieces may be used to gain a competitive advantage. Analyzing an industry you would have to know the industry SWOT. It is important for Petro oil to identify the threats and opportunities facing their business and also to focus their resources on developing unique capabilities that could lead to a competitive advantage. Analyzing Petro Inc., and the heating companies overall will give the company a better understanding of their position relative to other companies that provide similar services. In order to help implement initiatives for Petro Inc. we will analyze some aspects of the company to help identify its strengths and weakness and where there is opportunity for growth. M.A Fessler was the inventor of the historic oil burner. In 1915 he started his own company Called the Fess system company and as we know it today as Petro. The first oil burner was installed in Boston, which resulted in a rapid growth the first few months of Petro's success. Soon after Petro made a huge decision of entering into its first contract to purchase fuel oil. Bases out of Stamford, Connecticut, today Petro Inc. provides heating oil across the United States. Petro Inc. also has ventured...
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...and participation in the petroleum industry. The Obasanjo government needed to achieve the objective by ensuring that a substantial portion of the activities in the oil and gas sector, which is the mainstay of Nigerian economy, were carried out in the country by Nigerian companies and Nigerian workers. As it is currently, more than 70 percent of the jobs in the oil and gas sector are still carried out by foreigners, an action, which is contrary to the local content policy of the Nigerian government. At a time, stakeholders in the industry argued that government was not serious in attempting to stop this act of 'cheating', as it could not lobby the National Assembly to sign the Local Content Bill into law. Many described it as an aberration that such a bill that is geared towards improving indigenous participation in the oil and gas industry, after many years that it was initiated, has not been passed into law. Even the Nigerian National Petroleum Corporation (NNPC) at a point warned that it will no longer be acceptable for oil companies that operate in Nigeria and derive enormous revenue from the country to hide under convenient excuses to export Rig Shipyard/Shut-down Repairs & Maintenance to other countries, a threat which the oil companies did not take seriously as they continued to take the bulk of their works to foreign countries, because they have no confident in the ability of Nigerian companies to handle such jobs. Experts in the industry estimate that Nigerian...
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...ARTICLES This article first appeared in The Edge Malaysia Weekly, on December 14 - 20, 2015 [pic] A construction industry executive recently rented a high-end condominium for about 30% less than the going rate a year ago. Why was the condominium so cheap? The property agent replied that the previous tenant — a high-ranking oil and gas (O&G) official — had lost his job. “It’s quite common now for O&G expatriates to lose their jobs, so the property market has also been impacted,” the agent said. According to a senior executive in the once-booming oil and gas sector, as many as 7,000 to 8,000 executives have lost their jobs after the second round of industry-wide retrenchments in the country. He has been told by colleagues that Petroliam Nasional Bhd (Petronas), Scomi Group Bhd and UMW Oil & Gas Corp Bhd have put a freeze on hiring and the list of companies doing the same is getting longer. “Worse still, MMHE [Malaysia Marine and Heavy Engineering Holdings Bhd] is looking to discontinue the services of as many as 800 contractual workers, and Petronas is also mulling over a similar move,” he says. Such moves are often denied and never publicised. An MMHE official tells The Edge that the company only makes such announcements internally, but adds that she has not heard of recent staff-reduction exercises. “MMHE, like most businesses, is operating in a very competitive industry and under tough economic conditions. Regrettably, this often has an unavoidable impact on staff,” an MMHE spokesperson...
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