In the present business environment of Oil and Gas Industry, it has become essential for the small organisation to have a strategic plan for expanding their business (Chima, 2011). Evaluating business environment has become highly important for expanding its business in other parts of world. A company has to analyse market entry opportunities as well as the situation of the industry so as to achieve higher profits (Yusuf, et. al., 2014). Egdon Resources is one such UK based small scale company in this industry. It is having higher potentials for expanding its business of renewable and off shore wind sector. This report highlights the ways in which Egdon can utilise its cross sector capabilities so as to become Energy Company for the future. It also illustrates the business condition of the oil and gas industry as well as the environment that is present there for expanding their business.
This company was established in the year 1997. It is a small business firm that has the potential to expand its business in others sectors related to energy. Core Competencies of this company will help it in expanding its business in other sectors also. Some of its core competencies are as follows:
It is essential that company take care of competitiveness in the industry so as to understand whether company can enter into a new sector or not (Shuen, Feiler and Teece, 2014). Porter’s five force analysis is very effective in this regards.
There is large amount of market opportunity available with this company and they are very capable to grab them. These opportunities are in the field of renewable energy sources like the offshore wind (The future of oil and gas, 2017). Apart from this it is also essential for the company to make some advancement in the field of harnessing solar energy.
It is also to be understood that there are many changes that are taking place in the industry (Ng and Donker, 2013). This has reduced the profitability of the company as it has to make many changes in its organisation especially in the field of use of technology. This requires a whole lot of investment which is a challenge for the company.
If this company aims to enter into new cross sector of business then they have to make strategies for transforming their business. In the due process they have to make sure that their focus does not deviates from what their business goals are. On the other hand it is also essentially to be noted that Egdon has seen a considerable decline in its performance due to the various political and economic instabilities in UK (Eikeland, 2011).
In the coming Five years, Edgon Resources aims to optimise its profitability through various kinds of investments in many fields of energy. This will help company in ensuring its long term profits and hence marking a considerable success in the future. There is large scope of generating higher profits in switching to the new fuel industry especially the renewable resources (Darbouche, 2011). This is due to the fact that the cost of production or refining of renewable resources is less and the hence larger profits can be generated.
This is a framework that helps to determine whether there is a chance of entering into new market (Masini and Menichetti, 2012). This situation deals with the study of variables that could affect the profitability of the company.
The strategies need to be made with proper analysis of all the variables. In this regard PWC strategy can be highly beneficial for the firm and will help in achieving higher growth rates.
Conclusion
From the above based report it can be concluded that there are many small and large firms that are operating in the Oil and Gas Industry. Edgon Resources is one such smaller firm but is having a large capability to grow. It can take use of core competencies for grabbing the market opportunities present in the field of renewable resources or offshore wind energy. It is crucial that firm understands the competition it is facing in the market from its big competitors. They are having larger amount of resources and hence having greater potential for changing the trends of the market. It is not an industry that is attracting the new investors due to the decline in the performance of many old firms. This makes the chances of Edgon resources generating higher profits larger as well as ensuring long term profits for the company. The future of the Industry revolves around the renewable resources. Companies needs to invest after making a complete evaluation of the trends in the market as well as the profitability it can ensure in the coming five years or so.
References
Chima, C.M., (2011) Supply-chain management issues in the oil and gas industry. Journal of Business & Economics Research (JBER), 5(6).
Darbouche, H., (2011) The implications of the Arab uprisings for oil and gas markets.
Edgon Resources Plc, (2017) Annual Report and Financial statement. [Online]. Available at: https://www.egdon-resources.com/wp-content/uploads/2017/11/Egdon-Resources_AR17.pdf [Accessed on: 27th February 2018].
Eikeland, P.O., (2011) The Third Internal Energy Market Package: New Power Relations among Member States, EU Institutions and Non?state Actors?. JCMS: Journal of Common Market Studies, 49(2), pp.243-263.
Inkpen, A.C. and Moffett, M.H., (2011) The global oil & gas industry: management, strategy & finance. PennWell Books.
Masini, A. and Menichetti, E., (2012) The impact of behavioural factors in the renewable energy investment decision making process: Conceptual framework and empirical findings. Energy Policy, 40, pp.28-38.
Ng, A. and Donker, H., (2013) Purchasing reserves and commodity market timing as takeover motives in the oil and gas industry. Energy Economics, 37, pp.167-181.
Shuen, A., Feiler, P.F. and Teece, D.J., (2014) Dynamic capabilities in the upstream oil and gas sector: Managing next generation competition. Energy Strategy Reviews, 3, pp.5-13.
Strantzali, E. and Aravossis, K., (2016) Decision making in renewable energy investments: a review. Renewable and Sustainable Energy Reviews, 55, pp.885-898.
The future of oil and gas, (2017) Why we still need oil and gas in the future. [Online]. Available at: https://www.siemens.com/innovation/en/home/pictures-of-the-future/energy-and-efficiency/the-future-of-oil-and-gas-trends.html. [Accessed on: 27th February 2018].
Tietenberg, T.H. and Lewis, L., (2016) Environmental and natural resource economics. Routledge.
Yusuf, Y.Y., Gunasekaran, A., Musa, A., Dauda, M., El-Berishy, N.M. and Cang, S., (2014) A relational study of supply chain agility, competitiveness and business performance in the oil and gas industry. International Journal of Production Economics, 147, pp.531-543
We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.
Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.
Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.
Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.
Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.
Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.
We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.
Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.
You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.
Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.
Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.
You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.
You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.
Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.
We create perfect papers according to the guidelines.
We seamlessly edit out errors from your papers.
We thoroughly read your final draft to identify errors.
Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!
Dedication. Quality. Commitment. Punctuality
Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.
We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.
We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.
We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.
We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.