The paper "Impact of Oil and Gas Production in the Developing World - Gabon" is a perfect example of a business case study. The newly appointed CEO of Sanawa Oil Ltd, Hazel Akua-Aba has been given the responsibility of restoring the reputation of the company following the scam and illegal customs in the gas and oil industry. Thus, the top management of the enterprise is considering Gabon for the expansion of its operation and pursue E& P projects. The purpose of the report is to analyze, investigate and suggest feasible strategies that the organization is capable of adopting for succeeding in the Gabonese oil market. Recommendations The company should follow a strategic alliance with an international oil company established in Gabon. The enterprise must conduct extensive research about the technical expertise needed to operate in the region. The organization must also develop a training and skill development department to engage local people in its operations according to the new law enacted by the government of the country. BackgroundSanawa Oil Ltd is a medium-sized fast follower in the petroleum industry.
It has experienced success through acquiring valuable Exploration & Production (E& P) contracts in developing countries that produce petroleum and also due to the increase in the price of petroleum.
The company was facing a challenge to restore its reputation in the world market by expanding its operations internationally. The previous CEO, Silvio de Binti was forced to leave when it was disclosed that an unlawful compensation was made to the administration of a developing country to depress local area groups who raised their voices against the shortage of community development projects from the petroleum revenues. The manipulation of the military of the country by the enterprise has resulted in the death of 8 civilians.
This in turn has resulted in the decline of the market share of the company in the gas and oil industry and also in the reduction of the organization’ s market capitalization by several billion. The “ greed and grievance” theory has been used to describe the economic and political situation in the country of Gabon. The PESTLE analysis, Porter’ s five forces and also the Porter’ s Diamond model has been used to evaluate the external factors which affect the oil and gas industry with reference to the “ resource curse” theory (Hammond, 2011).
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