Organization and Summary of the Industry
You are required to develop a business case for improving data-driven decisions for a “business problem” in a real organization.
The research organization is the Shell Company New Zealand which is an international corporation in petroleum industry. According to Haque et al. (2017) is that petroleum industry is generally termed as the oil pitch or oil industry in most nations. Thus, oil and gas industry or petroleum industry is a complex chain constituting of three key components. The primary components in petroleum industry include the upstream industry, midstream industry and downstream industry. The upstream industry is responsible for the finding and production of crude oil and natural gas. Upstream industry can be referred as the exploration and production or E&P section of the petroleum industry (Jones, Harrison & Felps, 2018). Conversely, the midstream industry of the diligence involves various activities such as processing, storage, marketing and transportation of oil products such as the crude oil, NGLs or natural liquid gas such as ethane, butane and propane as well as sulphur. As observed by Haque et al. (2017) is that midstream industry normally provides the connection between long distance petroleum producing regions and populated regions where consumers are residing. On the other hand, the downstream industry involves the oil refineries companies, petro-chemical plants, and oil and gas products wholesalers, retail outlets such as Shell Company New Zealand. Lastly in the downstream industry is the distribution companies of natural gas. In addition upstream industry soupçons reach every consumer and it provides hundreds of thousands products to the consumers. The products include the diesel, artificial rubber, stimulants, medicines, ordinary gas, plastics, heating lubricant, jet oil, pesticides, herbicides and fuel (Jones, Harrison & Felps, 2018).
The Shell Company New Zealand is being faced by various problems include the retaining of knowledge, maintenance of efficient processing system, talent management, and stiff competition level in the petroleum industry (Karas, 2016). However, the competition strategy level in the oil and gas industry include business unit and corporate level, marketing, technological and intellectual possessions management, and environmental level strategy in competition. The business unit and corporate of Shell New Zealand has faced stiff competition because of the inadequate implementation and designing of the two unit for profitable growth and enhancing of the shareholder value inside the company. As the company consumers are upstream, downstream and services companies (Laszlo & Zhexembayeva, 2017). By building the appropriate business management approach the fundamental understanding will be revealed to reduce the competition level in the oil and gas industry. In addition, the marketing, advancement of technology and management company intellectual possession will eradicate the stiff competition level being faced by most companies in the petroleum industry (Laszlo & Zhexembayeva, 2017).
Competitive advantage can be described has the situation or condition that place an organization in the most suitable or superiority to generate more profit when contrasted with other firms in the same industry. Source of organization competitive advantage in connection to its business value in the market are the localization of Shell Company New Zealand into international market, the strategic acceptable between marketing and manufacturing in the industry, appropriate human capital or workforce in the company, advancement and adaptation of technology changes (Mignot, Ferrari & Mork, 2015). Other competitive advantages are the improved production techniques, organization wide market orientation and consumers cluster has study indicate that companies near consumer assess more competitive advantage in terms of innovation when compared to other companies outside the clients cluster.
Level of Competition in Petroleum Industry and Competitive Advantage
Virtaluoto, Sannino and Engeström (2016) stated that critical success factors can based on firm marketing strategies. CSFs essential marketing components of Shell Company New Zealand are the key company will enable the company to achieve its objectives, vision and mission. According to Suhonen (2017) organization marketing CSFs forms the capacity of an organization successful aspect in its industry. Some of the marketing CSFs that can be based on Shell New Zealand Company include the developing of effective marketing communication skills, enquiry of customers’ experience on the services being provided by organization, and employing of the best individual with the right marketing to increase the market size of the company (Silva et al., 2017). Effective marketing communication skills will enable salespersons to convince consumers about the advantages of company products and services in the petroleum industry in contrast to others firms in the same industry who their marketers cannot sale their services to potential clients. By delivering a great services to consumers Shell Company New Zealand will be able to compete with other competitors’ favorably. Other CSFs are also the mandatory marketing aspects, because they formulate capability of the firm in the petroleum industry.
On the other hand, authority and sustainability are the aspects which will able the organization marketing team to survive the industry and determine flexibility in the market despite of the competition faced by the firm (Weerawardena & Salunke, 2017).
Permitting Weerawardena and Salunke (2017) argument on the role and principle of marketing information need they find out that all organization have to encirclement it, because all marketers and marketing departments depend on marketing information needs to establish a marketing strategies. Hence, Shell Company New Zealand marketing information need linked to company include internal company information needs, marketing intelligence information needs and specific market research information needs has deduced by (Rawhouser, Cummings & Crane, 2015).
Weerawardena and Salunke (2017) added that internal firm’s information should be analyzed first to expand the organization marketing information needs. The internal company information is the strength and capability to raise its marketing in the petroleum industry in a specified period. Hence, marketers of the company are required to have an effective internal examination of the marketing factors in order to determine where the company stands in the current market. Marketing intelligence is another aspect of marketing information need required in the company business environment. Marketing intelligence include the general market demand, potential market and competitors in the market (Mignot, Ferrari & Mork, 2015). In addition, Shell Company New Zealand must carry out an effective market research that are constituted with the internal information and market intelligence will help marketers to know what customers want. Therefore, a time to time market research and consumers research is needed to improve the company market within a specified period.
Figure 1. Profit Statistics (Jones, Harrison & Felps, 2018)
Statistics indicate the profit of Shell Company New Zealand from 2010 to 2018. In 2016, the company generated a total profit of around 27 percent per annum U.S dollars. Whereas, 2010 profit made amounted to 19 percent per annum.
Critical Success Factors of Marketing in Shell Company New Zealand
Figure 2. Sales and Purchases Statistics (Jones, Harrison & Felps, 2018).
Statistics designate sales and purchase of Shell Company New Zealand from 2010 to 2018. In 2016, the company made sales of around 4.3 percent per annum U.S dollars. Whereas, 2010 purchases made in the same year was 0.4 percent. The highest sales and purchase were made in the year 2016 of 4.5 and 0.8 percent respectively.
By analyzing the key components in the petroleum industry the Shell Company New Zealand will be able to understand to increase company products circulation by 23 percent in its current market. Also Pauleau, Collard & Roquilly (2017) has stated that the innovation techniques of the company will be improved because consumers demand, taste and preferences on various goods and services are changing in the current market. Examination of the competition level in the oil and gas industry is a clear indication that the Shell Company New Zealand can still make it in the industry by developing various competitive strategies (Pauleau, Collard & Roquilly, 2017). The critical success factors of the company were examined and it was realized that the organization is ready to fight back the various challenges by executing the CSFs effectively and efficiently (Prabhakar, 2017). Information needs and information requirements were based on the encounters facing the organization and what should be done to sustain the company.
When assessing the sales revenue of Shells New Zealand, various factors affecting sales results were examined. Factors such as competitive action and marketing trends considered. By increase revenue the company add to solve the problem by hiring long-term marketers.
According to Pal et al. (2014) is that sales revenue is being calculated by adding up all the revenues from consumers buying, and then subtract from related costs or from undeliverable products of the company.
It is justifiable because the critical success factors of the organization or Shell Company New Zealand and the business problems (Pal et al., 2014). The business information such the inadequate financial report from suppliers have been catered for by created sales revenue metrics of the organization.
Haque, J., Ansari, K. R., Srivastava, V., Quraishi, M. A., & Obot, I. B. (2017). Pyrimidine derivatives as novel acidizing corrosion inhibitors for N80 steel useful for petroleum industry: A combined experimental and theoretical approach. Journal of Industrial in Petroleum.
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Virtaluoto, J., Sannino, A. and Engeström, Y., (2016). Surviving Outsourcing and Offshoring: Technical Communication Professionals in Search of a Future. Journal of Business and Communication.
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