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POG303 Strategic Management

tag 0 Download 12 Pages / 2,844 Words tag 03-07-2021

Question

During the period 2014-2016 the oil and gas sector underwent an oil price drop. This led to a fall in profits for the various types of firms operating in that sector – for example, International Oil Companies, National Oil Companies and Oil field service providers. When sectors face difficult times firms are faced with strategic choices and changes to make. These changes could be cost efficiencies, merger and acquisition, redundancies, restructuring, diversification, entering new markets, moving out of markets and divestment, amongst others. Change can be difficult for firms and employees. Therefore, in order to bring about successful or stabilising strategy in such challenging times a change management process needs to be carefully implemented.

“Many O&G companies are at a crossroads with a chance to make lasting changes for the better. Players that adapt, survive and prosper while the oil price is low will emerge with a sustainable business model that could reap rich rewards in more favourable times”.

From: Opportunities-in-adversity-strategies-for-a-lower-oil-price (PwC, 2015)

Choose one firm operating in the energy sector, focusing on the period of 2014-2016. Write a report critically analysing your chosen firm's changes in strategy and the firm's change management process. Your report is expected to include one change management model.

Your report should consider the following:
  • Evaluate the changes implemented by the firm during the period of 2014-2016, including an assessment of the drivers for the changes.
  • The role of leadership in a change management process.
  • Provide justified recommendations on how the firm can improve its change management process. 
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