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Strategic Development Within An Organisation

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In this report discussion related to business strategies and decision making process of business organisation has been undertaken. Woodside Petroleum is the business organisation has been used in this report to implement different aspects. Brief introduction of Woodside Petroleum has been discussed and different business strategies undertaken by Woodside Petroleum have been discussed. Woodside Petroleum also involves in some controversies and among them two has been analysed in this report. Internal and external environmental analysis has been done so that different aspects and factors affecting Woodside Petroleum can be analysed. PEST analysis and SWOT analysis has been used to analyse environment. Organisation culture and leadership style of Woodside Petroleum has been discussed and analysed in this report.


Business Strategies and their Aapplication

Background of Woodside Petroleum

Woodside Petroleum is one of the leading business organisation engaged in the business operations of oil and gas. Oil extraction is one of the core business operation or product portfolios of Woodside Petroleum. Woodside Petroleum is engaged in different business operations like exploring, developing, producing and marketing & trading.

Mission- Mission of Woodside Petroleum is to maximise value of core assets used in the business operations. Mission is to grow product portfolio that Woodside Petroleum has for their business operations. Last mission is to leverage capabilities as a leading business organisation.  

Vision- Vision of Woodside Petroleum is to be leader or global leader in terms of upstream oil and gas products and extraction.

Competitive advantage- Competitive advantage of Woodside Petroleum is the functional capabilities and use of advance technology operational efficiency. Decision making capabilities in terms of operational and setting priority in developing values is competitive advantage over others.

Business strategies

Current strategy of Woodside Petroleum is to be positioned them in the section in order to have reliable core asset base, strong relationship with stakeholders and create capabilities or competitive advantage over others. Core business strategy is to conduct value chain analysis in the business operations and manage value chain (Aras and Ebooks Corporation 2012). Business strategy of Woodside Petroleum is to grow and explore more in the exploration business operation. Current strategy of Woodside Petroleum is sustainability business strategy. Under this strategy, pollution prevention, sustainable development and utilisation of resources in most optimised manner is the major outcome (Rogers and Makonnen, 2014).


Two Controversies and Outline the Outcomes

Controversy 1

Woodside Petroleum has been started a project in liquefied natural gas and which involves investment of $ 45 billion. This investment is made under off shore exploration of oil and gas in Western Australia. After passage of some time, positive headlines related to new project of Woodside Petroleum has created interested in terms of investment in the project. After two years many companies has invested $ 140 billion in new project of Woodside Petroleum. This has increased production of gas and Australia has becoming attractive in terms of exporting gas (Ralph et al., 2014). After some time, investor’s interest was shifted towards some other projects and they deploy their investments from project initiated by Woodside Petroleum. This causes some loss while operating project and after some time Woodside Petroleum had withdrawal from their project.

This is most shocking decision of Woodside Petroleum as this project is started with the intention of developing Australian market and put positive impact on economy. This decision has impacted many business organisations operating their business in Australia and many on shore projects have been hampered. In this whole business decisions many stakeholders associated with the project has faced downtime in terms of stock prices and business operations.

Controversy 2

Woodside Petroleum leaves from Mauritania project has also comes under controversy on the basis of ethical decision making by the management of Woodside Petroleum. In this controversy, management of Woodside Petroleum has taken decision of selling assets of oil extraction that project of oil extraction in Mauritania is using. Sale agreement is made between project and Petroliam National Berhad and Woodside Petroleum. Petroliam National Berhad is the government owned business organisation by Malaysian government. Mauritania project has reported highest level of sales revenues (including Woodside Petroleum’s production, exploration and development). This project is named as Chinguetti project. But soon this project has not lived up to expatiation of Woodside Petroleum standards in terms of oil extraction and production. Production level of Mauritania project has been set to be 75000 barrels per day but they are able to produce 15000 barrels per day.

Woodside Petroleum has withdrawn from the project and government of Africa has faced high losses. In this transaction, Woodside Petroleum has taken unethical decision as they are involved with Malaysian government and withdrawn from the African contract, as left open and in loss.


Environmental Analysis (External and Internal Analysis)

PESTLE Analysis

Political environment- Each and every company at the market place get affected by political environment in the way of government policies and rules. In the same way, Australian oil industry involves labours to work, wages top pay and taxation policies to be followed. Political pressure will always impact workplace and work practices of Woodside Petroleum in Australian market place. Government intervention and policies made by government impacts decisions taken by management of market place in Australia.  

Economic environment- Economic condition of the country or market place will impact business entity sand their decision making process. In case of Woodside Petroleum, their long term decisions will be impact with economic factors or state of economy in Australian market. Economic factor like demand and supply of oil in the country will decide price of products and price of oil will also depends on currency market. Inflation rate and balance of payment in Australia has impacted Woodside Petroleum in its decision making.

Social environment- Demographic, income distribution, migration, culture and religion are some aspects that impacts decision making process of Woodside Petroleum. Culture is the most important consideration that business entity has to take care of and in case of Australian oil market; society does not consider oil extraction a negative activity. There are some section of society which consider oil extraction by Woodside Petroleum or by other companies to be source of pollution and impact environment in negative manner.

Technological environment- In oil extraction industry, heavy equipments is used in order to undertake business operations. Pipelines, extraction equipments, oil tanks and transportation methods are some areas where Woodside Petroleum has impacted. Another area of technological use by the Woodside Petroleum or in oil extraction industry is in providing safety to workers, enhance efficiency, etc. These areas are to be managed by management of Woodside Petroleum and technology has impact business operations (Sun et al., 2014).

SWOT Analysis


Main focus of management is on technological development and developing innovation in the business operations.

Has highest area of oil extraction in Australia.

Woodside Petroleum has competitive advantage in terms of market coverage and leading business organisation.

Experienced management, capable managers in the business operations, quality oil extraction assets are some strength of Woodside Petroleum (Alexandru, 2015).


Woodside Petroleum is involved in biggest Australian oil extraction scandal in past years. This scandal is related to jamming price points in terms of oil industry.

Woodside Petroleum has been facing many legal issues in their business management. One of the most important legal issues is the litigation of illegal land acquisition (Helms, 2013).


Management is considering to expand their LNG capabilities in their business operations has the biggest opportunity. Woodside Petroleum has undertaken various projects that will build LNG market for Woodside Petroleum and they can become market leader.

There is opportunity for Woodside Petroleum in term of supply of gas i.e. they can supply on shore and off shore (Yuan, 2013).


There are various common threats that are involve or attached with oil or nature extraction companies like natural disasters, accidents at large level, etc.

Operating risk involve in business operations of oil extraction industry.

Oorganizational Culture or Leadership Style within the Organisation

Organisational Culture

Leadership styles, decisions and management of business operations in terms of influencing employees or team members to accomplish or achieve management objectives. These activities became organisational culture under which employees are directed and controlled (Leadership styles, 2016). Core value of Woodside Petroleum has been towards creating maximum value of assets, maintaining leverage and development of product portfolio. Organisational culture is the process of influencing people of organisation, value and beliefs are shares in this process and behaviour of employees are directed and controlled towards achievement of objectives and goals of Woodside Petroleum.

In case of Woodside Petroleum, Peter J Coleman is the chief executive office and managing director. Role of Peter J Coleman is to build strong and positive organisational cultural that influence achievement of organisational objectives.


Leadership Style

Autocratic- In this leadership style, managers will take decisions alone i.e. without considering view points of subordinates or employees. In this leadership style no authority will be delegated to employees so that they can take decisions by their own (Turner, 2016). In this type of leadership style, leader needs to posses qualities like strong decision maker, emphatic, etc. Once decided by leader or manager then everyone has to follow the decision (Burgess and Vachon, 2016). This type of leadership has been adopted by Woodside Petroleum at their middle level of management. In this case, decisions taken by managers of different departments have to be followed by employees of respective divisions.

Democratic- Under this type of leadership style, leaders will take input or suggestions from his / her team members or from employees. In this leadership type, leaders can consider suggestions but at last leaders or managers are required to take decisions for the whole division or team (Saeed et al., 2014). Ultimate responsibility of decision will lie in the hands of leaders only and no other team member can be liable for the same. Democratic leadership is usually find in small organisations were there are small members (Cook and Rouse, 2014).

Transactional- In this type of leadership style, managers or leaders of divisions receive some tasks or work from management. Then managers or leaders are required to set predetermined goals or targets in consultation of employees or team members. Directions provided by managers are required to be followed by employees and in doing so performance will be measured for rewards and punishments (O’Connell, 2016). There are some bonuses like incentives, bonus pay, etc and punishment likes deduction of salary, increase targets, etc. Woodside Petroleum has been using transactional leadership style in their business operations.

Following are Sme Results of Leadership on Strategy and Culture of Woodside Petroleum

Motivate employees- Leader or manager has to achieve their organisational objectives and goals and for the same they are required to develop business strategy or plan. In this case Woodside Petroleum has to motivate their employees so that they can be directed and influenced towards achievement of organisational goal. Peter J Coleman has formulated and initiated many reward policies and remuneration policies that motivate managers and employees to perform better (Gillam and Siriwardena, 2013). This has resulted in achievement of organisational goals and objectives in more effective manner.

Initiate innovation- It is the responsibility and duty of leader to set agenda or to set objectives of targets. Effective leaders or leadership, influence team members or employees to build positive organisational culture (R?ducan and R?ducan, 2014). In case of Woodside Petroleum, leader or CEO Peter J Coleman has initiated new process of business management. Leaders are required to initiate innovation in the business operations so as to achieve competitive advantage over its competitors. Another important result that Woodside Petroleum has achieved is effective communication process in the business operations (Kim and Thompson, 2012).


It can be concluded that business strategy is the most important aspect of the business organisation that shall be analysed and implemented. Corporate strategies include different aspects of business organisation. Woodside Petroleum has been involved in many controversies and two of them have been discussed in this report. PEST analysis is the best analysis tool in order to analyse external environment. SWOT analysis has used to analyse internal factors that impacts business operations. Organisational culture is the value and believes that impact business organisation in terms of directing employees in achieving organisational objectives.



"Leadership styles", 2016, Nursing Older People, vol. 28, no. 8, pp. 43-43.

Alexandru, B. 2015, "SWOT ANALYSIS OF PUBLIC TRANSPORT SYSTEM IN BUCHAREST", Management Research and Practice, vol. 7, no. 1, pp. 14.

Aras, G., eBook Library (EBL) & Ebooks Corporation 2012, Business strategy and sustainability, 1st edn, Emerald, Bingley, UK.

Burgess, Z. & Vachon, P. 2016, "Leaders to follow; Experts say growing a leadership team takes dedication, time", Crain's Detroit Business, vol. 32, no. 35, pp. 13.

Cook, J. & Rouse, L. 2014, Leadership and management in the early years: a practical guide to building confident leadership skills, Teaching Solutions, Albert Park, [Victoria]; Albert Park, Australia;.

Gillam, S. & Siriwardena, A.N. 2013, "Leadership and management for quality", Quality in primary care, vol. 21, no. 4, pp. 253.

Helms, M. 2013, SWOT Analysis Framework.

Kim, T.H. & Thompson, J.M. 2012, "Organizational and market factors associated with leadership development programs in hospitals: a national study", Journal of healthcare management / American College of Healthcare Executives, vol. 57, no. 2, pp. 113.

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R?ducan, R. & R?ducan, R. 2014, "Leadership and Management", Procedia - Social and Behavioral Sciences, vol. 149, pp. 808-812.

Ralph, N., Birks, M., Chapman, Y. & Francis, K. 2014, "Future-Proofing Nursing Education", SAGE Open, vol. 4, no. 4.

Rogers, S. & Makonnen, R. 2014, Entrepreneurial finance: finance and business strategies for the serious entrepreneur, Third;3rd; edn, McGraw-Hill Education, New York.

Saeed, T., Almas, S., Anis-ul-Haq, M. & Niazi, G. 2014, "Leadership styles: relationship with conflict management styles", International Journal of Conflict Management, vol. 25, no. 3, pp. 214-225.

Sun, Y., Guo, P., Ma, Z., Li, T. & Dang, S. 2014, "UK-based external business environment analysis of outdoor adventure clothing using the PESTEL tool and its future outlook", IEEE, , pp. 306.

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Yuan, H. 2013, "A SWOT analysis of successful construction waste management", Journal of Cleaner Production, vol. 39, pp. 1-8.


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