...PETROZUATA The case of Petrozuata Petrozuata is a joint venture between Conoco, then part of DuPont, and Maraven, a subsidiary of Petróleos de Venezuela S.A. (PDVSA), Venezuela’s national oil company. It is the first in a series of development projects that are aimed at “re-opening” the Venezuelan oil sector to foreign investment. The project consists of three key components -Production of heavy oil from a new field in Venezuela’s interior -Transportation of the oil to coast via pipeline -Transportation of oil to refineries along the US Gulf Coast Once refined, the syncrude would be sold at market prices to Conoco under a DuPont-guaranteed off-take agreement. At the end of this 35-year purchasing agreement, Conoco will transfer its shares to Maraven at no cost. The sponsors agreed to use 40% of equity (40%) and 60% of debt to finance the project’s $2.425 billion total cost. The financial advisors, Citicorp and Credit Suisse First Boston, used a multi-pronged financing strategy to raise debt from commercial banks, development agencies, and bond investors. In the end, the sponsors raised $450 million in bank finance and $1 billion in Rule 144A bonds, all of which was non-recourse to the sponsors following completion of the project. The decision to finance this deal on a project basis was actually a dual decision regarding both financial and organizational structure. Risks analysis The purpose of this paper is to analyze how the sponsors allocated both contractual...
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...Exxon Mobil External Analysis By: Travis Smith, James McKiernan, Tom Johnson, and Peter Ackley Analysis of the industry This industry is controlled by several large corporations, and many smaller organizations. It is difficult to enter into this market because of the high entry barriers. There are many small exploration companies that contract out to the big players of this industry such as ExxonMobil and the members of the strategic group. Some small exploration companies are Continental Energy Corporation, Atlantic Petroleum, and Anadarko Petroleum Corporation. Anadarko Petroleum Corporation works hand in hand with Beyond Petroleum, and was indirectly involved with the oil spill in the Gulf of Mexico. The members of Exxon’s strategic group consist of Beyond Petroleum, Conoco Phillips, and Chevron. These members are a part of the strategic group because they explore, produce, refine and market oil and gas. A reason why we didn’t pick Royal Dutch Shell is because we found that they have a joint venture with Exxon Mobil. With the recent hunches of more regulation in the oil industry, these corporations are investing in natural gas companies. In order for these companies to remain competitive they need to always be innovative and creative. This is another reason why we picked these three members as a part of the strategic group. Conoco Phillips is the smallest one in the strategic group bringing in only $16.99 million in net income at the end of 2008 (ConocoPhillips, 2008)...
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...Comprehensive Analysis and Recommendation Report By: Submittal Date: May 3rd, 2013. Table of Contents 1.Executive Summary............................................................................................3 2.History / Origins.…..............................................................................................4 3.Company Split-2012...........................................................................................6 4.Porters Five Forces.............................................................................................7 a. Barriers to Entry............................................................................. 7 b. Bargaining Power of Suppliers………….…………………………..8 c. Bargaining Power of Buyers........................................................... 8 d. Threat of Substitutes ......................................................................9 e. Competitive Rivalry ....................................................................... 9 5. SWOT Analysis ........................................................................................10 Strengths and Opportunities ........................................................ 10 Weaknesses and Threats ..............................................................13 6. Regulations and Subsidies .......................................................................14 7. Financial Statement ...
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...Chevron Corporation What began as the Pacific Coast Oil Company on September 10, 1879 in San Francisco transformed into what is now Chevron Corporation, recently ranked 8th among the world’s top oil companies by Petroleum Intelligence Weekly in 2011, second among US oil companies behind ExxonMobil. The company has a market capitalization of over $204.9 billion. They have expanded into essentially every area of the energy industry, including exploring for, producing, and transporting crude oil and natural gas; refining, marketing, and distributing transportation fuels and lubricants; manufacturing and selling petrochemical products; generating power and producing geothermal energy; providing energy efficient solutions; and developing energy resources for the future, such as advanced biofuels. In 2011, Chevron produced, on average, 2.673 million barrels of oil per day, 75% of which was done outside of the US. By the end of 2011, Chevron’s global refining capacity reached 1.96 million barrels of oil per day. They are the largest private producer of oil in Kazakhstan, oil and natural gas producer in Thailand, and overall oil producer in Indonesia. Currently, Chevron has numerous projects underway that will tap into new resources around the globe, including several offshore projects in Africa, Asia, and Europe. They are also involved with the development of the Athabasca Oil Sands project in Canada and the development of steam used to recover oil. As mentioned, they have begun...
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...ABSTRACT The purpose of this project is to determine multinational corporate sustainability within the oil industry and perform country analysis, industry analysis, and analysis of firm’s international strategies. INTRODUCTION The five oil companies that we chose from the 2010 Global Fortune 500 are ExxonMobil, Sinopec, ConocoPhillips, Petrobras, and Lukoil. In our project, we performed analysis on the 10K report of domestic companies, as in ExxonMobil and ConocoPhillips and the 20F report of foreign companies, as in Sinopec, Petrobras and Lukoil. A comparison was done on the five companies to determine if there exists a corelation between sustainability perspective and financial performance. OIL INDUSTRY ANALYSIS Oil accounts for a large percentage of the world’s energy consumption, ranging from 32% for Europe and Asia, and 53% for the Middle East. The world consumes 30 billion barrels of oil per year, with developed nations being the largest consumers. The United States consumed 25% of the oil produced in 2007. In 2009, world energy consumption decreased for the first time in 30 years (-1.1%), as a result of the financial and economic crisis (GDP drop by 0.6% in 2009). This evolution is the result of two contrasting trends. Energy consumption growth remained vigorous in several developing countries, specifically in Asia (+4%). Conversely, in OECD, consumption was severely cut by 4.7% in 2009 and was thus almost down to its 2000 levels. In North America, Europe and CIS...
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...from a broader perspective, the operation of an organization and the market one serves. You must learn to think, act, speak, and process from the “management mind.” This capstone course draws from all functional areas of an enterprise to provide strategic direction to an organization. It also provides engineers with a management perspective as a complement to the engineering orientation, which they currently possess. Strategies are offered to ensure not only success in a competitive “for profit” environment, but the sustainability of success throughout the economic cycle. A framework is developed to understand the interrelation of accounting, finance, operations, engineering, and marketing. Class format will be lecture, case study analysis, open discussion, guest speakers, and student presentation. Student Notice: As a...
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...Industry Analysis Oil Company Table of Contents I. Introduction and Background 3 II. Dominant Economic Characteristics 4 Market Size 4 Scope of Competitive Rivalry 5 Market Growth Rate 5 Numbers of Companies in the Industry 6 Customers 7 Degree of Vertical Integration 8 Easy of Entry/Exit 9 Technology/Innovation 9 Product Characteristics 10 Scale Economies 10 Experience Curve Effects 11 Capacity Utilization 11 Industry Profitability 11 III. Six Forces of Competition 11 Force 1: Buyer Bargaining Power 12 Force 2: The Threat of Substitutes 12 Force 3: Supplier Power 12 Force 4: Rivalry among Existing Firms 12 Force 5: The Threat of Entry 13 Force 6: Relative Power of Other Stakeholders 13 IV. Competitive Position of Major Companies and Competitor Analysis 14 Royal Dutch Shell 15 ExxonMobil 17 British Petroleum 19 Chevron 20 Total 22 ConocoPhillips 24 V. Key Success Factors 26 Oil Demand 26 Prices 26 Technological Advancements 27 Maintaining Partnerships 27 Industry Matrix 28 VI. Industry Prospects and Overall Attractiveness 28 Trends 28 Potential Threats 29 VII. Conclusion 29 References 31 I. Introduction and Background What is crude oil? Crude oil is a dark, sticky liquid which, scientifically speaking, is classified as a hydrocarbon. This means crude oil is a compound containing carbon and hydrogen, with or without non metallic elements such as oxygen and sulfur...
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...Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://blogs.ft.com/energy-source/2010/03/02/bps-strategy-presentation-growth-cost-cuts-biofuels-ma-and-more/#ixzz3AHpONpiH Overall, the theme from Tony Hayward, the CEO, is that BP has great assets, in part thanks to the deals of the past decade, such as the takeovers of Amoco and Arco and the creation of TNK-BP, but is still not managing them as well as it could. Having lagged well behind the pack of oil majors when Hayward took over, as measured by return on capital, BP is now about average, but it would like to get closer to the leader, Exxon. That is the context for all the plans B The key points of that plan are: 1. $3bn to be saved through cost-cutting and efficiency improvements over the next 2-3 years. 2. Roughly $2bn from refining, putting the emphasis on efficient operations rather than just getting the refineries running, which has been the priority. A further $1bn from better project management, resulting from the creation of a new global development unit...
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...External and Internal Assessments 1 External Strategic Assessment “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” – Charles Darwin “Nothing focuses the mind better than the constant sight of a competitor who wants to wipe you off the map.” – Wayne Calloway, Former CEO, PepsiCo 2 1 External Audit – Sources of Information •Internet •Libraries •Suppliers •Distributors •Salespersons •Customers •Competition 3 External Strategic Management Audit - The macro environment Scanning (PESTEL analyses, Scenarios) - Industry or Sector Analysis (5 forces, industry/product life cycle) - Competitors scanning (Strategic Group Map, CPM) - The Organization responses (EFEM) 4 2 Layers of the business environment 5 Key Aspects of PESTEL Analysis • Not just a list of influences • Need to understand key drivers of change • Drivers of change have differential impact on industries, markets, and organisations • Focus is on future impact of environmental factors • Combined effect of some of the factors likely to be most important 6 3 Macroenvironment – PESTEL (1) 7 Microenvironment – PEST(EL) Political Economic • Government stability (+) • Taxation policy (+) • Foreign trade regulations (+) • Social welfare policies (-) • Business cycles (-) • GNP trends (-) • Interest rates (--) • Inflation (+) • Unemployment (-) 8 4 Microenvironment...
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...Macroeconomics A wide range of understanding about the macro-environment helps a company to maximize its position amongst the influences of the global economy. Economic, political, legal, technological, socio-cultural, international demand, supply impacts, and demographic trends are all factors that influence the macro-environment. The macro-environment is always changing, so the success of the business rides on their ability to adapt to these changes and forecast the macro economy better than their competitors (Bodie). Being proactive and making a sound macro-environmental analysis can be a means of gaining a competitive advantage, or at least not being concerned by a competitive disadvantage. In completing a top-down analysis we start with the global economy (Bodie). Technological factors play in to the macro-environment by means of new inventions and development, materials development, innovative manufacturing, distribution and logistics. This also includes changes in the way that information is sent and received. This can be closely related to the environmental impacts that happen within an economy, such as depleting natural resources (Sieminski). The variations of different countries economic performance and within their regions are considerable (Bodie). What happens in other countries’ economies will influence the U.S. economy and its markets in either a negative or positive way depending on the economic circumstance. What is originally forecasted for the...
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...Strategic Research Project Analysis: NOBLE ENERGY, INC Respectfully Submitted to: Dr Shengsheng Charlie Huang Strategic Management MGMT 4309- Fall 2013 Table of Contents 1. Executive Summary 2. Introduction 3.1 Company Background 3.2 Purpose of the study 3. External Analysis 4.3 General Environmental Analysis 4.4.1 Demographic Segment 4.4.2 Economic Segment 4.4.3 Political/Legal Segment 4.4.4 Socio-Cultural Segment 4.4.5 Technological Segment 4.4.6 Global Segment 4.4.7 Summary of the General Environmental Analysis 4.4.8 Industry Driving Forces 4.4 Industry Analysis 4.5.9 Description of the Industry 4.5.10 Industry Dominant Economic Features 4.5.11.1 Market Size 4.5.11.2 Market Growth Rate 4.5.11.3 Industry Trends 4.5.11 Five Forces Analysis 4.5.12.4 Threats of New Entrants 4.5.12.5 Power of Suppliers 4.5.12.6 Power of Buyers 4.5.12.7 Power of Substitutes 4.5.12.8 Intensity of Rivalry 4.5.12.9 Summary of Industry Analysis 4.5 Competition Analysis 4.6.12 Industry Competitors 4.6.13 Rivals Anticipated Strategic Moves 4.6.14 Summary of Competitive Analysis 4.6.15 Key Success Factors 4. Internal Analysis 4.1 Organizational Analysis 4.1.1 Corporate Values...
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...combine ex int analysis decide strategic option for growth . ansoff product mix( based on rational approach) to identify strategic option and devide strategic option into four broader classification -market penetration, product expansion ,market expansion, diversification product development is expansion of product range and market development is expansion of customer base both help strategy development and implementation and basically consider based org capabilities and strategy product and market options the ansoff product -market matrix increase, develop new product and market based on experience ,capabilities fist do what you have experience and capabilities and let it exhausted then move to other area (have capability increase in excising market do it until exhausted it then move to increase in market then to new product then to new market growth in existing products and ,markets good for start up or growth phase org where penetration has not saturated increase the frequency of usage (frequent flyer) increase the qty of usage( coke 1.25 ltr) find new application for current users , attract more customer in same segment of customer base ( supply to Coles along with Woolworth to obtain Coles customers following question shows how to increase market and customer base 1 who we serve and who we don’t and who stop and why ? 2 can products to be serve different way 3 can increase plan capacity 4 need any change to marketing , distribution and pricing , how it affect...
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...paper. The oil and gas industry overview will also be covered. CONTENTS 1. Overview of the Oil and Gas Industry ------------------------Page 4 – 21 2. Chesapeake Company Operations ----------------------------Page 21-27 3. Chesapeake & Affiliates ----------------------------------------- Page 28-32 4. Outsourcing -------------------------------------------------------- Page 32-37 5. Chesapeake’s Future --------------------------------------------- Page 37-42 References ---------------------------------------------------------- Page 43-44 OVERVIEW OF THE OIL AND GAS INDUSTRY Companies in this industry develop and operate fields to extract crude oil and natural gas. Major players include Apache, Conoco Phillips, and Exxon Mobile (all based in the US), as well as BP (the UK), and Tatneft (Russia), National Iranian Oil Company, PETROBRAS (Brazil), Royal Dutch Shell (the Netherlands), and Saudi Aramco (Saudi Arabia). The global oil and gas exploration and production industry produces about 75 million barrels of oil per day and more than 100,000 billion cubic feet (Bcf) of natural gas annually. The largest...
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...UNIVERSITY OF SOUTHERN CALIFORNIA Marshall School of Business Revised Syllabus for FBE 560-Mergers and Acquisitions Office Hours T,TH 1:30-3:00 and TH 5:00-6:00 in HOH701E Spring 2007 I. Purpose of the M&A Course This course covers the broad field of mergers, acquisitions, and divestitures. The primary objective of the course is for each student to gain a well-rounded understanding of the major strategic, economic, financial, and governance issues of mergers and acquisitions. Takeovers and mergers are a daily fact of life and have evolved into a critical part of every CEO or manager’s strategic toolbox. Every person who enters the corporate world will most likely be affected by a merger or acquisition at some point in their career. Students will apply learned content to real mergers and acquisitions and have the opportunity to present to the class their findings and conclusions. Specific academic course objectives include: • Examining the role that M&A plays in the contemporary corporate world, and its use as a strategic tool to provide growth, enhance competitive position, transform a company or industry, and create shareholder value. • To provide the student a framework for analyzing transactions including understanding strategic rationale, valuation methodologies, deal structures, bidding strategies, and the need for a value proposition. • Show how M&A can be used successfully as well as its pitfalls, dangers...
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...Overinvestment © Copyright 1986. Michael C. Jensen. All rights reserved. American Economic Review, May 1986, Vol. 76, No. 2, pp. 323-329. You may redistribute this document freely, but please do not post the electronic file on the web. I welcome web links to this document at http://papers.ssrn.com/abstract=99580. I revise my papers regularly, and providing a link to the original ensures that readers will receive the most recent version. Thank you, Michael C. Jensen Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers Michael C. Jensen* American Economic Review, May 1986, Vol. 76, No. 2, pp. 323-329. Corporate managers are the agents of shareholders, a relationship fraught with conflicting interests. Agency theory, the analysis of such conflicts, is now a major part of the economics literature. The...
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