Discuss about the Strategic Management of Woodside.
Woodside petroleum is the major hand of oil and gas production in Australia and also Australia’s biggest autonomous devoted oil and Gas Company. Headquarter of the Company is in Perth (Anon., 2017).
Strategic management is a bunch of features that helps in establishing a brand image for a company (Leather, 2013). Every single company has their own strategy and its outcomes. Woodside Petroleum of Australia has proved its credentials to the world of business.
This assignment helps in finding out the management strategies, which the Company uses to fulfil the desired goal. There was a time, when the Company was criticised for some reasons. This assignment also helps in finding out those two criticisms with its effective outcomes on the Company and the dependents. SWOT analysis is there to observe the core features of the Company varying from good to bad. It also provides a focus on the organizational culture or the leadership style within the organization.
Woodside Petroleum manages their strategies on three themes that are increasing the significance of their core resources, enhancing their capabilities and increasing their portfolio. Woodside has a strong foothold in the Oil and Gas industries with a dependable manufacture base, unique capabilities and physically powerful relationships to produce excellent projects. The missions, visions and the values are the key features that provide the competitive edge to the Company (Chongzhi et al., 2013). Benefitting the Company with a worthy revenue generation along with providing equal importance to the shareholders are the most important asset of the Company, which is creating a resonant presence of the Company in the Oil and Gas industries. Vision is something, which motivates the functioning of a Company that varies from company to company producing distinct results (Dissanayake & Xia, 2015). The management of the Woodside Company has the vision to be a universal leader in the Oil and Gas industry. Organizational values are of recommendable level in the Company. The management of the Company do trust in different values that matters a lot for an organization to have a long run with comprehensive success under the belt. The management believes in performing a transparent business with the addition of fulfilment of the commitment, which they propose to the people and to the world of business. The management of the Company gives utter importance to the core values of an organizational behaviour, which are truthfulness, admiration, Sustenance, Collaborative working, Discipline and Brilliance. Apart from all the core values of the Company, the three themes that are working as a driving force to the vision of the Company are of supreme importance. Maximising the production based on its supreme capabilities to enhance the revenues is the distinctive feature of the Woodside Company, which has continually helped it, emerged as the top performer. The Company has a proven record of accomplishment in the plan, structure and process of brilliant LNG plants, subsea skill, FPSO operations, seismic acquisition, underwater drilling and processing. The establishment of the distant operations from the Pluto Support Centre in Perth is helpful in reducing the working expenses and improving the preservation outcomes (Anon., 2017).
The Woodside Petroleum Company is the most reputed Oil and Gas Company in Australia. With its distinctive core values and management strategies, it has catapulted the paramount of success in the world of business market (Novatsis & McCormick, 2012). Criticism is an integral part of an organization that it receives for some unexpected works. Moreover, the Woodside Company is no any exception, which itself met with little criticism in the past that has hampered the reputation of the Company to a bit. Nonetheless, criticism creates a bad impression of the brand in front of the business world but never destroys the complete existence. There are certain criticism associated with the history of the Company, which has resulted in bad outcomes in past. The one incident of criticism happened back in the year 2006-2007, which revolved around the Pluto LNG project. In carrying this project, Woodside witnessed oppositions on their plans to construct an onto land processing site on the Burrup Peninsula in the Western part of Australia. Further, the Burrup Peninsula site is providing home to notable petroglyphs, which are approximately 30,000 years old. Woodside claimed to have practised a vigorous amount of violation against the trading policy of the Howard government for the emission of carbon (Al Kindi, 2013). The Company produced different speeches to the common people and the shareholders regarding the carbon emission. It spoke about the carbon free practice in the public but took the otherwise step to get the free carbon permits. No action took place against the Woodside Company for this violating practice from The Australian Consumer Commission (Fields, 2012).
Another incident of criticism took place in April 2011 when the Fair Work Ombudsman of Australia complained the mal practice of the Company regarding the labour payment. It claimed that foreign workers were partially paid on the two oilrigs in the North-West shelf of Woodside Petroleum. The same criticism took place in April 2013 when the Federal Court in Western Australia alleged Woodside for underpaying few foreign labours. Less than $3 was the payment for those foreign labours on the oilrigs (Grafton, 2014).
There are numerous strengths of the Woodside Petroleum Company, which has established the brand new image of the Company in the world of business. It houses the production of distinct quality of Oil and Gas assets in few of the wealthiest basin of the world including the Carnarvon Basin. It is the biggest manufacturer of liquefied natural gas (LNG) in Australia. Handful experience in structure engineering along with subsea structure vessels and tube set barges, they are building their supreme dominance in the Oil and Gas industry.
The Company misses on the legal adherence of the government rules regarding the carbon emission along the oilrigs site. The Company unlawfully got the licence of reduced carbon emission. A protest of foreign labours against the payment policy of the Company highlights another probable weak point of the Company (Smith, 2013).
Projects development focussing on the expansion of LNG capabilities has the potential to help company in expanding the position of the Company to the worldwide LNG leader. North West Shelf is under development, which can assist the Company in maintaining an offshore and onshore gas supply (Bayzakova, 2014).
A wide range of natural calamities in Australia such as floods, bushfires, earthquakes, landslides, severe storms and cyclones are a significant threat to the future of the Company. Nonetheless, competition from its competitors such as China Petroleum & Chemical Corporation (Sinopec), ExxonMobil Australia and ROC Oil Co. Ltd. is a serious threat of losing the competitive edge (Wilson, 2013).
The Woodside Petroleum in Australia had its association with some legal violation in past regarding the payment of wages to the foreign workers. However, the Company still has lot to offer to its employees, which is evident from the success story of the company. The Company need to put some extra effort in bringing a fair practice of legal adherence to avoid any political clash. The opportunities, which the Company has, require diverse work force to take the charge and produce the fruitful for the Company. However, it requires a gutsy move from the management of the Woodside Petroleum to nullify any political and legal flaws in the Company.
Few of the past incidents related to the organizational behaviours support the fact that the Company is lacking in meeting with the set policies. Incidents such as the underpayment to the foreign labours form the supportive evidence in favour of the policies violation (Vermeire, 2011).
The Company is enjoying a healthy rift in their economical structure keeping apart all the criticism that has occurred in the past. Nonetheless, the Company is evolving as the potential choice for the largest manufacturer of LNG in Australia (Sakmar, 2013).
Few of the social contributions that the Company is a part of, shows the social awareness of the Company towards the general being. Every year, the Company provides monetary and in-kind support to an extensive range of society groups (Cassidy, 2012).
To mitigate the challenges faced by its development managing systems, the Company has formed a fresh side- operational Technology. Downstream technology, upstream technology, superficial technology and Disruptive technology are the key highlights of the inclusion of science and technology in the Company. Nevertheless, these technologies have potentials to help Company in attaining the maximize recognition across the globe (Puckett, 2013).
Violation of carbon emission rule set under the government law support the fact that the Woodside Company is environmentally challenging for the lives of human being (Qian, 2012).
In April 2013, the allegations made on the Company by the Federal Court of WA speak about the legal violation of the Company. The allegations were for the underpayment to the foreign labours (Hanson, 2012).
Woodside Petroleum is the leading company in the O&G industry in Australia. However, the Company is lacking in environmental terms as it has tried an illegal way to get the permit on carbon free emission in the past. The Company has also faced criticism in terms of an injustice payment to foreign workers. However, the government did not impose any serious obligations on the Company. Any O&G company is a threat to environment and Woodside is no any exception. However, the O&G industry do play a vital role in the GDP of a country and affect the economy therefore. The prospering of Woodside is of utmost important for Australia and its economy. However, there is a requirement of taking proper care of carbon emission. It needs some serious effort to ensure that the carbon emission does not surpass the allowed level.
The leadership style of an organization prepares the path of journey, walking on which, it earns the potential result as per the leadership credentials (Bahadori & Nwaoha, 2013). With a vision to dominate the world of Oil and Gas industries, the Woodside Company calculated the required leadership quality in the Company. To build up a culture of soaring performance in the Company, which can deliver on consumer requirements, there was requirement to incept leadership quality in the Company (Bayzakova, 2014). Nonetheless, such a leadership excellence that could successfully maintain its employees engaging and energising with the extended expansion goals needs its inception. To attain the vision with the utmost success, hiring of such talents, which have proven records of accomplishment with them, needs their inception in the Company (Hanson, 2012). With their superior understanding of the circumstances, the leadership quality of the Woodside Company engaged in finding out worthy talents. Nevertheless, it resulted in significance organizational outcomes, which structured the success for the Company. Voluntary revenue has reduced by 25% in excess of three years. Environment has bettered considerably in a little gap of time against external and internal benchmarks; in reality, Woodside is delivering at superior levels than further Australian organizations. The high leadership quality has helped its employees understanding the strategies and the business directions. Further, staffs have understood their involvement in the business strategy. Employees feel prepared and energised to perform to the expected targets (Fields, 2012).
Conclusion:
The superior leadership quality can bring the sense of urgency into its employees, which is helpful in keeping employees engaged with a stretched target of the Company. In this case, the management of the Australian leading Oil and Gas Company Woodside get the spotlight. The Woodside Company whose headquarter is in Perth, serving the Oil and Gas industries in Australia with supreme performance. Nevertheless, the Company has never looked back ever since its inception. However, the Company met with certain political and legal objections for its few policies. Few of the criticism have taken a dig on the Company leaving a dark image on it. The Company claimed to have underpaid few of the foreign labours. The Federal Court of WA imposed the same allegations on the Company. However, this is an undeniable fact that the Company has overcome from this dark shadow and the performance of the Company simply supports the same. Several proposed future targets posses the opportunities to all, which belongs to the Company. The Company lacks in the adherence of the legal policies, which emerges as a potential threat to the Company for their peaceful run in the coming future. The social involvement of the Company by means of taking participation in some kind of donations is preparing a significant supportive environment for the Company. However, the violation of the carbon emission rule of the government is generating an unhygienic atmosphere in the surroundings. Nonetheless, the Company presented a two phase of it in front of their consumers and the shareholders. The Company have committed to keep the environment free from carbon but illegally tried to get the carbon free emission certificate. Nevertheless, in spite of all these dark sides of the Company, there are numerous brighter parts also, which are mounting the heap of success for the Company.
References:
“Working Sustainably | Woodside Energy”. Woodside.com.au. N.p., 2017. Web. 12 Jan. 2017.
Al Kindi, A. and Soh, M., 2013, January. Tight gas reservoir appraisal and development challenges for new LNG supply from Australia. In SPE Unconventional Gas Conference and Exhibition. Society of Petroleum Engineers.
Bahadori, A., Nwaoha, C. and Clark, M.W., 2013. Dictionary of oil, gas, and petrochemical processing. CRC Press.
Bayzakova, A., 2014. The Uncertain Future of Australian LNG Projects: The Use of Scenario Building in Strategic Management.
Cassidy, M.J. and Tian, Y., 2012. Development and application of models for the stability analysis of Australia’s offshore pipelines. Australian Geomechanics, 47(2), p.61.
Chongzhi, T., Guoping, B., Junlan, L., Chao, D., Xiaoxin, L., Houwu, L., Dapeng, W., Yuan, W. and Min, L., 2013. Mesozoic lithofacies palaeogeography and petroleum prospectivity in North Carnarvon Basin, Australia. Journal of Palaeogeography, 2(1), pp.81-92.
Dissanayake, N., Xia, B. and Wu, P., 2015. Measuring Sustainability Performance Within the Australian Energy Industry. In Proceedings of the 19th International Symposium on Advancement of Construction Management and Real Estate (pp. 135-143). Springer Berlin Heidelberg.
Fields, O.G., 2012. The Wider Contribution to Australia of the Oil and Gas Industry.
Grafton, R.Q. and Lambie, N.R., 2014. Australia’s liquefied natural gas sector: Past developments, current challenges and ways forward. Australian Economic Review, 47(4), pp.509-522.
Hanson, B., 2012. The leadership development interface: Aligning leaders and organizations toward more effective leadership learning. Advances in Developing Human Resources, p.1523422312465853.
Leather, D.T., Bahadori, A., Nwaoha, C. and Wood, D.A., 2013. A review of Australia’s natural gas resources and their exploitation. Journal of Natural Gas Science and Engineering, 10, pp.68-88.
Novatsis, E., McCormick, P. and Lardner, R., 2012, January. Developing Internal Human Factors Capability In An Australian Oil And Gas Company. In International Conference on Health, Safety and Environment in Oil and Gas Exploration and Production. Society of Petroleum Engineers.
Puckett, S. and Regan, T., 2013. The Liquefied Natural Gas (Lng) Business: From Evolution To Revolution. In Asia’s Energy Trends and Developments: (In 2 Volumes) Volume 1: Innovations and Alternative Energy Supplies Volume 2: Case Studies in Cooperation, Competition and Possibilities from Central, Northeast and South Asia (pp. 125-148).
Qian, W. and Zvezdov, D., 2012. Environmental Accountability.
Sakmar, S.L., 2013. Global Gas Markets: The Role of LNG in the Golden Age of Gas and the Globalization of LNG Trade.
Smith, M., 2013. The Oil and Gas Sector–Climate Change Risks and Opportunities.
Vermeire, J., The LNG Industry in 2011.
Wilson, B., 2013. The biogeography of the Australian North West Shelf: environmental change and life’s response. Newnes.
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