Premier Oil is one of the leading UK based oil and gas company. The company has oil and gas exploration, production and development interests in three major regions including Asia (Indonesia and Vietnam) Pakistan and Africa, and North Sea. This report presents a guide for the strategic direction of the company with a special focus upon its high prospects in Asian region. The report presents the strategic objectives of the company for its operation in Asia which encompass the growth, production and financial goals of the company in that region and is aligned with the overall company’s performance. These objectives can only be achieved through the overall underlying efficiency of the company’s internal processes, and its organizational learning and development aspects. Therefore, it is imperative to propose a balanced strategic guideline for the organization to achieve its overall financial and growth aims. This report uses the balance scorecard tool to propose several recommendations. It considers the key performance measures in each of the strategic perspectives namely financial, customer, internal processes and learning and innovation perspective.
Table of Contents
Executive Summary
Introduction
The Vision and Strategy of Premier Oil
Stakeholders Analysis
Performance Measures
Analysis of Financial Report
Balanced Scorecard
Perspective: Financial
Perspective: Customer
Perspective: Internal Business Processes
Perspective: Innovation & Learning
Strategy Map
Critical Evaluation of Balance Scorecard
Summary of Recommendations
Objectives and Topics
This report aims to define the strategic direction for Premier Oil's operations, specifically within the Asian region. It seeks to provide the Board of Directors with a framework to evaluate organizational performance across both financial and non-financial dimensions to support informed long-term decision-making.
- Strategic alignment of company operations in Asia.
- Application of the Balanced Scorecard framework for performance measurement.
- Comprehensive analysis of internal processes, stakeholder relationships, and financial health.
- Evaluation of growth prospects and operational efficiency in Indonesia and Vietnam.
- Recommendations for sustainable business development and community engagement.
Excerpt from the Book
Introduction
Premier Oil is a leading UK based oil and gas company. It has interests are divided in three major regions of the world namely Asia (Indonesia and Vietnam), North Sea, and Africa and Pakistan. Premier Oil is building more and more material exploration programme, aiming several of its known geologies including fissure or anterior fold belts within the company’s existing or new areas. In 2012, Premier Oil increased its production by 43 per cent, cash flow by 66 per cent and report record profitability for a fifth successive year. Reserves and resources now amount to 773 million barrels of oil equivalent (mmboe) compared to 513 mmboe at the end of 2011 (Premier Oil, 2012). All these growth and business performance enhancements were achieved mainly due to the new fields which came on-stream in Indonesia and Vietnam (Asian Region) in late 2011, 2012 (see fig.1). The figure reveals that the most significant increase in productions was contributed through operations in Vietnam and Indonesia respectively. Through this the company saw significant increase in the group’s overall production (Premier, 2012). The purpose of this report is to aid the strategic direction of the company for its operations and interests in Asia; to enable its Board of Directors to evaluate various aspects of organization’s performance within this region including financial and non-financial aspects. This report will help the directors make informed decision on the future oveall strategic objectives of the company.
Summary of Chapters
Executive Summary: Provides an overview of Premier Oil's operational regions and justifies the use of the balanced scorecard to align strategic objectives with financial and organizational goals.
Introduction: Outlines the company's background, recent production increases, and the report's purpose in guiding strategic operations in Asia.
The Vision and Strategy of Premier Oil: Defines the core corporate strategy of adding shareholder value and lists key objectives such as production growth and reserve expansion.
Stakeholders Analysis: Identifies and examines the needs of key stakeholder groups, including employees, customers, suppliers, governments, and the community.
Performance Measures: Establishes a set of financial and non-financial indicators to benchmark performance against strategic goals.
Analysis of Financial Report: Reviews the company's financial success in 2011, highlighting profit increases and cash flow improvements.
Balanced Scorecard: Introduces the framework used to identify vital areas of improvement across four strategic perspectives.
Perspective: Financial: Details specific financial objectives, KPIs, and initiatives focused on profitability, asset utilization, and growth.
Perspective: Customer: Examines strategies for maintaining government and institutional customer support through partnerships.
Perspective: Internal Business Processes: Focuses on operational efficiency, safety, and adherence to environmental standards.
Perspective: Innovation & Learning: Addresses employee motivation, development, and the importance of an open management structure.
Strategy Map: Illustrates the cause-and-effect relationships between the various performance measures.
Critical Evaluation of Balance Scorecard: Assesses the effectiveness of the scorecard as a management tool within the context of the oil and gas industry.
Summary of Recommendations: Offers actionable steps to ensure long-term growth and reputation management in the Asian region.
Keywords
Premier Oil, Strategic Management, Balanced Scorecard, Asia, Oil and Gas, Performance Measurement, Financial Objectives, Stakeholder Analysis, Sustainability, Operational Efficiency, Innovation, Growth Strategy, Corporate Reputation, Environmental Social Impact Assessments, Risk Management.
Frequently Asked Questions
What is the primary focus of this report?
This report focuses on the strategic management of Premier Oil, specifically analyzing its operations in the Asian region (Indonesia and Vietnam) to improve overall organizational performance.
What framework does the author use to analyze the company?
The author utilizes the Balanced Scorecard framework, which balances traditional financial metrics with non-financial indicators like customer perspectives, internal processes, and learning and growth.
What is the ultimate goal of the proposed strategy?
The primary goal is to provide the Board of Directors with a guide to align the company's regional operations with its overarching financial and growth targets.
Which stakeholders are considered in the analysis?
The analysis covers key stakeholders including employees, customers, suppliers, governments, and the communities within which the company operates.
How does the report address internal business processes?
It addresses them by defining KPIs for operational efficiency, such as stock turnover, and safety metrics like Total Recordable Injury Frequency (TRIF).
What are the key themes regarding the Asian region?
Key themes include maximizing growth from new fields in Vietnam and Indonesia, navigating regional legal frameworks, and ensuring social responsibility to protect company reputation.
How does the report connect individual employee performance to corporate strategy?
Through the 'Innovation & Learning' perspective, the report suggests empowering employees, offering training, and maintaining an open management structure to foster engagement and ownership.
What role does the 'Strategy Map' play in this document?
The strategy map visually illustrates the cause-and-effect links between all performance measures, showing how individual actions contribute to the final objective of shareholder value.
What is the recommended approach to environmental issues?
The report recommends adhering to ESIAs (Environmental and Social Impact Assessments) and implementing 'Best Available Techniques' to ensure compliance and support ISO 14001 certification.
Why is community relationship emphasized for Premier Oil?
As a foreign firm, the report notes that negative social responsibility outcomes can severely damage the company's reputation and negatively impact its long-term profitability.
- Quote paper
- Adam James (Author), 2010, Premier Oil Strategic Management, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/267069
