Case Study Of Oil Supply Chain

The main elements of a supply chain include purchasing, operations, distribution, and integration. The supply chain begins with purchasing. Purchasing managers or buyers are typically responsible for determining which products their company will sell, sourcing product suppliers and vendors, and procuring products from vendors at prices and terms that meets profitability goals.

Cost leadership is also an important key to success in any commodity industry since it is one of few areas where any true profit can be squeezed out of markets defined by undifferentiated products. ADM’s vertical integration

Three sectors define the value chain of the oil industry; Upstream – which is the process of exploration and extracting the natural resource, control storage and entail refinement process. Midstream – consisting of distribution by pipelines and large quantity shipments. Downstream – second refinement, blending, secondary storage, distribution, and the commercial side of the business such as, fuel stations or the delivery services for retail consumers.

Besides, the organization has upgraded its technological capacity through the projects and innovation section of its business. In this word, there are few oil companies and most of the oil and natural business is controlled by powerful organizations. The large amount of capital investment tend to remove a lot of supplier of rigs, pipeline, refining and other. even the suppliers product are important info to the oil organizations, the oil organizations still have critical control over smaller drilling and support

Reorders are placed at the time of review (T), and the safety stock that must be reordered is:

The oil and gas industry is easily influenced by the economic segment as there are so many dependent sectors in this industry. Thus, if the economy is in the recession/inflation, there will be fewer oil and gas products manufactured as people will try to cut down on their energy expense such as vacation or having an own car to drive to work…

When implementing project 1, you face technical and market risk. How would you assess the risks embedded in Project 1?

Chesapeake Energy operates under the natural oil and gas industry. While government’s economic data may separate operations within this industry, the industry covers a broad range of activities and is separated into three segments: upstream, downstream, and midstream. Activities within this industry by oil and gas companies include exploring for crude oil or natural gas, drilling into wells, and such transportation of oil and natural gas. Just as any other industry, the gas and oil industry have major risks that companies take into consideration and extensively consider. These risks have the capability of drastically affecting operations, and ultimately the profitability and financial stability of a company. Three top risks related to oil and gas companies are volatile prices of oil and gas, regulatory changes, and finding new reserves or extending prior ones.

The TexasAgs oil company case study gave us insights on different aspects of a negotiation that can happen in real world scenarios. It elegantly portrayed the importance of having a BATNA, setting target and restriction points, impact of the fluctuating markets on the ongoing negotiations, downside of the emotional behavior, importance of having a third party member or mediator in the negotiation. The case illustrates that the negotiations should be based assumptions as they may or may not be right. Having facts and understanding the other parties true objectives and goals are truly essential in negotiation. It is a typical example of how the current power on one side can dominate and take complete advantage of their position.

Pacific Oil Company is a Sweetwater Oil company of Oklahoma City, Oklahoma. It was founded in 1902. One of the major chemical lines of Pacific's is the production of vinyl chloride monomer (VCM).

Our approach was to facilitate the demand with respect to the market. We penetrated the market by building factory in Fardo and building warehouses to the respective regions, Caleopeia, Sorange, Entworpe, Tyran. Another component that we had to consider was finding the optimal cost to increase market share and increase our profit margin. Discussion on the logistics will be discussed thoroughly, which affected our decision points and our overall outcome. There are a few questions we needed to answer before we built a road map to our strategy i.e. figuring out where to build the factory and warehouse, estimate the demand of the four regions and Fargo region, should we change capacity, adjust ordering point with respect to quantity, and also

Richard Dana Associates (RDA) was brought in by the owners of a family-owned business with complex relationship issues at a time preceding an anticipated leadership transition. Following individual and group coaching sessions, RDA was able to help the leadership separate personal issues, and codify practices through formal policies to allow the leadership group to focus on business issues without personal complications. At the end of RDA's engagement, the client was well-positioned to begin developing a transition plan.

Continued downturn in the oil and natural gas prices in the past year had significant impact on Anadarko Petroleum Corporation (NYSE: APC), with its shares losing over 63% of their market value. However, the recent uptick in the crude oil prices helped the company to recapture approximately 45% of the lost value for its shares. Although, its shares are down nearly 8% since year-to-date, but its influential steps of late should allow the company to stay competitive during this extended low oil prices and drive its growth in the long-term.

The value of being prepared cannot be overstated when it comes to negotiations. Failure to understand one 's best alternative to a negotiated agreement (BATNA) options is one example of poor planning that can leave a party at the mercy of another. Such is the case of the Pacific Oil Company (POC) case study where POC and Reliant Corporation worked together to negotiate a business contract for the supply and purchase of a vinyl chloride monomer (VCM) product. The negotiation process did not go as planned, and the following will explain the case overview, provide insight to the various negotiation styles and tactics utilized in the negotiation process, and explore the anticipated outcome of the contract negotiations.

1. Evaluate the economics of Gulf's exploration and development program in net present value terms. How do Gulf's outlay for exploration and development compare to cash returns Gulf generates from these activities.