The objective of this analysis is to evaluate the functional areas of marketing, financial resources, human resources, technology, operations and research and development relative to how they influence the success of companies within the global gas and petroleum energy production industry. The gas and petroleum energy production industry is one of the largest industries that accounts for the bulk of imports and export for the world's largest economies. The due to the bulk nature of the import and export of petroleum products, marine transport provides the key mode of international transport both for processed and crude petroleum energy products.Marketing, human resources, technology, financial resources and operations codes are the core functional areas of any business organization. The success of the different functional areas of organizations in the energy industry is usually determined by the levels of success in combining the multiple factors that affect an organization.
[...] The petroleum energy industry exists as a regulated business sector, a situation which, if combined with the relatively high fixed costs compared to other industries, makes it difficult for competitors to make entry. The high barriers to entry make the gas and petroleum business a favorable industry for the existing companies in the industry. The power of buyers is high where there are few large players in the market as is usually the case with large grocery chains. Consequently, this would translate to low costs of switching suppliers through factors induced by business competition. [...]
[...] The strategic concept of Devon Energy Corporation is best captured by the company's mission which states “Devon Energy is a results oriented oil and gas company that builds value for its shareholders through its employees by creating an atmosphere of optimism, teamwork, creativity, resourcefulness, and by dealing with everyone in an open and ethical manner.” In order to achieve objectives set by the mission statement of such a magnitude, the company plans to address all future challenges through getting the best out of their leading brands and setting the right strategic direction for the company's products. [...]
[...] Technology determines the rate at which a particular business industry organization can achieve efficiency both in its administrative and marketing endeavors (Doyle, 1994). Analyses of the Shell Oil Corporation and the Devon Energy Corporation provide the best case studies for demonstrating the importance of the implications of functional and operational areas of companies in the energy industry as evidenced by their many years of success in the industry. The Shell Oil Corporation Shell is the leading group of energy and petrochemical companies. [...]
[...] Any gap that may be introduced in the chain of responsibilities may prove catastrophic to the organizations. The analyses of the two companies also reveal a close relationship between profit maximization, organizational structures and customer satisfaction. Being public limited companies, Shell and the Devon Energy Corporation are purely profit driven companies. As a result, the companies have networks of branches that are managed through clearly set hierarchical structures broken down into committees and departments. The Customer Care Service forms the link between the two companies and their respective customers. [...]
[...] Operations Code The functions and duties of all the operational units in Devon Energy Corporation are integrated with strategic and business planning initiatives of the company. The company is divided into different departments and functional areas that have clearly defined responsibilities, authority and accountability. The company's management always encourages two-way communication between bosses and their subordinates in order to improve on the business performance of the organization. Different departments in the organization are responsible for the implementation of different policies determined and approved by the Board of Directors. [...]
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