Strategic management (GAZPROM) Assignment Example | Topics and Well Written Essays - 2000 words

Strategic management (GAZPROM) - Assignment Example Gazprom products do not only experience high demand in Russia but also in foreign countries. Major factors that have contributed to the high demand of the company products include increased household income in Russia and improved marketing strategies adopted by the company. Based on the large number of employees who have appropriate skills, the company has adequate resources that has enabled it to effectively compete with its main rivals that include Novatek, Northgas, Transneft, Russneft, TNK-BP and Novatek and Rosneft among others. The primary aspects that Gazprom should emulate in its strategic planning include expanding financial allocation that is focused at exploring oil reserves in developing countries as well as differentiation strategies. In this way, the company will not only increase shareholders returns but also it will effectively face off its competitors in the oil industry. To ensure that adequate control of its operations, Gazprom should involve all the stakeholders t hat include the shareholders, employees, Russian government and the marketers. Introduction A strategic analysis of an organization is carried out to examine the various ways through which a firm can achieve a competitive advantage over its competitors in the market. According to Lorenzen (2006) strategic planning is a rhythmic procedure that gives managers a clear view of the firms internal as well as the external environment. Consequently, managers get to a position where the organizations strengths and weaknesses are studied and solutions put into effect to counter the weaknesses that detriment the operations of their businesses. This paper seeks to discuss the environment analysis, structuring and an organization analysis as well as strategic plan of Gazprom, a Russian based company specializing in extraction of natural gas. Environmental analysis Industry analysis Having been established in 1989, Gazprom has various production subsidiaries that include Urengony, Nadvm, Yamburg and Novabrsk. With its major production fields being Yamalo-Nenets Autonomous Okrug and Nadym-Pur-Taz region, the company has significantly led to an expansion of natural oil industry. Due to lack of barriers to enter Russian oil industry, the industry has attracted large number of firms making Russia to be the largest oil producer globally. For example, in 2009 the country produced 494.2 million tons (Edward and Robert, 2009). Key competitors in the Russian oil industry include Surgutneftegaz, Lukoil, Rosneft, Gazprom, Northgas, Transneft, Russneft, TNK-BP and Novatek. Rosneft controls the biggest market share followed by Lukoil, TNK-BP, Surgutneftegaz and Gazprom. The major customers of the Gazprom come from domestic users. Other customers are based in Europe, CIS countries as well Baltic States (Aarentsen, 2003). Based on the large volume of oil the European countries and other foreign states demands from Russia they have attained a power that significantly controls oil prices at the international market. In order to compete with its rivals, Gazprom has embarked on diversifying its operations to include transmission, processing of gases as well as marketing and distribution of gases. Other activities that the company has adopted include repair of the Unified Gas Supply System and power generation (Fahey and