The purpose of this assignment is discuss the tools and techniques that were covered in the strategic cost management and strategic business analysis and how both tools and techniques to help the senior management in my organization to enhance its corporate value.
ABC oil company was my previous employer since when I was in UK but in order to preserve confidentiality, the chosen organization and related brand names will be anonymous, my previous organization is call ABC company
I will pay particular attention to the concepts as follow:
1. Critical Success Factors;
2. Life cycle
3. Porter Five forces
Background of Strategic plan of ABC company
ABC Company is provide oil service and original corporate strategy, which is ultimately described in the Strategic plan as below
In 1994, the company’s commodity was still highly competitive. The board of directors believed that the best way maintain competitiveness was to be the lowest cost producer.
The problem was how could the UK complete with other cheaper countries. Development costs in many of these foreign locations are lower than those in the UK. For example, in Norway, Malaysia and Thailand etc. The other reason is that the English pound is too strong compared with other countries currencies. Also, the tax in the UK is high. Therefore, ABC cannot complete on price with other countries.
On the positive side a UK controlled oil and gas supply would be of great security value bearing in mind the unstable politics of some overseas sources. In addition, there was the prospect of the UK being able to gain revenues from foreign trade.
Diminishing marginal returns had set in late June 2006. The company restructured by reducing the manufacturing plants from six to one. Apart from looking to manufacturing technology to achieve a low cost profile in the early 2000's, the company also looked at other ways to reduce costs. It focused on information technology, which could help...