Evaluation of “integrated” (market and non-market) strategy of a State Oil Company of Azerbaijan Republic Harvard Case Solution & Analysis

Evaluation of “integrated” (market and non-market) strategy of a State Oil Company of Azerbaijan Republic Case Solution

Introduction

This report provides the complete evaluation of the integrated marketing and non-marketing strategies of a state-owned company that has been founded in the year 1992. The major products of the company are natural gas and petroleum and with the optimal usage of resources of the company, it is earning favorable financial results regarding revenues and net income as compared to its competitors.

Marketing Strategy

The market strategy of SOCAR is to further expand globally by first considering the regional expansion then all over the world. To do so the company has planned for the acquisition of Swiss Exxon Mobil unit in $200m. Moreover, the plans for the company seems very bright because of the future expected projections in Shah Deniz gas field and the others.

Non-Marketing Strategy

The non-marketing strategies of the company are illustrated in the form of (IA)3 Analysis as below:

(IA)3 Analysis

Issue: In order to meet the market strategies of the company, there are certain non marketing issues faced by State Oil Company of Azerbaijan Republic that are hindering towards the achievement of the desired goal. The first and the foremost issue are related to the fluctuation in the prices of oil in the world which is ultimately impacting the profitability of the company.

Actors: Looking at the possible impacts of the above issue the major actors that care about this issues are the number of stakeholders of the company including the shareholders, senior management of the company, its creditors and debtors and other financial institutions that significantly care about the profitability of the company but no one has the equal powers to resolve the issues. However, with the help of effective decision of the company’s senior management, the issue could be resolved significantly.

Interest: The reason why the actors are showing interest in resolving the particular issue is that of the expectations of returns in some form for the number of stakeholders. It can be seen that the issue defined above could significantly harm the reputation of the management, dividends for the stockholders, credibility of the company in the eyes of debtors and creditors and the other financial institutions. Therefore, all of them would be in different proportion interested in knowing the future profitability conditions of the company on the impacts that could be generated from the currently defined issue.

Arena: To settle the existing issue which the company is facing of the fluctuation in the oil prices, the actors as defined above should meet in the derivative markets and could come up with various hedging alternatives that could significantly help in resolving the issue. It can be seen that knowing the arena is another vital issue because different arenas have their different rules and regulations therefore; the capability of resolving the underlying issue must be analyzed before selecting the arena for that.....................

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