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FACTORS AFFECTING EFFECTIVENESS IMPLEMENTATION OF OPERATION STRATEGIC MANAGEMENT: THE NIGERIAN DOWN-STREAMS OIL AND GAS INDUSTRY A CASE STUDY.
The Nigerian oil and gas downstream industry is one with many opportunities of varying business operational processes. These following factors have adversely affected it’s maximum functionality. * Availability of product * Quality of Product * Availability of Funds * Prices * Government Policies
Availability of Products – Most times the organization suffer from product scarcity as a result of our refinery not working and we have to import products and the product refined in my country is subject to allocation which is subject to you familiarity with government political office holders. Due to shortage of product resulting from scarcity it affects and slows down production process, I have had a case where I am to supply one of my clients NICAPACO - Nigeria Carton and Packaging Company) and I could not get to load my truck and this resulted in the company shutting down their production line because we couldn’t get to load and supply. Implementing a capacity strategy to balance our demand will be a strategic decision to take (Slack, 2012).
Quality of product - this is one issue that has defiled solution. Product adulteration can result in breakdown of production machinery which in turn affects production and impacts on every facets of business activities depending on that line. It could lead to loss of life- there is a scenario in Benin the capital city of Edo State Nigeria where people lost their life due to a cooking fuel (D.P.K) kerosene being adulterated with a more volatile and highly inflammable product(P.M.S).
Availability of funds – the oil and gas business is capital intensive and require a lot of capital and generally funded by banks or the government but when such funds are not made available it impacts on the global business world, I have witness cases where vessel carrying products have
The Nigerian oil and gas downstream industry is one with many opportunities of varying business operational processes. These following factors have adversely affected it’s maximum functionality. * Availability of product * Quality of Product * Availability of Funds * Prices * Government Policies
Availability of Products – Most times the organization suffer from product scarcity as a result of our refinery not working and we have to import products and the product refined in my country is subject to allocation which is subject to you familiarity with government political office holders. Due to shortage of product resulting from scarcity it affects and slows down production process, I have had a case where I am to supply one of my clients NICAPACO - Nigeria Carton and Packaging Company) and I could not get to load my truck and this resulted in the company shutting down their production line because we couldn’t get to load and supply. Implementing a capacity strategy to balance our demand will be a strategic decision to take (Slack, 2012).
Quality of product - this is one issue that has defiled solution. Product adulteration can result in breakdown of production machinery which in turn affects production and impacts on every facets of business activities depending on that line. It could lead to loss of life- there is a scenario in Benin the capital city of Edo State Nigeria where people lost their life due to a cooking fuel (D.P.K) kerosene being adulterated with a more volatile and highly inflammable product(P.M.S).
Availability of funds – the oil and gas business is capital intensive and require a lot of capital and generally funded by banks or the government but when such funds are not made available it impacts on the global business world, I have witness cases where vessel carrying products have
References: Slack, N., Lewis M., (2011) Operations Strategy, 3rd edition, , Prentice Hall England. Purdue Online Writing Lab (2011) Types of outlines and samples [Online]. Available from: http://owl.english.purdue.edu/owl/resource/544/03/ (Accessed: 23 January 2013). Purdue Online Writing Lab (2011) Developing strong thesis statements [Online]. Available from: http://owl.english.purdue.edu/owl/resource/588/01 (Accessed: 23 January 2013). Purdue Online Writing Lab (2012) Safe practices [Online]. Available from: http://owl.english.purdue.edu/owl/resource/589/03/ (Accessed: 22 January 2012).