Oil and gas company “Rosneft” in the Russian Federation

 

 

 

 

 

 

9. SWOT -analyse

Based on the foregoing data, we can make a SWOT-analysis, also compare the characteristics of Rosneft with the characteristics of its main competitors, to assess the internal environment of the company, to consider the external environment which provides some opportunities, but also can show the negative factors.

SWOT-analyse

	Opportunities: 1.Development and adoption of innovative technologies 2. Increasing coefficient of oil production through the using of new technologies 3. Governmental financial support , if it necessary	Threats: 1. Decreasing oil and gas reserves 2. Deposit reserve depletion 3. The development of alternative kind of fuels 4. Price risk (the possibility of reducing the price)
Strengths: 1. The dimension and quality of the resource base; 2. Rosneft has own export terminals 3.The high level of transparency of corporate management 4. The constant development of new deposit 5. Government support 6. The high degree of vertical integration of the oil business	1. Increasing of production in East Siberia, the Far East, as well as on the shelf of the southern seas of Russia; 2. Increasing of oil production at Vankor; 3. The expansion and modernization of the export terminals to ensure that the planned capacity of the volume of exports.	1.Opening new major centres of oil production; 2. Development of new lines of business - bunkering and refuelling aircraft; 3. Acquisition of land in prospective of oil and gas areas 4. Work to improve operational and financial flexibility and cost optimization.
Weaknesses: 1. High level of investment 2. Control of the government limits the flexibility in making investment decisions 3. The high level debt	1. Increase in sales of own products directly to end users, active development of retail distribution network and developing new projects to reduce the debt 2. Changing the capital structure in favour of private investment.	1.Avoid increasing the debt 2. Research and development of new deposits.

 

The importance of strategic management of the organisations is increasing rapidly. Especially if the organisation as Rosneft is large and has significant meaning for the Russian economy. This assignment shows that good strategic management allows companies to achieve competitive advantage in the long prospective. Strategic management determines that the organisation should do in the present to get the desired results in the future, in view that the environment will change.

Rosneft uses the strategic management and, perhaps, without it would not be able to survive and function effectively any such large organisation.

Nevertheless strategic management has disadvantages it can not give an accurate detailed description of what will happen in the future. There is always a risk does not take into account any factor and thus reduce the effectiveness of the company to zero.

Therefore, in this situation, great importance is the fact of who will provide strategic management, professionalism, skill and knowledge of these persons on a wide range of issues. Also, the organization of strategic management can be costly (for example, may require the creation of departments that do forecast changes in the environment, and their impact on the organization). But for such a large company as Rosneft, these costs will payback very quickly.

Rosneft is one of the largest Russian companies, aims to achieve not only high performance and financial indicators, but also contribute to the development and prosperity of the country in improving the lives of its citizens.

Rosneft's position in the organise of labour, environmental and industrial safety, supporting local communities in the areas of its activities is an integral part of corporate strategy aimed at creating a whole range of conditions for sustainable development of the company in the long prospective.

Rosneft has developed a unified policy covering all aspects of sustainable development and corporate social responsibility.

This policy is based on absolute adherence to generally accepted international norms relating to human rights: the prevention of all forms of discrimination, freedom of association and collective bargaining, elimination of child labour and forced labour, as well as the norms of the Russian legislation on labour relations and human rights.

Thus, the policy pursued by the company fully complies with the objectives and the company is close to achieve their goals and realise plans.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conclusion

Rosneft is the vertically integrated company which uses strategic management. The company includes a large number of oil producing, refining and marketing companies, which allows effectively organize activities.

 Rosneft is one of the largest oil companies in the world that already talks about the effective policy of the company and the need for strategic management in it. Among the Russian companies Rosneft is in third on indicators such as market share and sales volume. According to our analysis and construction BCG matrix, the majority of goods produced by the company at this stage refer to the "problem child", suggesting the need for significant investment in the development of these products, so that later she moved to the status of the goods - the "stars".

The company has some very strong points, with skilful use of which the company can achieve significant competitive advantage. But on the other hand, the threats make the company keep track of all changes in the external and internal environment in order to timely respond and to avoid undesirable consequences.

Certainly, the success of any companies depends also on who manages it, how these people able to correctly assess the situation and make the right decisions in an unpredictable environment. If the company will adhere to established policies, in the near future it will be able to realize the main plan- to enter the top three leading energy companies in the world.

 

 

 

 

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Corporate Governance Code of OJSC Oil Company Rosneft

Charter of OJSC Oil Company Rosneft June 19, 2009

Rosneft Code of Business Ethics December 31, 2008

Regulation of Internal Control of Financial and Economic Activities of OJSC Oil Company Rosneft May 17, 2006

http://www.mindtools.com

http://www.scribd.com/doc/22539717/Mission-statement

http://www.quickmba.com/strategy/

http://www.ngfr.ru/ 

http://www.rosneft.ru