BG Group Plc Analysis Coursework Example | Topics and Well Written Essays - 1500 words

BG Group Plc Analysis - Coursework Example BG Group is one of the listed companies in the London stock Exchange (LSE). The British Gas plc divested Centrica and the company was created. BG Group marks its presents in 5 continents. Demand and Supply Factors First consider the demand side factors which include weather, demographics, economic growth, consumption of fuel, storage of the products and exports. The cyclical pattern seems to be the demand pattern for natural gas. The demand follows the step path in the coldest months while the opposite is the nature of demand in the hotter months (EIA, 2008). The demand tends to rise slightly in summer to meet the demand of natural gas for electric generators. Demand also increases when there is growth in the economy. Cyclical pattern is the nature of the demand curve. Storage of the produced is difficult for the companies in this sector and so excess supply cause a fall in the price level. The supply side factors are the capacity of the pipeline through which the transportation of n atural gas takes place, drilling of the gas and technological advancement. The price of electricity also has a major role to play in the demand and supply frameworks of natural gas. As several competitors compete in the market, the price is set at the equilibrium level. Recently there has been technological advancement in the demand for natural gas. The rising electricity prices are the main reason for this situation. The appliances operated through natural gas can now compete closely with the electrical appliances causing demand to shoot up. The short term barriers affecting the supply of natural gas are availability of skilled workers and equipment, permitting and well development, delivery disruptions. The barriers that affect in increasing the supply of natural gas are onshore and offshore access, the financial environment (Natural Gas, n.d.). Market Structure The consumers of natural gas are now exposed to choice and competition. The government does not regulate the price mecha nism. The price is set by the demand and supply conditions. Generally the price is set at the level where demand equals supply. (Soligo and Jaffe, p.2). The figure above shows the demand for gas over the past 30 years. The nature of international gas market is experiencing change. Bilateral contracts between the buyers and sellers are the characteristic of markets outside the U.S. The increased liquidity in the market has called for the emergence of non-contract LNG market. The producer owns the gas at wellhead and sells to the marketers, less developed countries and sometimes to the end users. The market for natural gas faces a significant setback. The market for other commodities can immediately react to the change in demand and supply conditions but this type of market takes time to react to such situations mainly because to increase the supply of natural gas it is required to lease land and acquire the permission of the government. Seismic work and drilling the path towards the pipeline needs a lot of time. The lifetime of the existing wells will come to an end at some point and the amount of production they are capable to produce involves uncertainty. Necessities to compete in the market The company should have access to non-competitive facilities at non-discriminatory terms and

Strategy and organizational learning Essay Example | Topics and Well Written Essays - 3000 words

Strategy and organizational learning - Essay Example Flow of information, knowledge, technology and capital has transcended geographic and national boundaries due to globalization. With such fast, easy and fluid flow of information, knowledge and technology the major asset of an organization has become knowledge and not production. Rate of an organizations ability to learn and adapt is considered to be the only real source of competitive advantage. How organizations can become a learning organization? Does individual learning and social learning has any relationship with organizational learning? What is the difference between an organization that learns and a learning organization? Is it just mastery of words or there is some substance in it? This paper aims at answering all these questions with the help of theory and its critical analysis along with the examples from the business world. Emergence of Knowledge/ Learning Organizations Charles Darwin said â€Å"It is not the strongest of the species who survive, nor the most intelligent ; as a matter of fact, it is the ones who are the most agile to change†. The same point stands valid for organizations too. The organization who wishes to remain relevant and thrive in the long run, learning better and faster is the solution or the technology. Learning is not only the key to success but perhaps vital for survival for today’s organizations. For this purpose organizations must strive to enrich knowledge through continuous internal and external learning. A learning organization is one that encourages and values learning and realizes the role learning can play in enhancing organizational effectiveness. This attitude and importance of learning is reflected in the vision of the organization and a learning strategy that supports the inspiring vision for learning. Building a Learning Organization A learning organization depends on a lot of internal and external factors. External environment includes economy, society, polity and technology. The subsystem of lear ning organization includes organization, people, knowledge and technology. Each subsystem not only interacts with each but also support for learning to permeate all across the organization. The importance of learning is communicated by leaders. An effective communication system is developed to avoid the development of silos and ensure smooth lateral flow of knowledge across structural boundaries. Both planned and emergent learning needs are emphasized. For building effective learning organization following steps must be taken, strategy development, collaboration mechanism, knowledge sharing and learning, management techniques and knowledge capture and storage (Serrat, 2009). Social Complexity and Organizational Learning Organizational learning is a very complex social phenomenon. Emergent and fluid nature of organizational learning makes it more complex. The two most important determinants of complexity science are schemas of diversity and interaction interdependence. Presence of bo th in learning organizations makes it a complex. Tensions within and between internal and exte