Indian Oil Core Competency Business Essay
This essay has been written by a regular student and is *not* an example of our own work. If you would like your own custom essay written just for you by one of our professionals then click here to learn more. Indian oil came forth as a top oil trading company among national companies in Asian pacific region as per the survey done by applied trading system (ATS). The survey is conducted among 80 major oil companies. The prestigious Deutsche Bank has featured only Indian Oil as one of the global stock picks in the oil & gas sector. Indian Oil owing to its solid fundamentals and also the proactive Strategies adopted by the Management to deal with the various challenges facing the oil sector". Platts World Energy Rankings 2005. Indian Oil has moved five places up in the Platts 'Top 250 Global Energy Company' rankings from 26th in 2004 to 21st this year. Indian Oil, India's flagship oil company, has retained it number one position by sales in the latest corporate rankings released by the Economic Times. The ET500 report goes on to add, "Indian Oil has been the largest Indian company by sales for as long as anyone can remember. India's most valuable brand Indian Oil and SERVO selected Super brands (2004-06). Indian Oil has emerged as the most trusted petrol pump brand in the country in the prestigious Economic Times Brand Equity Survey of India's Most Trusted Brands (ET, Dec. 15, '04). This company maintains a score of 80 out of 100 which symbolizes that it maintains a good corporate equity. INDIAN OIL CORPORATION
In India there is no policy for oil consumption despite having an energy policy. The factors which constitute these are as follows: Public transportation getting privatized for the reduction of cost and better efficiency, many companies such as Tata introducing Rs 1 lakh cars and enormous investment to improve the infrastructure for railways.
The government can take good initiatives by introducing policies to reduce the demand for the petrol and diesel consumption to prevent the people of India from getting addicted to petrol. The government can also impose high duty on automobiles. The Labor unions of India will be unhappy if the public transportation systems are privatized because they can no longer enjoy their influence to monetize their personal wealth. The political party also determines the change in price. For example when congress won the elections it came as a boost in the value of the oil companies. Economic Factors:
The major developments in the areas of automobile industry and aviation industry have got a multiplier effect and this will eventually increase the Gross National Product (GNP) of India. Sometimes the government has to deliberately raise the prices of gasoline and oil in order to reduce the country’s deficit. And at times the forecasts of the inflation rate made by the government exceed due to the rise in fuel prices. The inflation has a significant impact on the oil industry. The unemployment rate in India is 10.8%. Study has shown that the unemployment rate is inter connected with the fuel prices. If there is more employment then people buy more cars and bikes and this impacts the fuel prices. When there is a rise in inflation then there is an impact even the country’s interest rates. The Reserve Bank of India recently reduced the interest rates due to high inflation. So the fuel price inflation and interest rate are interconnected.
India has a population of about 1.1 billion. There is a significant growth in the consumption of oil every year. As of 2009, it is estimated that the oil consumption is about 2.68 million barrels/ day. India after its independence has experienced complete transformation. The major areas of transformation are Aviation industry, IT industry, Infrastructural industry, Telecommunication industry, Steel industry, Oil Industry and Automobile industry. The change in...
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