Running Head: TOTAL OILING COMPANY 1
8
Total Oiling Company
Total oiling company
The Total Oiling Company is a known enterprise which having more than thousand branches spread all over the world. It is a French multinational which integrates Gas and Oil Company. Also to that, it is one among the six leading superior oil companies across the world which covers both oil and gas chain. These includes natural gas, crude oil products trade, and exploration of natural gas, production, refinement, petroleum product marketing and generation of power.
Total Oil Company has a clear, focused strategy which focus on the set goals by employing the distinctive capabilities and managing their quality portfolio actively.
The following are the key strategies that will realize the growth of Total Oil Company if it will be put to practice.
Quality Management
This comprises of planning, quality assurance, and steadfast improvement this is a crucial strategy in that customers always want to use top notch products of high quality. Also to this, this builds trust with the shareholders. Quality management, therefore, is an important strategy for forming a backbone to the success of the company. This intelligent strategy of offering careers to the people and many years of experience in the gas and oil industry provides confidence and skills which helps especially United Arab Emirates Countries to work successfully in the industry (Zook, 2004).
Market Penetration
This is an important strategy for any company to realize growth. Even large companies such as Total Oiling Company uses this strategy when for instance it tries to market its existing products and services that will boost its market share. Market share is the percentage of units and dollars sales in which a company holds in a market compared to all other competitors. This can only be done by the lowering of prices of the firm operational cost. I the markets in which there is small product differentiation, by lowering of the prices will help his company when increasing its market share.
Market Expansion
The market expansion growth strategy is also called the market development that comprise of selling of the current products and services in a new market. Some of the reasons why Total Oil Company may consider market expansion strategy. To start with, there may be stiff competition in which there is no longer any room for growth within the current market. In any case, if the business cannot find new markets for its products, it can be hard for it to increase the sales and the profits (Mearsheimer, 2010).
Product Expansion
Any company may expand its product line and add new features that will boost its sales and the profit margins. This is also known as product development. This is where it continues selling within the existing markets. The Total Oil Company for instance has capitalised on this strategy in that it started operating in different line that include the covering of gas and oi.
1. Running Head: TOTAL OILING COMPANY 1
8
Total Oiling Company
Total oiling company
The Total Oiling Company is a known enterprise which having
more than thousand branches spread all over the world. It is a
French multinational which integrates Gas and Oil Company.
Also to that, it is one among the six leading superior oil
companies across the world which covers both oil and gas
chain. These includes natural gas, crude oil products trade, and
exploration of natural gas, production, refinement, petroleum
product marketing and generation of power.
Total Oil Company has a clear, focused strategy which focus on
the set goals by employing the distinctive capabilities and
managing their quality portfolio actively.
The following are the key strategies that will realize the growth
of Total Oil Company if it will be put to practice.
Quality Management
This comprises of planning, quality assurance, and steadfast
2. improvement this is a crucial strategy in that customers always
want to use top notch products of high quality. Also to this, this
builds trust with the shareholders. Quality management,
therefore, is an important strategy for forming a backbone to the
success of the company. This intelligent strategy of offering
careers to the people and many years of experience in the gas
and oil industry provides confidence and skills which helps
especially United Arab Emirates Countries to work successfully
in the industry (Zook, 2004).
Market Penetration
This is an important strategy for any company to realize growth.
Even large companies such as Total Oiling Company uses this
strategy when for instance it tries to market its existing
products and services that will boost its market share. Market
share is the percentage of units and dollars sales in which a
company holds in a market compared to all other competitors.
This can only be done by the lowering of prices of the firm
operational cost. I the markets in which there is small product
differentiation, by lowering of the prices will help his company
when increasing its market share.
Market Expansion
The market expansion growth strategy is also called the market
development that comprise of selling of the current products
and services in a new market. Some of the reasons why Total
Oil Company may consider market expansion strategy. To start
with, there may be stiff competition in which there is no longer
any room for growth within the current market. In any case, if
the business cannot find new markets for its products, it can be
hard for it to increase the sales and the profits (Mearsheimer,
2010).
Product Expansion
Any company may expand its product line and add new features
that will boost its sales and the profit margins. This is also
known as product development. This is where it continues
selling within the existing markets. The Total Oil Company for
3. instance has capitalised on this strategy in that it started
operating in different line that include the covering of gas and
oil chain including transporting, natural gas exploration,
production, refining, the marketing of petroleum products and
the generation of power. This strategy works well especially
when the technology starts to change (Scott, 2003).
Foreign Collaboration
Another crucial growth strategy for Total Oil Company to
expand is through foreign collaboration. Collaboration in the
first place refers to cooperation. This is coming together of
more than one partners in a company. By doing so, there will be
an act of working jointly so that each partner will realize a
common goal. This will eventually increase the volume of trade
and boost the outcome of Total Oil Company. This is made
possible by the company because the company itself will
acquire the expertise in the process of manufacturing, the
gaining of technical know-how and the market and finally there
would be a promoted products and services to other countries.
This also is where the both domestic and foreign firms join
hands together to achieve a common goal. By coming together,
the financial gap, managerial and technological gap will be
removed. Other than boosting the trade of Total Oil Company, it
will also serve as an important supplement to the development
of the nation as a whole. Also, it will also serve to secure
scientific and the technical know-how of nations (Samson,
2012).
Diversification
Another crucial internal growth strategy is diversification. This
will serve and help the Total Oil Company to enter a new line of
business. From earlier on, we realize that the company was
dealing with only petroleum products. Through diversification,
it started expanding its ways to even dealing with a generation
of energy, and dealing with natural gas. This majorly is
diversification business. The main type of diversification here
is forward integration. This is where the company expands their
activities in a way that is ahead of its present line of business.
4. Customer-Focused Strategies
For any business to realize growth, the opportunity most often
begins with the core business of the company. Total Oil
Company growth often begins with its products, customers,
services, the channels and the geographical area of the company
that generates the largest revenue proportion and the profits.
These is where there is an evaluation of the overall performance
of the core business which includes the measuring and
benchmarking profitability, the rate of growth of revenue and
the reputation of the firm with their most important customer
(Blackhawk, 2006).
New Markets
Total oiling company can secure significantly and
organizational growth by tapping and venturing into new
markets. The company can successfully do this by the creation
of additional demand for firm’s products and services in new
markets especially where there is a competition that has not yet
been fully developed. This can eventually create growth
exponentially to the firm. However, the competitive vacuum
will close in the instances such as this (Scott, 2003).
Outside Financing
Total Oil Company can realize major growth when it considers
business financing from outside. This can be through searching
for capital from banks, government agencies, private investors,
venture capital firms and smaller private firms.
Conclusion
In conclusion, the Total Oil Company realizes the expansion of
its operation from a simple company to multimillion company it
is nowadays through the core expansion strategies discussed
above. The company now has thousands of outlets that are
spread all over the world. Almost every major cities and towns
at least has one or more Total Petrol Station which deals with
offering of petroleum services to vehicles, greases, oils, and
even the petroleum gas which are used in homes for cooking. It
5. serves a major backbone in our society by promoting the
countries’ national income all over the world. Furthermore, it is
one of the six superior oil company of the world which covers
vastly gas and oil chain (Friedman, 2006).
References
Zook, C. (2004). Beyond the core: expand your market without
abandoning your roots. Boston: Harvard Business School Pub.
Mearsheimer, J. & Walt, S. (2010). The Israel lobby and U.S.
foreign policy. New York: Farrar, Straus and Giroux Sold
by Macmillan.
Blackhawk, N. (2006). Violence over the Land Indians and
Empires in the Early American West. Cambridge, Mass:
Harvard University Press.
Samson, D. & Bevington, T. (2012). Implementing strategic
change is managing processes and interfaces to develop a highly
productive organization. London Philadelphia: Kogan Page.
Scott, P. (2003). Drugs, oil, and war the United States in
Afghanistan, Colombia, and Indochina. Lanham, Md:
Rowman & Littlefield Publishers.
Friedman, S. (2006). A history of the Middle East. Jefferson,
N.C: McFarland & Co., Publishers.
Running head: TOTAL COMPANY STRATEGIC PLANS
1
TOTAL COMPANY STRATEGIC PLANS
6
6. Total Oiling Company: Strategic Plans
The Total Oiling Company is a well-known enterprise that has
thousands of branches across the globe. It is a French
multinational that integrated gas and oil companies. It is one of
the six leading or superior oil companies in the world. The
company’s businesses cover the gas and oil chain. They cover
from the natural gas and crude oil, transportation, crude oil
products trade, natural gas exploration and production, refining,
marketing of petroleum products, and power generation.
Additionally, the company has its head office in the West of
Paris, Tour Total. The company’s history began with the
creation of the CFP in the 1920s. CFP stands for the Compagnie
Francaise des Petroles. Initially, the oil was produced in the
Middle East. Later, Total began to expand into diverse
petroleum, chemicals, refining and petroleum product
marketing. They also expanded internationally. A hundred years
down the line, Total Company has developed and grown to be a
leading energy producer with a cutting edge innovation. The
company's success is associated with the three statements. They
have strengths and weaknesses connected to the statements. In
addition, the company faces large opportunities as well as
threats. All in all, the Total Company development and growth
into an international company is tied to its customs and
practices that place it at the top of the market in the oiling
industry. In summary, the Total Oiling Company has grown into
the broad brand due to its strategic plans.
The company has clear strategies that focus on the goals set,
they employ the distinctive capabilities and actively manage
their quality portfolio. As a result, the company creates a
shareholder value because they create a sustainable cash flow
freely. The flow is also over a long term. Additionally, Total
Company is disciplined in its approaches that lead to the growth
of their distributions to the shareholders over the time. First, the
company has clear priorities that are to have or run compliant,
7. reliable and sage operations (Hill, et. Al., 2014). Consequently,
the company has better operations and safe performances.
Secondly, Total aims at achieving a competitive project
execution that will deliver projects efficiently. For this reason,
the company meets its budget. Also, the company seeks to make
financial choices that are disciplined and support growth (Hill,
et. Al., 2014). Therefore, the business operates cash from its
businesses, financial resilience and disciplined allocation of
capital for it to achieve its financial goals. The third strategy is
in creating a quality portfolio. The management actively
manages the portfolio so that it identifies the company’s
strength. Therefore, the company constantly explores its
position by reloading the upstream pipeline. The focus is on the
high-value upstream assets that are in selected gas chains, in
deep waters and in giant fields (Hill, et. Al., 2014). Besides,
Total Company leverages the new upgraded assets. They also
leverage the technology that enhances cash flow and customer
relations. As a result, Total can generate a high volume
operation and project through their production. Finally, Total
has a distinctive ability to deliver against their priorities. The
operations are possible because they use advanced technology
across the value chains. They also develop and maintain strong
relationship with the customers, the shareholders and the
stakeholders (Hill, et. Al., 2014). The relationship enhances
their operations in the countries where they have their branches.
Consequently, Total’s strategic plans enhance and develop the
company’s branches worldwide.
The strengths of the company place them at a better place in the
industry to compete with other oil producers. One is that Total
is a competitive company that has created a healthy dislike in
their competitors (Birkinshaw, et. al., 2013). They have also
gained a valuable coverage all over the world. The company
also has opportunities for growth and development. There are
numerous opportunities for product development of the
company. The brand is also highly protected by the owners
especially because it does not wear out like other products.
8. There is also a ready market in different countries in the
continents. As a result, the strategic plan ensures the growth of
the company due to the available opportunities and its strength.
Quality management involves planning, control, quality
assurance and improvement. It is an essential strategy because
customers and shareholders seek to use products that are of high
quality. It also builds trust with the customers and shareholders.
Therefore, quality management is significant to the success of
the company. Service quality brings the clients back to the same
services because the company wins trust from the clients.
However, the company still needs to improve their quality based
on the feedback they receive from the clients (Goetsch & Davis,
2014). The vision and mission of the company inspires the
company to keep being innovative and to have a brighter future.
Interestingly, the company also has a strategy that involves
their mode of employment and the target employees. The
employees are hired as the apprentices of the energy, oil and
gas technologies industry through leveraging of the 21 years’
experience in the gas and oil industry (Blodgett, et. al., 2011).
Secondly, it provides the confidence, skills and knowledge that
help the UAE nationals to work successfully in the industry.
Finally, it facilitates career opportunities for the apprentices
from the UAE members and those from the ADNOC group.
Similarly, the company’s statement states the members who are
given the superior considerations during the hiring process. It
also shows its core market in the production of their goods and
services (Wilson & Post, 2013). Also, it keeps the company
focused on its agenda. Therefore, they provide quality services
in their production.
In summary, Total Company has found its place in the oiling
industry where it has developed a strong brand name.
Consequently, it has attracted a large number of customers as
well as shareholders. In addition, there are opportunities for the
company to develop across the continent. The company has
clear strategies that focus on the goals set, they employ the
distinctive capabilities and actively manage their quality
9. portfolio. As a result, the company creates a shareholder value
because they create a sustainable cash flow freely. Additionally,
the business operates cash from its businesses, financial
resilience and disciplined allocation of capital for it to achieve
its financial goals. The quality planning involves planning,
control, quality assurance and improvement. It is an essential
strategy because customers and shareholders seek to use
products that are of high quality. The strategy is as effective as
the employment strategy. The company employs UAE members
and those from the ADNOC group. For this reason, they ensure
that they provide quality services through their productions.
That is part of the company’s agenda that helps them attain their
goals. Consequently, Total Oiling Company utilizes strategic
plans that are manageable and effective.
References
Birkinshaw, J., Bouquet, C., & Ambos, T. C. (2012). Managing
executive attention in the global
company. Image.
Blodgett, M. S., Dumas, C., & Zanzi, A. (2011). Emerging
trends in global ethics: A
comparative study of US and international family business
values. Journal of business
ethics, 99(1), 29-38.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for
organizational excellence.
pearson.
Hill, C., Jones, G., & Schilling, M. (2014). Strategic
management: theory: an integrated
approach. Cengage Learning.
Wilson, F., & Post, J. E. (2013). Business models for people,
10. planet (& profits): exploring the
phenomena of social business, a market-based approach to
social value creation. Small
Business Economics, 40(3), 715-737.
Running head: TOTAL OILING COMPANY
1
TOTAL OILING COMPANY
6
Total Oiling Company
The Total Oiling Company is a well-known enterprise that has
thousands of branches across the globe. It is a French
multinational that integrated gas and oil companies. It is one of
the six leading or superior oil companies in the world. The
company’s businesses cover the gas and oil chain. They cover
from the natural gas and crude oil, transportation, crude oil
products trade, natural gas exploration and production, refining,
marketing of petroleum products, and power generation.
Additionally, the company has its head office in the West of
Paris, Tour Total. The company’s history began with the
creation of the CFP in the 1920s. CFP stands for the Compagnie
Francaise des Petroles. Initially, the oil was produced in the
Middle East. Later, Total began to expand into diverse
petroleum, chemicals, refining and petroleum product
marketing. They also expanded internationally. A hundred years
down the line, Total Company has developed and grown to be a
leading energy producer with a cutting edge innovation. The
company's success is associated with the three statements. They
have strengths and weaknesses connected to the statements. In
addition, the company faces large opportunities as well as
threats. All in all, the Total Company development and growth
into an international company is tied to its customs and
11. practices that place it at the top of the market in the oiling
industry.
The Total Company’s history began in 1924 when it was known
as Compagnie Francaise des Petroles. Its innovation was after
the First World War. However, the then French Prime Minister
rejected the proposal by the Royal Dutch Shell. According to
the Prime Minister, the company would solely belong to the
French. Later, a group of banks came together in support of the
idea, coming up with the name Total (Selley & Sonnenberg,
2014). The name suggests that it is a French company. At that
time, petroleum was a vital commodity due to the war. It was
also part of the compensations by the Turkish due to the war
damages after the First World War. In 1929, the company
became a private sector company after the listing on the Stock
Exchange, in Paris. The following year, it became engaged in
the production and exploration of oil in the Middle East.
Initially, the exploration was in Normandy. The company
launched its branches in Africa, Canada and Venezuela, after
the Second World War (Selley & Sonnenberg, 2014). They
would pursue their sources from France. In 1954, the company
produced its products as a Total brand of gasoline in Europe and
Africa. In 1985, it was renamed to Total CFP because it was
widely known for its gasoline products. The Total Company was
listed on the New York Stock Exchange in 1991. However, the
French government controlled the largest percentage of the
stock. Eventually, Total CFP was renamed to Total in 2003, and
the current logo unveiled globally. As a result, the company has
become a dominant force in the oiling industry in the world. It
has also continued to lead in its stock performances. Therefore,
the Total Company has developed from a French-owned
company to an international private company.
Total Oiling Company has three statements that are the vision,
missions and values statements. The vision statement considers
the UAE, VEDC and ADNOC as part of the company’s
influences on the human capital competencies in the energy, oil
12. and gas industry. The Statement is beneficial to the company
because its customers, employees and other stakeholders as a
management tool. It clearly shows the company’s goal and
purpose in the market (Blodgett, et. al., 2011). As a result, it
inspires the company to keep being innovative and to have a
brighter future. Also, the statement describes something that
company or shareholders will never forget. On the other hand,
the vision statement has a weakness because it is not easily
understandable to the layman. Arguably, the vision statement
should be simple and easy to remember. However, the Total’s
statement is not easy to remember. The second statement is the
mission statement that comprises of diverse concepts. One is
that the company recruits and trains the UAE nationals that are
outstanding. They are hired as the apprentices of the energy, oil
and gas technologies industry through leveraging of the 21
years’ experience in the gas and oil industry (Blodgett, et. al.,
2011). Secondly, it provides the confidence, skills and
knowledge that help the UAE nationals to work successfully in
the industry. Finally, it facilitates career opportunities for the
apprentices from the UAE members and those from the ADNOC
group. Similarly, the statement states the members who are
given the superior considerations during the hiring process. It
also shows its core market in the production of their goods and
services (Wilson & Post, 2013). Also, it keeps the company
focused on its agenda. However, the mission statement does not
clearly indicate the direction of the company or connote the
employee’s motivation. The final statement is the values
statement that the company respects its apprentices, associates,
colleagues, and partners by creating a trust-worthy relationship
and operation with them. Also, the company embraces the
cultural differences and responsibility towards the others at
work. Besides, Total leads by example through the credibility of
their initiatives and actions (Wilson & Post, 2013). As a result,
the statement gives the company strength because it creates a
sense of trustworthiness to the shareholders. It also helps the
company in establishing relationships. On the other hand, the
13. statement also is a weakness to the company because it lacks
control over all their shareholders’ characters. Some of the
shareholders will at some point be disrespectful or engage in a
wrong deal. Consequently, the company will suffer a negative
image. In summary, the vision, missions and value statements
have strengths and weaknesses that affect the company directly
and indirectly.
The Total Company has strengths, opportunities, weaknesses
and threats that they encounter during their operations. The
strengths of the company place them at a better place in the
industry to compete with other oil producers. One is that Total
is a competitive company that has created a healthy dislike in
their competitors (Birkinshaw, et. al., 2013). They have also
gained a valuable coverage all over the world. The company
also has opportunities for growth and development. There are
numerous opportunities for product development of the
company. The brand is also highly protected by the owners
especially because it does not wear out like other products.
There is also a ready market in different countries in the
continents. On the other hand, there are weaknesses associated
with the company. One is that the company has faced numerous
oil spilling controversies (Birkinshaw, et. al., 2013). They have
also been charged in bribery cases. The threats include
numerous government regulations that act as hindrances. There
are also hybrid vehicles that can use alternative petroleum
products. Consequently, the company has adequate
development opportunities as well as challenges from the
weaknesses and threats.
In conclusion, Total Company has found its place in the oiling
industry where it has developed a strong brand name.
Consequently, it has attracted a large number of customers as
well as shareholders. In addition, there are opportunities for the
company to develop across the continent. Similarly, the
company has some weaknesses and threats that would
negatively affect the company.
14. References
Birkinshaw, J., Bouquet, C., & Ambos, T. C. (2012). Managing
executive attention in the global
company. Image.
Blodgett, M. S., Dumas, C., & Zanzi, A. (2011). Emerging
trends in global ethics: A
comparative study of US and international family business
values. Journal of business
ethics, 99(1), 29-38.
Selley, R. C., & Sonnenberg, S. A. (2014). Elements of
petroleum geology. Academic Press.
Wilson, F., & Post, J. E. (2013). Business models for people,
planet (& profits): exploring the
phenomena of social business, a market-based approach to
social value creation. Small
Business Economics, 40(3), 715-737.