01-08-2012, 12:27 PM
INTERNATIONAL BUSINESS OPERATIONS OF ONGC & OVL
INTERNATIONAL BUSINESS.doc (Size: 1.52 MB / Downloads: 86)
OBJECTIVES
The objectives of our study are multi pronged. In this dynamic world of business where companies are no longer local players but are global entities we plan to show how an Indian company has made the right moves and carved out a niche for itself. We also intend to show what factors fuel a companies growth while what are the roadblocks to success. In short the objectives of our project can be stated down as follows:
(1) To study the various business processes of the Indian MNC and to see how the processes at home are different from processes abroad.
(2) To study the expansion of its market territory beyond the boundaries of the country due to its international image.
(3) To study what all adjustments the company has to make when it moves abroad.
(4) To study the various environmental differences like cultural, legal and political between home and foreign country.
(5) To study the various advantages that the company is gaining as a result of its operations abroad.
SCOPE OF STUDY
Our study will basically focus on studying an Indian company which has made a foray into the international markets recently and is emerging as a global MNC. The project would focus on the various strategies that the company is following to gain a competitive advantage in the foreign country and what all problems the company in facing in the foreign country and how these problems can be overcome and to study the company’s multinational central management.
INTRODUCTION
During the pre-independence period, the Assam Oil Company in the northeastern and Attock Oil company in northwestern part of the undivided India were the only oil companies producing oil in the country, with minimal exploration input. The major part of Indian sedimentary basins was deemed to be unfit for development of oil and gas resources.
After independence, the national Government realized the importance oil and gas for rapid industrial development and its strategic role in defense. Consequently, while framing the Industrial Policy Statement of 1948, the development of petroleum industry in the country was considered to be of utmost necessity.
Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources of India.
In Assam, the Assam Oil Company was producing oil at Digboi (discovered in 1889) and the Oil India Ltd. (a 50% joint venture between Government of India and Burmah Oil Company) was engaged in developing two newly discovered large fields Naharkatiya and Moran in Assam.
ONGC : CHANGING WITH TIMES
• ONGC is India’s Most Valuable Company, having a market capitalisation of Rs. 1 trillion and continues to retain its position as the most valuable company of India.
• Was the biggest wealth creator for the period 1998-2003.(Rs. 226.3 billion)
• Only Indian company to have earned a net profit of over 10,000 crore.
• Added 49.96 MMT of ultimate reserves and kept up the trend of positive accretion for the third consecutive year.
• ONGC has a vertically oriented organizational structure.
• Is Asia’s best Oil & Gas company, as per a recent survey conducted by US-based magazine ‘Global Finance’.
• Ranks as the 2nd biggest E&P company (and 1st in terms of profits), as per the Platts Energy Business Technology (EBT) Survey 2004
• Ranks 24th among Global Energy Companies by Market Capitalization in PFC Energy 50 (December 2004).
ONGC VIDESH LIMITED
• OVL is a wholly owned subsidiary of ONGC , India’s largest integrated oil and gas company. OVL operates solely in foreign markets.
• OVL today is the second largest E&P company in India by reserves, second only to ONGC. It has eight overseas assets and is actively seeking more opportunities across the world.
• OVL's efforts have been supported wholeheartedly by the Government of India, which has allowed OVL exclusive empowerment vide Office Order No. DPE ii (32)/96-Fin. dated January 17, 2000, which provides OVL single window clearance for overseas upstream projects irrespective of investments involved.