Sustainable Strategy - from Planning to Implementation M002LON

Afren plc’s Management Report

Itipat Therdchitpaisarn 6157391

Dr. Jonathan Groucutt

Words Count : 1285/1769

Submission Date: 23 MAy 2015
Executive summary The purpose of this report is to identify the key factors that affect in
Afren plc in the term of macro and micro environment, and to evaluate company position and strategic direction to make a recommendation to the company. By using PESTEL framework and Porter’s five force to analyze company external factors and SWOT analysis, VRIO framework and TOWS for internal factors that base on The company’s annual reports in years 2013 and 2014.

Contents
Introduction 1

EXTELNAL ANALYSIS 2
PESTEL Analysis 2
Weaknesses
Afren weakness lies in the high risk of exploration failure ,which can lower a growth potential of a company because of cost over-run, project delays and lower oil reserves than expected (Afren ,2014:26).

Opportunity
Afren has bought Black Marlin company and changed name into East Africa exploration (EAX), which give company a foothold into West Africa resources and double company resource base (Johnson, 2010).

Threat
The threats that the company face is a decline in oil and gas industry that effect by low oil price, as a result of increased global oil reserve (Anderson, 2015) and a increasing of labor cost in Africa (Viegi, 2015:5),which hampered a growth potential of Afren.

TOWS Matrix

Strength
Weakness
Opportunity SO Afren hold a strong partnerships with local company ,which help company hold an advantage in local oil and gas exploration.

WO As the technology is advancing, company can grasp this trend to enhanced Afen’s exploration and appraisal team to reduce a risk and increased efficiency in exploration.

Threat ST Afren use a partnership strategy to distribution its risk in