Oil and Gas Development Industry Essay

MKIB 160

PROGRESS INTERNATIONAL BUSINESS

MKIB 160

DEVELOPMENT OF INTERNATIONAL BUSINESS

Competition of Oil and Gas Production Market in Nigeria Competitiveness of Oil and Gas Creation Industry in Nigeria

SET OF CONTENTS

Introduction…………………………………………………………………. 3

Nigeria

1 . 1 Background of Country…………………………………………. four 1 . a couple of Economic Overview………………………………………………….. 4 1 . 3 Global Competitiveness…………………………………………. your five

Porter's Diamond Framework

2 . 1 Framework for Company Strategy and Rivalry……………………. 6th 2 . two Demand Conditions………………………………………………. 8 2 . 3 Factor (Input) Conditions………………………………………. 9 2 . 4 Related and Assisting Industries…………………………. 12

Conclusion………………………………………………………………….. 12

Bibliography………………………………………………………………13

INTRO

Coal and oil are the crucial generators on the planet nowadays in order to to uphold the concept of globalization. The flow of goods and capitals that need transportations and energy will depend directly from the oil and gas production. As the primary sources of energy and its nature of scarcity, this commodity is vulnerable to brutal competition in the global market. One of the major manufacturer and global exporter of oil and gas is known as a country in Sub Saharan Africa, Nigeria. This survey seeks to analyse the organization structures as well as the competitiveness of oil creation in Nigeria. It will be based on Professor Michael Porter's ‘Diamond' Model of Worldwide Competitiveness where it will take a look at all the 4 main theories in the precious stone with further factor of presidency and opportunity.

Source: Harvard Business Assessment, Competitive Benefit of Nations, Michael jordan E. Porter, March-April 2009

1 . one particular BACKGROUND OF COUNTRY

Nigeria is a country located in American Africa with Niger on the north, Cameroon at the east, Benin at the west and with Gulf of Guinea at the south. The country's total region is 923, 768 rectangular kilometres with the population of 155, 215, 573 people estimated in July 2011. In 2011, the people growth price is estimated to increase simply by 1 . 935%. It has abounding natural assets like natural gas, petroleum, and other mining goods. Sources: CIA; World Factbook 1 . 2 ECONOMIC GUIDE

Nigeria has been known for its condition of problem, political lack of stability, insufficient infrastructure and poor management of macroeconomic governance. But seeing that 2008, the federal government has taken initiative to reform market-oriented approach as urged by the International Budgetary Fund. The government also has used the initiatives to follow economic reconstructs by abolishing former military ruler's concentrate on the main olive oil sector and started to shift in other monetary sector. Nevertheless , as noticed from the table below, there has been a significant enhance for the crude oil contribution to Major Domestic Item and a gradual fall by the cultivation sector via 1960 to 2002. Sector| 1960| 1970| 1980| 1990| 2000| 2002

Agriculture| sixty four. 1%| forty seven. 6%| 30. 8%| 39. 0%| thirty five. 7%| 28. 35%| Manufacturing| 4. 8%| 8. 2%| 8. 1%| 8. 2%| 3. 4%| 5. five per cent

Crude Petroleum| 0. 3%| 7. 1%| 22. 0%| 12. 8%| 47. 5%| 40. 6%| Others| 30. 8%| 37. 1%| 39. 1%| 40. 0%| 13. 4%| 25. 55%

Nigeria: Sectoral Contribution to Gross Domestic Item (GDP)

Origin: Central Traditional bank of Nigeria, Changing Composition of the Nigerian Economy (2000) and Gross annual Report & Statement of Accounts (2002). This particularly shows that the government had did not diversify the other groups thus; the fuels and mining items remain as the Nigerian primary economy factor. The desk below demonstrates that economy's total export shares in 2010 happen to be significantly focused by Powers and exploration product with 87. seven percent which leaves only five. 2% to agricultural products and 7. 1% in manufacturing merchandise. Source: Globe Trade Organisations, October 2011

1 . 2 GLOBAL COMPETITIVENESS

Due to its overdependence on one sector which is the...

Bibliography: Nigeria: Sectoral Contribution to Gross Domestic Item (GDP)

Source: Central Bank of Nigeria, Changing Framework of the Nigerian Economy (2000) and Gross annual Report & Statement of Accounts (2002).

There are 3 key policy-related variables that could affect FDI flows which can be infrastructure creation, the visibility to trade and assets and institutional quality (Elizabeh Asiedu, 2003) which at present Nigeria will not possess.

BIBLIOGRAPHY

* The Economist (26th June 2008)

5. The Economist (15th Mar 2007)

5. The Economist (27th September 2007)

5. Porter, Meters. E. (1990). The Competitive Advantage of Countries. Harvard Organization Review

2. GDP Spending Report 2010

* Adepipe, B. (2004). The Impact of Oil in Nigeria's Economical Policy Ingredients.

http://www.odi.org.uk/events/documents/32-background-paper-sunday-abiodun-adedipe-impact-oil-nigerias-economic-policy-formulation.pdf



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