Strategic analysis of total
TOTAL
1
Part 1: choices, justification and critical evaluation of the models
Total is a part of the most important five oil groups at the world level. There is also Exxon/motive, Royal Dutch Shell, ConocoPhillips and British Petroleum: Total is on the fifth place. Total Group is present in the different domains of the "life cycle" of the oil; the Group is present on the exploration until the derivative products sale (fuels, plastics…). Christophe de Margerie is the Chairman and Chief Executive Officer of the Group which counts more than 90.000 employees and which is present in more than 130 countries. To analyze this firm, I took these two points: environmental analysis and organizational structure analysis. We can define the strategy as a suite of decisions and actions to look for and obtain a competitive advantage to guarantee to the company competitiveness and profitability on the long term. Now, for it, the company needs to understand the environment in which it evolves. Environmental analysis: I’m going to talk about the external environment of the firm using: PESTEL PESTEL analysis is one of tools allowing making a diagnosis on all the elements which influence the company and so on which it can act. Then the synthesis of the analysis PESTEL has to allow making new segments of activities and a general policy for years to come. So to make the analysis PESTEL of Total, it is advisable to wonder, what are the factors which affect it’s organization and what among them are the most important to take into account today and in the years to come. Porter five forces This analysis o o o o is about factors influencing the performance of a company by five strengths: Threat of substitute product, new entrants Bargaining power of suppliers, of buyers Rivalry among existing competitors Role of the state ( 6th)
Essential point of Porter 5 forces consists in organizing into a hierarchy these strengths so as to