Home » dissertation examples » 74890684



string(40) ‘ simply react to the industry fluctuations\. ‘


The olive oil industry is a very important part or sector of the world overall economy and should always be developed and taken care of in an appropriate way. It is certainly 1 retail sector that has experienced considerable adjustments and expansion in its core business. The industry features continually gained popularity and attracted a whole lot of interest, that has consequently led greatly to the development of economies of the countries that specialize in it.

This kind of paper provides the macro-environmental analysis and the market research of the oil industry with the use of the PESTEL model. Nevertheless , it is the responsibility of the authorities to ensure that celebrate a favorable environment for the smooth operation of the industry.


The petrol retail sector is certainly 1 retail sector that has got considerable alterations and creation in its key business. Recently, the petroleum industry offers attracted a lot of interest. This is an industry that contributes tremendously to the advancement economies with the countries that deal in this (Fleig, 2006, p89). During the past decade, improves in the value of the product brought about a huge challenge pertaining to the retailers of service stations to operate lucrative, lasting and sensible businesses, since the increase in the prices come to negative impacts on the volume of product sales. The industry’s new entrants and fresh competition provided by various other retail businesses made modifications in our industry important. The industry of petroleum has noticed the introduction of new businesses at the assistance stations pertaining to the purposes of generating income for the business enterprise so as to make sure that there is viability and production (Sobel 2008, p42). The propagation of service stations, controlled margins of merchant on volume performance and petrol features all helped bring concern regarding the individual support station’s your survival.

The economical effects of the fluctuations in the price crude oil have finally affected the retailers along with motorists. The United Kingdom’s price of petrol will depend on exclusively around the conditions from the international market. This sector is confronted with various challenges and improvements. The future concern and unpredictability of the exhaustible resources’ supply, such as commodity future trading influences the buying price of the commodity future trading that the global market encounters (Bushell and Stan 2009, p71). Therefore , the necessity for energy puts more pressure on the price while the global economy grows faster. The concern about whether or not the deregulation from the industry of liquid gas brings a fresh dimension for the future of the industry. Some of the giant retailers in the industry include Total, the Royal Dutch Shell, ConocoPhilips and Quarter. This newspaper is going to look at the risk elements associated with the supply of crude oil derivatives like gasoline to the Western world Dulwich shell filling station in London.

PESTEL Examination

PESTEL research, which is short for Political, Cost-effective, Social, Technological, Environmental and Legal, can be described as description of your framework in the macro-environmental factors that are used in the component of environmental scanning in the strategic management. It is portion of the analysis in the external environment when conducting a market research or doing a proper analysis, while offering an insight in the various macro-environmental factors which should be taken into account by the organization or perhaps company (Fleig 2005, p44) It is a important strategic device that helps inside the understanding of the decline or growth of industry, the position of business and operations path. The increasing significance of ecological or environmental factors in the first or early years of the 20 or so first 100 years have introduced green businesses and facilitated extensive use of an up-to-date version of the structure of the style. The following is the PESTEL evaluation of the supply of crude oil derivatives like gas to the Western world Dulwich cover filling station in London:

Personal effects

Primitive is among the most necessary commodities allencompassing the world. Any amount of difference in the price of crude oil can lead to both equally direct and indirect influence on its derivatives, and consequently around the countries’ economic climate. The OPEC countries are definitely the principal suppliers of the crude oil that is used throughout the world. Therefore , it indicates that any kind of policy that is made by the corporation or some countries within the business regarding the rates of crude oil will tremendously affect the flow of petrol and diesel towards the service place (Sobel, 2008, p. 34). Any decision taken by the countries inside the organization, for example raising or reducing the values of commodity future trading may absolutely affect the standard of price of the petrol and diesel in the global community markets.

Personal stability within the countries that produce commodity future trading is also essential to its supply and also influences its rates to a great deal. For instance, much of the crude oil is usually produced by the countries in the Middle East, and if there is turmoil in the region, the drilling of oil will be affected. Deficiency of political steadiness such as conflict or terrorism in the Greenwich region, and in many cases pirates might make it difficult pertaining to the products to reach the gasoline station because of fear by suppliers, or even damage to the tankers.

Financial effects

Require and supply can be balanced by global olive oil inventories. In case the production of crude oil exceeds its require, the surplus merchandise can be retained. When the consumption is higher than the demand pertaining to the product, then simply inventories could be tapped so as to be in a position of meeting the rise in demand, and the connection between the prices of olive oil and the arrays of petrol enables modification in the two directions (Risk Analysis in Oil Refining Sector, 2008). The supply of crude oil simply by countries which are not members of OPEC stands at sixty percent of the total oil produced in the world. Nevertheless , even though their very own supply can be fifty percent even more that that of the OPEC community, they do not have adequate reserves to enable them control the prices available in the market and can only interact with the market fluctuations.

You read ‘Petrol Selling Sector’ in category ‘Essay examples’ However, the OPEC community is actually able of directly influencing the price of crude oil available in the market. This is particularly if the supply in the oil that is produced by the countries that are not members with the community decreases. When the demand for petrol and diesel is rich in the Greenwhich region, it will have scramble for available olive oil thus minimizing the supply. This matter can be solved by building enough reserves to get storing the item so that the source to clientele can continue to be steady if the supply through the source reduces.

The cost of creation is also another factor in deciding the price of essential oil within the global market. If the cost of extracting oil as well as its eventual improving is too substantial, it means the prices will also go large, but if it does not cost very much to produce it, the prices is going down substantially. It also takes a lot of funds and methods to discover even more oil locations and to develop as well as preserve them. If the funds and resources can be found, there would be even more discoveries of oil facilities and the volume produces and supplied towards the final buyer will be significant (Simmons, 2006, p. 23). If you will find no money together with the resources to enable enlargement of the creation, the supply will go down and the prices is going to rise, thus making it tough for the service place to acquire this.

The brokers of oil servers the web link between vendors and potential buyers of the merchandise, and do contract trading for future oil delivery called ‘futures. ‘ Consumers purchase futures intended for hedging resistant to the increases in the prices of oil that can considerably impact their profitability. Producers of oil sell the agreements of oil futures in order to lock in a price for a particular period and the broker agents buy olive oil futures to give promise of future delivery of the product as a presented price. It indicates that the essential oil brokers enjoy a significant position in deciding the price of essential oil in the global market as they are the link between your buyers as well as the sellers (Anderson and Marhadour, 2007, p. 102).

Social effects

Human masse in the region may also affect the supply because the require will be excessive. The population in the Greenwich place is too large and the demand for petrol and diesel might raise, therefore the supply lowering (Fleig, june 2006, p. 65). Frequent attacks by the tanker drives may also affect the source because there will be no one to create the products towards the service place. The need to observe laws this kind of us the employment an excellent source of qualified, and never to employ underage drivers, but who might be qualified may result in lack of enough drivers to complete the work of transportation. The law also models a minimum salary for the employees and this would affect the way to obtain petrol and diesel because there might not be enough funds to employ many drivers to transport the merchandise.

Technological effects

The world of today depends almost exclusively about technology, and exercises including the drilling of oil requires high amounts of it. The device used for the task is very complex as they are necessary to dig deep into the earth and get the oil. The olive oil companies also need to ensure that right equipment are put in place to avoid things such a dirt spillage that can be hazardous for the environment and in addition cause failures (Anderson and Marhadour, 2007, p. 108). This equipment are incredibly expensive plus the oil companies are forced to use a lot of money to make sure that all the scientific requirements are engaged so that development can be enhances and hazards reduced as far as possible. When each one of these production costs are considered the whole procedure for production, the final price in the market becomes high. The need to have the latest technology in the service areas such as epos automation systems raises the price of operation.

Environmental effects

In the few earlier years, the international community has experiences a number of events that have therefore had great influence around the prices of crude oil. This kind of events range from the Hurricane Katrina and some some other tropical cyclone that have minted a significant portion of the globe. This resulted in the costs of oil going up by a very huge percentage, rendering it difficult to acquire that in large quantities. Abnormal drilling of oil by simply some olive oil companies has led to the exhaustion of the sources as well as environmental degradation. It has led to several governments such as that of the United States of America and British to barring the search in some parts (Black, 2012, p. 82). The major aim of these policies is to preserve the resources so as to ensure that there may be continuity or perhaps sustainability. Once these guidelines are set up, the quantity of petrol produced decreases, thus require exceeding supply, which consequently forces the amount paid to go up.

Nevertheless, these guidelines that are launched by the governments, which aims at limiting the extraction of oil exerts a lot of pressure within the companies that produce essential oil to not just finding techniques for increasing effectiveness, but likewise finding option sources of gasoline. These initiatives are very slow and difficult because of the considerable funding required time and energy that enter things like researching and creation of these kinds of products. In addition, when an alternative sources of strength is introduced into the market, there is a substantive time separation in which the building and development of new items that are suitable is done (Beamish, 2006, s. 88). It then will take even more time for the clientele to know regarding the existence or availability of the products and be willing to commit in these people.

Extreme climate also affect the production with the crude oil. For example, when we have a lot of rain, it becomes very hard to access web sites of oil drilling. The machines used in the process of drilling oil might also always be damaged by unfavorable weather condition or all their operation might be affected. This makes it difficult to get the crude oil to be manufactured in large quantities, hence forcing the prices to rise (Bushell, and Lewis, 2009).

Legal results

Different countries have different requirements for one to be allowed to start and operate a business. The same case applies to the ownership of any service station as well as the essential oil companies. In the event the requirements by the government are too strict, you will see a few suppliers in the market, and in turn the price of gas will climb (Assilzadeh, and Yang, 2010, p. 240).


The olive oil industry is a very important part or sector of the world economic climate that should be developed and taken care of in an ideal manner. Concerns such as attacks should be averted by timely payment to ensure that supply can remain regular. The company should certainly invest in the most advanced technology that is linked to the business to make sure fast delivery of petrol and diesel-powered. Proper programs should also be placed in place to make sure that the costs of production and operation of oil companies are reduces plus the legal requirements made as versatile as possible. In order to avoid shortages in supply because of political elements, the company should never depend on just one source of supply, specifically in the OPEC countries. This problem could also help by ensuring that the Greenwich region is secure for any sort of business plus the petrol station should also consider using olive oil pipelines instead of tankers.


(2008, 12). Risk Evaluation in Petrol Refining Sector. StudyMode. com. Retrieved doze, 2008, coming from http://www.studymode.com/essays/Risk-Analysis-In-Oil-Refining-Sector-185467.html

Akkartal, A., and Farreneheit. Sunar, 08, ‘The usage of radar photos in olive oil spill recognition. The Worldwide Archives of the Photgrammetry. ‘ Remote Realizing and Spatial Information Savoir 37, no . Part B8: 271-76.

Anderson, A, and Marhadour A, 2007, ‘Slick PRThe press politics in the Prestige oil spill. ‘ Science Connection 29, no . 1: 96-115.

Assilzadeh, H, and Yang G, 2010, ‘Designation of an interactive essential oil spill management system. ‘ Devastation Prevention and Management nineteen, no . 2: 233-42.

Beamish, T M, 2006, Muted Spill: The business of an Industrial Crisis. Greater london: MIT Press.

Black, B C, 2012, Elementary Reality: Petroleum in World History. New York: Rowman , Littlefield.

Bushell, S, and Stan M, 2009, The Spill: Personal Stories from your Exxon Valdez Disaster. O VE: Epicenter Press.

Fleig, F, 2006, Oil Empire: Visions of Prosperity in Austrian Galicia (Harvard Traditional Studies). Harvard University Press.

Simmons, S, 2005, Twilight in the Desert The Coming Saudi Oil Distress and the World Economy, Steve Wiley , Sons.

Sobel R, 2008, The Money Manias: The Eras of Great Speculation in America, Lanham, MD: Scarecrow Press (Rowman , Littlefield).

Yeomans, Meters, 2006, Petrol: Anatomy of an Industry, New Press.

< Prev post Next post >

Topic: Commodity future, Commodity future trading, Future trading,

Words: 2677

Published: 03.20.20

Views: 342