Strategic Management of Dana Petroleum plc

Evaluate the changes implemented by Dana Petroleum plc from 2014 to 2016

Dana Petroleum plc is a company that works in oil and gas and this company is established at Aberdeen which is in the United Kingdom. It operates over the North Sea, the continent of Africa, and The Middle East. Its parent company is Korea National Oil Corporation. The years 2014 to 2016 can be considered an adverse period for companies working in this sector as in this period profitability of various companies including Dana Petroleum plc had been affected adversely and it is very low as compared with their earlier profit figures of several years. In the year 2013, Dana Petroleum plc made progress in the group's principal development project. This project of the cited firm has been operated in the Northern North Sea of the UK(Buckley and Casson 2010). At the end of 2013, the parent company of Dana Petroleum plc decided to acquire two licenses in the name of its subsidiary company. In the year 2014, the firm acquired the Danish licence Triton FPSO a major project that is operated in the United Kingdom. In this project, Dana Petroleum plc is a non-operated partner, holding a 28.3% share. Dana has been operating this project from year 2012, till 2016. The strategic objectives of Dana Petroleum plc for these years were to achieve a better workplace so that there would be minimum chances of miss happenings. They need to involve certain technologies so that they can work in core areas to make the environment better. As in the years 2014, 2015, and 2016 the market of the energy sector was not on the rise so the companthathich were operating in this sector were facing a lot of problems during this period about productivity and profitability(Eden and Ackermann,2013 ). Management of Dana Petroleum plc has implemented certain drivers which brought changes in the financial position of the firm. They have managed their financial sources and started investing them in projects that can earn continuous returns regularly. In the first quarter of 2016, Dana Petroleum plc increased the production level which was nearly about 4.4% as compared with the level of total energy production during the year 2014. Consumption of primary energy fell by 4.4 percent due to a downfall in the year 2016. Final energy consumption which excludes nonrenewable energy sources has decreased by 1.2 percent as compared with the first quarter of 2015(Freeman, 2010). Renewable electricity generation was 23.2 Twh during the first quarter of the year 2016. Further, if this figure has been compared with a figure of the year 2014 or 2015 then there is an increment in the generation rate by 6.4 percent.

During the year 2016, Dana Petroleum plc made certain decisions to maintain its profitability in the market which is facing a severe downfall. These decisions include changes made in oil and gas tables. Dana Petroleum plc with all other companies working in the oil and gas industry has collectively decided on fixed tariffs so that nobody can take advantage of a competitive environment during the period of recession and other firms will not be affected adversely. The use of renewable sources was motivated because these sources are mostly Eco-friendly so the fuel would not harm the environment. Other than this, total energy production for the year 2016 was 33.3 million tonnes which is 4.4 percent higher than the previous year. Oil production increased by 17.3 percent as compared with the figures of year 2015. In the year 2015, the production of natural gas by Dana Petroleum plc was comparatively low as compared with the figures of 2016 because in the year 2016 production of natural gas by the cited firm has been increased by 6 percent. The UK was the net importer of oil and oil products in the year 2016 as its total import was nearly about 4.7 million tonnes but in the year 2015, it was 6.6 million tonnes.

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Change Management Model of Lewin

The business environment is dynamic and the situation of business changes over time. It never remains the same and it keeps on changing hence the management of Dana Petroleum plc needs to manage its strategies in a way so that they can cope with the changed situations. Modifications are there in every business entity, But how to respond to these changes depends on the type of business(Gayle, Tewarie and White Jr,2011). Responding to the changes first needs a proper understanding of changes so that management can make proper strategies for such changes. The model to understand and respond to changes was propounded by Kurt Lewin in the year 1940. Generally, it is known as Unfreeze-Change-Refreeze which clearly defines the process through which management of Dana Petroleum plc can respond to changes they are facing during the years 2014, 2015, and 2016. These stages are defined below:

Unfreeze: This is the very first stage of Lewin's model to understand the changing situations in the business environment. The first stage defines that to achieve success in changes; an organization is required to accept the changes. This stage of the change model defines that why the existing methods to deal with the operations can't work out in the changed scenario(Hill, Jones, and Schilling, 2014). For developing Dana Petroleum plc, management is required to work on the core areas.

Change: After examining the uncertainties in the first stage of this model, the management of the cited entity needs to examine the way to deal with changes so that they can attain profitability and development in the long run unfavorablevourable situations. They need to find innovative and unique methods for dealing with changes so that they can ascertain a new way toward success. The transformation from the stage of unfreeze to change is not a process that can happen in just one day as this needs a lot of research and analysis of the market by managerial personnel so that they can acquire adequate information about various trends and factors which can affect business operation of the cited firm. There is a fact that changes bring opportunities to get success hence management must mark up those opportunities and make certain innovative steps by the changes so that those opportunities can easily and effectively exploited for bringing out better In the recession period between 2014 to 2016, the DANA petroleum can adopt many techniques like by producing natural gases etc. so they don't only have to adopt the new technology but also have to implement it in more innovative manner(Hitt, Ireland and Hoskisson,2012). Because the changing of technology does not ensure success. The external factors influence the business, in the oil and gas sector there are very few companies that are engaged in it. So the DANA can become the leader by using the techniques most effectively.

The implementation of new technology is not to complete the thing but the appropriate labor work helps it. Not only it helps the firm but it also helps in removing the recession by giving jobs. The new technology of production of natural gases by natural means can also improve the skills of formal workers but also develop skills in new workers.

The production of CNG on the place of petroleum also helps the country to import less from other countries and it helps in getting out of the situation of recession.

They have to produce wind energy so they can generate electricity and it also helps them to protect the environment.

The company does not have to share the power of decision-making with others. They have to work according to the system not against the system. The firm has to adopt changes and fight those situations and become able to recover from them. r results.

Refreeze: After successfully implementing strategies by the first two steps then managerial personnel need to refreeze at that position. At this moment changes are made and people who are working in the cited entity are working appropriately to manage such changes(Keupp, Palmié, and Gassmann, 2012). The outcomes of refreeze are the consistent performance of the workforce and rapid growth against changes. This stage ensures the management of Dana Petroleum plc that changes and their beneficial factors are implemented effectively in the daily operations of the business.

The Role of Leadership in a Change Management Process

Leaders play a vital role in any organization so that they can work more efficiently and can generate better results which are beneficial for any organization in which they are working. They play a crucial role in change management to respond positively to the changes. Changes are needed to deal in a better way so that opportunities that lie inside such changes can easily be exploited to get the maximum possible returns(Molina-Azorin, 2012). To carry on with new demands and to satisfy customers with better products an organization needs to cooperate with changes. This responsibility to make better strategies to achieve success during the period in which changes are going on is of a leader.

A leadership strategy is essential for making changes that are successful and can generate better revenue for the profitability of the cited entity. Leaders need to bear certain personal needs so that they can personally handle the situations and it also assists them to inspire their subordinates through their efforts(What is the role of leadership in change management?. 2015). Leaders need to analyze market trends and adverse situations so that they get information about various factors like the unavailability of nonrenewable energy sources and the increase in the price of crude oil. These are some basic factors that can affect the operations of Dana Petroleum plc. Crude oil is mostly acquired from Arabian countries hence there may be some political factors between the UK and countries like UAE which can affect the operations of the cited firm. Hence leaders of Dana Petroleum plc need to analyze the national as well as the international market to gather all information about factors that are causing a downfall in the market of the oil and gas industry(Noland and Phillips, 2010). After getting such information leaders need to find the best alternative out of various solutions that fit in the present scenario.Some key procedures needd to be followed by leaders of the firm which are mentioned below :

• Leaders should understand the scope of various projects of their entity.
• They need to understand changes that are in progress in the cited entity.
• Leaders need to make proper guidelines to cope with changes.
• They need to analyze those areas which can be affected by such changes. Like if there is an unavailability of nonrenewable sources of fuel then they need to shift over the renewable sources of energy(Priem, Li, and Carr, 2012). Hence this change will affect the part of Dana Petroleum plc which is working in the production of nonrenewable sources and renewable sources of energy.

They need to implement such strategies and plans that are flexible so that in case the situation changes then they can mold those strategies by the changed circumstances.

Leaders are required to identify how their performance can affect organizational performance in the long run.

Recommendations on how the firm can improve its change management process

• In the recession period between 2014 to 2016, Dana Petroleum plc adopted many techniques like producing natural gases, etc. so they don't only have to adopt the new technology but also have to implement it more innovatively. Because the changes in technology do not ensure success(Rahm and Riha, 2012). The external factors influence the business, in the oil and gas sector there are very few companies that are engaged in it. So Dana Petroleum plc can become the leader by using the techniques most effectively. Some other recommendations are given below :
• The implementation of new technology is not to complete the thing but the appropriate labor work helps it. Not only does it help cited firms but it also assists in removing the recession by giving jobs. The new technology of production of natural gases by natural means can also improve the skills of permanent workers but also develop skills in new workers.
• The production of CNG in place of petroleum also helps the country to import less from other countries and it helps in getting out from the situation of recession(Zhou and Wu, 2010). They have to produce wind energy so they can generate electricity and it also helps them to protect the environment. The company does not have to share the power of decision-making with others. They have to work according to the system not against the system. The firm has to adopt changes fight those situations and become able to recover from them.
• Dana Petroleum plc needs to rely on renewable sources of energy as comparatively cost of renewable sources of energy is less than nonrenewable sources. Hence to improvise in this sector, the research development team of the entity needs to find better resources with less cost and more efficiency(Swayne, Duncan, and Ginter, 2012). They need to make flexible plans that can be molded according to circumstances, such as down downfall in the market during year 2014 to 2016.
• Further, it can be recommended to Dana Petroleum plc and its management to collaborate with small companies in this sector so that they can get more share in the targeted market. It can be treated as a policy to eliminate competitors during a period of recession so that they can acquire a major share of the market without even making more effort (Wheelen and Hunger,2011). Hence mergers and acquisitions can be treated as a method to improve performance during the period of change. Mergers and acquisitions provide more resources and a more skilled workforce.

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Conclusion

In the above report, various figures are mentioned for Dana Petroleum plc and the oil and gas industry. Through these figures and facts, it can be ascertained how management can make various decisions through the implementation of better strategies and effective policies. In this report, different type of expansion plans which are organized by Dana Petroleum plc is mentioned along with their figures. Other than this readers can acquire knowledge about the importance of leaders in the cited entity and how they can affect the entity through the management of changes. The report is supported by Lewin's change management model.

References

• Bryson, J. M., Berry, F. S. and Yang, K., 2010. The state of public strategic management research: A selective literature review and set of future directions. The American Review of Public Administration. 40(5). pp.495-521.
• Buckley, P. J. and Casson, M., 2010. Edith Penrose's theory of the growth of the firm and the strategic management of multinational enterprises. In The Multinational Enterprise Revisited (pp. 277-300). Palgrave Macmillan UK.
• Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management. Sage.
• Freeman, R. E., 2010. Strategic management: A stakeholder approach. Cambridge University PressWhat is the role of leadership in change management?
• Gayle, D. J., Tewarie, B. and White Jr, A. Q., 2011. Governance in the twenty-first-century university: Approaches to effective leadership and strategic management: ASHE-ERIC higher education report (Vol. 14). John Wiley & Sons.
• Hill, C. W., Jones, G. R. and Schilling, M. A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
• Hitt, M. A., Ireland, R. D. and Hoskisson, R. E., 2012. Strategic management cases: competitiveness and globalization. Cengage Learning.
• Keupp, M. M., Palmié, M. and Gassmann, O., 2012. The strategic management of innovation: A systematic review and paths for future research. International Journal of Management Reviews. 14(4). pp.367-390.
• Molina-Azorin, J. F., 2012. Mixed methods research in strategic management: Impact and applications. Organizational Research Methods. 15(1). pp.33-56.
• Noland, J. and Phillips, R., 2010. Stakeholder engagement, discourse ethics, and strategic management. International Journal of Management Reviews. 12(1). pp.39-49.
• Priem, R. L., Li, S. and Carr, J. C., 2012. Insights and new directions from demand-side approaches to technology innovation, entrepreneurship, and strategic management research. Journal of Management. 38(1). pp.346-374.
• Rahm, B. G. and Riha, S. J., 2012. Toward strategic management of shale gas development: Regional, collective impacts on water resources. Environmental Science & Policy.17. pp.12-23.
• Swayne, L. E., Duncan, W. J. and Ginter, P.M., 2012. Strategic management of health care organizations. John Wiley & Sons.

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