Business Project

The company is a French multinational company and was founded in 1924 by Ernest Mercier after rejecting the partnership with the Royal Dutch Shell Company. In the year 2013, the company generated revenue of around 171.65 billion euros, while the Total Oil Company's total profit was 17.81 billion euros. The company's headquarters is situated in France (De Oliveira, 2007). The company deals in providing a wide range of products and services that mainly include exploration of oil and gas, refining oil and various petrochemicals, and transporting and trading various gases like LPG and natural gases to various other organizations located in the different countries. The company also declared the lower fuel emissions as well as the cost-efficient crude oil or petroleum products. The Total Oil Company also manufactures large-scale chemicals for the other companies. The company is also being viewed as the super-major oil company in the world that serves its large customers and the organization in the international market.

As compared to different competitors, the market share of the company is increasing due to business expansion aspects in many countries. The rivalries of Total SA mainly emphasize refining, mining, and exploring processes, which also assist them in managing all the business prospects effectively.

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Ranges of entities have been added in the same sector for the perspective of enhancing business reach worldwide. Changes have been arising in the competitive marketplace so that businesses can manage technological aspects, and at the same time, researchers are also emphasizing major factors that impact the external business environment (Dunning, 2012). Certain theories and facts are presented in the present study about the subject matter to support the defined topics mentioned here. Furthermore, the research report has also discussed PESTLE and PORTER'S analysis for two different marketplaces. This is being stated for the purpose of suggesting a suitable opportunity for the business. In this context, the research has also discussed the factors that the cited companies should take into account while trading across borders.

The other company that is being selected in the present case is British Petroleum, which is yet another of the largest oil and gas companies in the UK. The following company is being selected to facilitate a comparative analysis between the largest oil companies in Europe. The performance of the company has been increasing effectively as it is a vertically integrated company operating in all areas of the oil and gas industry. Further, the largest division of the company is based in America, which has a market share of around 19.75% (Biswas et. al. 2012). Thus, the present study has stated insights about the competitive environment of these companies.

Companies Along With Competitive Positioning in Its Various Marketplaces
Competitive Strategy of Total SA

The major competitors of Total SA are Royal Dutch Shell, British Petroleum, and Exxon Mobil Corporation, as these companies mainly exist in the UK market. To create a competitive edge over rivalries, Total SA must emphasize its own capabilities and core competencies so that threats can be managed accordingly (Stevens, 2008). Thus, the company has been producing base chemicals and specialty chemicals for the industrial and consumer markets. The company has a huge interest in power generation as well, which further assists in managing mining processes. Hence, with the help of Porter's generic strategy, Total SA can pursue a competitive advantage across the chosen market and also beyond the marketplace. Subsequently, the business can adopt a lower-cost strategy, a differentiated strategy, and a focus strategy, among which a differentiated technique can be selected for making the identity different from that of the competitors. If the business conducts the market in the same area (in the UK), then it has to emphasize on differentiation strategy so that a competitive edge can be created in the same marketplace (Crucini, Kose, and Otrok, 2011).

However, on the other hand, the marketplace of India is also embodied with certain oil companies such as Indian Oil, Hindustan Oil Exploration Company Ltd., and Petronet LNG Limited. Apart from these companies, there are a few others that pose threats to Total SA in different ways, so this could make the market more competitive (Penrose, 2013). Hence, in such a market, Total SA must adopt a cost leadership strategy that involves the firm winning market share by appealing to price-sensitive customers. To work as per the strategy, Total SA must change the facets of its business. This can be achieved by having the lowest prices in the target market segments or at least the lowest price-to-value ratio. Here the foremost consideration should be paid to achieving high asset utilization (Vivoda, 2009).

Marketing Strategies and Distribution Channels of Total SA

The marketing strategy of Total SA should be changed as per the current market condition and as the business is operating in the UK market; therefore, marketing concepts should be changed as per the country. Here in the present case, the Ansoff matrix can be taken into account, which is a competent marketing strategy that also develops more opportunities for growth and success (Wellink, 2014). The strategies are categorized into four basics, such as market development, product development, market penetration, and diversification. For the present case, a product strategy can be executed in which Total SA should emphasize developing new products and services in the same market segment for existing customers. This can also assist the business in grabbing the attention of new and potential customers (Akrivopoulou and Christina, 2012).

However, on the other hand, to operate the business successfully in the Indian market, SA needs to implement a diversification strategy wherein new products should be developed in a new marketplace to manage sustainability aspects (Nandi, 2010). The strategy is also useful in terms of acquiring the attention of customers to a greater extent, and at the same time, competitive positioning can also be facilitated for the same.

Core Competencies and Capabilities of Total SA

Here in the present case, a core competency model of C. K. Prahalad and Gary Hamel can be applied, which is a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace (Allen, 2005). The model is based on four major competencies, which are being mentioned here:

Resources: These are the resources for the development and acquisition of skills and technologies (Tuominen et. al., 2008).

Capabilities: This provides various possibilities to build the level of core competencies. This is also crucial in terms of enhancing the value of business in regional and global markets.

Competitive advantage: This provides a challenge to acquire and develop the largest possible market share of core products (Sohal and Perry, 2006). Hence, through the major product, Total SA can enhance its competency factor.

Strategy: The strategy is to develop the largest possible market share of finished products. Thus, as per the competency model, Total SA can get opportunities for growth and success in the same marketplace.

As per the viewpoints of George Stalk, Total SA can manage its core competencies based on managing product quality and acuity so that evolving customer needs can be met. At the same time, it could also assist Total SA in managing business practices effectively in the Indian market. The main emphasis here is being given to meeting the needs of customers. It is thus also essential for Total SA to undertake strategic decisions so that a competitive edge can be created amid the existing business rivalries (Rendtorff, 2011). However, the capability of Total SA can also be encouraged with the help of the Charles Baden Fuller innovation model, which provides a basis to manage business conditions effectively.

Porters of Total SA:

Threats of new entrants: New entrants can also face low levels of threats due to high capital requirements to set up the operations. It would be difficult for the companies to develop the brand image effectively in a new market.

Threat of substitutes: Threats of substitutes are high for the company because oil-related products, chemicals, and natural gas produced by different companies are highly substitutable. The products and services of the competitors can be used as major industry rivalries since they are producing the same sort of services (Risk Factors, 2015).

Bargaining power of buyers: Consequently, the bargaining power of buyers is medium because most of the buyers of oil products buy in bulk, and therefore the loss of one buyer would significantly affect the company's revenue. Oil and gas are both major products for the economy, and this also explains the reasons why some developing countries supply oil through state agencies.

Bargaining power of suppliers: The bargaining power of suppliers is low because Total SA has embraced a vertical integration growth strategy that involves mergers and acquisitions with companies working at different levels of operation; hence, thereafter, this influences the supply chain management of the company (Rendtorff, 2011).

Competitive rivalry: The major competitors of Total SA are Exxon Mobil Corporation, Royal Dutch Shell, and BP Plc, which have also established their global presence in the oil and gas industry of the UK. These companies can impact the business positions due to a strong level of branding and differentiating strategies.

Porter's Five-Force Model of British Petroleum

Porter's five force model is an important tool for industry analysis that facilitates the management of British Petroleum to expand the business effectively. It proves to be effective in adopting appropriate marketing strategies in the marketplace.

• The analysis of British Petroleum can be understood in terms of the bargaining power of buyers. Suppliers and new entrants, as well as other existing businesses (Jenkins, 2013).
• The threat of substitute products for British Petroleum is low because of the high cost of production. Similarly, the threat of new entrants is also low because of the huge capital requirement at the initial stage.
• Furthermore, the existing players in the oil and gas industry are very high because of the high exit barrier.
• The competitors of British Petroleum consist of Shell, Exxon, and Total as well as Mobil. Further, the bargaining power of suppliers is high because of the availability of few substitutes (Wetherly and Otter, 2014).
• In addition to this, the switching cost of suppliers is also high. Due to this, the management of British Petroleum needs to consider the issues of suppliers effectively. The bargaining power of buyers is medium because they are price-sensitive.

What Does the Company Need to Consider When Trading Across Borders?

Total SA

It is one of the world's largest oil organization companies in the French market. The business entity is managing various business operations in different overseas markets. Currently, Total SA is mainly dealing in the US and Europe. But a business entity wants to expand business in a new emerging market of the world, that is, India. The main reason behind the selection of this new decision is that Total SA has recorded a huge loss of money from several dimensions. As a result, Total SA. has to reduce or cut the spending the organization by 20% to lower its North American shale exposure (Research and Markets: Analysis of Total SA, 2012). This approach assists Total SA to keep losses at a minimum. In addition to that, the drop in oil prices also influences organizations to expand business in new markets. This is because the reduction in oil prices affects the profitability of the company.

PEST Analysis of Total Oil

Political factors: While examining the political factors of Total Oil., global factors can be taken into account since those impact the scenario of business. Operating the business in the European market leads Total Oil to emphasize many aspects, such as data protection, health & safety, and environmental protection. Thus, in the same scenario, the company might be facing threats from the Indian oil and gas industry since all are emphasized towards numerous norms. Hence, due to changes in the political scenario, Total Oil . might be experiencing sustainability challenges (PEST Analysis: What is PESTLE Analysis, 2014).

In different parts of the world, countries control access to their oil and gas resources. In addition to that restrictions on foreign investment in the particular oil and gas sector for national interest. Many countries also control the import or export of certain oil-based products as per the economic conditions (Risk Factors, 2015). To manage cross-border business in India, Total Oil can expand business by developing partnerships with domestic Indian firms that will reduce the risk of investment for the organization.

Economical factors: The ratio of economic growth in Europe has been changing frequently due to a consistent flow of information from the government and other sources. However, on the other hand, the oil and gas industry is facing some constraints due to improper flow of resources. Other economic factors, which include exchange rates, inflation levels, income growth, and debt & saving levels, also affect businesses and consumers. The current state of world stock markets is a typical example of the volatility of economic factors. Hence, from the discussion, it is clear that Total Oil . can also face threats in the Indian marketplace (Jefferson and Bowling, 2011).

Technological factors: Total oil. It also represents great concern towards technological aspects, and for that purpose, the subsequent company is allocating more resources for augmenting the ratio of creativity and innovation. Innovation needs to take place in the business so that a competitive edge can be created in the same market. However, apart from that, while entering the Indian market, Total Oil . is required to give more concern towards technological facets for sustaining its position in the marketplace (Total Oil Fundamental Company Report Including Financial, SWOT, Competitors, and Industry Analysis, 2015).

Social factors: The company seems to have great concern for social forces so that the source of revenue can be retained for a longer period, and this is being conducted in the UK marketplace. However, on the other hand, Total Oil . is also required to be more concerned with social aspects for reducing the level of pollution in the marketplace (Heflin and Wallace, D., 2012).

Environment factors: Total Oil . has been getting huge collaboration from society as the company pays more attention to environment protection. At the same time, while operating a business in the Indian market, Total Oil . is required to place more emphasis on environmental aspects since, through that, economic growth can also be facilitated. It is one of the most important factors that could create a huge impact on cross-broader operations. To reduce the risk of climate change, the public authority of India has developed strict regulatory frameworks to reduce greenhouse gas emissions through various tools such as carbon taxes, restrictive permitting, increased efficiency standards with the help of the latest technologies, and promotion of renewable energy (Risk Factors, 2015). All these elements could increase the price of more expensive products, the duration of project implementation, and the reduction in demand for petroleum projects. The current and pending greenhouse gas regulations are playing a significant role in increasing compliance costs associated with monitoring or sequestering emissions and the acquisition of new technologies.

Legal factors: Global forces have been affecting the company to a greater extent since legal rules and policies have been changing widely. Total oil. Is required to give more attention to legal policies so that all acts and trade practices can be managed effectively. In India, the company will be in a position to emphasize more on legal aspects (Kourteli, 2005). To carry out overseas business activities, the management of Total Oil has to follow all regulations associated with the mining and transportation of oil and gas products. Furthermore, the organization needs to consider political relationships and trade operations between the US, India, and other European nations.

The success of organization and business operation of particular expansion projects in international market projects may be disrupted by civil unrest, acts of terrorism, and local security concerns (Webster and Hamiton, 2012). All these factors increase the cost of the project or even shut down operations within a period. In India, total oil. Has to develop a good relationship with various pressure groups (government, general public, etc.) to generate good returns from the project.

Importance of Understanding the Culture of Each Country

In the process of overseas business operations, the management of Total Oil should have to consider the culture of that particular nation. In the current study, the importance of culture is explained below:

• India is a place where people come from different cultures and regions (Wetherly and Otter, 2014). By understanding the culture of people, a business entity can adopt different kinds of marketing strategies as per the perception of domestic citizens that will enhance sales of the company.
• By evaluating the cultures of people, management can adopt a wide range of business strategies to manage a culturally diverse workforce. This approach assists management in avoiding conflicts among cultures.
• This information helps management in the formulation of a wide range of business strategies to avoid social issues (Ghannadian, 2006). By avoiding social issues, management of Total can manage several activities during business expansion in an appropriate manner.

Evaluation of the Distribution Channel of Total Oil in Comparison to Its Major Competitors

The major competitors of Total Oil include Exxon Mobil Corporation, Royal Dutch Shell, and BP Plc. There is a similarity in the distribution process of goods and services. The management of Total has used various tactics for managing the distribution of oil and lubricants. Similar to other oil companies, Total Oil sells its products with various distributors, partners, multi-service stations, fuel stations, etc. (Akrivopoulou and Christina., 2012). In addition to that, the business entity also uses various supermarkets, small retail shops, and workshops of automobile companies to manage sales of crude-based products. Furthermore, the business entity also provides franchises, dealerships, and other distribution channels that are similar to the main distribution channels of other competitors. All these approaches play a significant role in managing the sales of the company. In addition to that, Total Oil also uses online shopping sites to sell lubricant products.

Marketing Strategies of Total in Different Countries Against Main Rivals

For managing competition with major competitors like Royal Dutch Shell in the US and British Petroleum in the UK (Betz, 2002). The management of Total Oil has adopted various marketing strategies to promote a wide range of products and services. To manage competition with Shell in the US, Total Oil company promotes the quality of its products with a wide range of promotional tools such as social media, TV advertisements, new papers, magazines, etc. These tools have played a significant role in encouraging consumers. On the other hand, the business entity develops various marketing strategies and advertisement tools based on the traditions and culture of people in the UK to manage competition with British Petroleum. By using cultural elements, a business entity can develop a special image of the company in the minds of consumers (Esslinger, 2009). Currently, business entities want to expand business in India, so Total has to manage competition with various private and public oil companies in India, such as Reliance and HP (Doing Business in India: India Trade and Export Guide, 2015). In this regard, management has considered both traditional and modern internet-based promotional tools based on the culture of the target consumer that will enhance the goodwill of the company and awareness of the product among consumers.

Discussing the Extent to Which the Company Can Meet the Need

Total Oil offers a wide range of crude or oil-based products for businesses and individual consumers (Stevens, 2008). To meet the needs, tastes, and preferences of consumers in India or across the border, the management of Total Oil should carry out a market assessment from which the company can assess information about the willingness of the consumer to pay for particular products and services, number of target consumers, the culture of people, standard of living, the preferences of the consumer, the products of other companies and consumption patterns of people. Based on information collected by considering the mentioned factors, the manager can offer the best suitable product in India along with appropriate pricing. So, a business entity can meet the needs and preferences of both businesses as well as individual buyers in an efficient manner that could help the organization increase sales of their companies shortly by fulfilling the desires of people (Patricia, 2014). So, market assessment can be considered the best tool to meet the needs of buyers. In addition to that, a business entity can carry out customer surveys to assess more reliable information about their requirements, which will enhance the ability of the firm to increase the satisfaction level of clients by providing the best products.

Critically Evaluate and Analyze the Academic Theories

The aforementioned theories and models depict that Total SA can expand business in other countries, aid in increasing the overall rate of return, and provide good-quality services to a large number of buyers. The analysis has been done based on the PEST and PESTLE of two organizations. It shows that both organizations can cover large market potential and effectively meet the expectations of customers. It can be critically evaluated that legal and social factors need to be considered at the time of the expansion of a firm because these create barriers to operating business in other countries (Allen, 2005). It has been found that because of high capital expenditure, total SA has a low threat of new entrance, thereby allowing firms to easily operate in other countries. Similarly, the company can also enter India without any kind of barrier. On the other hand, it has good financial as well as manpower to compete at the international level.

It can be critically evaluated that Porter's five force model is the imperative way to assess the performance of an industry. It leads to expanding business easily as management can formulate strategies by prevailing situation. Further, by applying Porter's five force model, detailed information has been gained about suppliers and buyers, as well as the competitive rivalry of the firm. It ensures certainty about future business activities that aid in increasing the overall rate of return because the company can generate huge sales. On the other hand, PEST analysis is the foremost way to analyze all aspects of a firm broadly. With this, barriers can be identified in terms of cultural issues, monetary policy, and technologies. This enables the management of both organizations to form the strategies to enter a new market (Webster and Hamiton, 2012).

Operational efficiency is also the effective analysis that is done by the management before the expansion of the firm. This way, potential barriers will be identified for corporations that aid in operating business in India. However, the legal facets are almost in India and the UK, which assists management to start operations in less time. It can be critically evaluated that export, import procedures, and start of business are to be considered in advance; otherwise, it hampers the productivity of firms. On the other hand, managing people to end their appointments is the toughest task at the initial stage. Owing to this, the management of firms needs to consider this as a crucial issue. Human resources are the most imperative assets of any organization, without which the success of the company cannot be determined in the long run (Crucini, Kose, and Otrok, 2011).

Furthermore, operational efficiency needs to be checked against several aspects, such as trade between two countries, infrastructure, and energy, to start the operation of firms within a specified period. It depicts that different theories, such as Porter's pestle, are effective ways to determine the success of a firm at the time of trade between two

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