NObile Oil,Inc.- Case Study

NObileOil,Inc.- Case Study

NObileOil,Inc.- Case Study

EconomicEnvironment

Strengths

Noblemade numerous acquisitions in the industry and this was mainlybecause of the industry decontrol. The acquisitions boosted theperformance of the company as well as the productivity.

Weakness

Thetough economic situation and the global recession affected thecompany, as there was increase in profit pressure thus resulting intonumerous changes on the level of distribution. The effect would beevident among the number of distributor-owned transportation vehiclesthat slumped greatly. Additionally, there was a decrease in storagefacilities, which affected the distribution capacity of the companygreatly. Tightening of the credit of terms .

Socialand Cultural Environment

Strength

Nobleoil boasts of a population where it can sell its products with thecompany having a niche in the seven county area of the southeasternUnited States. The population of 15,000 and 25,00 at the semi-ruralareas has been a blessing to the company as it offers the neededmarket for the products.

Weakness

Themarketing area for its products is semi-rural and this may not makethe company realize the necessary productivity.

Supplier/Supply Factors

Strengths

Nobleoil is a distributor of oil products to 10 reseller locations, whichoffers the much needed market for its local gas. The company alsotakes in reseller customers from time to time and this largelydepends on the marketing techniques given that gasoline and oilproducts were mainly considered commodities.

Weakness

Mostof the distributors offered the same product just as that by Noble.This means that the company had no uniqueness in its supply chain.

Political/Legal/ Government Environment

Severalregulations affected the industry and among theme included thederegulation of gasoline and crude oil prices.

Environmental

Noblewas affected by the deregulation of oil distributors through theissuance of environmental Protection Agency (EPA) regulations inregards to the leakage of gasoline from its underground steel storagetanks. Having the regulation in place is positive for the company’sperformance.