STRATEGY FORMULATION OF AN UPSTREAM OIL AND GAS COMPANY USING TOWS MATRIX ANALYSIS

• Main Author: Maulana, Rony
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53352
• Institution: Institut Teknologi Bandung

This study will focus on formulating strategic direction for SEI, an up and rising Indonesian upstream oil and gas company that currently is building up its assets portfolio by discerning investment in good quality projects in order to sustain in industry The strategy formulation started by scanning the internal and external environment of the company to comprehensively understand the company’s business situation. The resource based view approach and value chain analysis is used to analyze the company resources capabilities to find out company’s strength and weakness factors. The external environment analysis that being used is PESTEL and Porter’s Five Forces by observing external business condition and identify external factors to look into opportunities and threats for the company. By analyzing the company’s Stengths, Weaknesses, Opportunities and Threats (SWOT Analysis) author can figure out some essential key issues and their implications that are facing by the company. These key issues and implications would become the basis to formulate the strategy objectives to direct the company back on track to achieve it’s vision and mission. TOWS Matrix, is used as an analysis tool to get some analysis of alternative strategies by using company strength and weakness to take opportunity advantage and avoid the threat. Author gathers key issues, and their implications for the company then provide proposed solutions to achieve the desired company’s performance. By using the TOWS Matrix author can generate strategy options that SEI should pursue. Further analysis using TOWS Mapping with paired comparison method, author enable to compare each of the key factors in industry attractiveness (threats and opportunities) and the key factors in business competitive position (strenght and weakneses) to give an overview which factors are important to SEI in order to prioritizing the TOWS strategic choices. Based on TOWS Mapping, it is recommended that SEI should pursue stabilization strategy, which is to repair internal weaknesses in order to utilize the opportunity optimally (WO Strategy). The strategy map is developed to visualize a logical, cause-and effect connection between the chosen strategy objectives. The company needs a set of activities and performance metrics that would enable it to performs and delivers according to business plan. The business implementation plan will guide the company to meet the expected performance.