Assess the extent to which governments shape the global oil economy Essay

Assess the extent to which governments shape the global oil economy. In your analysis, consider the respective roles of nature, industrial structure and war - Essay Example y by oil prices, since it is the major economic activities in such countries factors such as political corruption, foreign debt, militarization, and power intervention are problems that this countries experience. Energy is a key driver of growth and industrialization in this century. The current global economy relies heavily on oil as a form of energy, manufacturing, transport and other key industry depend on oil either directly or indirectly. Some of the household goods as well as cooking gas is as a result of oil, hence, the global population depends heavily on oil. Due to this reasons oil prices have been reported to be very volatile, and this has affected both developed and developing nations. Fluctuations of oil prices shift political balances around the globe. When the oil prices are high the exporters tend to gain power, but face severe challenges when the prices drops (Bridge and Le billion, 2012). The need to control sources of oil has historically made many countries to go to war. For instance, the US paced an oil embargo over Japan, which obstructed 80 percent of its oil supply. This then prompted Japan to join World War II with the embargo being one of their key motivator. Oil industry is a continuous process that involves extraction of oil from the earth. There are two levels in this industry structure, upstream and downstream. Upstream comprises activities such as explorations, looking for oil bearing lands, construction of gas separators and oil well infrastructure. Downstream comprises of activities such as transportation that is sometimes done through pipelines, railroads and tankers; refining, which is the process of converting crude oil to usable products such as gasoline and fuel oil; and finally marketing that is done by setting up petrol stations. This industry is capital intensive despite using sophisticated technology in present times (Bridge and Le billion, 2012). Everything from production requires large amount of capitals and this has

Mcdonald's case study Example | Topics and Well Written Essays - 750 words - 1

Mcdonald's - Case Study Example In 2003, McDonalds reinvented its mission/vision by implementing a â€Å"Plan to win† strategy that focuses on becoming â€Å"bigger, not just better†. Action plans in implementing this strategy are to increase sales in every geographic segment of the business; to offer relevant menu to its 60 million customers per day, and to gain the confidence of stockholders by the profitability of its operation. McDonald uses 5 key strategies in implementing this plan, i.e. product, price, people, place and promotion (McDonalds 2009 annual report). In increasing sales in every geographic segment of the business thru franchising. Focused on brand availability, menu variety, beverage choice, convenience and day part expansion. McDonalds introduced McCafe and premium Angus third pounder, focused on classic favorites like big Mac and Quarter Pounder, and emphasized affordability in the US market; and in mid-2010s introduced frappes and smoothies. In all areas of operations, reinvestment was done in the facilities and equipments, opened stores in convenient areas, extended store hours, build up its drive through systems and offered locally relevant selections. The strategy included advertising and promotions. In U.S, drive-through systems, and cafà ©-ambiance were developed; in Europe, the portable snacks were popularized; in Germany, breakfast time was introduced and designed the same strategies in other areas where McDonalds is present. McDonalds joined the bandwagon of globalization and has developed franchised business in 119 countries. In 2010, McDonalds has 32,737 franchise units all over the world, an increase of 28% from 21,078 units in 2009 (McDonald’s Annual Report). This means the company has to work with franchise owners with diverse cultures, religion and ethnicity. The tactics of McDonalds is to adopt its menu to the culture and taste of the region, to hire and train locals to work in the