Strategy Development & Implementation for a Large Independent

Situation

A large, independent E&P company engaged Carnrite to develop and implement new a strategy for achieving growth objectives that worked in harmony with the overall goals of building long-term shareholder value and attaining best-in-class operatorship. The client recognized that it was missing a clear, consistent strategy for growth; and that without one it risked a significant performance gap that could threaten the business’ viability.

Approach

Carnrite, in collaboration with our client, first assessed the operating and external competitive environments for upstream and relevant regional industries. As insights and analysis developed, Carnrite tailored high-level strategies that were optimized based on key criteria established with the client. To define and implement the global strategy, regional strategies were developed to align local priorities with global objectives.

Key Results & Outcomes

  • Detailed outcomes of the assessment in a Strengths, Weaknesses, Opportunities, and Threats (SWOT) document, used to update the company’s E&P vision and goals
  • A global strategy based on the analysis phase that was high-graded based on rigorous criteria (e.g. financial metrics, client core competencies, and industry expectations)
  • Regional strategies to meet the overall strategy through utilization of local resources and capabilities, with consideration for risk profiles
  • Implementation of the strategies, with milestones and scorecards for continuous improvement, that led collectively to positive synergies creating a multiplier effect on the entire enterprise

Carnrite’s Unique Value Contribution

Carnrite’s participation in this project delivered value in three primary areas: profitability, growth, and competitiveness. Our client’s resources were not strategically aligned to enhance profitability. Carnrite’s participation in strategy development enabled the company to effectively allocate resources to current market demand, while at the same time plan for future profitable development opportunities.

Growth areas were not clearly defined before the strategy was developed, resulting in unpredictable behaviors among the client’s business units. Carnrite identified expansion targets with promising profiles based on the company’s overall vision, allowing for more natural transitions into future organic and inorganic growth.

An internal understanding of external forces was missing at the company. With the help of Carnrite, the client was able to successfully pinpoint relative and absolute competitive advantages for each market. These competitive strengths became the cornerstone of business decisions, thereby improving performance and competitiveness on a global scale.

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