Question

How has the business environment & climate changed for Gazprom since 2009?

Answer 1

GAZPROM

Gazprom is a multi national energy corporation having head quarters in Saint Petersburg, Russia. According to the data, the company has a sales of $120 billion and which is listed as a largest natural gas company and the biggest company in Russia in terms of the revenue. The company owns it's supply chain and hence the complete process are under the corporation, this can be regarded as vertical integration. The company is very efficient in all the ares extending from the exploration of the natural gas, the production, the adequate transfer and distribution and also accountable for the production of energy from the natural gas.

The gazprom is accountable for the production of natural gas in wide extend in accordance with the demand. The gazprom has produced twelve percent of the total natural gas produced. And in 2011, it was almost about 17 percentage of the world wide production and it is almost about 83 percentage of Russia's natural gas production.

In 2008, the corporation has implemented a new strategy under some crisis at that time. And they try to adopt the cost optimization programs from the next year 2009. And they also reduced the the investment programs, but they try to handle this situation not to affect their future or ongoing projects and try to secure those programs. The capital expenditure of the company was cut by almost 30 percentage but this doesn't affect their major programs which was on their hand.

Their strategies mainly structured and formulated in order to enhance the working of corporation in a long term goal. The main strategy is depended on the improvement in the operational excellence by the proper management. And also the efficient management of all the resources starting from the natural resources to human, capital, technological and financial management. And also they believe in the diversification of their projects in all fields of this and to increase the razing capitalization. And also they want to improve the corporate management and to minimize the negative impacts of the environment.

The world population is increasing at it's full term and in an exponential way. Hence the energy needs will increased into a great extend in the coming future years. So they planned to explore new fields for the production of oil and natural gas. And by this way the growing demands of the energy can be minimized. And from 2011, they invest in the existing fields to reconstruct the fields in a high technological standard and to ensure the efficiency at the peak.

In the year 2015, Gazprom proved through research that the search for the new fields is resulted in a best way that the global reserve of the natural resource is about 23.7 trillion cubic meters. And the company has invested a huge amount in the new projects in order to balance the supply and demand of the natural gas and energy. Gazprom's united gas supply system is counted as the single largest unified gas supply system. And in 2018, the gas supply systems covers an area of 158,200 kilometers. And now they target at a sustainable development along with the expansion of their current operating projects handled in an efficient manner. These are the major changes and their responses towards the changing business environment.