Response strategies adopted by HASS petroleum (K) Ltd to environmental challenges
Abstract
The objective of the study was to identify environmental challenges facing Hass
Petroleum (K) Ltd and the response strategies adopted by Hass Petroleum (K) Ltd to
these challenges. The study considered Hass Petroleum (K) Ltd as a case study. Primary
data was collected by use of an interview guide where the Chief Executive Officer of
Hass Petroleum (K) Ltd was interviewed on environmental challenges facing the
organization and its response strategies to those challenges. This data was further
subjected to rigorous data processing and analysis using content analysis. The findings
revealed that Hass Petroleum (K) Ltd faced environmental challenges such as political,
technological, social, economic, regulatory and industry. Political instability in the
region, inadequate infrastructure, lack of sharia compliant banking and insurance
products, high interest rates, exchange rates and inflation rates, tax prepayment policy,
price controls, open tender system, merchant refinery and stiff competition are the
challenges in the oil industry. The organization responded to these challenges through
corporate, business and functional strategies. Corporate strategies included diversification
by moving to non-regulated product lines and markets, portfolio analysis and parenting
strategies. These are basically growth strategies applied by Hass Petroleum (K) Ltd in
response to environmental challenges. The organization also responded through business
strategies such as differentiation by offering personalized services to its customers. This
enabled Hass Petroleum (K) Ltd achieves competitive edge in the industry. Functional
strategy was also employed by Hass Petroleum (K) Ltd in a hierarchical way to support
business and corporate strategies.
Citation
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School of Business