Competitors Analysis Strategic Management Systems

Question: Discuss about theCompetitors Analysis for Strategic Management Systems. Answer: Introduction Artz et al. (2012) depicts that every organization intends for the betterment by following a strategic performance measurement systemin their business approach so that better productivity and profitability can be attained. Thus, these organizations often disclose their strategic management systems for proving their competency in the market and upcoming procedures for a better organizational outcome. The primary purpose of this assignment is to discuss the comparison between two organization- Woodside Petroleum Limited (WPL) and National Australia Bank (NAB). WPL is an environmentally sensitive industry; whereas National Australia Bank (NBA) is a non- environmentally sensitive industry and their comparison will be illustrated by comparing their sustainability report (SR). Outline of the Organization Woodside Petroleum Limited (WPL) Woodside Petroleum Limited (WPL) is a petroleum exploration and production company and is an operator of oil and gas production in Australia. The annual revenue of this organization 2015 was AUS $4.496 billion and they are proceeding their business approach with 3000 employees (Woodside.com 2016). Addis (2015) depicts that this organization has exploration, development and operating activities also inUnited States, New Zealand, Republic of Korea, Canada and they also develops some liquefied natural gas projects. National Australia Bank (NAB) On the other hand, National Australia Bank is a financial institute that serves 10 million customers at more than 800 locations in Australia, New Zealand and other places and is considered asone of the four largest financial institutions in Australia regarding market capitalization (Nab.com.au 2016). Dalyand Gebremedhin (2015) mentions that NAB have 35,000 employees, who not only provides excellent financial services to the locals, but they also suggest them the best investment ideas. Their annual revenue in the year 2015 was AUS $20.176billion (Nab.com.au 2016). Multi-Perspective SPMS for Both the Organizations The focus of this report is SPMS public reporting and thus it is crucial for them to illustrate a range of perspectives in addition to financial including business process, staff, health, environment, community and sustainability along with their performance section that comprises ofthe initiatives and actual measurement for supporting their strategic management. Market Performance Woodside Private Limited is the leading oil and gas industry in Australia and delivered annual production of 92.2 MMboe in 2015, which is the second highest annual result (Woodside.com 2016). Their 2P Developed and Undeveloped Reserves is increased to 19.1%, 264.8 MMboe and 2C Contingent Resources is increased by 151%, 2,632 MMboe (Woodside.com 2016). In the year 2014, they have their production rate 9% higher compared to 2013 while Eltaib (2012) argued that in the year 2015, there production reduced to 22%. The prime reason behind this loss is reducing the break-even cash cost of sales to US$11 per boe. The national Australia Bank performs their business approach by marinating their credit risk, operational risk, non-traded market risk and traded market risk. In the year 2014, NABs Common Equity Tier 1 capital has the ratio of 8.63% and in the year 2015, the Common Equity Tier 1 is 10.24% in the month of September (Nab.com.au 2016). Zhang et al. (2013) defines that there is more risk for the financial institution and the concerned organization takes required management approach for the managing the financial risk with the support of Principal Board Risk Committee (PBRC) and Group-wide Risk Management Framework (RMF). This risk assessment comprises of the first line risk management that highlights the responsibility of owning managing the risk and the second line emphasizes on risk assessment regarding financial crisis and depletion. Moreover, in the third stage, internal audit is the major concern that is responsible for the independent assurance. Corporate Responsibility Obtained from the organizations website Woodside.com 2016, Woodside Private Limited achieved 37% and 10% improvement in personal safety performance for the year 2014 and 2015 respectively. In 2014, Woodside has a zero-tolerance approach to fraud and they also have financial transparency as they follow the strategy of implementing the Extractive Industries Transparency Initiative (EITI) work and after that, EITI has become the international standard for improved transparency. The concerned organization also implements its Security Operating Standard to protect their stakeholders. Moreover, Bashir et al. (2016) highlights that in 2015, WPL also works for the identifications issues to enhance their corporate responsibility. These issues are a loss of containment through an oil spill as the release of hydrocarbons is low in the context of prevention of risk in pipeline integrity and thus plans for additional piping repairs in 2015 and equipment removal in2016. In addition to that, they a lso improve their health and safety regulation for their employees from severe damage like choking and explosion. In 2014, NAB had invested over $8 million for connecting the customers of Melbourne and make them aware of the benefits of financial planning and encouraging them to invest in microfinance and formulated 145,000 microfinance products for the betterment of the more than 335,000 Australians (Nab.com.au 2016). On the other hand, in 2015, they have implemented programs for health and wellbeing, education, environmental products and services and accessibility action plan. They provide mental health training guidelines for employees and for customers who have life insuranceto raise mental health awareness in the context of health (Bouvain et al. 2013). Moreover, in the context of education, a program called $20 Boss is implemented where students who can present innovative thinking and entrepreneurship, they are offered $20 each and through hands-on experience for planning, budgeting and marketing so that they can also get the opportunity for their better ability(Nab.com.au 2016). Sustainability According to the sustainability of the year 2014, Woodside Petroleum Limited (WPL) provides a structured governance framework that discloses their strategic sustainability management. The concerned organization takes initiatives for reducing the greenhouse gas emission and maintains safety records. Moreover, in the year, the sustainability also values the people and safety, society, economic and environment. In 2015, Woodside carried out its Oil Spill Preparedness Improvement Project and 400 people were trained for spill response, 35 Oil spill response exercises through implementing 90 improvement actions (Kaiser2013). Moreover, in 2014, they take initiatives for reducing its flaring intensity that was 14.2 t/k that became 9.2t/kt, result in a reduction of 900,000 tonnes of greenhouse gasses and in 2015 Woodside target to reduce it up to 9 t/kt (Woodside.com 2016). Image 1: Sustainability of WPL (Source: Woodside.com 2016) Moreover, NAB, have the same environmental sustainability for 2014-2016 intends for 5%reduction in stationary energyconsumption and 5%reduction in GHG emissions [tCO2e]absolute reduction. In addition to that, they also made 5%reduction in water consumption [kL] absolute reduction and all these factors are an illustration of their carbon risk disclosures (Nab.com.au 2016). Conclusion The two organizations Woodside Private Limited and National Australia Bank are f4rom different field yet follow same strategic management system. The former organization is closely related to the environment and hence improves their productivity by put less impact on the environments by following the safety regular strictly comparative to NAB which is a financial institution. They incorporate sustainability through less use of natural resources like papers and emphasize more on the job creation and education to the community children. 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