Oil Business - Advantages and Disadvantages Essay

Oil Business - Advantages and Disadvantages - Essay Example Typically, the entire oil business is divided into three main parts which are the upstream, midstream, and downstream sector. The upstream sector is concerned with the location and extraction of oil from various parts of the world while the midstream is concerned with the processing of extracted oil to marketable products as well as the transportation of such products. Both the upstream and the midstream sectors are concentrated only in certain parts of the world such as Russia or the Middle East while the distribution industry which is part of the downstream sector is spread throughout the world (Gary & Handwerk, 1994). Therefore, any changes in the global market of oil can either favorable or adversely affect the distribution industry significantly. The unpredictability of the global market can also lead to many changes inside of the distribution industry, and the rising cost of fuel has only put a strain on the already straining oil distribution industry.One of the industryâ€℠¢s strengths is that it is among the first in the line of industries affected by oil prices and therefore it can suffer minimally as compared to other industries when it comes to changes in oil prices. Because it is the first hit by the changes, it is also the first that can adapt and the first to be able to quickly overcome the changes to try to lessen losses based on the change in oil prices. Where other industries are affected conversely through the chain of order and sometimes have little room to do anything about the price of oil, the gas distribution is hit first and therefore can adapt most quickly with the other industries adapting around it.When less oil is mined and processed in the international market, independent distributors would have to compete to obtain what is available. This sort of competition can drive smaller distributors out of business. And for those smaller distributors, this can cause problems, and may at first look like an outright negative effect of gas p rices, and a negative effect of the whole of the industry. But this negative opportunity for the smaller firms soon opens up a larger one for the bigger firms, which can then flex their economic muscle a little bit. It is this versatility and adaptability that helps the oil distribution industry to survive at hard times when most other industries would fold upon themselves and crumble.

IT Assignment Example | Topics and Well Written Essays - 250 words - 1

IT - Assignment Example The basic formats and practices can be duplicated however on the other hand to generalize and say IT no longer enables companies to create a competitive advantage in the marketplace was unsupported. Information technology is an evolving science its full potential still unknown. However with a better understanding of the innovative uses of the science companies have the potential of creating an advantage in the marketplace. The creation and determinant of the effective use of IT is contingent upon a myriad of factors, how a company implements the use of IT in its organizational structure and internal practices, how IT is used in a company’s external marketing campaigns, and whether the value of IT is understood by the leaders and managers as it relates to distinguishing sustainability. Corporations such as Wal-Mart, Hewlett-Packard, United Airlines and other recognizable firms provide the evidence that IT does enable companies to create a competitive advantage. Each of the companies listed has consistently used information technology to distinguish itself in the marketplace. Whereas other firms have implemented similar practices, the firms listed continue to set themselves apart by using IT in innovative and creative ways. An image of IT as a rigid format is erroneous to the contrary information technology presents unlimited possibilities. Leaders within an organization have the responsibility and duty to investigate the application and adaptability of IT practices for the maximum usage. By continuing to develop and implement IT strategies companies can position themselves as leaders within their respective industries. The lack of knowledge of the potential benefits of IT and its application within the organization as well as the benefits in the marketplace can make IT appear to be ineffective and a mundane costly endeavor (Parsons, 1984; Mata, Fuerst, & Bailey, 1995). Business leaders