How to maximize return on investment, surveillance of risk and mitigate risk for an oil sector equipment supplier
Master thesis
Permanent lenke
http://hdl.handle.net/11250/301958Utgivelsesdato
2015-06Metadata
Vis full innførselSamlinger
- Studentoppgaver (TN-ISØP) [1451]
Sammendrag
In this thesis an oil & gas equipment supplier’s business risk is examined in order to
obtain information that can be used as an injection by the management to achieve the
highest Return on Investment (ROI) possible. The strategic risk is analyzed and
recommendations for managing the risk are suggested in relation to the specific
business case. This thesis also aims to qualitatively assess risk involved in increasing
the market value by combining decision-making tools and risk theory.
In addition to assessing the risk related to increasing the business case’ competitive
advantage, this thesis is also aimed at supporting the decision-makers in their strategic
planning towards a higher market value with a model that will aid the strategy
development.
The Strategic Risk Approach (SRA) is used as the basis for this thesis’ methodology and
is accompanied with the Analytical Hierarchy Process (AHP) and risk theory to provide a
view on the business risk related to an equipment supplier in Oil & Gas through a
possibilistic approach. Some of the business case’s employees was gathered from
different departments to participate in the exercise of relative prioritization of the
intangible assets. The same group responded to two surveys related to the SWOT
analysis, were opportunities and threats to the competitive advantage and their
characteristics were to be ranked in terms of risk.
This thesis resulted in a business risk approach which the business case may use to
minimize, monitor and review risk related to maximizing the ROI. The intangible assets
where prioritized and acted as the main objectives in the further examination of the firms
characteristics. A list of opportunities and threats were established and categorized
through a three-dimensional system according to the individual findings’ rankings on
likelihood of occurring, manageability and impact on competitive advantage through the
first survey. Recommended measures to be implemented or conducted in order to
enhance the opportunities and reduce the threats were found based upon the
characteristics of the firm.
These measures were rated in the second survey in terms of
their relative impact on the threat or opportunity’s likelihood of occurring. Through the
SRA-approach and risk analysis internal and external indicators were identified and
characterized on their impact on the relative prioritization of the intangible assets. The
indicators are suggested to be kept under surveillance by the business case as they
may provide useful information on which intangible assets are the most important under
different circumstances.
Beskrivelse
Master's thesis in Industrial economics