1.      Introduction:

The entire report will be focusing on the view generated by the perspectives as a chief executive of BP. The paper will be focusing on the theoretical aspects and application of knowledge regarding megaproject management. The selected megaproject is about a sophisticated business firm for the investment purposes in Turkmenistan. Different strategies and the use of theoretical perspectives will be developing the understanding and knowledge about optimum profitability. Various considerations will be discussed as per the demands of the business of oil firm.

2.      Background:

The paper will focus on the location of the new business firm based on an oil industry in Turkmenistan. Industrial development has been a significant part of the globe, and rapid progression has been made for the success of the oil industry. In this era of quick succession and industrial development, there is a need to introduce new oil ventures in the market that will be working for the enhanced production of the globe. (Konarzewska, 2018). The selected country has a strong economy and a rapid growth rate. Oil industry can contribute to the development of the economy. Having a look in the past few years, it was evident that the oil industry has been showing significant growth. Still, the natural resources are showing depletion, so considering these factors, the oil industry needs to get invested or grow the business firm rapidly. The chemical industry requires more significant investment to make the business sustainable and productive. Oil industry in Turkmenistan needs more substantial investment for enhancing the business firm and for standing in this era of competition. Industrial development is rapidly growing day by day, and there is a need to improve the chances for potential success and progression. Increase in global policies and economic development requires acute and strategic analysis of every business aspect. As per the amount of the previous record of crude oil extracted per day is about 179B thousand barrels per day in the year 2008. This contributes to a higher level of enhancing the economy as well as the potential success by an approximation of a 6.5% rise. (Hu et al., 2013)

3.      Aims and objectives

The report revolves around various aims and objectives, which need to be achieved. The goals and objectives are as follows:

1. The main aim of the paper is to highlight a detailed discussion and prospect that is required to invest in the oil; firm at Turkmenistan. (Konarzewska, 2018)
2. Identification and evaluation of the management strategies, theoretical perspectives, ad the methodologies required for project management. It will help enhance the possibility to identify issues that might impact on the counteractions in the new business firm.
3. The objective is to put light on the CSFs for the ventures.

4.      Management principles for the programme:

 Understanding the management principles is highly essential to critically analyze the importance and the factors that are related to the mega project. The program management will be revolving around the investment and venture that is required. So, for considering every aspect understanding of management principles is highly essential. Programme is defined as the set of predesigned activities that are necessary for the establishment of the new firm in the as per the goals and objectives of the organization. As a BP, the main focus is to consider the profit margin by the investment that will be implemented in the oil industry of Turkmenistan. BP in the given business firm will not be focusing on a single firm, but rather than this it will be focusing on different perspectives that are required for the success of the whole venture and the industry itself. So, for achieving the aims and objectives a detailed market analysis and research is needed, which includes risk analysis, risk management, management perspectives, SCM, and the insurance. The given strategies will be enhancing the chances of the risk management and will decrease the possibility of the business downfall. The economy is not that much reliable, which means that the organization must be dealing with the functional operation of the entire business rather than that of a single firm. ( Konarzewska, 2018)

5.      Required key principles:

Different fundamental principles are required for the establishment of the oil industry in Turkmenistan, which are listed below:

Principle of management:

Principle of management is the base to start up with the oil industry, as it will be working for the progression and success of the oil industry. The principle of management is the most crucial aspect of business success as well as the progress of the new oil industry. Management focuses on the achievement of long term as well as the short term goals of the organization. It includes achievement and development of different milestones. Management aspect will define the project in a precise and well established manner.

Principle of financial management:

Financial management is for the sake of dealing with the business needs of the program. The financial needs involve profit and loss percentage along with the r3equired investment to start up with the program as the project is not a standalone project so all the related perspectives will be highlighted. Principle of financial management requires a detailed financial analysis to deal with the requirements of the project. It includes execution strategies and the involvement of different stakeholders in the mega project. Focus will also be on the standards of engagement. (Raimondi, 2019)

Infrastructure of the organization’s megaproject:

Consideration of the right environment and the suitable business is highly essential for the progression and sustainability of the entire business firm. Infrastructure requires proper planning, succession, as well as the involvement of various strategies. It includes several milestones like timescale, resources, and the placement that will be beneficial for the entire programme. It will help measure the accountability, sustainability, and business objectives that are required to be achieved. (Radujkovi? & Sjekavica, 2017)

Principle of governance:

The completion of the mega project cannot be possible without assigning the roles and responsibility to the ones who are involved in the progression of the business environment. Governance will be enhancing the accountability as well as the sustainability required for making the project successful. Principle of management will function to define the responsibilities of the designated programme office. So, for this purpose, proper governing strategies must be implemented for achieving the specific deliverables of the project. (Radujkovi? & Sjekavica, 2017)

6.      Optimum bias:

Optimism is highly required for enhancing the sustainability and the progression of the reliability of the business firm. Optimism is to deal with the possible harm and risk that might be caused in the success of the project, which is about to be accomplished. Optimum bias will be focusing on the progression of the project by considering the factors that might harm the project or make it reach towards downfall. It is highly essential to consider every aspect of the organization which might impact on the project. The oil industry project of Turkmenistan is a higher step to enhance the success and progression towards the establishment and growth of the international economy. (Xue et al., 2019). Also, the progress and sustainability depend significantly on the infrastructure. So, the investment needs to be critically analyzed, focusing on all the relevant factors, and the development of the market. All the possible biased decisions will help in a better analysis of every aspect of the business environment. For pushing the organization towards success, it is highly essential to consider every aspect of the business firm, such as the conditions that are occurring in COVID 19. ( Konarzewska, 2018). The pandemic attack is imposing many challenges to the business firm, so the need is to analyze every aspect of the business firm in a well managed way. Some conditions might impact on the organization drastically. Hence, the need is to consider the possibility of the outbreak of the virus that might occur in the coming years as well. Every sign and every aspect of the business needs to be highlighted. For this purpose, different business sectors can also be analyzed for the progression and the success of the project. Just steps and strategic direction can impose significant challenges to the oil industry in Turkmenistan. (Raimondi, 2019)

7.      Supply chain management:

Supply chain management is an essential part of managing the project and for achieving the milestones, which are required for enhancing the success of the project. Supply chain management is a crucial part of managing the resources ad establishment of the profit cost. Supply chain management is defined as the supply of different goods and services to one organization or the other, which is related to a specific project. It occurs in the case of joint ventures. So, for enhancing the workplace, market procurement, and market placement, consideration of supply chain management is a must. (Sukati et al., 2012)

Strategic procurement:

It is one of those principles of supply chain management that is highly essential to apply the related laws that are required for the progression and success of the project. Strategic procurement identifies the functional areas of the organization that needs to be established in maintaining a sustainable business firm. It promotes the procurement process that is required for the entire segment. Strategic procurement promotes the establishment and the success of the oil industry. The focus is to enhance the profitability and the enhanced production and profitability of the crude oil industry. It also includes the transference of the raw material that will be required for the establishment and progress of the business firm. However, it is not involved in the duty of BP as other organizations, and related stakeholders will be involved in this aspect. Additional expertise will be included in the entire process for moving the venture towards a profitable and positive direction. (Radujkovi? & Sjekavica, 2017)

Strategic purchasing:

As the name suggests, the strategic purchase will be focusing on the control and monitor of the purchase decisions that are required for making the project successful as well as financially stable. (Mottaeva, 2018). Investment involves third parties and the stakeholders needed for the establishment of the suitable procedures. Third parties will be included in the entire process to enhance the strategic acquisition of the raw materials and the resources to start up with the initial process. BP of Turkmenistan needs to focus on these initial steps. The decisions of purchase make the organization is highly essential to determine opportunities required for the establishment of the capability of the organization. ( Konarzewska, 2018). This aspect of supply chain management is the foremost thing to deal with the redundancies and delays of the organization. It does not underlie in the duty of BO but rather than this SCM is also involved in dealing with the critical success and the achievement and monitoring of long term goals. It will also be making the organization to go inflow. (Sukati et al., 2012)

8.      Strategic risk management:

Risk management is an essential part of the organization for making it successful and for helping the organization to achieve the long term goals and the relative milestones. Strategic risk management is a crucial part of the organization that needs to be implemented in the internal environment of the organization to manage the risk situation and for the reduction in the possibility of risks. Risk management promotes control, monitoring, and the mitigation of the risk situations. It will be making the Turkmenistan oil industry move towards the positive functioning and to make the organization work swiftly. Understanding and strategic risk analysis of the entire industry is highly essential that is foremost for the success of the whole project. (Mottaeva, 2018). The possibility of every risk must be analyzed well in all the possible aspects, along with the mitigation plan. The mitigation plan will help in dealing with the possibility of harm that might impact on the organization. Risk situations might be problematic for the entire business firm unless it is not removed entirely from the organization. So, there is a need to deal with the risky situations with an efficient mitigation plan which will be finishing the risk situation of the organization of the Turkmenistan oil industry. (Xue et al., 2019)

Identification of risk:

The needs are to identify every risk whether I am about the COVID 19 situation, or about the financial or managerial issues. For this purpose, different analysis must be a part of the entire organization. The section will be highlighting about the possible risks that might impact on the organization negatively. So, the potential risks in the firm are as follows:

1. Time scale is a business risk that might impact the oil industry firm; however, several steps can control the risky situation. (Xue et al., 2019)
2. As the focus is on the investment and the financial management, so the cost shortage is also an economic control. But the involvement of various stakeholders can control it. (Amineh & Driel, 2018)
3. Political risks and the risky health situation can impact mainly on the organization, and these situations are uncontrollable.
4. If in any case a stakeholder back out, the organization will be facing a financial challenge, and this cannot be controlled.
5. Lack of skill and the health hazards of the employees is also very challenging, but it can be controlled if adequately monitored.
6. World has to face an economic crisis that might case the business risk and is uncontrollable. (Lele, 2012)

Mitigation plan:

Table no: 01 risk mitigation plans and the possibility of risks in percentage

(STUDENT’S CREATION)

9.      Sustainability:

Considering the functional operations of BP, sustainability is the foremost thing, and it is included in the primary functions. However, the factors of sustainability in the organization foresee to be slim. It is due to the current conditions of the organization and the management plan. Looking on the current terms of the economic policies and having a look at the pandemic situation, the investment will be made considering the suitability and evaluation on a JV basis. But the venture must not be all alone BP must be focusing on the diversified aspects for enhancing the chances of the organization’s success. For improving the chances of premium level success and for ensuring the organization’s success sustainability is an essential level to be considered in eh entire venture. (Lele, 2012)

10.  Impact of COVID 19:

COVID 19 has impacted on the global economy, and it might affect the organization negatively. As per the functions of BP, it must be evaluating multiple and diverse aspects rather than a single one. So, it is highly essential to focus on the impact of coronavirus on global economies along with the strategies they have implemented. COVID 19 does not only impact on a single economy rather than this it has implications on the global economy with a decreased of gross domestic production and the profitability of the business firms. The virus can impact on the organization broadly, and the situation of investment might aggravate. (Amineh & Driel, 2018)

The possibility lies in the fact that the COVID 19 situation might come in the way of the organization’s progression. So, to deal with these aftereffects, the need is to define an appropriate mitigation plan and establishment of the project as per the industrial sequence. As a BP, the primary duty is to provide the employees with a safer environment. Sanitizers and masks must be a part of the organization. The focus must be on the capital investment and current condition of the organization. The joint venture will serve as a plus point to enhance the chances of success in the oil industry of Turkmenistan. This will be future of the organization secure. (Hu et al., 2013)

11.  Recommendations:

Following are the recommendation which will be making the organization successful and sustainable:

1. Different analysis tools must be used to analyze the internal and the external environment.
2. Multiple project management strategies must be a part of the organization. It will help in mitigation strategies and dealing with risky situations.
   The critical success of the organization must be analyzed along with alternative placement methodologies. (Hu et al., 2013)
3. Market analysis must also be done, as it will help in dealing with the aftereffects of COVID 19. It will be making the organization sustainable.
4. Financial analysis must be done along with the involvement of various stakeholders. It will help deal with the fund’s shortage.
5. Proper procurement planning and monitoring must be a part of the organization. It will help deal with the long term achievement of milestones.
6. BP must be working as a joint venture to deal with all possible risky situations. It will deal with the redundancies and will help in minimizing the loss.

12.  Conclusion:

For the establishment and success of the organization of the oil industry, the focus must be on all the operational, functional and responsibilities as BP. Production must be considering all the relevant facts and figures with the help of market analysis. Fuel consumption and crude oil demand along will the resource management will help in better functional operation of the market. Lack of natural resources enhance the requirement for oil in industry, and it will be helping to make the organization successful. (Amineh & Driel, 2018)

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