Siegfried Enterprise Management Business Cases

1. Auflage 2021
ISBN: 978-3-7534-7002-3
Verlag: BoD - Books on Demand
Format: EPUB
Kopierschutz: 6 - ePub Watermark

E-Book, Englisch, 180 Seiten

Enterprise Management Business Cases for Students and Entrepreneurs

Patrick Siegfried is Professor for Supply Chain Management and Logistics at the International School of Management (ISM) in Frankfurt a.M./Germany. He also holds a Guest Professorship for Entrepreneurship at the Szent István University in Gödöllö/Hungary. He has professional experience as a CEO of various logistics companies and as a commercial manager for an international distribution centre. His research focuses is on Strategic Management and Innovation Management in Startups

Autoren/Hrsg.

Siegfried, Patrick

Leseproben

MOL Group
Jowa, R.
1 Introduction MOL Plc., also commonly known as MOL Group, is a Hungarian multinational oil and gas company headquartered in Budapest, Hungary. Members of the MOL Group include the Croatia and Slovak formerly state-owned oil and gas companies, INA and Slovnaft. MOL is Hungary’s most profitable enterprise, with net profits of $1.1 billion in 2018. The company is the third most valuable company in Eastern Europe and placed 402 on the Fortune Global 500 list of the world’s largest companies in 2013, with an equal revenue to one-fifth of Hungary’s GDP at the time. 2 Company Presentation – MOL Group In this part, MOL Group will be introduced from many sides related to its type, size, and capacity, related history. Vision MOL Group keeps people moving ahead by discovering new ways of serving their energy needs better and creating value for generations to come. Mission Operating across and from Central Europe, MOL Group will systematically overcome all frontiers, inspired by its management and relying on its people’s expertise. Values Success and growth - moving ahead Courage and Decisiveness - to act without fear and overcome frontiers Teamwork and Partnership - together, leaving no one behind Expertise and responsibility - through more intelligent solutions Objectives MOL Group’s primary objective is to provide superior shareholder returns. It will achieve this by fully exploiting its market potential, implementing dynamic development and expansion strategies, and performing, where possible, further internal efficiency improvements. MOL also aims to triple its hydrocarbon production and double its sales of refined products by 2010. MOL: the leading regional integrated, independent oil and gas company Leading Group profitability among the highest in the sector Outstanding operational efficiency, highly competitive asset base Regional Leverage of favorable geographical position, strategic advantages, and skills. Optimized logistics: a successful combination of organic and acquisitive growth Integrated Balanced portfolio based on regional Downstream growth and the geographic expansion of Upstream activities. Optimization of synergies within the Group along the value chain from Exploration to core Petrochemicals Independent Oil and Gas company Delivering on the strategic plan. The strong track record on providing value through partnerships and infrastructure development. Further capital withdrawal from non-core assets to focus on core businesses 3 MOL Group’s Strategy “We successfully implemented our strategy set in 1999 and led the consolidation in the oil & gas industry in Central Eastern Europe. Our integrated Upstream–Downstream business model remains the basis of our operation. This business model has provided stability in the fluctuating external environment and is expected to continue doing so in the forthcoming 10-15 years.” However, our external environment is changing more rapidly than ever before, carrying the risk of decreasing fossil fuel demand in the long-term. At the same time, customer habits and needs are also rapidly changing. We have the capability, the financial means, and the professional know-how to use the momentum to leverage previous successes and build on the changing environment’s opportunities. Through the implementation of MOL Group 2030, we will deliver long-term growth and offer the financial community a best case” (MOLGroup, 2020). Below are some of the strategies: Cash Engines Cash generation through our integrated business model. The rise of chemicals Set up a new business line by driving an industrial transformation Growth Engines 30% of EBITDA contribution from consumer services including retail and services, and new demands and business lines The best choice MOL Group will be the choice of employees, customers, and investors Company overview MOL Group is a leading integrated Central & East European oil and gas corporation headquartered in Budapest, Hungary. It has operations in over 30 countries and employs 26,000 people worldwide. MOL’s exploration and production activities are supported by 80 years’ experience in the hydrocarbon field (MOLGROUP, 2020). Figure 1: Integrated Oil & Gas Company (MOLGROUP, 2020) Figure2: MOL Group at Glance (MOLGROUP, 2020) MOL Group is an oil and gas integrated company, which is very interesting, and this integration allowed the company to work in more than one sector. As a result, the company raises the Market Capitalization to USD 7 bil., operating in more than 30 countries worldwide, employing 26,000 employees from 47 different nationalities, 111 thousand barrels of oil produced per day, and about 1,900 service stations. It is not fair also to mention that MOL Group is in the first place when it comes to corporate responsibility, Sustainability, Corporate Governance Award from Budapest Stock Exchange, and other awards. Figure3: MOL Group ownership (MOLGROUP, 2020) Ownership Structure The company amounts to HUF 102,428,682,578 represented by 819,424,824 pieces registered ordinary shares of the series “A” with a par value of HUF 125 and 578 pieces registered ordinary shares of the series “C” with a par value of HUF 1,001 per piece registered voting preference share of the series “B” with a par value of HUF 1,000 that entitles the holder thereof to preferential rights as specified in the present Articles of Association. The "B" series share is owned by the Hungarian Government (MOLGROUP, 2020). Company History The company was founded on the 1st of October 1991, and by 1995, The first Romanian MOL filling station opens in Nagyszalonta. After that, the company was strong, and they were able to open the first Slovakian and Ukrainian MOL filling stations in 1996, which opened in Érsekújvár (SK), Párkány (SK), and Ungvár (UA), and that was the way of establishing the Foundation of MOL Slovenia flowing be establishing the Foundation of MOL Yemen in 1998 and Foundation of MOL Pakistan in 1999 (MOLGroup H. , 2020). Ancient origins, modern innovation Mankind has known about hydrocarbons, appearing on the earth’s surface in the form of accumulations; however, it was only thousands of years later that these minerals were systematically utilized. Industrial-scale production and consumption of crude oil, including its processing into various products, only emerged in the 19th century. The oil lamps The use of this revolutionary means of illumination spread swiftly throughout the world and required vast quantities of distilled crude oil. Demand grew fast as early as 1860. The internal combustion engine (ICE) This pioneering invention has played a critical role in the history of hydrocarbon production, processing, and consumption. Widespread adoption of ICS’s significantly increased demand for motor gasoline, gas oil, lubricants, and greases - a challenge the emerging refining sector had to meet. 4 Corporate Governance Figure4: MOL Group Organization (Corporate-Governance, 2020) MOL Hungarian Oil and Gas Public Limited Company (hereinafter: “MOL” or “Company”) has always been committed to implementing the highest standards of corporate governance structures and practices. This is concerning national expectations and the continually evolving and improving standards of good governance on an international level (Corporate-Governance, 2020). Fundamental Principles of operation The efficient integration of MOL Group comprises the successful orchestration of MOL Group-level Business and Functional Units and its member companies' operations. As a consequence, the MOL Group Governance and Regulation System is based on the following conditions and mandatory requirements: MOL Group is managed on an integrated, matrix governance model, supported by a process-based Regulation System Integrated management systems support the integrated matrix operation Overregulation must be avoided within the system, and centralized control of critical functions ensured The system must be flexible enough to enable MOL to extend it to embrace newly acquired companies The process-based Regulation System must support ERP (Enterprise Resource Planning) and other information systems related to operations All documentation of operating processes must be integrated into the Regulation System Corporate Governance Structure As the main decision-making body, the General Assembly enables shareholders to make decisions on material concerning the everyday operations of the MOL Group and to exercise governance and control rights. The Board of Directors, elected by the owners, is responsible to shareholders for implementing integrated governance and operates committees to increase the efficiency of the Board’s operations and provide the appropriate expert background for...