Egoli is a company that is involved in the oil and gas industry. Its main operations involve upstream activities. As consultants the objective of the following report is to highlight certain issues and provide solutions to which these issues can be resolved. The fields that will be discussed includes: entrepreneurship and business, business strategy, business risk and fraud and IT in businesses. The report is prioritized and may not include every issue or problem.
Business and Entrepreneurship
Executive summary
Egoli is a public company in an oil and gas industry and it was founded by Oliver Penn. It was founded in 2005 and it is located in United Kingdom. Egoli was formed with the purpose of identifying potential oil and gas fields that could …show more content…
There are mainly two types of fraud: management fraud and employee fraud. Management fraud is the misstating of financial information or ‘fraudulent financial reporting’. An example of management fraud is management of EGOLI granting the external auditor’s false financial information to prevent the detection of possible losses experienced by the entity, for instance. There are four types of employee fraud: embezzlement, internal theft, payoffs and kickbacks and skimming. Embezzlement is the illegal use of funds normally performed by the one held responsible for the funds; possibly a finance executive at EGOLI. Internal theft could be done by employees, stealing oil and gas to receive income on the side for their own benefit – employees would probably be tempted to do such as oil and gas is in demand and they would make a good amount of money selling to those in desperate need. Payoffs and kickbacks could be granted to internal auditors of EGOLI so they depict what the management wants depicted, preventing any unpleasant information coming out. Skimming cannot be easily committed in the oil and gas industry as the revenue involved is very large due to customers buying in bulk and the oil and gas costing a great deal and missing or outstanding revenue would be immediately …show more content…
Appointing a systems steering committee to direct operations and do financing, meanwhile also collecting feedback from all users involved in directly using these IT systems.
2. Industry, competency analysis which includes factors such as: driving forces in the oil and gas industry such as actions made by major companies. Use of a matrix analysis, Egolis market share is high (revenue increased by 47%) while market growth rate is good hence Egoli would be a star on the growth-share matrix.
3. Feasibility studies regarding infrastructure, economical, legal, operational and schedule would have to be undertaken. Several directors such as the director of legal affairs (Jason Oldman) and the CFO would have to be involved. The cost benefit analysis would also have to be undertaken; in this case the benefits would exceed costs in the long run as management would be improved while aspects such as financial reporting will be more efficient and enhanced. Although the upfront costs are high, in the long run only maintenance will be the recurring costs.
Other possible
Business and Entrepreneurship
Executive summary
Egoli is a public company in an oil and gas industry and it was founded by Oliver Penn. It was founded in 2005 and it is located in United Kingdom. Egoli was formed with the purpose of identifying potential oil and gas fields that could …show more content…
There are mainly two types of fraud: management fraud and employee fraud. Management fraud is the misstating of financial information or ‘fraudulent financial reporting’. An example of management fraud is management of EGOLI granting the external auditor’s false financial information to prevent the detection of possible losses experienced by the entity, for instance. There are four types of employee fraud: embezzlement, internal theft, payoffs and kickbacks and skimming. Embezzlement is the illegal use of funds normally performed by the one held responsible for the funds; possibly a finance executive at EGOLI. Internal theft could be done by employees, stealing oil and gas to receive income on the side for their own benefit – employees would probably be tempted to do such as oil and gas is in demand and they would make a good amount of money selling to those in desperate need. Payoffs and kickbacks could be granted to internal auditors of EGOLI so they depict what the management wants depicted, preventing any unpleasant information coming out. Skimming cannot be easily committed in the oil and gas industry as the revenue involved is very large due to customers buying in bulk and the oil and gas costing a great deal and missing or outstanding revenue would be immediately …show more content…
Appointing a systems steering committee to direct operations and do financing, meanwhile also collecting feedback from all users involved in directly using these IT systems.
2. Industry, competency analysis which includes factors such as: driving forces in the oil and gas industry such as actions made by major companies. Use of a matrix analysis, Egolis market share is high (revenue increased by 47%) while market growth rate is good hence Egoli would be a star on the growth-share matrix.
3. Feasibility studies regarding infrastructure, economical, legal, operational and schedule would have to be undertaken. Several directors such as the director of legal affairs (Jason Oldman) and the CFO would have to be involved. The cost benefit analysis would also have to be undertaken; in this case the benefits would exceed costs in the long run as management would be improved while aspects such as financial reporting will be more efficient and enhanced. Although the upfront costs are high, in the long run only maintenance will be the recurring costs.
Other possible