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Bsc415 Unit 10.2 Group Assignment

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BSCL415-T102 Nancy, Sylvia, Flora and Tony 10.2 Group Assignment Our company has a contract with the United States government to sell at least 50 million barrels of crude oil at 55 dollars for each. But now the price is above 60 dollars each barrel because Russia, OPEC, Iraq and Iran manipulated the output of oil. According to the schedule of contract, we should deliver 5 million barrels each month to the United States. We can produce 5 million barrels every day in Texas but we want to open more new wells so that we can increase output to 6-7 million barrels every day in the next six months. Unfortunately, terrorists captured one of our oil platforms and tankers can not take oil. Although we can find FOB Saudi Arabia which can sell up to 3million …show more content…

It can produce 10 million barrels on average each day. Thus, it is a good idea to choose Russia (Workman, 2016). In this 3 months, we also can improve our technology to increase yield of crude oil. This is very helpful after we get back our oil platform. Because we must increase yield of crude oil to make up for the loss. In addition, we spent 5 million dollars to Mexican drug cartel mercenaries. We also should gain these 5 million dollars with high yield of crude oil. Thus, this 3 months, we not only should find a good manufacture of crude oil, but also should improve our technology so that we can make profits after we get back our oil …show more content…

In order to ensure a reduction in the impact of rising crude oil prices on our company, we will take several actions to ensure that the impact of crude oil prices will not be more affected. First, we will raise the selling price by a small amount to compensate for the loss of government contracts. By raising the price to make up for the losses caused by the financial. Of course, this method has a certain risk, because if the increase is too large, the buyer may not buy from us here, so this can only micro-adjustment, can not improve too much. Second, we will need to control costs, starting from most places to ensure that can make up for financial shortfalls. Third, we will communicate with customers, such as we will take a range range of price fluctuations, and customers that will not exceed the range will not fall out, so that customers have a psychological bottom line. Thus ensuring that traffic will not lose. Fourth, we will be a large sum of money and bank loans, this is a last resort. Not to the last minute try not to use, although the reality may not be ideal. We can increase production in this way, and when prices fall, we can hedge, so that when prices rise, can produce more revenue to

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