Business Development Strategies For Oil-And-Gas Companies And Social Policies Of Eastern Siberia

Abstract

The purpose of the efficient development of municipal social areas is to ensure a stable growth of the gross regional product (economic growth) due to satisfaction of social needs of the population of oil and gas extraction areas. Development of the oil and gas industry in the Eastern Siberia is one of the priorities of the Russian energy strategy. To identify an efficient business development strategy, SWOT analysis and analysis of Michael Porter’s five competitive forces industry are used. The first method aims to assess internal potential of the company and allows identification of development areas by comparing competitive environment (external threats, favorable possibilities, internal weaknesses, and advantages). SWOT-based strategy development involves several stages. To analyze activities of oil and gas producing companies of the Eastern Siberia, three leading enterprises were selected: a private oil company INK; a private vertically integrated oil company JSC Surgutneftegaz; a partially government-owned company VCNG. The article deals with methods applied to increase municipal and regional financial resources required for satisfying social needs of the population. Strategic issues of economic survival and prosperity of oil and gas producing companies and population of the territories should be solved. It can be possible due to development of markets and diversification of activities of enterprises (Ermilov et al, 1998). Differentiation of approaches to assessing the efficiency of social programs helps to identify possible changes of the component in the coordination of economic and social policies when introducing education, health care, non-for-profit entrepreneurship in northern territories with low-income budgets.