Kosmos Energy Case Study

FINAL PROJECT PROPOSAL

Team :  Beiling, Kyei, Stanek, Turner

Topic:  We choose an organisation that ran into difficulties because of cultural differences

Organisation: Kosmos Energy

Situation: Kosmos Energy is an American international oil company founded, and based in Dallas, Texas. Kosmos developed Ghana’s first commercial oil field. The company’s success was comprised by political instabilities, cultural differences, and accusations of corruption. They currently have offices in Ghana, Mauritania, Senegal, and Suriname.

We believe there are applications to all the primary topics discussed up to this point in class, and plenty of applications for future topics.

                                            WEEK 7 : DECISION MAKING

INTRO

The intertwining nature of property, energy, government, business, millitants and vulnerable people was an exciting theme  which boils us down to the documentary “Big Men”.

This documentary manages to explore: ambition, culture, greed amongst others, therefore to view international relationships, develop in real time, the film maker targets crucial access to the key players involved.

These key players are the American corporate interests abroad thus Kosmos Energy, the private organisation groups, saboteurs in Nigeria, to elected officials both in Ghana and Nigeria.

Inadvertently this documentary stands out for its even-keeled presentation of the above key players in their Decision-making and leadership change/skills process.

Decision Making

“ Any organization can improve the speed and quality of its decisions by paying more attention to what its deciding” “Mckinsey Quarterly”. This great step is mostly the most daring times for decision markers, with improvement in our generation we find advanced analytics, intelligent algorithms providing necessary steps for organizations to make decisions.

Here is a typical case study for Kosmos Energy where they had to navigate through cultural difference and political change in Ghana. This decision was made successful using the rational approach by being systematic in its decision making process and moving from exploring the problem to a more converging mode. With the help of the EO group from Ghana Kosmos energy was able to define the problem with regards to they needing them as partners to bring their dreams to light with Ghana being part of the Oil producing Country. Through brain strorming they found a resourceful necessity to be part of this deal to maximise their profit. According to the documentary Kosmos Energy saw this as a great portfolio for their company hence the reason to be involved in this massive deal.

In applying rationality in terms of decision making the documentary ‘Big Men” dwells on exploring the problem that Nigeria had to face and still facing when it comes to oil. The entire structure has been so corroded by fraud and exploitation that vandalism seem to be the final solution to those left unaided by the wealth flowing into the country. This according to officials was not going to happen in Ghana since Ghanaians wanted to ensure that their government and most importantly their citizens,tangibly feel the benefit of what will be a money generating resources for years to come.

During the potical change in 2008 with the opposition party coming into power what Kosmos Energy  feared the most was getting their POD( plan of development) approved.This was very challenging for them since they did not know what the new political party had in store for them,their document was half baked hence the uncertatinty.

The worst happened when the new party when parties involved had to go through investigations for fraud and bribery in the Ghanaian government.The Ghana government wanted Kosmos to sell its shares to GNPC (Ghana National Petroleum Corporation).This stride was a very sensitive issue.

Kosmos Energy seeing the intensity of this used the selective ratio analysis in making a strategic decision .This approach made Kosmos Energy have more options hence the tendency to have more optimization in decision making. This decision is clearly evident in Kosmos Energy selling its shares to Exxon Mobil rather than GNPC.

Although this deal was erupted in 2010 by Exxon Mobil ,Kosmos used the decision making matrix in diverting its shares to Exxon Mobil.They felt that the company had the capability of handling the challenges with which the oil industry came with.With the circumstances happening during that intensity they were forced to make this decision by looking at the positives and effects of the situation.