Integrating Planning Approaches

Topics: Transport, Shipping, Ship Pages: 7 (2800 words) Published: October 26, 2014

For centuries, shipping is the backbone of trade and transport, be it cargo trading or in older times long distance human transport. Lately, it can be rightly said, shipping industry has become the most important factor attributing to globalization. Following topics have been covered in this paper:

Identification of the part of shipping industry I am working in Identification of key drivers of change for maritime industry using PESTLE analysis method. Key uncertainties identified and mapped as per their importance Two critical uncertainties for industry identified

Scenarios created to capture two critical uncertainties
Strategic issues for my company based upon these scenarios
Five force analysis of Shipping industry
Porter’s five force analysis of predicted four scenarios
Strategies for my company for these four scenarios
Industry identification
Shipping industry being a vast industry includes a number of businesses associated directly or indirectly to core business. These businesses include:
Technical management
Audits, etcShipping companies can further be subdivided as per the type of vessels owned or the type of trade the company is into viz.: Oil
General cargo
Car carriers
Bulk carriers
Being associated with an oil major shipping company (BP Shipping), I would define my industry as an oil and gas shipping company with owner ship of its vessels as well as in-house management of its vessels in all respects i.e., technical and manning. KEY DRIVERS OF CHANGE FOR SHIPPING INDUSTRY

Drivers of change in the transport system fit within six major categories, which are policy, demography & society, energy & environment, technology, economics and legal & finance. There are various methods to analyze these internal and external factors that affect the industry, e.g., PEST, SWOT, SLEPT, STEEPLE, STEER etc. Here I am using PESTLE methodology to access these key drivers of change for shipping industry. PESTLE analysis of shipping industry

Political factors
Infrastructure development
Better Infrastructure in terms of port facilities reduces the turnaround times of vessels and hence increases the profitability of shipping companies. Countries like China, which have high energy and material demand, is investing heavily in port infrastructure development which in turn is benefitting the shipping industry. War and piracy

War in OPEC countries prevents oil trade around the world. Also war brings down the economy of the countries involved. Piracy in oceans makes certain routes less profitable and risky for shipping companies. Thus war and piracy have negative effect on overall shipping industry. Geo-political issues

Stricter regulations and policies pertaining to safety, security and environment, for vessels registered or plying in different countries make profitability on the lower side. Restrictions imposed by different countries on trading

Restrictions imposed by some countries on free trade have definite negative impact on global trade and shipping industry. Economic factors
Global economic scenario (growth or recession)
Economic growth globally or of individual nations has direct impact on the mobility of energy and material. Growth in Asian countries particularly China and India is currently fuelling the world economic growth and hence shipping industry. Shipping trade cycles

Shipping market cycles create the environment in which weak shipping companies are forced out, leaving the strong ones to survive and prosper, and fostering an efficient shipping business. Social factors

Population growth
Population growth is expected to continue in many parts of the world until mid-21st century, which in turn shall increase global consumption and hence benefit shipping industry by boosting trade across the globe. Aging population

Western Europe, Northern America and Japan are said to have rapid ageing population which shall bring...
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