The development of a strategic business plan to grow the mining and minerals division of Kellogg Brown & Root into Sub-Saharan Africa

Carvelas, Wray Anthony (1999-12)

Thesis (MBA (Business Management))--University of Stellenbosch, 1999.

Thesis

ENGLISH ABSTRACT: Globally the mining and minerals market is experiencing a decline. With this decline, focus is turning to Africa as an unexplored mineral wealth. In terms of global exploration expenditure, Africa is said to be experiencing the highest percentage growth of any other regional budget. The Halliburton company is reputed to be the premier source for the engineering and construction of refineries, chemical plants, and pipelines along with office buildings, infrastructure systems, government facilities, and much more. The South African office has recently established a mining and minerals division, which has experienced certain measures of success, however, a failure of the division appears to be the total lack of a significant growth strategy. This has resulted in the division becoming a one-client business. The Sub-Saharan market is characterised by unique challenges, which require a strong culture aligned with its market environment, strategic choice and distinctive competencies to be successful in the market. The purpose of this study project is primarily to make a contribution to the formulation of strategic direction in order to obtain practical implementation guidelines given the unique opportunities and challenges presented in this market. The formulation of the strategy for the mining and minerals business unit is achieved firstly be analysing the Sub-Saharan market, the dominant economic traits, and conducting a full industry and competitive analysis. Secondly, organisation situation analysis of Kellogg Brown & Root is conducted in order to assess the competitive positioning of the firm and distinct capabilities that the firm possesses, and those necessary for success in the market. This will include conducting an analysis of the internal strengths and weaknesses, of the company, and the external opportunities and threats facing the company. From the analyses conducted, strategic challenges are identified and suggestions are made to address these challenges. A strategic intent is proposed together with a mission statement, and a strategic and financial statement of objectives is developed. These statements of intent are not intended to prescribe to the firm and it's employees what the strategic approach should be, but to form the basis of further discussions and research and should not give way to misleading and unwarranted interpretations. The strategy formulated is superimposed onto the corporate strategy and no major discordance is evident. From the analyses conducted and strategy formulation process, suggestions are made that could provide manageable guidelines for the final implementation of the strategic business plan for the minerals division.

AFRIKAANSE OPSOMMING: Tans word 'n afname in die mynbou en minerale mark wêreldwyd ondervind. As gevolg van hierdie afname het die fokus na Afrika as 'n onverkende minerale rykdom verskuif. In terme van wêreldwye eksplorasie besteding, word beweer dat Afrika die hoogste persentasie groei ten opsigte van enige ander streeksbegroting ondervind. Die Halliburton maatskappy word beskou as 'n vername bron vir die ontwikkeling en konstruksie van raffinaderye, chemiese aanlegte, pyplyne, geassosieerde kantoor geboue, infrastrukture, regerings fasiliteite en vele meer. Die Suid Afrikaanse kantoor het onlangs 'n mynwese en minerale afdeling op die been gebring wat al 'n mate van sukses ondervind het. Dit wil egter voorkom asof 'n tekortkoming van die afdeling 'n gebrek aan 'n doelgerigte groei strategie is. Dit het tot gevolg gehad dat die afdeling tot 'n een-kliënt-saak verval het. Die Sub-Sahara mark word gekenmerk deur unieke uitdagings wat 'n sterk kultuur inlyn met die mark omgewing, strategiese keuses en relevante bevoegdhede verg om suksesvol in die mark te wees. Die hoofdoel van hierdie studie is om 'n bydrae te maak tot die formulering van 'n strategiese koers met die doel om praktiese implementerings riglyne daar te stel, met inagneming van die unieke geleenthede en uitdagings wat in die mark bestaan. Die formulering van 'n strategie vir die mynwese en minerale besigheidsektor word eerstens verkry deur 'n analise van die Sub-Sahara mark, dominerende ekonomiese eienskappe en 'n ontleding van die industriele en mededingende omgewing. Tweedens word 'n organisaie situasie analise van Kellogg Brown & Root uitgevoer om die kompeterings posisie, huidige kenmerkende bekwaamhede en die wat benodig word vir sukses in die mark, van die maatskappy vas te stel. Dit sluit 'n ontleding van die interne swak en sterk punte van die maatskappy, asook die eksterne geleenthede en bedreigings vir die maatskappy in. Vanuit hierdie analise word strategiese uitdagings geidentifiseer en word voorstelle gemaak om hierdie uitdagings aan te spreek. 'n Strategiese oogmerk, tesame met 'n doelwitstelling word voorgestel, en 'n strategiese en finansiele doelstelling word ontwikkel. Die doel van hierdie studie projek is nie om aan die maatskappy en sy werknemers 'n strategiese benadering voor te skryf nie, maar om die basis te vorm vir verdere bespreking en navorsing. Die studie moet nie aanleiding gee tot verkeerde en misleidende vertolkings nie. Die geformuleerde strategie is ook met die huidige korporatiewe strategie vergelyk en geen noemenswaardige verskille is ooglopend nie. Vanuit die analise en die strategiese formuleringsproses word praktiese riglyne voorgestel vir die implementering van die strategiese besigheidsplan vir die mynwese en minerale afdeling.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/4906
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