The Environment of Management Task environment include factors arising from the external environment of a company and affects its performance and ability to achieve the set goals and objectives. Examples are; competitors, suppliers, consumers, and labor supply among others (Daft, Richard & Dorothy, 81). In the business sector, various companies have different task environments that affect their performances and achievement of their goals.
For Equipment and Services production for the Oil and Gas Industry, National Oil Well Varco Inc have these important task environment elements. One is competition; other companies like Schlumberger and Halliburton also operate in the same industry producing almost similar products to the market. All their products are consumed by the same consumers making competition a great external factor in the task environment. It always keeps the company in check to produce more and quality equipments and services (Kew &John, 11). Customers demand products based on their quality making the companies compete in producing the best qualities. The better the quality, the higher the consumption rate, thus, more profit to the business (Slaton & Hunter, 321). To be efficient in their production quality is important leading to the next task environment that is resources.
Resources include skilled workers, raw materials, and finance. These factors must exist for efficient operation of the company in orders to produce quality services and equipments. Without them, the company cannot operate, and if they are limited, the level of production is reduced and the company can collapse.
The last important element in the task environment of the National Oil Well Varco Inc is the technology. It enhances smooth operations within the company and production of technical tools. Since most of its products are used by other firms like drilling companies, advanced technology is essential to producing efficient equipments and services. Technology also helps it keep up with the competition in the global market at large.
In the Oil Gas Drilling Industry, Diamond Offshore Drilling is one of the companies operating in that sector. Some of its task environments are similar to those of the National Oil Well Varco Inc. For example, it is faced with completion from other companies like, Noble Corp, and Ensco plc that also drill oil gas. Another similar critical task environment element is technology. For effective and efficient operation of the company, advanced technology is necessary. Its activities require sophisticated and advanced technology to drill quality oil gas and in good amounts, thus, affordable. It also helps the company to keep up with the competition from other companies in the industry since the cost of drilling is considered by the customers while bidding for contracts. In order to bid lowest, efficient technology is critical in minimizing the cost of operation and maximizing the amount of production. They also operate in the ocean with challenging environments that require advanced and sophisticated technology to achieve the desired results.
Customers are also essential elements in the task environment since their preferences dictate what amount and quality of products the company should produce. Some of these clients are oil companies that contract them to drill for them such as, ExxonMobil and Chevron (Plunketts Energy Industry Almanac, 15).
The difference in the task environment of the two companies above is some of the resources required. For instance, National Oil Well Varco Inc requires raw materials to manufacture equipments while Diamond Offshore Drilling Company does not need raw materials as resources. Instead, it uses their equipments or similar ones to drill oil gas. In terms of skilled labor as a resource, they both utilize it in their operations.
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Daft, Richard L, and Dorothy Marcic. Understanding Management. Australia: South-Western Cengage Learning, 2013. Print.
Kew, John, and John Stredwick. Business Environment: Managing in a Strategic Context. London: Chartered Inst. of Personnel and Development, 2005. Print.
Plunketts Energy Industry Almanac 2008: Energy Industry Market Research, Statistics, Trends & Leading Companies. Plunkett Research Ltd, 2007. Print.
Slaton, Hunter R. Vault Guide to the Top Manufacturing Employers. New York: Vault, Inc, 2006. Print.