Product mix-oil /gas:
The existing product mix is aimed at ensuring that the Godiva Petroleum (GP) organization of Tanzania is not limited to the main product which is petroleum. A wide range of products will be generated at the production level for the purpose of increasing the supply chain. The current production range is being aimed to be increased by way of dividing the products into multiple units, which would further allow the organization in its business expansion process quite rapidly. The company will also generate a number of retail enterprises. The main aim of all these retail enterprises is to supplementary oil products like sulfur that are extensively used in various industries like for instance, the health care industry. Hence, creating a product mix will allow Godiva production in creating newer business association with several other companies and eventually increasing their social connection in the global arena, which would further translate to increased revenue for the company. These endeavors towards creation of more and more business ties are the small avenues that will be highly useful for the company for the implementation of many of the proposed marketing strategies.
Diversity of supply:
The diversity of supply will be enabled with the help of the wide range of production that takes place in the organization. Different products will create different target markets, both within the domestic market of Tanzania as well as in other global markets as well. For instance, the production of kerosene from petroleum will allow the company to setup a different supply chain from the main product supply chain. Different products for different people will help in increasing the customer base of the company and this will lead to successful market expansion for the company. In the process, the eventual benefit for the company would be will create a social network system that will help in the faster supply of all the materials within a specified time frame (Jones, 1946). The different products that would be extracted from the company’s main product oil include liquefied petroleum gas, jet fuel, kerosene, diesel fuel, fuel oil, and butane. Other derivatives would also be produced from the same main product like the lubricants, sulfur, wax asphalt, and aromatic petrochemicals.
Operational & political risk:
A detailed SWOT analysis on the possible outcomes of the business will be conducted basing on all the factors that could create a setback to the organization. The political situation of the country will be assessed and from that workable measure will be developed by the executive team to try harmonizing the overlying political situation of the country. The business is prone to face challenges of political instability, but ways will be developed to counter the effects.
The Political environment in Tanzania has been comparatively stable in comparison to the other neighboring nations of the country. The investment environment in Tanzania has been pretty motivating as the Tanzanian government boosts FDI along with many appealing opportunities for international companies and foreign investments into the domestic markets of Tanzanian. There are also a number of taxes pertaining to international trade regulations in Tanzania. A few of them include import Duty, Excise Duty and Value Added Tax (VAT) upon products that are imported into the country.
Operational Risk
The factors regarding legislation and bureaucracy are the most crucial ones in relation to the operational environment of Tanzania. Additional factors like tax laws that are unclear, inappropriate implementation or rather poor implementation of the various laws, longer court processes, corruption, among others also are the potential operational risks that are to be considered by businesses in Tanzania. The ability to handle the legislative and bureaucratic setting existing in the country essentially defines the survival rate of businesses in Tanzania.
Bibliography
Jones, P.J., 1946. Petroleum Production: 2. New York: Reinhold.
Karjalainen, M., 2011. Introducing Tanzania as a Potential Market for Finnish Companies.
Tanzania Revenue Authority, 1996. Taxes Administered by the Authority. [Online] Available at: http://www.tanzania.go.tz/tra.html [Accessed 22 November 2014].
