Total Company Strategic Plans

Total Company Strategic Plans

The Total Oiling Company is a prominent multinational enterprise with a widespread global presence, recognized among the top six leading oil companies worldwide. Its operations encompass the entire oil and gas supply chain, including exploration, production, transportation, refining, marketing, and power generation. Founded in the 1920s as the Compagnie Française des Pétroles (CFP), the company has evolved significantly over the past century, expanding its reach from the Middle East to Africa, Canada, and Venezuela. Today, it is headquartered in West Paris at Tour Total and stands as a testament to strategic growth, innovation, and adaptation in the dynamic energy sector.

This paper critically examines Total Company's strategic plans, exploring its mission, vision, core values, strengths, weaknesses, opportunities, and threats. The analysis aims to understand how these strategic elements have contributed to its leadership position, identify areas for improvement, and recommend future directions aligned with industry trends and sustainability imperatives.

Paper For Above instruction

The strategic planning process of Total Company exemplifies how a large multinational organization navigates the complexities of the global oil industry. Central to its strategy are clear mission and vision statements, strong core values, and a focus on sustainable growth, technological innovation, and stakeholder engagement. These elements collectively underpin the company’s competitive advantage and resilience amidst fluctuating oil prices, geopolitical tensions, and increasing environmental regulations.

Understanding the Mission, Vision, and Values

The mission statement of Total emphasizes its commitment to providing high-quality energy products while fostering innovation and operational excellence. It also reflects the company’s focus on developing human capital, particularly within the UAE, by recruiting and training local talents, and aligning its internal practices with regional economic goals. This approach not only enhances local employment but also ensures a sustainable and inclusive growth trajectory.

The vision statement articulates the company’s aspiration to be a responsible and sustainable energy leader, emphasizing innovation, operational efficiency, and environmental stewardship. While inspiring, it is somewhat complex and may benefit from simplification to enhance memorability and stakeholder alignment. Nevertheless, it captures the company's long-term goal of balancing economic objectives with social and environmental responsibilities.

The core values of Total—integrity, respect, safety, environmental responsibility, and innovation—serve as guiding principles for decision-making and corporate conduct. These values foster stakeholder trust and brand integrity, critical in an industry often scrutinized for environmental and social impacts.

Strengths and Opportunities

Total’s strategic strengths are underscored by its diversified portfolio, technological prowess, and global presence. Its extensive exploration and production assets, particularly in high-value upstream projects like deep waters and giant fields, position it favorably against competitors. Furthermore, its technological innovations enhance operational efficiency, reduce costs, and support environmental sustainability, such as carbon capture and renewable energy investments.

The company’s global footprint allows it to capitalize on diverse markets and consumer segments, establishing a resilient revenue base. Its strong brand reputation and commitment to quality further differentiate it from rivals. There are numerous growth opportunities, including expanding in renewable energy, electric vehicle infrastructure, and innovative petrochemical products, aligning with global sustainability trends.

Weaknesses and Threats

Despite its strengths, Total faces significant challenges. Past incidents, such as oil spills and bribery allegations, have tarnished its corporate reputation and highlighted the need for more robust risk management. Regulatory pressures, fluctuating oil prices, and the increasing shift toward greener alternatives threaten its traditional business model. The rise of hybrid and electric vehicles diminishes demand for fossil fuels, posing a long-term threat.

Furthermore, geopolitical tensions and national policies in key regions, especially in the Middle East and Africa, can disrupt operations and supply chains. Internal challenges include maintaining operational safety, managing stakeholder expectations, and balancing profitability with sustainability commitments.

Strategic Recommendations for Future Growth

To sustain its market leadership, Total should intensify its investments in renewable energy and low-carbon technologies, transitioning toward a diversified energy business. This aligns with global efforts to decarbonize and reduces reliance on oil revenues. Developing partnerships with renewable startups and investing in research and development can accelerate this transition.

Enhancing transparency and risk management practices will mitigate reputational risks associated with past incidents. Strengthening corporate social responsibility initiatives, particularly in environmental protection and community development, will bolster stakeholder trust.

Operationally, adopting advanced digital technologies such as artificial intelligence, IoT, and blockchain can improve supply chain efficiency, optimize exploration activities, and enhance safety protocols. Internally, fostering a culture of innovation and continuous learning will ensure adaptability in an evolving energy landscape.

Policy advocacy and collaboration with governments can also facilitate favorable regulatory environments and support renewable infrastructure projects. Emphasizing sustainability in marketing and branding efforts will appeal to increasingly environmentally conscious consumers and investors.

Conclusion

Total’s strategic plans—focused on operational excellence, technological innovation, and stakeholder engagement—have positioned it as a leader in the global energy sector. However, the evolving climate change landscape and industry disruptions necessitate a proactive shift toward cleaner energy sources and enhanced sustainability practices. By leveraging its strengths, addressing weaknesses, and capitalizing on emerging opportunities, Total can navigate the future with resilience and responsibility, ensuring long-term growth and value creation for shareholders and society alike.

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