Marathon oil company is an oil and searching and refinery company that has its headquarters in United States of America .there is several methods (production processes).
Marathon’s Production Processes:
Product Process Matrix: This is an canalization method that is used to determine the connection as in between the life cycle of the product and that of the technology. This method is credited to Robert Hayes.Here; the prevailing conditions have got two constituents. The two product processes in the matrix are: the product life cycle and the process life cycle. The previous method had the tendency of producing final products that had to pass through varying number of phases like the phase of production and marketing The method itself commences with an expensive phase and then it focuses on raising
the ordinarily, computerization and closing in money saving process. The latter (the process life cycle) refers to the four phases of the result life cycle; it consists of two other sub processes namely-low capacity to high capacity and the other is low to high standardization. The company keeps the price at the pump without losing profit by placing the requests of the crude oil and other in excess (bulk).If the company gets its wares from a costly merchant the same way they would keep the price of their products competitively high. Another way that they can keep their prices low at the pump is by not investing their all money in the buying of the materials. If it places orders with almost all the money it could cause plethora of problems in the flow. The company can also minimize the duration of time that is used in the production process. One recommendable objective is to maximize the rate of the transport of the oil. This is because when they order the products in bulk, the cost of gas transportation is lower when compared if they ordered the same commodity in smaller quantities..The can venture greatly or invest much on oil pipeli8ne transportation. When put side by side to other means of transport, pipeline transport is convenient and cost effective because it hauls gargantuan portions of oil products whether crude or that has been refined or even gas products. The pipeline transport method is mainly used to haul
Oil products over land surfaces. Yet again, the company can have huge profits by joining with other corporate partners. The company could join collaborations with other partners and together they could place orders on the same merchandise and they could get quantity breaks and in this way, it cannot strain much the buyer so as to realize the profit.The level of profit that would be realized in ordering alone is far lower in comparison to the one that would be realized if the company .The company can lessen the time that is spent by the workers (the reduction of labor time) The various branch offices should keep records of the company’s work trend so as to figure out the various spaces that they can minimize the time. In simple terms .The Company can employ the services of workers at minimized rates-per hour. An example is that if they enroll the services of workers who work at an hourly rate of $65, they can lay them off and find others of who can work at $25 in hourly rates. The company can also reconsider its list of expenditure and cut back its expenses. An example is whether they can really situate a very executive office at a place where the price of housing is very high. The marathon company can then make a reduction of their expenditure by evaluating their expenditure as per very month from the former high rises and then lessen costs that can be done without from magnificent commercial another solution is to invest in energy stockpile. The stockpile invest favors those that invest in t6hem but proves a headache to the purchasers (Lon, 2006). The marathon company can propose a leader from every branch so that they can be making all their assessments and minimize their accounts that are paid (Company, 1998). The continued moratorium on deep water drilling will be a major impact on the price of retail prices in United States of America since the mighty divide up of the expenditure set on the moratorium will be carried by the business industries that are drilling the deep-water wells. The little stockpile of the company will be turned to. The protocol that if the demand is high and the is high and the supply is low, the prices will skyrocket .The consumers will be forced to dig deeper into their pockets to meet the needed extra money. A satisfactory fact that the retail prices will skyrocket can be seen as using the paraphrase Geoffrey Styles, an Economist in the United States of America. He was quoted as saying “…But until the public and the government are satisfied that all the key lessons from the Deep Water Horizon accident have been identified and put into practice, the industry history will remain on probation…if you doubt it, imagine how the oil company –and the stock market-might have reacted if the accident and our response to it began on April 20th 2008,when the oil futures traded at $117 per barrel on their way to $145 a couple months later…”Another evidence that the prices will skyrocket can be fathomed from the example that was given in Adam Smith’s book, ‘The Wealth of Nations..”you may find a stick on the ground and deduce that it does not have a lot of value…if someone wanted a dab one enough, her would not be a lot of trouble if finding…if you take that stick to your workshop and mould it and hew an axe handle out of it, it can seem to have value…”The reviewer of the book says that prior to the oil spill, it’s a recipe for increased prices.However,varying people hold varying opinions: one of the person is Eric Smith. As an energy expert attached to the Tulane Energy (Borton, 2006)
Instititute,he voiced his view that the moratorium imposed on the Marathon Oil Company does not have any consequences on prices of the oil. He says…”you may might be surprised to learn that it is not all (or rather it is not most )of the oil from the Gulf is used for gasoline” His view can be supported because according to the statistics from the Energy Sector ,most of the oil that is produced in the Gulf is used as components or constituents during the production of chemical substances and also synthetic rubber”… but it brought an awareness of the importance of safety…”the Energy Expert continuous to support his view.”..then reason why the gas prices are rising is as a result of the lack of reserve crude oil…”he tips that”…it is a whooping 85 million barrels of crude oil that are used per day whereas it is only approximately 5 million barrels of crude oil that are saved in the reserves for a bad day.” And according to his view, he says that that is attributed by the elapsing of the level of the oil production in the Middle East. The low level of production bends the oil suppliers in the U.S to make use of the oil reserves. The moratorium cannot be claimed to be the cause of the sky rocketing cost of retail prices in the U.S as of lately it has been very difficult for the oil drilling companies to be certified with new drilling permits.
Relationship between retail price of gasoline and crude oil: The obvious fact is that when the price of a barrel of crude oil escalates the contest in the market forces the price of a barrel of gasoline to lapse. If for example one oil retailer lowers the price of gasoline, the retailer attracts a high number of clients and so the other retailers are forced to lower too. (Senate, 1981)
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