Please have a read through the context provided below and answer the question with relevant references.
Context – The organisation I work for is a subsidiary of the Abu Dhabi based organisation TAQA, who are an “international energy and water company listed in Abu Dhabi”(TAQA, n.d.) and are predominantly owned by the Abu Dhabi government with a “75.2%”(TAQA, n.d.) shareholder stake.
The subsidiary primarily operates a number of operated and non-operated upstream and downstream oil and gas assets within Europe. According to the TAQA the purpose of the company is; “that energy has the power to improve lives and bring prosperity. From Abu Dhabi to new horizons, we embrace the challenge of delivering affordable and reliable energy and water. That’s why, every day, our people deliver solutions that make a difference”(TAQA, n.d.).
The reason I call the objective of the subsidiary organisation curious is because it was initially a strange decision for a government operated company to invest in a number of late life oil and gas assets in the UK and Netherlands which produced approximately 60,000 barrels of oil a day, when as a nation Abu Dhabi produces “3,088,300 barrels per day”(Organization of the petroleum Exporting Countries, 2017).
According to the CEO of TAQA at the time of the UK acquisitions “the UK assets come with a very experienced workforce, infrastructure, and support structure which brings a lot to TAQA”(Peter Barker Homek as cited in Energy Boardroom, 2008).
The character and focus of the subsidiary has evolved since the initial acquisition of the UK Assets and at the prime objective at moment is ensuring that TAQA receives a return on its investment.
There has definitely got to be a wider consideration for a wider range of stakeholders, and more organisations are recognising there are benefits associated with sacrificing some profit for other objectives, but wealth creation is a key fundamental.
John Lewis has a particularly interesting business structure, in being a form of partnership, do you think this model changes the prime objective and gives more consideration for a wider range of stakeholders?