OPEC Organizational Analysis

PART I

PRELIMINARY

1.1 Description of OPEC Organization

Organization of Petroleum Exporting Countries (OPEC) is an organization gathering place for oil-exporting countries. OPEC organization founded 14 September 1960 by the five member countries: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela, that is after the convening of the Conference of Baghdad 10 to 14 August 1960, followed by the five oil producing countries. OPEC's headquarters was originally located in Geneva (January 21, 1961-August 1965) and then moved to Vienna.

1.2 Purpose of Establishment OPEC

1. Coordinate petroleum wisdom member states.

2. Integrate petroleum wisdom member states.

3. Protecting their interests individually and collectively.

4. Improving the welfare of member states.

1.3 Vision And Mission OPEC

Vision and Mission of OPEC is to coordinate and unify the policy of oil from member countries and ensure the stabilization of oil markets in order to secure an efficient supply, petroleum economical, regularly given to consumers, a steady income to producers and a return on capital that is fair to them that investing in the petroleum industry.

1.4 Identification of Problems OPEC

OPEC is still hampered by one major problem, namely how to define its role in world oil prices has not yet fully functioning optimally and effectively.

1.5 Problem Formulation OPEC

1. Why OPEC is less effective and efficient in carrying out its functions?

2. How can a solution to OPEC into an effective and efficient organization?

CHAPTER II

DISCUSSION

2.1 Discussion Practical OPEC

We know OPEC is less effective and efficient in carrying out the mission and functions due to many problems that include

1. The difference Interests OPEC members.

2. The number of consumer countries are constantly trying to divide the unity and integrity of the OPEC member countries because they feel aggrieved, where one of them is a NON-OPEC exporting countries.

In practical terms, many things have been done by OPEC in the handling of these problems include:

1. Trying to understand the differences of each member state is quite complicated to repair relationships that are sometimes lacking in harmony among the member states on the other.

2. Trying to stabilize oil prices in the international market by establishing regulations on oil export trade.

3. With the establishment of the audit team to check and control every production and oil prices as well as correcting and perfecting the system of administration of OPEC.

4. By conducting diplomatic forum and dialogue among members to easily coordinate and integrate policies in member countries of OPEC oil.

2.3 Discussion Theoretical OPEC

Theoretically, the problems that occur in OPEC may be addressed by classical organization theory in which this theory explains that an organization that depends on four key areas, namely power, serve one another, doctrine and discipline. Where poles are essentially:

1. The division of labor coordinated

2. The Scalar Process & Functional

3. The group of people and Cooperation

4. The structure (the relationship between activity)

5. Power & Leadership (their span of control)

2.4 Theoretical Solutions OPEC

1. Fighting for strengthening the functions and authority of OPEC through trade regulations on oil exports.

2. Development of effective leadership patterns that include:

a. Common perception inside and out

b. solidarity leadership

c. A harmonious relationship both horizontally and vertically

d. Productivity, climate and improved work ethic

e. Participation of members increased

f. Feedback terespon and managed.

3. Procurement experts to improve the performance and image of OPEC

4. Increasing the effectiveness of the OPEC organization and supervision system.

CHAPTER III

COVER

3.1 Conclusions

OPEC should preferably be really memanagement or adjust inventory will energy sources will be the oil as well as possible so that the economic order is always measured or estimated based on the price of oil, not too frequent changes in because the budget financial planning either income or expenses a country within a period of at least 1 year period. Besides OPEC also have to be really wise in setting policies on oil and not just the pursuit of profit. With members of a solid and clear rules then OPEC could answer all global tuntuan related functions.

3.2 Advice or Recommendations

OPEC has an enormous influence on the world's major industries. Because we know that there are two sides are interdependent and both have considerable strength influence in the oil world. On the one hand, OPEC discount natural resources (oil) is very large, while the other hand the industrial countries (consumers) discount on the acquisition of the power of science and technology as well as the amount of capital. This condition causes the OPEC member country has always failed to comply with the standards specified price, besides that there are also other internal factors of each member, for example, the national conflicts.

Bibliography

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