BRITISH GAS GROUP

British Gas Group

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British Gas Group

Brief overview of the company

The British Gas Group is among one of the biggest names in energy sector. It has expanded its operations to 25 countries all over the world. Although, it has its headquarters in the United Kingdom (UK), 60% of workforce belongs to foreign origins. It has diverse workforce that caters the needs of the customers with diverse needs throughout the world. The customers in the energy sector of the United Kingdom are mostly served by the British Gas Group. The company keeps a distinguished place in the natural gas sector. The entire supply chain is handled by the company as it not only is involved in exploration but caters the entire gas chain. Being one of the top suppliers of Liquid Natural Gas (LNG), it supplies LNG to a large customer base in the United States (BG Group, 2012).

British Gas Group has been involved in capital intensive projects all over the world. In 2008, it would make an unsuccessful bid in order to acquire an Australian company in the energy sector. The Origin Energy, later on, would start a joint venture with ConocoPhillips on the surety that they will invest more than $9 billion of investment. The company started to cater the Asian LNG market in 2008, when it acquired Queensland Gas Company. The company has been successfully involved in other projects in order to expand its productions base. In 2010, it would reveal the proposal of investing more than $9 billion in a project in the eastern region of Australia. Through this project, the company will start liquefying and shipping coal-gas all over the world.

Although, the main business of the company is to explore, extract and liquefy gas, it has also been involved in oil production to an extent. It enables the company to cater the needs of the electricity generating companies. The company has also been involved in electricity-generation projects. Though it is a U.K based company, majority of its operational base is located outside the local premises. In order to manage its operations, across the board, the company has derived a governance framework based on three elements that can address each and every management-related issue that can rise.

Governance Structure

Every business exists to extract profits. One of the main objectives of all the companies is to maximize the wealth of its shareholders and maintain harmonious relationships with all its stakeholders (Pride, Hughes & Kapoor, 2012, p. 4). The company has to have a reputation of being a caring company; otherwise the environment of trust fails to prevail. As one of the biggest companies in the energy sector, the governance structure of the company is designed to suffice the size of the company. The board of directors is accountable for all the operations and strive to maintain relationships with the investors so that a level of confidence could be attained. For the board, not only the shareholders but the integrity of the group is also important, which can ...