mining and oil industry research sample

RESEARCH REFLECTION REPORT

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Table of Contents 1. Research Methods and Processes .............................................................................................................. 1

2. Literature and Sources .............................................................................................................................. 2

3. Knowledge ................................................................................................................................................ 3

4. Learning .................................................................................................................................................... 4

5. CRITICAL THINKING AND IDEAS ............................................................................................................... 6

6 BARRIERS ENCOUNTERED .......................................................................................................................... 7

7 PROFESSIONAL DEVELOPMENT WHILE RESEARCH .................................................................................... 7

8. Objectives ................................................................................................................................................. 8

9. Findings and Outcomes ........................................................................................................................... 10

Recommendations ................................................................................................................................... 10

Conclusion .............................................................................................................................................. 11

References ................................................................................................................................................... 12



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1. Research Methods and Processes

The current report deals with the mining and oil mining industry of Mongolia. The report

has tried to focus on licensing as the strategy for market entry in oil mining in Mongolia. As it

was found during the research, Mongolia is rich in mineral resources and its oil industry is huge

with fortunes to be made in oil mining. Licensing plays a very important role in the mining

industry as it defines the limits of operations of the particular company. Mongolia has been

dominated by agriculture and small enterprises but in the recent decades mining has contributed

a lot towards the economic development of Mongolia. It is the 11th largest in terms of coal

reserves in the world. It is also the second largest in terms of copper reserves in the world

(Mongolia profile, 2012).

areas.

In the secondary research, the data that was collected through various websites of

government agencies and private firms revealed certain important information that was very vital

This is a Sample, for complete Paper

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2

in analyzing the overall market of Mongolia related to oil mining. Certain facts and figures that I

came to know about the Mongolian economy and Mongolian oil mining was very important and

interesting as it opened by mind to an entirely new market and new industry. I understood the

fact that if companies are recognized on an international standard, it would be easier for them to

obtain licenses from the Mongolian government and enter the Mongolian market without much

hassle as they would have already complied with the standards set by various authorities and

agencies (The future of the mining industry: opportunities, challenges and responsibilities, 2012).

Thus it was very vital to use a combination of both primary and secondary resources in

order to get a complete picture of the issue. Secondary data revealed the facts and figures about

the mining market of Mongolia and primary data helped me to look beyond what the figures

stated. I am in much better position now to comment and recommend on the oil mining sector of

Mongolia on issues related to licensing and how it can be used as a market entry strategy by oil

mining companies in Mongolia.

2. Literature and Sources

Various literatures, journals, articles, websites were accessed by me in order to gain

information about the Mongolian economy and its mining and oil mining sector. Firstly it was

revealed that the mining sector holds a tremendous opportunity for the sustainable growth of the

Mongolian economy. There are many agencies operating in the country which jointly frame rules

and regulations concerning mining in Mongolia (Langfitt, 2012). It is required that rules and

regulations do not hinder the growth but rather provide a better and flexible framework for the

mining and oil mining industry to grow and become a more organized sector. The rigid rules and

regulations laid by government of Mongolia are unable to attract foreign investment (Mongolia

profile, 2012). The mining activities in Mongolia commence with obtaining a license for

exploration of oil resources. If this step becomes successful then the firm can further obtain

license related to mining and other processes. The most important advantage comes with respect

to exemption for tax which comes up to 100% in the first 5 years and 50% for the next five years

(Market Entry Strategies, n.d).

It was also found that there are major challenges that small and large firms face when

entering into the Mongolian market. Although the mining industry in Mongolia makes up for

20% of GDP and approximately 90% of their export products, still there are a lot of loopholes



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still existing which needs immediate attention in order to make it into a more organized sector

and bring about a desired growth rate (Batbayar, 2012). I can summarize at this point that larger

firms are still able to sustain because of their huge financial resources and strong backbone as

they are already established players but smaller firms are not able to sustain because of stiff

competition, lack of innovation, obsolete technology and most importantly licensing issues. The

growing complexities of obtaining licenses and legal obligations associated with it do not give a

very rosy picture to enter new markets of mining. In addition to this, the growing inflation has

also pushed up prices which is making it all the more difficult for firms to manage their costs.

From various media sources, it came to be known that Mongolia has been emerging as

3. Knowledge

By undertaking the current research, a wide knowledge was gained about the global

mining market as well as the mining sector of Mongolia. The present report deals with licensing

as a market entry strategy which can be used by oil mining companies who are planning to make

an entry into Mongolia. This report was an immense source of learning about the mining industry


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of Mongolia as it gave total information about the overall mining sector of Mongolia (Langfitt,

2012).

The assignment was completed by studying the works done by various authors. A step by

step analysis of each and every aspect of problem gave a very descriptive view of the entire

problem. It was a tedious task to understand and follow all the policies and procedures while

making entry into new domains. Adhering to all the rules and regulations is also very important

in order to make a mark. But if the underlying opportunities are analyzed properly then the firm

can easily grow and survive (Andexer, 2008).

A better understanding was also gained in relation to prevailing mindsets of local people

who consider foreign firms as a source of threat rather than a source of future development. The

data analysis which was done by thematic approach also proved out to be very useful and

informative which reflected the key requirements related to making a successful entry into

mining industry of Mongolia. It can be a boon for people of Mongolia as well as its economy if

as sooner or later they would have to introduce changes in order to face existing competition

(Els, 2012).

Conducting the research in a totally new topic broadens the horizon by opening up to an

entirely new market segment and entirely new market, like in the current report it was oil mining

in Mongolia. Mongolia has emerged as a new frontier for oil mining and thus is gaining wide

attention from major companies around the world. Analyzing the whole licensing issue with

respect to mining and oil mining helped me to gain knowledge about a totally fresh area which

would have otherwise not been my area of interest. The complexities related to licensing in

mining gave an insight into the various laws related to it and explained how can it be useful for

firms wanting to enter into the mining market.

It was also understood that it is important to ensure that a thorough analysis with respect

to available strengths and weaknesses is carried out by a firm before entering any new economy

to avoid problems to be faced in future. As this can have an overall impact on the economy and

firm which can hamper the growth of any organization in long run (Ethridge, 2004).

4. Learning

In the complete Master’s of Business Administration program we gain knowledge

regarding procedures and strategies for undertaking a trade effectively and also validly. At the



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duration of course several case studies along with books are evaluated that gives understanding

of basic requirements to conduct such business, which dealt with natural resources heavily

(Badke, 2011). Through studying it one can able to know how to apply for getting consent of

government for conducting such type of businesses. The training is imparted by experts for

providing knowledge regarding rules and regulations of business. In MBA course we also

learned about various laws, in the context of licensing trade. These all teachings had helped me

in determining significance of licensing as well as their importance in mining industry.

any company (Stewart and et.al., n.d).

Thus, all the teachings which I acquired in my course were proved helpful in undertaking

the following research. Initially, the process of fulfilling business obligations was helped me in

determining appropriate strategies for entry into the market. Moreover, as the Mongolia was not

well known to me, so the research methods has provided support in gathering information


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regarding oil mining business of the country for telling others how to undertake mining trade at

this place (Craft, 2001).

5. CRITICAL THINKING AND IDEAS

In carrying out this research, analysis, evaluation of several evidences and proposing

conclusions, the most important discovery has been that it is very significant to identify the

critical success/failure factors and strategies for entering oil mining industry of Mongolia. Such

factors plus strategies require special acknowledgment as oil mining sector operates in a complex

and turbulent environment. It has been found out that licensing requirements are to be properly

complied with for smooth functioning in this industry. The concerned authorities have laid down

several protocols which need to be followed by every company and whose non-compliance

would result in cancellation of license (Fiberesima and Rani., 2011). The success rate is quite

high in this industry; however, any mistake can lead to failure of business. Hence, it becomes

critically important for the business managers to effectually acknowledge the major success as

well as failure factors of their business. These critical factors are licensing, skilled manpower,

technology, and consistent flow of funds. On the other hand, competition is very high in this

industry as Mongolia is emerging as a prospective mining destination. Big companies are

constantly eyeing opportunities to enter this market. Thus level of competition can prove to be a

failure factor if not given due consideration (Davison, n.d).

Any business, notwithstanding its attractive proposals, will fail to turn productive if the

business manager has not conducted an examination and review of factors contributing towards

its prospective success or failure. A thorough as well as comprehensive understanding of these

elements helps a business manager to effectually map out the present and future course of

direction so that all the operations can be fruitfully organized. Such factors are significantly

important for accomplishing the mission and goals of the company (Camilleri, 2011). If the

business manager does not comprehends proper understanding of what might and what might not

affect his business adversely in the coming years then it won’t be possible to come up with a

contingency plan to tackle those impending problems. In addition to this, examining that factors

that can prove to be an obstruction in successful growth of business assists manager in rising

above those impediments plus avoid them from taking place in future. Likewise, critical success

factors are those facets which should go well to ensure the sustainability of a company (Weber,



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2011). Hence, it highlights those divisions which need constant as well as singular attention to

promise high levels of performance.

Therefore, this aspect has rendered additional growth in my understanding levels as

several business managers are unsuccessful in comprehending this small but vitally important

factor and thereby fail to protract their success and sustenance in oil mining business. The fact

that success factors are not similar to success criteria has also been acknowledged.

7 PROFESSIONAL DEVELOPMENT WHILE RESEARCH

Time Management & Planning skillfulness – This refers to the dexterity of managing and

planning work according to the available time so that deadlines are not missed and

everything gets completed within the stipulated time assigned. It involves pre-scheduling

of all the tasks which helped me in charting out relevant plans (Craft, 2001).


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Communication Skills – Through this research, my communication and interaction skills

have enhanced highly. While carrying out this study, interactions with several industry

experts and professionals of oil industry plus workers had to be made which helped in

improving my communication and confidence. During these meetings both verbal and

non verbal communication was extended which helped me learn the nuances of this skill

(Rhoton and et.al., 2001).

Consistent personal development skills – Theoretical knowledge helps but it needs to be

supported by enough practical knowledge as well. For the successful completion of this

research, all sorts of activities were undertaken by me like planning, scheduling, risk

management, evaluation, selection of research methods, approaches, and etc. (Craft,

2001). This proved to be of significant importance for my personal development as I was

consistently engrossed in some or the other necessary task which helped me gain valuable

knowledge about several areas.

Organizational skills – While conducting the research, I came across various constraints

and limitations. I learned about how to make optimum utilization of resources. Some of

the resources that were in limited amount have been optimally used to solve the purpose

of this research (Rhoton and et.al., 2001).

8. Objectives

Objectives could be defined as final effects that are wish to be accomplished by an

organization or individual in a specific time period with the available resources. The aims of

MBA curriculum are to provide knowledge, skills as well as competency, in order to come out as

an efficient manager or leader. It is a broad course that inculcates comprehensive understanding

about several managerial concepts that are pertinent for succeeding through one’s career, more

willingly than just conveying technical teaching for practical job. The fundamental objectives

following this course for a partisan are to achieve and promote their foundation, in the context of

the core plus basic competencies, which would help him/her in creating themselves as effectual

or best managers (Sme, 2008).

All along this project, several career improvement and encroachment goals and the case

objectives have been attained. The initial aim of major research paper was to show readers the

importance of licensing while entering in Oil mining industry in Mongolia. This research has



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been reformed by following the entrepreneurial concept. The main purpose is to

comprehensively identify several components of business functions and developments. Hence,

principally different marketing entry strategies and licensing policies is developed by explaining

all essential requisites (Langfitt, 2012). The essential objectives of this study are:

To find out how the oil mining industry has developed from its start up till today.

To study the overall oil mining industry of Mongolia and the problems it is facing.

To study if licensing can be used as a market entry strategy by oil mining companies in

Mongolia.

To find out the major companies involved in mining in Mongolia and what are their

strategies for further development (Craft, 2001).

The competency of functioning effectually in a varied international business

environment.

With the help of analytical skills which I learned in MBA program, in this report various

essential competencies that is required in entering into the oil mining business is gained by me

(Badke, 2011).


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9. Findings and Outcomes

Findings and outcomes are the coverings of any study, which provides final outcomes of

entire work. Recommendations could be made for various improvements, on the basis of

findings. The present report findings as well as outcomes are not only useful in present case,

even it could be applied in future cases of similar topics of the same industry.

Findings – The present report is exploring reader’s knowledge on requisites of obtaining license,

in order to take market entry in Mongolian Oil mining industry. The major player of this industry

in Mongolia is Wolf Petroleum, which involved in extraction and is regularly seeking more

opportunities for licensing, as the company is searching for diversification. The Geological and

Mining Development Agency department of Ministry of Industry and Trade mining governing

body of Mongolia tackles several activities regarding mining business. It also makes sure that

organizations are legally complied with all regulations and laws approved by the government.

This was also identified that in charge of issuing license as well as collecting fees or resolving

disputes is OGMC. Moreover, it is also found in the research that there are some key

requirements of getting success in Mongolia mining industry, such as license, technology and

manpower (Camilleri, 2011).

Recommendations

The recommendations thus suggested for the current report like for making effective

market extension and diversification the company shall acquire proper licensing, appropriate

review of related rules and regulations, duly submission of mining related reports, forming

strategic alliance with local oil mining companies and increasing the expenditure on training

workers are quite justifiable for achieving the related objectives. For instance, for diversifying

and extending company’s operation it is necessary to acquire respective licenses to avoid any

problems in future resulting simply because of ignorance. Similarly, forming strategic with local

companies is recommended as this would ride out competition and abundant manpower will be

available for the company. Likewise, regular submission of company’s mining activities as this

would help it in harvesting support from both public and government. In addition to this, it was

identified while carrying out research that manpower although available in plenty was not

skilled. Thus, incurring expenditure on their training will only benefit the company and cost of



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importing manpower can also be evaded. Hence, it can be said that the recommendations

provided for this study are justifiable as well as relevant (Pehrsson, 2009).

Conclusion

The concluding paragraph of the report highlights all the important and relevant elements

of the research. It contains a detailed account of why oil mining industry has been considered as

a booming and growing sector in Mongolia. In addition to this, the most viable options of

entering this industry have also been covered. The several research methodologies that have been

used in this research report along with research approaches adopted have also been concluded in

this section. The time scale for the study as well as the sampling technique and sample size has

been mentioned in this part. All the relevant data analysis methods made use of plus the research

findings have been properly concluded in this section. Taking a look at report’s conclusion can

provide a layman a comprehensive overview of the whole report. Thus, it can be said that the

paper has been concluded in a justifiable form (Stewart and et.al., n.d).


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References

Books, Articles and Journals

Andexer, T., 2008. Analysis and evaluation of Market Entry Modes into the Asia- Pacific region. GRIN Verlag.

Badke, W., 2011. Research Strategies: Finding your way through the information fog. iUniverse.

Camilleri, E., 2011. Project Success: Critical Factors and Behaviors. USA: Gower Publishing Ltd.

Craft, A., 2001. Continuing Professional Development: A Practical Guide for Teachers and Schools. 2nd ed. New York: Routledge.

Ethridge, D., 2004. Research methodology in applied economics: organizing, planning, and conducting economic research. 2nd ed. Wiley-Blackwell.

Pehrsson, A., 2009. Barriers to entry and market strategy: a literature review and a proposed model. European Business Review. 21(1). pp. 64-77.

Rhoton, J. and et.al., 2001. Professional Development: Planning and Design. USA: NSTA Press.

Sme, 2008. Study Guide for the Professional Licensure of Mining and Mineral processing engineers. SME.

Weber, T., 2011. What Are The Critical Success Factors In Expatriate Assignments. GRIN Verlag.

Online References Batbayar, 2012. Steering Development for 90 years: Problems Faced by the Mining Industry.

[Online]. Available through: <http://www.mongoliaeconomy.com/?p=9385>. [Accessed on 2nd November 2012].

Davison, K., n.d. Petroleum Technical & Commercial Fundamentals. [pdf]. Available through: <http://www.pepanz.com/assets/Uploads/technical.pdf>. [Accessed on 2 November 2012].

Els, F., 2012. Mongolia backtracks on state ownership of mining companies. [Online]. Available through: <http://www.mining.com/mongolia-backtracks-on-state-ownership-of-mining-companies/>. [Accessed on 2nd November 2012].

Fiberesima, D. D. and Rani, N. S., 2011. An Evaluation of Critical Success Factors for Deepwater Oil & Gas Project Portfolio’s in Nigeria. [pdf]. Available through: International Conference on Industrial Engineering and Operations Management. Website: <http://www.iieom.org/ieom2011/pdfs/IEOM019.pdf>. [Accessed on 2 November 2012].

Kennedy, V., 2012. Advantages & Barriers of a Research Project. [Online]. Available through: <http://www.ehow.com/info_8510527_advantages-barriers-research-project.html>. [Accessed on 2 November 2012].



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Langfitt, F., 2012. Mineral- rich Mongolia Rapidly becoming ‘Mine-Golia’. [Online]. Available through: <http://www.npr.org/2012/05/21/152683549/mineral-rich-mongolia-rapidly-becoming-minegolia>. [Accessed on 2nd November 2012].

Market Entry Strategies. n.d. [Online]. Available through: <http://www.austrade.gov.au/Market-entry-strategies/default.aspx>. [Accessed on 2nd November 2012].

Mongolia profile. 2012. [Online]. Available through: <http://www.bbc.co.uk/news/world-asia-pacific-15460525>. [Accessed on 2nd November 2012].

Research Limitations. n.d. [Online]. Available through: <http://www.psychologyandsociety.com/researchlimitations.html>. [Accessed on 2 November 2012].

Stewart, L. M. and et.al., n.d. Guidelines for Critical Review of Qualitative Studies. [pdf]. Available through: Website: <http://www.musallamusf.com/resources/Qualitative-Lit-Analysis-pdf.pdf>. [Accessed on 2 November 2012].

The future of the mining industry: opportunities, challenges and responsibilities. 2012. [Online]. Available through: <http://nordicinnovation.org/news/the-future-of-the-mining-industry-opportunities-challenges-and-responsibilities/>. [Accessed on 2nd November 2012].

Wiley, J. W. and Herman, A. E., 2011. Barriers to Effective Survey Follow-Up: Execution, Importance, Resources. [pdf]. Available through: Kenexa High Performance Institute. Website: <http://www.kenexa.com/getattachment/a3578dd4-32da-4eec-8d34-7bd9c82d38f1/Barriers-to-Effective-Survey-Follow-Up.aspx>. [Accessed on 2 November 2012].


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mining and oil industry research sample

Education

research methods

oil industry

secondary research

world mongolia profile

recent decades mining

current report

terms of copper reserves

terms of coal reserves