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Module 8-2 follow up

Hi all, I need some help with the attached files.  Details inside.  Thanks!

Introduction

            Global Energy Services is dealing with the various challenges within the economic, environmental, and social domains. Challenges include falling oil prices that affect revenues and shareholders’ expectations, which are associated with the challenge of meeting EPA-mandated freshwater contamination remediation from a profitable drilling operation, according to Khan et al. (2020). Secondly, the restructuring of organizations to cater the environmental cleanup funding is problematic because it entails layoffs that could demoralize the employees. Moreover, the integrated recommendations for Global Energy Services on how to increase revenue and market share are difficult to develop, when the company faces the problem of costly environmental issues and making decisions on staffing.

Recommendations

            The board should consider the business, environmental, and social issues in their strategic decision-making. The board should consider modern technologies and the diversification of the operations to hedge the revenue without the expansion of the current drilling area. In this regard, the board should consider the establishment of an environmental cleanup fund as a remediation measure from which a small percentage of future income should be allocated in order to account for the problem without putting too much pressure on the current budget. Concerning the organizational structure, the board is required to consider transparency and communication.

Priority of Focus

            An essential priority order of focus encompasses environmental restoration, financial health, and employee motivation. As noted by Paananen et al. (2021), there is a need to address ecological cleanup to meet set requirements to avoid legal consequences and repair the organization’s image if it goes through legal suites. The company needs to stabilize finances through diversification to fund remediation and continue operations. Workforce reductions should be handled last, transparently, and compassionately to provide time for retraining and job search.

Criteria

            The primary step is to establish an environmental cleanup fund financed through a small percentage of revenue. This demonstrates accountability to regulators without jeopardizing operations. The other step is to focus growth efforts on innovative and diversified energy solutions that steer expansion away from high-risk drilling sites. Pursuing a more comprehensive range of energy projects allows for revenue gains without environmental hazards.

References

Khan, A., Qureshi, M. A., & Davidsen, P. I. (2020). How do oil prices and investments impact the dynamics of firm value? 
System Dynamics Review
36(1). 

Paananen, M., Runesson, E., & Samani, N. (2021). Time to clean up environmental liabilities reporting: disclosures, media exposure, and market implications. 
Accounting Forum,

 
45(1). 

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