Business model of

By: NITIN TULSIAN(A-17) PARAM AGRAWAL(A-18)

Business Model

Players/Entities
1. 2. 3. 4. 5. 6. Employees: Workers for ONGC Customers: People who buy ONGCs oil products Suppliers: They supply drilling equipment and spare parts to ONGC Dealers: Shareholders and investors: Business Associates

Motivation/Value/Profit 1. Employees
Employment: HR policies at ONGC revolve around the basic tenet of creating a highly motivated, vibrant & self-driven team. The Company cares for each & every employee and has inbuilt systems to recognize & reward them periodically. Motivation plays an important role in HR Development. In order to keep its employees motivated the company has incorporated schemes such as Reward and Recognition Scheme, Grievance Handling Scheme and Suggestion Scheme Incentive Schemes to Enhance Productivity 1>Productivity Honorarium Scheme 2>Job Incentive 3>Quarterly Incentive 4>Reserve Establishment Honorarium 5>Roll out of Succession Planning Model for identified key positions 6>Group Incentives for cohesive team working, with a view to enhance productivity Brand : ONGC is a brand name in itself. Thus employees want to be associated with it

2. Customers

3. Suppliers

4.Dealers

5.Shareholders and Investors

Return on invetment: ONGC is a listed company. Over the years the company has had an impressive track record of shareholder return on investments.

6.Business associates
Profit sharing:

Technology sharing:

Distribution:

Revenue streams
Sales of oil and gas: ONGC is the largest oil and gas extraction company in India. Recently Oil & Natural Gas Corp. has reported an oil and gas discovery in the AssamArakan basin and a gas-condensate find in Indias western onshore basin Revenue strategic tie ups: ONGC has tied up with several companies like BPCL to provide with crude oil and also act as distribution partners.

Expense streams

 Exploration of new oil fields and basins Every year ONGC spends heavily on exploration of new oil and gas fields. Plant and Machinery maintenance cost: Every year ONGC incurs a major portion of their cost in the maintenance of its Plant & Machinery situated at various sites. Taxes: ONGC is among the top three income-tax payers in the country after SEBI and Reliance. The advance tax paid by ONGC this year was 1062 cr. Operation and distribution cost: ONGCs operation and distribution cost in 2010 alone was about 29,150 cr. Thus cost management is one of the prime concern of ONGC today as its average cost per barrel is more than many countries like US.

Management Policy:
The company makes every effort to meet the expectations of all stakeholders including customers and business partners by building a constructive relationship amongst management, labor, executives and employees.

Assumptions
ONGC is a pioneer company in oil extraction in India Brand value Customer satisfaction