The Consolidation Coal Company is highly developed, leading company in the USA. Its structure comprises several small mining companies. The enterprise was established in 1864 with its headquarters in Cumberland, in Maryland. The company specializes in producing premium coal, which was processed for delivery to customers in boxcars.
Consolidation Coal Company was later amalgamated with Pittsburgh Coal Company in 1945, and the headquarters moved to Western Pennsylvania. In 1996, the company was acquired by the Continental Oil Company. During this time, the demand for natural gas had increased as a result of the World War II. In 1981, the company was later sold to DuPont. However, in 1998, DuPont Company was forced to sell large majority of its shares due to increased competition. In the same year, Consol acquired two other coal companies: Rochester and Pittsburgh.
Consol underwent a public offering in 1999 with an aim to pay down debts that the company had incurred in the acquisition of the two companies. In early 2000, there was uncertainty in demand for coal. The company was forced to place greater emphasis on the process of diversification of the natural gases. In 2001, investment in natural gas began with the acquisition of MCN Energy Group located in Southeastern Virginia. The company continued acquiring coal reserves over the years. This expanded the company’s Gas Division with increased exploration.
Consol Company established a Land Division to oversee its projects such as selling reserve land, conservation project, and land donation. The company has gained the reputation in its efforts to reclaim wasteland. The company deals with research regarding coal and energy utilization as well as the production.
Consol Energy has used a marketing strategy of ensuring that its products are of high quality. The company has produced coal that is called premium smiths’ coal. This is a strong strategy by targeting the niche market of the smiths. It also offered a wide range of products for the various customers. The company practices a trend of innovativeness in its products, which places it at a good position in the market. The company transports coal and other products to ensure that the placement of its products is completed. Initially, this was done using boxcars. Today, the company has a transport system that ensures the sale and distribution of products and mining equipments. It has also a river division that has about 22 boats for the transportation of coal products. The company has engaged itself in advertizing sporting facilities to enhance promotion of its products. Two sporting facilities are named after the company, and it has sponsored sports’ leagues.
The company’s sales have been increasing steadily. A major increase was found after the Second World War. However, the company suffered a great blow in 2000. This was due to a great demand during that year. Nevertheless, the company’s sales remain at the top in the USA and Europe. The company’s products are sold from the offices located in Philadelphia and others. Its sales hit 64 million tons in 2010 with its revenues clicking $ 5.236 billion in the same year.
The company must have served its customers quite well for it to reach such a high level of revenues. The company provides transport services to customers. This is an advantage of its services. In addition, the company also offers hotel services, and sporting facilities.
Operations and Finance
Consol energy has a wide range of operations. The company is divided into two major divisions: coal division and gas division. In addition to this, it maintains numerous support services such as Research and Development, River Division, Baltimore Marine Terminal among others.
The coal Division is the major area of specialization for the company. Geographically, the Division operates in four states: Utah, West Virginia, Virginia, and Pennsylvania. The company has gained great reputation in the energy industry. This has come due to its ability to modernize its operations in the coal mining industry. In the years 2002, 2003 and 2004, the company won the Surface Mining National Award in recognition of its innovative reclamation practices. This further underlines the entity’s rank in the field of mining and energy production.
Consol Energy has established many selling points to enhance its marketing goals. This ensures that their customers receive energy supplies when they require them. Some of its branches selling offices are located in Philadelphia, Pittsburgh and Atlanta.
The company’s Gas Division specializes in exploration of natural gas, development and production. The company has access to more than 3.7 trillion cubic feet of proved clean-burning natural gas reserves in Ohio, West Virginia and Pennsylvania. This has been attributed to the acquisition of exploration and the production business of Dominion Resources in 2010.
The company utilizes a number of financing methodologies. The first is the equity contribution by the shareholders. The high level of periodic revenues enables the company to apportion a sizable amount to retained earnings used for further investment. The other portion is distributed to its shareholders in the form of dividends.
Any company, institution, organization, or a group of people need to be subjected to evaluation, which is not biased. SWOT analysis is one form of evaluation that should be done to gear the direction of a company. SWOT analysis aims to analyze strengths, weaknesses, opportunities, and the company’s threats.
Since its establishment in 1864, Consol energy, has demonstrated a lot of innovativenesses. It has exploited this virtue to ensure that it becomes one of the largest energy companies in the US. It has expanded greatly. In terms of safety, Consol energy has done tremendous work to ensure that the underground mining is safe enough. It has ensured that its production and utilization of its resources are efficient. This has led the company to seek additional coal mining wells. There are current more than 12000 wells.
Consol Energy has its own weaknesses, despite the great achievement in the production area and hence maximizing profit. It fails to address the problem of environment in its long-term agendas, for example, the erected plant near the Ohio River. The company does not broadcast information considering this issue.
As far as opportunities are concerned, Consol Energy has so many avenues that it has not so far exploited for its own good. This company can diversify its operations and start offering monetary assistance at a fee to other companies or even governments across the world.
Consol Energy faces some serious threats. The company currently deals with non-renewable energy. The company should analyze the potential risks that may have harmful influence with an aim to prevent loses of profit. Ono of the risk is depleted coalmines. The company should research the work of other enterprises in the sphere of energy service. Consol Energy is not the only large company in the US dealing with energy. Other companies may take advantage of diversifying in renewable sources of energy. If this happens, it means that the trust and confidence that Consol Energy has will be shifted to these other companies.
Recommendations and Conclusion
For the past one and half centuries that Consol has been in the energy market, it has witnessed various changes and finally has become a public company. By diversification, the company has recorded tremendous growth that has enabled the company to maintain its high reputation.
Analyzing the domestic scale of market coverage compared to international, it is easy to conclude that Consol Energy is dependent on local customer base. Given its high market reputation, the company can diversify internationally to reach out to overseas customers. The ugliness of its absence is being felt in most parts of the world. Although Consol Energy has tremendously demonstrated its efficiency in the energy industry, there is still some room for improvement. In particular, it should concern the process of diversifying its operations. It should particularly venture into the renewable sources of the energy sector. This will not only guarantee its survival but will join the global debate of environmental conservation and preservation.