6-2: Controlling for Success-The story of Suncor Energy Inc.

Our class was required to choose one company out of a list of 10, that had successfully persevered through the effects of the recession of 2008-2009. After reviewing the list of well known, highly acclaimed organizations, I was immediately drawn to Suncor Energy Inc., formerly led by CEO Rick George. This leader accepted the role of CEO and President of Suncor in 1991. In 1999 he received the prestigious honor of being named “Outstanding CEO of the Year” due to his success in improving the oil company’s overall business. In 2008 he was accepted into the Canadian Petroleum Hall of Fame (http://www.suncor.com/en/about/889.aspx).

http://www.cbc.ca/news/business/story/2011/02/22/libya-suncor-operations.html

Company Info

Starting in 1967, Suncor Energy Inc. was involved in the development of Canada’s oil sands which boasts one of the most prosperous petroleum sources in the global market. Across Canada, American soil and international waters, Suncor locates, extracts and refines natural gas and oil products from both land and sea. In addition to the market of oil products, the company is also very involved in environmentally friendly renewable resources. The company is currently operating 6 wind power projects which significantly decrease Carbon Dioxide emissions into the environment. (http://www.suncor.com/en/about/164.aspx).

Suncor Energy Inc. hit a bump in the road during the Canadian recession, which saw prices of oil plummet from $147 to $40.00. Suncor felt the effects of the poor economic times. Instead of throwing in the towel, Company CEO Rick George made the decision to purchase Petro-Canada, merging the two companies into a force to be reckoned with. This gutsy move cost Suncor $19 billion dollars. Fortunately, the merger proved successful and the company was able to watch oil prices return to a normal level. The CEO was able to see the great potential in being involved in the oil sands and took notice of the great opportunities before others did (http://www.theglobeandmail.com/globe-investor/suncors-george-an-optimist-who-got-the-big-stuff-right/article4246957/).

After reading various new releases, magazine articles and company website information, it’s no wonder that this company was able to successfully fight off the threatening grip of the Canadian recession. Positive measures of control and organizational practices were instituted to allow for success. Long term growth plans were discussed and planned. These along with responsible development initiatives have placed social, economical and environmental priorities at the forefront.  Suncor believes in high standards in company operations and sets extreme but reachable goals for the members of the company (http://www.suncor.com/en/responsible/302.aspx?linkid=sm3).  Progress controls are used, which keep a very close watch on the impacts associated with the social environment, the economic state of the company and its markets, as well as the environmental footprint and its effects on the country  (http://sustainability.suncor.com/2012/en/performance/performance.aspx).

I think Suncor Energy Inc. is a great example of a company that faced expected ruin, but through great leadership and organizational controls, was able to come out on top.

Thank you for taking the time to read my blog :)