Confrontation Analysis on Overlapping Energy Conversion Target Market in an Energy Business Group

Abstract

With the rise of customer’s awareness to find more competitive and cleaner energy source, a conflict can appear in form of overlapping target market in a business group. The dilemmas faced by PT Gasco (the subholding) with PT Omni Co (the holding) to decide the best way to proceed on its client, PT Smelting Corp, whether to proceed the existing MFO or switch to natural gas business, put the business group in conflict situation. Another conflict also arises because PT Smelting Corp keeps negotiating the MFO contract and natural gas contract simultaneously. In studying the dynamics of conflict on inter-organizational relationship, the combination of drama theory principles, confrontation analysis, and methods for strategy generation, options, and evaluation can offers a method for conflict resolution and provide guidance to create appropriate and workable decisions. It is proposed a strategy that combine an effort to induce PT Smelting Corp’s to support PT Gasco’s regasified natural gas proposal and attempt to encourage PT Omni Co to develop fuller commitment to support the development of PT Gasco as its subholding.

Keywords: conflict, conflict resolution, confrontation analysis, dilemma, drama theory II, organizational relationship