Question
Case Study: Expanding payment service across BOIL stations and service centres in Africa BOIL plc was established in 1968 by the Organization of African Unity
Case Study: Expanding payment service across BOIL stations and service centres in Africa BOIL plc was established in 1968 by the Organization of African Unity (OAU) which transition to the African Union (AU) in 2002 to engage in exploration, production and distribution of petroleum and associated products. BOIL has registered three subsidiaries: BOEnergy Company limited, a Bulk Oil Company (BDC) which distributes petroleum products to oil Marketing Companies (OMCs), BOIL Offshore Limited, an upstream subsidiary, and BOBitumen, a major supplier of bitumen and producer of quality polymer modified. The synergy between BOIL and BOENERGY has pushed the Company as a group to grow to a level we are all proud of. In 2007, the company was simultaneously Johannesburg stock exchange, Nairobi stock exchange and Ghana stock exchange. The African Union owns 34.23% of the shares while the other 65.77% are owned by individuals and other corporate bodies. BOIL plc has a nine member board of directors, three appointed by the African Union. The company headquarters is based in Accra, Ghana and also operate three regional offices in Lagos, Nigeria for West and Central Africa, Johannesburg, South Africa for Southern African and Nairobi, Kenya for East, and North Africa. The management team at the headoffice include: President and CEO, vice president exploration, vice-president operations (Bulk-storage and distribution), Chief finance officer, chief risk and compliance officer, chief HR and Legal service officer. In the marketing and distribution of petroleum products, the company operate two distinct business models; i) own and manage their own stations and ii) give franchise to individual and companies to operate stations under the BOIL logo. Professor Ndinga Otim, Commissioner, Economic Affair at the African Union, is one the three representative of the AU on BOIL board since 2019 and has been advocating that BoCard and BoMoney payment app. which has been operating since 2015 in a number of West African countries (Ghana, Nigeria, The Gambia, Liberia, and Sierra Leone). The app in each country is managed by each country BOIL subsidiary independent from one another without cross-border payment capability. He wants it redesigned to include cross-border payment capabilities and interoperability. Currently, BOIL customers can pay for products at Stations in a smart way: make purchase using QR Code, BoCard and BoMoney app. (payment using any mobile wallet). Features include; inter-BoCard funds Transfer, view statement and account balance. Across Africa, BOIL has more than 221 million clients according to their 2021 annual report to shareholders. However, one of the main challenges facing businesses and their clients in cross-border payment across Africa is the existence multiple national currencies and its associated foreign exchange gain/loss any time cross-border payment is made due national currencies volatility. The Pan African Payment and Settlement Platform (PAPSP) was design to facilitate payment across African but the platform rely on the United States dollar as the platform currency and national currencies are converted through forex exchange for cross-border payment. Future Prospects The Company intends to establish itself in every African country; the name must be a household one and BOIL should be associated with quality products and excellent service delivery. BOIL will continue to extend its operations towards the upstream business; providing other services apart from bunkering in the upstream sector is an immediate goal. The Company also aims at improving added services such as the digital payment system (BOIL wallet) to attract more customers and ensure interoperability of payment across all BOIL stations in Africa and among BOIL wallet users. Note: If needed, you are free to make assumptions if (1) the assumptions do not conflict with anything in the text (2) the assumptions are clearly stated and reasonable. Required: (i) With the aid of diagram identify and draw the organisational structure at BOIL plc. (ii) With the aid of a diagram model existing mode of payment at BOIL Stations (iii) Identify the relevant stakeholders in the BOIL digital wallet project (iv) Identify project risks associated with this project (v) Proposed requirements for the BOIL Digital wallet project (including use cases and scenarios ) (vi) Illustrate the interface/prototype of your proposed solution
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