Business model

• Conciseness

Key observations:

Cairn Energy’s 2013 business model concisely demonstrates the wide range of factors influencing the company’s value creation proposition. The readers obtain an understanding on how the company delivers material growth from a portfolio by creating, adding and realising value for a variety of core stakeholders. Most importantly, Cairn Energy’s report shows that its business model is designed to tie long-term strategy to the overarching mission, guiding values, more immediate objectives, key performance indicators and core stakeholder audiences.

Interestingly, Cairn Energy tries to differentiate between the value ‘created’, ‘added’ and ‘realised’, thereby recognising the different stakeholders and ways in which value is affected.