SWOT Analysis of Abu Dhabi Oil-Free-Samples-Myassignementhelp.com

Question: Discuss about the Case Study of Abu Dhabi Oil Company. Answer: Introduction Abu Dhabi National oil company (ADNOC) is the largest oil company in the energy-related sector. The company came into existence in 1971 at Abu Dhabi, United Arab Emirates. The company supplies oil domestically as well internationally. The main emphasis is given to energy and oil. ADNOC has entered into the enterprise that deals with the oil exploration. The company conducts the operations in the two refineries that are situated in UAE. The production level of the company is around 3.5 billion barrels of oil per day and 2 billion production cube feet of gas per day. The company has also installed 150 petrol stations across UAE. The employees who are working in the company are approximately 19,300. To accomplish the goals in an effective manner, the company takes into consideration the ecological factors and also the main focus of the company is on health, safety, and environment. The objective of the company is to search and offer the products on national and on the international level. There are many companies of the world who have joined the hands with the ADNOC. The major effort of the company is to explore the areas that are undiscovered so that the business can be enhanced in a proper manner. So, in this report the main focus is given on the strategies that should be considered by the company, to enhance the profitability and productivity level. In the first phase of the report, the focus is given to the vision and mission statement of the company. SWOT analyzes is also taken into consideration to find out the issues that are faced by the organization. In the last phase of the report, the emphasis is given on the developing the strategies and goals that will help the organization to enhance the operations in the sustainable competitive environment. To survive in the competitive environment it is essential that the company should give focus on enhancing the profitability and the productivity level of the organization. Vision and Mission statement A vision statement of the company is considered as a roadmap that indicates that what the company wants to become. It takes into consideration the transformational initiatives that assist in setting the direction for the growth of the company. The mission statement of the company gives focus on the organization purpose. The vision statement of the ADNOC Company is to reach the position of the value-added supplier. It takes into consideration the extreme value products (Dikshit, 2017). The mission of the company is to regulate the ADNOC petroleum ports that ensure safe, efficient, Competent and the economical port operations. It also ensures the safe passage for all vessels who are visiting the petroleum ports and also protects the infrastructure, assets, and environment. The company also gives focus on enhancing the satisfaction level of the employees, so that they can give their best towards the activities that are conducted in the organization (Jewell, 2011). Situation Analysis Strength To sustain in the competitive environment it is analyzed that the company should have goodwill in the market. ADNOC is considered as a leader in the energy-related industry. The major strength of the company is that it deals in both domestic and international market (Tordo, 2011). The company also reduced the labor cost that has given a great advantage to the company. Due to the large market share of the company it is easy to attain the profitability and also the operations can be attained in an effective way (Heller, Mahdavi Schreuder, 2014). Weaknesses It is evaluated that every business has some weaknesses. By taking into consideration the ADNOC Company it is seen that the organization is not attaining the goals and objectives, due to the inefficiency in the working pattern of the employees. The difficult task for the organization is to enhance the future productivity level (Zhang, Ji Fan, 2014). Empowerment of the employees is also considered as an important aspect that is missing in the company. If the employees of the organization are not efficient, then it can be difficult for the organization to survive for the long term in the market. ADNOC should also maintain the trust of the customers before conducting any business transactions. It is evaluated that company suffers from huge loss due to the trust issues (Martinus, Sigler, Searle Tonts, 2015). Opportunities Every company has many opportunities that are prevailing in the market, but it requires a right time to grab the opportunities. ADNOC can easily access the market that gives direct impact on the profitability of the organization. The growth rate of the company can be enhanced if the company takes into consideration effective strategies (Polearu?, 2017). Abu Dhabi national oil company also has an opportunity to acquire new market and to enhance the productivity level. By taking into consideration ADNOC Company it is seen that it has an opportunity to enhance the level of income at the constant increase rate. In the emerging market, the company can achieve global expansion that gives positive impact on the working pattern (Ford, 2014). It is evaluated that the financial position of the company is good and success can be achieved easily. It is evaluated that the company has its presence in many countries, so the company can easily collaborate with the local players to grow (Phillips, 2016). Threats Due to the negative impact on the entire global economy and also the rise in the competition level in the market has increased the threats to the company. Change in taxes is one of the threats to the company. If there is a change in the tax rate, then the direct impact is given on the company. So the major threat to the company is due to the changing pattern of the tax rates. The company also has the external business risks that can give negative impact on the success of the organization. Increase rate of interest also gives impact on the activities of the organization (Luciani, 2016). If the rate of interest increases, then the profitability of the organization can be reduced. It is also one of the major threats that the ADNOC faces and affect the growth of the company. In this sector, the cost of the raw material is increasing day by day. It gives direct impact on the cost of production that will give decrease in the overall profitability of the organization (Hartley Medlock III, 2013). Strength a.) Leader b.) Domestic and international market c.) Large market area d.) Reduced labor cost Weakness a.) Inefficiency of the employees b.) Trust issues c.) Empowerment of the employees Opportunities a.) Growth rate b.) New markets c.) New acquisition d.) Income level Threats a.) Tax changes b.) Business risks c.) Increase in interest d.) Financial capacity Strategies, Goals, and objectives The company should take into consideration effective strategies so that the goals and objectives can be attained in an effective manner. To compete in the environment, it is seen that proper strategies should be considered so that the activities can be conducted smoothly. The critical issues that are identified are: Inefficiency of the Employees Empowerment of employees Competition level The inefficiency of the employees: This is one of the issue that is faced by the company. The employees of the organization are inefficient towards the activities. Inefficiency gives negative outcome on the activities that are conducted on the day to day to basis. The company should adopt the strategy to give training to the employees, who are not efficient towards the work (Eller, Hartley Medlock, 2011). ADNOC should take into consideration competence assurance management system. It is considered as a system that is based to enhance the quality skills of the workers. It is considered to maximize the performance level of the employees so that they can give their best towards the work (De Graaff, 2011). The main emphasis of this program should be towards the new employees so that the organization does not face any kind of problem in the performance standards. Job instructional training should also be provided to the employees to enhance their interest and raise the scope of the energy sector. The company needs proper planning to overcome the problems. The human resource management takes into consideration all types of training and also the development programs. The company should engage in the investment skill and development programs of the employees (Cunha Moneva, 2016). Training and development programs should be considered as a compulsory activity of the organization. The company gives focus on raising the capability of the employees to rise beyond the new challenges. Human resource management considers various factors for proper implementing the planning system with the help of training that can lead to an expansion of ADNOC (Shuen, Feiler Teece, 2014). To compete in the market, it is essential to train the employees and enhance the capability of doing the activities in an efficient manner. If the employees of the organization give their best towards the activities, then it can be easy for the organization to attain success. To make the employees efficient, training is only the strategy that should be considered by the company (El-Gharbawy Beydoun, 2016). Empowerment of employees: This factor is considered as an important and fundamental practice. The empowerment enhances the betterment and also gives success to the organization. The company should consider the strategy so that the activities can be managed properly. The empowerment of the employees can be attained by delegating the responsibilities. They can actively be involved in the decision-making process and also encourages to conduct a participative style of leadership and management. ADNOC should give focus on empowering the employees (Bass Chakrabarty, 2014). There are many strategies that must be considered by the company to empower the individuals of the organization. Transferring and sharing of responsibilities with the proper level and balance is also the great strategy that can help the organization to survive in the competitive environment. The top management should be involved so that the decision-making processes can be easily made. Empowerment is considered as an important aspect that should be taken into consideration by every organization so that the growth and profitability can be enhanced. If the company follows effective strategies, then it is seen that the growth can be attained (Anitha, 2014). Competition: ADNOC also faces the issue related to the increase in the competition level. If the company sells the product at high cost, then it can be difficult to survive in the market. So, the cost-effective strategy should be taken into consideration so that the growth can be attained in an effective manner (Ermida, 2014). To survive in the market, it is important that the company should give emphasis on hiring efficient candidates in the organization. If there are no efficient employees, then it can give negative impact on the working structure of the company. ADNOC should keep proper track on the availability of the human resource so that the work base can be managed. The strategy of the company is constructed on the strategic foundations like people, performance and profitability, and efficiency. These are the principles through which all the decisions related to strategic at ADNOC can be taken in the corrective manner (Elnaga Imran, 2013). These all are the strategies that should be considered by the company so that the goals and objectives of the can be accomplished Conclusion By analyzing the report, it is concluded that effective strategies should be taken into consideration so that the company can easily accomplish goals and objectives. In this report, the SWOT analysis of the company showcases the strength, weakness, threats, and opportunities for the organization. It is seen that there are various issues that are faced by the organization like Inefficiency of the Employees, Empowerment of employees and Competition level. These create hindrances to operate the activities in a proper manner. In this report, the main emphasis is given to the mission and vision of the organization. In the last phase of the report, SWOT analysis is discussed through which the issues are identified. Then the strategies are discussed on which the company should give focus, so that ADNOC can compete in the competitive environment. It is evaluated that if the organization does not consider proper strategies, then it can result in a negative outcome. When the company adopts proper and effective strategies then goals and objectives can be accomplished properly. References Anitha, J. (2014). Determinants of employee engagement and their impact on employee performance.International journal of productivity and performance management. Bass, A. E., Chakrabarty, S. (2014). Resource security: Competition for global resources, strategic intent, and governments as owners.Journal of International Business Studies,45(8), 961-979. Cunha, D. R., Moneva, J. M. (2016). Environmental Reporting of Global Oil Companies.International Research Journal of Finance and Economics, (158). De Graaff, N. (2011). A global energy network? The expansion and integration of non?triad national oil companies.Global Networks,11(2), 262-283. Dikshit, P. (2017). Measuring the itil framework maturity: case of abu dhabi national oil company (ADNOC).ZENITH International Journal of Multidisciplinary Research,7(3), 37-48. El-Gharbawy, S., Beydoun, W. (2016, May). Technology Qualification for ADNOC Group Operations in the Arabian Gulf. InOffshore Technology Conference. Offshore Technology Conference. Eller, S. L., Hartley, P. R., Medlock, K. B. (2011). Empirical evidence on the operational efficiency of National Oil Companies.Empirical Economics,40(3), 623-643. Elnaga, A., Imran, A. (2013). The effect of training on employee performance.European Journal of Business and Management,5(4), 137-147. Ermida, G. (2014). Strategic decisions of international oil companies: Arctic versus other regions.Energy Strategy Reviews,2(3), 265-272. Ford, J. K. (2014).Improving training effectiveness in work organizations. Psychology Press. Hartley, P. R., Medlock III, K. B. (2013). Changes in the operational efficiency of national oil companies.The Energy Journal,34(2), 27. Heller, P. R., Mahdavi, P., Schreuder, J. (2014). Reforming national oil companies: Nine recommendations.Natural Resource Governance Institute. https://www. resourcegovernance. org/publications/reforming-national-oil-companies-nin e-recommendations. Jewell, J. (2011). Ready for nuclear energy?: An assessment of capacities and motivations for launching new national nuclear power programs.Energy Policy,39(3), 1041-1055. Luciani, G. (2016).The oil companies and the Arab world. Routledge. Martinus, K., Sigler, T. J., Searle, G., Tonts, M. (2015). Strategic globalizing centers and sub-network geometries: A social network analysis of multi-scalar energy networks.Geoforum,64, 78-89. Phillips, J. J., Phillips, P. P. (2016).Handbook of training evaluation and measurement methods. Routledge. Polearu?, V. (2017). Investment Management Resources in the distribution channel of international oil companies.Development. Shuen, A., Feiler, P. F., Teece, D. J. (2014). Dynamic capabilities in the upstream oil and gas sector: Managing next generation competition.Energy Strategy Reviews,3, 5-13. Tordo, S. (2011).National oil companies and value creation. World Bank Publications. Zhang, H. Y., Ji, Q., Fan, Y. (2014). Competition, transmission and pattern evolution: A network analysis of global oil trade.Energy Policy,73, 312-322.