The Strategic Evaluation of Oman Oil Company
Oman Oil Company (S.A.O.C) is located at
Muscat and was integrated in 1996. Vision
of this company is being a preferred choice which delivers superior products
and services and mission is constantly enhance shareholder and customer value
by growth strategies, innovative products and better customer experiences. Objectives
are investing at profitable businesses, creating meaningful employment, growing
talent and maximising value from Omani resources. It is making an important
contribution to Sultanate’s plan of strategically expanding national economy
through investing in a number of commercial and industrial activities (Oman Oil
The objectives of this portfolio are
creating a strategic evaluation and analysis of the OOC.
The Organizational Purposes
Purposes of an organization are to connect,
refresh and renew every corner of organization and help to increase the overall
organizational effectiveness. Employees are fully committed in organizations
that have meaningful purposes and when an organization is disconnected from its
purposes, it can fail to work properly (Foster, 2017). The modern theory of
Chester Barnard defines organization to be a system having coordinated
activities. According to Barnard the success of any organization is dependent
upon the leader’s ability to form a consistent and cohesive environment
consisting of well defined purposes and values (Mahoney and Godfrey, 2014).
While the decision making theory states that a manager’s main duty is to make
decisions which is a process of deciding between various alternatives for
accomplishing the organization’s purposes. Applying the management decisions
for achieving the purposes of an organization can result in innovation,
creativity, organizational change, culture development and organizational
learning (Helena, 2014).
Business Ethics of the company
Ethically this company is doing very well and is following the
utilitarian theory of ethics which means that company’s actions are providing
greatest benefits for greatest number (Amakobe, 2016). OOC has done direct
contribution to welfare of Oman’s economy over the years by doing new
investments, contributing through revenues and paying good salaries to the
employees. In 2013, OOC made about 4 percent contribution to overall Omani GDP.
OOC has been generating economic benefits and increasing economic value in Oman
through spending patterns of their workforce, buying products and services
within the country and also showing more preferences for the local businesses.
OOC’s top priority is also working tirelessly to increase job growth in country
as population of young people is increasing day by day. In past years, the
company has played a major role in hiring people and has created new jobs and
new projects (Oman Oil Company, 2013).
Position of Company in Bowman’s Strategic clock
The OOC’s position in the strategic
clock of Bowman is number six that is having standard product and increased
price. When a company is at this position it is taking a chance by increasing prices
of its standard products. If this is accepted by consumers, it can enjoy a
higher profitability but if not then the company must adjust their prices. But
this strategy will not work for long for any company due to competitive markets
(Ahmed, 2014). The cost of OOC products
and services is high due to usage of expensive infrastructure and extraction
techniques. But this company has managed to maintain its high price so that it
can continue to attract the investments and meet its plans of striving infrastructure
spending (Oxford Business, 2014). OOC is
well known for its standard products and every action taken by this company is
aimed at satisfying the consumers (Oman oil, 2017).
Critical Analysis and strategic recommendations
Contexts or Frameworks
OOC has worked hard and achieved profitability and high
operational performances. It provides career development and has been
successful in providing clean energy accessibility and availability for
everyone. With innovative culture, OOC has continued to prosper where many companies have failed.
has weak management which can reduce profits and increase business risks. It
also has a weak cost structure.
A good PMS (performance management system)
and better HR policies should be implemented.
gas and oil prices can trigger changes at this company in near future. Due to
low oil prices OOC can trench some of their staff. It will have to face
pressure of diversifying their operations to compete with international
Try to dig
fresh oil wells to reduce unemployment.
expand through emerging markets and new markets which can allow it to expand
and diversify services (Wiki Wealth, 2017).
through market development.
The OOC is constantly striving to deliver better products and services
to the consumers. Ethically this company is doing very well and providing
greatest benefits for greatest number .It has done direct contribution to
welfare of Oman’s economy over the years by doing new investments, contributing
through revenues and paying good salaries to the employees. The OOC’s position in the strategic clock of Bowman is number six
that is having standard product and increased price and it has tried to
maintain this by giving better performances. This company has an innovative
culture and has been successful in providing clean energy
accessibility and availability for everyone. However, it has a weak management
and weak cost structure which needs to be improved.
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