The Strategic Evaluation of Oman Oil Company(S.
A.O.C)Introduction Oman Oil Company (S.A.O.C) is located atMuscat and was integrated in 1996. Visionof this company is being a preferred choice which delivers superior productsand services and mission is constantly enhance shareholder and customer valueby growth strategies, innovative products and better customer experiences.
Objectivesare investing at profitable businesses, creating meaningful employment, growingtalent and maximising value from Omani resources. It is making an importantcontribution to Sultanate’s plan of strategically expanding national economythrough investing in a number of commercial and industrial activities (Oman OilCompany, 2012). The objectives of this portfolio arecreating a strategic evaluation and analysis of the OOC.Evaluationand AnalysisThe Organizational Purposes Purposes of an organization are to connect,refresh and renew every corner of organization and help to increase the overallorganizational effectiveness. Employees are fully committed in organizationsthat have meaningful purposes and when an organization is disconnected from itspurposes, it can fail to work properly (Foster, 2017).
The modern theory ofChester Barnard defines organization to be a system having coordinatedactivities. According to Barnard the success of any organization is dependentupon the leader’s ability to form a consistent and cohesive environmentconsisting of well defined purposes and values (Mahoney and Godfrey, 2014).While the decision making theory states that a manager’s main duty is to makedecisions which is a process of deciding between various alternatives foraccomplishing the organization’s purposes. Applying the management decisionsfor achieving the purposes of an organization can result in innovation,creativity, organizational change, culture development and organizationallearning (Helena, 2014). Business Ethics of the company Ethically this company is doing very well and is following theutilitarian theory of ethics which means that company’s actions are providinggreatest benefits for greatest number (Amakobe, 2016).
OOC has done directcontribution to welfare of Oman’s economy over the years by doing newinvestments, contributing through revenues and paying good salaries to theemployees. In 2013, OOC made about 4 percent contribution to overall Omani GDP.OOC has been generating economic benefits and increasing economic value in Omanthrough spending patterns of their workforce, buying products and serviceswithin the country and also showing more preferences for the local businesses.OOC’s top priority is also working tirelessly to increase job growth in countryas population of young people is increasing day by day.
In past years, thecompany has played a major role in hiring people and has created new jobs andnew projects (Oman Oil Company, 2013). Position of Company in Bowman’s Strategic clock The OOC’s position in the strategicclock of Bowman is number six that is having standard product and increasedprice. When a company is at this position it is taking a chance by increasing pricesof its standard products. If this is accepted by consumers, it can enjoy ahigher profitability but if not then the company must adjust their prices. Butthis strategy will not work for long for any company due to competitive markets(Ahmed, 2014). The cost of OOC productsand services is high due to usage of expensive infrastructure and extractiontechniques. But this company has managed to maintain its high price so that itcan continue to attract the investments and meet its plans of striving infrastructurespending (Oxford Business, 2014). OOC iswell known for its standard products and every action taken by this company isaimed at satisfying the consumers (Oman oil, 2017).
Critical Analysis and strategic recommendations Contexts or Frameworks Critical Analysis Strategic Recommendations Strengths 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.
Weaknesses The company 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.
Threats Decrease of 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 competitors. Try to dig fresh oil wells to reduce unemployment.
Opportunities OOC can expand through emerging markets and new markets which can allow it to expand and diversify services (Wiki Wealth, 2017). Expansion through market development. Conclusion The OOC is constantly striving to deliver better products and servicesto the consumers. Ethically this company is doing very well and providinggreatest benefits for greatest number .It has done direct contribution towelfare of Oman’s economy over the years by doing new investments, contributingthrough revenues and paying good salaries to the employees. The OOC’s position in the strategic clock of Bowman is number sixthat is having standard product and increased price and it has tried tomaintain this by giving better performances.
This company has an innovativeculture and has been successful in providing clean energyaccessibility and availability for everyone. However, it has a weak managementand weak cost structure which needs to be improved. Word Count: 826