Global Strategy Essay
Abu Dhabi Gas Industries Ltd (GASCO) is involved in the processing of natural and associated gas in Abu Dhabi. GASCO was established in 1978 as a joint venture between Shell, Abu Dhabi national oil Company (ADNOC) and total each of them having 15% shares and Partex with 2% shares by late Sheikh Zayed bin Sultan Al Nayhan, the President of the United Arab Emirates and Ruler of Abu Dhabi, in order to make use of Abu Dhabi’s momentous wealth of associated gas. Today, at GASCO the associated gas is being transformed into a wide range of marketable products, which are exported all over the world as well as used domestically.
Abu Dhabi Gas Company (ATHEER) was integrated with GASCO in 2001 which made GASCO recognized as one of the world’s largest gas processing companies with the process capability exceeding 5300 million standard cubic feet of gas per day. (Abu Dhabi Gas Industries Ltd, 2009) Importance of using appropriate Strategies in the competitive business world: With the passage of time the world has globalized and has advanced technologically, in this era of technology and globalization competition has increased rapidly.
For this purpose it has become very important for the organizations to develop and
Need essay sample on "Global Strategy"? We will write a custom essay sample specifically for you for only $ 13.90/page
Appropriate strategies are very important as they are the backbone of any company and they determine the direction of the organization. (Bettis and Hitt, 2007) The current Strategy of the company: Currently the company is using the following strategies: 1. GASCO is using ISO certification for its processes in order to deliver: • Efficient and effective processes • Increase shareholder value • Enhance customer-satisfaction • Improve employee motivation, awareness and morale • Reduce waste and increase productivity. 2. Expansion and excellence:
• Several Multi-dollar expansion activities in the pipelines • To improve performance in long-term gas resource management, asset integrity, become employer of choice; emiritization and achieve excellence in all business activities. 3. Compliance and certification: • To Establish and maintain quality standards • Map all major business procedures and processes • Verify the implementation of procedures. 4. Effectiveness and optimization: • Identify inefficient procedures • Redefining and remodeling business procedures and processes • To create an environment that is continuously improved.
5. Integrated quality management system: • Integration of ISO 9001with ISO 14001, ISO 29001 and ISO 18001. • To ensure visible impact upon the business and the environment • To build commitment and ownership at all levels. Strategy of the department: I have worked at the health, safety and environment department. The management of health and safety is very important for GASC O. The management of health, safety and environment, vision statement and policy all provide a framework for the execution of the health safety and environment at GASCO.
Following is the strategy used by the health, safety and environment department: 1. All the divisions of GASCO develops annual health, safety and environment action plans for the implementation of the various related actions that are transformed into different jobs and goals which are flowed down the company. 2. This process is reviewed and monitored on a routinely basis to keep thing s realistic. 3. There is also a health, safely and environment auditing program consisting of different levels of audits whose results are trailed to the ultimate completion via a closeout process. 4.
The health, safety and environment issues are performed with the participation of all the employees. Strategy school used by GASCO The strategy school used by GASCO is Learning and Flexibility. The organization believes in constantly learning and has a flexible structure. At GASCO the management and employees believes in change that benefits the customer as well as the organization. They believe in providing best to the customers. The strategies at GASCO emerge and change continuously. This strategy school helps the organization to keep updated. This also helps to keep the employees and the customers satisfied.
Employees there feel free and work hard. (Mintzberg and Ghoshal, 2003) SWOT Analysis of the company’s strategy: SWOT stands for: 1. Strengths: Following are the strengths of the company • ISO Certification • Expansion Programme • Quality management system • Health, safety and environment precautions. 2. Weakness: Following are the Weaknesses of the company’s strategy • Little emphasis on marketing and promotional activities. 3. Opportunities: Following are the opportunities that will be available for the company in the future because of the strategy.
• ISO certification will play a major role in the promotion of the company • Health, safety and environment can attract potential employees. 4. Threat: following are the threats that the company might face in future • Expansion may be difficult • There will be global competition for the organization in the future. (Fine, 2009) Changes in the organization’s industry The gas industry is changing continuously sometimes there are changes in the laws like changes in the labor laws; sometimes there are changes in the drilling laws these changes in the laws have a great impact upon the business.
These sometimes increase the cost or may create problem for the organization in one way or the other. Right now there is no mention of such changes in the company’s strategy. But it is very important for GASCO to mention and make strategy related to the changes occurring in the industry as the company is operating on global level. Growth and change should never be stopped and in this regard it is very important for a company to keep itself updated with the changes in its industry. Impact of significance and complexity of culture in international trade on GASCO
It is very important to understand the business culture of the country where the company is operating otherwise the company will have to suffer loss and get a bad reputation in the market. Same goes for GASCO, understanding the culture of the country is very important for any company as it affects the business directly. Besides the culture is a force that is very complex as it varies from country to country, it also has a significance influence on the operation and activities. The culture of any country includes the religion, language, ethnic group, ideology and the way of living of the people of that country.
There is special need for the company to have complete knowledge of these cultural factors (Becker, 2000). Future of the Organization GASCO is doing well at the current stage there is a lot of scope for the company to grow rapidly as it has made a good name in the domestic as well as the international market. But in the future the company has to be very careful and attentive because of the new entrants and the competitors. Besides this there is a special need for the company to constantly revise its strategies and keep itself technologically updated as technology will play a vital role in future.
In short the Future of GASCO is very bright and promising as it has made a good reputation but it has be careful and do some little changes as it is the need of the time and era New competitive strategy for GASCO Following is the new strategy for the organization that will helpful in future to achieve greater success: 1. Use ISO certification to deliver: • Increase shareholder value • Enhance customer-satisfaction • Improve employee morale awareness and motivation • Reduce waste and increase productivity. • proficient and effective processes • To become employer of choice.
2. Expansion and excellence: • Several Multi-dollar expansion activities in the pipelines • To improve performance in long-term gas resource management, asset integrity, become employer of choice; emiritization and achieve excellence in all business activities. 3. Compliance and certification: • To Establish and maintain quality standards and identify inefficient ones. • Map all major business procedures and processes • Verify the implementation of procedures. 4. Effectiveness and optimization: • To create an environment that is continuously improved.
5. Integrated quality management system: • Integration of ISO 9001with ISO 14001, ISO 29001 and ISO 18001. • To build commitment and ownership at all levels. 6. Marketing and promotional activities: • Sponsor different business and charity events. • Promote the products through ads on TV, Billboard and newspaper. 7. Dealing with changes in the industry in future: • Keep up to date info regarding the different laws effecting the business • Keep some margin in cost. References: Bettis, R, A and Hitt, M, A. (2007). The new competitive landscape. Strategic management Journal, volume 16, pages 7-19.
Retrieved August 13, 2010. From Wiley Online library. Mintzberg, H and Ghoshal, S. (2003). The strategy process: concepts, contexts, cases. 4th edition. Location: Pearson education. Becker, K. (2000). Culture and international Business. Location: Routledge Abu Dhabi Gas Industries Ltd. (2007 to 2009). GASCO Abu Dhabi Gas Industries Ltd. Retrieved August 13, 2010, from http://www. gasco. ae/gasco2007/index. html Fine, L, G. (2009). The SWOT Analysis: Using Your Strength to Overcome Weaknesses, Using Opportunities to Overcome Threats. Location: Booksurge Llc