Building and Marketing High Performing Organisation

This coursework A assessment discusses the importance of implementing the EFQM Business Excellence model in organisations like Saudi Aramco to ensure quality monitoring of products and processes. It includes a brief summary and critique of the EFQM model, application of the model in the context of the chosen organisation, justification of supply chain/operations strategy, and more.

Running head: Building and Marketing High Performing Organisation
Coursework A Assessment
Building and Marketing High Performing Organisation
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1Building and Marketing High Performing Organisation
Table of Contents
1.0 Executive summary..............................................................................................................3
2.0 Introduction..........................................................................................................................3
3.0 Brief summary and critique of the EFQM Business Excellence model...............................4
4.0 Application of the EFQM Business Excellence model Criterion 4 and 5 and theory in the
context of the chosen organisation.............................................................................................4
5.0 Justification of supply chain/operations strategy.................................................................9
6.0 Conclusion..........................................................................................................................11
Reference lists..........................................................................................................................12

2Building and Marketing High Performing Organisation
1.0 Executive summary
In order to highlight the development of economic and resource based activities, it is
important for the Saudi Aramco Company to follow the proposals and standing point of
EFQM. Following the clauses of EFQM, it is important for the company to bring in quality
monitoring of both products and process so that they can deliver the best amount of goods
while responding to the demand within the economy. Now in order to minimise the gaps that
is being present within the company, it is important for them to bring in high quality of
resources and it is appropriately required to indulge to have a close look on the whole
process. Now in order to bring in high quality of resources based activities it is important for
the Saudi Aramco Company to bring in high quality of human and capital resources. It is an
important concept for the management study because of the fact that incorporating better
level of resources will bring in better level of production. Through the involvement of better
monitoring it becomes easy to identify final process in an efficient manner. It is highly
beneficial for the company to bring in better monitoring process the company is mainly will
be able to grow.
2.0 Introduction
Importance of the study is lying on the implementation of EFQM model that will be
obviously helping companies like Saudi Aramco to bring in strict maintenance of quality in
order to ensure production. The EFQM model or European Foundation for Quality
Management has been founded in 1990 so that organisations can learn many new things from
each other and can improve their overall performances (AKKUCUK & GENCER, 2017).
Moreover, this will definitely going to indulge the development of resource based activities
so that employees of the chosen organisation to look over the potentiality and future

3Building and Marketing High Performing Organisation
perspectives in terms of operation. It is important for the companies to look at the
improvement of the business and it is highly profitable in the long run.
3.0 Brief summary and critique of the EFQM Business Excellence model
The main aim of the EFQM model is to help the managers and directors in meeting
with the training facilities that will definitely indulge in the incorporation of better level of
resource utilisation in form of both human and capital resources. Importance of the fact that
learning through the sharing of process will enhance the rate of production of these
organisation like Saudi Aramco. Almost 30,000 organisations has been using the EFQM
model in Europe in order to improve their performances (Araújo & Sampaio, 2014). Five
areas that are mainly taken care of By EFQM is leadership, people, policy & strategy, people
& resources and process. The EFQM excellence model is mainly having three main
components-concepts, criteria and radar.
In highlighting the criticism of the EFQM model one of the major criticism that has
been seen that most of the industries will not give equal weightage to the factors that are
being monitored by EFQM. The second criticism that has been found while making deep
analysis of EFQM model. The complexity of the model is one the criticism as the model is
having 9 categories and 33 sub categories (Araújo & Sampaio, 2014). It has been seen that
most of the companies face problems while maintaining the balance between categories and
sub-categories.
4.0 Application of the EFQM Business Excellence model Criterion 4 and 5 and theory in
the context of the chosen organisation
Three main thing that is interlinked with the development of EFQM business
excellence model are concepts, criteria and Radar. Use of sustainable theory is mainly
looking to incorporate the increase in the development of EFQM in a better model.

4Building and Marketing High Performing Organisation
Figure 1: Concepts within EFQM model
(Source: efqm.org, 2019)
The above diagram is basically showing the fact that through deep inter correlation
with enablers and results is basically having nine important parts. Leadership is strongly
associated with people, policy & strategy and partnerships & resources. Now criterion 4 is
claiming the fact that partnership and resources is an important factor that is helping in the
development of the business. Through the incorporation of people and partnership companies
like Saudi Aramco will obviously aim in hiring employees that will definitely help in the
accumulation and spread of resources (Escrig & de Menezes, 2015). Moreover, it has been
seen that incorporation of important strategies will definitely helpful for the companies to
expand their business. Making a deep intercorrelation with the process, the company will be
able to indulge in better outcome. EFQM mainly highlights the quality control of the products
and it is important for the factor in the sense that in the oil and natural gas industry,
monitoring the quality will be crucial that will definitely going effect largely on the delivery
of the products. The main aim of the Saudi Aramco company is to bring in products like
chemicals, base oils, and finished lubricants (Ezzabadi et al. 2015). Not only this, the

5Building and Marketing High Performing Organisation
company is mainly emphasizing in the expansion of size and quality of oil reservoirs and they
are aiming to improve the exploration and recovery of the oil mills.
The foundation of sustainable company is to ensure the health and safety of the
employees working within the company. Now leadership activities of a company not only
means the expansion of resources but also to ensure the safety of employees. Safety
measurement is important in the sense that through the business expansion and business
strategies has ensured the safety management of the company has ensured the organisation to
integrate safety within the employees. About 79% of the vehicle is fitted with driver
performances devices and more than 3000 contract employees has been benefited from the
safety measurements that has been taken by the government and as well as private companies
(Fonseca, 2015).
Through the involvement of resources and better level of security, the company has
provided huge level of the security system that has improved the development on the other
hand, using the sustainable development within the oil industry is crucial in the sense that
most of the oil drilling machines and the oil drilling wells will be more prone towards the
development of causality of employees. Introduction of EFQM has helped most of the
companies in the oil and petroleum industries to deal with quality monitoring of the products
as well as for the process that are mainly associated with the oil productions.
The criterion 5 is mainly highlighting the fact Processes, Products and Services are
definitely going to indulge in better technologies within the industry. Through the
involvement of better quality of process, it is important for the Saudi Aramco to indulge in
the better implementation of EFQM (Matthies-Baraibar et al. 2014). Moreover, it is the
important strategy that will definitely aiming to increase the position of the company to
increase the development of process monitoring. Determining the products will definitely

6Building and Marketing High Performing Organisation
going to indulge in the better drilling of oil reservoirs. When the demand is high then most of
the companies tries to mix oil with some other products. It is an important strategy for the
company like Saudi Aramco to indulge with the incorporation of better co-ordination and
better communication with the managers regarding the quality of the products will definitely
help the companies in dealing up with their competitors (Mohsen Allame et al. 2014).
Identification of the skills and potentiality gaps that are lying within the employees is
also an important part of business strategy. Generally the oil industry is very much sluggish
in nature in terms of revenue growth and employees compensation. This is the main reason
why the drain of human wealth is common in this industry and migration of employees to
high capital zone is adding more woes to the situations (Savić et al. 2014). Now restricting
the drain of human resources, the Saudi Aramco is mainly aiming to treat the employees with
the upgraded technologies. Now in order to incorporate the safeness of the employees’
efficient level of communication is highly required.
Through the involvement of communication, the company will be able to identify the
presence of education that are being present for the employee’s working in this industry. Now
if the gaps in the education can be decreased then the employees will start to lead a
sustainable life. It is important for the companies to check the safeness of employees EFQM
will obviously allow the development of business by identifying the gaps that are currently
having within the management of the managers. In oil sector, the incorporation of high
causality within the oil reservoirs and oil drills, mangers need to give proper level of training
to employee regarding the use of safety tool kit and other safety measures (Suárez et al.
2017). In order to incorporate the development of business and expansion of business in this
sector the company need to bring an up-gradation to the technologies. Comparing the existing
business strategy with the European model will definitely help the company in upgrading the

7Building and Marketing High Performing Organisation
equipment and other facilities. Regular monitoring of the systems will bring in innovations in
the technologies that will improve the long run progress of the company.
The development of channels to distribute the resources will definitely help the
company in bringing in better level of technology introduction. Better monitoring of
resources will be definitely beneficial for the improvement in the overall resource
development that will increase the resource based activities and participation of resources
will increase the overall contribution of the employee towards the company. Holding the
hand of EFQM, company like Saudi Aramco will definitely aim in improving the
environmental sustainability so that incorporation of highly sustainable environment within
the oil industry. Now in order to indulge better level of communication, it will be highly
beneficial for the company to increase the overall level of innovation will be brought within
the company.

8Building and Marketing High Performing Organisation
5.0 Justification of supply chain/operations strategy
In order to bring in innovations within the supply chain management, it is important
for the Saudi Aramco that are dealing with the oil and natural gas in Saudi Arabia. Strategic
management is important in the sense that producing oil, petroleum and natural gas
production and supply in the Saudi Arabia. Taking the EFQM model, the company is mainly
looking to increase the monitoring of the quality of the oil production and oil filtration
process. Through the incorporation of EFQM, the company will mainly look to incorporate
the opportunity to educate the employees with advanced technologies (Suárez et al. 2017).
The company is mainly producing five different grades of oils in the form of Arabian Heavy,
Arabian Medium, Arabian Light, Arabian Extra Light, and Arabian Super Light. Now when a
company is showing that much level of diversity within the production thus it is important for
the company to bring in high quality of monitoring both process and resources. This is mainly
done by the company in order to ensure the future oil refinery in process so that they can
provide best quality of oil while meeting the demand of the customers.
It is important for the company to bring in supply chain management so that the
competitors companies can be easily tackled by supplying superior quality of products. Some
of the important strategies are being followed by the companies dealing in the oil and natural
gas industry. Now it is important to link up EFQM with the strategies of the industries
dealing in oil and natural gas industry.

9Building and Marketing High Performing Organisation
1. Cutting the cost
Cutting the cost within the industry of oil and gas is important strategy that will
definitely increase the overall production. Due to overall shock in price within the oil
industry, it has been seen that companies dealing in the oil industry has to bear huge amount
of costs. Due to inflation, since 2009, most of the companies are facing increase in price by 5-
10% per barrel depending on the geographical locations. Most of the offshore oil industry is
having high breakeven point. For example, in 2010, the cost of extracting a barrel of oil was
around $8 per barrel and three years later, the cost of extracting barrel will be around $17. In
order to increase the overall efficiency of the oil extraction, it is important for the companies
to deal with many kinds of middleman and other dealers that actually increases the price of
the productivity. It is important to reduce the cost of middlemen so that overall cost structure
of the companies will minimise.
2. Vertical integration-one stop shop
It is important for the companies to deal with multiple shops. Most of the companies
either deals with refineries that are refining the crude oils and petroleum. Now if the vertical
integration is being implemented within oil companies, it is important to bring in high rate of
collaboration. Now with the increase in the communication and collaboration, Saudi Aramco
will definitely minimise the total amount of costs that will be crucial in increasing revenue
through the increase the production. Definitely the vertical integration will be one of the
crucial factor that will definitely help in implementing better level of production. Currently
many companies are outsourcing many products and services that can lead up to 30% of
saving in overall costs. Another example can be taken in the form of Schlumberger’s SIS
division is doing the business in oil and petroleum industry relying on the petrel software
platform. This software actually helps in designing the overall structure of the field. This is

10Building and Marketing High Performing Organisation
an important aspect that taking the help of architecture many companies are facing huge drain
of money. In 2013, formation of One Subsea alliance is helping in the development of better
level of communication within the suppliers of oil industry. CAM’s wellhead and surface
technology is helping in the drilling of oil and petroleum and it has estimated revenue of
around $600 million.
3. New revenue models
Companies are mainly dealing with new revenue models that is going to help in the
incorporation of high growth of revenues. Moreover, Subsea, Umbilicals, Risers, Flowlines
(SURF) solutions is closely related with equipment portfolio and it will bring in revenue of
around $200 million around 2018 if they are well maintained in an efficient manner. Through
the involvement of resource development. In order to indulge the incorporation of business in
a suitable way will obviously bring in high class of production based activities that will
increase the revenue of oil and natural industry. Co-operation is almost important for the
development of this kind of revenue generation. This will definitely increase the overall
development of resources. Through the incorporation of strategy it is important to indulge in
the development of resources in the oil and natural gas industry.
6.0 Conclusion
The whole study is highlighting the fact that in order to increase the growth of
revenue and productivity, it is required to bring in communication and Saudi Aramco must
increase the monitoring of the qualities through the EFQM technologies. This is an important
aspects in the sense that introduction of sustainable relationship with the resource team so
that the efficient distribution of resources can take place. In order to indulge the incorporation
of better quantity of resources it has been seen that Saudi Aramco must increase the level of
high communication and strong quality control of the managers.

11Building and Marketing High Performing Organisation
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