ALS Arabia Biyaq Business Plan – 2018

The ALS Arabia Biyaq business plan – 2018 is a comprehensive document outlining the company's business structure, investment actions, expansion plans, operation, and maintenance activities. It highlights the key drivers of the economy, emerging markets, volatility, size, growth, main segments, leading players, competition, strength of competition, market performance, and future growth prospects. The report also provides information on ALS Arabia Biyaq's financial structure, which includes financing by ALS Arabia through a joint venture acquisition agreement, initial financing, and subsequent investment actions. The document is relevant to students seeking past papers and solved assignments for business-related courses.

ALS ARABIA BIYAQ BUSINESS PLAN – 2018

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TABLE OF CONTENTS
1.Executive Summary.........................................................................................................................4
2.Objectives.......................................................................................................................................5
3.ALS Arabia Biyaq Business Model....................................................................................................6
3.1The Business Model:....................................................................................................6
4.Business Planning Elements............................................................................................................7
4.1Vision, Mission, Values and Strategies:.......................................................................7
5.The Organization Structure.............................................................................................................8
6.Previous Sales Performance and Sales Forecast 2017 (Actual Jun-Sep 2017; Budget Oct-Dec 2017).......8
7.Market Intelligence, Analysis and Summary...................................................................................9
7.1Summary Tables:.........................................................................................................................12
8.SWOT Analysis..............................................................................................................................14
9.Competitors..................................................................................................................................15
10.Advantages and Strength of ALS Arabia Biyaq ...........................................................................18
10.1Service Capabilities..................................................................................................18
10.2Customer Segmentation..........................................................................................18
10.3Key to Success.........................................................................................................18
11.Business Strategies......................................................................................................................19
12.Strategy Execution and Performance Measurement..................................................................22
13.The Marketing Plan.....................................................................................................................23
13.1 The competitive advantages ...................................................................................................24
14.The Financial Plan.......................................................................................................................27
15.Conclusion...................................................................................................................................27
16 Recommendations: ...................................................................................................................28
REFERENCES.....................................................................................................................................29
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1. Executive Summary
ALS Arabia Biyaq LLC (“the company”) is a joint venture (JV) operation between ALS Arabia and
Biyaq Laboratories LLC. The establishment of the company is consistent to ALS Arabia’s vision of
providing world class analytical service with exceptional quality and reliability. This Business Plan
document outlines the direction of the company and defines the strategic initiatives undertaken to
realize its goals and objectives in the coming five years. The objective of this Business Plan document is
to convey to the top management and to all stakeholders the company’s business model and its
strategic intent that incudes setting-up the laboratory facilities and capabilities, marketing and sales
strategies, and enhancement of market shares in Oman and financial information.
The elements of the business model is aligned with and consistent to the corporate vision, mission,
inherent values and compounded into its Strategic Themes namely Operational Excellence and Growth,
Quality of Service, People Empowerment and HSE Performance. The following House Model shelters the
leading elements of the Business Plan.
Market Intelligence and Analysis show the promising and lucrative market potential of doing business in
Oman. With due consideration of the elements both favorable and unfavorable in gaining market shares
and getting ahead from competing players in the market, the company business plan aims at realizing its
strategic goal and objectives.
The goals will be achieved by a strong analytical laboratory team that is capable of multi-tasking and
working across disciplines. The company will grow via a strong business development and client service
teamed model, ensuring client focus with high quality, fast and efficient service.
A strong compliance to international and local standards under GSO (over 10,000) and almost 2000
mandatory standards applying mainly on food products, construction material, toys, cosmetics, and
motor vehicles act as positive drivers for laboratory development. Standards apply equally to locally
made and imported products.
A number of water related projects including processing of wastewater as well as solid waste processing
and handling, and the growth in these programs offer further environmental testing opportunities.
ALS Arabia Biyaq Laboratories is facing many challenges which are related to the market. It has faced
several challenges in response to this market, such as strong competition; and a lack of business
relationships with the government sector. Hence, identifying these issues and market challenges has
become a key driver to develop the lab services in order to be successful and sustainable in the market.
Moreover, analyzing the market position of our testing price and the effect of internal factors on the
business environment will be very helpful. Therefore, ALS Arabia Biyaq has undertaken a detailed SWOT
analysis and has a strong understanding of their place in the market. The following summarizes the road
to success of ALS Arabia Biyaq given the number of competitors in the market with similar activities and
services:
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 Offering Wide-Range of Lab Testing Services
 Meeting Customer Requirements and Market Demands
 Consistent and High Quality of Services
 Superior Customer Service
 Cost-effective Operations
Customers are the central focus of ALS Arabia Biyaq’s business. Meeting customers’ requirements and
satisfying them are the end result or indicator of how well the company is managing and executing its
business.
“Strategic Themes” aimed at realizing the company’s goal and objectives include: Operational Excellence
and Growth, Quality of Service, People Empowerment and HSE Performance.
These themes in turn will be achieved by developing and expanding laboratory service capabilities;
increasing market penetration and service awareness; maintaining, implementing and expanding ISO
17025 accreditation; attracting, developing and retaining talented, performing personnel; and operating
with a high standard of HSE performance. The company shall maintain a disciplined approach in
achieving the business strategic initiatives and goals through performance monitoring (KPIs).
A comprehensive marketing strategy will complement the Business Development initiatives leading to a
targeted ROS of 40% by 2022.
The business plan will ensure ALS Arabia Biyaq has a clear vision and direction to becoming the number
one laboratory provider to the oil and gas, environmental, food and minerals industries of the Sultanate
of Oman and region.
2. Objectives
The Business Plan document is prepared mainly to achieve the following objectives:
 The objective of this business plan is to investigate the issues and challenges that our
laboratories are facing currently, such as samples testing fees and lack of some lab services
 To clearly state and define the strategic goals and objectives of the company in accordance with
and consistent to the corporate Vision and Mission;
 To define the business model to become market leader in the future in laboratories services
sector.
 To stipulate and describe the company business strategies and its execution;
 To set business milestones with Key Performance Indicators (KPIs) in order to improve its
capabilities in terms of lab service offered
 To provide high-level business indicators and company performance based on financial positions
to increase its revenue within a short period
 To understand and forecast the company’s staffing needs
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3. ALS Arabia Biyaq Business Model
3.1 The Business Model:
The following explains the Business Model of ALS Arabia Biyaq:
 Investment Actions – Relates to Lab facility and capacity development and laboratory
capabilities enhancement to cater more services to target customers. This is to be funded
initially by ALS Arabia in compliance of the joint venture agreement;
 Operation and Maintenance Actions – Relates to operating the assets and maintaining them
and are proposed to be funded initially by ALS Arabia as part of the joint venture operation
agreement and by the revenues generated from laboratory operations. Financial deficits
from operations for the first year are to be borne by ALS Arabia.
 Business Expansion Actions – Relates to future investments necessary to meet project
requirements that complement the core business activities of the company such as
compliance to Tenders and business partnerships through awarded projects / contracts.
The support function costs such as Admin and Finance, IT and other support activities will be
charged accordingly based on the joint venture costing agreement and methodologies.
4. Business Planning Elements
4.1 Vision, Mission, Values and Strategies:
The elements of the business model is aligned and consistent to the corporate vision, mission,
and values and is compounded into the company Strategic Themes namely Operational
Excellence and Growth, Quality of Service, People Empowerment and HSE Performance. The
following House Model shelters the elements of the Business Plan.
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Financed By ALS
Arabia through
the Joint Venture
Acquisition
Agreement
Initially Financed By
ALS Arabia through
the Joint Venture
Acquisition
Agreement +
Business Revenues
Financed By ALS
Arabia and By ALS
Arabia Biyaq
INVESTMENT ACTIONS BUSINESS EXPANSION
ACTIONS
ALS ARABIA BIYAQ
OPERATION AND MAINTENANCE
ACTIONS

Figure # 1: Mission, Vision, Values, Strategies of ALS Arabia Biyaq
Our Company Slogan is “Quality Service Is Our Way of Life”.
5. The Organization Structure
`Below is the current Organization Chart of ALS Arabia Biyaq.
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6. Previous Sales Performance and Sales Forecast 2017 (Actual Jun-Sep 2017; Budget Oct-Dec 2017)
Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
A - Revenue
Service Revenue - Environmental and Chemistry 3,176 6,550 5,831 3,126 6,500 7,000 7,500
Service Revenue - Minerals - - - - 1,000 2,000 3,000
Service Revenue - Food - - - - 500 1,500 2,000
Service Revenue - Oil and Gas 2,625 6,115 3,945 7,088 7,500 8,500 9,500
Service Revenue - Cosmetics and Consumer Products 150 236 115 1,709 - - -
Non Service - Other Income - 101 15 - - - -
TOTAL Revenue (A) 5,951 13,002 9,907 11,923 15,500 19,000 22,000
Actual Budget
Note: Budgeted Minerals and Food revenue will be lower than projected for 2017
7. Market Intelligence, Analysis and Summary
An Article titled “Oman-Market Opportunities” published on 23 February 2017 at
www.export.gov narrates that “Oman offers stability, security, a predictable investment climate; respect
for free markets, property rights, and rule of law; access to capital, good health care and schools, easy
access to global markets through a modern infrastructure network, and a commitment to intellectual
property rights enforcement.
“The 9th Five-Year Plan for the Sultanate, which is the last of the series of Five-Year Plans for the Vision
2020, aims to cut non-core expenditure for investment spending on selected key programs and projects.
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Private sector role is considered to be backbone of the plan with emphasis being put on public private
partnerships (PPPs). In a report by Oman Arab Bank, in the 9th Five-Year Plan statement total targeted
investments of USD 106 billion will be funded by 52% from private investments with the balance coming
from public investments. The private investments shall be in manufacturing (32.6%), services activities
(37%) and 29% in infrastructure.
“Projects identified for PPPs are Oman Rail, Port Sultan Qaboos, Port Khasab, South Batinah Logistics
Area, some fisheries projects, Ad Dhahirah Economic Area and Shinas Port. The government has
announced the setting up of Mining Development Oman (MDO) with a capital of USD 260 million to be
owned initially by government investment vehicles with a public offering of 40% later in the year. MDO
will carry out both upstream and downstream activities related to mining as well as collaborate with the
private sector.
“Apart from economic diversification through vertical expansion in activities dependent on oil, the 9th
Five-Year Plan focuses on the development of non-oil sectors such as manufacturing, transportation and
logistics, tourism, fisheries and mining. The Ministry of Finance (MoF) has indicated that measures to
enhance non-oil revenues could include raising corporate taxes, limiting tax exemptions, regulating
customs duty exemptions and enhancing tax collection procedures, including strengthening their audit
and control mechanisms, amending the electricity and water tariffs, visa and labor card fees, fees for
real estate transactions, municipality fees for lease registrations, fees for car registrations and driver
licenses, and other fees for official transactions.
Another Article in the same webpage titled “Oman-Trade Standards” published on 22 February 2017
provide relevant information that will poster business opportunities for Commercial Testing
Laboratories. The article provides information that “as part of the GCC Customs Union, Oman is working
toward unifying its standards and conformity assessment systems with those of the GCC, through the
Gulf Standards Organization (GSO). Most Omani standards are either GSO standards or those derived
from another international standards organization. Oman is party to the Technical Barriers to Trade
Agreement and is a member of the WTO. Further, the U.S.-Oman FTA contains a chapter addressing
standards as barriers to trade and facilitates bilateral engagement on standards issues.”
“As of November 2013, Oman had 10,012 standards in place, of which 10,000 based on GCC standards
as formulated by GSO; 1,838 were mandatory standards. Twelve standards are purely national
standards, covering products such as bread, traditional daggers, un-bottled water, or LPG cylinders. All
mandatory standards in Oman apply equally to locally produced and imported products. Mandatory
standards apply mainly on food products, construction material, toys, cosmetics, and motor vehicles.
Compliance of imported goods is verified by the customs authorities.
“A product certificate is required to assure the product’s conformity to international or Omani/GCC
standards. Non-food products are allowed automatic entry to Oman on the basis of a Manufacturer's
Declaration of Conformity Assessment Certificate, supported by a test report verified by the DGSM; in
parallel, some samples are collected unless a mutual recognition agreement is in place. Imported
products that are not covered by certificates are released temporarily and their samples tested. Oman
has concluded mutual recognition agreements with Bahrain, Egypt, Iran, Iraq, Jordan, Qatar, Syria,
Tunisia, Turkey, the United Arab Emirates, and Yemen.
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“Any laboratory testing certificates relating to conformity to Omani or international standards should be
submitted to the Directorate General of Specifications and Measurements, which is responsible for
accrediting laboratories and classifying and assessing the results obtained.”
Other business opportunities in Oman that may require, in one way or another, include but not limited
to the following:
 Ongoing work on a $1 billion wastewater treatment system for the Muscat area, led by
parastatal Haya Water;
 Oman’s Environmental Services Holding Company (OESHC), a GoO agency branded as “Be’ah”, is
restructuring and privatizing the solid waste sector, plans to close nearly 350 dump yards, and
seeks expertise on waste management and an integrated waste management facilities such as
Thermal Treatment Plant, Physical and Chemical Treatment Plant, Solidification Plant and
Disposal Facilities;
 The state-owned Oman Power and Water Procurement Company (OPWP) has taken major steps
to increase the desalination capacity of independent water projects (IWPs) by 123.6 million
imperial gallons of water per day (MIGD) in the next six years.
 Upcoming integrated water desalination plant projects include:
- Al Ghubrah IWP, capacity expansion to 191,000 M3/d, currently under development and
expected to commence operation this year;
- Wadi Dhiqa Treatment Plant, capacity of 67,000 m3/d, currently under development;
- Al Suwayq IWP, capacity of 225,000 M3/d , COD by 2016.
- Quraiyat IWP, capacity of 180,000 m3/d, COD 2018.
- Expansion in Sur, capacity of 40,000 m3/d, COD 2016.
- New IWP in Salalah, capacity of up to 27,000m3/d by 2018.
 Oman government is setting up of Mining Development Oman (MDO) with a capital of RO 100 m
to be owned initially by Oman Oil Company and Oman National Investments Development
Company (Tanmia). Key projects include mineral processing and refining facilities in the Port of
Duqm’s industrial zone.
 Investment Projects in Boosting Food Security and Food Sectors.
 Many Others
In summary, the advantages of investing in Oman include:
 Stable macroeconomic situation
 Business friendly environment
 Stable, secure nation in a volatile yet strategic region
 Considerable investment in first world infrastructure
 Educated and largely bilingual workforce
 Strategic geographic location outside the Strait of Hormuz and at the crossroads of the Middle
East, Africa, and Asia”.
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7.1 Summary Tables:
Minerals
Area Minerals
Economic Drivers New Mining law to encourage investment and development
Emerging Markets Dependent upon global demand. Building materials ongoing.
Volatility High
Size Mined 136.4 M OMR – 2015
Growth Dependent upon global demand and encouraging government
laws.
Main Segments Metallic like copper and chromite
Industrial like limestone and marbles
Leading Players Mawarid, Oman Mining Company, MDO, Al Hadeetha (Alara)
Company, Savannah Resources,
Competition Government lab, Lonestar, labs in India
Strength of Competition
(Factors)
Poor TAT. Limited analysis
Market Performance(5
years)
Available info shows increases from 2014 to 2015.
Future growth prospects New mining law should encourage exploration/mining
General Trends. General interest in increase of mining in Oman. Government
looking for diversification and alternative sources of revenue other
than Oil
Food
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Area Food
Economic Drivers Significant investment in Tourism, Hospitality and Food Security
Emerging Markets Fisheries, Poultry, Meat and Dairy production
Volatility Previously high. Country undergoing diversification to reduce this.
Size Food retail is worth US$7.4 billion annually
Growth Fisheries, Poultry, Meat and Dairy production
Main Segments Fisheries, Poultry, Meat and Dairy production
Leading Players The Wave Muscat, Oman Convention Centre, Duqm Fisheries
Industrial Zone, Assafa Food, Salalah Flour, Oman Flour, Mazoon
Dairy, Food industrial parks, Hotels, Caterers
Competition Government laboratories, Lonestar, Global, Atyab Foodtech
Strength of Competition
(Factors)
Market requirements not fully understood
Market Performance(5
years)
Increasing in primary production and Tourism
Future growth prospects Fisheries, Poultry, Meat, Grain, Juice and Dairy production
General Trends. Increase in tourism, food security and primary production. Export.

Environmental
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Area Food
Economic Drivers
Oman's construction industry, transport infrastructure in particular.
Electricity and water - investment in new utilities capacity.
Residential and non-residential construction.
Emerging Markets Gas Sector, Seaport infrastructure
Volatility
Loss of 60 per cent of oil revenues.
The fiscal situation will gradually revert to normality. Diversification
of the economy and the expansion of non-oil sectors should
progress steadily
Size Estimated 30M SAR(2017) laboratory testing (from various sources)
Growth
Infrastructure investment, including in tourism, airports, railways
and ports. A new mining law is expected to streamline and
centralize licensing processes.
Main Segments
Infrastructure & Construction, Mining, Port and navigation , Food
industry, water and waste water companies
Leading Players
PDO, Daleel, Oxy, Oman Gas, Ministry Of Commerce And Industry,
Ministry of Agriculture& Fisheries, Mining Industry, Consultants
Competition Lonestar, Geochem, Exova, SGS, Wimpey
Strength of Competition
(Factors) Analysis by internal lab. Low prices.
Market Performance(5
years)
Significant growth in 2013 however falling since. (MSM30 Index
down 7.2% in 2014 and 8.6% in 2015)
Future growth prospects
Prioritize infrastructure investment, including in tourism, airports,
railways and ports. Mining law to streamline license processes,
improve industry’s efficiency.
General Trends Per capita GDP has increased three fold since 2000.

8. SWOT Analysis
The Strength, Weakness, Opportunities, Threats (SWOT) matrix presented below are identified
and used in formulating the Strategies in successfully achieving the company’s goals and objectives. The
purpose of this business tool is that to identify the strengths of the company, minimize its weakness,
grabing the opportunities which are available in market and by overcoming the threats in market.
STRENGTHS
- In-country value is one of the features which gave ALS Arabiya Biyaq lab a comparative
advantage over their competitors.
ALS global and regional reputation, experience and support
- Strong Capabilities in Lab Operation, Management and Cost Control
- Quality of Service
- ISO 17025 accreditation and In-place Quality Management System
- Wide-range of lab services
- Technical support from ALS Arabia and ALS Global
- LIMS, webview and ALS Arabia Quality Customer Service/Support
- Has existing contracts / clients in Oil and Gas Industries, Ministries and Water O&M
industries
- Customer satisfaction of Lab services and client relations
- Safety First Program in Lab Operations
- Lab location accessibility to clients
- Logistics and shipment of samples to and from Oman
- Experienced lab personnel
WEAKNESSES
- Market penetration in several sectors
- Market Intelligence activities such as soliciting competitors rates
- Monopoly of business
- Lack of satellite labs/site offices in other regions in Oman (e.g. Salalah, Duqm, Sohar, etc)
for sample handling and shipments
OPPORTUNITIES - Port Developments
(https://www.oxfordbusinessgroup.com/overview/pivot-point-key-regional-rail-project-
hold-sultanate-focuses-port-development)
- Sohar Port Developments
(Muscat’s Port Sultan Qaboos activities in Muttrah is now shifted to Sohar Port)
- Salalah Port Activities
- Port of Duqm Developments
(Situated in Al Wusta Governorate, has vast hydrocarbons and mineral wealth. This port
aims to become major international export hub for industrial minerals)
- Mining Production and Developments
(https://www.oxfordbusinessgroup.com/overview/digging-growth-substantial-mineral-
resource-base-sultanate-looking-fast-track-its-extraction-sector)
- Non-Oil Industries are Picking Up
(e.g. Rusayl Industrial Estate(IE), Sohar IE, Raysut IE, Nizwa IE, Sur IE and Buraimi IE)
- Petrochemical Industries Developments
(e.g. Refineries in Sohar and Mina Al Fahal, Liwa Plastics Industrial Complex, Duqm
Refinery and Petrochemical Industries Company (DRPIC),
- Ongoing work on a $1 billion wastewater treatment system for the Muscat area, led by
Haya Water
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- Expansion of Steel Production
(e.g. Sohar Steel, Sharq Sohar Steel Rolling Mills(SSSRM) & Jindal Shadeed Iron and Steel
Oman(JSISO), Sohar Aluminum, Oman Aluminum Rolling Co in Sohar, Oman Aluminum
Processing Industries).
- Developments in Construction Materials Industries
(Raysut Cement, Oman Cement, Al Maha Ceramics, Zawawi Minerals
- Developments in Manufacturing Industries
(Major Food-Processing Centers such as Oman Sugar Refinery Company(OSRC) in Sohar,
Salalah Mills, Oman Food Investment Holding Company (Dairy Project in Buraimi),
Beverage Packaging Factory at Sohar FZ
- Compliance to Oman Food and Agricultural Import Regulations and Standards
(e.g. Food Additives Regulations, Pesticides and Other Contaminants, Labelling
Requirements, etc)
- Investment Projects in Boosting Food Security and Food Sectors
(Oman Food Investment Holding Company SAOC(OFIC), Mazoon Dairy Company SAOC in
Buraimi, An Naama in Ibri, Asaffa Foods, Oman Sugar Refinery Co (OSRC) in Sohar FZ,
Mazoon Dairy Farm, Omani Natioanal Livestock Development Co., Al Bashayer Meat Co.,
etc).
- Food Processing Plant at Sohar Free zone
(Usher Agro Ltd signed JV Agreement with Sohar Food Cluster Co Ltd to set up a “Rice and
Pulses Storage, processing and Packaging Facility)
- Development in Agriculture and Fisheries Sectors till 2020
- Upcoming Processing Plants at Fisheries Industrial Zone in Duqm
- Continuous Improvement of Food Safety Environment
- Openings/ Expansions Hotels and Resorts
(Shaza Salalah, Crowne Plaza Salalah, Antara Hotel Resort and Spa in Muscat, JW Marriot,
Crowne Plaza, W Resort Muscat, Muscat Hills Intercontinental, Jebel Sifah Complex, Salam
Yiti Resort, City Hotel, Duqm Hotel project, Saraya Bandar Jissah Project, Kempinski Wave
Hotel, Shaza Salalah Resort, Sheraton Oman, Citadines Apart‘hotel Muscat, )
- Developments of Environmental Consultants Activities
(e.g. HMR Eng’g Consultants, Five Oceans Environmental Services, Al Safa Environmental &
Tech’l Services, Mazoon Environmental & Technologica Services, etc)
THREATS
- Lab expansion plans by several government agencies
(e.g. Ministry of Agriculture and Fisheries) and some government funded organization
such as Haya Water Central Lab, SQU, etc.
- Price war among competitors
- Low Government fundings to boosts economic activities due to Global Oil Price Instability
- Manpower turnaround
9. Competitors
ALS Arabia has setup an environmental & food testing laboratory in order to focus short holding
parameters and serve the market requirement. ALS Arabia mission is to provide comprehensive and
state-of-the-art ecological environmental and food testing on behalf of its client base.
S. No. COMPETITORS Lab Locations in Oman ACTIVITIES
1 Lonestar Alpha Laboratories LLC
http://lonestaralpha.com/en/
- Ghala, Muscat (Main Lab)
- Sohar
- Duqm
- Salalah
- Environmental Testing
- Chemical Testing
- Food and Microbiological
Testing
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- Civil Material Testing
- Metallurgy Testing
- Geotechnical Engineering
Services
2 Global Laboratories and Testing LLC
http://gltoman.com/ - Ghala, Muscat
- Food Analysis
- Environemental
- Animal Feed Analysis
- Fertilizer and Compost
- Detergent
- Cosmetics
- Petroleum
- Steel and Alloys
- Natural Products
- Geotechnical
3
Exova
https://www.exova.com/locations/ - Ghala, Muscat (Main)
- Sohar Branch
- Environmental Testing
- Industrial Testing
- Infrastructure
- Oil and Gas
4 Wimpey Laboratories LLC - Ghala, Muscat (Main)
- Sohar Branch
- Environmental Testing
- Chemical Testing
- Microbiological Testing
- Civil Material Testing
- Geotechnical Engineering
Services
5 Atyab FoodTech Laboratories
http://atyabfoodtech.com/ - Darsait, Muscat
- Chemical and Microbiological
Analysis of Food and Agri
Products
- Compliance Analysis of Food &
Cosmetics
- Environmental Analysis
- Food Research and
Developments
- Food Product Formulation
- Nutritional Labelling
- Sensory Evaluation
- Indoor Hygiene Monitoring
- Air Quality Monitoring
6 SGS Oman
(A Division of Atyab Technical
Services)
http://www.sgs-me.com/en/Office-
Directory.aspx
- Al Azaiba, Muscat (Head
office)
- Sohar
- Oil & Gas
- Chemical
- Life Sciences
- Mining
- Public Sector
- Industrial manufacturing
- Agriculture and Food
- Inspection
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- Lube Oil
7
Geo-Chem Middle East
http://www.geochem.ae/
- Al Azaiba, Muscat (Head
office)
- Sohar
- Oil & Gas
- Environmental Monitoring
- Condition Monitoring, Oil
Testing
- Inspection
8
ITS Testing Services (UK) Ltd
http://www.intertek.com/contact/
ema/oman/
- Al Khuwair (Office)
- Sohar Branch
- Sur (Office)
- Salalah (Office)
- Oil & Gas
- Environmental Monitoring
- Condition Monitoring, Oil
Testing
- Inspection
9
Haya Water Central Laboratory
https://www.haya.om/tabid/317/
Default.aspx
- Ghala, Muscat - Environmental Testing
- Microbiological Testing
10
SQU Central Analytical and Applied
Research Unit (SQU-CAARU)
https://www.squ.edu.om/Portals/
39/CAARU/CAARU%20analysis
%20Price%20list%20(002).pdf?
ver=2017-01-16-114352-157
- Al Khoud, Muscat
Availability of the following
instrument & services:
- XRD
- XRF
- SEM
- ICP-MS / OES
- GC-FID
- GC-MS MS
- IC
- Molecular Weight Analysis
- HPTLC
- Genetic Analysis
11
Ministry of Regional Municipalities
and Water Resources -
Food and Water Laboratories
Center (FWLC)
http://mrmwr.gov.om/new/en/
Page.aspx?
id=30&li=3&Type=&Slide=true
- Seeb Muscat
- Water Physico-Chemical Testing
- Microbiological Testing
- Food Testing
12
The Shaksy Group
- Core Laboratories as
Affiliates
http://www.shaksygroup.com/our-
affiliates.html
- Muscat
- Environmental Testing
- Microbiological Testing
- Oil Reservoir Management
Services
13
RAY International Group
http://www.rayoman.com/infrastru
cture.php
- Ghala, Muscat
- Transformer Oil Testing
- Lubricating Oil Testing
- Water Testing
- Mineral Testing
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10. Advantages and Strength of ALS Arabia Biyaq
10.1 Service Capabilities
ALS Arabia Biyaq offers a wide-range of laboratory analytical services and its activities are
broadly classified into the following services:
 Environmental Testing Services
 Food and Beverage Testing Services
 Minerals Testing Services
 Oil and Gas Testing Services
 Tribology and Oil Condition Monitoring Services
 General Chemistry Testing Services
In addition, the company is also providing field services such as on-site sampling, field sample
collection, field testing services whenever required based on project to project requirements.
See Appendix 1 for the list of Laboratory Testing Capabilities and Scopes of ALS Arabia Biyaq.
10.2 Customer Segmentation
The company provides services to the following target market sectors and industries such as:
 Environmental Sectors
 Food and Beverage Sectors
 Agricultural Sectors
 Mining Sectors
 Oil and Gas Sectors
 Industrial Manufacturing Sectors
 Oil & Gas Industries
 Operation and Maintenance Service Industries
 Engineering Consultants/Contractors
 Public and Government Regulatory Sectors
10.3 Key to Success
The following laboratory business ingredients are the keys to success of ALS Arabia Biyaq given
the number of competitors in the market with similar activities and services:
 Offering Wide-Range of Lab Testing Services
 Meeting Customer Requirements and Market Demands
 Consistent and High Quality of Services
 Superior Customer Service
 Cost-effective Operations
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11. Business Strategies
Customers are the central focus of our business. Meeting customers’ requirements and
satisfying them are the end result or indicator of how well the company is managing and executing its
business.
Having considered the elements both favorable and unfavorable in achieving the company objectives
though SWOT Analysis of the internal and external business driving factors, the company has developed
the “Strategic Themes” aimed at realizing its goal and objectives, namely: Operational Excellence and
Growth, Quality of Service, People Empowerment and HSE Performance.
Focused at achieving the ultimate vision and mission of the company, the following strategies and goals
are identified in each Strategic Themes:
STRATEGIC THEMES STRATEGY GOALS
OPERATIONAL
EXCELLENCE AND
GROWTH
Develop/Expand Laboratory Service
Capabilities
To develop, and expand a Food and Beverage Lab
aimed at providing services to Agriculture and
Fisheries Industries, Food Manufacturing &
Beverage Industries, and Hotel and Resort Sectors.
To develop and expand a Mineral Lab aimed at
providing services to various Mining industries
To expand and maintain Environmental and General
Chemistry Lab and Oil and Gas Lab aimed at
providing services to various industries and sectors.
Increase Market Penetration and
Service Awareness
To generate service awareness covering the market
segments and build the customer base.
QUALITY OF SERVICE
Develop and Implement and Maintain
a Lab Quality Management System
Complaint to ISO/IEC 17025
International Standard
Continual and Yearly Expansion of
Accreditation of Lab Scopes in Environmental
Testing, Food Testing, Petroleum/Petroleum
Product Testing.
PEOPLE
EMPOWERMENT
Attract, develop and retain talented
performing personnel
To be able to maintain at least 35% Omanization
level in the Organization.
To minimize unnecessary manpower turn-around
that will reduce lab productivity.
To optimize efficiencies and use of resources
HEALTH SAFETY AND
ENVIRONMENT (HSE)
PERFORMANCE
Operate with high level of HSE
Performance To achieve No LTI and MVI.
11.1 Develop/Expand Laboratory Service Capabilities
This strategy focuses on identifying, developing and expanding profitable business opportunities
that can be leveraged based on the core competencies of the company. The Company at this stage is
already operating and providing services in the field of Oil and Gas Testing, Environmental and
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General Chemistry Testing. It currently covers industry sectors such as Petroleum and Oil/Gas
Industries, some Ministry and Government Sectors, some Environmental, Engineering Consultants
and O&M Companies. With the joint venture operations, these service capabilities shall be further
enhanced and expanded. Moreover, additional service capabilities shall be develop and cultivated
such as Mineral, Food and other Environmental testing capabilities.
11.2 Increase Market Penetration and Service Awareness to Clients
This strategy focuses on marketing activities and clients’ awareness of the wide-range of
laboratory service capabilities and advantages of the company against its competitors for the
purpose of gaining and enhancing market shares and profitability. This aims to cover the target
market segments and building customer base.
11.3 Develop and Implement and Maintain a Lab Quality Management System Complaint to
ISO/IEC 17025 International Standard
The establishment, development and maintenance of an effective laboratory management
system compliant to ISO/IEC 17025 and other relevant international and national standards will
ensure continuous improvement and enhancement in the way we manage our business. The overall
business activity can be assessed and analyzed as a set of “Several Processes” and “Support Groups”
synchronized in a way to ensure the delivery of set goals and objectives.
A well implemented Lab Quality Management System will ensure that the systems and processes
support the business requirements, are well documented, provide timely, reliable & relevant
management information for effective decision making, improve performance in terms of
customer/staff satisfaction, regulatory compliance and better cost control.
11.4 Attract, Develop and Retain Talented Performing Personnel
We shall build a solid foundation in focusing on our Human resources in order to attract,
motivate and retain talented and performing staff. Our strategy is to utilize efficiently the most of
everyone’s competencies and to maximize their potential by:
• Maintaining a clear communication, for example, on career and development
opportunities, policies and procedures of the company, reward system, etc.
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• Recognizing and developing people skills, knowledge and behaviors through a
Personal Development Plan and cross-training.
• Reviewing and rewarding people to keep them motivated by implementing an
effective performance management system.
11.5 Operate with high level of HSE Performance
We shall expand and enhance the company’s safety performance with “Safety First Program”
and strive hard in achieving zero “Lost-Time-Incident (LTI)” and no Motor Vehicle Incident (MVI). We
commit to improve the well-being of our staff and others in areas that we operate. We shall:
• Have a system in-place designed to comply with the Ministry and relevant
governing bodies on HSE requirements;
• Continuously develop our system, procedures and/or practices to meet the
requirements of HSE regulations, customers and the working environment;
• Conserve resources for the preservation of energy and environment by being
cost-effective in our operations;
• Provide facilities and equipment to protect its employees, visitors, stakeholders
and the environment from harm and exposure to pollution;
• Uphold company values on HSE preservation and protection at all times.
12. Strategy Execution and Performance Measurement
In order to achieve the strategic goals that are defined under each strategy, several initiatives
have to be undertaken. Key Performance Indicators (KPIs) are those measures that give a quick feedback
(jointly and/or severally) on our performance against the Strategic goals. Measurement criteria are the
basis on which performance of the Strategic initiatives and the KPIs are measured. The company shall
maintain a disciplined approach in achieving the business strategic initiatives and goals through
performance monitoring.
STRATEGIC
THEMES STRATEGY GOALS KEY PERFORMANCE
INDICATORS
MEASUREMENT
CRITERIA
OPERATIONAL
EXCELLENCE AND
GROWTH
Develop/Expand
Laboratory Service
Capabilities
To develop, and expand a Food and
Beverage Lab aimed at providing
services to Agriculture and Fisheries
Industries, Food Manufacturing &
Beverage Industries, and Hotel and
Resort Sectors.
-Enhance Lab capability
with only less than 10% of
the lab services being
subcontracted.
- Full installation of LIMS
System to manage lab
processes and provide
client access via Webtrieve
- At least 20% increase in
annual gross sales.
- Availability and
expansion of Lab
service capabilities in
the field of food/
microbiological
testing, minerals
testing, environmental
and general chemistry
testing, and oil & gas
testing;
-Full implementation
To develop and expand a Mineral
Lab aimed at providing services to
various Mining industries
To expand and maintain
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STRATEGIC
THEMES STRATEGY GOALS KEY PERFORMANCE
INDICATORS
MEASUREMENT
CRITERIA
Environmental and General
Chemistry Lab and Oil and Gas Lab
aimed at providing services to
various industries and sectors.
- Expansion of client
network in various sectors
of LIMS
Increase Market
Penetration and
Service
Awareness
To generate service awareness
covering the market segments and
build the customer base.
-Active Participation in
Industry Conventions,
Conferences and Trade
Shows
- Active participation and
engagement in invitation
to Tender and Contract
Bids
- Solid client networks
and market presence
in different sectors
- At least 20% increase
in annual sales
- Quarterly Report on
Involvement and
Participation in
Conventions,
Conferences and
Trade Shows
QUALITY OF
SERVICE
Develop and
Implement and
Maintain a Lab
Quality
Management
System Complaint
to ISO/IEC 17025
International
Standard
Continual and Yearly Expansion of
Accreditation of Lab Scopes in
Environmental Testing, Food Testing,
Petroleum/Petroleum Product
Testing.
- Attainment and
maintenance of
accreditation to ISO/IEC
17025 standard in
Food/Microbiology
Testing, Environmental
Testing &
Petroleum/Petroleum
Products Testing.
- High customer
satisfaction level
- Yearly increase of
ISO/IEC 17025
accredited scopes of
lab services
- At least 90%
customer satisfaction
level on delivery of
services (Turn-Around
Time) and accuracy of
results based on
“Customer Satisfaction
Survey”.
- Zero unresolved
customer
complaints/feedback
PEOPLE
EMPOWERMENT
Attract, develop and
retain talented
performing
personnel
To be able to maintain at least 35%
Omanization level in the
Organization.
- Provide training and
development to local staff
in the conduct of lab
scopes and other lab
activities.
- Increase staff utilization
and lab productivity
through multi-skill
development and cross-
section assignments.
- Full Team engagement,
development and
succession planning
- Availability of cross-
training matrix with at
least 2 or 3 staff
capable to do each lab
scopes
- Availability of
Development and
Succession Plan
To minimize unnecessary manpower
turn-around that will reduce lab
productivity.
To optimize efficiencies and use of
resources
HEALTH SAFETY
AND
ENVIRONMENT
(HSE)
Operate with high
level of HSE
Performance
To achieve No LTI and MVI. - Maintain a Safety-First
Culture
- Compliance to MECA
requirements and other
- No LTI / No MVI
- Zero unresolved
internal or external
HSE audit feedback.
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STRATEGIC
THEMES STRATEGY GOALS KEY PERFORMANCE
INDICATORS
MEASUREMENT
CRITERIA
PERFORMANCE ministry regulations on
HSE
13. The Marketing Plan
The ALS Arabia team will expand the Business Development efforts throughout Oman to secure
business possibilities in the following Sectors:
 Environmental companies and private consultants;
 Ministries, Municipalities, Customs and etc;
 Oil companies;
 EPC Contractors;
 O&M contractors;
 Importers and Exporters;
 Chemical & petrochemical Industries;
 Water, wastewater treatment plants, cooling tower companies;
 Water bottling companies;
 Mineral Companies and consultants; and
 Food Industries
Business reports/media and regional establishments have indicated that the business in Oman will
continue to grow in many sectors such as Construction, Real Estate, Water, Food and other marine
related works. Mining will further develop as the current mining law is revised and made business
friendly. And the oil and gas sector will continue to be an important player in the GDP of Oman.
The Business Development/Marketing campaign for Oman will focus on ALS Arabia Biyaq’s ability to
conduct all the analysis in-house. Currently competitor laboratories need to subcontract some organics
and specialist micro to external labs. This creates an element of risk to clients and can ultimately delay
turn-around times. Having a local laboratory to analyse short hold tests will remove the risk barrier
currently perceived by clients. Creating local national jobs and continuing to support the local region will
also feature heavily.
A strong, high quality laboratory is incredibly important to ensure current and future growth of the
laboratory business in the country and has been heavily commented on by clients. ALS Arabia Biyaq is
the laboratory that can provide and excel with Quality, ISO 17025 backing.
Guideline comparison reports will be marketed strongly. The report deliverables will allow clients to
assess their data against the relevant standards/guidelines appropriate to their industry.
Along with traditional marketing campaigns, conferences and client visits, social media tied to parent
companies will play an increasingly important role to business development.
Pricing will be a factor in the marketing plan. The main local competitors have similar pricing to ALS
Arabia.
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13.1 The competitive advantages
Competitive advantage is one of the significant contributors to success in the market. Generally,
focusing and emphasizing what makes our laboratories' services better and different to our competitors
is required. The purpose of this is to build more trust and add value to our services.
Marketing mix is the combination of many elements of marketing which will be enabling company in
determining the market position. Each individual element of marketing mix tool has different
characteristics which will be discussed in this business plan along with the way in which marketing mix
helps ALS Arabia Biyaq Laboratories to achieve competitive advantage. Especially nowadays, there is
high competition in the market among lab services sector.
 Product/Services: ALS Arabia Biyaq LLC vision is to provide the best services to their
customers. They work in the direction of providing analytical services. They provide all
the services with the quality. Customers can be reliable and can trust the quality of the
services provided by the cited company. There is wide range of services which are being
provided by the ALS Arabia Biyaq LLC. Services of the organisation is to provide
effective and efficient lab testing. The services which are being provided by the cited
business are very much effective (Hanssens and et.al., 2014). This helps in saving the
cost. They provide services in accordance with the demands in the market. The quality
of the services is quite consistent in the market.
 Place: ALS Arabia Biyaq LLC provides their services at those places which has the wide
customer range. They select the place after doing the proper research. It is because
they want to select that place which will provide them with the highest benefits in terms
of the customers. The places where the cited organisation operates its business are
Damman, Jeddah, Kuwait and Council Countries of Gulf. The major part of the services
is given in the Dammna. The organisation had made very big laboratory on the land of
2500 square meters. At the place of Jeddah, the business fulfils various needs of the
industries. At Kuwait the company is providing services at the lower level (Locations
Across Saudi Arabia and the GCC, 2017). The services which are provided at this place
give the major quality goals. Analytical services are being provided to the Gulf Council
Countries.
 Price: ALS Arabia Biyaq LLC is working in the direction of making their all the customers
satisfied. To achieve this motive the cited organisation provides their services at the
reasonable price, which will make the services affordable for the consumers. The cited
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company uses the technique of pricing for market penetration to select and decide the
prices of the services. This method is used by them because it leads them to gain many
types of competitive advantages. This technique of pricing is selected to decide that
prices of the service which is lower from the competitors in the market (Arango and
et.al., 2016). This process at first leads to loss but after time it gains profits for the
company. This technique of pricing for market penetration is very much effective for the
long run of the business.
 Promotion: It is that marketing activity which is very much important for making the
customers aware about the new and existing services provided by the cited firm. There
are many techniques which can be used to promote the services among the customers
like print media, social media, advertisements in TV, etc. The technique which is used by
the ALS Arabia Biyaq LLC to promote its services by giving online assistance to their
customers. By using this method, the cited company attracts many customers towards
them. These also satisfy all their customers which is the main motive of the cited
organisation.
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14. The Financial Plan
The following provides a projection of Revenue and costs from 2018 through 2022 and the
resultant ROS for each year.
Omani Riyal 2018 2019 2020 2021 2022
Revenue Generated 425,400 510,480 612,576 735,091 882,109
Internal/ external sub-contract expenses 42,540 45,943 55,132 66,158 79,390
NET REVENUE 382,860 464,537 557,444 668,933 802,720
Operating Costs
Depreciation/ Amortisation 46,398 47,790 50,179 52,688 56,377
Premises Lease costs (est.) 36,120 36,120 36,120 36,120 36,120
Labour costs (TEC) 192,686 198,467 208,390 218,809 245,067
Consumables 60,727 65,585 70,832 76,499 85,678
Utilities 8,000 8,800 9,680 10,648 11,926
Other expenses 35,000 36,750 38,588 40,517 43,353
Total Operating Costs 378,931 393,512 413,789 435,281 478,520
EBIT 3,929 71,025 143,655 233,652 324,199
ROS 1% 15% 26% 35% 40%
EBITDA 50,327 118,815 193,835 286,340 380,576
EBITDA Margin 13% 26% 35% 43% 47%
Net Profit After Tax 100,808 103,747 136,526 173,847 209,919
15. Conclusion
ALS Arabia Biyaq LLC is a laboratory in the Sultanate of Oman providing world class analytical
service with exceptional quality and reliability. The Business Plan has outlined the direction of the
company and defined the strategic initiatives to be undertaken to achieve their goals and objectives in
the coming years.
The elements of the business model is aligned with and consistent to the corporate vision, mission,
inherent values and compounded into its Strategic Themes namely Operational Excellence and Growth,
Quality of Service, People Empowerment and HSE Performance.
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The goals will be achieved by a strong analytical laboratory team that is capable of multi-tasking
and working across disciplines. The company will grow via a strong business development and client
service teamed model, ensuring client focus with high quality, fast and efficient service.
The components and details of the business plan provide guidance and direction to ensure that ALS
Arabia Biyaq LLC will be the number one laboratory service provider in the Sultanate of Oman.
16 Recommendations:
 We need to identify the advantages that we offer to customers dealing with ALS Arabia Biyaq
Laboratories, either in terms of price, accreditation (quality), good service, faster turnaround
time (TAT) and In Country Value (ICV) etc.
 Priority marketing of the lab service: ALS Arabia Biyaq Laboratories have different divisions of
labs, Oil & Gas Lab, Environmental lab, Food & Micro lab, Minerals testing lab. Priority of
marketing will be adopted on market/customers' demand. It has been observed through sales
statistics from the last three years (2015, 2016 and 2017) that 50%- 60% of company revenue
came from the Oil & Gas lab. The second highest income was from the environmental business.
Therefore, I suggest focusing and developing these two divisions as the first stage and then
emphasizing Food & Micro lab, Mineral business and so on.
 Lab management has sent many customer satisfaction survey forms to all their customers to
obtain their feedback on the lab services. However, it has been observed that few customers
respond to our e-mails. Therefore, it can be seen that phone surveys, along with few and short
questions are more effective and practical than other techniques.
 Creating a data analytics team to ensure that they have an accurate view of all the customers
and their requirements. Through anonymized data analysis, can better understand how
customers are satisfying with the company services in terms of prices, turnaround time and the
quality of the services.
 Promotion adaptation can be encouraged by competitive pressure in the market. Increasing lab
incomes and recognition by promotion is a significant contributor and this can be by different
elements such as public relations (unpayable communications including exhibitions, sponsorship
and seminars etc.), advertising (through radio, oil and gas, magazines and social media).
However, the costs of this combination of promotional strategies are different (maybe say
higher? Not different) and therefore, will depend on budget.
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REFERENCES
Books and Journals:
Arango, S. and et.al., 2016. Self-organizing behavior in collective choice models: laboratory
experiments. Management Decision, 54(2), pp.288-303.
Hanssens and et.al., 2014. Consumer attitude metrics for guiding marketing mix
decisions. Marketing Science, 33(4), pp.534-550.
Online:
Locations Across Saudi Arabia and the GCC. 2017. [Online]. Available through:
<https://www.alsarabia.com/company/locations>.
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