Strategic Management Assignment Solution (Doc)
Added on 2020-04-15
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Running Head: STRATEGIC MANAGEMENT 1Strategic Management
Strategic Management 2Executive Summary The present report is focused on the Oman Oil Company and its strategic operations. Thecompany is currently serving the local markets of Oman as well as a few foreign companies. Theexternal environment of organization is ideal for the company to outsource its operations toforeign countries. The outsourcing is the process of tendering the non-core activities of theorganization to other companies. It is a part of the cost-containment strategy of the organization.The Bowman Strategy Clock has evaluated the strategic position of the company. It has beenevaluated that the Oman Oil is one of the premier organization in the oil industry; however, itneeds to adopt different strategies to reduce its overall cost.
Strategic Management 3Table of ContentsIntroduction......................................................................................................................................4Strategic Choices.............................................................................................................................5Macro and Micro Environment Analysis........................................................................................6Microenvironment.......................................................................................................................7Macro Environment.....................................................................................................................8Internal Environment Analysis........................................................................................................9Sustainable Competitive Advantage............................................................................................97s framework.............................................................................................................................11Porter’s Generic Strategies............................................................................................................13Cost leadership structure............................................................................................................13Product differentiation strategy.................................................................................................14Focus Strategy...........................................................................................................................14Bowman’s Strategy Clock.............................................................................................................14Integration......................................................................................................................................15
Strategic Management 4Diversification...............................................................................................................................17Strategic Choice.............................................................................................................................18Conclusion.....................................................................................................................................18References......................................................................................................................................20Appendices....................................................................................................................................23
Strategic Management 5Introduction Oman Oil Marketing Company was established in 2003 and the company worked as a leader inthe country’s energy sector. It is providing superior customer service in accordance to theinternational standards. There are several of the core business activities of the organization, suchas marketing and distribution of the fuel and the lubricant product, direct selling to the public andthe private sector, aviation refueling and storage and distribution of the product. It has thehighest number of human resources in the country and has developed several long-termobjectives. Several business units have been developed which supports the overall strategy andthe long-term business objectives of the organization. In the present times, the organization is facing several challenges due to the changes in themarketplace. The major rivals of the company are Shell Marketing and Al Maha petroleumwhich provides similar services and product offering. However, with the decline in theinternational oil prices, the profitability of the government has also reduced. It has resulted indecline in the company’s income. The company is actively seeking different cost reductionmethods to maintain the profitability of the organization. A strategic decision has been proposedto outsource some of the activities of the organization, so that the overall profitability of thecompany can be maintained. The activities conducted in house are outsourced so that the fixedcost of the organization can be transformed into variable cost. The outsourcing decision is thestrategic issue of the organization as the company needs to determine which activities will beoutsourced from the organization.
Strategic Management 6Strategic ChoicesThe focus of the present report is to identify the best organizational activities which can beoutsourced to external organization. The primary aim of outsourcing is to make the organizationmore resilient to the economic changes. There are several services which can be outsourced todifferent companies. It includes energy trading and risk management (ETRM), supply chainmanagement, enterprise asset management, IT infrastructure and the retail automatic solutions.Other than that, there are also several secondary activities such as finance, accounting and humanresources which can be outsources to the foreign companies. The company can avail the benefitsof cost containment by two services, namely, outsourcing manufacturing engineering services oroutsourcing the activities related to the data center. In the oil and petroleum industry, the manufacturing process planning is a significant step in thesuccess of the manufacturing process of the company. It is the process of selecting andsequencing different processes so that the manufacturing process can achieve the goals of theorganization and satisfy the demand constraints. In this regard, a process plan document isdesigned which contains the information regarding sequencing of operations, work centers, cycletimes and the production resource tools. It is mandatory that these routers are generatedirrespective of the work load, quantity and the scheduling constraints. It provides timing ofdifferent operations and cost estimation of different components. It is also important in matchingthe operations, selecting the most suitable machines and determining the optimal time for theproduct quality requirements.
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