Strategic Management Report: ADNOC's SWOT and Future Strategies

This report provides a strategic analysis of the Abu Dhabi National Oil Company (ADNOC). It begins with an executive summary and introduction to ADNOC, including its vision and mission statements. The core of the report involves a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to evaluate ADNOC's current position in the energy sector. The strengths include its leadership, domestic and international market presence, large market area, and reduced labor costs. Weaknesses identified are employee inefficiency and trust issues. Opportunities include market access, growth potential, and income level. Threats include tax changes, business risks, and increasing interest rates. Based on this analysis, the report proposes strategies to address key issues such as employee inefficiency, empowerment, and competition. The suggested strategies include employee training, competence assurance, delegation of responsibilities, and cost-effective approaches. The report concludes with a summary of the key findings and recommendations for ADNOC to enhance its competitive advantage and achieve its goals. The report aims to provide insights into ADNOC's strategic planning and operational improvements.

Running Head: Strategic management
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Executive Summary
The main aim of the report is to give focus on the strategies that can help to outperform
with the competitors. This report takes into consideration SWOT analysis of Abu Dhabi Oil
Company to have a proper understanding of the issues that the company has to face in the day to
day operations. The issues are analyzed and based on the issues and proper strategies are taken
into consideration so that the organization can easily sustain the market.

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Table of Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................2
Vision and Mission statement......................................................................................................................2
Situation Analysis........................................................................................................................................3
Strength...................................................................................................................................................3
Weaknesses.............................................................................................................................................3
Opportunities...........................................................................................................................................4
Threats.....................................................................................................................................................4
Strategies, Goals, and objectives.................................................................................................................5
Conclusion...................................................................................................................................................8
References...................................................................................................................................................8

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Introduction
Abu Dhabi National oil company (ADNOC) is the largest oil company in the energy-
related sector. The company came into existence in 1971 at Abu Dhabi, United Arab Emirates.
The company supplies oil domestically as well internationally. The main emphasis is given to
energy and oil. ADNOC has entered into the enterprise that deals with the oil exploration. The
company conducts the operations in the two refineries that are situated in UAE. The production
level of the company is around 3.5 billion barrels of oil per day and 2 billion production cube
feet of gas per day.
The company has also installed 150 petrol stations across UAE. The employees who are
working in the company are approximately 19,300. To accomplish the goals in an effective
manner, the company takes into consideration the ecological factors and also the main focus of
the company is on health, safety, and environment. The objective of the company is to search
and offer the products on national and on the international level. There are many companies of
the world who have joined the hands with the ADNOC. The major effort of the company is to
explore the areas that are undiscovered so that the business can be enhanced in a proper manner.
So, in this report the main focus is given on the strategies that should be considered by
the company, to enhance the profitability and productivity level. In the first phase of the report,

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the focus is given to the vision and mission statement of the company. SWOT analyzes is also
taken into consideration to find out the issues that are faced by the organization. In the last phase
of the report, the emphasis is given on the developing the strategies and goals that will help the
organization to enhance the operations in the sustainable competitive environment. To survive in
the competitive environment it is essential that the company should give focus on enhancing the
profitability and the productivity level of the organization.
Vision and Mission statement
A vision statement of the company is considered as a roadmap that indicates that what the
company wants to become. It takes into consideration the transformational initiatives that assist
in setting the direction for the growth of the company. The mission statement of the company
gives focus on the organization purpose. The vision statement of the ADNOC Company is to
reach the position of the value-added supplier. It takes into consideration the extreme value
products (Dikshit, 2017).
The mission of the company is to regulate the ADNOC petroleum ports that ensure safe,
efficient, Competent and the economical port operations. It also ensures the safe passage for all
vessels who are visiting the petroleum ports and also protects the infrastructure, assets, and
environment. The company also gives focus on enhancing the satisfaction level of the
employees, so that they can give their best towards the activities that are conducted in the
organization (Jewell, 2011).

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Situation Analysis
Strength
To sustain in the competitive environment it is analyzed that the company should have goodwill
in the market. ADNOC is considered as a leader in the energy-related industry. The major
strength of the company is that it deals in both domestic and international market (Tordo, 2011).
The company also reduced the labor cost that has given a great advantage to the company. Due
to the large market share of the company it is easy to attain the profitability and also the
operations can be attained in an effective way (Heller, Mahdavi & Schreuder, 2014).
Weaknesses
It is evaluated that every business has some weaknesses. By taking into consideration the
ADNOC Company it is seen that the organization is not attaining the goals and objectives, due to
the inefficiency in the working pattern of the employees. The difficult task for the organization
is to enhance the future productivity level (Zhang, Ji & Fan, 2014). Empowerment of the
employees is also considered as an important aspect that is missing in the company. If the
employees of the organization are not efficient, then it can be difficult for the organization to
survive for the long term in the market. ADNOC should also maintain the trust of the customers
before conducting any business transactions. It is evaluated that company suffers from huge loss
due to the trust issues (Martinus, Sigler, Searle & Tonts, 2015).
Opportunities
Every company has many opportunities that are prevailing in the market, but it requires a right
time to grab the opportunities. ADNOC can easily access the market that gives direct impact on
the profitability of the organization. The growth rate of the company can be enhanced if the
company takes into consideration effective strategies (Polearuş, 2017). Abu Dhabi national oil
company also has an opportunity to acquire new market and to enhance the productivity level.
By taking into consideration ADNOC Company it is seen that it has an opportunity to enhance
the level of income at the constant increase rate. In the emerging market, the company can
achieve global expansion that gives positive impact on the working pattern (Ford, 2014).

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It is evaluated that the financial position of the company is good and success can be achieved
easily. It is evaluated that the company has its presence in many countries, so the company can
easily collaborate with the local players to grow (Phillips, 2016).
Threats
Due to the negative impact on the entire global economy and also the rise in the competition
level in the market has increased the threats to the company. Change in taxes is one of the
threats to the company. If there is a change in the tax rate, then the direct impact is given on the
company. So the major threat to the company is due to the changing pattern of the tax rates. The
company also has the external business risks that can give negative impact on the success of the
organization. Increase rate of interest also gives impact on the activities of the organization
(Luciani, 2016). If the rate of interest increases, then the profitability of the organization can be
reduced. It is also one of the major threats that the ADNOC faces and affect the growth of the
company. In this sector, the cost of the raw material is increasing day by day. It gives direct
impact on the cost of production that will give decrease in the overall profitability of the
organization (Hartley & Medlock III, 2013).
Strength a.) Leader
b.) Domestic and international market
c.) Large market area
d.) Reduced labor cost
Weakness a.) Inefficiency of the employees
b.) Trust issues
c.) Empowerment of the employees
Opportunities a.) Growth rate
b.) New markets
c.) New acquisition
d.) Income level
Threats a.) Tax changes

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b.) Business risks
c.) Increase in interest
d.) Financial capacity
Strategies, Goals, and objectives
The company should take into consideration effective strategies so that the goals and objectives
can be attained in an effective manner. To compete in the environment, it is seen that proper
strategies should be considered so that the activities can be conducted smoothly. The critical
issues that are identified are:
 Inefficiency of the Employees
 Empowerment of employees
 Competition level
a.) The inefficiency of the employees: This is one of the issue that is faced by the company.
The employees of the organization are inefficient towards the activities. Inefficiency
gives negative outcome on the activities that are conducted on the day to day to basis.
The company should adopt the strategy to give training to the employees, who are not
efficient towards the work (Eller, Hartley & Medlock, 2011).
ADNOC should take into consideration competence assurance management system. It is
considered as a system that is based to enhance the quality skills of the workers. It is considered
to maximize the performance level of the employees so that they can give their best towards the
work (De Graaff, 2011). The main emphasis of this program should be towards the new
employees so that the organization does not face any kind of problem in the performance
standards. Job instructional training should also be provided to the employees to enhance their
interest and raise the scope of the energy sector. The company needs proper planning to
overcome the problems. The human resource management takes into consideration all types of
training and also the development programs. The company should engage in the investment skill
and development programs of the employees (Cunha & Moneva, 2016).

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Training and development programs should be considered as a compulsory activity of the
organization. The company gives focus on raising the capability of the employees to rise beyond
the new challenges. Human resource management considers various factors for proper
implementing the planning system with the help of training that can lead to an expansion of
ADNOC (Shuen, Feiler & Teece, 2014). To compete in the market, it is essential to train the
employees and enhance the capability of doing the activities in an efficient manner. If the
employees of the organization give their best towards the activities, then it can be easy for the
organization to attain success. To make the employees efficient, training is only the strategy that
should be considered by the company (El-Gharbawy & Beydoun, 2016).
b.) Empowerment of employees: This factor is considered as an important and fundamental
practice. The empowerment enhances the betterment and also gives success to the
organization. The company should consider the strategy so that the activities can be
managed properly. The empowerment of the employees can be attained by delegating the
responsibilities. They can actively be involved in the decision-making process and also
encourages to conduct a participative style of leadership and management. ADNOC
should give focus on empowering the employees (Bass & Chakrabarty, 2014).
There are many strategies that must be considered by the company to empower
the individuals of the organization. Transferring and sharing of responsibilities with the
proper level and balance is also the great strategy that can help the organization to
survive in the competitive environment. The top management should be involved so that
the decision-making processes can be easily made. Empowerment is considered as an
important aspect that should be taken into consideration by every organization so that the
growth and profitability can be enhanced. If the company follows effective strategies,
then it is seen that the growth can be attained (Anitha, 2014).
c.) Competition: ADNOC also faces the issue related to the increase in the competition level.
If the company sells the product at high cost, then it can be difficult to survive in the
market. So, the cost-effective strategy should be taken into consideration so that the
growth can be attained in an effective manner (Ermida, 2014). To survive in the market,
it is important that the company should give emphasis on hiring efficient candidates in

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the organization. If there are no efficient employees, then it can give negative impact on
the working structure of the company. ADNOC should keep proper track on the
availability of the human resource so that the work base can be managed. The strategy of
the company is constructed on the strategic foundations like people, performance and
profitability, and efficiency. These are the principles through which all the decisions
related to strategic at ADNOC can be taken in the corrective manner (Elnaga & Imran,
2013).
These all are the strategies that should be considered by the company so that the
goals and objectives of the can be accomplished.
Conclusion
By analyzing the report, it is concluded that effective strategies should be taken into
consideration so that the company can easily accomplish goals and objectives. In this report, the
SWOT analysis of the company showcases the strength, weakness, threats, and opportunities for
the organization. It is seen that there are various issues that are faced by the organization like
Inefficiency of the Employees, Empowerment of employees and Competition level. These create
hindrances to operate the activities in a proper manner.
In this report, the main emphasis is given to the mission and vision of the organization. In
the last phase of the report, SWOT analysis is discussed through which the issues are identified.
Then the strategies are discussed on which the company should give focus, so that ADNOC can
compete in the competitive environment. It is evaluated that if the organization does not consider
proper strategies, then it can result in a negative outcome. When the company adopts proper and
effective strategies then goals and objectives can be accomplished properly.

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