Comprehensive Business Assessment: Arabian Engineering Inc. Strategies

This report provides a comprehensive business assessment of Arabian Engineering Inc., an EPC company. It analyzes the company's operations across four functional areas: human resources, accounting and finance, sales and marketing, and operations, detailing key activities within each. The report also examines the company's recruitment processes, differentiating between internal and external methods. Furthermore, it explores the sources of additional funds, differentiating between internal and external sources, and highlights the company's marketing activities. The analysis is based on publicly available information, providing a valuable overview of Arabian Engineering Inc.'s business strategies and practices. The report concludes with a summary of the key findings and insights into the company's overall performance and strategic approach.

Arabian Engineering Inc.
Business Assessment
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Table of Contents
Introduction................................................................................................................................2
Activities within Functional Areas.............................................................................................2
Human Resources...................................................................................................................3
Accounting & Finance...........................................................................................................4
Sales & Marketing..................................................................................................................4
Operations..............................................................................................................................4
Recruitment Process...................................................................................................................5
Internal Recruitment Process.................................................................................................5
External Recruitment Process................................................................................................6
Sources of Additional Funds......................................................................................................7
Internal Sources of Additional Funds....................................................................................7
External Sources of Additional Funds...................................................................................8
Marketing Activities...................................................................................................................8
Conclusions................................................................................................................................9
List of References....................................................................................................................11
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Introduction
Arabian Engineering Inc. is a renowned EPC company. The company deals in design,
engineering and other associated activities. The company is people oriented and ensures to
install facilities that bring more safety to the employees working there. Moreover, the client
base of the company is appreciable with some big names such as Exxon Mobil, Shell, and
others. The company has appreciable culture and the employees within the company are
oriented towards the customers. The company has variety of certifications such as API 6A,
6D and others that reflects credibility in the company’s brand. These aspects have been
discussed in the chapters ahead.
The purpose of this document is to understand the important activities that are conducted in
the four functional areas of the company, namely, human resource, accounting and finance,
sales and marketing, and operations. Moreover, the recruitment process is also being studied.
The sources of additional funds for the company have been considered for the study. In the
end, a conclusive remark has been given based on the overall study. The company
information has been brought from the online sources. The paper has been divided into four
chapters discussing the four aspects, namely, functional areas, recruitment process, sources of
fund and marketing activities.
Activities within Functional Areas
The company conducts its business through four functional areas, namely, human resources,
finance, sales and marketing, and operations. The subsequent sections discuss these areas in
brief with the consideration of the activities in each function.
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Human Resources
The human resource department of the company is responsible for the management of the
people who are working with the company. Given below are the activities that are the
responsibilities of human resource division
Activity #1: Employee Development
The employee development is the important aspect that is taken care of within the company.
The reason behind this is that the company hires young expats more and they are less aware
of the local working environment. In such cases, it becomes important that the company
focus on employee development for effective growth (Need, 2006).
Activity #2: Safety and Health
The employees work in the high stress environment where the physical effort is critical.
Moreover, the employees work in the heavy machinery environment which is associated with
high risk in general. Therefore, ensuring their safety is necessary. Moreover, it is important
that the employees are healthy as per their mental and physical capability is concerned.
Therefore, the company conducts periodic assessment of their heaths.
Activity #3: Employee and Labour Relations
The company is more dependent on the people to conduct the business activities and,
therefore, having good relations with the employees ensures sustainable development. This is
the reason that the human resource department focus on nurturing good relations within the
employee group.
Activity #4: Recruitment and Selection
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The recruitment and selection is also the major responsibility of the human resources
department within this company. The rate of attrition stays on the higher side because the
expats switch company faster than locales. The HR department is needed in this situation to
keep the demand of human resource fulfilled by hiring more number of employees (Newell,
2005).
Accounting & Finance
The accounting and finance department within the company has important role. It controls the
expenditures and ensures that the company is financially healthy. There are multiple activities
that are handled by the accounting and finance department. Four important activities are
financial reporting to stakeholders, management of funds, revenue management, and expense
and obligation management. The financial reporting are done on monthly and yearly to the
shareholders such as internal management, shareholders, and government. The company
receives funds in the form of share which is managed by this department.
Sales & Marketing
The sales and marketing of the company is responsible to attract clients through the use of
online and offline sales and marketing strategies. The department within the company
handles multiple activities. Some of them are customer research and target identification,
preparation of promotional plans, internal and external brand management, and product
development. These activities are primarily handled by the team within this company. The
branding of the company to the employees and the customers is an important aspect as it is
helps everyone know about the company (Rouzies et al, 2005).
Operations
The operation of the company covers all the activities that are core to the company such as
manufacturing and maintenance in the oil & gas refineries, power industries, and
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petrochemicals. The day to day operation of the company is handled by the number of line
managers deputed with specific capabilities and skills. The major activities covers various
aspects such as providing services, construction of engineering facilities for the clients,
equipment procurement, and engineering project design.
Recruitment Process
The recruitment process of the company is focused on hiring the individuals who are good at
their skills and know what they are doing. The capability to think with clarity and act
properly is the key aspects that are expected from the employees who join the company. The
human resource department within the company takes care of all the activities associated with
the recruitment process. The recruitment within the company should takes place in two ways,
either from within the organization or from outside the organization. These processes have
been discussed below as internal recruitment process, and external recruitment process.
Internal Recruitment Process
Given below are the two recruitment processes that should be conducted internally within the
company.
1. Selection of the top talents: The Company mostly relies on this method to choose the
suitable candidates for the higher positions. This is also the suitable method for the company
and it is suggested. This method ensures that the company choose the right individual for the
particular post. The beneficial aspect in this method is that the employer stays completely
aware of the strengths and weaknesses of that employee and can either select or neglect on
will. Moreover, the company will have less challenge in identifying employees who can fit in
the organizational culture. The reason is the existing employees are working within the
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company for long and well aware of the company and its culture (Yakubovich and Lup,
2006).
2. Internal Advertisement: If the human resource department has limited awareness of the
employees who are working within the employees and are not sure about the interest level of
all the employees, then this method is the most suited. Through the advertisement, the
company employee comes to know about the vacant positions and interested individuals
apply for the same. This method also gives the opportunities to the individuals who are
working in the different department and are willing to change the department and has the
capability to take new challenges.
External Recruitment Process
Given below are the recruitment processes that are suitable for the external recruitment.
1. Job Portals: The use of online and offline job portals are the well suited format for this
company to reach the candidates who are in the market and willing to work in company like
this. The job portals help the company reach the potential employees and vice-versa. The
company can also use the existing listed profiles on various online job portals and cold call
them for the positions. The posting on the employment newspapers also help the company
reach the individuals who are not active on the online portal and who holds enough skills to
handle particular job. The other form of offline areas can be newspapers ads and magazines
which can be almost similar to the employment newspapers.
2. Recruitment Agencies: If the human resource department is not willing to invest time and
energy in hunting the right candidates in the external market, then hiring recruitment agencies
can be the most suitable options. The recruitment agencies, if they are good, then they hold
enough hold of the market that they can instantly fulfil the need of the company. Moreover,
the company can also sign long term contract based on the future expected employee
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recruitment considering the products sales and current attrition rate. This will help the
company get right employees without major hassle (Hotopp, 2000). One important aspect to
be considered is that the recruitment agencies must be aware about the exact job description
else it generally creates issue for both the parties as the time and resources of both the parties
are wasted.
Sources of Additional Funds
The consideration of the expansion for the company will be an opportunity to cater to the
increased customer base. Moreover, it will allow the company get access to the increased
field of resources. This requires that the company source funds and invest in the appropriate
diversification. There are two sources from where the additional funds can be brought in for
the investment, namely, internal and external. They have been discussed in the following sub-
sections.
Internal Sources of Additional Funds
Given below are the two sources of additional funds that can be brought in internally:
1. Owners’ Fund: The Company can take additional funds from the owners if they have
enough money for the direct investment. This can be suitable source of funding. The reason is
that the company does not have to repay the interest on such funds. Moreover, the appetite for
the risks can be widened as if the fund is lost then the company does not have to be
answerable to a greater extent.
2. Net Profit: The profit earned from the sales can be reinvested in the expansionary plans
instead of giving dividends to the shareholders. This profit can be easily invested similar to
the owners’ fund. Moreover, as the shareholders understand that the expanding company is
likely to bring more return on their shares, therefore, there is limited roadblock in such
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investment. Also, the company will be less answerable as all the investments carry risks of
this kind (Brown, 1970).
External Sources of Additional Funds
Given below are the sources of additional funds that can be brought in externally:
1. Investors: The Company is of repute and it is likely that many investors will be willing to
invest in the activities of the company that are promising to bring good returns. Therefore, the
company can ask its existing investors to further invest in the company’s venture. There is
one glitch at this point. The lack of promising aspect in the investment might scare off the
investors. Therefore, assurance from the company is vital. The company can dictate its future
plans and the likely growth company will achieve due to the favourable circumstances.
2. Loans: The Company can also take loans from the public or private banks within the
region. The loans can be easily invested and it is most likely that the company will get loans
as desired due its reputation and clientele. However, one challenging aspect in this is that the
loans bind the company and the return on investment becomes a critical aspect to repay the
loans. Unlike the rest of the sources of funds discussed above, the loans must be repaid at
anyhow to the lenders, and it does not matter whether the company is in loss or profit
(Becketti and Morris, 1992).
Marketing Activities
There are various marketing activities that are considered by the company to promote its
products and services. The marketing activities are an important aspect to let the potential
customers know about the services that are provided by the company and the way this
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company help their life make easier. Given below are the two marketing activities of the
company related to promotion.
1. Sales Agents: The deployment of sales agents within the company has been the appreciable
move till now and it is suggested to be continued. The reason behind this choice is that the
major target customers of the company are those companies who are substantial size and has
enough chaos to pull while choosing right service companies. In such scenario, sales agents
reach directly to the concerned individuals and pitch the products and services provided by
the company. Maintaining a good relationship is important in this method (Choi et al, 2000).
The sales agents should be deployed throughout the network of existing and potential
customers.
2. Magazines and Newspapers: The managers within the companies who are the actual
decisions makers mostly prefer to read newspapers and magazines and these are the great
source of information for them. Therefore, advertisement of company’s products and services
in those magazines and newspapers can be the key to attract the interested customers.
Moreover, it also aids the sales agents. If a manager has already read about this company in
magazine or newspaper then that manager might be more supportive due to familiarity with
the company’s name.
Conclusions
The overall study of the company helped identify the areas where the company can move
with the possible source of funding. The major functions with the company, namely, human
resource, sales and marketing, operations, and accounting and finance are doing well. It has
been recommended through the study that the company should move out in the market and
invest further to attract more customers and gain increased access to the resources.
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Moreover, there are various recruitment methods that can be applied by the company to
attract the right employees. Some of them discussed above are already being used by the
company, and there are some that have been suggested as considered appropriate.
The learning from this study is appreciable. There were various organizational activities
about which I learned. The paper helped me understand the various activities that are
conducted within the organization and the reasoning behind the selection of particular activity
to conduct the business functions.
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List of References
Becketti, S. and Morris, C., 1992. Are bank loans still special?. Economic Review-Federal
Reserve Bank of Kansas City, 77(3), p.71.
Brown, P., 1970. The impact of the annual net profit report on the stock market. The
Australian Accountant, 60(3), pp.277-283.
Choi, H.R., Kim, H.S., Park, Y.J., Kim, K.H., Joo, M.H. and Sohn, H.S., 2000. A sales agent
for part manufacturers: VMSA. Decision Support Systems, 28(4), pp.333-346.
Hotopp, U., 2000. Recruitment agencies in the UK Existing sources of information on
temporary workers differ widely. Labour market trends, 108(10), pp.457-464.
Need, W.C.D.H.P., 2006. Human resource management: Gaining a competitive advantage.
Newell, S., 2005. Recruitment and selection. Managing human resources: personnel
management in transition, pp.115-147.
Rouziès, D., Anderson, E., Kohli, A.K., Michaels, R.E., Weitz, B.A. and Zoltners, A.A.,
2005. Sales and marketing integration: a proposed framework. Journal of Personal Selling &
Sales Management, 25(2), pp.113-122.
Yakubovich, V. and Lup, D., 2006. Stages of the recruitment process and the referrer's
performance effect. Organization science, 17(6), pp.710-723.
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