Strategic Issue Analysis: COVID-19 and Australia's Corporate Strategy

This report presents a strategic analysis of the COVID-19 pandemic's impact on Australia, framed with Scott Morrison as the CEO. It examines the key risks, opportunities, and threats faced by Australia as an 'organization' during the crisis, providing insights into leadership challenges. The report also assesses the direct and indirect impacts of the pandemic on the Abu Dhabi National Oil Company (ADNOC), exploring lessons learned. The analysis covers the escalating situation, risks like operational vulnerability and economic decline, and opportunities such as enhanced workplace safety infrastructure and environmental contributions. The report uses statistical data to illustrate the spread of the virus and its effects on the country. The study also highlights the importance of considering employee well-being during lockdown. It concludes by emphasizing the need for proactive measures to mitigate the detrimental effects of the pandemic, drawing from academic sources to support its arguments.

Running head: CORPORATE STRATEGY AND RESPONSIBILITIES
Corporate Strategy and Responsibilities
Name of the Student
Name of the University
Author Note

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Executive Summary:
The modern world is observed to be tremendously affected by the fatal impact of the COVID
19 or more widely known as Corona Virus. Majority of the developed and developing
economy are observed to face the heat associated with the spread of virus. The national
government of multiple nations across the globe have called for total or partial lockdown to
tackle the detrimental impact of the pandemic. The virus which was first came into the scene
in a Wuhan province of China. Australia, as a nation, has called for massive measures for
safeguarding their citizens, however, the means of doing the same, is certainly limited. As a
result, the study describes the key risks, opportunities and the threats that Scott Morrison, the
prime minister of the nation is required to deal with. For the strategic issue analysis, the
country is considered as a company where the prime minister is managing the position of the
Chief Executive Officer. Along with that, the study also delivers a detailed assessment on the
impact of the issue on the business operations of a chosen company of United Arab Emirates
named as Adnoc. From the study, it is clear that the CEO of Australia is facing the fatal threat
of human loss in the company, decline in production along with decrement of the resources in
the company as a result of their service to their employees during the pandemic. Along with
that, the study shows that ADNOC faced a massive in demands and price of the crude oil at
the international market.

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Table of Contents
Introduction:...............................................................................................................................3
Context 1: Australia as a company and Coronavirus.................................................................5
Situation:................................................................................................................................5
Risks and Threats:..................................................................................................................9
Opportunities:.......................................................................................................................10
Context 2: ADNOC and impact of COVID 19:.......................................................................12
Overview of the company:...................................................................................................12
Direct and Indirect impacts:.................................................................................................12
Learning:..............................................................................................................................14
Conclusion:..............................................................................................................................14
References:...............................................................................................................................16
Appendix:.................................................................................................................................19

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Introduction:
The threat of pandemic diseases has certainly enhances the vulnerability of the
national and international governments in maintaining good health of their citizens. With a
close look at the impact of the pandemic diseases, Godfroid (2017), mentioned that the
countries require proactive measures and precautions to minimize the detrimental impact of
the disease. According to the comments of Graham and Sullivan (2018), the pandemic
diseases hit the countries in such rough manner that the countries have no option left other
than calling for a medical emergency. As per the comments of Famulare and Hu (2015), the
detrimental impact of the pandemic infectious diseases forces the countries towards receiving
financial repercussions and that certainly limits the economic growth of the countries.There
are several countries which have called for total lockdown in their regions and that is possibly
the worst thing that can happen to a country’s economy (Business Insider. 2020). The world
is suffering from one such pandemic and the brutal impact of Corona Virus shortly known as
COVID 19. The World Health Organization has termed it to be one of the top most medical
disaster in last 100 years and that brutal impact of the same on the mankind, certainly reflects
the severity of the disaster.
The COVID 19 was initially found in a wet market of the Wuhan province of China
(Aljazeera.com. 2020). There is a profound link between a renowned wet market of the
province and the cases of corona spread. The market is popular amongst the local Chinese
people for the live slaughtering of diverse range of animals and selling of the same. The
hygiene level maintained in the market was considerably poor and from the linkage of first
set of coronavirus patients and from the records of the unofficial patient zero, the market is
considered to be the epicentre of the pandemic in China (Aljazeera.com. 2020). With
lightning speed of the spread of virus, the entire world is suffering from the impact of the

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pandemic. China was the first nation to get badly affected by the spread of corona, however,
currently, it is a global menace which has affected European nations like UK, Spain, Italy and
France in dangerous manner. Along with that, the Asian countries are also facing the severity
of the pandemic. Australia is also one of the countries that has faced substantial impact of the
pandemic both in social and financial perspectives. Considering Australia as a company and
Scott Morrison as the CEO of the company, the study evaluates the impact of the mega crisis.
Along with that, the study delivers an important analysis of the key risks, threats and
opportunities for Australia as an organization which Scott Morrison have to deal. Other than
this, the study also evaluates the impact of the pandemic on a real life organization named as
Abu Dhabi National Oil Company which is commonly known as ADNOC. The study
assesses the direct and the indirect effects of coronavirus on the business performances of the
company and along with that, the study also identifies the lessons that the company can learn.

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Context 1: Australia as a company and Coronavirus
Situation:
(Information Courtesy: Worldometers.info. 2020)
With an insightful look at the statistics of Australia, it is understandable that the
nation had started to face the heat of the pandemic from the 10th day of March. Initially, the
country was observed to face a low rate of total cases from 1th of February to 10th of March,
however, from 10th of March, the number of total cases in the nation, experienced a rapid
increment. On the 10th day of March, the country faced 116 number of total cases which at
the 31st day of the month, increased to 4763 (Worldometers.info. 2020). Hence, the decline of
the situation is pretty prominent.

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(Information Courtesy: Worldometers.info. 2020)
A close look at the statistics of active cases in the nation, it is understandable that the
country faced the danger from 13th of March when the active cases for the nation was 170 and
that at the end of March went up to 4398 (Worldometers.info. 2020).

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(Information Courtesy: Worldometers.info. 2020)
With a detailed consideration towards the statistics of the daily new cases in the
nation, it is visible that the crisis started to go out of control of the government from 22nd
March and the increasing number of citizens started getting affected by the virus. On 20th
March, the number of new cases in the nation was 172 and within two days the number went
up to 537 (Worldometers.info. 2020). Such substantial growth in the number of the new cases
continued and on the last day of March, there was 303 number of new cases in the nation
(Worldometers.info. 2020).

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(Information Courtesy: Worldometers.info. 2020)
The first death in Australia with COVID 19 was registered on 2nd of March and the
nation reached double digit casualty on March 25th. On the 31st of March, the country limited
the number of deaths to 20 and that signifies the tireless services of the health workers and
healthcare service providers (Worldometers.info. 2020).

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(Information Courtesy: Worldometers.info. 2020)
The average rate of death is kept under control by the government in a
professional manner. The highest number of deaths took place in a particular day is 3 and that
happened on 25th, 29th and 1st of April (Worldometers.info. 2020).
Risks and Threats:
The primary risks for Australia as a business entity will be the threat of being
operational and being more vulnerable. As per the comments of Winsborough and Chamorro-
Premuzic (2017), the business organizations that are undergoing severe financial crisis where
the sustainability and corporate health of the organization is at stake, it becomes important for
the company to close down the operations to reduce the burden of operational costs. With a
close look at the opinion, it is visible that the selected country as a business entity also faces

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the same concern where being wholeheartedly operational, will cost the nation severe
damage. In case, the nation continues to operational, the disease has higher possibility of
spreading amongst the general citizens and that will increase the number of people affected in
the nation. Following the characteristics, the increment in the number of the hew cases will
be a menace for the limited medical resource and health care providers of the nation and at
the same time, that will place the country towards increasing casualties. As a result, the state
of being operational has the possibility of being more dangerous strategic decision for
Australia as a company.
On the other hand, Keller and Meaney (2017), mentioned that the instant interruption
in the usual business activities of any business organization, has the possibility of placing the
company in front of considerable amount of losses. Australia, as a business entity, swill be on
the verge of facing a substantial decline in their economic growth and at the same time, the
prolonged period of lock down can also position the organization in front of recession. Apart
from this, Lorinkova, Pearsall and Sims Jr (2013), highlighted that the labour and
employment legislation of the business friendly nations ensures that the well- being of the
employees is maintained by the companies as one of the top most priority. With an efficient
understanding of the fact, it is visible that Australia, as a company also has the necessity to
take care of the employees who are the general tax payer citizens of the nation. In case, the
country goes for lock down, it must ensure that all sort of basic needs of the citizens of the
nation are appropriately met by the nation during the time of lockdown. Hence, this will also
increase the challenge for Australia as a company.
Opportunities:
On the other hand, the COVID 19 has also contributed with some opportunities for
the country. One of the top most opportunity for Australia as a company is the enhancement
of the workplace safety infrastructure of the nation. According to the comments of Vroom

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(2003), the capacity of the modern organizations in developing an efficient workplace health
and safety infrastructure is considerably important for the organizations in motivating their
employees for the desired improvement in their performances. At the same time, Valentine
and Fleischman (2008), claimed that the companies are liable to ensure that their employees
do not face any fatal accident at the workplaces and in case, they face such accidents, the
companies have the obligation of taking apt care of the issue. Hence, the improvement in the
infrastructure of the workplace health and safety is considerably important for the companies.
Relating to the same with Australia as a company, it is visible that the enhancement of the
healthcare infrastructure of the nation for limiting the diverse impact of COVID 19 and
safeguarding the general citizens, the country has the possibility of achieving a complete
restructure of their medical facility and WHS facility from the perspective of a business
entity.
Other than this, Lencioni (2006), highlighted that the companies have the obligation
of ensuring that they do not harm the environment through their business activities. Even
after development of considerable amount of awareness amongst the business organizations
regarding the importance of environmental sustainability, there are several companies that are
contaminating the environment. While the actions of the business companies were only
limited to the triple bottom line management or the development of the environmental
sustainability reports, the threat of COVID 19 is pretty substantial in enforcing the lockdowns
across the globe. Australia also was on the verge of limiting its usual trade activities and went
to lock down. As a result, Australia from the perspective of a business organization, has the
scope of contributing to the betterment of the environment.

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Context 2: ADNOC and impact of COVID 19:
Overview of the company:
Abu Dhabi National Oil Company is the one of the largest government owned
corporation in United Arab Emirates. The selected organization operates in the oil and gas
industry and was established in the year 1971 (Adnoc.ae. 2020). The founder of the
organization which is currently headquartered in Abu Dhabi was the ruler of Abu Dhabi,
Zayed bin Sultan Al Nahyan. Some of the important names in the executive management of
the company are H. E. Dr. Sultan Ahmed Al Jaber, the Chief Executive Officer of the
organization, Mr. Abdulmunim Saif Al Kindy, the Executive Director, People, Technology &
Corporate Support Directorate, Mr. Abdulaziz Abdulla Alhajri, the Executive Director,
Downstream Directorate, Mr. Khaled Salmeen, Executive Director, Marketing, Supply &
Trading Directorate and Mr. Yaser Saeed Almazrouei, the Executive Director, Upstream
Directorate (Adnoc.ae. 2020). The product offerings of the company are petrochemicals,
crude oil, natural gas and oil products. The company employs more than 55000 number of
employees and along with that, the company is able to achieve a revenue of approximately 60
billion US dollars in the year 2014 (Adnoc.ae. 2020).
Direct and Indirect impacts:
The United Arab Emirates is also affected by the diverse impact of the Coronavirus as
well. Fortunately the impact of the pandemic is at mild stage at the nation. There is 1024
number of registered total cases with 8 deaths and 96 successful recoveries in the nation
(Worldometers.info. 2020). At current stage, there is 920 active cases including two critical
cases in the nation (Worldometers.info. 2020). In such situation, the business actions of the
selected company is facing considerable number of obstacles. One of the direct obstacle faced
by the company is the declining purchase intention of the customers (Martin 2014). The
organization is recognized as a major source of the petrochemical supply and the crude oil to

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the European countries. Having said that, the detrimental impact of the COVID 19 on the
European countries is observed to be considerably high and that is evident with the situation
of the countries like United Kingdom, Spain and Italy (Regencia and Siddiqui 2020). All the
above mentioned countries have decreased their purchase in substantial manner and invested
the same on purchase of the health care infrastructures. With a close look at such an action, it
is understandable that the selected company will face the heat of the same. As a result, it is
understandable that the decrement in the sales of the company is a major issue developed
with the COVID 19. With decreasing sales, the company faced great share of gap in their
expected quarterly profits along with revenues and that has the possibility of enhancing the
concern of the senior management of the company on the top of declining financial stability
of the company (Spglobal.com. 2020).
Other than this, the threat of good health of the employees and the executives working
in the company is also a major direct issue for the company. With a close look at the speed of
spreading of the pandemic and rate of casualty, it is evident that the company certainly has
greater concern for the health and safety of their employees. As per the senior management of
the company and the current Chief Executive Officer of the company, the employees are the
most important stakeholder group for the company and in such situation, the company is
determined in ensuring the workplace safety of their employees is managed with higher level
of expertise (de Klerk and Stander 2014). With possible decline in the demands of their
products, the company has the necessity to reduce the production. This creates a scope of
chaos in the workforce as many of the employees will expect a substantial job cut. Hence two
major issues for the company in both direct and indirect forms respectively are the
requirement of contributing to safeguard the employees both in the consideration of
employment and health (Manner 2010). Other than this, an important concern for the senior
management of the company will be the decrement of the crude oil prices at the international

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market. With the demands of petrochemical products and the crude oil going rapidly down at
the international market, the company is observed to be on the verge of reducing the pricing
of their products (Aljazeera.com. 2020). As a result of the same, there is expected to be a
substantial gap between the earned and expected revenue at the end of the new financial year.
The growth of the company in the oil industry is expected to go down as well and the
company requires to undertake emergency precautionary measures for maintaining the
financial sustainability of their business actions.
Learning:
The primary lesson for the organization with the pandemic will be to call for
precautionary measures and apply the practical skills of risk control. The organization has the
necessity to come up with reduced production schedule to limit the extent of loss. Other than
this, an important learning will be to concentrate on the health of the employees to ensure that
the company receives no information of any casualty of their employees by the effects of the
pandemic. Other than this, the pandemic delivered an important lesson for the company
which is the necessity of improving the company’s corporate citizenship (Mammilla and
Siegel 2001). The company has the necessity to come with substantial monetary donation for
the improvement of the health care infrastructure of United Arab Emirates to ensure that the
general people of the nation gets the appropriate medical intervention in saving themselves
from the fatal impact of the pandemic, Corona.
Conclusion:
On a concluding note, it is visible that the Scott Morrison has a mammoth task in
hand when Australia with their limited capabilities, decide to fight against the pandemic for
protecting their each and every citizens. The CEO of Australia as a business entity, is
expected to face the risks such as human loss in the company, loss of production and

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reduction in the resources of the company for the purpose of delivering the mutually accepted
services to the employees. The opportunity for the CEO will be to contribute to the
enhancement of the quality of environment and improvement of the WHS infrastructure for
their employees. ADNOC on the other, hand, faces the threat of reduction in the prices of the
crude oil, concern with the health of the employees and the low demands of the oil industry
products from the European countries. The major lesson for the company with the pandemic
is the necessity of being a responsible corporate citizen.

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References:
Adnoc.ae. 2020. ADNOC - Abu Dhabi National Oil Company. [online] Available at:
<https://www.adnoc.ae/>
Adnoc.ae. 2020. Executive Management. [online] Available at:
https://www.adnoc.ae/en/about-us/executive-management
Aljazeera.com. 2020. As Oil Prices Crash, Saudi, UAE Businesses Scramble For Cash.
[online] Available at: <https://www.aljazeera.com/ajimpact/oil-prices-crash-saudi-uae-
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Business Insider. 2020. A Third Of The Global Population Is On Coronavirus Lockdown —
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de Klerk, S. and Stander, M.W., 2014. Leadership empowerment behaviour, work
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Famulare, M. and Hu, H., 2015. Extracting transmission networks from phylogeographic data
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Godfroid, J., 2017. Brucellosis in livestock and wildlife: zoonotic diseases without pandemic
potential in need of innovative one health approaches. Archives of Public Health, 75(1), p.34.

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Graham, B.S. and Sullivan, N.J., 2018. Emerging viral diseases from a vaccinology
perspective: preparing for the next pandemic. Nature immunology, 19(1), p.20.
Keller, S. and Meaney, M., 2017. High-performing teams: A timeless leadership topic.
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Lencioni, P., 2006. The five dysfunctions of a team. John Wiley & Sons.
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Regencia, T. and Siddiqui, U., 2020. Spain Death Toll Rises By 932 In One Day: Live
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updates-200402230546497.html>
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Coronavirus, Oil Crash | S&P Global Platts. [online] Available at:
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reveal-406-bil-stimulus-to-support-economies-hit-by-coronavirus-oil-crash>

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Valentine, S. and Fleischman, G., 2008. Ethics programs, perceived corporate social
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<https://www.worldometers.info/coronavirus/>

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Appendix:

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