Reflective Journal: Strategic Asset Management, MNG92100

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Strategic Asset Management
Assessment 2 Reflective Journal
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Table of Contents
Introduction......................................................................................................................................3
Workshop 1......................................................................................................................................4
What is the strategy?....................................................................................................................4
What is asset management strategy?............................................................................................5
Workshop 2......................................................................................................................................6
Fishbanks simulation Revisited...................................................................................................6
Phases of a Feasibility Study.......................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
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Introduction
This report will throw the light on the significance of the workshop as to how workshops
enhance the knowledge base. I attended two workshops related to the strategy, Fishbanks
simulation, asset management strategy, and feasibility studies in project management. It would
help in clarifying the concept of strategic asset management. In the feasibility studies, it would
highlight the different types of study and different phases of the feasibility study required for
project management.
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Workshop 1
What is the strategy?
Workshops are an excellent way of enhancing or developing knowledge about the specific topic.
I attended a workshop which was concerning the strategy. I came to know that in business terms,
strategy refers to the process of developing guidelines to establish the decision-making pattern
within an organization. Further, strategy guides the organizational personnel as to how to
undertake the critical activities of resource allocation and decision-making for the achievement
of the fundamental objectives and goals (Bharadwaj et al., 2013, pp-472, para-1). In a more
profound aspect, a business develops a strategy for taking a competitive move or a business
approach for capturing a large number of customers, business growth, attainment of pre-
determined goals, or achieving a competitive advantage. This workshop enabled me to clarify the
fact that plan and strategy are interchangeable terms where the plan refers to the development of
tasks for attaining a definite purpose without the scope of implementing changes. On the other
hand, strategy implies mainly the blueprint to achieve a particular goal with an adequate degree
of flexibility. It is the way I came to know the little difference between plan and strategy.
Organizations use strategic vision for communicating the strategy to the entire personnel.
Specific characteristics enhance the effectiveness of strategic vision such as desirability,
flexibility, accessible communication, graphically, focused, and most importantly feasibility.
However, I think incompleteness, rigid, over-broadness, or indistinctiveness harms the
effectiveness of the strategic vision (Wu et al., 2013, pp-566-568). This workshop made me
aware that the mere development of strategy is not enough for an organization, but it requires the
effectiveness to be checked. There are different tests available for examining the strategic
effectiveness named the competitive advantage test, fit test, and performance test as well.
Competitive advantage test helps in identifying whether the strategy can provide a sustainable
competitive advantage (Leonidou et al., 2015, pp 802-803). The performance test ensures the
attainment of excellent performance that measure by the market position, financial strength,
competitive advantage and profitability. At last, I became aware of the fit test that includes the
integration ability of strategy into the business operations, existing market conditions, business
competitive abilities as well as the organizational resources.
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What is asset management strategy?
The workshop helped me in gaining an adequate understanding of the asset management
strategy. Firstly, asset management defines as the process of coordinating the organizational
activities such as planning, strategy development and implementation for value realization from
the assets. The asset management strategy implies as the strategy involving the integration of
asset management objectives into the organizational objectives, documentation of plans,
processes, procedures and practices related to the organizational asset management (Baum, &
Vlok, 2013, pp-48, para-1). Integrated strategic asset management refers to the integration of
engineering, sustainability, information technological, economic elements, resilience, and
enhanced demand of the community, governance arrangements, and environmental aspects for
developing a holistic approach. I came to know that specific standards apply to the asset
management such as ISO 55000 Suite, Australian Design Standards, ISO standards and IEC
standards as well.
SWOT analysis constitutes a significant part of asset management. I know that SWOT analysis
refers to the framework that identifies the strengths, weaknesses, opportunities, and threats.
Strengths and weaknesses are the controllable and internal factors of an organization while
opportunities and threats constitute the external factors out of controlling capability of an
organization (Park et al., 2016, pp-712, para-1-5). Moreover, I came to know that strengths and
opportunities are the positive indications for an organization whereas threats and weaknesses
affect the organization negatively. I think that the development of an asset management strategy
is vital and useful for an organization when it includes specific steps. These steps comprise of
analysis of the external environment and internal environment; and formulation of asset
management policy, an understanding regarding what the stakeholder expect, objectives of asset
management and the Strategic asset management plan. This workshop made me aware of the
significance of asset management for an organization (Joseph et al., 2018, pp-21085, para-3). I
came to know that the disasters such as Piper Alpha – Oil rig fire 1987 and Deepwater Horizon –
Oil spill 2010 and other significant disasters could have avoided with the sound practices of asset
management. For an organization, improvement in financial performance, risk management,
enhanced goodwill, improvement in services and organizational sustainability and compliance of
social responsibility can attain with asset management practices.
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Workshop 2
Fishbanks simulation Revisited
This workshop assisted me in making aware of the Fishbanks simulation which provided the
ancient example regarding experiential learning. The example provided in the study article was
the construction of a fortress during the times of Julius Caesar. As per Julius Caesar, experience
referred to as being the best of teachers. I came to know that experiential learning theory
proposed by Kolb in 1984 involving specific steps of reflective observation, active
experimentation, concrete experience, and abstract conceptualization. The stages of experiential
learning theory integrated into the strategy simulation game named Fishbanks Simulation
(Arantes do Amaral, João Alberto & Hess, 2018, pp-376-380). In a competitive environment, it
would not be wrong to consider co-operation as a different element. I think that even after this,
co-operation should find as one of the critical requirements for the attainment of sustainable
business competitive advantage for dealing with the competition within a confined natural
resource.
Considering this, a group of different fishing businesses operated in the same water body can
take as an example. I became aware of the fact that in such a competitive environment, the
requirement of a common regulator arises for developing the set of rules regarding competitive
operations. These rules can be about the limit of using licensed fishing vessels for the operations
or the maximum limit of fish catching. This situation would call the operations of businesses
within the regulatory context. Long-term sustainable competitiveness can also achieve by
developing the rules as the co-operative business group. In both ways, every fishing company
requires to ensure the non-exhaustion of the fish resource (Jusup, Hruska, & Primorac, 2013, pp
99). I realized that the continuous availability of fish stocks helps in maintaining the net worth of
that company. I came to know that the alignment of asset management strategy with the business
strategy provides maximum benefit to the customers as well as the business itself.
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Phases of a Feasibility Study
The topic of feasibility studies provided me with knowledge regarding the beginning of asset
management life-cycle. This workshop made me aware of the different phases of the feasibility
studies. Feasibility studies referred to as the process of structured evaluation of all the available
alternative options. These studies involve the formulation of a business case and most feasible
development plan. For the developed plan, the estimation of operating costs and capital
requirements is done (Peterka, & Saric, 2015, pp-286, para-1-6). The importance of feasibility
studies in project development lies in the fact that it provides a strong foundation. The economic
evaluation studies of an asset management life-cycle play a significant role in project
management such as enhances the likelihood of success and improves the wrong move of the
project. With this workshop, I came to know that there are three basic study types named
preliminary feasibility studies, definitive feasibility studies and conceptual studies.
The preliminary feasibility study aims at ascertaining the project feasibility in economic terms
and is appropriate for meaningful economic evaluation, positive project acceptance, and
comparison of alternatives in a detailed manner and so on. Definitive feasibility study assists
project management in providing a basis for project approval and suitable mainly for the
finalization of market negotiations and detailed economic evaluation. I came to know that
conceptual study implies preliminary action taken for the estimated project operating costs and
capital. This study is not appropriate for positive project acceptance as well as meaningful
economic evaluation. I became aware of the fact that a study encompasses typical phases such as
preliminaries & kick-off, initiation, engineering & estimation, and validation with reporting. The
first phase involves client kick-off, client alignment and reviewing and discussing with the client
about the reporting structure, execution plan and strategy of the client, desired outputs of study,
and study scope and so on (Kao I-Chan, 2018, pp-3-4). I came to know that the second phase of
initiation concerns with the validation of team roles, timing and scope as well. The next step of
engineering & estimation shows that execution of focused study involving HAZOP review,
economic model, HSE in design, and process engineering and so on. The last phase deals with
the validation of the study presentation and findings.
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Conclusion
With the visit to two workshops, I became able to enhance my knowledge base. The first
workshop helped in making me aware of the concept “strategy” and “asset management
strategy’. The second workshop managed to provide me with the Fishbanks Simulation and the
different phases of the feasibility study in the project management. The asset management
strategy has become crucial for organizations in dealing with the business environment
competitiveness.
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References
 Arantes do Amaral, João Alberto & Hess, Aurélio 2018, ‘The WEBSIM FISHBANKS
Simulation Laboratory: Analysis of Its Ripple Effects’, International Journal of
Instruction, vol. 11, no. 2, pp. 369–384. DOI: https://doi.org/10.12973/iji.2018.11225a
 Baum, J & Vlok, P. J 2013, ‘Mapping primary constraints in physical asset management
strategy execution, using social network analysis’, South African Journal of Industrial
Engineering, vol. 24, no. 2, pp. 47–58. Retrieved from: https://search-proquest-
com.ezproxy.scu.edu.au/docview/1462754668/fulltextPDF/5EC2AC0313BD40BDPQ/1?
accountid=16926
 Bharadwaj, A., El Sawy, O.A., Pavlou, P.A. & Venkatraman, N. 2013, ‘Digital business
strategy: Toward a next generation of insights’, MIS Quarterly: Management Information
Systems, vol. 37, no. 2, pp. 471–482. Retrieved from:
http://content.ebscohost.com.ezproxy.scu.edu.au/ContentServer.asp?
T=P&P=AN&K=87371552&S=R&D=iih&EbscoContent=dGJyMNHX8kSeprI4y9f3OL
Cmr1GeprZSsKq4SreWxWXS&ContentCustomer=dGJyMPGtr0i3qbJNuePfgeyx44Dt6f
IA
 Joseph, Tibin, Ugalde-Loo, Carlos E, Liang, Jun & Coventry, Paul F 2018, ‘Asset
Management Strategies for Power Electronic Converters in Transmission Networks:
Application to Hvdc and FACTS Devices’, IEEE Access, vol. 6, pp. 21084–21102.
Retrieved from: https://ieeexplore.ieee.org/stamp/stamp.jsp?tp=&arnumber=8336875
 Jusup, Iva, Hruska, Domagoj & Primorac, Dinko 2013, ‘Determinants of competitive
advantage in tuna farming industry in Croatia’, Journal of Enterprising Communities,
vol. 7, no. 1, pp. 95–102. DOI: https://doi.org/10.1108/17506201311315644
 Kao I-Chan 2018, ‘Study on the Feasible Strategies of Overall Construction Project
Management in the Ecological Industrial Community of Sustainable Development Based
on Ecosystem Theory’, MATEC Web of Conferences, vol. 227. DOI:
https://doi.org/10.1051/matecconf/201822703004
 Leonidou, Leonidas C., Fotiadis, Thomas A., Christodoulides, Paul, Spyropoulou,
Stavroula & Katsikeas, Constantine S. 2015, ‘Environmentally friendly export business
strategy: Its determinants and effects on competitive advantage and
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performance’, International Business Review, vol. 24, no. 5, pp. 798–811. DOI:
http://dx.doi.org/10.1016/j.ibusrev.2015.02.001
 Park, Sanghoon, Park, Sang I. & Lee, Sang-Ho 2016, ‘Strategy on sustainable
infrastructure asset management: Focus on Korea׳s future policy directivity’, Renewable
and Sustainable Energy Reviews, vol. 62, pp. 710–722. DOI:
http://dx.doi.org/10.1016/j.rser.2016.04.073
 Peterka, Suncica & Saric, Marko 2015, ‘FROM IDEA TO BUSINESS VENTURE (IN
PHARMACEUTICAL INDUSTRY)’, Contemporary Legal and Economic Issues, vol. 5,
pp. 281–305, Retrieved from:
https://search-proquest-com.ezproxy.scu.edu.au/docview/1771604472/fulltextPDF/
84061D694C2D48A6PQ/1?accountid=16926
 Wu, Dazhong, Greer, Matthew John, Rosen, David W. & Schaefer, Dirk 2013, ‘Cloud
manufacturing: Strategic vision and state-of-the-art’, Journal of Manufacturing Systems,
vol. 32, no. 4, pp. 564–579. DOI: http://dx.doi.org/10.1016/j.jmsy.2013.04.008
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