In-Depth Strategic Analysis of Omantel: McKinsey 7S and Porter's Five

This report provides a comprehensive analysis of Omantel, a leading telecommunications company, using various strategic management tools. It begins with an overview of the company, followed by an application of the McKinsey 7-S model to assess internal alignment across structure, strategy, skills, systems, shared values, style, and staff. Porter's Five Forces theory is then used to evaluate the competitive landscape, considering the threat of new entrants, substitutes, bargaining power of suppliers and customers, and industry rivalry. The balanced scorecard approach is discussed as a performance management system, followed by a VRIO analysis to identify Omantel's competitive advantages and resources. A PESTLE analysis examines the impact of political, economic, social, technological, legal, and environmental factors on the company. The report also includes a SWOT analysis summarizing Omantel's strengths, weaknesses, opportunities, and threats. Finally, the current management structure is described, and recommendations for improvement are provided. Desklib offers similar solved assignments and resources for students.

Organizational Behaviour

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
Overview of company..................................................................................................................2
MAIN BODY..................................................................................................................................2
McKinsey 7's model....................................................................................................................2
Porter's five forces theory............................................................................................................4
Balanced scoreboard....................................................................................................................5
VRIO analyses of Omantel..........................................................................................................6
PESTLE analysis of Omantel......................................................................................................6
SWOT Analysis.........................................................................................................................10
Current management structure of Omantel................................................................................11
Recommendations......................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The analyses of the company are one of the important and valuable factor which enables the
organisation to analyse their strength and weaknesses. There are different types of analyses are
present which the managers of the organisation need to conduct in the organisation so that
different types of aspects can be improved and all the functions of the organisation can be run
without any hesitation. These analyses are competitive analyses, internal analyses, external
analyses and many more. All these analyses of the organisation help the company to evaluate the
internal and external aspect of the company in effective manner. There are different types of
benefits are enjoyed by the company due to these analyses such as it helps the organisation to
develop different types of strategies and policies in the organisation. The internal analyses of the
company help the company to evaluate their internal strength and weaknesses of the organisation
which helps to established effective control over the other aspect of the organisation. The
external analyses of the company help the management to evaluate the impact of external factors
on the business of the organisation. There are different types of external factors are present in the
market which are having serious impact on the business of the organisation and if the
management evaluates these factors in effective manner then it becomes easy for the
management to operate their business in effective manner. There are number of tools and models
are present in the market which can be used by the company to conduct different types of
analyses in the organisation such as McKinsey 7-S framework, Balanced Scorecard, SWOT
Analysis, PESTLE and many more. All these tools of the analyses are very helpful for the
company as it provides effective platform and the base for the organisation which helps them to
analyse different types of factors in the organisation. It is very important for the management of
the that they analyse all these factors in effective manner so that it becomes possible for them to
develop effective strategies. The organisation which is chosen here to demonstrate this report is
Omantel which is one of the biggest organisation of the world. This report provides discussion
related to the different types of analyses tools and makes effective justification.
1

Overview of company
Omantel Telecommunications Company is first company related to telecommunication that is
present in Oman. It provides internet services to its customers in the country. There is 51% share
of government of Oman in Omantel thereby making it a public company. It was founded in 1980.
Its headquarters are present in Muscat, Oman.
MAIN BODY
Analyses is one of valuable part of the organisation which enables the management to operate
their business in effective manner. Different types of analyses of the company helps the
management to evaluate the strength and weaknesses of the organisation. It is very helpful for
the organisation at the time of making strategy that the overall analyses of the company are
present so that the chances of strategy failure can be minimise (Aidawati and Widianingsih,
2022). The internal and external analyses of the company help the management to improve the
current position of the organisation which makes the company more competitive in the market. It
is important for the management to manage all the analyses so that the misconceptions can be
minimised in the organisation. McKinsey 7's model is one of the valuable model which enables
to analyses the design of the organisation.
McKinsey 7's model
The McKinsey 7S Model refers to a tool that analyses a company’s “organizational
design.” The goal of the model is to depict how effectiveness can be achieved in an organization
through the interactions of seven key elements – Structure, Strategy, Skill, System, Shared
Values, Style, and Staff (Alani, Khan and Manuel, 2018). All these factors of this model helps
the organisation to analyses the number of aspects in effective manner. The brief discussion
related to these factors are given below:
 Structure: A manner wherein enterprise departments are prepared and establishes duty
relationships is called as shape of an organisation. There are numerous types of
organisational shape along with purposeful organisational shape, hierarchical
organisational shape, flat organisational shape, etc. The management Omantel, flatter
organisational shape is observed via way of means of managers of organisation for
2

innovating and supervising their enterprise activities. In this organisational shape, there
are fewer stages which inspires conversation among the supervisors and their
subordinates of the reputable organisation.
 Strategy: A plan that's used to accumulate a business enterprise alongside retaining
aggressive blessings over competition with inside the marketplace is said as approach of
business (Albuhisi and Abdallah, 2018). Supervisors of Omantel follows suitable
techniques that allows them in making powerful advertising activities with the aid of
using learning and figuring out statistics for making nicely knowledgeable decisions.
 Shared values: The mission, imaginative and prescient and goals of an agency are the
imperative values and are called the shared values of an employer which directs the
agency in aligning all of the key factors of an employer. Well-described organizational
shape of Omantel facilitates in motivating the human assets of the agency in the direction
of attainment of goals in a green way. Systems: It is a process wherein each day sports of
a commercial enterprise are run for developing a workflow inside an agency. There is
awesome organizational machine for developing the glide of labor inside an agency and
certainly considered one among them is MIS. This machine allows directors of Omantel
in tracking commercial enterprise sports and strategic making plans for accomplishing
the objectives of company.
 Skills: It is referred because the skills and proficiency of human sources of organization
that allows in reaching goals of the corporation in a powerful way. Skills like verbal
exchange competencies, developmental competencies and lots of greater allows the
personnel of Omantel in gaining aggressive gain over its competition with inside the
market (Alkhadher, Beehr and Meng, 2020). The organization offers education and
improvement periods to their workforce for reinforcing their competencies in order that
they entire their undertaking in a powerful way.
 Style: It is described because the mindset of senior degree control for controlling and
directing their subordinates to make nicely knowledgeable enterprise decisions. Within
Omantel democratic management fashion is accompanied with the aid of using
supervisors of business enterprise to direct and educate their subordinates in order that all
of them could make powerful enterprise decisions.
3

 Staff: It includes the employees gift with inside the corporation for acting and preserving
the operations of each day enterprise activities. Within Omantel there are big number of
manpower's operating with inside the corporation for making enterprise decisions (AL-
Ruzzieh, Al Rifai and Ayaad, 2022). Staff of the reputable corporation additionally offers
education and improvement abilities to its much less professional human assets so they
also can paintings successfully and successfully with inside the corporation.
Porter's five forces theory
It refers to those analyses which is used by the organisation to evaluate the competition in
the organisation and achieve competitive advantage over their competitors in the market. As the
cut throat competition are present in the market due to the number of companies operating in the
same industry of the country. The management of Omantel is one of the most important and
valuable management which operates the biggest telecommunication company of the country
and maintains huge number of customers in the company (Asadpourian, Rahimian and
Gholamrezai, 2020). The management of the company also faced the competition in their market
so that it becomes required for them to use this model. It helps the organisation to analyse the
level of companies and enables them to achieve this organisation in effective manner. The brief
discussion related to this model in context of Omantel are given below:
New entrants: It is associated with the ones chance that is confronted through the corporation
because of the access of recent participant with inside the marketplace. The chance of recent
entrant will continually be critical and the problem of recognition for the control of the
organization. Omantel operates their enterprise with inside the marketplace of Oman in which
the authorities have supplied many relaxations to new organizations to sell the enterprise of their
markets (Bhattacharyya and Thakre, 2021). Many new ventures are evolved with inside the
marketplace because of the bendy regulations of the authorities.
Substitutes: The hazard of alternative will excellent hazard for the corporation with inside the
marketplace. It is associated with the ones hazard that is created because of presence of
substitutes with inside the marketplace. There are many organizations are operating in equal
industries which has furnished comparable product to the corporation with inside the
marketplace at decrease prices. The Omantel has to stand many troubles associated with
alternative with inside the marketplace including lack of purchaser base, decreases profitability
and marketplace share.
4

Bargaining of suppliers: The bargaining electricity of the providers are the problem of
awareness through the control and it affects the corporation in each superb and poor aspect. If the
range of providers are extra, then their bargaining electricity are low and the enterprise are in a
function of dominating (Danielsson, 2019). If the range of providers are low with inside the
corporation then their bargaining electricity are excessive and dominate the charges of the
uncooked fabric with inside the corporation. If the bargaining electricity of the providers are
excessive with inside the marketplace, then it has poor effect at the income margins of Omantel.
Customer bargain: The bargaining strength of the clients are continually excessive with inside
the marketplace because the clients with inside the marketplace continually call for new and
progressive product from the company. The control of the Omantel has evolved their commercial
enterprise in meals enterprise in which the range of meals vendors are excessive in order that the
bargaining strength of the clients are excessive.
Managing inter-firm rivalry: There are many competitors are gift with inside the marketplace
which includes Kaisanet, Tele Centro, aetka and Bite Lietuva which offers widespread
opposition to the Omantel. The advertising framework of those groups are very powerful which
in end result they maintain primary a part of the marketplace (Dincer and Yuksel, 2019).
Balanced scoreboard
The balanced scorecard is a great management system that has its aim and motive which
translates the strategic goals and objectives of the organisation into a set of performance goals
and objectives in the organization. These performance objectives are made in the form that can
be measured, as well as monitored along with making of the necessary changes if they are
required as these will help in ensuring that the strategic goals and objectives of the organization
or companies are achieved or met on the predetermined time period (Fernando and Bandara,
2020). The name comes or even helps in suggesting the idea that will help the companies in
looking at its various strategic measures along with all its traditional financial measures of
Omantel to have more and clear balanced performance view. The balanced scorecard concept has
evolved and even increased the simple usage of perspectives and even has been helping Omantel
in the management of various strategies in an effective and efficient way that will lead to more of
profits for the company.
5

VRIO analyses of Omantel
It is one of the important and valuable internal analyses of the organisation which helps
the management to identify the advantages and the resources which the management of the
organisation available at the age. There are four factors are present in this analyses such as
valuable, rare, imitable, organised (Gnankob, Ansong and Issau, 2022). The resources of the
company are examined on the basis of these factors and established valuable judgement.
Value – It pertains to particular wishes that what's the principle cause of the product and
offerings which the agency is imparting with inside the market. Omantel Company is rather
valued in imparting the funding opportunities. The agency unearths the price of their workforce.
They inspire them in an effort to gain the dreams and targets effectively.
Rarity – This element pertains to the provision of the assets which the employer wishes to apply
in a powerful manner. It is vital for the organization to optimize their manner of doing the
operations with inside the workplace. Omantel is one of the groups that are uncommon to own
the treasured assets of their infrastructure (Gupta 2020). The patents of the employer are specific
and uncommon in each manner.
Imitable – This issue is just like rarity it method that the opposite corporations that are gift with
inside the marketplace can't reproduction the goods and services. The economic assets of
Omantel is high priced no different corporations with inside the marketplace had controlled to
reap it. The group of workers of the organization is specific and experienced. This is one of the
maximum critical elements for the organization. This allows them to reap their objectives and
desires in a powerful manner.
Organisation – It is an inner evaluation it enables the organization to apprehend their enterprise
shape and numerous boom possibilities on which they are able to capitalist. Omantel has
systematic workflow they're offering identical possibilities to each character with inside the
workplace (Hajizadeh, 2019). On the opposite hand, the patents of the organization are nicely
organized which enables them to carry out as in step with their complete capability with inside
the market.
6

PESTLE analysis of Omantel
It is important for the business organisations to have complete information about the macro
economic factors that are of external environment and affect the performance of the business
organisation. One of the way to find out these factors is PESTLE Analysis, which is an important
tool that aids in knowing these factor’s influence (Harry Gnanarajan and Kengatharan, 2022).
The PESTLE Analysis and its related context with reference to context of Omantel as well as its
impact in positive and negative way is discussed below, how these external factors impact the
performance of Omantel. The PESTLE analysis consists of political, social, and legal along with
economic, as well as environmental and technological factors all are described below in context
to Omantel:
Political factor
Political factor is the first and foremost factor which is considered as a part of PESTLE Analysis.
It is necessary for understanding all the factors of politics that consists of policies, various trade
restrictions, tariffs that are present in Oman. Political factor also determines the political
environment that is there is Oman. It is observed that Omantel is a telecommunication company
and as it provides internet services in Oman. Being a company in country there is direct impact
of various political factors upon the different operations and functions of the company (Karimi,
Abbaspour and Abdollahi, 2019). There is stability present in Oman which results in flourishing
and great growth of the telecommunication industry and especially that of Omantel. There is
increase in the political stability which aids it in making and implementing various new as well
as business strategies that will be great and led to good results for it as well as will help it in
being competitive for its rivalries in the country. It is positive as there is stability which will led
to successful and smooth running of the operations and important functions of Omantel in
country. The negative impact that it has to see that it needs to follow various policies and
legislations that are made in different in its nation.
Economic factor
PESTLE analysis consists of economic factor as its second factor. The economical factor
consists of different interest rates, along with economic growth, exchange rates, interest rates,
inflation rates, consumers’ disposable income and most importantly unemployment rates that are
present in a country and many other economic aspects of the country (Lee, Costello and Lee,
2021). The company needs to work and operate in accordance with all its economic conditions
7

that are there in the nation. The management team of Omantel can take greater advantages
because of the economic stability that is present in the country of Oman. This is the factor that
explains and describes the fact that the people who all are living their lives in the country are all
capable of buying and purchasing the products as well as services that are being provided to the
them (Lopes, Oliveira and Silveira, 2020). This also makes Omantel in the easy operations as
well as in making effective and efficient strategies for the company. It is also observed that there
is a good GDP contribution by the company in the nation. It is also seen that there are great
results from the company as it enhances and increases the employment rate of the country that is
Oman. The negative impact that is seen is that because of rise in inflation, there is a little
reduction in the purchasing power of the target audience as they are interested in buying low
priced goods and services.
Social factor
The third factor that is present in PESTLE analysis is the social factor. It is important to see that
there is great serving of the target audience by the company and even the society in a country. It
is necessary for the business organisation and companies to take complete care of various social
factors along with giving the products and services in accordance with the needs of the
customers and target audience. Omantel is providing its services in Oman and there is complete
acceptance of its services in nation. There are various strategies that are made by Omantel that
are effective as they completely focus on the taste and preferences of consumers of Oman.
Omantel also launch its various products and services in the nation according to demographics,
along with complete advertising and promoting their products and services in their local
language. The most negative impact that it has to face is that there is constant change in the
needs, tastes and preferences of the customers (Moller and Rothmann, 2019). This results in
regular upgradation of the products and services that Omantel in the country.
Technological factor
The next factor that is included in PESTLE analysis is the technological factor. There is dynamic
nature of technology and it has also been observed that there is regular and continuous
upgradation in the technology which is very important also as it aids in the enhancing and
increasing of productivity in business organisation and companies. This is one of the most
important factor as Omantel is the one which affects the operations and functions on a large
scale. There is complete concentration of Omantel to make its customers with complete
8

awareness related to technological changes that are going on with the help of new and advanced
technology which will lead it to be very competitive for its rivalries in the market. It is also
evaluated that there is regular update that is going on with the technology which will enhance its
performance. The negative impact related to it is that regular updates that are in technology are
costly affair for Omantel.
Legal factors
The next factor of PESTLE analysis is legal one. A country has various laws and legislations that
need to be followed by companies and organisations as these are formulated by country’s
government. All the organisations follow these for working and operating smoothly (Namand,
2020). There is high competition prevailing in the telecommunication sector in Oman. Therefore,
the management of Omantel needs to see that they completely comply with these rules and
regulations for avoiding further problems. Omantel takes care of them that are related with
various employment laws, health and other related standards and all as they are beneficial for it.
It can be seen that if it does not follow these, it can be very problematic for its operations and can
lead to various challenges and issues that need to be faced by it.
Environmental factor
The environmental factor is the next one in PESTLE analysis and it is necessary that it is also
taken care of by the business organisations and companies. As the business entities and
companies get all their resources from environment, so it their duty and they are responsible to
see that they are not harming the environment. The corporate social responsibility needs to be
fulfilled by Omantel along with taking care of various environmental factors. Omantel works on
various sustainability goals as they serve the environment as this enhances and increases its
image in market. It also creates a good positive environment as it focuses on taking reasonable
steps for minimising the impact of environment along with maintaining its reputation and brand
image (Shah, Khuhro and Bakari, 2021). The company needs to use more of renewable resources
for reducing environmental wastes by being its utmost priority.
It is important to see that PESTLE Analysis knows the impact of its external environment and
macro-economic factors that are there for the company as they affect its performance. It is
9