Last Updated 16 Jun 2020

Company and further promoted

Category Company
Essay type Research
Words 1697 (6 pages)
Views 565

The business owns prominent position as an oil refining business in UAE. It owns 12th position in the world oil refining industry. The vision remains with transforming into a leading corporation in terms of quality and contributing to the national economy. Brief Analysis of Takreer: About Takreer: According to Takreer (2010) the business started operating as a joint stock public corporation in the year 1999. It took over the refinery operations of ADNOC (Abu Dhabi National Oil Company) and further promoted the realm at the national level.

The primary objective remained with developing refinery industry in UAE and to promote and advance the business operations of Abu Dhabi Refinery (1976) and Ruwais Refinery (1982). It has played prominent role in developing UAE economy while performing as a world-class corporation. It strictly abides to the domestic and international standards and complies with quality standards of safety, health and environmental standards. The business operates with highly efficient refining systems and considers its employees as most important resources.

The key business operations include: • Refining of condensate and crude oil • Supplying chief petroleum products • Production and distribution of granulated sulphur The business is responsible for intact strategic implementation of refining standards at the national level and analyzes, evaluate and control downstream players in the industry. Mission: The business aims at contributing to the national growth while remaining competitive and strictly complying with environmental standards. Vision:

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It endeavors to transform into a leading diversified refining corporation and introduce out of harm ways and solutions for performing refining operations and possessing loyal and highly committed workforce for the long-term prosperity. Key Values: Takreer challenges conventional wisdom and deem to integrity, excellence and continuous improvement. The corporation considers reliability, fairness and technological advancement as an important aspect of business operations and processes. Importance of strategies in Takreer: An organization needs to formulate corporate, business and functional strategies.

For a global refining company it is crucial and indispensable to opt for a systematic approach and stream-line its corporate goals, business standards and polices, key operations, practices and actions in order to remain competitive in this arena. It is necessary for Takreer that all its functional units are synchronized and highly integrated with corporate goals and promotes the concept of shared values. This assists in understanding major constraints while looking for alternative solutions and deploying diverse resources in an efficient manner. Strategy of Takreer:

Web Cache (2009) acknowledged that the business key strategy focuses on gaining expertise in the field of engineering, technological advancements and project management to further improves the oil and refinery industry. It operates diverse and systemic portfolios both domestically and internationally. The key emphasis is given towards accounting and financial management. It has formulated two business models while considering indigenous and global position. 1. The domestic business model focuses on capital intensive business operations and strengthening manufacturing facilities.

It opted for low working capital and vertical integration for improvement in engineering and manufacturing ties. 2. The global business model focuses on minimizing fixed assets. It mainly relies on outsourcing and sub-contracting. For the intact international operations the business emphasizes on marketing research and briefly understands international clients, customers and countries economics. The front-end engineering design is conducted by the business itself and believes in early commitment and mobilization in case of equipments and outsourcing portfolios.

The business understands emerging requirements of energy sector and fuel consumption and continuously performs to assure quality service across the society. Being one of the dominant firms in UAE, the corporation is highly sensitive towards organizational culture and social diversity. It consistently performs in compliance with high standards and opts for exploration, production, transportation and manufacturing of energy products both domestically and globally and considers environmental standards as an integral part of supply chain.

Both Abu Dhabi refinery and Ruwais refinery contribute to the production of more than 23 million tons per year of diverse products fulfilling local and export requirements. Strategy of Operations department: Amana Oil (2009) presented broader scope of key functional units of Takreer. The operations department comprises of state-of-art facilities where dynamic activities are being performed on daily basis. It includes pilot plant, labs, offices and workshops. The pilot training plant is blast proof.

Moreover the vibrant operations department contributes a lot in improving the overall performance of ADNOC. The strategic implications reveal that the operations department aims at expansion strategy and enlarging long-term workforce and contributing to the success of the corporation. It works to attain economies of scale so that it could compete globally while maintaining comparable quality factors. It conducts product inspection, implements HSE standards across the business and generates quality ideas. The business performs as an intermediary to attaining sustainability across key functional units.

Analyzing different functional units like HRM, Finance, Marketing, and R&D, PR reveals that the chief emphasis is given to cross-functional approach where team are formulated comprising of intellectuals from diverse units and perform on specific projects. All the functional units are highly synchronized and believe in collaborative efforts and the concept of shared values. Employees are empowered and contribute a lot towards attaining corporate goals of the organization. Strategy School being used in Takreer: The business has emerged and improved gradually all the way through a decade.

It makes use of learning and flexibility. It started with an already established setup and learnt a lot from Ruwais and Abu Dhabi refinery and aimed at improving existing business processes through finest resources. The business has remained adaptive to the changing environment and learns from experience. The top management believes in expansion strategy and looks for long-term investment opportunities and formulates alliances and treaties with major global players. SWOT Analysis: Strength: Neste Oil (2007) instigated several key facts as follows: • It is the largest crude oil refining corporation in UAE

• The business owns state-of-the-art production facilities and has the capacity to produce 500,000 barrels of crude oil and condensate in one day. • It has further expanded into downstream industries and owns the responsibility to formulate national policies. • The business is known for its front-end engineering design capabilities and owns one of the finest and world class hydrocracker plants. • The primary strength remains with highly committed and loyal employees which contribute towards the long-term prosperity of the business resulting into a win-win situation.

• It has established global presence in the field of services and consultancy which provides preeminent services like hydrogen management, energy efficiency, front-end engineering designing and assists in licensing requirements, technology selection and linear programming of complex petro chemicals (FWC, 2010). Weakness: • There exist poor relationships between subordinates and supervisors in the manufacturing plant of Takreer. • It has faced certain issues in meeting the deadlines of several important projects due to inappropriate planning and scheduling.

Opportunities: • The business is deciding to merge with Neste Oil and Austrian Oil for producing very high viscosity oil. This will enhance production know-how and technological capabilities of Takreer. • It has identified multiple dimension of consultancy, upstream and downstream industries and chemical formulation Threats: • Competition is increasing at the international level • Major firms are opting for technological advancement • Environmental standards imposed major constraint on the business • More and more firms are entering UAE in the oil refinery business

Impact of International Trade on Takreer: The industry is affected due to international trade. Prominent players like Amarco of Saudi Arabia and Exxon Mobil of United States, British Petroleum of UK and many more are contributing a lot and competition has become intensive. The global refinery industry faced worst situation during 2009. Moreover key players own immense experience in the field. Furthermore developing economies are also promoting trade liberalization policies and transforming into export oriented sector which will further increase competition internationally.

According to Salisbury (2009) Abu Dhabi will invest $100 billion in developing infrastructure for the sustainability of petrochemical industry till 2030. Takreer has also decided to invest $8 billion for expanding its Ruwais plant and hire key engineers and project managers. WTO (2010) acknowledged that refining business contributes a lot to pollution and has taken strict action. One of the recent issues of BP oil spill has aroused lots of questions. Takreer understands key constraints and opts for sustainable development and promotes corporate citizenship.

Future Direction: According to Takreer (2010) TQM (total quality management) principles are important future successful business operation. It further emphasizes on installing lean management, six sigma and knowledge management systems. Moreover employee career development contributes to business performance. The business believes that cost can only be minimized through state-of-art technology and proper management in order to run business operations effectively and efficiently. It aims at promoting corporate citizenship and improving overall refining industry of UAE.

Competitive Strategy: The Michael Porters five forces model reveals that barriers to entry is moderate since it requires massive financial investment and there exist colossal players in the global industry. Rivalry also seems high. Moreover there exist lots of substitutes for customers and there are many choices available for customers. Buyers own the power whereas supplier power is low. It must opt for a market driven strategy. It needs to briefly analyze competitors, customers and potential markets.

The business needs to create a point of differentiation and must focus on learning and flexibility. Conclusion: It can be concluded that the business opted for a holistic approach. The demeanor remains with continuous learning and technology advancement. The corporation has remained adaptive to the changing environment and performs for the development of the overall refining industry of UAE. The strategic implications reveal that the business has opted for diversification across its core capabilities while enhancing loyal and highly committed workforce.

References: FWC. (2010). Refinery Consultancy Services. Retrieved August 13, 2010, from http://www. fwc. com/publications/pdf/RefineryConsultancyServices. pdf MEED. (2009). How the petrochemicals industry is taking shape in Abu Dhabi. Retrieved August 13, 2010, from http://www. meed. com/supplements/2009/abu-dhabi-petrochemicals/how-the-petrochemicals-industry-is-taking-shape-in-abu-dhabi/3000444. article Neste Oil. (2007). Neste Oil, Takreer, and OMV sign Heads of Terms for base oil plant in Abu Dhabi.

Retrieved August 13, 2010, from http://www.nesteoil. com/default. asp? path=1;41;540;1259;1260;7439;9579 Takreer. (2010). Welcome to Takreer. Retrieved August 13, 2010, from http://www. takreer. com/ Web Cache. (2009). Abu Dhabi Oil Refining Company: Takreer. Retrieved August 13, 2010, from http://webcache. googleusercontent. com/search? q=cache:Nurvd_l0o14J:oilandgasdirectory. com/2010/company/32-35-TAKREER. pdf+strategies+being+used+by+Takreer+Oil+Refinery&cd=1&hl=en&ct=clnk&gl=pk WTO. (2010). Cross-Cutting Issues. Retrieved August 13, 2010, from http://www. wto. org

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Company and further promoted. (2018, Jul 09). Retrieved from https://phdessay.com/company-and-further-promoted/

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