In today’s fast-paced and competitive business environment, businesses struggle hard to achieve their objectives and sustain themselves along with managing to operate on a global level. They strive to analyze the needs of the whole world and produce standardized products. More efforts and innovation is put by them in their production and operations for the purpose of achieving the competitive advantage. In the list of such global companies comes Gasco, which has been striving to form a good global strategy to compete in the business world.
Gasco is a natural and associated gas processing company located in Emirates of Abu Dhabi, UAE. This company is a subsidiary of Abu Dhabi National Oil Company which owns its own shares and is also listed on stock exchange. Gasco was established in 1978 and undertakes to process and extract oil and natural gas (GASCO, n. d. ). The company, after being integrated with ADNOC in 2001, became one of the largest gas processing companies globally and the biggest business complex in the entire UAE. Gasco visualizes itself to be the most innovative and dignified supplier of the gas in UAE.
Moreover, it strives to, and is committed to producing excellence while caring for its people and community at the same time. Gasco performs it main activity of supplying gas to all consumers through pipelines and gas distribution centers. It performs different procedure including pressure testing, corrosion protection and other maintenance programs to ensure a reliable and safe supply of gas to its customers (GASCO, 2007). Importance of using Strategies in the Competitive World Strategy plays a vital role in the development and flourishing of a business in face of competition and rigidity which is posed by the global markets.
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A strategy refers to some action plan which is undertaken by the organizations to achieve a goal or an objective. Talking specifically, a business strategy is defined as the direction that an organization is heading towards or the scope which it caters to in the long-run, for the purpose of achieving business objectives and competitive advantage. In doing so, it undertakes to configure the resource allocation component within the challenging business environment in order to maximize the shareholder’s satisfaction and also to fulfill the market needs simultaneously.
Thus, the word strategy covers in itself very broad aspects of planning and proceeding. In today’s competitive environment, it is important for every organization to follow certain sets of strategies if it wants to be successful. Gasco is one of the similar businesses which is being operated on large scale and has a mission to be innovative and an excellent business in the related industry. For this purpose, Gasco needs to identify and apply relevant strategies to achieve its goals. Presently, the company is operating with a relatively sound strategy.
It includes increasing sales of the company, finding new plants and operative fields for the extraction of oil and gas. Furthermore, the company has developed Annual HSE (Health, Safety, and Environment) action plans and has translated and integrated it as a part of its business strategy (GASCO, 2010). Moreover, the company has also undertaken to maintain a corporate environment which ensures that the organization has the right people of the right skill and is available at the right time to accomplish all the major objectives of the business (GASCO, 2006).
Thus, the business strategy of the organization includes all the aspects of the company starting from increasing the sales and revenues and going up to maintaining the employee base. This well-formulated strategy ensures the success and competitiveness of Gasco in the oil and gas industry of UAE in future. For the purpose of achieving the strategic objectives, Gasco has also established the Competency Assurance Management System (CAMS). At present, I am working at the production department of Gasco. This department has been well-aligned with the other operational departments of the organization.
It undertakes to perform the drilling of oil and gas from numerous rigs and wells around the globe. The production department of the organization aims to undertake many extraction and drilling projects in future from the new wells and plants. The Research department of the organization searches for new wells and plants and the Finance department keep a strict track of the revenues and expenditures of the organization. All these departments operate in cohesion with the production of Gasco to ensure the establishment of an uninterrupted operational and fully functional oil and gas organization. Ultimately, the business strategy of Gasco is implemented and executed.
SWOT Analysis of Gasco
Gasco is a well-established oil and gas company of Abu Dhabi, UAE and is striving hard to maintain its operational efficiency and competitiveness in the industry. The company works with the motto of believing in excellence and innovation in the long-run. SWOT analysis is one of the tools which every company applies in order to assess its internal strengths and weaknesses and then finds external opportunities and threats to maintain its operability. Similarly, the SWOT analysis for the Gasco Company is given hereunder:
The company has a strong, well-trained and motivated employee base. Through the policies of Emiratization, the company adopts the strategy of finding the right employee from the entire UAE to match the right skills at the right time when the organization requires. In this way, it provides appropriate jobs to the UAE nationals and increases its motivational workforce at the same time. Moreover, Gasco’s strength is its innovative technology, modern methods and processes of working, excellent adoptability and implementation of HSE policies.
Besides this, it has a large customer-base which includes manufacturing industries and other potential customers. Then, there is a great focus on teamwork and open communication in the organization. Gasco gives equal preference to family and community with professionalism.
The company needs to work on several areas for its improvement. Gasco has to enhance its leadership and human capability. It needs to impalement a proper set of participative leadership roles and has to boost on its employee performance. The company still possesses gaps in its management process.
For that purpose, it has to ensure a proper flow of two-way communication at the first step. In some areas, the performance of employees is low and in others the technology needs to be reworked on. The company also needs a further integration of Information system and advanced technology in its management processes and production methods.
Gasco has the full opportunities of going global in every way. This company, at present, is not so popular in the global oil and gas industry. Thus, Gasco can extend its customer-base by further promotion and investment on global level. The company can diversify or expand through mergers and acquisitions. It can give a leveraged life to its brand, reputation and technology by adopting growth and extension strategies. The company can have a vast shareholder’s support by being more active on the stock market.
Gasco can be threatened by a growing competitive market. Everyday, there are new competitors coming up in the oil and gas business which can be a severe threat to the company if it does not adapt well-designed business strategies. Then, one of the challenges for the company can include an increasing demand for the oil and gas products.
The company has to have advanced technology and production processes in order to fulfill the demand of target market rather than losing it. The Changing Role of Gasco in the Industry The organization is managing to be resilient in its operation, culture and working procedures. In 2001, Gasco had integrated with ADNOC and diversified its customer-base to a large extent. Since then, it has kept well-aligned business strategies to keep its employees motivated and its functions efficient. It conducts annual surveys, leadership assessment and cultural assessments to improve and enhance its long-term strategies and decision making.
It believes in training, exposure and involvement to achieve its organizational goals and objectives. Its emiratization efforts and succession planning keeps the company’s hard work intact with its alignment with external world. Thus, Gasco is working hard and quick to achieve a global growth and strategic alignment. However, the significance of culture might become a barrier for tacking the international trade in the company. Since, the world comprises of diverse cultures, there are least chances that an organization catering to the minimum cultural difference will succeed much.
Thus, the company will have to broaden its perspectives with regards to the culture issue. Future Outlook Gasco is managing to struggle hard to stay in the line of resilient organizations. It has undertaken to become an innovative and successful organization in future. It will work on new projects which it already has in the pipeline. The exploration and drilling for new rigs will also take place in the near future. Gasco visualizes itself to be catering to the demands of the consumers globally and become one the largest companies in the oil and gas industry in future.
- GASCO, (2007). Company Profile. Retrieved August 08, 2010, from <http://www. gasco. ae/gasco2007/about/main. html>
- GASCO, (2007). A quick glance. Retrieved August 08, 2010, from < http://www. gasco. com. eg/AG. HTM>
- GASCO, (2010), Abu Dhabi Gas Industries Ltd (GASCO). Retrieved August 08, 2010, from < http://oilandgasdirectory. com/2010/company/18-21-GASCO. pdf>
- GASCO, (2006). Training and Development of UAE Nationals. Retrieved August 08, 2010, from < http://www. gasco. ae/gasco/english/Emiratization/index. aspx? g=em>
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