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In today’s competitive global business, organizations work very hard so that they are able to survive, and are able to achieve success and growth using appropriate global strategies. It is important for the organizations to develop strategies that meet the needs of both the domestic and global markets and keep their customers, stakeholders and all those directly and indirectly involved satisfied. This paper is based on the global strategies that are being implemented by ADCO-Al and strategies the company is going to use to succeed globally and move ahead of its competitors.
Company Overview – ADCO Abu Dhabi Company for Onshore Oil Operations (ADCO) has been operating since 1971; the company works on-shore and in shallow coastal waters of the Emirate of Abu Dhabi.
The company strongly believes in honesty and integrity and they also believe in teamwork. Employees are very important to the company, i. e. they are the valuable assets of the company. ADCO is very much committed to performance excellence; the company demonstrates a very clear commitment to their work by sustaining high level of performance in everything they do.
Use of Appropriate Strategies It’s very crucial for ADCO to use the appropriate strategies in this competitive business world so that they are able to survive and succeed when they go global.
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The growing importance of an international success is based on the management and its strategies. Successful companies that expand their business overseas are able to with stand any domestic as well as foreign competition. When conducting business globally, the company is faced with great risks and challenges due to external forces like economic, legal, social political and even cultural.
One thing needs to be remembered is that the global environment is always changing at a rapid pace and the companies need to be flexible enough so that they are able to sustain the change and move accordingly.
As more and more organizations are expanding their businesses globally, the awareness regarding the national borders has been decreasing considerably and this also applies to foreign participation as well on the management level. It has become extremely common that managers need to learn 2 or 3 languages and to have an international experience if they want to move ahead in their careers (Kaplan & Norton, 66).
Strategy of ADCO The strategy that is being used by ADCO is that they are excellence in performance, i. e. the company is continuously achieving the highest level of performance within its industry. It has also developed technical capability along with leadership competency so that they are able to manage the complex business. ADCO is also using development and management strategies so that they are able to maximize their recovery and cut down their costs in a very effective and efficient manner.
ADCO is also adopting and executing proven technologies and strategies so that they are able to develop themselves and work more efficiently in their field. (Mathur & Kenyon, 100). Strategy of the IT Department The strategy of the IT department at ADCO is to improve and progress the existing technologies. Technical innovation is an important part of any company, if that company wants to move ahead of its competitors. The core competency of the organization needs to be understood by all the employees thoroughly along with the culture and the systematic approach.
With the help of technical innovation ADCO will be able to improve the quality of its product and service, will be able to create new markets, improve its performance and to improve the production processes. The ways in which the IT department and other operations strategically aligned with the organization’s strategy is by ensuring that the work that is being accomplished is based on integrity and honesty. They also make sure that there is continuous improvement within the department and other operations.
The employees work in teams because work teams play a major role in the company (O’Brien, 34). The Strategy School The strategy school that ADCO currently uses is the innovative and creative strategy. Innovation is a new service or a new product which is introduced by a company within the market. The driving force for any company is actually innovation. Innovation is one process where the entire organization participates, but one thing needs to be remembered is that it is quite difficult to sustain innovation.
It has been found that technology foresight promotes to build innovation oriented company. Foresight and innovation is a tool that helps to solve company’s issues like how to identify new emerging technologies? How to distribute the company’s resources in a most effective and efficient manner? The role of foresight it to provide a way for the company to improve its innovation system and it also helps the company to make the right investments (Kaplan & Norton, 34).
SWOT Analysis
Continuous improvement is the strength of ADCO.
Companies like ADCO with adaptive cultures will align their goals in such a way that they are able to perform better than their competitors. The shared value includes; compensation based on performance, reward programs for the employees, 360 degree communication which works effectively, highly effective leadership, high integrity workplace, loyal relationships, effective systems and processes, employee commitment and demonstrated support for innovation.
Information quality is considered to be one of the weaknesses of the company, i. e. they are trying to improve it.
To make the right decisions on the right time it is important that information is provided and to do that ADCO is working very hard to improve its information quality by implementing new technologies within the company to improve the quality of the information.
Technology foresight is one of the opportunities for the company. It helps by identifying the areas of strategic research for the company and it also helps by indentifying new and emerging technologies so that it will help the company in its activities and it will be able to gain the economic and social benefits for the company (O’Brien, 84).
Culture is considered to be a threat of the company. Since ADCO is expanding globally, the culture itself is becoming more and more diverse and this makes the company to lose its core values. The diversity of the culture creates problems for the employees, the employees of the company are not motivated enough to work. There is lack of communication between different departments which are spread all over the globe. Industry Changing The industry that ADCO operates is the oil and gas industry. This industry is changing by implementing new and improved technologies. For example, ADCO has decided to use Smart Fields.
These will help the company with its operations practices by indicating the threats that the company might face in the present to maintain or even increase reserves and the production levels of the company. This strategy is actually based on integrating with the employees that work for the company, different processes related to work and technologies. This will help to bring out an evolution in the relationships between field operators and engineers, plus it also going to help with tackling production operation problems and by also collaborating with improved time decisions.
The Significance and Complexity of Culture in International Trade The significance and complexity of culture in international trade has the ability to leave an impact on ADCO. Over the last 50 years or so international trade has played an important role in the global growth and prosperity as well. The trade barriers have fallen in the last 5 decades or so. There is a change in the structure of the production process and employment, it can help to capture the benefits of the trade and this can be done if there is flexibility in labor or there is flexibility in the product and capital markets.
Drivers like the; encouraging investment, raising the skill levels or supporting innovation or improving the competition can help with globalization and trade expansion. The Future The company is headed in the right direction, by becoming a global company. If it is able to succeed then it will become one of the leading companies in its industry. With the right values, objectives and the right strategies the company will be able to achieve its goal. The company will be able to enter even more markets and will be able to segment itself even more.
Competitive Strategy Competitive strategy can be defined as how a company competes with a similar company in the same industry. With the help of a distinctive way of competing ADCO will be able to gain an advantage over its competitors within the industry. To get a competitive edge ADCO will need to formulate very competitive strategies, which will help the company to face the competitive forces. There are 5 competitive strategies, they are as follows:
Information technology will help ADCO to develop new products and services.
The new products and service will create differentiation and it is going to decrease the differentiation advantages of the competitors • Lower Costs: With the introduction of technology within ADCO, the company will decrease its costs of production. With this the company will be able to focus on the demands of the clients.
Information technology will help ADCO will be able to develop new products and will be able to drastic changes to their business processes.
growth strategy will help the company to expand into global markets.
alliance strategy basically helps the company to make new links and an alliance with the customers, suppliers’ consultants and other companies. (Graham,50)
Page: Graham, T. Business Strategy: Business Strategy. Butterworth-Heinemann, 2005 Kaplan, R S. & Norton, D P. , The Strategy – Focused Organization.
Harvard Business Press, 2006 Mathur, S. S & Kenyon, A, Creating Value: Successful Business Strategies.
Butterworth-Heinemann, 2001 O’Brien, J A. Management Information Systems: Managing Information Technology in the Business Enterprise. Published by New York: McGraw-Hill, 2004
ADCO's Global Strategies: Navigating Challenges for Success. (2020, Jun 02). Retrieved from https://studymoose.com/global-strategy-adco-new-essay
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