SWOT Analysis Of Oman Oil Company Exploration And Production LLC (Essay Sample)

SWOT analysis of Oman oil company exploration and production LLC
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Author Affiliation
Oman Oil Company Exploration and Production LLC
Oman is one of the world’s leading oil producing country. It is therefore, without question that Oman boast of several major oil companies. Oman oil company exploration and production LLC is one of these companies. It was formed as Omani upstream oil and Gas Company. The company is a subsidiary of Oman Oil Company and hence powered by upstream investments which are similar to the Oman Oil company objectives of improved international and regional energy investments. The company’s ambitions are aimed at promoting both local and international investments in energy. It is, therefore, notable that the Oman oil exploration and production strives to search for investment opportunities in energy with solutions to help unlock value.
As an organization in Oman, the company makes the investment in energy industry taking advantage of the country’s long-time experience in the exploration of gas and oil. Nevertheless, Oman oil company exploration and production LLC works hard to achieve profitability, high operational performance, provide an avenue for career development, and pursue the goal of ensuring clean energy availability and accessibility for all. The company continues to thrive where many have failed. The energy industry comes with several challenges that lead to the collapse of several start-up companies.
Event that might signal a need for change in Oman Oil Company Exploration and Production LLC
The fall in oil and gas prices in the world market may trigger changes in this company in the near future (Dan, 2014). Oil prices continue to be low which makes most oil companies trench their staff. This has already been witnessed in several companies across Oman leading to an upsurge in unemployment and reduced public spending. Moreover, the crisis of low oil prices in the world market has put a lot of pressure on the oil companies to diversify their operations. As consumers enjoy the low oil prices, most producing countries and especially the companies continue to experience crisis due to low-profit margins. Most oil exploration and mining companies such as have been forced to dig new wells as most workers have been laid of resulting in mass unemployment.
According to Sevkli et al. (2012), most oil companies used to renew the contracts of their employees. This is no more to most oil companies and Oman Oil Company Exploration and Production LLC may be forced to follow suit. The effects of the dwindling oil prices are not just limited to the employees directly linked to this oil companies. But so far, that hasn't happened. During boom times, the Omani government spent freely on subsidizing gasoline, as well as in social spending to appease Arab Spring demonstrators.
Furthermore, the low oil prices have led to the slashing of public spending (Bull et al., 2016). This has meant the government has already withdrawn subsidy to the energy companies. Unlike in the times of high oil prices, low oil prices have lowered the revenue of Oman. This has led to low budget and cut down on government spending especially on the lavish spending and subsidies. The effect is that the energy companies in Oman do not enjoy the competitive advantage over other world energy companies as before. This has already taken the toll to most energy companies in the world and Oman Oil Company Exploration and Production LLC may be forced to make changes if the company has to remain profitable.
SWOT analysis of the Oman Oil Company Exploration and Production LLC
This company is among the largest in the energy industry in the world. The SWOT analysis of this company is as follows below:
Strengths
Financial stability
Strong management made up of highly trained and experienced workers in the energy industry.
Strong trademark
The company is an outstanding brand that is highly regarded in the energy industry. The company has spread to other parts of the world with several branches in other countries. It has built a strong image of integrity and accountability. The above strengths have helped ensure the expansion of this company.
Weaknesses
The company has been linked with unethical business
High prices
The company operates in a volatile environment
The company has been affected by the promotion of the use of renewable energy sources. The campaign against environmental pollution and degradation has also hurt the company to a large extent. The Middle East has for long been linked to international conflicts, terrorism, unethical business and violation of labor laws.
Opportunities
Rebranding
Respect labor laws
Extensive research and development
Formation of partnerships
Diversification
Sevkli et al. (2012) noted that promotion of good ethical culture is key to the development of this company. It was important to conduct the dialogue with all the stakeholders in the energy industry. In addition, the company has to invest in research, promotion, and development of the renewable energy. The company should also strive to explore oil fields in other regions other than the Middle East. The company should also invest in research on policies, materials, and techniques that will help minimize its reliance on crude oil that pollutes the environment and cause health problems to humans and other living organisms (Yuan, 2013).
Threats
Lobby groups especially conservationists
Entry of new players in the energy industry
Extended publicity and negative image
Consistent discrediting of the operations
The emergence of new players in the energy industry poses a major threat to this company as most quickly adjust to the requirements and demands of the market (Hollensen, 2015). Nevertheless, the new market entrants boast of new technology and produce products that meet the required international standards. Lobby groups and especially the conservationists have helped promote the use of renewable energy which has no effect on the environment. The message passed across by the interest groups damage the reputation of this company.
Plan to implement the change
Change is inevitable in the Oman Oil Company Exploration and Production LLC if it has to maintain its steady rise in the energy industry. The following plan will be important in the company as it seeks to implement change
Support for change by the management
It is important for the management of this company to support any desired changes. The employees feel comfortable and confident when the management support the proposed changes.
Case for change
There should be valid reasons for the changes in an organization (Bull et al., 2016). The reason for the change may even emanate from outside the organization. This can also be necessitated by the collected data from the survey about the company or the available capital.
Involvement of the employees
For the change to take root in an organization, it is important for the management to involve all the employees. The expected changes need to be communicated earlier so that all employees are informed of the changes.
Communicating the changes
The changes need to be communicated in a systematic and structured way. Communication of these changes helps avoid resistance from the employees.
Implementation
The changes should be done within the predetermined timelines in order to make the process smooth and easy to manage (Hollensen, 2015). Enough time is required to implement these changes.
Follow-up
It is important to evaluate the changes after the implementation. This is aimed at determining whether the changes are working and produce the desired results.
Eliminating the barriers
Implementation of changes usually faces numerous barriers. The management is tasked to ensure that there is no resistance in the implementation of the required changes.
Celebration
In the end, it is necessary to celebrate all the achievements of the successful implementation of changes in an organization.
Strategies to sustain change
For the changes to take root within an organization, it is imperative to put in place strategies to ensure its sustainability. This include:
Evaluation of the effect of change on the people
An accurate assessment of the impact of the change in an organization is integral in the measurement of its sustainability (Xingang et al., 2013). It gives a platform for the communication between the team members on the progress of the changes. This analysis helps enumerate the scale and type of changes affecting the employees in various departments. Change impact analysis outlines the impact of change on each group of workers. The analysis provides plans and direction of the overall transformational program aiding in communication between the managers and employees.
Develop a rational and emotional case for change
Managers build a right case for change although they least appeal to the emotions of the people (Yuan, 2013). The communication of managers should target all departOman Oil Company Exploration and Production LLC
Oman is one of the world’s leading oil producing country. It is therefore, without question that Oman boast of several major oil companies. Oman oil company exploration and production LLC is one of these companies. It was formed as Omani upstream oil and Gas Company. The company is a subsidiary of Oman Oil Company and hence powered by upstream investments which is similar to the Oman Oil company objectives of improved international and regional energy investments. The company’s ambitions are aimed at promoting both local and international investments in energy. It is therefore, notable that the Oman oil exploration and production strives to search for investment opportunities in ...