Globalization is a massive and highly influential tendency in the world of nowadays. Under the influence of globalization, various companies try to become a part of the expanding global market. Global businesses are complex and have a lot of layers.
They are not easy to manage as they include a variety of branches located worldwide, they are multicultural, diverse and have multiple branches and departments many of which require individual approach for the optimization of work. In this paper, I would like to discuss the global strategy for Abu Dhabi National Oil Company also known as ADNOC.
Abu Dhabi National Oil Company was founded in 1971, its main purpose was to work in all areas of gas and oil industry (About ADNOC 2014). The company has been successfully broadening for several decades. ADNOC managed to establish a number of companies and subsidiaries and to create a competitive industry in such fields as gas and oil processing, resource exploration, product refining, transportation, and distribution.
Today, Abu Dhabi National Oil Company is at the top of the world’s oil industry. It ranks among ten of the biggest and most influential oil and gas companies worldwide. The oil industry is one of the sectors that are driven to expand into the global market due to its product. Abu Dhabi is estimated to have one of the largest oil reserves on the planet; it is estimated at over ninety-two billion barrels (Sustainability Strategy and Planning in Abu Dhabi 2013).
Yip’s market drivers represent the standardization of the market characteristics (Key Concept Overview 2014). ADNOC is a strong competitor in one of the world’s most profitable and demanded markets – oil and gas market. This creates a number of benefits for the company, as its product has been in high demand for decades. One of the biggest threats that could face the oil industry is the discovery of an alternative source of fuel which would be cheaper and more eco-friendly.
Cost drivers are very important in the oil business. Global prices for oil are directly connected to the well being of the whole country hosting the business. These drivers are connected with the government drivers as the reduction of trade barriers and wiser trading policies will reflect in the state revenues.
As for competitive drivers employed by the company, ADNOC is aware of the importance of well-educated staff and high-qualified human resources, ADNOC also is prepared to deal with the skills shortage in the field. In order to experience no scarcity of specialists, ADNOC has “established a number of institutions that train and develop a qualified UAE cadre for the energy sector” (About ADNOC 2015).
Taking into consideration the latest trends in the global markets, I would recommend ADNOC to include the following concerns into its global strategy: information and communication technologies and software, the development of the IT sector, the customer service excellence, and the environmental policies and approaches.
Environmental issues are ones of the most frequently discussed in the contemporary world; this is why to stay competitive ADNOC needs to monitor its waste and to optimize its use of resources. Rapid technological development creates a lot of confusion for the companies that operate globally and require fast and efficient means of communication and information transfer.
Besides, even though ADNOC is a centralized company, most of the global organizations currently experience workforce fragmentation, this is why ADNOC should improve its multicultural management strategies to address the upcoming challenges. Labor market fragmentation and the IT skill shortage and heavy competition are the risks for every global organization. Rewards are the bigger markets, opportunities for expansion, and new resources.
About ADNOC 2014, ADNOC, viewed 7 Feb. 2015 <http://www.adnoc.ae/content.aspx?mid=22&tree=>.
About ADNOC 2015, ADCO, viewed 7 Feb. 2015 <http://www.adco.ae/En/ADNOCGroup/Pages/AboutADNOC.aspx>.
Key Concept Overview 2014, Laureate Education, Inc., Liverpool.
Sustainability Strategy and Planning in Abu Dhabi 2013. GlobalReporting, viewed 7 Feb. 2015 <https://www.globalreporting.org/SiteCollectionDocuments/Sustainability-Strategy-and-Planning-in-Abu-Dhabi.pdf>