ADMA OPCO Entrepreneurial Opportunity - Assignment Example

ADMA_OPCO Entrepreneurial Opportunity (Name) (University) ADMA_OPCO entrepreneurial opportunity arises through business deals to improve the company performance. One of the best recognized deals was the ADMA_OPCO signing business agreement with HII Inks Company whereby HII, the South Korea’s Hyundai Heavy Industry company, offered $1.94billion contract. As such, the company is expected to boost its business globally due to the global demand of oil & gas. The deal is expected to the daily oil production capacity from the offshore field of the current 22,000 barrels to 65,000 barrels per day (Rigzone, 2014). The business opportunity is realized through a centre of focus through shareholders. The shareholders contributes towards the identification of potential opportunities of ADMA_OPCO by putting efforts towards the company accountability of assets, level, strengthening the level of project delivery as per the plan, clarifying the expected roles to the standard simplicity mode while executions units are positioned. With such an approach involving tope company executives the management level of the company, ADMA_OPCO is able to tap various business opportunities (ADMA_OPCD, 2014). Problems Facing ADMA_OPCO Increasing Production Capacity Currently the company is experiencing short of gas and oil that affects the company economy status. Technically, the challenges arise due to aspects like sour gas which is laced with corrosives and possibilities of deadly hydrogen sulphide. To tackle the situation, it is a requirement to have higher quantities of advanced alloys, workers to embrace rigorous safety procedures and implementing innovating chemical engineering scheming. The current situation at ADMA_OPCO is not well equipped to tackle the challenge hence boost the oil & gas production rate (AFAQ Magazine of Total in the Middle East, 2013) Environmental Challenges The current situation of majority of oil & gas companies pose acute damages to the environment. As such, majority of community members and various governments do not win the trust of the petroleum companies operating closer to the settled environment. The operation within the company is not believed to be efficient, reliable & safety hence chances off accidents arising are higher. The carbon dioxide emissions are very high as a form of waste products from oil & gas hence affecting individuals within the environment for the need of clean air. Additionally, the company affects the sea water conditions affecting marine mammals and the clean water being used by communities Limited Manpower Demographic Changes Majority of workers at ADMA_OPCO are ageing and still well known as the best expatriates. Aging individuals encounter variety of challenges in a working environment especially aspects related to health issues like personal weaknesses that affects the level of man power productivity. Such individuals are expected not to consistent in work reporting as per the timetable schedules. Additionally, the aging employees fail to come up with new innovate ideas through the embracing of new technology that might improve on the company productivity. Management of Ageing Reservoir and operational techniques Ageing reservoir always experience fractured complications. Since majority of ADMA_OPCO reservoir is carbonate holding 70% of oil & 90% of gas complications arise during the management of the of the fluids and its flow from the porous & fractured reservoir. It is also challenging to identify the porosity, permeability & flow mechanism from the ageing reservoir. Additionally, it is a bit difficult to get a detailed understanding of the fluid saturation, the varying pore-size, rock texture and the continuous natural occurring fractures at the reservoir purposefully to manage the reservoir (Schlumberger Company, 2013) The operational model employed by ADMA-OPCO is becoming antique. The company experience the challenge of balancing the downstream & upstream sector hence greater operational is not achieved. This is because the downstream sector is not financially supporting the upstream sector. The balancing of the two sectors will greatly reduce volatility & risks. Corporate Communication Corporate communication is important towards oil & gas company either in efficiency or various processes. Intensive applicability of SWOT Analysis & IE Matrix are essential aspects towards corporate communication if it is intensively practiced which is not strongly adhered to in the above company. Failure of embracing the latest technology makes it challenging for the company to manage some of its sub-branches units especially for supervision and monitoring of the activities taking place (Think Oil, 2013). Value Proposition (6-Stage thinking framework) ADMA_OPCO focus on the production of quality oil & gas product. The purpose is to attract majority of the customers due to its product capability, reliability and the dynamic sources. As a competitive approach, the company focuses on its commitment only daily basis. This is achieved by the company willingness to invest in the new technologies used in petroleum oil & gas company, signing various deals that would see the company improvement in ongoing infrastructure projects and also recognizing as a market leader in its geographical location. As such, all the elements are advocated with a purpose of increasing value to the company customers. Additionally, embracing customer-centric corporate culture in ADMA_OPCO is important. The structure assigns the customers inside or outside sales representatives with a customer service representative for the purpose of rapid responses to every inquiry made. As such, the customer team is expected to be flexible, empowered and creativity. The company needs to focus on commitments towards the compelling dividends. As such, the company would advocate for highest focus on during prioritizing the funds to be used, and it enhances the capital discipline among the staff members of the company from the main branch to sub-branches. Additionally, compelling dividends enables the company to predict portions of shareholders return & pose wider differences in comparison to independent peers. New options for sustainable energy from the company should be considerable. The end products manufactured should embrace eco-power and the safety use capabilities. The waste products of oil and gas from the same company need to pose the possibilities of recycling after being used. Additionally, the end results need to be environmentally friendly alternatives to conventional oil products. Additionally, having comprehensive array of products of higher quality & quantity is a huge advantage towards tapping the customers demand & loyalty towards the company. Tapping the most talented employees into the company is of high advantage. As such ADMA_OPCO needs to embrace such culture in the working environment to drive the business & realize the organizational goal. Hardworking employees deliver exceptional performance to the organization that keeps attracting many customers. The realization of such employees, the company needs to come up with a reward system aside from salaries for the continual higher performance of employees. Flexibility is among the value propositions within customers. Being financially strong partner company, the is expected to be flexible in various investment like on the latest oil & gas technologies, equipments and various assts that might aim at growth of the company while improving the growth of the customer base. Providing consistent & reliable sources about the company products towards the public is also important. Majority of the customers prefer to engage with companies that produce products worthy the value it is deserved. Identifying top marketers with good reputation for ADMA_OPCO is important. Having top marketers for the company improves the company sales record while tapping newer customers. Various marketers promote various products from the company. A good example is a look on Parman Company. The company identified BP/Castro company as its marketer. The reputation of BP/Castro in United States of America is known to be of high quality products and services. As such, BP/Castro is hired by majority of United States Companies to perform mining & construction duties in oil & gas industries. The team up between BP/Castro and Parman company provides extraordinary performance to the quality conscious customers (Parman Company, 2014). ADMA_OPCO need to embrace such marketing technique. Mini-Case (stage 6 of the framework) Stakeholders Analysis Effective communication between the company and stakeholders leads to wider scope understanding on how to manage the company. Both the goals of stakeholders, the company and society are realized & achieved. The engaged stakeholders includes the customers, suppliers & contractors, employees, partners & shareholders, Public or community, the government organizations and the press or media. The company has a cultural aspect of bringing together all the stakeholders analysis into one professional space and provide each group with an opportunity to showcase the efforts across the industrial professionalism in oil & gas in the company (ADMA_OPCO Sustainability Report, 2013). Majority of the focused ideologies centre on the company subsurface operations, the surface operations and the visions related to the company. To achieve the expected results, the company needs to structure panels in all fields ranging from innovation technology unit in the energy sector, the expected efficient & effective development in human sector, tackling new border challenges, the oil & gas waste products exposed eradication and imperative delivery of mega-projects in a challenging environment. Stakeholders partnering between varied oil & gas companies is important. The company benefits from both the external and internal stakeholders. As such, the stakeholders are expected to share & give out varied opinions especially regarding the sustainability materiality, a factor that is currently challenging in almost all the oil & gas companies. From the findings, the company needs to put to much emphasis on the challenging situation by using materiality matrix against the level of importance for external stakeholders while continue to improve on its strengths. Sources of Finance The company having various inks network partnership contributes towards financial support. ADMA_OPCO partnering with Yashat led to a multi-billion of finance support towards ADMA_OPCO (Marasi News, 2015). The financial support intends to spearhead the digital transformation in the company and improving the number of ADMA_OPCO offshore rigs. The communication links to be designed tend to benefit the company & its sub-branches in day-to-day communication and operations. The Yashat company well known for its best business capability services tends to enhance communication solutions across ADMA_OPCO rigs fleet. ADMA_OPCO partnering with Sparrow group on a five year deal contributes towards financial assistance. The five deal agreement will see sparrow group providing the operational maintance support to majority of all the offshore equipment at ADMA-OPCO (World oil, 2015). As such, the company avoids the approach of hiring firms to manage the company equipments & engages in a system best known as good international relationship will well established companies through promotions. Regarding the ADMA_OPCO sources of finance, some have pros & cons. The company might get assistance from Chinese company though its expensive and the process focus on Chinese element. Engaging with public equity using IPO approach is another option though the current climate can speculate grim prospects. The private equity investors have an already money but the approach comes with a limited time horizon and it is a requirement for the investors to have a say in the company especially in business management departments (SOMWME News, 2015). As such, ADMA_OPCO company needs to be careful while selecting sources of finance for the company. Protection Environmental protection is the centre of ADMA_OPCO operation. As such, the company was awarded ISO 14001 purposefully for the company applying high level performance. As such, the company focuses on environment management, Air Quality management, oil spill management and promoting CSR awareness for the realization of the preservation of the natural environment. As a member of ADNOC the company is expected to keep the environment clean as part of its values. Team The ADMA-OPCO covers a wider scope for the functionality of the company. The structure includes the system team, cementing team, mechanical Engineering team, planning & strategy team, production team, employees relation team, market & supplier team, engineering team and construction team in oil & energy. Structuring of each team at a specific department leads to easy management. The employees accountability is easier hence an exceptional performance for the company. The disadvantage of specializing employees in specified department inhibits the possibility of imperative innovations for the company. As such, the company can embrace both specialization system & job rotation system. The approach equips the employees with a diversified knowledge regarding the company hence the productive level improves. The company inhibits the possibility of employee shortcoming challenges within the organization day to day operations. References List ADMA_OPCO. (2014). Corporate Information. Senior Management ADMA_OPCO Sustainability Report. (2013). Developing Our Natural Resources Responsibility AFAQ Magazine of Total in the Middle East. (2013). Challenges at the Frontiers of Oil Tchnology. Marasi News. (2015). Abu Dhabi Marine inks Network Deal With Yahsat. Accessed at: http://www.marasinews.com/finance/abu-dhabi-marine-inks-network-deal-yahsat Rigzone. (2014). HHI Inks more than $1 billion in a deal with ADMA_OPCO. Schlumberger Company. (2013). Oil & Gas Training and Competency Development. Developing Expertise to Efficiently meet Key Industry Challenges. SOMWME News. (2015). Executives Outline Sources of Finance for Depressed OSV market in Abu Dhabi International Oil Management. (2013). Challenges and Solution in Oil & Gas Operations in Up & Down Streams. World Oil. (2015). Sparrows Group Secures Five-Year Deal with ADMA_OPCO. Read More