Company’s Assessment
The analysis of the company using Seven Leadership Mindsets Theory (vMEME) helps to differentiate the existence of particular structures and systems that impact its work and to a certain degree precondition outcomes. The size and diversity of locations of the current business presuppose the existence of multiple leadership mindsets. First of all, the red system can be observed as the big boss concept while working with teams is utilized (Grisby 2016).
At the same time, the blue system is also present because of the peculiarities of the company and the need for future improvements to ensure the continuous rise (Grisby 2016). The green system dealing with environmental issues and communities can also be seen as the company tries to act regarding the concept of social responsibility (Grisby 2016). The orange system is found in attempts to acquire autonomy and engage in the constant change process (Grisby 2016).
Yellow systems are observed in managerial effort to establish better cooperation with workers by sending messages explaining what is expected and what competencies are demanded (Grisby 2016). At the same time, both beige and purple mindsets can be found in the organisation due to its attempts to establish a competitive environment, minimise the harm done to nature, and preserve some traditions peculiar to members of the team.
In general, the existing value systems have a significant impact on leadership styles, managers, their decisions, and employees. For instance, as it has already been stated, the big boss approach can be used by top managers while communicating with team members to achieve particular results and preserve the existing hierarchy. The existence of the given model presupposes the utilisation of the authoritarian leadership style that demands the direct observation of all orders and their accomplishment. At the same time, in the course of the company’s analysis, we come to the conclusion that there are some other systems such as green, blue, and yellow.
Their presence indicates that the existing leadership style can become flexible to meet new challenges arising in the course of the development. At the moment, the lack of discipline can deteriorate the outcomes. For this reason, the prevalence of the authoritarian leadership style should be noted as the only approach that can help to align the effective functioning of the company and ensure its ability to compete with the closest rivals.
The highly competitive environment peculiar is to the market in which Orpic functions preconditions the necessity to preserve a particular advantage if to compare with the closest rivals. The local rivalry is also high. For instance, the Duqm Refinery and Petrochemical Industries Company L.L.C also operates in Oman. It is a joint venture between Oman Oil Company and Kuwait Petroleum International (KPI) (Company profile n.d.).
The given cooperation provides some benefits because of the new opportunities for international partnership and the possibility to affect several markets (Company profile n.d.). At the same time, Orpic can be characterised by the more developed infrastructure and new innovative projects that might help the company to evolve and decrease the dependence on oil prices (Oman Refineries and Petrochemicals Company n.d.). Moreover, Orpic is a government-owned unit which while the majority of other companies working in the sphere are privately owned corporations.
As for the global competitors, the situation is more complex. At the moment, oil market holds leading position at the international level because of its strategic importance. For this reason, there are many other companies functioning in the sphere. Thus, the main global rivals are Saudi Arabian Oil Company, Royal Dutch Shell (Netherlands), ExxonMobil (US), and Sinopec (China) (Leading crude oil refining companies worldwide in 2014 n.d.).
Comparing them with Orpic more significant level of incomes can be noted. At the same time, the companies have a much longer history and experience in the given sphere. It also means the developed infrastructure and use of effective practices.
However, as a fast-growing company, Orpic has a potential for the further rise. First of all, being a government-owned company, it can count for support from the local authorities eliminate some barriers and continue the growth. It can be considered a significant advantage. Leadership approaches used in the organisation and its focus on innovations and organisation of new projects is another positive factor as it can reduce the dependence from oil prices and engage in competition. Finally, its comparatively young age can provide the potential for further growth.
Organisations Sector
Orpic, as a company selected for the investigation, functions in the oil and gas sector. Today it can be considered one of the most important industries that drive the evolution of the modern world as oil and gas are the main sources of energy used for other spheres. However, the given pattern has not always been topical. The blistering rise of the given sphere’s importance can be observed in the 20th century. Before, coal was considered one of the main strategic minerals.
However, with the fast evolution of science and industries, in the 1950s numerous shifts occurred in the sphere. The beginning of the extensive utilisation of oil deposits in the Middle Eastern countries and the growing role of the given resource contributed to the strategic importance of the given sector and emergence of new actors trying to generate benefits by working in the refining industry (Oil industry 2018). Moreover, the governments of the main oil-producing nations such as Venezuela, Saudi Arabia, Kuwait, Iraq, and Iran established Organisation of the Petroleum Exporting Courtiers (OPEC) to monitor the situation in the sphere and impact its development (Oil industry 2018).
The continuously rising energy demand preconditioned the further rise of the sector. Many other counties including Oman started to produce and refine crude oil and gas because of the promising character of the sphere and its strategic importance. In such a way, today, the sector remains one of the most fast growing industries in the world with the overwhelming impact on the international discourse and high level of revenues.
There are several factors that differentiate the oil and gas sector from other ones that can be considered the closest rivals. First of all, it remains one of the main industries of the modern world as it guarantees that other spheres will be provided with the needed energy (Oil industry 2018). At the same time, the strategic importance of oil refinery contributes to the emergence of political issues related to the given industry. The fact is that the policy of numerous states depends on the current prices on gas and oil as they are either dependant on it or produce these products. This aspect also impacts the functioning of companies belonging to the sector as they try to adapt to the new environment and generate benefits.
Another significant difference is the numerous attempts to improve the process of production and refinery to acquire more income and guarantee that companies will be able to grow. At the moment, plenty of new technologies and practices are being implemented with the primary aim to minimise the negative environmental impact of the further evolution of the gas and oil sector (The development process n.d.). This tendency differentiates the sphere from competitors both local and global as the given aspect introduces particular demands to the development of corporations in counties characterised by the massive production of these sources of energy.
In general, all elements mentioned above should be considered an important part of the functioning of organisation belonging for the given sphere. As for the Orpic, this factor can be evaluated as a positive point of differentiation. Firs to all, the constantly growing importance of the given sector provides new opportunities for future growth. The company has multiple options for development as its products remain popular in various states.
The existence of traditionally powerful agents and oil-producing nations can also be considered a negative factor as it can limit the company’s rise by promoting an additional pressure on its functioning and outlining the necessity of observe the existing trends. At the same time, the effective managerial strategies and focus on the utilisation of innovative ways to use crude oil can help to resolve the problem and eliminate the given barrier. In such a way, there are still opportunities for the further rise and the company’s becoming a potent player at the international level.
Finally, the attempts to minimise the negative impact on the environment should also be taken as the positive point. The fact is that Orpic is an innovative company that tries to implement new ways of oil production and ensure that the areas are not critically damaged and can be used for other purposes. The given tendency coincides with the company’s current goal and can be utilised to generate a competitive advantage and become more effective.
Changes
As it has already been stated, the sector of oil and gas production is undergoing critical changes at the moment. One of the main priorities is the minimisation of the environmental footprint of the development and extraction of oil and gas as traditionally, the given sphere has been considered as one of the most hazardous and unfriendly to the area (The development process n.d.). The last years, the growing number of environmental concerns resulted in the reconsideration of the approaches and focus on the reduction of harm done to the environment (The development process n.d.).
For this reason, new extraction and refinery practices are used. At the same time, there is a tendency towards the use of new technologies that can help to maximise outcomes and increase the overall efficiency of the company’s work.
Another transformation that is currently taking place in the sector is the use of oil and gas in other ways different from the traditional ones to generate additional income and decrease the dependence on crude oil. For instance, a significant number of companies operating in the sphere build new facilities to create plastic and other substances that might contain elements appearing during the refinery process (The development process n.d.).
Moreover, there are multiple attempts to reduce the complexity of gas production by implementing new technologies and eliminating unnecessary stages that can be omitted due to the use of innovative methods. It can help to significantly reduce the cost of production and attain better results without the significant deterioration of the environment and other concerns.
In general, the majority of modern companies working in the sphere try to follow these patterns to remain competitive and create the basis for their further growth. For instance, the world leading oil production and refinery company Royal Dutch Shell is successful in the implementation of technologies mentioned above. In accordance with the reports, it is one of the most environmentally friendly corporations working in the given sphere as it constantly utilises new methods to minimise the environmental harm and save the area from the critical changes (The development process n.d.). At the same time, it uses innovative solutions to improve its outcomes and guarantee the preservation of the competitive advantage.
Orpic, my organisation, also tries to follow this transformation and become a leader in the given sphere. Thus, one of its current projects presupposes the creation of the plastic plant by the end of 2019. It demonstrates the organisation’s attempt to remain at the forefront of the change (Oman Refineries and Petrochemicals Company n.d.). The fact is that the introduction of the given incentive becomes critical for the company’s further development. First, it will help to establish a new product line and minimise the dependence on oil prices. Second, it will contribute to the preservation of the innovative character as the new technologies will help Orpic to evolve and increase the scale of operations performed within a company.
As many other modern companies, Orpic is also aware of the community and environmental issues. As it has already been stated, the oil and gas industry can do significant harm to the environment. For this reason, the company’s top management realises the necessity to monitor the state of the area to ensure the absence of critical problems and concerns that will significantly deteriorate the quality of local people’s lives. The corresponding department, Health, Safety & Environment Department, is responsible for the introduction of practice that can help to minimise the risk and introduce incentives that can help the communities to benefit from the company’s development and rise.
Finally, being a government-owned company, Orpic is also responsible for leading change and implementing innovations to improve the work of the sphere and attain better results. For this reason, the company is focused on the use of multiple technologies and innovative decisions to ensure that the gas and oil sector in Oman will remain competitive if to compare with other countries in the region and at the international level. Moreover, the corporation creates new terminals and gas plants with the focus on the long-term perspective. It will also help to reduce the complexity of several processes and attain better outcomes. Orpic tries to remain in the forefront of innovations and succeeds in it.
Challenges
Having analysed the gas and oil sector, it is possible to formulate the list of three big issues the company faces at the moment. First of all, it is the high level of rivalry. As it has already been stated, the industry is characterised by the high level of income and outstanding strategic importance. At the same time, there are powerful corporations that are recognised at the international level and they try to hold their positions. For this reason, Orpic faces a significant challenge of struggling with these companies to guarantee the further rise and create the basis for improvement.
Another critical issue is the integration with the local communities through the minimisation of the harm done to the environment. The work of the given sector is associated with multiple negative changes in the area which might result in the growth of dissatisfaction among local people. This factor can become a serious barrier limiting the company in its further rise and introducing multiple problems regarding the alignment of effective collaboration with representatives of communities. For this reason, Orpic should solve this problem to become an environmentally conscious and integrated company which is critical regarding the modern business world.
Finally, there is the critical need to continue the evaluation and improvement of leadership styles that are utilised by the company’s top managers. The effective strategy is the key to achievement of a goal. For Orpic it means that the leadership models applied for the analysis should be used. At the moment, the corporation is characterised by the existence of various systems from red to blue and beige. One of the main issues is to achieve the balance between the used leadership styles, strategies and the current corporation’s needs. Only under these conditions, success can be reported.
Regarding the issues outlined above and the existing peculiarities of the oil and gas sector, the company has to perform several key actions to achieve high sustainability levels and become one of the industry’s leaders.
First of all, the continuous implementation of innovations should be aligned. This step will help to solve several moments at the same time. Revolutionary technologies can help to reduce the harm done to the environment which is essential for the attainment of sustainable success. At the same time, utilisation of technologies will help to increase the output and achieve higher productivity levels. This factor is one of the determinants of success for the given sector. Moreover, innovations are critical for the creation of new ways to refine oil and minimise the complexity of gas delivery. In such a way, it is critical to align the continuous improvement process.
Finally, the company should preserve its focus on effective leadership practices and HR management as the key factors that precondition the success of any business venture and contribute to the achievement. At the moment, Orpic has specific departments devoted to the promotion of employees functioning and improvement of the organisational culture. It is critical to enhance these activities to guarantee that high satisfaction and motivation levels among the members of the staff will be achieved as their performance depends on it.
Moreover, the constant monitoring of the company’s work is central for the in-time discovery of factors that can result in the significant deterioration of its functioning and precondition the emergence of poor outcomes (Dawlabani 2013). Critical evaluation and assessment of leadership styles, systems, and existing interactions is one of the pillars of modern management and should be given significant attention. Altogether, these procedures can be considered a fundamental step for the further rise of the company and the acquisition of the competitive environment.
Reference List
Company profile. n.d.. Web.
Dawlabani, S 2013, MEMEnomics: the next-generation economic system, Selected Books Incorporated, New York, NY.
Grisby, J 2016, The six different mindsets of leadership.
Leading crude oil refining companies worldwide in 2014, by capacity n.d.
Oil industry. 2018.