Anatonova, (2017) confirmed
that a business organization can compete with others when it gives much
interest to its strategic forces and develop them. He confirmed on the
continuous need on having updated and developed strategies and try to find out
what is the problem with these strategies and then to develop them. This can be
done by using different types of analysis and try to realize the most suitable
scenario to be applied with the organization. Among the important analysis is
the PESTLE analysis that can tackle Orpic strategies according to the Omani
market as follows:
1.
Political
Orpic is a company that is
based mainly in Oman and this makes it enjoy the safe political climate of the
country as Oman is a safe country where there are no wars or political
conflicts with other countries, Oman's political environment represents a great
climate for business and for making good profitable work that can succeed
without fears of loss that are associated with passive political climates. The
country's system and government strategies support business and provide great
projects with different positive opportunities to flourish and make good
profits. This makes it good for Orpic to have more business opportunities to
survive and develop and grow its business there.
2. Economic:
Oman is a country that enjoys
good economic conditions as there are different projects and businesses that
are successful in addition to having the advantages of supporting new projects
by intelligent clients who understand and appreciate the types of products and
the level of quality. National and individual incomes are very reasonable and
can be considered high which makes making business there is a good opportunity
for businessmen to make good projects and successful businesses.
3. Social:
Orpic is a company that has
strong position in the Omani society as a result of the preference to its oil
products by the Omani society that is always looking for the best in
everything. The Omani society is a great society that is a part of the Arabian Gulf
and it is characterized with the same features of Gulf societies that welcome
new products and prefer high quality products. The Omani society is
characterized with being different with lots of different people from a variety
of nationalities who can identify new projects and products and realize the
levels of quality locally and internationally. Related to oil products of
Orpic, the Omani society is interested in oil products
4.
Technological:
The Omani environment is
characterized with being preferring and seeking for technology and new
applications in everything which makes this a great challenge for any business
that needs to flourish as this means that there should be high technology in
the project that is being made in Oman and as for Orpic, it is important to
Orpic to update the different areas of technology it has and it is important
also to recognize the different parts of technology needed for producing high
quality products that can meet the needs of customers and match the high
developed technologies they have in their lives such as cars, homes and other
life parts. Technology in Oman is a basic and important for all people and in
all fields which makes Orpic in need to update all the machines and devices
used in manufacturing and dealing with oil products in order to produce high
quality products that cope with the updated development in Oman.
5. Legal:
Oman has a clear legal system
that is characterized with being fair and flexible for business owners who are
in need for different laws that facilitate their business and provide them with
the different facilities that make their business succeed. Oman legal system
supports different types of business and give different facilities to business
owners and factories that make the Omani economy flourish such as Orpic and its
activity.
6. Environmental:
The environment of Oman is a
desert environment than depends mainly on big cars in travelling and making
different important businesses which makes it good for Orpic to have its own
development of business there and develop and innovate in its products and
people in Oman like to find new oil products for their vehicles and machines
due to the nature and environment of Oman. This makes it a good chance for
Orpic to promote its business there. (Valeri, 2009)
(Haydu and Hodges, 2001)
discussed the techniques and methodologies that business organizations use and
apply in order to assess and improve the used strategies aiming at reaching a
better level of performance by developing the applied strategies and improving
them. The Porter topology is one of these techniques as it is well used for
finding a suitable strategy that the business organization can use in order to
develop its organizational performance and strategic management. According to Porter, (2011) the there are
three main business strategies that can be used by the business organization in
order to develop its strategic management and they can be applied separately or
joined together based on the basic needs of the organization and the work
environment as there should be deep analysis for them to discover which
strategy of the Porter's topology can be best used. There should be a strategy
that matches the specific features of the work environment and what is really
required to develop the business in addition to meet the needs of leadership
and organizational structure. The three main strategies are cost leadership,
differentiation and the focus strategy and the analysis of the organization can
tell what strategy is the best to be applied and used by the organization.
Orpic is a big company that needs development of its strategy in order to be
improved which makes it important to choose from the three generic strategies
of Porter and apply it on the company's strategic management in order to help
the leadership and management team of Orpic. Applying the new strategy can help
Orpic develop its innovations, produce new products and raise more profits and
revenues through applying the most needed changes for the company and clients
in addition to raise the company's productivity and encourage employees to do
better. The current paper is discussing the three strategies of Porter and then
explaining how Orpic can make full use of each strategy in order to develop its
organizational strategic management.
Flouris and Oswald, (2006)
discussed the Porter's strategy and how the three of the generic strategies can
be used all or only one of them according to the needs of the organization and
the level of competitiveness in the market as they can help the company specify
a target strategically and then to focus on it or make it different. The
authors referred to the differentiation strategy in particular in order to
detail using it as a generic strategy and to apply it to bring in difference to
the organization as this can be applied on products or services that are
produced by the company and this can be applied in Orpic to being in more sales
for current products that can be made in a different way to meet the needs of
the market and customers.
Moon, (2010) discussed how the
differentiation strategy can be used and applied by a business organization in
order to improve its position currently and lead it to more success via
applying the differentiation strategy on specific products or projects in the
company or on a part of the business. In Orpic, the company can apply the
differentiation strategy on some of its products used in Oman such as oils for
cars or other products as the differentiation system can depend on presenting
different products than those in the market and adding more differentiation
qualities to the products in order to make customers seek that differentiation
and have the desire to try it. The company should depend on studying the market
deeply in order to apply any differentiation as this study will shed the light
and focus on the needs of the customers and what can be presented from the
company. PESTLE analysis can be effective and useful in this case as this
analysis can focus on many parts of the Omani business and social environment
in order to guide the company towards the right differentiation. It also will
inform the company with all about laws and needs of the market to present a new
differentiation that is suitable to both the customers and the company and can
be successful. Tanwar, (2013) discussed the Porter topology and the three
generic strategies involved in it showing that each of them needs deep
understanding and the differentiation strategy in particular needs, he referred
to some gaps that can be found in implementing the strategy and that they have
to be found before applying it. He confirmed on the importance of analysis to
find out the gap before implementation of the strategy as he stated that there
should be specialties who can identify the business environment and understand
the internal and external needs for it. The leadership of the business
organization should be deeply realizing for this matter and should be able to
form a strategic management team that is able to apply the strategy effectively
based on the analysis and understanding.
Porter, Magretta and Kramer,
(2014) asserted that the differentiation strategy is very important and needed
to the organization that is in need for expanding the business and opening new
markets in new areas. Orpic can then try hard to apply the differentiation
strategy in order to expand the business and reach more areas in the market and
greater number of clients. The company can find specific attributes that can
help in presenting effective differentiations. This can include developing new
products and updating others in a different technique that marches with the
needs of the market and customers. The company can launch new product lines
that depend on presenting higher quality products that meet the needs of the market
and that are attractive to customers. There should also be better communication
strategies with customers via the internet and other communication channels as
this encourages them to be more attracted to the company's products. Other
services can be also presented to the organization such as services of delivery
and higher stronger distribution services.
Orpic should take care of the
way the differentiation strategy is applied as the analysis made before
implementing the strategy can guide the company towards the best method for
this implementation. Orpic has to study the differentiation operation at first
and then to build a basis for avoiding risks and following the best strategy to
be followed based on the analysis. Orpic can make a comprehensive differentiation
system on the whole company or to choose specific lines of business or products
to work on. This can include new different services such as online shipping for
different countries and online purchasing in Oman and other countries around
the world. The company is suggested to
add different facilitations in order to make ordering, purchasing,
delivering and payment easier than before such as facilitation of communication
with clients easily and recognizing their needs and desires. Options of online
payment should be provided by the company and asserted through different means.
Other differentiations can be made over organizational structure such as
applying a new leadership style that is more suitable for new transformations
occurring in the market and in the industry. This can help the company make
good profits and better revenues.
The differentiation and the
analysis associating it can help Orpic realize its needs and the market needs
in addition to having guidance towards reaching these needs and aspirations
through the development of its strategic management and improving the
strategies applied by the company to apply the differentiation. The company can
also open new plants and refineries for its products in new areas and find new
places to work in locally and internationally. This can add new experiences to
the business and raise profits and work opportunities in Oman and abroad
through innovations and creative ideas that can help the company develop its
production and profitability. This can be applied in the Gulf area and in other
different areas worldwide such as the Middle East and other areas
internationally. Globalizing the business can help Orpic develop its business
to be better in the local and international markets.
The differentiation that will
be chosen to be applied in the company has to be well studied and analyzed
before implementing the differentiation. The analysis can focus on what the
company and customers really need and wish from it and can tell how far the
differentiation can be successful. All leaders and employees have to be
involved and included within the differentiation in order to help communicate
the differentiation properly with them and make it succeed. Their opinions
should be considered and taken into consideration before implementing the
differentiation. Orpic should be careful before implementing any changes as the
company has to recruit talented employees who are able to apply the changes and
differentiations effectively and are able to use their talents to apply more
differentiations in the organization.
Recommendation Criteria
Any business organization
should seek developing its strategic management policies and techniques in
order to improve its position and business in the market and reach higher levels
of success. This can be done in Orpic by many ways such as following any or all
of Porter's generic strategies and it is recommended for Orpic to apply the
differentiation strategy in order to present new products and services that are
different and innovated in order to reach more customers and open new markets
in new areas locally and internationally. The company is recommended to make
different analysis such as the PESTLE analysis in order to measure the status
of the organization and identify an area for applying new differentiation. The
company is recommended to make open discussions with managers and employees in
order to make them aware of the differentiation that will be applied. The
company is also recommended to find suitable techniques to meet the needs of
the market and customers in addition to reaching better levels of success in
services as distribution, delivery, shipping and presenting the products to the
markets in Oman and outside. Orpic is asked to take care of the way the
differentiation is applied as analysis is very important to be made before the
implementation of the differentiation
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