STEEPLED Analysis, Porter's Five Forces, and SWOT Analysis of ADNOC
-I wrote the paper once, and I failed I upload their note and named it ( marking notes), it help you see where is my mistakes. - My paper name is (final draft), I tried to re-write again. The ideas is in the paper, it just need fixing to make it more sense, and I need from you to help me present my paper in the best version. - In the document ( detailed instructor), there is a something called ( Command Words) if you can use in the assignment to get more marks it will be great. - I have some ideas and points so can write in a better way. -I uploaded the instructors and an example from student who passed the phase, so it can help more. - The paper limited words are 3200 max. - if you can make it shorter - I have some note if you can insert it in the paper in better, presentable way. - In paragraph ( STEEPLED Analysis), note: as a company we only deal with one tier it can cause a risk or threat because they can use child labor.It can affect reputation when they found it is unethical. And connect the recommendation with it. - Under the graph explain it Explain all tiers and their connection.Main contractor who deal with adnoc as adnoc we only engaging with the contractor it can be dangerous cause we aren’t dealing with the other tiers either we ask the contractor to provide the tiers name to make their searches or engage with all tiers. -We are as adnoc we only deal with the one contractor as the third party they might use child labor so it can affect the reputation we have to engage with all tiers to allow adnoc to make audit so they can know . Audit points to make sure all the parties involved are ethical. -In (STEEPLED Analysis) part social we can engage with university, My idea : Electrical vehicles everyday it develops, we can let students present their projects about electrical vehicles, and build a community and adopt the best idea, and award students with the best project this will increase the Social for ADNOC company. - In the ( Technological ): As for the technological side electrical vehicles is evolving every day, we need to catch up with this field, and use the best technology or otherwise we will be out of the market. - SEMI condatior is a threat because it wont available everyday as everything is online -Connect electric vehicles with ADNOC company in all the table, -in (Porters Five Forces ) Check the comments we must focus of 3 points. Also, ADNOC have a good branding name. -in (Potential Entrants): we can see it as threat or opportunity and why study we make to lock visibility and comparing with loses alignment with government vision forinstance: the government want less carbon so ADNOC can make it better from this way. - in (Substitutes): ADNOC can make heavy vehicles instead of regular electrical cars and it risky because its new no one tackled the heavy vehicles field because it’s all about light weight electrical vehicles. - in (Suppliers): Power of suppliers, the issue we don’t have a lot of suppliers regarding this field, so the risk is high if the supplier is limited, it will be only 2 or 3 major company so the power of suppliers is high. - Buyers: ADNOC is a powerful buyer, and the country is great for investment and expansion. - in ( Kraljic Matrix): High profit and low risk. it can affect ADNOC to produce electrical vehicles since everything is online it can delay in the phase I have to make the paragraph shorter and fix it, and I look for a references that say it will delay the production. - in (SWOT Analysis): Connect the ideas together - in (Conclusion ): Summarize everything we got - In (Recommendation): We need to engage all tiers for e.g: If ADNOC need plastic we can buy plastic from BUROOJ company, so it categorizes under company which is ADNOC, that We can use local company. We can say our recommendation either as bullet points or paragraph. Swot threats as ADNOC as recommendation what to do to switch to something positive. - For example: We can use tawzeen company since they make vehicles already and create a partnership with them and stay sustainability since there is no shipping from abroad. - get the case study in the paper if its deleted you will find in (first draft) document -fix table content and make sure all refences is used, and shorten the paper to 3200, we can insert the the paragraph under the table in to the table itself since the table not counted for instance in ( STEEPLED Analysis) i can insert the below paragraph directly in the table. See less
Table of Contents Executive Summary.. 3 1.0 Background.. 4 2.0 Introduction.. 7 3.0 ADNOC Supply Chain Map.. 8 4.0 Strategic Analysis of ADNOC.. 10 4.1 STEEPLED Analysis. 10 4.1.1 Political 11 4.1.2 Economic. 12 4.1.3 Social Engagements. 12 4.1.4 Environmental 12 4.1.5 Technological 13 4.1.6 Legal 13 4.1.7 Ethical 13 4.1.7 Demographics. 14 4.2 Porter Five Forces. 14 4.2.1 Potential Entrants. 15 4.2.2 Substitutes. 16 4.2.3 Suppliers. 16 4.2.4 Buyers. 16 4.3 Kraljic Matrix. 16 4.4 SWOT Analysis. 19 4.4.1 Strengths. 20 4.4.2 Weakness. 20 4.4.3 Opportunities. 21 4.4.4 Threats. 22 5.0 Conclusion.. 23 6.0 Recommendations. 24 References. 25 Table of figures Figure 1:Structure of ADNOC companies. 5 Figure 2: Supply Chain Network. 6 Figure 3:Supply chain Map. 8 Figure 4:Impact of COVID-19 on supply chain. 9 Figure 5:Porter’s Five Forces. 13 Figure 6:The Kraljic matrix tool 15 Figure 7: Multi-tier supply chain. 20
Executive Summary
This report is prepared to show a different aspect of supply chain management concerning ADNOC strategy of developing an electric vehicle as diversification of product strategy. To position itself as a responsible and innovative oil and gas company aiming to optimize its resources to benefit the UAE economy and serve customer needs.
The project will start with background information which will give a brief history about how the company was formed and the different products that ADNOC deals with within the UAE and worldwide. The introduction will introduce supply chain management concepts using theories and definitions by Martin Christopher and Richard lamming. An example of a supply chain has been included to show the impact pandemic such as COVID-19 has on diversified supply chain management.
Several research tools have been used to analyze the supply chain. Tools such as STEEPLE analysis, SWOT analysis, Porter’s five factors, and kraljic matrix have been used to investigate factors affecting the supply chain operations of ADNOC.
The report concludes by summarizing the finding from the supply chain analysis. The conclusion will include the tiers, which ADNOC operates within the supply chain. It will also give a summary of a reactive supply chain. The report has also outlined several recommendations to increase ADNOC supply chain value and action that can be performed to the electric vehicle strategy to become a valuable node within the supply chain.
1.0 Background
Abu Dhabi National Oil Company (ADNOC) was established in 1971 and operated in all oil and gas industry areas in Abu Dhabi, United Arab Emirates. ADNOC is considered one of the world's largest energy companies and an essential driver of the economic growth in the UAE.
ADNOC and its group of affiliated companies (14 companies) undertake diversified operations in the petroleum industry, including crude oil and natural gas exploration, production, refining, processing, distribution, global marketing, and the manufacture of petrochemicals.
ADNOC develops onshore and offshore gas fields, exports natural gas in liquefied natural gas, and produces supplies for local electricity and water utilities to other domestic industries. The decision of aligning all ADNOC subsidiaries under one organization called “ONE ADNOC” in 2017 was a smart move as it enhanced the company brand under one mission and vision, which describe as follows:
Mission:
Through partnership, innovation, and a relentless focus on high performance and efficiency, we maximize the value of energy resources.
Vision:
We harness energy resources in the service of our nation.
Figure SEQ Figure \* ARABIC 1:Structure of ADNOC companies
ADNOC HQ procurement’s department has three divisions as follows; 1- Services 2- Consultancy, and 3- Projects. The department is implementing a new policy where contract specialists should be rotated within the different divisions to gain experience in the various field handled.
The oil and gas industry is an ever-changing market environment with additional attention focused on decarbonization to mitigate climate change. A vital component of this transition is the growth of the transportation sector with Electric Vehicles (EVs). As such, ADNOC is in the process of developing its EV strategy and approach to the market, principally with a focus on the retail distribution activities as conducted through its retail arm, ADNOC Distribution. The EV strategy document will be a key blueprint that lays out a practical approach that the organization and its respective businesses should embody in the upcoming years to solidify its position as a responsible and innovative oil and gas company aiming to optimize its resources to benefit the UAE economy and serve customer needs through the transition
2.0 Introduction
Martin Christopher defines a supply chain as managing upstream and downstream relationships with suppliers and customers to deliver superior customers. (2016). Richard advances the supply chain management theory by introducing a supply network in the definition of supply chain management. He states that “A set of supply chains which together describe the flow of goods and services from their sources to their end-users. The term ‘network’ is intended to imply a more strategic concept in line with the idea that networks compete with networks, rather than simply firms with firms” (Lamming et al.,2000). Therefore, a supply chain is an integrated approach that begins with managing materials, logistics services, and the interaction between the supplier and the manufacturer down to the end customer (Fantazy et al., 2010).
Figure SEQ Figure \* ARABIC 2: Supply Chain Network
In the current era, the role of supply chain management is shifting focus by adopting practices whereby the buyer and the supplier are working together to enhance the performance of the whole network. Therefore, a successful supply chain management will improve the relationship between the supplier and the buyers, which will increase customer satisfaction and the performance of the firm. A competitive supply chain will also prove the responsiveness of a supply chain towards the customers' needs. Additionally, it will also enhance the reliability of the supply chain by re-engineering processes within the supply chain that may affect the performance of the entire network. On top of that, a competitive supply chain will also improve resilience, which will help a supply chain thrive despite fluctuations, uncertainties, and turbulence in the markets as well making the cost to be lower than that of the competition (Ibrahim and Hamid,2014)
3.0 ADNOC Supply Chain Map
ADNOC uses 4 tier supply chain to manufacture their electric vehicles.
Figure 3: supply chain map for ADNOC
Electrical vehicles parts will not be produced by ADNOC distribution. Instead, various manufacturers will have several aspects of the manufacturing process in Tier 1, including the most crucial suppliers. ADNOC distribution will ensure that several fail-safe tactics are used to provide a steady flow of components to avoid supply-related downtimes. In tier 2, these suppliers are vital to a supply chain but are usually limited in their products. Here the material obtained from other companies will be used to manufacture components such as a lithium-ion battery in electric cars. In tier 3, this will form the foundation of a supply chain. They will be responsible for the production of materials. The metal and plastic that will be used in the manufacture of electric vehicles by ADNOC distribution are produced by this supplier. In tier 4, these are companies that will supply the raw material. ADNOC distribution will use this tier to obtain raw materials such as cobalt required to manufacture batteries for electric cars. The majority of items can be procured locally, which will enhance sustainability and predictability.
4.0 Strategic Analysis of ADNOC
STEEPLE and porters five forces provide the most appropriate model that can be used for the external analysis of a, while SWOT analysis shall be used for the external analysis of ADNOC.
4.1 STEEPLED Analysis
According to CIPD, a STEEPLED analysis is a framework that analyses vital external forces that might affect the operation of a business. These external factors include social, technological, economic, environmental, political, legal, and ethical that affect the function of an organization externally (2021). The table below shows the external forces that the ADNOC distribution of electric vehicles supply chain will impact electric vehicles.
Factor
Description & Impact
Socio-Cultural
Replacing cars that use fossil fuel with electric vehicles to save the environment will significantly improve users’ environment. E.g., reduction of fog on roads. Additionally, we can engage with university students in developing electrical vehicles. To establish a good social cultural relationship, we can let students present their projects about electrical vehicles, and build a innovating team or competition. Thereafter we can adopt the best idea, and award students with the best project.
Technological
The technology may affect electric vehicles in terms of new cars with improved technology, such as self-driving cars hence pushing the experience of driving to a safer and informed with a clear source of data about road and car conditions. Further the world today is being pushed into the digital platform where nearly all operations are done online. This would create a gap if the company does not also invest resources in finding out the best ways to venture into the digital platform.
Economic
Fuel prices have a significant impact on the production of electric vehicles. Incorporating carbon credits will make the production of electric cars cheaper and eco-friendlier.
Environmental
Electric vehicles significantly reduce the emission of greenhouse gases since the only point of emission is during the production of the vehicle and power it will consume, which is also being turned to be more eco-friendly.
Political
The government of UAE has introduced policies that mandate sustainability through the manufacture of electric vehicles by subsidizing local manufactures and suppliers.
Legal
New rules from governments to ban vehicles that use petroleum products within the next two decades.
Ethical
Demographic
Supplies of crucial components such as cobalt for batteries are associated with child labor in the mining sites. The company only deals with one tier system, an aspect that can cause a significant risk or threat. Ideally, in its effort to minimize costs and maximize returns, it is highly likely that the company may be involved in child labor. This can greatly affect the company’s reputation especially if the authorities or society realizes its unethical practices.
Purchased mainly by mid-class individuals who have an income of more than $100000 annually
4.1.1 Political
The policies made by the government can have an impact on the sale of electric vehicles manufactured by ADNOC distribution to customers. The Government of UAE has created guidelines that align with the world push for proper energy use. ADNOC distribution has installed a station for charging electric vehicles. As a way of providing sustainable energy solutions (ADNOC, 2020).
4.1.2 Economic
Conditions such as the cost of fuel will impact electric vehicle production. High fuel prices will lead to people opting to use electric vehicles instead of vehicles that run on fossil fuels. This will increase the demand for tier 1 to produce more Electric cars to meet the growing demand (Crothers,2021).
4.1.3 Social Engagements
The change in the trends whereby people are moving away from fossil fuel and adopting electric vehicles might affect electric vehicle manufacture by ADNOC distribution. Many people are becoming aware of fossil fuels’ impact on the environment. Because of this reason, more people are opting to drive electric cars instead of vehicles that use fossil fuel. The number of electric vehicles on our roads is increasing each day. Further, the greatest aspects about a company are seen by how it engages with the local community, young minds and innovators. As a result, the company can create forums and channels where university students engage in discussions and interactive innovations of electric car models. Ideally, the students are allowed to create prototypes and discover new ideas on vehicle models; the company then pics the best projects, invests on them, and award the creators.
4.1.4 Environmental
The impact of fossil fuel on the environment will directly impact electric vehicle manufacture. This is because the oil and gas industry is shifting toward technologies that reduce carbon emissions in the background to mitigate climate change and global warming. Since users are becoming more aware of this, they fuel a considerable increase in demand, making companies adopting more electric vehicle manufacturing profitable (Choudhury,2021).
4.1.5 Technological
The impact of technology has the potential of affecting the electric technology changing in technology can affect electric vehicle production by ADNOC because products of competitors in the future will be focused on elan electric vicar with an advanced technology better than electric vehicles produced by ADNOC through ADNOC distribution. This will impact Tier 2 in the ADNOC distribution supply chain because it will have to develop technology components used by tier 1 to create an advanced product for customers.
4.1.6 Legal
A ban on fossil fuel use will cause a surge in the purchase of electric vehicles. Many countries such as Britain, India, Canada, Germany, and Norway introduce laws that make it illegal to buy vehicles that use petroleum products shortly. This new legislation will impact the supply chain because raw materials will increase. Manufacturers of components and the final manufacturers will also need to increase production.
4.1.7 Ethical
Ethical issues surro...