The Gulf Petrochemicals Industries Company (GPIC) was incorporated in December 1979. The company at present has 474 employees. The company is placed in Sitra, in the Kingdom of Bahrain. The company is owned by three countries as Kingdom of Bahrain, Kingdom of Saudi Arabia and State of Kuwait.
GPIC of the Gulf Petrochemicals Industries Company deals in natural gas exploration and production and along with making fertilizers. The key business products of the company include the followings.
The total production of fertilizers is 1.4 million tones in a year, while the oil and natural gas is mostly exported by the company and only 5% is sold in the domestic market, which earns nearly US $ 100 million annually.
The executive summary of the company consists of the board of directors consists of the advisor to the Prime minister of Industrial and Oil affairs of Bahrain Mr. HE Shaikh. The management of the company includes the followings.
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The purpose of the company is to maintain quality at work. Due to this reason the company has compliance with the following quality standards. The management of the company is accredited by
and ISO 27001.
The vision of the company is to make a its products and company brand becomes globally accepted as a quality brand. The mission of the company is to produce high quality oil, gas and fertilizers products by focusing on customer requirements. Thereby, making the products, more safe to use, cost effective and environment safe. Due to this reason the company has also made bird sanctuary, planted palm trees around the premises with a herbal garden. Not only that the products made are checked safe to transit and use later on that also should affect the environment.
Motive, findings and method used:
The company goals starts with identification and specification of the mission, vision, strategy and processes through the system is made. This way the company is able to make its performance management through change in behavior and action. Therefore by aligning all the business units, team and individuals with a definite strategy the company is able to reach the final outcome and that is the results as per required by the company goals and customer satisfaction.
Purpose of the GPIC includes collaboration and growth in its field of business that is petroleum and related industries. The company aims at maximizing its contribution to the national income of Bahrain by earning more foreign currency and bringing full employment to its own country citizens.
Mission of the company is to create value for money for its customers in the domestic and international market by improving its present operation and quality of integrated oil and gas business.
Vision of the company is to achieve excellence in its field and push back its competitors.
Values of the company include the innovation, integrity, teamwork, respect and personal accountability to its customers and the kingdom of Bahrain.
Thus to achieve the above mentioned purpose, mission, vision and values the company follows the following steps.
Evaluation of the strategy.
Assessment of the strategy.
Create strategic map.
Perform performance appraisal.
Taking performance measures.
Automation is achieved.
Thus from the tenth step the step 1 again begins to further formulate and evaluate new strategy.
This process can also be shown through following diagram.
Exploration and development of crude oil:
The oil exploration process is happening at face pace in the company. That is new areas of oil and gas reserves are monitored and it is calculated that if the reserves is good enough for exploration that is if the output will exceed the cost that might be input on it. Thus there is a continuous search of oil fields that can help the company to increase its output and sales.
The motive of this article is to make a SWOT analysis of the GPIC. This way we can find out the strengths of the company. That is the area of production where the company has achieved specialization making it cost effective and quick production. Furthermore the weakness of the company will be monitored as to at which points or factors of production that are not contributing in the development and progress plans of the company.
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The external environment consisting of the opportunities to the company from the international markets and possible threats are also figured. Thus the opportunities like establishing business in new countries; increasing product range in the current business operating countries etc is assessd. Along with that the foreign competition, foreign currency exchange, change of rate of oil, gas, fertilizers around the world due to shift in demand is all scanned.
The outcome is that the company need to follow some recommendations discussed below so as to improve its working conditions and overcome its drawbacks.
Making a SWOT analysis is another method of analyzing the present business environment. The initials of the SWOT analysis are actually the terms used to identify the present position of the business.
The strength of the company from inside in the form of cheaper production process , best sales team, low raw material purchase, low input costs etc.
The Weakness of the company from inside in the form of the same things that can proved strength earlier like higher production process costs, higher cost input etc Thus weakness becomes the cause of loss for the company.
The opportunities are available to the company from the outside. That is good brand image in the market, non availability of substitute products in the market, competitive and lower rates than other products of same kind available in the market.
Threats also come from outside the company. The same way which proved opportunity earlier may prove loss incurring for the company as bad brand image, available of substitute products in the market, highly priced products of the company, and competitive products of high quality available at lower costs.
SWOT analysis of GPIC:
SWOT analysis initials states the features of this analysis. That is the Strength and Weakness of the company in the internal environment of the company. While the opportunities and the threats from the outer environment. This can be explained as follows.
The strength of the company includes its compliance with the quality standards that are maintained by the management for the production process. This includes the followings.
Health and Safety measures followed in the work place.
Workers are provided with the fair remuneration and that too on time.
Extra remuneration is given for overtime.
The machinery used of latest technology and are diagnosed at equal intervals for its safe and proper working conditions.
The weakness of GPIC includes various internal issues. These includes the followings.
The company has a labor problem and issues that needs to be settled down as soon as possible.
The output of the company is not as per the full capacity of the machinery.
The extra perks are proving as financial burden on the company balance sheet.
The selection procedure and later promotions of the out performers is not fair enough to attract new talent to the company.
The opportunities are the possible chances of the company to get more business or profits due to changes in the external environment. Thus the opportunities to the company includes the followings.
Demand for oil, natural gas and fertilizer increasing around the globe.
New countries coming in contact with GPIC for business deals.
Other products of the companies are also gaining demand.
The company brand is making its image of quality brand around the world.
The threats of the company include the things which are not in control of the company and form the external environment of the company. These include the followings.
The company major exports are with USA and China. Thus any tension between the both will directly affect the 56% percent export of the GPIC. (Shown in figure below.)
The tumbling world currencies and demands due to depression are affecting the business of the company.
The debts of the company are rising in countries like Pakistan, Thailand and Indonesia.
The misunderstandings between United States and Arab countries are not helping the business of the company to expand with the United States and its allies.
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Thus, a number of features through the SWOT analysis are figured out in this article.
GPIC and SWOT analysis:
The SWOT analysis of GPIC includes all the strength, weaknesses, Opportunities and threats threat the company faces from internal and external environment both. It can be as follows.
Customer Relations of the company.
Well trained employees and staff members.
Employeeâ€™s loyalty towards GPIC.
Limited technology available with GPIC.
\Manual monitoring of gas tanks.
Differences between the employees.
Increase in Oil demand around the world.
Easy to export from the nearest terminals to every corner of the world.
Loyal customers due to deals for long period.
New companies coming in being from other parts of the world.
The prices of crude oil rising ever since.
Emerging latest technology on other part of the world.
The recommendations after the close analysis of the company profile and business includes the followings.
The demand for oil and gas is rising in the Asian countries. Thus the company can expand its operation in other Asian countries like Cambodia, Thailand, and Malaysia.
The fertilizers are available in high rates and used in high quantity in India, thus the company can introduce its products in these countries other than oil and gas.
The major export of the company is done to USA and China. Thus the company still has a lot many countries in Europe, Asia and South America which can offer good business to the company.
The company needs to improve its selection and promotion method as this is increasing discontentment among the employees.
The output capacity of the company can be increased by manifolds if the production is made up to full capacity.
Extra expenditures like perks are needed to be cut down.
The business relations of the company need to be expanded to other nations.
The government should maintain good ties with the global countries so that the company business can grow and prosper.
In the nutshell, we can say that the GPIC is very well working with the quality standards and by the proper functioning and selling of its products is helping the country earn US $ 100 millions on annual basis. Furthermore the company needs to expand its area of operation and correct down its internal problems that may prove futile in near future.