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Analysis of Internal & External Environment

8 Pages 2086 Words 16140 Downloads

Introduction to TAKREER

Environmental analysis is a significant part for any organization that provides certainty about future business activities. SWOT analysis is an effective tool to assess the internal as well as external environment of company. Present report is about Abu Dhabi Oil Refining Company (TAKREER) that is a public joint company. The organization undertakes overall work related to refining operation such as supplying petroleum products and the refining of crude oil and condensate. TAKREER is the subsidiary of Abu Dhabi National Oil Company  which is considered as world's fourth largest oil company. In this regard, SWOT analysis of organization has been done to explore opportunities of the firm and to overcome its weaknesses in order to create competitive edge of  firm at the marketplace.

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SWOT analysis is an acronym of assessing internal as well as external environment that consists of several factors such as strength, weaknesses, opportunities and threats. It facilitates management to take an appropriate decision with regard to expansion of firm over the globe. Further, HR strategies are also based on the environmental analysis that leads to ensure effective management of human resources. Here, internal environment includes several important aspects such as life-cycle, size, ownership and culture as well as management. Along with that, strategic orientation is also an important part of organization by which company can be able to fulfill its long as well as short term objectives. Furthermore, ownership of firm is a joint as well as public that aid to support management to expand business over the globe and to ensure the development of different nations (Annual report of Takreer, 2014).

In the same direction, environmental scanning is the foremost way to assess performance of the firm and adopt different strategies accordingly. It contributes towards cope up with changing scenario and brings improvement in the whole organization. In this, company focuses on relationship between strategies, environment as well as organization. It is because in order to run business in smooth manner, company must give consideration to internal as well as external environment by adopting different strategies (Reportlinker Adds the Oil Refineries Market 2011-2021,  2015). This way, organization can be able to cope up with changing scenario and also aid to create competitive edge of the firm at the marketplace.


Abu Dhabi Oil Refining Company performs very well in the hydrocarbon product that facilitates  to create competitive edge in the marketplace. It is also helpful in creating distinctive image so as to increase overall rate of return and cater to the needs of different types of buyers in an effectual manner. The organization has leading position in domestic as well as international market. Owing to this, it becomes convenient for the corporation to give higher level of satisfaction among number of buyers. Furthermore, Abu Dhabi Oil Refining Company has high standard and outperforming refining operation. In addition to this, company also has proper health and safety environment that aid to increase attention of workforce towards their work and also make them able to put efforts in the direction of growth and success of the company. The management of Abu Dhabi Oil Refining Company frame several types of policies and regulations for well being of workers so that they can decrease employees turnover and increase overall productivity of the company (Registration Requirements, 2015). It proves to be effective to implement change at workplace and increase profitability of firm within the specified time span. However, company make use of HSEMS system for  supporting business continuity and protecting environment that aid to create brand image of firm at the marketplace. Also, management has power to retain workforce on the basis of pay scale and motivation that aid to increase overall productivity as well as profitability. In addition to this, company outperform in both national and international level that give certainty about future business activities. Furthermore, TAKREER takes into account social responsibilities and contribute towards environment to a great extent. It facilitate to deliver good quality of services to large number of buyers and also Abu Dhabi Oil Refining Company helpful to ensure the safety of society. In addition to this, technical department is responsible for maintenance of present equipment that are used for the production purpose. It facilitate to speed up in the flow of production and cater need of client in most useful manner.


The continuous variation in the prices of petroleum because of political and legal factors can have direct impact on the profitability. In the same direction, future uncertainty related to crude oil changes the production cycle. Due to long term liability, Abu Dhabi Oil Refining Company can have impact on future growth. Similarly, political volatility can have impact on the production cycle. It creates problem for management to manage business activities. On the other hand, increasing prices of hydrocarbon affects the overall production and supply of petroleum as well as other services to number of customers. These weaknesses can be developed by assessing internal as well as external environment of the firm. Likewise, management can also adopt different types of strategies. For example, crude oil can be procured in order to save give certainty about future business activities. Abu Dhabi Oil Refining Company may also face problem just because of increased prices of crude oil that hampers brand image of firm.


 Abu Dhabi Oil Refining Company has continuous growing demand of products and services that facilitates to expand business over the globe. Similarly, quality assurance practices of firm increase number of customers so that accordingly organization it increases its operation. Further, quality management principles are adopted by the firm that aid to create its competitive edge. Furthermore, Abu Dhabi Oil Refining Company formulates several policies in order to provide employment for national residents (United Arab Emirates, 2011). It helps  to create positive attitude among workforce and firm can also be able to get competent personnel. In addition to this, creative know-how is the important factor  that assists the firm to ensure about long run growth in the marketplace. Also, on shore and off shore gas gas field are developed in Abu Dhabi Oil Refining Company. Also, government of Saudi Arabian is about to  invest in the petroleum industry that increases chances of expansion for company. Likewise, Gulf Cooperation council allows private sectors firm to invest petrochemical sector that aid to raise source of finance. Other than this, better quality  management system of company facilitate to improve quality of services as well products days by day. The total quality management, gives higher level of satisfaction among workforce and also the customers who are rendered the services. It aid to fulfill quality standard and also cater need of different types of customer in an effectual manner. On the other hand, regular assessment of the firm can be done by this that aid to increase profitability in future span of time as well.


Attracting national residents for employment, management may not be able to get qualified personnel from other nation. It can create barrier in achieving long run success. On the other hand, sudden decrease in the prices of ethane in international market can cause huge loss for the firm.  Owing to these prices, crude oil also decreases that affects the long run survival of firm in the marketplace. It can have overall impact on the company. In addition to this, poor economic performance of gulf counties also has negative impact on the performance. Furthermore, changing economic policy can decrease price of products and services that are being provided by  Abu Dhabi Oil Refining Company.

Choices of HR strategy

External environment also affect the performance of organization because there are several factors consists under this. It includes political, legal, economical and environmental factors that contribute towards building strong position of organization at the marketplace. Under this,management need to assess impact of each factor in useful manner so they can be able to cope up with changing scenario. On the other hand, changing economic policies such as monetary and fiscal increase overall prices of products and services that are being offered by  Abu Dhabi Oil Refining Company (Thompson, 2014). As the organization is joint with public that reduces risk related to politics to a great extent. However it has long term implications that decreases overall profitability of corporation. On the other hand, technology is the foremost factor that affect performance of  Abu Dhabi Oil Refining Company to a great extent. Because of changes in the technology, company have to suffer from huge loss as it takes long time to provide guideline to workforce regarding use of new technology. Furthermore, it also affect production process for some span of time that can decrease overall rate of return of  Abu Dhabi Oil Refining Company.  Disruptive innovations in the petrochemical industry affect performance of company in term of reputation, brand equity and satisfaction among shareholders. In this regard, resource based approach can be used by management of Abu Dhabi Oil Refining Company wherein current resources are used in most effectual manner. Under this, number of people are associated in team  and are given responsibility to manage task related to making effective use of limited resources. It reduces cost of production and also develop capability of firm to increase profitability.     It is also helpful to manage scarcity of resources because people are given authority to ensure optimum utilization of limited resources.

Leading to human resources strategies

There are different human resources strategy which aid to strengthen internal position of company. It facilitate to beat the competition and increase attention of workforce towards their targets. In this regard, employees are provided training in order to enhance their skills and knowledge. It ensure internal development of employees and they can be able to seek their personal as well as professional  growth by working at TAKREER.  In addition to this, experts are hired from outside in order to bring important  in the present work scenario that contribute towards catering need of number of buyers. These all comes under commitment strategy by which employees are powered to move ahead. On the other hand, paternalistic strategy also play vital role that facilitate to set the standard for the job. Owing to this, immediate supervisors  of workers, working at  Abu Dhabi Oil Refining Company are provided information regarding strategic skills. These are helpful to focus on productivity as well as quality of services. It boosts morale of workforce because a sense of achievement can be generated among them by sharpening their strategic skills.

On the contrary, Collaborative strategy is also imposed to differentiate products and services from those of competitors. Owing to this, database related to clients are kept in an effectual manner so that management can be able to build trust with them. This strategy also have need of specific skills so that workforce can contribute towards delivering good quality of services to number of buyers. In this regard, technological advance are there at  Abu Dhabi Oil Refining Company. It consists of online inspection technology, corrosion control and improved fuel conversion efficiency. Along with that, KBR ROSE technology is also used by company so as to get rid of traditional method of refining. Further, vacuum distillation is replaced in order to improve quality of products and services that are provided by  Abu Dhabi Oil Refining Company. Other than this,  corrosion control is also implemented at workplace of company that aid to reduce to rate of accident and product products as per the specification of company standards. It can be critically evaluated that, lack of consistent strategy, management can not be able to support workforce and integrate them in order to achieve targets withing specified time span.


From the report, it can be concluded that, internal analysis is the effective way to assess the performance of company. It assist management to strengthen internal possible in order to overcome the weakness and grab the opportunities. It can also be said that, HR strategy also play significant role thereby company can be able to create competitive edge and achieve  long as well as short term objectives of firm in the marketplace.

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