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Solution
Executive Summary
In this business assessment, the focus is to evaluate the global commercial strategy in Woodplc Organisation. In order for this organisation to leverage on competitive advantage and dominate their market, their organisation strategy is core. From the analysis, a set of findings have been obtained which note on presence of a direct relationship of the strategy and corporate, business and functional structures. Further, through a focus on a set of approaches including predictive and descriptive, the supply chain has been analysed. The set of tools which has been used included the PESTLE generic approach, Mendelow Stakeholder analysis, risk register, need for resources and stakeholders involvement in commercial strategy have been put into account. The outcome of this is managing cost overruns and supply chain appropriate management. A success in developing future global corporate strategy has been noted as holistic in lowering cost-overruns, improved business practices and dominating their market. This has been evidenced by evaluation of key performance indicators (KPIs) influencing the organisation contract management and supply chain volatility.
From the findings in this assessment, a set of recommendations for Woodplc organisation improving their practice have been put into account. They are;
- Woodplc need to invest in contemporary technologies including Artificial Intelligence, blockchain and machine learning to promote their practices
- Woodplc need to adopt flexible and open-based book costing for development of collaborative and partnership supplier relationship which can lead to a lot of organisation benefits
- Involving the Supply chain Management as they are core in prediction and satisfaction of end clients demand
- Consistent updating of supply chain for noting likelihood of managing their internal and external risks.
Table of Contents
1.1 Organisation Background. 3
2.0 Strategy Relationship with Corporate, Business, and Functional Structures. 4
2.1 Woodplc Organisation Organisation Structure. 4
2.3 Strengths and weaknesess of their Structure. 7
3.0 Analysis of Supply Chain Methods. 8
4.0 Management of Resources to Support Development and Implementation Strategy. 14
4.1 Analysis of Stakeholders Engaged in Corporate Strategy. 16
4.2 External Factors which impact organisation strategic Aims. 17
5.0 Costs and Finance Impact on Supply Chains. 18
6.0 Conclusion and Recommendations. 19
Figure 1:Corporate strategy pyramid. 5
Figure 2:Woodplc Organisation Organisation Structure. 5
Figure 3:Red and blue Ocean Strategy. 7
Figure 4:Supply chain analysis in Woodplc Organisation. 9
Figure 5:Woodplc Organisation Descriptive Analysis of Supply Chain. 10
Figure 6:Measurable Outcomes of Success. 11
Figure 7:CIPS Resilience Model for Assessment 12
Figure 8:Supply Chain Link with Corporate Objective. 14
Figure 9:Competitive Advantage and People Resources scope. 15
Figure 10:Mendelow Stakeholder Analysis. 16
Figure 11:Pricing Arrangements Summary. 18
Table 1:Woodplc Organisation SWOT Analysis. 8
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1.0 Introduction
As defined in CIPS (2021), the commercial strategy can be identified as a strategy of thinking on the overall strategy to ensure procurement and commercial activities providing results for entire stakeholders gain. Through an embrace of commercial strategy, an entity is best positioned in being well placed in managing risks, capacity of an entity and ability to respond to prevalent uncertainty. Further, as evidenced in Hughes et al. (2019), through a focus in the post-COVID-19 pandemic, global commercial strategies are involved in provision of appropriate insights. From the report, it is evident that commercial strategies ought to highlight the entire commercial agreement which align to the larger strategic goals and reflect the organisation managing commercial risks. This is with incentives in their overall commercial lifecycle. In line with the provided background information, the scope of this business report is to analyse the global commercial strategy in Woodplc Organisation. This is achieved through an evaluation of strategy and corporate, business and functional structure relations, analysis of supply chain, resources management to support how they develop and implement their strategy. The entire costs and financial implication on supply chain has similarly been put into account with relevant recommendations offered.
1.1 Organisation Background
WOODPLC having an upward of 35,000 professionals in 60 different countries is ranked as the globally leading consulting and engineering company which operate in the Energy and Materials market. As evidenced in WoodPLC (2022), the organisation is tasked with a role of unlocking solutions to the world’s most critical challenges which is being future ready, now. For the organisation consulting area, it is involved in a global, end-to-end, multi-sector specialist consultancy with a trust-based relationship with their customers. This is for offering the most innovative solutions and provision of excellence core for current management of most complex issues and maximising value in the entire asset life cycle. For the projects, they are involved in delivering digitally enabled capital investments with low carbon solutions. Particularly in their operations in UAE, they are able to offer Upstream/Midstream,/Downstream Oil and Gas support services. This is with their operations inclusive of delivery of an integrated, agile and intelligent solutions for managing their customers assets. This is in more than 20 countries and over 15,000 strong teams delivering solutions for optimising the world’s critical assets.
2.0 Strategy Relationship with Corporate, Business, and Functional Structures
Considering the practice in modern business practice, corporate strategy anchor entire decisions made. According to CIPS (2022), an inappropriate identified decision is a major challenge which affect successful employees in their organisation areas. In line with figure 1 findings, the strategy pyramid, it entail the prioritisation of corporate, business and functional strategy;
Figure 1:Corporate strategy pyramid
2.1 Woodplc Organisation Structure
Considering Woodplc Organisation operations, they follow an organisation structure identified as flat or horizontal. Considering the explanations provided in CIPS (2022a), this approach is used to manage people and different departments holistically and level of being flexible and autonomous in the people practices. The importance of this is to evidence the most appropriate strategy in culture and emphasising on the organisation practice. For Woodplc Organisation, the organisation structure is shown in figure 2;
Figure 2:Woodplc Organisation Structure
Considering the Woodplc Organisation operations, corporate objectives which they have initiated entails improving on their reputation for consistently delivering high-level quality engineering, operations and projects management for all their customers. Further, in the organisation, they ensure that they prioritise on profits and dominating the support and engineering systems both downstream and upstream in UAE. The importance of their flat structure is ensuring that their employees roles is clearly stipulated and harnessed. This is with a management of any inappropriate structure which increase scope of being coordinated and communicating. In Woodplc Organisation, they tend to capitalise on improving overall decision making and at the same time managing their costs of practice since the middle-levels management has been eliminated.
In Woodplc Organisation, the core objective of Woodplc Organisation is ensuring that their customers where they offer support provide their clients with high quality oil and gas products and property management and operations harnessed. This is their assurance of offering good products which are competitive. Considering the organisation mission, it entail driving change effectively, managing quality of downstream and upstream oil and gas engineering and materials market and ensuring they are successful in the entire UAE. This is also affirmed by their mission. It is in this regard it is affirmed in Shao (2019) inform on the need for pursuing the corporate strategy aligned with the organisation mission and vision. This is used in Woodplc Organisation as a guidance for navigation to their mission and practice.
2.2 Organisation Corporate Strategy Influence and Impact to Corporate, business and Functional Structures
Corporate
As explained by Al-bawaia et al. (2022), corporate organisation structure is evident in different departments or business units. Taking into account of this, for Woodplc Organisation, the organisation corporate structure include the directorship, commercial-based teams and supply chain networks and logistics. Hence, in the organisation, their strategy ought to be aligned with their structure and supply chain. For Woodplc Organisation corporate strategy, which is offering sustainable future which is a core issue which impact today generation. This is unlocking solutions to world’s critical challenge in energy and energy markets.
Business
Considering Woodplc Organisation business, their structure influencing the scope of organisation competing and gaining competitive advantage as opposed to their rivals. In line with the CIPS notes provided, to evaluate the level of influence of corporate objectives, an organisations such as Woodplc Organisation need to ensure that their external environment and structure is well aligned. Further, according to CIPS (2021a), corporate strat3egy has an impact on the Woodplc Organisation business structure which could be influenced by the Blue Ocean approach as illustrated in figure 3;
Figure 3:Red and blue Ocean Strategy
In line with figure 3 summary, for Woodplc Organisation, it follows a blue ocean approach which guides their corporate strategy towards establishment of uncontested marketplace distinct from their market. This is at the same time creating and leveraging on new needs and break-up of the value-cost trade-offs. The merit of this is the entity failing in exploiting prevailing demands and competing in their business environment.
Functional
For Woodplc Organisation, functional structure is inclusive of marketing, People professional, HR teams, downstream and offshore, and learning and development. Hence, the Woodplc Organisation corporate strategy influence the different departments improving their practices successfully in the department. As evidenced in Laury et al. (2020), in the plan, corporate objectives impact the products provision to the appropriate audience while working on best marketing strategy for ensuring the organisation consulting, projects and operations meet international requirements. The made decisions entail working on corporate strategy for holistic practices and not unique.
2.3 Strengths and weaknesses of their Structure
For the purpose of evaluating Woodplc Organisation structure strengths and weaknesses, the SWOT analysis can be used (CIPS, 2021b). The importance of this model is to note on the strengths, weaknesses, opportunities and threats. In the organisation structure, strengths and weaknesses influence the internal organisation. This is with the opportunities and threats impacting external organisation. Considering Woodplc Organisation structure, the analysis is summarised in table 1;
Table 1:Woodplc Organisation SWOT Analysis
In line with the table 1 summary, through an application of flat organisation structure, immense opportunities are evident for holistic decision making. This is noted in Funminiyi (2018) as a flat organisation structure failing in involving a middle-level management teams. This phenomenon is evident in Woodplc Organisation where the organisation is noted to be saving a lot of resources which could have been used in paying staff. For example, considering position of the author operating in PS&M department, communication sharing in the entire hierarchy is on time and holistic without distortion. Accordingly, the scope of Woodplc Organisation collaboration is increased evidenced in their motivation and satisfaction level. In a sustainable practice, Longhurst et al. (2022) identify that the process harness the entire morale and how the organisations productivity is attained with turnover reduced. On the other hand, for Woodplc Organisation, since it is growing and competing with larger organisations such as ADNOC, their structure is no longer tenable/holistic. The rationale of this is what Taylor (2019) identified as best applicable in smaller entities. Further, an increased turnover for the senior management and directors in Woodplc Organisation has increased which is projected to substantially increase in the entire organisation.
For ensuring flat organisation structure in Woodplc Organisation is harnessed, the CIPS notes have recommended on pursuing a simplified approach evolving into complexed structures (CIPS, 2021). Through a facilitation of naturally evolvement of organisation structure, this is an indicator of alignment of corporate objectives and supply chain.
3.0 Analysis of Supply Chain Methods
The supply chain visibility identify the ability of components, products being transported to a buyer being tracked from their source (producer/manufacturer). In CIPS (2021c), this is important as it improve and strengthen supply chain by assuring data appropriately offered to all stakeholders. For instance, Woodplc Organisation albeit their supply chain significantly affected by COVID-19 pandemic, high-level visibility is evident. The importance of this is the distinct organisation worldviews of supply chain extend from an individual service delivery and making sure they are engaging relevant service partnerships.
To analyse their supply chain, Woodplc Organisation follow the process shown in figure 4;
Figure 4:Supply chain analysis in Woodplc Organisation
3.1 Descriptive Analysis
As evidenced in the findings in Ghadge et al. (2020), this strategy followed to analyse the supply chain is used to note the existing situation. For Woodplc Organisation, this include noting on inventory investment, clients service quality and average suppliers lead time. The importance of this is to harness tracing of their practices specifically in highlighting the frequent changes. In figure 5 summary, for the consulting services in energy and energy markets, by use of descriptive analysis, relevant corporate data could be analysed graphically;
Figure 5:Woodplc Organisation Descriptive Analysis of Supply Chain
In line with the figure 5 findings, performance metrics are relevant which can entail the business performance report, financial data (business performance, earnings per ratio and current ratio), clients social engagement (media practices, followers relations) and surveys. The advantages of use of this strategy in Woodplc Organisation entail noting on the ability to acquire relevant information on today business performance, history and identifying scope of business practice (Li et al., 2020). For identifying the various performance indicators, the approach adopted by their supply chain analysis is illustrated in figure 6;
Figure 6:Measurable Outcomes of Success
Predictive Analysis– Considering the UAE vision 2030 stipulations and also the set Sustainable Development Goals (SDGs) demand for consulting and engineering companies in Energy and Materials markets has been redefined. Also, considering Woodplc practices, they make sure their development is holistic and consistently tracked to forecast demand. Considering the previous disruption by COVID-19 pandemic, this analysis can be categorised into specific product specifications (IT, logistics, staff uniforms) location (Dubai, UAE and Oman) and clients (public and private organisation). As evidenced in the findings in Modgil et al. (2021), relevance of this is ability of production tracking, raw materials sourcing to meet the set demands. Performance metrics are also applied by the company and entail products demands, seasons and regimes change. This is at the same time merging their operation costs.
The result of the entire process in Woodplc Organisation supply chain is providing good results used to identify, assess and manage entire risks. This is what CIPS (2021d) note as CIPS Risk and Resilience Assessment Model which identify entire risks and assume relevant management phases as illustrated in figure 7;
Figure 7:CIPS Resilience Model for Assessment
Additionally, after noting the risks sources from the outcomes earlier sourced from the analysis, risk register is established. This is identified in CIPS (2021e) as inclusive of identification, evaluation and management of likely and actual risks impacting an entity and their entire supply chain. Considering Woodplc Organisation practice, decisions for risk management are categorised into tolerating, treating, transferring or terminating. This is summarised in table 2 where the category of spend risk for the modern technology for the organisation flexible working is shown;
For noting competition of supply chain players, competition cycle is relevant (CIPS, 2021f). This model is used for identifying competitiveness grouped into either hyper competitiveness, multi-level competition sectors. Supply chain competition is noted as unsustainable in market practice. For harnessing Woodplc Organisation capacity to leverage on competitive advantage, supply chain analysis is core for their corporate objectives achievement. This is through optimising their costs of operations and lead times inventory management (Alawneh & Zhang, 2018). For Woodplc Organisation case study, there is a need for their supply chain to move from an absolute or/independent design for corporate strategy by prioritising aspects in figure 8;
Figure 8:Supply Chain Link with Corporate Objective
4.0 Management of Resources to Support Development and Implementation Strategy
In Fischer et al. (2020), their corporate strategy……..
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