-80%
Solution
Considering Oxy organisation financial goals is achieving 70% of entire residential and commercial energy sector in Oman while leveraging on competitive advantage. For achieving the process, Oxy supply chain management leverage o reduced costs, improved performance and clients satisfaction through an improvement of sourcing of raw materials. This is in support of what CIPS (2021h) identify as PS&M guiding the ability to monitor and influence entire costs in overall business and supply chain networks.
Also, for pricing costs existing for Oxy organisation and different suppliers, thy are as shown in figure 14;
Figure 14:Summary of the Pricing Arrangements
Considering Oxy focuses on energy fluctuations in demand and supply, variable costs is pursued basically. This is similarly guided by view that demand and supply of products and services being appreciated by various stakeholders. This influence suppliers and supply chain include Oxy lacking ability for predicting and satisfying clients demand by engaging different suppliers. This is further used by using gain-sharing strategy and an open book. The importance of this is that they provide a chance for PS&M professionals interested and understanding level of relations and interfaces. For example, Hinterhuber et al. (2021) argue that variable pricing strategy leading to competitive and adversarial relations established. These impact capacity of an entity in promoting their collaborative relations in supply chain network.
Additionally, for Oxy organisation, operating in the international market, foreign exchanges and rate volatility elicit a major impact. This lead to what is shown in figure 15;
Today, Oxy organisation works on a detailed contract-based review to appreciate and allow currency risks management. Further, from the time of COVID-19 pandemic emerging, they work on scenario planning in currency volatility. Besides, they have not developed graphs in flexibility and agility in supply chains. This represent an areas for improving risk management and to appreciate currencies fluctuation influencing supply chain networks. The risks include internally (culture, networks, controls and business) with external (suppliers, demands, environmental, competition) risks.
6.0 Conclusions and Recommendations
In conclusion, for this business report, it focus on evaluating global commercial strategy in Oxy Organisation. Being the most appropriate strategy to leverage on competitive advantage and dominate their market, organisations strategy is important. This report findings identify there prevail a direct correlation of the strategy and corporate, business and functional structures. Further, this report findings evidence that there are different approaches for supply chain analysis such as predictive, descriptive and integration of both. Through the use of various tools including PESTLE Generic strategies, Mendelow Stakeholder Analysis, STEEPLED and Mendelow and Risk Register have all been adopted in the process implementation. By focusing on KPIs, the cost management process, supply chains have been noted to successfully be harnessed.
From the conclusions obtained and gaps identified in this report, appropriate findings have been obtained and are;
- In the analysis, Oxy has not been successful in integration of technologies and innovativeness in implementing their corporate strategy. By collaborating with entire organisation departments, Oxy organisation can capitalise on technology including blockchain, cloud computing and artificial intelligence for boosting their practices
- The external analysis identified need for integrating variable pricing as part of supply chain which remains a hinderance. Oxy organisation could apply a flexible and open book costings for increasing collaboration and partnerships suppliers relationships
- This report predictive analysis has identified a gap in Oxy using PS&M stakeholders in optimum. They largely involve R&D teams which affect collaboration of the different stakeholders. In future, Oxy need to engage PS&M in ensuring they harness prediction and satisfaction of end customers’ needs by involving their suppliers
- Lastly, from risk register analysis, it is clear updating it is not consistent. Hence, there is a need for a consistent updating of supply chain with internal and external risks. The rationale of this is informed by evolving characteristic of the risks altering tolerating, treating, transferring and termination
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