Business
Research Paper
Abstract
ENOC Oil Company is owned by the United Arab Emiratis, in other words the company is public and was established in 1993. ENOC employs about 3500 individuals. ENOC is expanding over its borders in collaboration with the Saudi Arabian company Aldrees to set up service stations in Saudi Arabia. The ENOC oil company is also investing in foreign holdings in the Caspian Sea. The company is dynamic in the domestic and the global market. Due to losses in fuel sales the company needs to find ways to make up for the losses. This study proposes to analyze the relationship between ENOC and the supply chain vendors in order to identify inefficiencies. Telephone interviews will be carried out with individuals at ENOC and the supply chain vendors to collect data. Recommendations for adjusting management practices will be made as a result of the study.
ENOC Oil Company Quality
Background of the Industry
The Emirates National Oil Company (ENOC) was established in 1993 as a public company (owned by the Dubai government) (BMI, 2013). Investment in ENOC is an important component of the nation’s focus on sustainable development and diversification (BMI, 2013). The company lost profits due to challenges in the petroleum market; the sales of non-petroleum products did raise enough money to overcome the losses (BMI, 2013). The ENOC vision is “To be a leading regionally integrated oil and gas group (that is) highly profitable and socially responsible towards employees, community, and environment” (enoc.com, n.d.). ENOC is the source of many professional capabilities and the company is supported by the government.
Company details
ENOC works with many upstream and downstream enterprises in UAE and in Saudi Arabia. The Dubai Natural Gas Company (DUGAS) is an upstream company that is charged with the exporting of Liquid Petroleum Gas (LPG) (BMI, 2013). Domestic distribution of natural gas is carried out by Emirates Gas; the LPG is bottled in Fujairah, Ajman, and Jebel Ali (BMI, 2013). An example of external investments of ENOC is a majority ownership in Dragon Oil. Dragon Oil focuses on the Caspian Sea near Turkmenistan where offshore petroleum products are extracted (BMI, 2013). ENOC Processing Company LLC (EPCL) is the refinery located in Jebel Ali (BMI, 2013). Approximately, 120,000 oil barrels are refined per day by ENOC (BMI, 2013). ENOC employs approximately 3500 individuals (BMI, 2013).
The marketing department consists of four divisions: aviation, gas, lubes and industrial products. The products and locations were the products are available in table 1.
ENOC is highly integrated into the commerce of UAE. Good communication with supply chain vendors is necessary to meet deliveries on time. The variety of products distributed throughout the Arab states, Asia and Africa as well as domestically demonstrates that good communication with supply chain vendors is essential. Supply chain vendors range from manufactured parts for the refinery to transport to vendors for product packages.
SWOT Analysis
Link 3 CLOs to the Study
1. BUS 4353 and CLO-3 ISO 29001: Oil and Gas
ISO/TS 29001 was developed with the collaboration between the American Petroleum Industry and the ISO (International Organization for Standardization). The supply chain for the oil and gas supply industry is influenced by ISO 29001, which is about problems in preventing defects (which incorporates risk evaluations) and service provider waste BIS Group, 2016). High quality management is necessary to identify or avoid altogether defects and wastes in the supply chain. ENOC’s supply chain vendors make a better match for partners in business if they share the values of ENOC for reducing defects and waste.
2. BUS 4353 Quality Management Tools CLO-2
Research based on qualitative and quantitative methods is necessary to make good decisions. Data needs to be collected and analyzed in order to make good decisions. A qualitative survey will be made of supply chain vendors to learn if their operations have the same
goals and commitments as ENOC to high quality. Problems related to poor communications, defective supply items, and how the supply chain vendors deal with waste will be addressed in the study.
3. BUS 4583 ISO Standards of Excellence
In order to meet the standards of excellence throughout the ENOC business and supply chain processes good communication between the company and the supply chain vendors is essential. Mooney and Smith (2012) pointed out that efficiency and costs must be managed well to take the competitive advantage. Facing the competition applies very well to ENOC because it is expanding its business horizons and needs to stay one step ahead of the competition. Standardized business processes between ENOC and the supply chain vendors can cut costs, but good management is required to make the standardization take place and be maintained.
4. BUS 4533 CLO 5 International Quality Management System
The research can evaluate the data from the interviews to learn level of performance of ENOC from the perspective of the supply chain vendor. The data can be used to inform management decisions at ENOC.
5. BUS 4533 CLO-3 International Quality Management System
The benefits for ENOC that arise from their relationships with their supply vendors can be determined by the research.
Research Title, Problem, and Objectives
Problem: ENOC is having problems due to the loss of revenues during the world financial crisis and the falling petroleum prices. Other products sold at service stations did not make up for the losses.
Objectives:
Research Methodology and Data Analysis
A qualitative research methodology will be used and the research design is to carry out semi-structured interviews over the telephone. The semi-structured interview allows interviewees to expand on their thoughts and experiences while the researcher guides the conversation to say on topic (Creswell, 2016). Interviews will be carried out over the telephone with employees at ENOC and employs with ENOC’s supply chain vendors to collect data.
The data analysis will be carried out by evaluating the results of the interviews. The results of the interviews will be coded into similar groups of information and interpreted. The researcher will evaluate the interview results by looking for patterns in the data about efficiency and good communication experiences (Mertens, 2015)
Research Plan
References
BIS Group. (2016). “ISO 29001 Oil and Gas: Quality for oil and gas supply. ww.bsigroup.com/en-GB/iso-29001-oil-and-gas/
BMI Research. (2013). “Emirates National Oil Company (ENOC): Q1 2013.” http://www.bmiresearch.com/news-and-views/emirates-national-oil-company-enoc-q1-2013
Creswell, J. W. (2016). 30 Essential Skills for the Qualitative Researcher. Thousand Oaks, CA: Sage Publications, Inc.
Mertens, D. M. (2015). Research and Evaluation in Education and Psychology: Integrating Diversity with Quantitative, Qualitative, and Mixed Methods. 4th ed., Thousand Oaks, CA, Sage Publications, Inc.
Mooney, J. W. & Smith, C. (2012). “Operational excellence: The key to success for Oil and Gas.” Oil + Gas Monitor. http://www.oilgasmonitor.com/operational-excellence-key-success-oil-gas/2751/
