Operational Decision Making - Research Paper Example

The corporation’s core mission encompasses focusing on availing quality products and services in its specialized field not only nationally level but also globally (“ADNOC”). Description of Operations In quest to attain its varied final products, the company utilizes the present’ sophisticated technological knowhow in drilling crude oil and gas from its 100 wells nationally (“ADNOC”). The company contrary to when its capacity was 2.7 million bbl per day in 2000 now has tremendously increased whereby currently it is twenty one million bbl per day, hence making the state being among the leading players in the market (Wildcat Publishing 56).

After drilling, transportation of raw materials - mainly crude oil and natural gas from the wells is by pipelines to the refineries (“ADNOC”). This is where real cracking of raw materials usually takes place to lighter products essential in other industries. Main inputs, which the company relies on include, 1. Crude oil In refineries, this raw material usually undergoes fractional distillation to obtain lighter and good quality products that are essential in diverse retail corporations. These include kerosene, diesel, petrol and in lighter or top chambers of the fractionating equipment comprise only cooking gases. 2. Associated gas Process entailed in handling or refining this form of raw material is extremely complex.

Mainly, it encompasses refining by eliminating impurities found in the gas, which are non-hydrocarbon quantities and fluid from the pure product (“Pipeline Magazine”). After refining has taken place, respective authorities via pipes package the gas into LPGs then store it in warehouses ready for collection and distribution. 3. Non-Associated Gas This is a low-graded raw material mainly obtained from gas wells whereby after transportation through pipes from its respective regions, usually undergoes hydrogenation in the plant then stored in warehouses after packaging in cylinders. 4. Crude oil byproducts These encompass materials that have not undergone complete cracking process whereby recycling is an option to separate them into lighter components essential in gas industries like pentane.

Supply Chain Decisions In order to increase on the company’s profitability, it will entail integrating of both private and retail distributors. This is to ensure the company does not incur high expenses because of tasks, which could have been undertaken effectively by other potential players specialized in this field, which is transportation. This operational decision will be effective due to the company’s high quality products due to its adoption of TQM, which up to date comprises one of the key strategies.

Consequently, this will pose a significant impact on strategic objectives whereby their scope will only be within the company in ensuring once the products are in the market can sell well due to uncompromised quality. This implies clientele’s preference to ADNOC’s products will be high due to the company’s quality consistency. Hence, application of product differentiation strategy will significantly contribute to altering in a way some of the company’s objectives towards being customer centered (McGuigan, James & Frederick 338).

Contrary to conventional way of numerous companies, lowering prices in quest to attract clients but in real sense