Shell Oman Marketing Company - Operations and Project Management - Case Study Example

OPERATIONS AND PROJECT MANAGEMENT (BUSINESS REPORT) Name Institution Professor Course Date Operations and Project Management (Business Report) Executive Summary The purpose of this research is to review an aspect of operations management inclusive of project management within an organization. This is through concentrating on the assessment of the aspect of operations management (logistics) with reference to the case of Shell Oman Marketing Company. Furthermore, the study will focus on demonstration of the influence of operations management in pursuit of competitiveness or competitive advantage in the industry of interest. The study incorporates an extensive review of literature on diverse aspects of logistics management and importance in the achievement of targets and goals of the business entities in the market and industry of operation. Introduction Operations management refers to the aspect of management, which concentrates on overseeing, designing, and control diverse processes and procedures of production, as well as redesigning of business operations in the manufacturing of products and services. One of the critical aspects of operations management is logistics. The purpose of this research is to review an aspect of operations management inclusive of project management within an organization. In order to address this objective, the research study will concentrate on assessment of the aspect of operations management (logistics) with reference to the case of Shell Oman Marketing Company. In addition, the study will focus on demonstration of the influence of operations management in pursuit of competitiveness or competitive advantage in the industry of interest. Background Information Shell Oman Marketing Company engages in the marketing and distribution of petroleum products, as well as blending of lubricants. The company operates through following segments with reference to retail, commercial sales, aviation sales, and lubricant sales. The retail sales segment refers to the operation of petroleum service stations (Kiessling & Harvey, 2014). On the other hand, the commercial segment concentrates on the marketing and distribution of commercial products with reference to marine fuel distribution in the niches of interest. In addition, the lubricants segment concentrates on marketing and distribution of the lubricants within the context of the automobile industry. Similarly, in the aviation segment, the company focuses on the provision of jet fuel among the private and public airlines seeking to offer quality services to the customers. Shell Oman Marketing was founded on June 8, 1997 operating with the headquarters in Mina Al Fahal, Oman. According to the information from the company’s website, the organization’s activities in Oman relate to downstream, fuel, and lubricants marketing. The aim of the company is to become the leading fuel marketing company in the context of Oman while meeting the energy requirements. Moreover, the institution focuses on contributing to the economic prosperity of Oman, as well as customers in an environmentally and socially responsible manner (Rajasekar & Al Raee, 2014). From this perspective, the company focuses on the provision of quality services and products to the customers with the intention of achieving competitive advantage in the market and industry of operation. Literature Review There have been diverse research activities and issues on the concept of logistics management. For instance, diverse researchers tend to define logistics management as the process of planning, execution, and controlling the movement of products and supporting activities within the system focusing on the achievement of goals and targets. Logistics management concentrates on managing and controlling the flow, as well as supply of products, personal utilities, information, and vital resources from one location to the destination in meeting the demands of the customers (Yusuf et al, 2014). Benefits of Logistics Management Diverse researchers continue to engage in the assessment of the benefits of logistics management, thus an opportunity to understand the influence of the aspect of management in improving effectiveness and efficiency in handling demands and expectations of the stakeholders. One of the benefits of logistics management is the ability and potential of the concept to enable the company to make the right quality of the right quality products at the right location, time, and condition in accordance with the preferences of the customers (Yusuf et al, 2013; Yusuf et al, 2014). In addition, logistics management contributes to the improvement of the customer satisfaction. In the course of achieving this goal, the concept or aspect of management concentrates on the reduction of the operation cost, thus passing on the advantage or benefit to the customers in the marketing of products and services for satisfaction of the needs. Logistics management is also essential in improving the potentiality of the business entity to facilitate penetration into new markets. In order to achieve this benefit, organizations tend to invest on effective and quality logistics management in the increment of the market shares and profitability within the industry of engagement (Urciuoli et al, 2014). Logistics management is one of the essential aspects of globalization and internationalization, thus the perfect platform for the increase in the volume of transactions, thus limiting expenses in offering products and services beyond cultural and geographical borders. Logistics Management Challenges Another critical aspect of research is the issue of logistics management is the challenges. Researchers have been on the forefront in the assessment of the issues of affecting the potentiality of organizations to achieve goals and targets of effective logistics management (Gajic et al, 2014). One of the issues affecting the achievement of the effective and efficient logistics management in diverse business entities is the performance of the economy. This has the ability to reduce or increase the costs of logistics management depending on the rate of the economic growth. Secondly, researchers tend to focus on the issue or cost of fuel in determination of the costs of logistics management (Cigolini, Pero, Rossi, & Sianesi, 2014). There is also the issue of the rising truck rates, which affect the movement of the products from the location of production to the destination of consumption with the intention of improving the customer services and satisfaction. Logistics management tends to focus on the determination of their investment under the influence of the capacity and infrastructure in the delivery of products and services to the customers depending on the mission and vision statement of the companies. Logistics management also suffers from the issues of increased truck weight limits and the aspect of green movement requirements for the improvement of environmental protection and conservation. Researchers tend to consider security and ocean shipping as other issues put into consideration in the achievement of effective and efficient logistics management especially in the oil and gas industry. Transport costs continue to be a major issue for the hauler because of the increasing demand passing the inevitable costs to the customers. Logistics management considers managing expectations while covering service costs. Cost implications of improved service levels might not be obvious making it difficult for the business entities to inappropriate budgeting for the uncertainties. There is need for increased investments by different entities in pursuit of quality logistics management. Another aspect of the research on logistics management is the assessment or investigation of the human resource issues in the facet of management. One of the HR issues of logistics management relates to the recruitment, as well as retention. It is critical for the business entities to secure qualified workers for the logistics jobs in addressing the demands of the industry. In addition, organization must also consider improvement of the working conditions and welfare of the employees in pursuit of the goals and targets of the organizations. This is through incorporation of effective compensation tools and structures for the motivation of the companies in the industry of transaction. Logistics in Oman Shell Marketing Company Logistics refers to the management of the flow of products from the point of origin to the point of consumption with the intention of meeting some requirements in relation to expectations and demands of corporations and customers. Logistics management is critical in the improvement of the efficiency and effectiveness in handling the demands and expectations of the shareholders and stakeholders within the market and industry of interest. The effectiveness is critical in elimination of waste of time and materials, thus the overall costs in providing quality services and products to the consumers (Kumar & Mathur, 2013). In the course of providing consumers with quality products, the logistics focus on integration of diverse issues and aspects with the intention of improving the competiveness of the organization in the market and industry of operation. Shell Oman market focuses on the usage of trucks for the transportation of the products over a short distance. This mode of transportation is mainly through road with the intention of reducing the cost of operations or relocation of products to address the demands and expectations of the customers in the market and industry of transaction. On the other hand, Shell Oman tends to consider shipment of the products over the water bodies through the large water vessels (Minnee, Shanka, Taylor, & Handley, 2013). This approach aims at accommodating large quantity of products in accordance with the demands and expectations of the customers at the end of the fiscal period. The technique is also vital in the provision of products over long distances with reference to the United States, Europe, and other aspects or facets of the globe. In order to preserve the environment, Shell Oman tends to transport the products to diverse locations through utilization of the underground pipelines. The approach concentrates on limitation of the damage to the products while on transit. In addition, the technique concentrates on limitation of damage to the transport system and elements such as roads. The approach is the major component or mode of transportation of the product by Shell Oman Marketing. There is also the possibility of the movement of the products from the manufacturing destination to the customers through the influence of large tankers. The destination of the products is usually the diverse stations for the customers and other shareholders, as well as stakeholders to satisfy their needs and demands. It is critical for the customers to have substantial information on the accessibility of the products with the intention of enhancing satisfaction of their needs and expectations. Moreover, the organization focuses on the usage of retail and wholesale outlets in the provision of the airline fuel, as well as the diverse lubricants. This effective logistics management is critical in the improvement of the effectiveness and efficiency in the service delivery as customers seek to address their preferences and satisfaction under the influence of the products and services at their disposal. The pricing system of the products depends on the components of the logistics management, which is ideal in the maximization of the opportunities in the global and domestic spheres. Importance of Logistics for Competitiveness As evident in the above discussion, logistics refers to the management of the flow of products from the point of origin to the point of consumption with the intention of meeting some requirements in relation to expectations and demands of corporations and customers. Business entities focus on the usage and integration of effective logistics management in pursuit of competitive advantage while addressing the demands and expectations, as well as preferences of the customers and other relevant stakeholders. Logistics management comes out as the integration factor in the success of the manufacturing, marketing, and distributing companies’ operations with direct implications on their services and products. In the case of Shell Oman, logistics management is the aspect of the supply chain management with the ability and potentiality to facilitate planning, implementation, and controlling the efficiency, as well as effective forwards and reverse flow of the products. In addition, logistics management incorporates the resource for the storage of products, services, and related information in pursuit of efficiency and effectiveness in service delivery. Shell Oman Marketing has the ability and potentiality to exploit effective and efficiency logistics management in pursuit of competitive advantage in the industry of operation while limiting diverse costs and expenses. In order for the logistics management to effective and efficient, Shell Oman should be able to reap diverse outcomes. In the first instance, effective logistics management should be vital in the generation of increase revenues at the end of the financial period. In addition, appropriate logistics management should enable the company to improve the operating cost structure in pursuit of competitive advantage in the niche and industry of transaction. Moreover, appropriate logistics management in Shell Oman Marketing should be crucial in the reduction of the overall transportation costs, thus limitation of transport issues, which might affect the overall revenues and profit levels. Similarly, effective logistics management should enable Shell Oman Marketing to improve customer service, thus opportunity to improve efficiency in the provision of quality services and products in the niche and industry of interest. Concerns for logistics in Shell Oman Marketing will be ideal in the full utilization of the supply chain efficiently through cutting costs in appropriate situations, as well as elimination of wastes of time and materials. Integration of logistics will enable the company to examine the growth and career paths of the business entity available within the industry. In addition, logistics is vital in the project management focusing on the coordination of the sequence of resources in execution of projects. Some of the typical constraints in project management include time, budget, scope, and relevant constrains in relation to business logistics. In this context, time constraints relates to the amount of time available in the completion of the project. On the other hand, cost constrain refers to the budgeted amount available for the completion of the project. Finally, the scope constraints refer to what is executable in the production of the outcome of the project. These attributes are essential in the achievement of effectiveness and efficiency in the completion of the project while managing existing resources. From this context, it is critical to note that logistics management will be vital in the improvement of competitiveness of the Shell Oman Marketing. This is through increase in the revenues at the end of the fiscal period. In addition, effective logistics management will be crucial in the reduction of the costs of operations with reference to elimination of the entire transport costs. Conclusively, logistics management is critical in the achievement of efficiency and effectiveness in handling the expectations and demands of the customers. The organization will focus on the improvement of customer service to substantiate the mission and vision, as well as marketing strategies in pursuit of competitive advantage against other players within the industry of transaction. Conclusion Operations management refers to the aspect of management, which concentrates on overseeing, designing, and control diverse processes and procedures of production, as well as redesigning of business operations in the manufacturing of products and services. Logistics management comes out as the integration factor in the success of the manufacturing, marketing, and distributing companies’ operations with direct implications on their services and products. Logistics management is vital in the improvement of competitiveness of the Shell Oman Marketing. This is through increase in the revenues at the end of the fiscal period. Moreover, effective logistics management will be crucial in the reduction of the costs of operations with reference to elimination of the entire transport costs. In this context, logistics management will enable Shell Oman Marketing to focus on the improvement of customer service to substantiate the mission and vision, as well as marketing strategies in pursuit of competitive advantage against other players within the industry of transaction. List of References Yusuf, Y. Y., Gunasekaran, A., Musa, A., El-Berishy, N. M., Abubakar, T., & Ambursa, H. M. 2013. The UK oil and gas supply chains: An empirical analysis of adoption of sustainable measures and performance outcomes. International Journal of Production Economics, 146(2), 501-514. Yusuf, Y. Y., Gunasekaran, A., Musa, A., Dauda, M., El-Berishy, N. M., & Cang, S. 2014. A relational study of supply chain agility, competitiveness and business performance in the oil and gas industry. International Journal of Production Economics, 147, 531-543. Yusuf, Y. Y., Musa, A., Dauda, M., El-Berishy, N., Kovvuri, D., & Abubakar, T. 2014. 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