Description
Solution
Pestel Analysis
PESTEL analysis is a crucial macroenvironmental instrument enabling organisations to evaluate and comprehend the external factors influencing their operations. This method evaluates the Political, Economic, Sociological, Technological, Legal, and Environmental factors affecting a business, enabling leaders to identify prospective issues, challenges, and opportunities in the market environment (CIPD, 2023). PESTEL analysis is distinguished by its systematic approach and exhaustive scope, which provide a holistic view of the external factors influencing the business. The method’s adaptability permits its use in various situations, influencing strategic decision-making for market entry, product launches, and regulatory changes. According to Buye (2021), It enables organisations to adapt their strategies proactively by anticipating emergent trends and challenges. For instance, a pharmaceutical company can modify its product launch plans based on PESTEL-identified imminent changes in healthcare regulations. PESTEL analysis has limitations, however. It disregards internal aspects, such as the organisation’s assets and weaknesses, in favour of a singular focus on external factors. Moreover, reliance on future predictions introduces uncertainty and the possibility of inaccuracy. Conducting a PESTEL analysis requires gathering and analysing data for each factor and evaluating their impact on organisational goals (Anwar et al., 2021). Afterwards, strategic decisions are made based on the gained insights. For instance, a tech company investigating a new market entry may encounter favourable economic and technological conditions but legal obstacles due to data privacy regulations. With this information, the company can devise strategies to capitalise on opportunities and overcome legal barriers. PESTEL analysis is a valuable technique in People practice, particularly for tackling the difficulties and opportunities associated with external factors affecting an organisation’s workforce (CIPD, 2023). Understanding the impact of political issues on people management is one area where PESTEL can be used. Changes in labour laws, rules, or government policies, for example, can directly impact recruiting, compensation, and employee relations. Using PESTEL analysis, HR professionals can examine how changes in political climates may affect their plans and policies. Furthermore, economic issues can be crucial in workforce planning. A changing economy can affect compensation structures, benefits, and staff expansion plans. PESTEL aids in the identification of these economic trends and develops measures to avoid risks or capitalise on opportunities (Ray, 2020).
Image Retrieved From; (SpringWorks, 2021). Learning Need Analysis; The Learning Needs Analysis (LNA) is a structured procedure organisations use to determine the required knowledge, skills, and behaviours for effective job performance (Symonds, 2022). Its primary objective is to identify performance gaps aligned with business requirements and to resolve them with targeted training initiatives. LNA is distinguished by its systematic and comprehensive approach, which includes data acquisition via surveys, interviews, and performance evaluations to identify areas where employees may lack essential competencies. This ensures that training efforts are targeted, enhancing employee performance and overall organisational effectiveness (team, 2022). LNA’s ability to tailor training programs to specific requirements, thereby maximising the return on investment in training and development, is one of its advantages. A retail company might, for instance, identify sales teams with inadequate product knowledge and customer service skills following an LNA. With this information, the company can design customised training to improve these areas, resulting in higher sales and greater customer satisfaction. LNA can be time-consuming and resource-intensive, necessitating considerable effort, particularly in larger organisations.
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Explain the principles of critical thinking including how you apply these to your own and others’ ideas. (AC 1.3)
Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section. Word count: Approximately 450 words
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- Within six months, PS&M personnel will be provided with chances for capacity building through partnerships with educational institutions to gain knowledge and skills for implementing category management.
- The PS&M would become more motivated in the long run by providing recognition and benefits for pursuing category management implementation.
- Within a year, an effective change management strategy would be pursued, focusing on tracking the change and spotting change resistance
1.0 Introduction
1.1 ADNOC Organisation Background
In this report, the organisation of focus is Abu Dhabi National Oil Company (ADNOC). This is for understanding the impact of contract terms and conditions on distribution of risk and power with their suppliers. This is an organisation which began its operation in 1971 and today is ranked as the leader in diversified energy group which is owned by Abu Dhabi Government (ADNOC, 2022). The organisation network of holistically integrated business has based their operations across the entire energy value chain assisting their capacity for meeting overall demands of the consistently changing energy markets. For remaining competitive, the organisation has allocated $15 billion for advancing and accelerating lower-carbon solutions, investment in new energy solutions and decarbonisation technologies for lowering their carbon intensity with 25% by 2030 and successfully facilitating their NetZero by 2050 target. The company has a network of fully operational companies that operate throughout the entire hydrocarbon value chain, handling tasks including exploration, production, processing, storing, refinement, and supply in addition to manufacturing a wide range of petrochemical products. I work as a Contract Engineer for ADNOC Offshore, one of the company's divisions. The offshore division of ADNOC is responsible for the delivery and development of oil and gas resources in the waters surrounding Abu Dhabi. With OPEX and CAPEX, ADNOC Offshore spends over 3,000 million dollars annually. The organisation structure is as illustrated in figure 1; Figure 1: ADNOC Organisation Structure1.2 Identified Category Management
The deployment of the iSourcing system, a technology-focused procurement procedure, was chosen as the category management in this study. The need for oil and gas has significantly expanded in the modern era since the Covid-19 epidemic. As a result, ADNOC is forced to spend money on equipment to help them process and refine more oil and gas products. In light of this, the team leader's responsibility is to see that an iSourcing system is in place and can be utilised to purchase the new machines that the company needs to upgrade its operations. Locally in UAE, regionally in the Middle East, and internationally in Western nations, this would apply. This project aims to produce a report outlining the implementation of the change approach. This is done while ensuring the team members and leader have the necessary abilities to carry out the plan successfully. Implementing the new category management strategy is the kind of change being sought. The learner will be the team leader throughout the full category management process since a team has been chosen to oversee the deployment of iSourcing. The practical approach would be utilising various tools and strategies that demonstrate leadership and best practices in change management, along with a focus on the category management data from the ADNOC firm.2.0 Change Management Approach
2.1 Introduction of the Required Change Process
In its Procurement Supply and Management (PS&M) budget, ADNOC had allocated roughly 10 million UAEis before the COVID-19 epidemic. Up to 5,000 domestic and foreign providers are currently utilised in this. Because of the significant financial allocation in PS&M, the ADNOC sourcing method is crucial to their operations in this scenario. Logistics, equipment, and facility administration are all purchased separately by the organisation, all of which fall under the organisation's primary spending categories of computers and technical systems. As a result, they lack a centralised system that would allow all departments to be involved in aiding the procurement procedure (CIPS, 2020). The Burke-Litwin Model (Coruzzi, 2020) can pinpoint the internal and external factors that contributed to the identified change. This model ranks the many change drivers according to their importance and provides evidence of each one in figure 2; Figure 2:Drivers of Change Model When taking into account the ADNOC organisation and indicated change, these elements have the following effects, as stated in Table 1: Table 1:Summary of the Drivers of Change in ADNOC OrganisationFactors of change | Explanation |
External environment | Supply chain networks have been significantly impacted since COVID-19. ADNOC's ability to replenish stock, equipment, and machinery has been affected. Therefore, ADNOC would participate in strategic alliances by including diverse actors and intermediates in the complete value chain through iSourcing |
Individual and oganisational performance | ADNOC's investment in iSourcing would reduce PS&M turnover, everyone's performance, and supply chain network satisfaction. |
Leadership | To ensure iSourcing success, the PS&M will lead and manage efficiently. This inspires and guides other organisations to iSourcing success. |
Mission and strategy | The achievement of ADNOC's aim to provide high-quality oil and gas products would be ensured by the deployment of iSourcing. The justification for this is to quickly and effectively engage highly qualified vendors. |
Organisation culture | Implementing iSourcing would promote the collaborative and teamwork-oriented organisational culture of ADNOC. This is due to the platforms offered by iSourcing that provide suitable options for teamwork and collaboration. |
Task requirements and individual skills | Employees at ADNOC lack the knowledge and skills necessary to deploy iSourcing. This deficit might be filled by offering possibilities for professional advancement. Implementation of the change would be successful. |
Employee motivation | This report's proposal suggests that providing monetary and non-monetary rewards is necessary to encourage people to adopt iSourcing. This is for employing remarkably contemporary systems of practice. |