Description
Solution
3.1 Brief Market Analysis
In Grand View Research (2024) report, the global in-flight and rail sector catering services market size value is approximately $16.01 billion as at 2022. There are expectations of increased growth with a compound annual growth rate (CAGR) of 5.9% in 2023- 2030. In Qatar as identified earlier, the Catering Services Market has a value of $1109.32 Million as at 2023 with an anticipation of robust growth and development with CAGR of 8.82% to 2029. With the rail transport increasing in its demand in Qatar, the need for catering services has similarly increased with more than 50%. For instance, at 2023, QNA (2023) report evidence that Doha Metro had attracted 100 million in ridership from the launching of the service in 2019. This is with 333,000 passengers in a single day involved in the transportation process. Hence, as part of their operations, sourcing for catering services is important but achieving cost savings is equally instrumental.
3.1.1 SWOT Analysis
As part of market analysis and identifying areas of achieving value for money outcomes, strengths, weaknesses, opportunities and threats need to be put into account (CIPS, 2024a). A summary of SWOT analysis is illustrated in the following;
Source: (CIPS, 2024a)
In summary, from the findings of SWOT analysis, it is evident the factors are to the favour of QRC in sourcing of the catering services. Also, the weaknesses identify areas which would need to be capitalised on to minimise the different threats which have been identified. With the catering services being sensitive for sustainability of QRC, there is a need to engage suppliers for a well-structured terms and conditions to eliminate ay misunderstanding. With shift from over-reliance to oil and gas, this can also service as an opportunity for QRC to diversify to tourism sector and engage catering services which are multi-cultural. The reviewing of the budget is essential and has been identified earlier in this report.
3.1.2 STEEPLED Analysis
This is a strategy used to plan in order to discover, evaluate, organise and track different external risks (CIPS, 2024b). The tool is hence used in understanding the impact of external environment factors on achieving value for money outcomes.
Table 5:Summary of STEEPLED analysis for QRC organisation
Source: Summarised from (CIPS, 2024b)
STEEPLED Factors Analysis | Analysis |
Social | · Increased in population growth in Qatar offer opportunities for QRC to expand their operations hence more demand for catering services |
Technology | · QRC can leverage on technology development in their supply chain operations |
Economy | · Qatar economy is going under continuous growth hence attracting best suppliers with qualifications
· QRC can diversify their operations in tourism industry in Qatar |
Environment | · Catering services must be sustainable based and adhere to best environment conservation |
Political | · MENA region politics impacting railway network spread
· Relative stability in Qatar political environment attract highly qualified suppliers |
Legislation | · Priority in selection of suppliers is provided to Qatar citizens as opposed to the foreigners |
Ethics | · Catering services must adhere to highest ethical values as it deals directly with people |
Demographics | · Millennials and Generation Z embracing rail transport hence need to accommodate their catering demands |
To conclude, in line with STEEPLED analysis findings, it is evident that QRC is in a favourable position in engaging different supplier of catering services. There is nevertheless a necessity for improving their leverage on environment, economic and social factors to improve their operations. This is with appropriate approaches put in place for embracing appropriate ethics and alignment with KSA laws.
3.1.3 Position and Market Placement Summary
In table 2 summary of QRC catering services, different sub-areas have been identified (Preparing meals for workers, Accommodation dining, Travellers meals and Preparation and consolidation of all menus of different travellers categories). In the catering services categories, a summary of preferred suppliers by QRC is illustrated in the following;
Figure 6:Summary of Catering Services Preferred Suppliers by QRC
Source: QRC internal documents
Therefore, catering services market in Qatar is not monopolistic market, multiple suppliers are in place implying existence of substitutes or alternative suppliers. In sourcing for Catering Services, QRC does not struggle to engage the best suppliers. For identifying competition in industry, Porter’s 5 Forces is applicable (Goyal, 2020).
Figure 7:Porter’s 5 Forces Analysis
Source: Summarised from QRC Internal documents
In sourcing for catering services by QRC, competitive rivalry is significantly high as Qatar is a hub of transport and link both locally and internationally. This is with a projection of the Qatar growing in their Public Transportation market in 2024 (Statista, 2024). This is with expected growth of annual rate of 2.61% in years 2024 to 2029 leading to projected market volume of US$0.58bn by year 2029. Similarly, having threats of substitutes and buyers high, sourcing catering services giving QRC a higher advantage in negotiating for costs effectively. Therefore, costs and quality of products and services is core for QRC competitiveness in Qatar railway sector. For effective practice, they would consolidate their sub-categories of their sourcing to reduce overall costs.
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(Solution) CIPD Level 7 7HR01: Strategic Employment Relations
(Solution) CIPS Advanced Practitioner Corporate Award (APDP)
- 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. |