ADGAS essay

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The company strives to achieve its vision through the safe and efficient production, marketing, sale and  delivery of LNG, LPG, natural gases, naphtha and sulphur; building on our ADGAS history, solid partnerships and human capital. It also strives to sustain its internationally recognized reputation for reliability, integrity, and efficiency and continually improve HSE and business performance. We will attract, develop, and retain competent and dedicated staff. ADGAS aims to achieve this by being an excellent efficient and reliable company, through adhering to the highest Health, Safety, & Environment standards and through employees who are dedicated to Quality, Professionalism and Cost Effectiveness.

• ADGAS Critical Success Factors

1. Commitment to Customer Satisfaction

2. Enhancement of Staff Capabilities and Morale

3. Focus on Health, Safety and Environment

4. Embracing Advanced Information Systems/Communication Tech

5. Emphasis on Cost Effectiveness

6. Commitment to Reliability

We propose that ADGAS adds new SAP transaction to the current SAP system in order to switch from paperwork procedure to a systematic procedure. In other words, ADGAS employees shall receive on annual basis coveralls, jacket, hoods, gloves, boots, pagers, radio microphones, mobiles, goggles, and other items related to work requirement. The mentioned items will be provided through SAP system and that would add the following benefits:

1. Business process improvement – Quality

The current paperwork process for item request has to be completed through different departments, which take longer time compared to the proposed strategy. The proposed systematic procedure aims to facilitate and prompt the business process and is based on ADGAS mission and its critical factors. The systematic procedure will allow the employees to raise a notification through SAP system. The approval of each department will be obtained systematically. The implementation of this solution will improve work productivity as well as quality (reduce paper cost & timely actions).

2. Environment – Go Green 

Environmental protection is on the top of the list as highlighted on ADGAS vision, mission, and critical factors. The proposed strategy supports ADGAS Environmental Management System as the implementation of ISO 14001 system underlines for continual improvement in environmental performance of ADGAS. Therefore, the proposed strategy will let the employee to return unwanted items in order to receive a new one since the system will reject unreturned old item that is supposed to be used for “Clothing recycling”. This strategy will add benefits and value to ADGAS since it would save trees/papers, help in cost reduction, raise awareness and create Go-Green culture. 

After conducting an external analysis to find a suitable strategy for ADGAS using the Five Competitive Forces tool the following can be deduced. This strategic tool allows us to understand the environmental challenges and opportunities toward the proposed strategy.

Table 1: Five Forces Analysis  

N0. Force Analysis
1 Supplier  ADGAS implemented SAP system since 2002. Therefore, the relationship between ADGAS and SAP company is solid and such strong relationship would potentially increase strategic options for ADGAS. In addition, this solid relationship would facilitate the business process between both companies in terms of communication and resources. 
2 Customer Our internal customers are part of the proposed strategy objectives. The employees have significant impact on business performance and success. For this reason, it is crucial to provide and create a quality work environment to meet and exceed our internal customers’ expectations. The proposed strategy will allow the employees to request any item by one click and can track the transaction systematically, which will save employees’ time & effort. 
3 New Entrant  
4 Substitute   
5 Rivalry  

The above Five Competitive forces table shows that ADGAS should emphasize on supplier and customers via adding new feature to SAP system. The supplier will provide the required resources for the proposed strategy and the customers (employees) expect quality work environment and will be part of the proposed strategy implementation/Go Green.

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