Abu Dhabi National Oil company Harvard Case Solution & Analysis

Abu Dhabi National Oil company Case Study Solution

Abu Dhabi national oil company operates across the entire UAE through hydrocarbon value chain, with a carefully integrated multi-business. These businesses range from Production, storage, exploration and distribution of the oil, to develop significant amount and wide-ranged petrochemical products. The company has played a vital and integral part, in sustaining the economic balance of the country on behalf of the government. It has played a prominent role, in securing and safeguarding the environment, which gets affected as an outcome of the operations of ABNOC. In doing so, the company has established different environment safety program, like biodiversity sustainability program and waste material controlling program. Also, the company has initiated to bring the welfare, to the small regions through education and industrialization. The company has been involved, in enhancing the education level of the northern region through research & development programs and scholarships. The main agenda of the group, is to cut-off its waste production and acquire such technology that will help, to reduce the emission of toxic chemical and waste material in securing the environment.

Keywords:  Biodiversity, Externalities, CSR, legitimacy.

Introduction

Abu Dhabi National Oil Company, is one of the largest energy company in the world, both in terms of Reserves and production. The company operates in two refineries Ruwais and Umm AL Nar. It has 18 subsidiaries that serve through upstream, mid-stream and low-stream channels. It develops both types of gas field (offshore, inshore), while also offering exports of liquefied natural gas, local electricity and water utilities, to other industries like petrochemicals and water reservoirs.

The company has large operations, with the production capacity of 3.15 barrel per day.it also engraves the research and development institution and academic training institution, as a part of the corporate business strategy. Since, the company has such large production capacity and play a relevant role,in upgrading the economy of UAE. ABNOC initiates to take social responsibility, in order to up bring the economy and also preserve the environment. Indoing so, the company has inaugurated multiple corporate social programs, to support the environment and to minimize the adverse effect,on externalities of its functions on the environment.

Abu Dhabi National Oil company Harvard Case Solution & Analysis

Not only this, but the company inculcates its CSR strategy into its corporate strategy also, which is depicted through its operations and ongoing corporate policies.That dictate the deduction and reduction of harmful emission and water spills, to preserve the environment. For the 2017 strategy, the company has planned to cut-off the harmful emission of chemical and waste material by 70%,thru inculcating technology and innovation into its processes. It has also made strategies, to secure the sea life and bring betterment to the small under developed regions, as a part of the social responsibility.

Value Chain and Value Proposition

The company has extensive operations in oils and gas industry,along with subdivisions in agricultural sector. The value proposition of the company, is the long scale operations in different countries and the high-tech organizational structure.That reinforces the clean energy processes and enables it, to embrace the innovation and reduce its harmful impact on the society.The company maintains the value chain, by incorporating the technology into its functions that helps it to cut the cost and integrate itself with different economies, making the portfolio sustainable. In addition, since the company has its customer all over the world.Including,US and Australia the company manages to makes its operation less harmful to the society.That in turn, helps the company in maintain the value proposition, while also developing long-term relations with the customer, enhancing its overall value chain.

Strategic Planning and Corporate Social Responsibility Initiatives

Abu Dhabi National Oil Company, has a significant production and reserves. It almost caters the big market, through continually expanding its production capabilities. In doing so, the company has also balanced its portfolio with equal importance to CSR activities, in order to sustain its operations and offers its responsibility in maintaining the ecological balance of the environment.

The company has initiated different programs, to deal with various type of environmental issues and has strategically involved the environmental factor into its business strategy.In order, to extract two way benefits from a single action. The following are the strategic plans the company takes, in order to incorporate the CSR into its business strategy and operations.

1-     Environmental Controlled Emissions

The company will take the initiative, to control the emission of harmful gasses and chemicals from its production facilities located near the sea and urban cities. In doing so, it will devise an HSE code of conduct, which restricts and reinforce the organizational teams, to deduce and discover new methods and technologies.That could reduce the emission rate, the company finances the initiative with AED 698 million. Infact, each facility and production factory has a defined target, to reduce the emission every year.

2-     Air Quality Monitoring Stations

The company will take the initiative, to control the air pollution and also monitor the emission of harmful toxic chemicals into the environment. In doing so, the company will established the air quality monitoring systems, which transmit the real-time data from all production facility and manages the mixture of poisonous gasses into the surrounding air. Through the particular approach, the company controls the externalities that this emission can cause and also helps it to inspect the operational efficiency,of each unit in term of eco-friendliness................

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