Business Environment 1 Essay Example | Topics and Well Written Essays - 1500 words

Business Environment 1 - Essay Example At this juncture, strategic management is the only way in which a company can grow in the long run in this competitive field. The decisions should be undertaken by the firms only after analyzing the changes and conditions in the external business environment. It is true that without the help of efficient strategies, the firms cannot frame ways for further business development (Johnson and Scholes, 1993). This paper will explain the ways in which adoption of new strategies in the business of Oman Oil Company can help in mobilizing new resources and augmenting the overall level of its performance in the market. New strategies adopted in a firm would help it to improve its resource allocations, thereby reducing its cost of operations. It would facilitate the enhancement of the brand value of the company and improve its relations with its stakeholders. New innovations and creativities providing competitive advantages to the firm can also be introduced through implementation of new busine ss strategies. All of these advantages would help to forecast directions and also, increase the scope of business for an organization (Oxford Business Group, 2008). Formation of Strategies in the Company The business strategies of the company have helped in generating competitive advantages in the market. ... The mid-year rises in the prices of oil have significantly helped in the economic growth of Oman from 1999. The country had associated with the World Trade Organization in 2000 and since then, it has been promoting privatization in the economy. The Oman Oil Company has taken his opportunity to increase its business revenue and utilize the accumulated finances in various types of new private investment projects (making equity investments in new private companies). When the demand for oil in the world market had been increasing, the company had actively augmented its resources in business and expanded its scale of operations. The country of Oman also has plenty of natural oil reserves, thereby making extracting and producing oil more convenient. Any company engaging in the production of oil would not need to outsource it from any other economy. Thus, considering the external environment, the company has correctly selected its business investment segment. Competitive Advantages due to t he Strategies The competitive advantages gained by the company are the special features of its business that makes it unique in the whole market. Oman Oil Company with its effective business strategies has become successful in providing a greater value to the customers in the market. It is true that the price of different forms of energy manufactured by the company is high as their levels are regulated by the free forces of the market equilibrium (Porter, 1998). However, the higher prices are justified when the different beneficial services of the company are recognized (Hitt, Ireland and Hoskisson, 2009). Figure 2: Investments made by the Company (Source: Oman-Oil, 2012) With its effective business strategies, the company