Borouge and Fertil Companies in UAE

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Strategic management involves the ability of a company’s top organ to use different productive approaches in order to remain competitive in the present dynamic business environment. The top management specifies the goals and targets of the firm in allocating the available resources (Strategic Management, n.d.). Therefore, a company should have a large capital base or high liquidity so that it can survive the fluctuations in the market trend. In employing strategic management in their operations, these companies formulate, implement, and evaluate various decisions in order to facilitate achievement of the set goals and objectives.

Such organization has to use the available resources to meet the continuous market needs and even satisfy the expectations of its stakeholders. The level of operation involves the kind of activities that the firm should engage in while in the market. These companies have to take command or control of the functions such as managing their Working Capital (WC) and engaging in an effective cash flow forecasting. In avoiding external sources of business finance, organizations try to maintain their high liquidity.

The cash flow trend enables organizations to plan into the future on how they intend to navigate various hurdles and tap existing opportunities. For instance, if an organization predicts that there are times when there will be more cash inflow than outflow, it can develop avenues in which the funds will give good returns to the business other than remaining idle.

Organizations also monitor avenues where they commit their funds (Strategic Management, n.d.). This vivid follow up will enable organizations to avoid engaging in activities that were not planned for at the beginning. A properly managed WC can also enable an organization to make quick decisions in the products to continue supplying to their customers and those that should be withdrawn from the inventory. This process gives the management the opportunity to study the inventory and stock products that do not hold cash for a longtime.

The Chemicals and Petrochemical industry in United Arab Emirates (UAE) highly depends on the oil industry. For instance, they obtain their raw materials like urea, ethylene, caustic soda, and ammonia from the oil industries (Abu Dhabi National Oil Company (ADNOC) – View All Companies, n.d.). Firms in this industry are committed in investing in the emerging UAE economy in order to realize continuous growth. They employ different innovative technologies in their operations; this approach enables them to remain solvent even during difficult times.

There have been massive financial investments in technical, marketing, and managerial awareness. An example of such mother company is the Abu Dhabi National Oil Company (ADNOC). With the rapid increase in demand for and consumption of natural gas, this industry is seemingly going to increase their presence and market share in the next 3 to 5 years. The decrease in crops’ yield will also call for continuous use of fertilizers, which will have to be wrapped in environmentally-friendly plastic materials. All these projections will lead to expansion of the petrochemical industries in UAE.

Abu Dhabi Polymers Company Limited, Borouge and Ruwais Fertilizer Industries, Fertil are examples of two competing firms in the petrochemical and chemical industry. Borouge has employed innovative ideas in maintaining a cleaner and safer environment by finding solutions to plastics. The company noted the increased demand for plastics in the automotive industry, communication and transport sector, packaging of materials, and, at the same time, noted the need for environmental protection.

Therefore, it launched its operations to meet the above obligations. Currently, it has customers spread over 50 countries worldwide and employs 1600 of 40 nationalities. This company is strategically focussing on value creation that is ensuring that their customers world over use products that are of high quality and above other products in the market (Borouge – About Us, n.d.). The large number of employees that work at their innovation centre reveals their commitment to create value by using recent technological applications.

In addition, the innovation centre is well equipped with modern machines that can process and analyse plastics; this enables the firm to develop films, wires, cables, and pipes applications. Borouge plans to launch a project dubbed ‘Borouge 3 project’, this will raise their production capacity to 4.5 million tonnes per annum (Borouge – About Us, n.d.). After tripling its annual production to 2 million tonnes, Borouge plans to reach an annual production of 2.5 million tonnes by 2014. Further, it has been investing in Asian polyolefin plants and logistic hubs.

On the other hand, Fertil has been using the lean gas to manufacture fertilizers for both local and international market. The company has modern storage facilities and integrated utility units, improved its productivity and technology. This strategy was meant to increase urea and ammonia production. Notably, Fertil packs its products into different sizes. This system makes all the customers access the products thus increasing their market presence.

Moreover, the completion of the Urea De-bottlenecking project saw the firm increase its urea production from 1830 to 2300 MTPD and even reduced carbon dioxide emission from the plant by 20% hence decreasing global warming (Fertil – Overview, n.d.). Again, in 2009, the company initiated a project, FERTIL-2 Project. The firm plans to expand its granulated urea production capacity to 2 from 0.8 million tonnes annually. These massive investment will actually enable Fertil achieve its objectives of increasing global food production.

Borouge Company pursued the strategy of manufacturing environmentally friendly plastic materials as a means of minimizing environmental pollution and even to meet the continuing and increasing demand for plastic materials (Borouge – About Us, n.d.). This approach helped in achieving sustainable environment for all.

Clearly, technology was essential in achieving the company’s objectives and plans. Fertil Company, on the other hand, did not want the by-products from oil companies to go to waste. This prompted their strategy to initiate a means of converting these by-products to useful materials, fertilizers (Borouge – About Us, n.d.). This strategy was meant to keep the environment safe and healthy. In addition, it ensured better energy conservation techniques.

In a point of fact, these firms have done a recommendable initiative in protecting the entire environment. They ought to set their plants in most industrialized urban centres, which have been experiencing the pollution menace from such industrial wastes. For example, all industries should install a carbon dioxide (CO₂) recovery unit since a polluted environment affects all sectors in the globe. Remarkably, these firms should make use of a mass education strategy in order to create awareness to all (Strategic Management, n.d.). They will have to set aside funds to sensitize the entire population. This initiative will help them in protecting the environment hence gaining competitive advantage over their competitors.

References

Abu Dhabi National Oil Company (ADNOC) – View All Companies. (n.d.). Abu Dhabi National Oil Company (ADNOC).

Borouge – About Us. (n.d.). Borouge – Home. Web.

Fertil – Overview. (n.d.). Fertil – Home. Web.

Strategic Management. (n.d.). Management Study Guide – Free Training Guide for Students and Entrepreneurs. Web.

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Borouge and Fertil Companies in UAE

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