Brief Discussion of Four Activities in Four Functional Areas of the Arabian Engineering Inc.

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Harvey Mudd College
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Arabian Industries is a leading company when it comes to contracting, manufacturing and maintenance of functional designs, engineering, project management, oil and gas industries, refineries, petrochemicals and power industries (Arabian Industries, 2015). The company has been in existence since 1991 in Oman, and is committed to a quality of work and is keen to provide solutions. In this section, we discuss activities in four of the functional areas of the company.

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AI Manufacturing dubbed AIM is a subsidiary exclusively owned by the Arabian Industries. The primary goal of the AIM is to provide solutions regarding engineering and manufacture of process equipment, packages as well as solutions. The first proficiency comprises custom designed and engineered equipment, systems, and packages for end users in essential industry segments. The companys facilities are located in Rusayl and Sohar. The companys foundation is quality, environment, security, health and safety in no particular order. Its primary clienteles include Petroleum Development of Oman, Aquatech, ZADCO (UAE) among others. The company has the following accreditations in its name; ISO 9001:2008, ISO 14001:2004 & OHSAS 18001:2007 (Arabian Industries, 2015). The services and products of the AIM include among others process and pressure containers (such as test separators, sand catchers, scrubbers and drain vessels), heat transfer equipment, storage tanks and silos, columns & reactors and process modules as well as pre-engineered skid packages.

AI Projects (AIP), is a subsidiary company of the Arabian Industries that provides assurance in procurement, engineering, construction fabrication and project management, among other services. AIP has been recognized for outstanding environment management, quality management as well as occupational health. In additional, the company has been awarded the following certifications; ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007. The core values of the company lie around safety, client satisfaction, meeting stakeholder needs as well as being viable commercially (Arabian Industries, 2015). The companys main projects are EPC Projects and Maintenance/ Shutdown Projects. Activities under this line include management of oil and gas facilities, modifications and change of field proposals, managing civil infrastructure such as roads and buildings among others.

AI Energy Solutions (AIES) is a Group Company of Arabian Industries. It has been accredited an ISO 9001:2008 certificate, and it specializes in packages for oil and gas companies. Its principal activities include an elimination of sand from process streams. The process engineering center is located in the United Kingdom (Arabian Industries, 2015). AIES offers various services such as feed studies, oil treatment, gas processing, sand management and trials to site installation and equipment commissioning.

AI Technical Support (AITS) services include a provision of total maintenance solutions for clientele in the Oil and Gas Industries, Refinery, Power, Chemicals and Refinery businesses. The company has been accredited with the following certificates; ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007 & API 6A, 6D, 16A. Its facilities are located in Rusayl and Sohar. Among the services provided are electrical testing, storage tank repairs and maintenance, maintenance and overhauling of oil field equipment among many others. The companys capabilities are grouped into two; shop based and site based skills, and they include machining services, marinating oil equipment, calibration of oil machines/ pumps, electrical testing, among other services.

Q2: Recruitment Process

Internal Recruitment Processes

A hiring process refers to the procedure of finding and hiring the best-qualified candidate from within or outside an organization, for a job opening in a timely and a cost effective manner (Hutton, 2007). The process is mostly organization- specific and is meant to fill job vacancies, sourcing and hiring new talent. Internal recruitment involves selection of existing workforce to take up employment in the same organization. There are multiple reasons as to why internal recruitment is the best approach when it comes to hiring process. For instance, by opting to use internal recruitment strategy, the Arabian industry will be saving on resources such as money and time. This will involve reducing the time and other resources utilized in the training of the new recruits.

Improvement in the companys productivity is another benefit of implementing internal recruitment strategy. This approach which involves the adoption of policies that advocate for the promotion of employees from within makes the staff members highly motivated thus increasing their levels of productivity (Slezak, 2012). This can also be a form of raising a morale within the team members. This will in return foster and inculcate the culture of loyalty and long-term stability among employees of the company. Furthermore, internal recruitment enhances succession planning.

Apparently, there are two primary internal processes used by Arabian industries to facilitate its internal hiring process. They include Omanisation and promotion. Omanisation refers to a policy initiated by the Omani government since 1988, which envisages maximization of Omani content in the business operations by replacing expatriate workers with trained Omani personnel (Arabian Industries, 2015). The process involves going through a training program to develop the Omani nationals. During training, the trainees are continuously monitored to assess their proficiency as time passes by, and those who pass are incorporated in the companys streams. The training lasts at least six months.

Promotion on another hand is the advancement of an employees position within the organization. The Arabian Industries company believes in training well its new hires and therefore in the case of vacancies arising, most of the internal staff are well equipped to fill in the positions (Dzimbiri, 2009). This is not only cheap to the company, but also advantageous in that the person writing the new post is familiar with the organization, and hence adapts more quickly than a whole new recruit.

External Recruitment Processes

External hiring process refers to the process of filling in vacant positions with new hires from outside the company. It involves assessment of current pool of job candidates other than existing staff, to ascertain if any are sufficiently skilled or qualified to fill and perform existing job functionality (Zimmers, 2006). The most important thing about this is that the company is in a position to get new and fresh talent from elsewhere. The two main processes used by the Arabian Industries which include social recruiting and Fresh graduate recruitment.

Social recruiting is the use of social media including sites like Twitter, Facebook and the company website to advertise for new vacancies. This method is advantageous to companies as a wider range of prospective candidates can be reached, compared to other methods such as head hunting (Dzimbiri, 2009). In the Arabian Industries company website, vacant positions are posted under current openings in the careers tab. It is, therefore, easy for those seeking jobs to be in the know of what jobs are open for recruitment with the company, and apply for the same.

Fresh graduate recruitment is the process whereby employers undertake an organized program of attracting and hiring students who are about to graduate from schools, colleges, and universities (Pearson South Africa, 2006). At Arabian Industries, this involves recruiting fresh graduates straight out of college, so that they can incorporate their fresh ideas and new perspectives in the business development. This process goes through four stages including induction, departmental rotational training, biannual assessment and permanent appointment.

Q3. Sources of Additional Funds

Internal Sources

Capital funding is considered to be the money that lenders and equity holders provide to the business. On another hand, funds are all the financial resources of a firm which include cash in hand, bank balances, and accounts receivables among others (Arbuckle, 2013). A companys capital funding may be made up of either debt (also called bonds) or/and equity (in the form of stock or shares). In case the Arabian Industries decide to expand its operations, there are various sources of funds, internally. They include retained profits and sales of fixed assets.

Internal financing by use of retained profits involves a firm using its profits as a source of capital for new investments, rather than distributing them to firms owners or other investors or obtaining capital elsewhere (Arbuckle, 2013). Being a profit making company then, Arabian Industries can use its profits for reinvestment in a case of expansion.

Sale of fixed assets is a one-off way of raising capital and is only used as a last resort during financial struggles and when a company needs to reorganize. Assets that are no longer needed, such as those that are too expensive to maintain are sold (Kashap & Whited, 2004). The company may resort to selling its assets and instead lease them from other owners, which is way cheaper than maintenance costs.

External Sources

External sources of financing are those funds obtained from outside the firm. It includes getting funds from other parties other than the company itself or/ and its activities. The main external sources of financing that would be recommended for Arabian Industries include the following:

Bank Loan or Overdraft: Bank lending is seen as either short-term (loan terms of up to three years) or medium-term (loan terms of between three to ten years) source of finance for many companies. Bankers peg amount and terms of loans on five main factors. These factors include purpose, amount, repayment, time and security Share Issue. This source is appropriate for limited companies, and therefore for the Arabian Industries to use this, it would have to be listed in the stock market of Oman (Bulaki, 2014). Share issue is frequently viewed as a long term source of finance. Share issue is defined as when shares are made available for sale to the public There are two main options open to a publicly- quoted company, that is, floatation (which ideally is an issue or sale of a percentage of a company on a stock market for the first time). The other option is a right issue or open offer which entails issue of new shares to existing shareholders. This is usually done at a significant discount to the current market price.

Q4. Marketing Activities of the Arabian Industries Related to Promotion

Promotion is one of the 4Ps marketing mix, which encompasses Promotion, Place, Product, and Price. Development entails communication with existing and potential customers about the product, services, and its benefits as well as features (Neves & Castro, 2010). The primary objective of promotion is to raise awareness so as to increase sales while fostering brand loyalty. Use of Infographics and online magazines are some of the approaches that the company can implement as far as its marketing activities are concerned.

Use of Infographic is one of the strategies the company can adopt as part of its marketing activities. The companys website is not only regarding text-based information but also a lot of visual content. There are lots of linkable visual assets/ pictures that lead to more details about the company. This serves to not only to retain the text information but also to have an idea of what products and services the company has offered since establish...

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