Discuss about the Quality in Customer Focused Operations.
Customer satisfaction is the key to success to an organisation no matter whether the organisation is older or new. Unarguably, this is one such factor that differentiates between the different rival companies and that also narrows down the competition in the market by limiting the numbers of potential companies. The necessity to satisfy the needs of customers is also associated with a fact to identify the actual needs of customers. Different companies use different marketing strategies to identify the needs of customers; however, it can never be predicted that they have performed an absolute task, which would provide them a clear insight of their target customers. Many perceptions of the customers can now be understood with the help of different strategies such as mapping the customer journeys before they buy something. However, it is extensively difficult to take anything for grant as customer behaviour changes very frequently (Six Sigma Online Training Certification Information 2017).
Saudi Aramco is one of many such companies that have to satisfy the needs of its clients and the customers. It operates at the global platform with many products under their belt such as Natural Gas, Petroleum and few other Petrochemicals. It is one of the most valuable companies in the world in terms of market capitalisation. The operation is extensively complex. They carry loads of responsibilities with them in order to satisfy the needs of its clients. It is one of such companies, which is operating to produce oils and natural gas; however, it is also becoming a clearer reason behind the rising carbon footprint and the environmental pollution (Saudi Aramco 2017).
The main purpose of this assignment is to analyse the operational values of the selected company. The paper aims to find some quality management related issues if there is any. Moreover, the paper also recommends solution to overcome the identified issues along with the challenges that might come underway on implementing the suggested improvements.
Saudi Aramco is one of few companies in the world, which is engaged in various oil related projects such as oil refinery. It came into existence to reduce the shortages of oil during World War I in the year 1933. After it came to the existence it took four long years to get the first success. It continues to move gradually since then. However, the real recognition came into the year 2005 when it became the largest company in the world in terms of market capitalisation. It is headquartered in Dhahran but it operates at the global platform by means of exploration, refining, production, chemicals, marketing and distribution. All those activities are in continuous monitoring of the Saudi Arabian Ministry of Mineral & Petroleum Resources. It has deployed several tankers to ship refined oil, crude oil and gas to the different parts of world. It is a challenge to company like such to maintain an utmost standard of customer service and to satisfy the needs of its clients & the customers. Quality management in this regard appears to be a challenging task to such an operation (Saudi Aramco 2017).
Extraction of oil and gas- The oil and gas used to be at the lower most positions in between the rocks in an umbrella shape. The oil and gas stays there in the position and travels to an upward layer of the rock from which it was formed. The Saudi Aramco Company drills the water in the identified zone and forms a well, so that, the required oils and gas travels to the area. The process of drilling is very expensive and is successful in quite a low occasion too. The crude oil travels to the drilled well and from where it is collected at the ground level. It requires an investment of millions of pound for the exploration and extraction. The liquids that are collected in the created well are composed of water, gas and crude oil. It is important to separate the crude oil and the gas in order to transport those safely. The entire process requires a detailed analysis of few important factors such as identifying the porous rocks & making an efficient reservoir rock, planning a research to identify that which rocks have the highest level of porous in it and identifying the process of drilling & identifying the hidden oil in the deep beneath of sea water (Long et al. 2012).
Transportation of oil and gas- The process after extracting the oil is also very complicated and challenging as well. The extracted petroleum and oil needs to send to the refinery centres in order to refine the separated oils and gas. It can be done in two ways such as by sending it to the refinery house either through the pile lines or by the transport. Saudi Aramco has many such transporting vehicles that take the responsibilities to carry the extracted oils and gas to its refinery centres. Crude oil is often traced in the exterior region such as in the jungle, deserts and the Arctic. In such circumstances, it is then a very complicated and challenging task as well to transport the extracted oil and gas to the refinery house. The oil refinery centres then transforms the crude oil into useful products or services. The transformed products are then sent to the most parts of world. The products then can be transported to the different parts of world through various available means such as rail, road and by boats alongside the canals and the rivers. Saudi Aramco has deployed numerous transporting vehicles to conduct the mentioned task (Willersrud et al. 2013).
Input resources- It includes many such as identifying the zone that has porous rocks, establishing a plant to form a well and using the different technologies such as upstream & downstream to drill the sea water (Coday et al. 2014).
Transforming activities- It includes the transformation of extracted oil and gas into crude oil and liquefied petroleum gas. The transformation happens after a long process of drilling. The activity produces some of most precious resources from the water (Kawagucci et al. 2013).
Output products/services- There are various valuable products are obtained. The extracted gas and oil are then sent to the refinery house either through the pipelines or through the transporting modes. In the refinery house, some very valuable products are prepared, which are then sent to the different parts of world (Hyne 2012).
According to Jhandir (2012), perceived value is necessary to met by the service providers. Customers generally perceive something after having a look on something and they also develop a perception up to a certain level. The author has believed that different firms across the globe have failed in meeting with the set expectations of the customers, which they have built up based on their perceived values. This is because of such fact it is necessary for different companies that they try to match up with the perceptions and the expectations that customers have from their clients. The author has made this understood that to maintain an utmost quality in the service it is necessary for the Saudi Aramco to match up the expected demand of the customers. This could be challenging but they have to do in order to attain the maximum ratings in the customer satisfaction level.
In the opinion of Abd-El-Salam, Shawky and El-Nahas (2013), service quality is very much required in order to attain the maximum standard of customer loyalty over the brand. The authors have provided their opinion on the importance of service quality. They have affirmed that service quality and customer satisfaction are both directly proportional to each other. It further means that customers would be more loyal to the different companies across the globe if they receive an utmost service quality from their trusted brands. It means that the Saudi Aramco Company should ensure an utmost customer service standard in their offer products and services. If they do so they would be able to win the loyal views of numerous customers across the globe.
Zhao et al. (2012) have viewed customer service as an utmost need for the organisation across the globe. The authors have said that customer service is an asset, which influences the behaviour of customers on their respective chosen brands. If a brand has highest standard of customer service then the one would receive a maximum level of recognition from the customers. This is indeed important because this would enhance the loyalty level in customers towards the one particular brand. This would also raise the responsibility level towards the customers on the trusted brands. A brand as such of Saudi Aramco would then need to maintain a highest level of quality in its products and the services in order to attain a highest level of loyalty of the customers across the globe. In other words,, this mean that the Saudi Aramco need to maintain the standard they have set related to their products and the services. This would not only enhance the loyalty level of customers but it would also enhance the quality in service of the company.
According to Izogo and Ogba (2015), satisfied customers will be loyal customers. This further means that these authors have argued that it is a waste to think of a tool to measure the customer satisfaction level. Customers who are satisfied they will be loyal to the brands and would go nowhere else to purchase their required products. The authors have indicated here clearly that the Saudi Aramco Company should look to improve its quality management standard. It should rather never think of observing the customer satisfaction level. This is because those who are satisfied customers they will also be loyal to their choice of brands. The Saudi Aramco Company needs to concentrate more on improving its quality of service. This would help the company gets more loyal customers and hence its customers will become loyal to the company.
In the opinion of Khan (2012), if a firm improves its service quality level the firm will get more loyal customers. Nevertheless, it is necessary to have a significant number of loyal customers in order to attain the highest level of success. The brands will be more flexible with the changing market circumstances that have behind them a large number of loyal customers. Going the same way as stated by the author, it can be concluded that it is necessary for the Saudi Aramco that it retains the earned customer base and build up more loyal customers with help from quality service. This is the one way they will get maximum numbers of loyal customers and hence will also get a sustained business operation.
According to Auka, Bosire and Matern (2013), there are certain factors that contribute to the customers in becoming loyal to a particular brand. Those factors are reliability, tangibility, assurance, responsiveness and empathy. According to the authors these five factors are necessary to maintain through utmost operational strategy. This will help the companies get a long list of loyal customers to their credit. On a same note, the Saudi Aramco Company should focus on maintaining the five sought factors by the authors. The company would be able to maintain its gained customer base and would also be able to get a new list of customers, which is very necessary to maintain a healthy business operation for a long span of time.
As opined by Dhar (2015), there should be a committed act from the organisation as this is very important to get the utmost business success. The author has emphasised on a fact that the workforce should be efficient enough to be flexible under any sort of unexpected circumstances. The market is very volatile and so the demand of customers. This is because of such reason, it is important to have a workforce that delivers under the any odd situations. On a same note, it is important that Saudi Aramco should invest a significant amount in training its workforce on utmost technical skills. This way they would be able to justify their participation with the company and therefore, they would be able to deliver the perceived performance from them.
In the opinion of Karani and Bichanga (2012), quality in service can be attained if there is leadership in place taking care of the entire operations. They have emphasised on leadership quality, which according to them matters a lot because it helps in gain the utmost quality in service. Leadership quality according to the authors will help in fight even in an unexpected situation. On a similar note, the Saudi Aramco Company needs to build up the leadership quality in its every employee. This would help the company prepare a bench of such talents who all can stand firm strong under any challenge. This will only bring the much required flexibility in the operation. Moreover, this will help the company in maintaining the utmost quality in service and will also help in get more such success in the future ahead.
There can also be some quality related challenges in the Saudi Aramco Company. One of such challenges is the exploration of innovation. This means that the company that invest much on exploring the different technologies would be more successful in extracting the oils. There can be situations at times when the Saudi Aramco Company fails to invest much on the exploring the possible innovation. This would be a very dreadful situation for the company as it will unintentionally provide other the opportunities. Nevertheless, it is very important to use innovative thoughts and tools to perform better in extracting the oils (Crespi and Zuniga 2012).
Needs of skilled engineers is the other quality related issue that can hamper the reputation of the Saudi Aramco Company. It is necessary to check whether pipe lines are in proper condition or else it may become responsible for an unexpected accident. It is therefore very important that the company must have such skilled and dedicated engineers who are in continuous checkups of the pipeline. A regular check-up will ensure identifying the flaws if there is any. Moreover, this will facilitate a timely repairing of the damage if it is done (King 2014).
Need of skilled drivers is also required to maintain a quality performance in the Saudi Aramco Company. This is because they transport the extracted oils and gas through road vehicles as well. A proper driving in this regard will be highly required in order to maintain a safe environment. Nevertheless, a reckless drive with such products in vehicle would result in a huge fire that might even hamper a large area and the population (Klauer et al. 2014).
Based on the expected quality related challenges, which have been mentioned in the above section following recommendations can be made to the Saudi Aramco Company:
The implementation of the improvements would be challenging to some extent as well. Making investments on purchasing eh various new technologies to improve the operational quality is very much feasible to a company like Saudi Aramco. However, it might face challenge to really follow the behaviour of drivers. The implementation would only require documentation; however, the implementation would not ensure an entire reduction of the flaws. This will rather be a documented implementation; however, the company needs a practical implementation. Additionally, there is technology to track the motion of the vehicle; however, there is no such technology to check whether the driver is driving properly (Ferguson 2012).
Conclusion
Saudi Aramco is the most reputed company in the world in terms of market capitalisation. However, the study has shown that even the company like Saudi Aramco is required to use innovative tools and to have skilled workforce in order to stand against any challenge. The study has shown some expected quality related failure that the company can have. The company may face challenge to invest significantly in buying the innovative tools. It may also face challenges in having a skilled workforce. Nevertheless, the company needs to overcome the identified threats that could hamper the quality service of the company. The oil and gas extraction process is very challenging, which is why it is necessary to maintain a utmost quality in service in order to stay strong in competition or else other competitors will take away the generated advantage. To stay competitive and to be a quality service provider, it is necessary that the Saudi Aramco Company is flexible enough to cope with the unwanted challenges that might come underway. The counter of such challenge is only possible with innovative tools, trained & skilled workforce and responsible drivers. The challenge to stay strong in competition is getting enlarged as the industry is witnessing the entrance of numerous new giants with passage of days.
References
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