Strategic Management Case Study: GLOBEX's Challenges and Solutions

"Question 1:\nRead the following case. Answer the question following the case study using theories, framework, tools and lenses you learned in the course "Strategic Management" course\n\nYou are ASH the Sales and Marketing Head of a small oilfield technical inspection company in Kuala Lumpur, Global O&G Inspection (GLOBEX). Your clients are oil and gas and offshore engineering companies including many giant GLCs and MNCs in Malaysia, southeast Asia and central Asia.\nGLOBEX was founded in 2002. It has been doing better since 2010 after a long decade struggling to be a trusted name in the oil and gas inspection industry. For a very small company of 15 permanent staff and 30 freelancing technicians/engineers, you had been doing quite alright from 2011 to 2014, with an average of yearly revenue of RM 6 million (USD 1.5 million). In 2015, GLOBEX saw a remarkable decrease in sales - a lot of it could be attributed to the peak of Malaysian politics scandal that caught the eye of the world, and consequently many investors pulled out their investments from Malaysia, in general. To add to that, the global average closing price for oil and gas in 2015 declined by 30%, and this directly impacted the market price for oilfield and offshore services. GLOBEX’s revenue dropped drastically in 2015 (RM 2 million). GLOBEX spent the next three years trying to sustain itself with all the overhead costs (buildings’ rents, utilities, salaries, technical equipment and supplies, fees, etc). \nThroughout the Malaysian election season in mid of 2018, GLOBEX saw a lot more decline in projects. With the change of the government and market stabilising, the year of 2018 did not look the best either. Your revenue has now dropped to just under RM 1 million. GLOBEX lost many of its staff (mostly the administrative staff and the technicians/engineers) due to multiple late payments. You feel like the outspoken Project Manager (Sam) has not been performing in terms of project execution and payment claims from clients. You really, really do not appreciate that Sam has been telling people in the company that you have not been doing your part in payment claims! You are the Sales Head, you do not have to chase clients for payments. Your role is to meet potential clients, pitch for projects and try to close sales. Granted, you have not closed any sales in 2020 and 2021 except for very, very small gigs, but you feel like you have done your best. \nDissatisfied with Sam, you have been telling Kai the MD, who is a good friend of yours that Sam the Project Manager has not been very successful in negotiating the claims of payments from clients whom you have completed delivering your services to. You feel like Sam has got to take some responsibilities instead of blaming the situation on other people.\nYou also notice that Sam has always been the one complaining about the late salary, lack of benefits and the policy of working 4 days a week. You do not appreciate the fact that Sam has kept on complaining why are the staff paid for 4 days/week salary when they are virtually working 5days/week. To you, if Sam has really been working 6days/week, the company would not have these much financial problems.\nSam the Project Manager has also accused Kai the MD of favouritism. Sam has kept on mentioning that GLOBEX is paying you the Sales Head free salary without you actually doing any sales and marketing activities. You are very upset with this claim! You also feel like Max the HR Head should not entertain Sam’s complaints too much. \na.As Ash, what strategis would you take when meeting the board of Directors of GLOBEX for each of the following disstaisfaction that you have?\n\nCreate & elaborate a thorough SWOT Analysis of the above case study\n\n内容：\nStrengths:\n1. Established name in the oil and gas inspection industry.\n2. Experience in serving a wide range of clients, including giant GLCs and MNCs.\n3. Sales and marketing expertise.\n4. Small and agile team.\n5. Strong network and connections in the industry.\n\nWeaknesses:\n1. Reliance on a few key clients.\n2. Lack of diversification in revenue streams.\n3. Decrease in sales and revenue.\n4. Loss of staff due to late payments.\n5. Complaints about project execution and payment claims.\n\nOpportunities:\n1. Market stabilization after the change of government.\n2. Potential for increased demand in the oil and gas industry.\n3. Expansion into new geographical markets.\n4. Introduction of new services or solutions.\n5. Collaborations with other companies to enhance capabilities.\n\nThreats:\n1. Economic and political instability in Malaysia and other regions.\n2. Decline in global oil and gas prices.\n3. Competition from larger and more established companies.\n4. Negative perception due to staff complaints and payment issues.\n5. Limited financial resources for investment and expansion.\n\nBased on the SWOT analysis, the following strategies can be considered for each dissatisfaction:\n\n1. Dissatisfaction with Sam's project execution and payment claims:\n- Conduct a performance review and provide feedback to Sam on areas of improvement.\n- Implement a robust project management system to ensure timely execution and accurate payment claims.\n- Provide training and support to Sam to enhance his negotiation skills and ability to handle payment issues.\n\n2. Dissatisfaction with Sam's complaints about late salary, lack of benefits, and working hours:\n- Review the company's compensation and benefits policies to address any valid concerns raised by Sam.\n- Communicate the rationale behind the 4-day work week policy and ensure that employees understand the value it brings to the company.\n- Encourage open communication and address any grievances through a transparent and fair process.\n\n3. Dissatisfaction with Sam's accusation of favoritism and complaints about the Sales Head's performance:\n- Address the accusation of favoritism by ensuring that decisions regarding promotions, salaries, and benefits are based on merit and fairness.\n- Review the Sales Head's performance and provide evidence of sales and marketing activities conducted.\n- Foster a culture of teamwork and collaboration to eliminate any perception of individual performance being compromised.\n\nOverall, the strategies should focus on improving project execution, addressing employee concerns, and enhancing communication and transparency within the organization. Additionally, efforts should be made to diversify revenue streams, explore new markets, and adapt to changes in the industry to mitigate threats and maximize opportunities.