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\nGenerate strategies that you would recommend GLOBEX to immediately implement and justify them.\n1) Decrease in sales due to external factors (Malaysian politics scandal and decline in oil and gas prices):\n\nStrategy: Diversify the client base and expand into new markets.\n\nJustification: By relying heavily on oil and gas and offshore engineering companies, GLOBEX is susceptible to fluctuations in the industry. By diversifying the client base and expanding into new markets, GLOBEX can reduce its dependence on a single industry and mitigate the impact of external factors. This can be achieved by targeting industries such as renewable energy, infrastructure, and manufacturing, which may require technical inspection services.\n\n2) Loss of staff and dissatisfaction with project execution and payment claims:\n\nStrategy: Improve project management and payment processes.\n\nJustification: In order to retain staff and ensure smooth project execution, GLOBEX needs to address the issues related to project management and payment claims. This can be done by implementing a robust project management system that ensures effective coordination, timely delivery, and accurate payment claims. Additionally, GLOBEX should establish clear communication channels between the sales and project management teams to align expectations and resolve any issues promptly.\n\n3) Complaints about salary, benefits, and working hours:\n\nStrategy: Review and optimize the compensation and benefits package.\n\nJustification: To address employee dissatisfaction and retain talent, GLOBEX should review its salary, benefits, and working hours policies. This can be done by conducting a comprehensive compensation and benefits benchmarking exercise to ensure that GLOBEX's packages are competitive in the market. Additionally, the company should consider offering additional benefits or incentives to motivate and reward employees for their hard work. Clear communication about the working hours policy should also be provided to avoid any misunderstandings.\n\n4) Accusations of favoritism and not performing sales and marketing activities:\n\nStrategy: Enhance transparency and accountability in sales and marketing activities.\n\nJustification: To address the accusation of favoritism and ensure that the Sales Head is actively contributing to the company's growth, GLOBEX should implement a transparent and accountable sales and marketing process. This can include setting clear performance targets for the Sales Head, regularly tracking and reporting on sales activities, and providing training and support to enhance sales skills. GLOBEX should also improve internal communication to address any misconceptions or misunderstandings among employees.\n\nOverall, these strategies aim to address the key dissatisfaction points and improve GLOBEX's performance and employee satisfaction. By diversifying the client base, improving project management and payment processes, optimizing compensation and benefits, and enhancing transparency and accountability in sales and marketing activities, GLOBEX can position itself for growth and success in the industry.