Nakilat Agency Company

Executive summary

Nakilat Agency Company is the only shipping agency company in Qatar as per the regulations of this country. The company has been mandated to deal with two ports, Ras Fallan and Mesaieed and has been licensed by the government of Qatar to carry out the agency function. This report wished to look into how it could improve the performance of this company as well as how this player in the shipping industry could grow. The report answered various questions on NAC concerning its feasibility and extended existence in the market. The report was generated after the two ports were researched, and the findings analyzed. The report analyzed the company using the SWOT analysis to give recommendations for the company’s enhancement on service provision. The report was a success as all the groups being investigated responded quite well and were highly cooperative. The recommendations given in this report were also explained in detail. More so the report gave the implementation procedure of each recommendation it gave. The report indicated that the company was on track for a highly positive growth and exemplary performance.


Table of Contents

1.0 Introduction. 4

2.0 Findings. 5

2.1 SWOT Analysis. 5

2.2 Future strategic techniques. 10

3.0 Recommendations. 11

4.0 Conclusion. 14

1.0 Introduction

Nakilat Agency Company that took over Ras Laffan Industrial City Port Operations seven years ago is a company that is entitled with handling travel ships in Ras Laffan and hydrocarbon ships in Mesaieed port (Thorpe & Mitra 2012, p. 15). The company has been successful over the years it has been in existence and has proved its worth to the Qatar Petroleum Port Agency License for trusting it to handle ships in both ports. The company however wishes to look into its travel operations and improve on its performance. This report wishes to establish whether the company has met its objectives, vision and mission statements in terms of service delivery. The companies travel performance has also been reviewed and analyzed. The report has looked into the recommendations that are subtle to exemplary performance of the company. Implementation of these recommendations has also been looked into, and the followup process highlighted. Is there anything that can be done to catapult Nakilat Agency Company (NAC) to efficient service delivery and consequentially greater success? More so the report looks into activities that can be added into the companies list of activities to add value to the company. What can be added to the existing travel services to increase the company’s revenue generation?

The company’s expansion stumbling blocks have been featured in addition to how the existing resources can be used to improve the company’s revenue. What has been the company’s biggest stumbling block to total success? Are there any in-waiting stumbling blocks to success, and how can they be prevented? Efficiency of a company’s operations is very vital for increased revenue generation in any sector. Therefore, it is important for any service provider or good producer to smoothen a company’s operations in order to maximize revenue and most important enhance customer satisfaction. This report will, therefore, look into the company’s operations in both ports and assess their performance while looking for new opportunities. How can NAC improve its travel operations?  Assessment will include and not limited to the human resource performance while providing service. Additionally the report will include the activities that are carried out in the two ports with their performances overall. The report will consider the results that will be acquired from the operations’ analysis in the company.  The report will look into the operation all the employed staff their rating according to performance index and evaluate their importance to the company as well as how they can be motivated to improve the service delivery in the travel operations. The report is anticipating getting fewer stumbling blocks to the company’s operations. The report also thinks that there are less or no in-waiting threats to its operations.

It is also anticipating that an increase in its human resource with more qualified and highly skilled labor into its operations could increase the revenue it generally generates. While generating this report several factors could limit its credibility and/or completion. The groups being investigated might be unwilling to give the correct information or might rather decide to withhold information to the report generators. The findings on this study might, therefore, be interfered with in any case. The groups being looked into might be actually busy failing to adequately giving attention to the report compilers. This might lead to incomplete analysis of the company’s operations. Due to the schedule of various staff the report might fail to contain some valuable information that is necessary for critical analysis of the company’s operations as well failure to generate valid recommendations and conclusion.

2.0 Findings

2.1 SWOT Analysis

The NAC Company is an established company that enjoys quite a good foundation and has continued to enjoy vast revenues in Qatar. The company just like other organizations has a number of strengths, weaknesses, opportunities and threats that affect the performance of any other company. The company needed to analyze all these to ensure that it makes a decision regarding its position presently and what it aims to achieve in the near and longer future. However, it enjoys bigger advantages compared to its shortcomings. The company is at a larger extent endowed with a greater chance of continued improvement rather than deterioration.

The company has quite a number of strengths that makes it one of best companies in the industry it saves. It enjoys the several advantages that make it a company that has continuously grown into its exemplary stature. The company has quite a number of strengths that work to its advantage.  One such strength is that it is the only licensed company to undertake services at the Ras Fallan ports for travel ships and the Mesaieed port for hydrocarbon ships. The company is the only one that has been approved by the Qatar government to offer harbor services in Qatar ports. Being partly owned by state-owned Qatar Petroleum; the company was able to be easily approved for this purpose in the ports. This ensures that the country is not afraid of another company carrying out its mandate (Freeman 2010, p.19). The company also enjoys the advantage of having the best paid workers in its sector. Owing to this reason workers perform their functions with many commitments and much pride for the company.

The company’s workers are much committed to working without causing any flaws in the production process. Paying employees, better salaries have been an effective tool in ensuring that the company production is efficient and produces increasing marginal revenue (Shaw 1993, p. 49). The company is partly state-owned with five percent of its shares being owned fully by a government parastatal, Qatar Petroleum. This makes people have faith in the company thereby seeking its services. The fact that the government has a shareholding in this company ensures that there are no bumps in the service delivery caused by the lack of capital resources. Anytime the company wishes to expand its capital the government comes to its rescue. Moreover being the only company in the docks the government wouldn’t want a case of stalled operations. Therefore, whenever there is a problem with customer service the government comes into intervention. This makes it always to remain efficient since the government wouldn’t want to lose revenue by breakdown of services in these ports.

The government depends on the ports managed by the NAC for foreign trade on oil and other petroleum products. This means that the government does everything to ensure that there are free flow and exchange of goods in the two ports. The company has its own immigration office. This works to its advantage by ensuring that the company is very fast and effective in its operations on travel services. The issues of clearing and forwarding of the goods that are destined or are from the foreign countries have, therefore, been catered for. The office has made operations in these ports very fast and easy without much paper work taking place in the docks. Existence of diverse labor force in the company has made it efficient for companies to deal with different customers at a great ease. While recruiting its employees, NAC looks for people who can handle different clientele and who are capable of handling different situations as they arise (Enoch 2011, p. 96). The operations manager, for instance, can use four different languages that make him capable of dealing with many people from different backgrounds who are major trading partners with Qatar. The manager can handle several clients. This makes the operations o the company well spread over the different clients they handle within the docks. The company, therefore, enjoys quite a number of strengths that can be used for the betterment of the company’s performance.

Just like other companies, NAC faces quite a number of weaknesses that derail its operations and improvement in its performances generally. The company in as much as it enjoys the above advantages has over time found challenges that are not favorable for its service delivery. The company lacks competition from other similar companies. Inasmuch as this is viewed as good for the company, it is not healthy for the service delivery to its clientele. With knowledge that no other company can serve customers seeking travel services in the sea, NAC might offer poor services since they know no other company can offer services of its kind. This might reduce the revenue generated by this company.

The company might also be faced with the challenge of employment regulations by the government. Imposition of harsh employment legislation may force the company to employ poorly skilled manpower that is not capable of handling the company’s objectives, core values, mission and vision. This might cause a reduction in innovation, leading to loss of new ideas in the company. This pulls down the growth of companies as no new ideas are integrated with the company. New ideas are the ones that catapult any company to greater heights of success and excellence. With continued employment of non-skilled labor, the company will lose chances of getting new ideas and, therefore, limit its growth. The oil producing nations have been known for occasional internal conflicts. They have been known for the emergence of separatist groups like the Boko Haram of Nigeria. These groups have been known for their propulsion of political instability. Emergence of such terror groups cannot be limited to the developing countries only. Even big economies like Qatar could be faced by this political instability. Eruption of violence, as a result, of political instability could lead to a wavy performance in the NAC. This could mean that no country would be willing to sell its products in Qatar leading to little inflow of goods at the two most important harbors of Qatar. This means that there are a few challenges that the NAC needs to deal with to ensure that it gives the best for its customers and generates respectable revenue. If the company’s performance is not as the law recommends, it might be substituted with a company of its kind. This means that the company ceases a market it is used to and goes to look for a new market which is production wise unhealthy. Laws in a country change occasionally. The Qatar government may revise regulations to allow other countries enter the market that NAC is serving. This means that the company changes its monopolistic nature and serves in presence of a competitor. This might augur badly with its revenue generation and growth as well as expansion.

Despite the above challenges, NAC has opportunities to expand its revenue base and improve its service delivery to higher levels. Qatar is a country that has been described by the World Bank as the country with the highest per capita income making it the richest country as per this ranking index. Moreover, this country operates a tax free economy that favors the operations of any company. This makes it one of the most marketable nations in the world. Due to its ever growing gross domestic product it has become one o the major players in the international trade. As per this feature most countries have decided to trade with Qatar. Moreover, other countries have decided to invest heavily in this Middle East country. This has worked positively to ensure that its ports have become very busy with more and more ships docking on the shores or Qatar. With this in mind it is, therefore, important to keenly note that the ports of Qatar are a major source of income to this country. There are, therefore, more chances in the shipping industry in Qatar. To NAC these are good news since this means that NAC needs to expand its operations and embark on new service delivery as long as it is connected to the shipping industry. With this in mind the operations officers need to work harder to ensure that he scales the heights of production in this company to greater heights. On this account, it is also critical to note that most countries have been much interested in the petroleum products of the country in exchange of other products. Other countries dealing with crude oil products in this region are mostly in chaos or running headlines for vexing vices. In fact, Qatar has been named the most peaceful country that produces oil. This means that most countries are most likely to import oil from this country. With this in mind the operations manager needs to understand that there exists a more open opportunity in the shipping industry of Qatar. With more counties willing to import oil from here there is likely to be more trading between Qatar and .other nations. This means that the ports are on the brink of getting a higher number of ships per a single dock than what has been the case.

There are various threats that have been identified that could retard the company’s investment into its new opportunities. As time goes by liquefied natural gas (LNG) could be discovered in other countries that more strategically positioned as compared to Qatar. For example, if LNG were discovered in the south East Asia it could much compete with Qatar due to its strategic position. It would be able to serve the American and the Australian continents at ease. Production of this product by other countries could mean that Qatar doesn’t trade as much as was the situation. Similarly, return of calmness and peace in hostile and potential competitors would mean that Qatar loses some of its customers. With the above factors, the workload of the ports would drastically reduce. This means a loose schedule and reduced revenue. The marginal revenue of NAC would grow negatively as time goes by. Either way, this would mean that the company output would reduce, and its operations shrink.

Another threat would be where the country goes into violence. This would mean that lesser production of crude oil and its products. Consequentially this would lead to reduced production in the country. With this few countries would be willing to trade with this nation resulting into too few activities in the ports. NAC should there look into preventing these threats affect its operations.

2.2 Future strategic techniques

The company needs to keep in touch with its future. Most important the company needs to understand the trendy nature of the shipping activities. Moreover, the company needs to understand whatever is happening in the oil industry of Qatar and how it is behaving. This will enable the company to strategically plan for its future and get to know where it is headed to. With a daily changing world, the company will need to acquaint it with whatever that is happening in the corporate world. The company needs to look so much into its future rather than what is present or what is currently going on. The company interest on the future should exceed its current operations concentration (Ferrell & Hartline 2011, p. 59).

The company needs to come up with the future strategy technique that ensures continued growth without shrinking. To ensure a brighter future, the company should ensure that it always focuses its strategic management on the future. By creating a future strategic techniques model, the company will be seeking to address in-waiting problems. This should ensure continued growth of the company with increasing marginal revenue as compared to a company with no future strategies at all. The company’s operation manager is mandated with ensuring that the company’s plans are all made to fit for future service delivery rather than for current usage (Robbins & Coulter 2012, p. 88). The company has been very futuristic over time. For instance, it has made collaborations with other service offering companies to expand their operations. The company is to come up with a technique that will ensure that if new methods of transport emerge it will still be competitive in the market.

3.0 Recommendations

The aim of this report is to enhance the travel operations of this company in the ports it manages. This is to ensure that the company becomes one of the best shipping companies in the world. In fact, the report has come up with recommendations that will improve the performance of this company. The recommendations are meant to jump start the company’s improved performance even with an increased number of performance threats in the industry.

This report recommends the creation of a team that investigates the nature and the features of the constantly changing market. The market is the most important aspect of investment according to Chorafas (2011, p. 21). The report, therefore, feels it should be treated with much caution, and its behavior should be always revised and studied. The role of this strategic team will be to give direction to the operations manager on which direction to take to enhance the growth of this company. The team will be selected from various staff in different departments. In the case of shortage of human resource, the company could recruit other employees. To ensure good value for money, the team should also be tasked with marketing the company internally and externally. The team should be a qualified one to ensure that it gives the best results over what it is mandated to do. The team should be experienced and most recommended was recruitment of people who have formerly worked in this industry.

The report also recommends that the company occasionally carries out audit on the performance of its human resource to exterminate non-performing human resource. The audit will help to identify the poorly performing departments and help reduce wastage of the invested resource. This will also help in ensuring the company gives the best services to its customers who can only be retained by good service delivery. This will also ensure that service delivery is done at a lesser cost ensuring more revenues. This audit will be carried out by external auditors with approval by an international audit firm like Ernst and Young Audit Company. The audit should occasionally be done like thrice a financial year to ensure that laxity is totally eliminated. The audit will save the company millions of money at all. The results of the audit should be immediately discussed by the top management and necessary action taken.

The report also recommends that its workers are sent for benchmarking in other ports to visit agencies that deal with the same type of services. The visits will not only be limited to performing agencies but will also be extended to agencies that do not perform. This ensures that the workers learn from different perspectives. In the performing countries, the workers will learn how efficiently to carry out their duties. On the other hand in poorly performing countries, the workers will learn the effects of laxity and sleeping on one’s job. This benchmarking should only happen whenever there is little work in the ports. Most important to be taken for benchmarking are the under hands, and part of the management hat is under performing. The benchmarking should always be compulsory to the target group under any circumstance. The group should then be monitored for improvement with action being taken against those who do not change at all.

This report calls for performance appraisal of the workforce. This will motivate workers to work harder in the company to get recognition and be appraised by the company. The appraisal should be done regularly so as to remind the workforce their importance in the company. The report calls for two appraisals in a single financial year. The appraisal should be done annually. Those who have performed or improved should be rewarded to ensure that the non-performing are motivated to perform (KUMAR 2011, p. 19). The appraisal should be attended by each and every worker in the company to ensure that everybody witnesses. The appraisal should involve a prominent person in Qatar for more motivation in the performance of NAC’s workers.

This report recommends that the company undertakes a routine internal training for its employees. Most important is training the employees on importantly managerial skills (Spruyt 1994, p 17). This will help the workers easily to deal with situations whenever they arise. Moreover, the training will equip the workers with knowhow on how to grow their company to greater heights. This training should be compulsory to the target group, and promotion or wage increment should be based upon performance in this training. The training should be free and should be made to coincide with performance appraisal to motivate more people take up this training.

The report recommends that the company increases its capital investment if it seeks to grow. The company has over time put its capital on extra investments like ship building and repair. The report feels that more areas of investment should be identified in marine travel with caution being exercised to ensure that the company’s investment doesn’t sink into deep waters. The investment area should be identified by the strategic team in recommendation one. This investment should be discussed intensively by the top management team before it is passed through. The investment should be made from the company’s reserves without public borrowing at all. This will commit the company to oversee the investment progress.

4.0 Conclusion

Nakilat Agency Company is a company that has enjoyed a good revenue generation over the last years of its existence. Since its inception and licensing it has beyond doubt performed better than it was expected. With a good management team, the company has been able to expand its revenue generators and engaged in other services other than shipping agency according to Business Monitor International (2009, p. 44). The company has been favored by its extensive business strengths which are triumphant over its weaknesses and threats. The company enjoys an economy that has greater opportunities of expansion and growth. With the recommendations in this report, the company is poised for greater levels of growth and expansion. It is set to become one of the best companies in this industry. The government’s intervention in the economy, the company, is silently growing into an industrial giant in this sector. The company as it stands right now will grow into one of the best service providers in shipping agency.





















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