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  • Published on: 7th September 2019
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1.0. Introduction

Company Profile

Al Zubair Corporation LLC is based on the vision set by His Excellency Mohammed Al Zubair who has focus on the traditional values and has major focus on the entrepreneurial spirit of his grandfather Sheikh Ali bin Jumah who acts as a close advisor over the three Sultans and also his father and son have been serving the Sultans who were Al Katib Al Awwal and His Majesty Sultan Faisal bin Turki (, 2017).

The first job was in Petroleum Development Oman and His Excellency intended to establish Oman's first registered company in 1967 and since then the development of company operation being part of the business conglomerate and successfully change the name in 1973 to The Zubair Corporation. The current scenario states that Zubair Corporation has successfully shown that there are six leading divisions in the company and also to have 60 companies which are well-established to develop and remain the business development in the entire region and also majorly on international level (, 2017).

2.0. Discussion

2.1. Al Zubair Sector

The vision of Zubair Corporation is to be a strong leader in driving the socio-economic progress in Sultanate of Oman and increase the lives and style of people.

The Mission of Zubair Corporation is to be world-class asset management corporations in Sultanate of Oman and is defined as one of the potentially identified groups which offers unique opportunities so that the business will gain sustainability of optimization (, 2017). The sectors which Zubair Corporation belongs are divided into the following segments such as:

1. Automotive

2. Energy and Logistics

3. Engineering, Construction and Contracting

4. Real Estate and Hospitality

5. Financial Services

6. Manufacturing

The above mentioned sectors are beings served by Zubair Corporation for handling the world class services globally which have improved the business performance and is engaged in working effectively over the asset management in Oman.

2.2. Product and Services

The product and services provided by Zubair Corporation are diverse as it is one of the major and globally recognized brands and the automotive sector in Zubair Corporation offers vehicles which range from saloon cars to four-wheel drive packages and luxury SUVs which are effective in performance. Zubair Corporation has a major extensive product portfolio which shows that the commercial categories have revealed the presence of recreational products and services and the vehicles range from different brand and subsidiaries which makes Zubair Corporation to be successful in market.

The Energy and Logistics segment in market of Zubair Corporation shows that it has association with offering wide range of services and products to market. In Oman, Zubair Corporation is engaged in providing the international companies which provide wealth expertise in Oman in order to get significant content among masses. This sector is engaged in Zubair Corporation to provide maintenance, construction, engineering and contracting services (, 2017).

The engineering department in Zubair Corporation has the competency and diversified portfolio which is managed by the individual organizations in Zubair Corporation. The individual organizations and other companies in the specified market segment have conducted several supply design activities which have the post-installation in market. The comprehensive range of electrical products by Zubair Corporation is LV/MV/HV switch gears which include the control automation products (, 2017). There are UPS, switch sockets and cables along with cable based products and tunnels which have high masts as well as the custom-made products which are provided by Zubair Corporation.

The Real Estate and Hospitality Division of Zubair Corporation is engaged in handling the Real Estate department and in current business scenario there is development of business observed and Zubair Corporation is engaged in offering the customers with quality of real estate services which begin from dealing, finance and acquisition along with development and management of team disposal. The team shows continuous progress and development in local and regional market segment so that there is high quality perceived in the market segments. The function of Zubair Corporation in finance sector is to protect the shareholders and offer the desired services in asset management so that there is delivery of innovative solutions in order to increase the company functions (, 2017).

The manufacturing sector of Zubair Corporation is engaged in manufacturing as well as marketing of product in industries and also to offer products which are bottled and also wholly engaged in business such as packaging of sweets and biscuits even detergents and abrasives as well as plastics (, 2017).

2.3. Main Competitors

The main competitors for Zubair Corporation in market are Saud Bahwan Group which has similar line of operations as it is also one of the leading importers of vehicles in Sultanate of Oman. Zubair Corporation faces threat from Saud Bahwan Group because they both have similar line of operations and in Oman both have neck to neck competition in the market. This shows that Zubair Corporation needs to work hard in order to have better sustainability in market (, 2017).

2.4. Type of Ownership

The status of Zubair Corporation is Limited Liability Company (LLC) which is the legal structure and is sort of hybrid which provides the features of limited liability and tax efficiencies along with operational flexibility which is observed in case of partnerships. The advantage of Zubair Corporation LLC status is that they are not taxed and are regarded as separate business entity.

4 Features of Ownership

1. Separate Legal Existence

The key feature of LLC status of Zubair Corporation LLC is that it is regarded to work as separate legal identity. The people working in an LLC have an advantage that they own property and incur the debt while being with a status of separate legal identity Zubair Corporation LLC has the right to buy as well as sell property and they can hire employees as well as retain the respective authorities in order to act defendant over their respective claims.

2. Limited Liability

As indicated by its name the LLC status of Zubair Corporation LLC provides limited liability to the members. The members and managers working in LLC such as Zubair Corporation LLC have the responsibility for their basic actions such as civil wrongs which they are doing or their torts which the member of Zubair Corporation LLC is protected from liability of the committed torts and also to allow the members as well as managers to file against the law suit for handling the freedom to select employees.

3. Flexibility in Taxation

Zubair Corporation LLC is provided with flexibility in the way they are taxed. The taxation of Zubair Corporation LLC is similar to the ones which are functioned like sole proprietorship corporations. This makes Zubair Corporation LLC and the partnerships which have been based on LLCs corporations and also the functioning of single multi-member organization (Acheson et al, 2006).

4. Simplicity in Documentation and Operation

The LLC type of ownership as observed in case of Zubair Corporation LLC offers limited liability and also there is flexible treatment of tax observed in case of Zubair Corporation LLC. This is one of the simplicity catered in terms of documentation and operation handling. This shows that majority of states do not need annual shareholders meeting in order to be the attendant for the filing of meeting minutes and LLC members as in Zubair Corporation LLC unlike other shareholders in corporation generally do not require board of directors so that company is running (Ribstein, 2008).

2.2. Organizational Structure

The organizational structure followed by Zubair Corporation LLC is matrix structure in which the reporting relationships are indicated by a set of grid or matrix and the traditional hierarchy is not used. In simple works, the employees show dual reporting relationships which both are reporting to the functional as well as product manager.

Figure 1: Organization Structure of Zubair Corporation LLC

The above figure shows the organizational structure of Zubair Corporation LLC which states that the marketing, engineering, research, manufacturing and material departments are accountable to the president in Zubair Corporation LLC. This is the type of matrix structure which is implemented in Zubair Corporation LLC.

1. Advantages of Matrix Structure in Zubair Corporation LLC

a) Resource Coordination

The matrix structure in Zubair Corporation LLC has the advantage that it assists supervisors to focus on their respective field of expertise. The functional supervisors in Zubair Corporation LLC are engaged in selecting, training and managing employees which is the advantage of Zubair Corporation LLC to have matrix structure (Campbell, 2009).

b) Specialization

The Zubair Corporation LLC places employees in functional areas which allow them to have experience and expertise in their respective field over handling variety of tasks in Zubair Corporation LLC. This helps staff in Zubair Corporation LLC to excel in their respective field of operations (Sy et al, 2004).

2. Disadvantages of Matrix Structure in Zubair Corporation LLC

a) Internal Complexity

The major disadvantage of Zubair Corporation LLC in following matrix structure is that it causes internal complexity. The employees generally are confused in Zubair Corporation LLC as they do not know about who to supervise and also there are situations when supervisors from several departments have the authority to handle the work concerning with the changes in companies (Hinton et al, 2006). The dual authority and communication in Zubair Corporation LLC is problematic and employees as well as managers feel dissatisfaction in communication which eventually causes low morale to develop among employees and prolonged issues can cause high turnover.

b) Expensive to Maintain and Internal Conflict

The matrix structure in organization like Zubair Corporation LLC is quite expensive to maintain. The overhead costs also increase typically and the double management is quite complex. The extra salaries in organization cause strain in the firm and its resources. The sharing of employees can be a major issue as there is unhealthy competition built between the managers working in the company (Lenaz et al, 2010).

2.3. Environmental Factors Analysis

The environmental factors which have direct impact on Zubair Corporation LLC are the internal and external factors which play major role in influencing the organization.

Internal Factors

a) Employees

The major factor in Zubair Corporation LLC is the strength of employees which has a major influence in checking the business factors. The employees in Zubair Corporation LLC should be motivated and the hard-working employees should stay motivated in order to provide better performance. The productive results in Zubair Corporation LLC can only be obtained if the employees are motivated as less talented workforce always brings negative results. The processes and relationships between Zubair Corporation LLC have to improve effectively in order to have effective relationships and in this regard the high performing team in workplace not only needs talent but efficiency so that they can have better future (Crisp et al, 2009).

The strength of employees in Zubair Corporation LLC is one of the factors which impact the workers. The challenges of the company should be met and handled well and to observe the favourable impact on business which is a weakness for Zubair Corporation LLC.

b) Operations of Zubair Corporation LLC

The operational department which is engaged in administrative procedures and to observe the disorganized or inaccuracies are keeping the record to not be able to manage the workforce. The interruptions in workplace like Zubair Corporation LLC have faulty IT systems and also the evaluation reveals that there is need to overcome the customers' requirements which are unreliable.

c) Innovation

Innovation in Zubair Corporation LLC is one of the major aspects which help to get better performance from the competitors. It is necessary to stay engaged in workplace and study the promotional initiatives which should be part of the marketing plan in order to train the staff and also use for the welfare of employees. Zubair Corporation LLC should embrace the latest technologies in order to observe the progressing change in workplace. The missing aspect of innovation is a serious concern and impacts the successful growth of business as lack of innovation cause Zubair Corporation LLC to restrict and limit the business perspective and being irrelevant in Zubair Corporation LLC (Leidecker et al, 2014).

External Factors

a) Technology

The technology dimension in Zubair Corporation LLC makes use of method which should convert the specific product and resources. The managers in Zubair Corporation LLC need to observe more about the careful technological dimension and investment decision should be accurate for Zubair Corporation LLC. The adaptation of new technologies should have acceptable solution which will cater the needs of employees.

b) Socio-cultural

The customs as well as values in Zubair Corporation LLC have played a major role in influencing the characteristics of society. The organization such as Zubair Corporation LLC is engaged in operating under the general environment. The manager at Zubair Corporation LLC has studied well with the product, services and standards which observe the value and appreciate the changes in business which shows a shift in culture of brand and also the change of necessity products and services in Zubair Corporation LLC (Leidecker et al, 2014).

c) Political-Legal Dimension

The political-legal dimension of government environment in case of Zubair Corporation LLC has major impact on the government law of business. The relationship of Zubair Corporation LLC has huge effect on the overall political as well as the legal situation in Oman. The business laws which have been set in country have also engaged an effective business relationship. The need of Zubair Corporation LLC has been visible for using most suitable approaches in order to handle the work situations and implement a business which offers justice to the staff in Zubair Corporation LLC. The stability is a major factor which impacts not only business but also countries as far as political stability is concerned (Van Tuyckom, 2011).

3.0. Conclusion

This report discusses the organizational structure of Zubair Corporation LLC and the results suggested that there are several factors which have impact on the working style and environment. This shows that business has major impact due to the organizational structure and policies which directly affects the working style. The organizations need to be carefully aware before selecting the organizational structure as the matrix structure has major conflicts and also the workplace influences and brings many changes in workplace. The structure of organization should be flexible which will help in handling the business well and achieve the desired coordination and improve the workplace structure. Zubair Corporation LLC needs to look in its structure of organization in order to effectively handle the business operations and this report enlightens the factors which have impact on the organization structure.


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