Assignment on the Business Environment and Pestle Analysis is Oman Cement Company (OCC)

    The report is providing information related to the OCC company. The Pestle analysis has been applied to the company to check its factors and most of them are showing the importance and more consumption of cement in Oman. In the last report, an integrated entity and the policy are described to resolve the environmental issue.

General description of OCC

            Oman cement company was established in 1978 by Sultan Qaboos bin Said and has also symbolized the drive of Oman in core industries for self-reliance. The company is actively work in Oman. For the infrastructure development, Oman cement company OCC has provided strength to the industry of construction in the country as well as created the resources to achieve self-sufficiency. The products of OCC meet the standards and quality globally as well as also meet the requirements and increase customer satisfaction. By having these strong specifications, the company has been certified with the ISO 9001 quality management system and the ISO 14001 for the environment. The company is effectively manufacturing cement in the country. At the start of the company, the cement plant capacity was 600,000 MTS per annum but the demand was increased with time, and the capacity expanded to 1.2 million tons per annum in 1998. The company had installed a cement grinding mill that has the capacity of grinding almost 3000 MTS per day and the capacity of clinker has increased from 1.2 to 2.4 MTS per annum.

PESTLE Analysis for organization selected

Political Factors of Pestle Analysis is Oman Cement Company (OCC)

            Government policies, rules, and regulations have a very important impact on the performance of the business. Although, Oman is one of the most politically stable and impactful countries in Asia. Furthermore, the strong army and constitutional monarchy system have guaranteed national stability. The strategists have to make effective strategies as well as monitor the political factors that lead to positive outcomes of OCC. Unlimited growing demand for cement was created by a variety of activities and projects in Oman. On the other side, the army is protecting the borders of the country from other unstable neighbors like Yemen. Due to the business nature, the OCC has thrived in spreading business in some years. For the very first time, the Oman government developed the OCC with 100% government to increase the importance of cement industry for development strategy and after introducing the privatization policy, it was reduced by the government holdings to 51% (Badi, 2015).  

Economic Factors of Pestle Analysis is Oman Cement Company (OCC)

            The economic factors are also very important and very influential factors for any company in any country or marketplace. Same like this, some economic factors have an impact on Oman Cement Company. Oman has an average economy with a stable and strong currency in the world. For the building and continuing development strategy even after the international crisis, all countries got the advantage of rising petrol prices. The growing marketing was created by the development of cement that exceeds the company’s products because of the stable economy. According to the annual report of OCC, it was approached by the estimated cement quantities to five million tons for the years of 2009. Furthermore, the results are showing that the demand for cement in Oman exceeds 12000 tons a day due to financial stability. It is also identified that the Oman economy is providing a strong market for OCC to meet the demand of the customers.

Social Factors of Pestle Analysis is Oman Cement Company (OCC)

            The population of Oman also has a big number. The people of Oman are stronger relations. The majority in Oman are young and literate to join to start their business and to hold a job. The increasing graduate's number as well as the fast growing population in Oman joining workforces that have created the businesses. Due to the increasing number of population and the businesses, the demand for workplaces, offices, houses, and shops also increased that attracts the cement industry. As the country is also growing in the world, people also prefer new and attractive infrastructure that attracts people towards business. The society of Oman appreciated new infrastructure. As they are religious people, they also demand cement in a larger amount to build a mosque (Al Badi, 2015).

Technological Factors of Pestle Analysis is Oman Cement Company (OCC)

            The results are also showing that technology has also influenced the cement industry and without the technology, Oman cement company is unable to increase its business. The company has to adapt to manage resources, finances as well as to market its business, needs the technology. The technology is also helping cement industries in communication, managing business and customers, as well as helpful in increasing the demand for cement.

Legal factors of Pestle Analysis is Oman Cement Company (OCC)

According to rules of the ministry of finance and commerce are operated by cement factories working in Oman. Oman Cement Company (OCC) registered in MSM (Muscat Security Market) that is influential in the cement pricing. No company can set the set price without the permission of MSM. So, they all have to follow legal rules.

Environmental factor of Pestle Analysis is Oman Cement Company (OCC)

            As the environment of Oman is very attractive and the people like to have new buildings and construction to make the country more attractive, the demand for the company has increased.

Integrated entity of Pestle Analysis is Oman Cement Company (OCC)

            Mostly retail investors form the general public holds the 50 percent stake in Oman cement company substantially. To power important decisions like executive compensation, board composition, and dividend payout ratio, the ownership level provides the power to retail investors.

Policy to solve natural environmental issues

            The resolve the issue with the environment, the company needs to open another plant far from the public area and the people working there should also have to follow the precautionary measures such as wearing glasses and masks. Furthermore, the company should use “green materials” that have low energy coast, and low maintenance but high durability.

Conclusion of Pestle Analysis is Oman Cement Company (OCC)

            It is concluded that the company is actively work in Oman. The company has been certified with the ISO 9001 quality management system and the ISO 14001 for the environment. The company had installed a cement grinding mill that has the capacity of grinding almost 3000 MTS Per day and the capacity of clinker has increased from 1.2 to 2.4 MTS per annum. The Oman government developed the OCC with 100% government to increase the importance of cement industry for development strategy and after introducing the privatization policy, it was reduced by the government holdings to 51%. Other factors are also discussed and in the last of the report, high policy and integrated entity are discussed.

References of Pestle Analysis is Oman Cement Company (OCC)

Al Badi, K. S. (2015). Marketing strategy module. A case study of Oman Cement Company. Int. J. Econ. Commer. Manag, 1-14.

Badi, K. S. (2015). MARKETING STRATEGY MODULE A CASE STUDY OF OMAN CEMENT COMPANY. International Journal of Economics, Commerce and Management.