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A Report

on
ORGANIZATION STUDY
at

Arabian Industries L.L.C


Sultanate of Oman

Submitted by
R.Sasikumar

Course code : 308


Register No: 32118
Enrollment No: 08008PF103

Under the Guidance of


Prof. N. Aravindakshan

Submitted in partial fulfillment of the requirement


for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

of
M.G.University
Kottayam – Kerala

February – 2010
Department of Management Studies
Polyglot Institute - Sultanate of Oman.
EXECUTIVE SUMMARY

The MBA course offered by the M.G. University, Kerala, has its own unique syllabus which
requires its MBA students to undertake an internship with any of the leading business houses for a
period ranging from 4 weeks to 6 weeks during the Third semester. For the purpose of acquiring
practical knowledge of the working and functioning of a company, M.G. University has
incorporated an in plant training into its Business Management schedule. This in plant training
shows us how the different departments in an organization work and wins as a single unit.

“Arabian Industries LLC” an Oman’s prestigious Engineering and Manufacturing Company; is a


well established engineering company. It is an Omani company which always maintained the
highest international standards of excellence through quality, technology and innovation. It has
the ability to provide the best in engineering and back up services for the petroleum and allied
industries. The company has ISO 9001-2000 certification and has executed projects in various
Middle East countries. It captured the various facets of the Oman economy in sectors ranging
from maintenance, manufacturing, fabrication and infrastructure, etc.

If we say some thing about technology; Technology is advancing rapidly and as with the rest of
society, this has had a major impact on people in different ways. Today’s world need, is a
corporate world and it requires a lot of management activities to achieve success, for this purpose
in this competing corporate world of multinationals and industries , industrial revolution has
brought with it group production and group consumption activities and also it has brought in a lot
of corporations competing for preferences and success in the business world, it may be a
Construction industry, manufacturing industry or any other type of industry experience and
specialization, have become a must to compete with others become very much essential for all the
companies.

Training and learning in a class room will make an individual knowledgeable in theory of the
various functions of a company. But a person comes out from class room and visits various
industries, in this situation he can learn more from them. In such a situation real experience in the
practical functioning and operations of a company can be of very much use to the students of
management studies.
AILLC/ADM/00101-2009 25th December 2009

CERTIFICATE

This is to certify that Mr.Sasikumar.R. Register No.-32118 a IIIrd semester MBA student
of M.G.University - Kerala, has visited our Organization and conducted a study in it’s
Organizational Structure and he has successfully completed his Project works, during the
period from November 2009 to December 2009.

We wish all the best in his future endeavors.

Thanks with Regards,


Yours faithfully,

MaheshNair,
Finance Manager
Arabian Industries LLC.
CERTIFICATE

This is to certify that this report on “Organization study at Arabian Industries LLC”. is a
bonafide study of R.Sasikumar, an MBA student of M.G.University, Kottayam, Kerala.

Centre Co-Ordinator:

Dr.K.Vijaya kumar Prof. N. Aravindakshan


Polyglot Institute Dept. of Management
Muscat, Sultanate of Oman Polyglot Institute
. Muscat, Sultanate of Oman

Place: Muscat, Sultanate of Oman


Date: 25th December 2009
DECLARATION

I, Sasikumar R. an MBA student of M.G.University, Kerala do hereby declare that this


report on “Organization study at Arabian Industries LLC, under the guidance of Prof.
N.Aravindakshan, Professor of Finance and Accounting, Department of Management
Studies, Polyglot Institute, in partial fulfillment of the requirements for the award of the
degree of “Master of Business Administration” is a bonafide study I have done in the
organization. I also declare that this report has not been previously formed for the award
of any Degree, Diploma, Associate ship, Fellowship or any other similar title of this or
any other university or institution.

Place: Muscat, Sultanate of Oman.


Date: 25th December 2009.

Counter signed:

Prof. N.Aravindakshan,
Dept. of Management Studies,
Polyglot Institute,
Muscat, Sultanate of Oman.
ACKNOWLEDGEMENT
I would like to acknowledge my sincere gratitude to:

Prof. N.Aravindakshan: (Former Co-Ordinator, Institute of Management in Kerala, University


of Kerala, Kollam Centre:)
Prof. N Aravindakshan, guided me with his valuable suggestion. He was a source of inspiration
for me to complete the study and make this report on time and was instrumental in shaping this
report.

Dr.K Vijaya Kumar.(Centre Co-ordinator)

I am highly indebted to the centre co-ordinator Dr.. K.Vijaya Kumar, Department of


Management Studies for inspiring me and for his valuable guidance and assistance provided.

Mrs. Sindhu Divakaran


Mrs.Sindhu Divakaran, Faculty of Management Studies, Polyglot Institute, has also guided me
with her valuable suggestions and advice for making this report a good success.

Mr.P.O. Jabir - Operation Manager-Polyglot Institute, Sultanate of Oma,


I take this opportunity to express my sincere and whole hearted thanks to Mr.P.O.Jabir, Operation
Manager, and all the staff members of Polyglot Institute, Sultanate of Oman., for their tremendous
help and support during the period of my project study.

Mr. Mahesh Nair


I express my sincere gratitude to Mr.Mahesh Nair-Manager Finance-Arabian Industries LLC, for
the valuable advice and guidance extended to me for the completion and shaping of the
dissertation.

Mr.Abdulkhadar Padiyath,
I wish to extend my sincere thanks to Mr.Abdulkhader Padiyath (Manager Finance -(Assistant),
for His help and support in shaping this report.

I also extend my sincere gratitude to all employees of Arabian Industries LLC, for their kind co-
operation and support for the completion of this report.
TABLE OF CONTENTS

1. Executive Summary
2. Certificate from organization
3. Certificate from Guide
4. Declaration
5. Acknowledgement
6. List of figures, tables and chart

Chapter No: Page No.


1. Introduction 1
2. An Overview of Oman Economy and Petroleum Scenario 5
3. Arabian Industries LLC : A Profile 8

a) Subsidiary Companies and Joint Venture 11

b) Product, Capabilities and Service Listings 13

c) Equipments, Plant and Machinery 17

d) Major Projects 18

e) Major Products 21

f) Quality Policy Mission and Vision 24

g) Corporate Social Responsibility 28

4 Functional Departments. 31

a) Finance department 32

b) Purchase Department 40

c) Marketing department 43

d) Human Resources Department 45

e) Functional interdependence of departments (Swot) 49

5 SWOT Analysis 51
6 Findings-Suggestions and Conclusions. 54

BIBLIOGRAPHY
LIST OF DIAGRAMS, CHART, TABLES, AND FIGURES.

Chart No. Particulars Page

1. Chart and Table of Oil and Natural Gas Reserves.

2. Organizational chart of Arabian Industries LLC.

3. Monthly Sales for January to December 2009.

10

4. Chart and Table of Man Power Strength.

18

5. Corporate Goal 27

6. Wheel of Success 30

7. Organizational chart of Finance Department.

32

8. Organizational chart of Purchasing Department

42

9. Organizational chart of Marketing Department

43

10. Organizational chart of HR department

46

11. process of HR department

46

12. Functional Interdependence of department

50
13. SWOT Analysis matrix

52

BIBLIOGRAPHY

BOOKS

Agarwal P.K. - Marketing Management

(2008) - Pragathy Publications, Meerut.

2 Dr. Prasad L.M. - Organisational Behaviour

(2008) – Sultanchand and Sons, New Delhi.

3 Sachdeva S. - Operation Management

(2008) – Lakshmi Narain Agarwal – Agra.

4 Aquinals P.G. - Human Resource Management

(2008) - Vikas Publishers – Noida – UP.

5 Khan M.Y. Jain P.K. – Financial Management

(2008) – Tata Mc Graw Hill Publishers – New Delhi


4 Potti L.R. – Research Methodology

(2008) – Yamuna Publishers – Thiruvananthapuram.

REPORTS AND JOURNALS REFERRED

• Reports on “Organisational Study at Special Technical Services”.

• Statistical Year Book - 2009 – Ministry of National Economy –Sultanate of Oman.

• Main Economic and Social Indicators – 2009 - Ministry of National Economy – Sultanate

of Oman.

Abbreviations

AI LLC - Arabian Industries LLC


AITS LLC - Arabian Industries Technical Support LLC
AIM LLC - Arabian Industries Manufacturing LLc
AIP LLC - Arabian Industries Project LLC
LLC - Liability Limited Company
ISO - International Standard Organization
EPC - Engineering, Procurement and Construction
SWOT - Strength, Weakness, Opportunity and Threat
PDO - Petroleum Development Oman
GDP - Gross Domestic Product
HRM - Human Resources Management
QAQC - Quality Assurance and Quality Control
ASME - American Society of Mechanical Engineers
API - American Petroleum Institute
WPAI-JV - Worley Parson Arabian Industries - Joint Venture
CNC - Computed Numerically Controlled
DSS - Decision Support System
PWHT - Post-Weld Heat Treatment
AP - Accounts Payable
AR - Accounts Receivable
GRN - Goods Receipt Note
ARN - Asset Receipt Note
ERP - Enterprise Resource Planning
JCR - Job Completion Report
HSBC - Hong Kong and Shanghai Banking Corporation
MD - Managing Director
COO - Chief Operating Officer
BUH - Business Unit Head