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Overview of Sohar Aluminum. Business Essay Example.

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Sewanee University of the South
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Sohar Aluminium is a company located in Oman and was established in September 2004. The reason for its formed to carry out landmark Greenfield aluminum smelter project (Al-Masoudi, 2008). The organization is located at Sohar Industrial Estate, Sohar Sultanate of Oman. The company's vision and mission entail passion for excellence and always strives to be the best in the industry. It has the aim of bringing wealth, prosperity and growth to the region by the achievement of excellence and ownership. It also has the objective of attaining the position of becoming a global leader in the energy sector. The company's strategy entails the promotion and support of the development of a robust downstream aluminum industry (Anon 2017). This is to ensure the increment of the production of Aluminum to the economy in addition to the creation of more employment and investment opportunities.

Organization's Purpose

The purpose has become a trending topic in today's business environment. In planning for an organization or organizational change, some factors come to play. One of the factors that are difficult to define and more challenging to communicate is the organization purpose. The purpose usually emphasizes on the deep root behavior (Alexander, 2015). The purpose of an organization does not answer the question concerning "What the business does?" which deals with products, services, and the clientele but instead answers the question "why is the work by an organization important?" In addition to a business making profit, the existence of a business should be to make a difference. The purpose developed and made broad in scope for easy adaptability over time due to the dynamism of the business environment (McFarlane, 2013). The purpose should be developed before anything else since it is central and enduring to the organizational culture. It also defines the organization's contribution to the society. Additionally, it unites the efforts in an organization and inspires action.

Business Ethics

In its production, Sohar Aluminum should ensure efficiency following the appropriate standards. This governed by business ethics. Business ethics entails the evaluation of necessary policies and practices concerning various issues such as health and safety and corporate social responsibility among others (Khan and Mamari, 2016). Sohar Aluminum has a responsibility to all its stakeholders. Using theories of business ethics, there are ways in which the company is expected to operate. Various ethical theories can be utilized in analyzing various business situations and directing how they should act (McNamara, n.d.). The utilitarianism theory is usually considered a consequential ethics theory. It is often concerned with the outcome of an action (Norman, 2016). Using this theory, the company can aim at the maximization of the greatest good for the most number of individuals through the assessment of the implications on stakeholders affected by its action in the short and long term (Khan and Mamari, 2016). There is also the Kantian deontology theory which makes a judgment on how ethical act is and not the product. Using this theory, the company can ensure their operations are universal-sable, they must respect rational beings and also respect the autonomy of rational beings (Sadler, 2011).

Bowman's Strategic Clock Position

This model entails the exploration of the options for an organization's strategic positioning. That is how a production ought to be positioned to achieve a competitive position in the market (Francis, 2017). Its purpose is the illustration of various options of how products can be position using the dimension of price and perceived value.

Figure 1. Bowmans Strategy Clock (Francis, 2017).

The strategy applied by Sohar Aluminum utilizes differentiation strategy in the provision of the highest level of perceived added value to the customers. The company has a strong brand that is essential in collaboration to the utilization of high technology to efficiently provide high-quality products. In the sector, Sohar Aluminum provides high-quality products and differentiation is used in the creation of value and enhancement of customer loyalty.

Sohar Aluminum Strategic Recommendations

Frameworks Critical analyses Strategic recommendation

Strengths Presence of highly advanced technology

Growth in the domestic market

High growth rate of the company Ensure continuity in the provision of high-quality products and services

Opportunities Growth in the economy hence more investment opportunities

New acquisitions

Emergence of global markets Invest in the emerging markets

Weaknesses Uncertainty in future productivity

Rapid changes in technology

High investment requirements

Ensure a proper organizations purpose for better adaptations to changes in the market.

Threats Price variations

Changes in tax rates

Technological issues Ensure implementation of latest technologies to ensure enhanced efficiency.


Sohar Aluminum is the first organization of its kind to be established in Oman. The organizational purpose helps ensuring the company has direction and appropriately contributes to the community. Additionally, the company has a responsibility to its stakeholders. This has been explained through utilitarianism and Kantian deontology theory. It was also possible to analyze Sohar Aluminium differentiation strategy using Bowman's strategy clock position.



Alexander, A. (2015). The Power of Purpose: How Organizations are Making Work More Meaningful: School of Education & Social Policy: Northwestern University. [Online] Available at: [Accessed 14 Dec. 2017].

Al-Masoudi, S. (2008). Sohar Aluminum. [Online] Available at: [Accessed 14 Dec. 2017].

Anon, (2017). Sohar Aluminium. [Online] Available at: [Accessed 14 Dec. 2017]. (2017). Sohar Aluminium | Business Excellence Magazine. [Online] Available at: [Accessed 14 Dec. 2017].

Francis, A. (2017). Bowmans Strategy Clock. [Online] MBA Knowledge Base. Available at: [Accessed 14 Dec. 2017].

Khan, F. and Mamari, A. (2016). Corporate Social Responsibility (CSR) Activities of Selected Companies at Sohar Port, Oman. [Online] Available at: [Accessed 14 Dec. 2017].

McFarlane, A. (2013). Defining your organizations purpose: The importance of Vision, Mission and Values | carmicheal centre KnowledgeNET. [Online] Available at: [Accessed 14 Dec. 2017].

McNamara, C. (n.d.). Business Ethics and Social Responsibility. [Online] Available at: [Accessed 14 Dec. 2017].

Norman, W. (2016). Business Ethics. [Online] Available at:,%20Business%20Ethics,%20IntEncycEthics.pdf [Accessed 14 Dec. 2017].

Sadler, G. (2011). Five Ethical Theories: Bare Bones for Business Educators. [Online] Available at: [Accessed 14 Dec. 2017].


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