Essay On Proposed Business Strategy Amid War In Ukraine

Global international firms tend to send more resources in order to identify certain forces, which possess a major influence on the companies (Hamilton and Webster 2018). However, the war between Russia and Ukraine has created an interruption in the supply of resources, which has resulted in the greater need for resilience within the cost of the company. The main purpose of the study is to focus on the scenario of a giant energy company in the UK that has faced a huge reduction in supply followed by the war in Ukraine. In this study, a kind of resource allocation will be suggested for the company along with the application of historical and contemporary theories of organization. The role of human resource management will also be highlighted in achieving the aim of the company.

 

 

The energy sector has been considered to be a big contributor to the UK economy (Energy UK. 2022).  In the energy sector of the UK, the types of organizations include the companies that explore and produce consumable fuels along with the refinement, market storing as well as transport of oil and gas. Most of the giant energy companies in the country tend to follow a hierarchical structure in the organization. The giant UK Company is the organization as an entity, which is having a particular purpose and comprises many people while organizing the whole business process in a cost-effective manner remains the task of the company. Russia's invasion of Ukraine has created a huge range of consequences that have destroyed homes, infrastructure as well as lives (Mbah and Wasum 2022). The organizations within the energy sector of the UK have also been affected as a result of the war in Ukraine. The giant companies within the energy sector of the country have experienced a positive societal impact in the recent past through teaming up with the social enterprises under the social energy projects. However, the war between Russia and Ukraine has affected the sector through a reduction of their supplies.

 

It remains important for the UK giant energy company to remain agile and review the strategic priorities in a more frequent manner. Thus, resource allocation through strategic budgeting remains the ideal approach where the resources are allocated within the light of the chosen strategy. Optimal allocation of resources among the infrastructure within the system level remains vital for resilience enhancement as a result of limited budget (Zhang, Kong and Simonovic 2018). This kind of resource allocation will help the project managers of the giant energy company of the UK to move the resources more periodically from the non-billable towards the strategic work. However, there are certain common challenges within this strategic budgeting in resource allocation that includes lack of modification as per the latest trend in the budget can result in the mismanagement of the resources and thus can lead the energy company to fall behind the competitors in the market.

 

The current trend and debates within the organizational studies are mainly confined to the crisis of fuel as a result of the Ukraine War. The UK has been considered to be a major hit than that of the many major industrial countries as a result of the impact of the Ukraine invasion by Russia. In this scenario, the application of the theories to the organization seems to be vital. Organizational theories tend to provide a comprehensive introduction to organizational processes (Hatch 2018).

 

Figure 1: Principles under Administrative Theory

 

One of the historical organizational theories can be represented with the help of the Administrative theory by Henri Fayol. Fayolism has been considered the theory of management, which helps in the understanding of the role of management within the organization. It was developed by French Management theorist Henri Fayol around the year 1900 (Edwards 2018). He was considered the founder of modern management theories. The theory consists of fourteen principles Division of Work, Authority and Responsibility, Discipline with Unity of Command, Unity of direction, and Subordination are some of the principles. The five functions under this theory highlight the aspect of planning, organizing command, coordination as well as control. Henri Fayol has been considered the father of management.

 

The conventional organizational theory can be explored with the help of contingency theory. Contingency theory has been considered as the organizational theory, which tends to claim that no best way towards organizing a corporation lies in the aspect of leading the company or making decisions. The optimal way mainly depends on the aspect of external and internal situations. Thus, the theory suggests that the strategy of the firm along with its behavioral process and structure tends to depend on the environmental condition (Williams, Ashill and Naumann 2017).

 

In the case of the giant energy company in the UK, within the prevailing circumstances of war, it remains vital for the company to bring the best from the strategy and the employees for running the business more efficiently. Administrative theory by Henri Fayol is applicable to the company in the context of the creation of a good administration within the organization. The principles of the theory are practical as well as spectacular and thus relevant to the energy company in the current context of war. The general administration of an organization possesses the responsibility for ensuring the integration of various activities for the realization of the mission of the firm (Hansen, Mowen and Heitger 2021). Hence, it remains important for the UK energy company to follow the principles of the Administration theory by Henri Fayol for the undertaking of a cost-effective strategy by the leaders and the administration of the company in the context of the war scenario in Ukraine.

 

The application of the contingency theory can be best explained in the context of the energy company in the UK in the aspect of undertaking the decisions based on the external war factors that have been affecting the sale of the company. Thus following this theory, the giant energy company of the UK should choose a low-cost strategy for undertaking business functions in the coming years. The theory tends to presume that the leaders adapt the organization towards fitting within the contextual environment, which limits their freedom of action as a result of the contextual issues (Johannesson 2017).

 

The implementation and application of the theory will help in generating a positive outcome within the organization. As an impact of Fayol's principle, the energy company of the UK can be able to generate the team concept and along with that tends to motivate the employees with the help of fair compensation. On the other hand, contingency theory will also be able to enhance the organizational culture of the energy company in the UK by generating the ability to make decisions by learning from the situations. Contingency theory acts as the moderating effect on the organizational culture (Umrani, Kura and Ahmed 2018).

 

The human resource management department helps an organization deal with the cost-reducing strategy through the provision of regular mentoring and training to the employees. This in turn also helps in the aspect of increasing productivity as well as reducing the turnover of the employees. The undertaking of Green Human Resource Management also helps in attaining the green goal of an organization that is socially desirable and along with that also provides certain additional benefits (Mishra 2017). Thus, the strategy of the human resource management team of the energy company of the UK, which mainly focuses on the prioritization of mentoring and training along with the green strategy, will help the company to take the cost-cutting strategy in the future years.

 

 

The energy company of the UK should use cloud technology the reduction of business costs in the coming years. The spending of a certain amount of money from the budget on the resources like cloud systems will help the giant energy company to get a certain share of the resources over the huge network private as well as a public network of infrastructure. The model of cloud computing helps in the configuration of the computing resources (Rashid and Chaturvedi 2019). It helps in the provision to the users the approach to consuming IT which has been considered to be more flexible, cost-effective as well as resource efficient compared with that of traditional IT.

 

 

Lastly, it can be concluded that the giant energy company of the UK should adopt the strategic budgeting process of resource allocation for the reduction of the cost of the company in the coming years. The two theories like the administration theory by Henri Fayol along with the contingency theory will be more applicable for the energy company to deal with the situation of war. Human resource management through the strategy of green management and training will be able to reduce the cost of the company

 

Edwards, R., 2018. An elaboration of the administrative theory of the 14 principles of management by Henri Fayol. International journal for empirical education and research, 1(1), pp.41-51.

 

 

Energy UK. 2022. Energy Industry. [online] Available at: <https://www.energy-uk.org.uk/energy-industry.html> [Accessed 7 August 2022].

 

 

Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University Press.

 

 

Hansen, D.R., Mowen, M.M. and Heitger, D.L., 2021. Cost management. Cengage Learning.

 

 

Hatch, M.J., 2018. Organization theory: Modern, symbolic, and postmodern perspectives. Oxford university press.

 

 

Johannesson, J., 2017. Russia-Ukraine War Is Not a Simple Riddle. Open Journal of Social Sciences, 5(10), p.139.

 

 

Mbah, R.E. and Wasum, D.F., 2022. Russian-Ukraine 2022 War: A review of the economic impact of Russian-Ukraine crisis on the USA, UK, Canada, and Europe. Advances in Social Sciences Research Journal, 9(3), pp.144-153.

 

 

Mishra, P., 2017. Green human resource management: A framework for sustainable organizational development in an emerging economy. International Journal of Organizational Analysis.

 

 

Rashid, A. and Chaturvedi, A., 2019. Cloud computing characteristics and services: a brief review. International Journal of Computer Sciences and Engineering, 7(2), pp.421-426.

 

 

Umrani, W.A., Kura, K.M. and Ahmed, U., 2018. Corporate entrepreneurship and business performance: The moderating role of organizational culture in selected banks in Pakistan. PSU Research Review.

 

 

Williams, P., Ashill, N. and Naumann, E., 2017. Toward a contingency theory of CRM adoption. Journal of Strategic Marketing, 25(5-6), pp.454-474.

 

 

Zhang, C., Kong, J.J. and Simonovic, S.P., 2018. Restoration resource allocation model for enhancing resilience of interdependent infrastructure systems. Safety science, 102, pp.169-177.