SHC engineering organizational culture

History:

SHC Engineering Group, formerly known as WOG International Co Pte Ltd, commenced business in 1976 which aims to provide quality services to oil, gas and water industries in the region. SHC Engineering Pte Ltd is 68.97% owned by SHC Investments Ltd – a part of See Hoy Chan Group with interests in asset management, financial services, property investments, general insurance, formation technology, facilities management and skills training. This implies that the SHC Engineering is trained not only in managing products but also very well knowledgeable and expert on managing its own financial matters.

Since 1983 the company has been a member of Petroleum Equipment Institute of USA (PEI) whose main activities include the trading of oil and gas, marine products, pharmaceutical products and other similar products. SHC Engineering has been appointed by PEI as an agent, exclusive distributor and stockist by many leading manufacturers of related products from Europe and United States.

Today, the company has a subsidiary known to be as the EPEX Industrial Pte Ltd which takes pride in its expertise in Fuel Storage Terminals and Aviation Fuel Systems. The subsidiary offers a wide range of quality industrial services such as marine replenishment, helicopter refueling systems, piping works for chemical and petroleum industries, design, installation and maintenance of airport fuel storage and of other fuel tanker systems.

SHC Engineering Group Past Culture:

The previous culture SHC Engineering Group is based on price competitiveness. It used to hit the market on lower prices for their services and products to make their product sales even more competitive. The company before is focused on process re-engineering, efficiency in operation and logistics. All of the activities are subject to cut back on operation expense during the dawn of increasing world market shares of China in the same line of products; since the price or value of manufacturing become low and prices went down dramatically.

This triggered the company to refocus its attention and establish a system that will retain the price competitiveness of their products without sacrificing the quality of service they are used to be providing.

SHC Engineering Group Present Culture:

            With the dawn of this price complication due to manufacturing, SHC Engineering Group changed its culture to producing value added solutions. It redirected to producing solutions as a package now products are presented not as a single object but as a solution. Systems where designed and incorporated to create models that will suit today’s market.

Analysis of the Changes:

‘The China Price’ has been the three scariest words in US industry because it means 30% to 50% less than what an average company can possibly make something for in the US. As time goes by, the array of products China is producing and exporting becomes wider; from small towels up to heavy industries products just like the products of SHC Engineering. It is not only SHC that feels the pressure of competition but it is a worldwide challenge for all companies around the globe.

 The cutting-off of expenses from operation will mean lesser production costs and thus a chance to decrease prices. The activities or operations will change according in correspondence to changes in target costs. SHC Engineering targets to become more and more efficient in their operations as they implemented changes in the organizational culture. This means that the way things are done in the company changed: from the lowest level to the highest level position. Although the change might only be implemented at one level, the whole organization is subject to be affected as all departments are interconnected.

SHC Engineering Group’s changes came in the form of the improvement of its people. Research and development efforts were doubled to be a foundation on system solutions for their products. The company tries to expand its horizon from the usual services they are offering to some other possible technologies and products that could be introduced to the market by them.

And aside from making their prices competitive enough to compete with China Prices, the tradition of providing the ‘best solutions’ for the clients has not been taken for granted. In fact, their sales department where trained to think “out of the box” and go beyond selling products to creating solutions for their clients.

From just selling products, SHC Engineering is now focused on providing solutions. This shift in organizational view changes the way the managers direct their employees. The sales people become more sensitive to the needs of their customers and the remaining support become more supportive and attentive to the problems of clients.

From the simple company with vision of only providing oil, gas and water services, SHC Engineering Group now face the challenge majority of the companies around the globe face. The change which happened due to the rising competition can be evaluated as to be helpful in sustaining the company. If we are to compare, the situation SHC Engineering has is better than some because there were instances when some companies can not sustain their operations and can not compete anymore in the market then went bankrupt if not merged or consolidated with other strong and sustaining companies.

Thus it can be concluded that the negative externalities the competition give have been used by SHC Engineering as a challenge. The changes in their organizational culture are made because their earlier traditions can not help them cope up with the dynamic and pressuring competition in the market. The changes may be a shock but they helped them SHC Engineering Group sustain its position in the industry.

References

SHC Engineering. 2009. See Hoy Chan Sdn Berhad Group Company 25 May 2009. <http://www.shce.com.sg/profile.htm>.