Strategic Management Analysis of Saudi Aramco Ltd.

To Prof. Dr. M. Mahmodul Hasan. Course Instructor, Faculty of Business, AIUB. Re Submission of precondition Paper on Saudi-Arabian-Arabian Aramco. Dear Sir, It is a grand contentment for us that we agree been able to submit the delineate. Its been an enormous practice for us to bring ab come in such a pedigree and we took pleasure in the whole term paper making actions. We tried our degree best with our acquaintance to make a full pledged report by analyzing all the available information. We hope that we discombobulate fulfilled all the requirements you have asked for. We would be gratify if you kindly accept the report and oblige us thereby.On behalf of the group Jeener Badshah With Best Regards, Plaban Roy. Id. No. 11-94732-2. MBA Course strategic Management. Section A. Department of Business Administration. Contents of term-paper as follows 1. Acknowledgement Letter 2. Executive Summary 3. translation of dodging 4. Most Strategic Management vex 5. club Detailed Profil e including mission & peck and Organogram 6. PESTEL, SWOT and Porters flipper Forces synopsis 7. throw up analysis & TWOS hyaloplasm 8. economic value mountain range outline 9. ViSA standard & SMARTER Model 10. The BCG chart 11.PURE intents & GREAT Model 12. merchandise depth psychology including foodstuff Segmentation 13. EFE Matrix 14. CPM Matrix 15. QSPM Analysis 16. m peerlesstary Analysis 17. Competitor Analysis 18. Breakeven Analysis 19. KSF Analysis (Industry Key Success Factors) 20. outline valuation and adventure Plan 21. Recommendation 22. Conclusion 23. References 2. Executive summary Saudi Aramco (Arabic ?Aramko s-Sa? udiyyah), officially the Saudi Arabian fossil oil colour Company, is a Saudi Arabian national oil and inherent tout gild based in Dhahran, Saudi Arabia.Saudi Aramcos value has been estimated at up to US$10 trillion in the Financial Times, making it the humans most valuable company. Saudi Aramco has both the largest be crude oil m ilitia, at more than 260 meg place (4. 1? 1010m3), and largest perfunctory oil production. Headquartered in Dhahran, Saudi Arabia, Saudi Aramco operates the earths largest single hydrocarbon network, the Master louse up System. Its yearly production is 7. 9 billion barrels (1. 26? 109m3), and it managed everyplace 100 oil and gas fields in Saudi Arabia, including 279 trillion streamer cubic feet (scf) of natural gas reserves.Saudi Aramco owns the Ghawar Field, the worlds largest oil field, and the Shaybah Field, maven of the worlds largest oil fields. Operations Saudi Aramco is headquartered in Dhahran and its operations span the globe which include exploration, producing, refining, chemicals, distribution and marketing. Objective of the study 24. PESTEL, SWOT and Porters Five Forces Analysis 25. SWAN Analysis TWOS Matrix 26. Value Chain Analysis 27. ViSA Model SMARTER Model 28. The BCG chart 29. PURE Objectives GREAT Model 30. Market Analysis including Market Segmentatio n 31.EFE Matrix 32. CPM Matrix 33. QSPM Analysis 34. Financial Analysis 35. Competitor Analysis 36. Breakeven Analysis 37. KSF Analysis (Industry Key Success Factors) 38. dodge Evaluation and Contingency Plan 39. Strategy Evaluation and Contingency Plan 3. Definition of strategy Strategy (Greek strategia, art of troop draw office of general, command, generalcy) is a high level plan to get through one or more goals under conditions of uncertainty. Strategy becomes ever necessary when it is known or pretend there ar insufficient resources to achieve these goals.Strategy is likewise about attaining and maintaining a position of advantage all over adversaries through the successive exploitation of known or emergent possibilities rather than committing to any specific immovable plan designed at the outset. Henry Mintzberg from McGill University delimitate strategy as a pattern in a stream of decisions to contrast with a slew of strategy as planning 2 while grievous bodil y harm McKeown (2011) argues that strategy is about shaping the rising and is the benevolent attempt to get to desirable ends with available heart and soul. Good Strategy + Good Strategy action = Good Management . Most strategic focusing model 1. PEST analysis 2. STEER Analysis 3. Five Forces Model 4. Strategic Group role 5. SWOT analysis 6. Blue Ocean Strategies 7. diffuse innovation 8. seven S model 5. Company detailed visibility including mission vision The worlds need for power is growing, but so too is our ability to meet that demand. Our teams have been discovering naked and better ways of delivering petroleum energy since 1933. assure out more about our leading, our history and the population who make us the worlds jumper cable integrated petroleum enterprise.Who we are Not yet is Saudi Aramco the state-owned oil company of the earth of Saudi Arabia, we are also a fully integrated, world-wide petroleum and chemicals enterpriseand a world leader in exploration , production, refining, distribution, shipping and marketing. We manage the worldslargest proven conventional crude oil and capsule reservesof 259. 7 billion barrels. Our average daily crude production in 2011 was 9. 1 one million million million barrels per day (bpd). We also have stewardship over theworlds fourth-largest natural gas reservesof 282. trillion standard cubic feet (scf). Saudi Aramcos downstream accomplishments include our rank as the8th largest refiner in the world, with a worldwide refining capacity of 4. 02 million barrels per day (including domestic refineries, and domestic and planetary joint and equity ventures). We are also theworlds straighten out exporter of natural gas liquids(NGL). Headquartered in Dhahran, Saudi Arabia, Saudi Aramco and its subsidiaries have offices throughout the res publica. We also have offices in North America, Europe and Asia.Our subsidiaries and affiliates are set(p) in Saudi Arabia, China, Japan, India, the Netherlands, the Re public of Korea, Singapore, the coupled Arab Emirates, the United Kingdom and the United States. Our operations span the Kingdom, including its territorial reserve waters in the Arabian Gulf and the release Sea, with production and distribution linking all market areas nearly the world. Vision * afterlife of energy * Reliable emerge * Contributing to the deliverance * Developing human authority * Sustainability * Wellness indicatoring possibilitiesAt Saudi Aramco were leading the develop to solve some of the issues that matter most to the world(prenominal) energy industry. We consider it our responsibility to the Kingdom and the world. Transforming for the Future By 2020, Saudi Aramco result have evolved from existence the leading oil and gas company that it is today, into afully integrated, truly worldwide energy and chemicals enterprisewith extensive operations across the globe. What we aim to be tomorrow will facilitate adiversify and sustainable expansionof the Kin gdom of Saudi Arabias economy and enable a globally belligerent and vibrant Saudi energy sector.Our vision for the future is best described through the companys 2020 Strategic Intent * Shaping our business portfolio throughestablishing an integrated value chain approachin our crude oil mix, further develop the Kingdoms unconventional gas resources and become a leading global chemicals and refining company. * Supporting the Kingdom in building a vibrant energy industry by promoting an energy efficient economy, development election energy options, and building a engineering science portfolio. Delivering an agile, flexible, and efficient organizationto achieve operational morality and world-class reliability and safety consummation through improved operational efficiency, agile decision-making and budgeting activities, insightful surgical process measurements, and business process improvement. * Building capacity, knowledge, and learnings to improve our processes and systems of leadership selection and development, performance evaluation, innovation, and research and development. We will find the lead in developing a knowledge-based economy in Saudi Arabia.In short, we aim to unlock the likely of our people and our enterprise to transform from a company of which the Kingdom is proud into a company of which the world is proud. 6. Five Forces Model The five forces model is a framework that analysts use to evaluate the interior factors affecting disputation and the external factors affecting bargaining power. This helps to figure the industry and what strategies are needed to gain a competitive advantage Rivalry Among Existing Firms (Low) 1. little terror of New Entrants 2. Threat of replacement Products 3. Bargaining actor of Customers . Bargaining Power of Suppliers Bargaining Power of Suppliers * amply competition among suppliers * Volume is critical to suppliers Bargaining Power of Customers * Product is important to customer * Large fun ction of customers Intensity of Existing Rivalry * Government limits competition * Large industry size Threat of Substitutes * Substitute is lower quality * Substitute has lower performance * Limited number of substitutes Threat of New Competitors * punishing distribution network required * High bang-up requirements * High learning curve Entry barriers are high SWOT analysis Strengths * Spending on alternative energy. * Investment in high profile project. Weaknesses * Declining sales of refined products, resulting in lowering top line growth. * Declining replacement rates in modern years. Opportunities * Growing Asian-Pacific population and expansion of their economy will lead to greater demand for energy * Bio-fuels and alternative energy methods Threats * Prolonged global recession * international Union Strikes and other global political events (Environmental issues) SWAN Analysis StrengthThe vane image they have created sustaining over 80 years. Management who are highly clever and to operate the company Weakness Declining profit over the years Unable to cope up with the lively competitors to become the leader in the industry Achievements select major achievement in taking out the oil from deep of the desert Emerged as one of the biggest supplier of Oil Next Step Achieving the global leadership Beating the close competitors Developing the skill of the local employees. TOWS Matrix Factors Weight Rate dull Score Opportunities Better management of product lines 0. 18 3 0. 54 Globalization 0. 21 4 0. 84 Environmental concerns 0. 21 4 0. 84 Threats Fierce competition 0. 2 3 0. 6 War and terrorist attack impact 0. 2 3 0. 6 Total 1. 00 3. 42 Strength The brand image 0. 22 3 0. 66 deft management 0. 13 2 0. 26 Enriched natural resources 0. 15 3 0. 45 Weaknesses Improper purpose of natural resources 0. 25 3 0. 75 inadequacy of local skilled labor 0. 08 2 0. 16 Local technological non advancement 0. 17 2 0. 34 Total 1 . 00 2. 62