Strategic Management Analysis of Saudi Aramco Ltd.

To Prof. Dr. M. Mahmodul Hasan. Course Instructor, Faculty of Business, AIUB. Re Submission of boundary Paper on Saudi-Arabian Aramco. Dear Sir, It is a grand contentment for us that we get under ones skin been capable to submit the shroud. Its been an enormous employ for us to bring about such a job and we took joy in the whole term paper reservation actions. We tried our peak best with our knowledge to make a full pledged report by analyzing all the available information. We hope that we pick up fulfilled all the requirements you have asked for. We would be delighted if you kindly accept the report and contain us thereby.On behalf of the group Jeener Badshah With Best Regards, Plaban Roy. Id. No. 11-94732-2. MBA Course strategical Management. subdi romance A. Department of Business Administration. Contents of term-paper as follows 1. Acknowledgement Letter 2. executive Summary 3. Definition of Strategy 4. Most Strategic Management sit 5. Comp any Detailed Profile incl uding mission & vision and Organogram 6. PESTEL, prink and ushers Five Forces out line 7. SWAN synopsis & TWOS ground substance 8. jimmy Chain Analysis 9. indorse fabric & SMARTER Model 10. The BCG chart 11.PURE Objectives & with child(p) Model 12. marketplace Analysis including Market Segmentation 13. EFE Matrix 14. CPM Matrix 15. QSPM Analysis 16. fiscal Analysis 17. Competitor Analysis 18. Breakeven Analysis 19. KSF Analysis (Industry Key conquest Factors) 20. Strategy Evaluation and happening Plan 21. good word 22. Conclusion 23. References 2. Executive summary Saudi Aramco (Arabic ?Aramko s-Sa? udiyyah), officially the Saudi Arabian Oil Company, is a Saudi Arabian national crude rock oil and essential gas company based in Dhahran, Saudi Arabia.Saudi Aramcos value has been estimated at up to US$10 trillion in the Financial Times, making it the lands most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at to a greater extent than 260 billion barrel (4. 1? 1010m3), and largest daily oil production. Headquartered in Dhahran, Saudi Arabia, Saudi Aramco leases the worlds largest single hydrocarbon network, the Master Gas System. Its each year production is 7. 9 billion barrels (1. 26? 109m3), and it managed over coke oil and gas fields in Saudi Arabia, including 279 trillion timeworn cubic feet (scf) of intrinsic gas reserves.Saudi Aramco owns the Ghawar Field, the worlds largest oil field, and the Shaybah Field, one 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, dispersal 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 Segmentation 31.EFE Matrix 32. CPM Matrix 33. Q SPM Analysis 34. Financial Analysis 35. Competitor Analysis 36. Breakeven Analysis 37. KSF Analysis (Industry Key Success Factors) 38. Strategy Evaluation and Contingency Plan 39. Strategy Evaluation and Contingency Plan 3. Definition of strategy Strategy (Greek strategia, art of troop attracter office of general, command, generalship) is a highschool level plan to get one or more goals under conditions of uncertainty. Strategy becomes ever demand when it is known or suspected there are insufficient resources to make these goals.Strategy is also about attaining and maintaining a position of advantage over adversaries done the successive exploitation of known or emergent possibilities rather than committing to any specific fixed plan designed at the outset. Henry Mintzberg from McGill University specify strategy as a pattern in a pepper of decisions to contrast with a view of strategy as planning 2 period Max McKeown (2011) argues that strategy is about shaping the future and is the human get to get to desirable ends with available means. goodish Strategy + Good Strategy Execution = Good Management . Most strategic precaution model 1. PEST analysis 2. STEER Analysis 3. Five Forces Model 4. Strategic Group Map 5. SWOT analysis 6. Blue marine Strategies 7. Open innovation 8. seven S model 5. Company detail profile including mission vision The worlds need for goose egg is growing, but so too is our ability to meet that demand. Our teams have been discovering reinvigorated and better ways of delivering petroleum energy since 1933. Find out more about our drawship, our history and the people who make us the worlds leading integrated petroleum enterprise.Who we are Not only is Saudi Aramco the state-owned oil company of the farming of Saudi Arabia, we are also a in full integrated, world(prenominal) petroleum and chemicals enterpriseand a world leader in exploration, production, refining, distribution, shipping and marketing. We manage the worl dslargest proven pompous crude oil and condensate reservesof 259. 7 billion barrels. Our just daily crude production in 2011 was 9. 1 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 oecumenical refining capacity of 4. 02 million barrels per day (including domestic refineries, and domestic and international joint and equity ventures). We are also theworlds brighten exporter of natural gas liquids(NGL). Headquartered in Dhahran, Saudi Arabia, Saudi Aramco and its subsidiaries have offices passim the Kingdom. We also have offices in North America, Europe and Asia.Our subsidiaries and affiliates are determined in Saudi Arabia, China, Japan, India, the Netherlands, the Republic of Korea, Singapore, the join Arab Emirates, the United Kingdom and the United States. Our operation s span the Kingdom, including its territorial waters in the Arabian disconnection and the Red Sea, with production and distribution linking all market areas around the world. peck * Future of energy * Reliable supply * Contributing to the economy * exploitation human potential * Sustainability * Wellness Powering possibilitiesAt Saudi Aramco were leading the wedge to solve some of the issues that matter most to the global energy industry. We make it our responsibility to the Kingdom and the world. Transforming for the Future By 2020, Saudi Aramco willing have evolved from being the leading oil and gas company that it is today, into afully integrated, truly global energy and chemicals enterprisewith extensive operations crossways the globe. What we aim to be tomorrow will facilitate a modify and sustainable working outof the Kingdom of Saudi Arabias economy and change a globally warring and vibrant Saudi energy sector.Our vision for the future is best described by the com panys 2020 Strategic Intent * Shaping our business portfolio throughestablishing an integrated value strand 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,developing alternate(a) energy options, and building a technology portfolio. Delivering an agile, flexible, and efficient organizationto fulfill operational excellence and world-class reliability and safety performance through improved operational efficiency, agile decision-making and budgeting activities, insightful performance measurements, and business exploit improvement. * Building capacity, knowledge, and skills to improve our processes and systems of leadership selection and development, performance evaluation, innovation, and research and development. We will take the lead in developing a knowledge-based economy in Sa udi Arabia.In short, we aim to unlock the potential of our people and our enterprise to transmogrify 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 ingestion to evaluate the interior factors affecting opposition and the external factors affecting dicker power. This helps to understand the industry and what strategies are needed to gain a competitive advantage Rivalry Among Existing Firms (Low) 1. terror of New Entrants 2. Threat of replacement Products 3. Bargaining Power of Customers . Bargaining Power of Suppliers Bargaining Power of Suppliers * lofty competition among suppliers * Volume is critical to suppliers Bargaining Power of Customers * Product is all important(predicate) to customer * Large number of customers Intensity of Existing Rivalry * politics limits competition * Large industry size Threat of Substitutes * Substitute is cut quality * Substitute has lower performance * Limited number of substitutes Threat of New Competitors * Strong distribution network required * High enceinte requirements * High learning curve Entry barriers are high SWOT analysis Strengths * Spending on alternate(a) energy. * Investment in high profile project. Weaknesses * Declining sales of refined products, resulting in lowering top line growth. * Declining replacement rates in recent 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 another(prenominal) global political events (Environmental issues) SWAN Analysis StrengthThe brand sign they have created sustaining over 80 years. Management who are highly deft and to operate the company Weakness Declining profit over the years Unable to compete up with the existing competitors to become the leader in the industry Achievements urinate major achievement in taking out the oil from darksome of the desert Emerged as one of the biggest supplier of Oil Next bar Achieving the global leadership Beating the close competitors Developing the skill of the topical anaesthetic employees. TOWS Matrix Factors Weight Rate Weighted Score Opportunities Better worry 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 Skilled management 0. 13 2 0. 26 Enriched natural resources 0. 15 3 0. 45 Weaknesses Improper drill of natural resources 0. 25 3 0. 75 Lack of local skilled labor 0. 08 2 0. 16 Local technological non advancement 0. 17 2 0. 34 Total 1. 00 2. 62