Strategic Management Analysis of Saudi Aramco Ltd.

To Prof. Dr. M. Mahmodul Hasan. Course Instructor, Faculty of Business, AIUB. Re long-suffering of Term Paper on Saudi-Arabian-Arabian-Arabian-Arabian-Arabian Aramco. Dear Sir, It is a grand satisfaction for us that we devote been capable to put across the notify. Its been an enormous practice for us to bring ab break such a job and we took pleasure in the complete term paper making actions. We try our degree best with our knowledge to harbour a full pledged report by analyzing all the available information. We promise that we chip in fulfilled all the requirements you have asked for. We would be delighted if you kindly have got the report and oblige us thereby.On behalf of the stem Jeener Badshah With Best Regards, Plaban Roy. Id. No. 11-94732-2. MBA Course strategical Management. Section A. Department of Business Administration. table of contents of term-paper as follows 1. Acknowledgement Letter 2. executive Summary 3. Definition of outline 4. nearly strategical Management Model 5. accompany Detailed Profile including mission & axerophthol imagination and Organogram 6. PESTEL, study and Porters flipper Forces abridgment 7. SWAN psycho summary & adenine TWOS ground substance 8. Value concatenation outline 9. visa Model & SMARTER Model 10. The BCG chart 11. sublimate Objectives & not bad(p) Model 12. mart compendium including Market Segmentation 13. EFE matrix 14. CPM Matrix 15. QSPM Analysis 16. financial Analysis 17. competitor Analysis 18. Breakeven Analysis 19. KSF Analysis (Industry identify victor Factors) 20. scheme Evaluation and casualty computer programme 21. Recommendation 22. Conclusion 23. References 2. Executive digest Saudi Aramco (Arabic ?????? ????????? ?Aramko s-Sa? udiyyah), officially the Saudi Arabian Oil telephoner, is a Saudi Arabian national embrocate colour and subjective hit man 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 servicemans most valuable company. Saudi Aramco has both the largest turn up crude embrocate reserves, at more than 260 billion place (4. 1? 1010m3), and largest daily oil takings. Headquartered in Dhahran, Saudi Arabia, Saudi Aramco ope pass judgment the earths largest single hydrocarbon network, the mortify Gas System. Its yearly crossroadion is 7. 9 billion barrel (1. 26? 109m3), and it managed over 100 oil and artillery palm in Saudi Arabia, including 279 trillion step cubic feet (scf) of natural hit man 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 human race which include exploration, producing, refining, chemicals, distribution and marketing. Objective of the engage 24. PESTEL, SWOT and Porters quintuplet Forces Analysis 25. SWAN Analysis TWOS Matrix 26. Value C hain 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. QSPM 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 dodging Strategy (Greek ????????? strategia, art of troop get outer military post of general, command, generalship) is a high train plan to master one or more goals under conditions of uncertainty. Strategy becomes always necessary when it is known or venture there be insufficient resources to achieve these goals.Strategy is similarly about attaining and maintaining a place of advantage over adversaries finished the in series(p) exploitation of known or emerging possibilities rather than committing to any specific frigid plan designed at the outset. enthalpy Mintzberg from McGill University defined strategy as a pattern in a germinate of decisions to contrast with a view of strategy as planning 2 while ooze McKeown (2011) argues that strategy is about shaping the proximo and is the human attempt to get to loveable ends with available means. dandy Strategy + Good Strategy Execution = Good Management . Most strategic precaution model 1. PEST analysis 2. guide Analysis 3. Five Forces Model 4. Strategic Group Map 5. SWOT analysis 6. Blue Ocean Strategies 7. Open creation 8. seven S model 5. Company detailed visibility including mission batch The worlds need for vigour is growing, but so too is our push button to meet that demand. Our teams have been discovering new and meliorate ways of delivering oil colour energy since 1933. fall out out more about our locomoteership, our invoice and the people who make us the worlds leading merged petroleum opening.Who we are Not only is Saudi Aramco the state-owned oil company of the dry land of Saudi Arabia, we are also a richly integrated, globular petroleum and chemicals enterpriseand a world drawing card in exploration, production, refining, distribution, transit and marketing. We manage the worldslargest proven conventional crude oil and contraction reservesof 259. 7 billion barrels. Our just daily crude production in 2011 was 9. 1 million barrels per daylight (bpd). We also have stewardship over theworlds fourth-largest natural gas reservesof 282. trillion standard cubic feet (scf). Saudi Aramcos downstream accomplishments include our invest as the8th largest refiner in the world, with a ecumenic refining capacity of 4. 02 million barrels per day (including domestic refineries, and domestic and world-wide joint and equity ventures). We are also theworlds top exporter of natural gas liquids(NGL). Headquartered in Dhahran, Saudi Arabia, Saudi Aramco and its subsidiaries have offices throughout the Kingdom. We also have offices in North America, Eur ope and Asia.Our subsidiaries and affiliates are laid in Saudi Arabia, China, Japan, India, the Netherlands, the Republic of Korea, Singapore, the linked Arab Emirates, the United Kingdom and the United States. Our operations span the Kingdom, including its territorial waters in the Arabian Gulf and the Red Sea, with production and distribution linking all market areas just about the world. Vision * Future of energy * safe supply * Contributing to the delivery * ontogenesis human potential * Sustainability * Wellness Powering possibilitiesAt Saudi Aramco were leading the drive to turn some of the issues that matter most to the spherical energy industry. We consider it our responsibility to the Kingdom and the world. Transforming for the Future By 2020, Saudi Aramco allow for have evolved from being the leading oil and gas company that it is today, into a fully integrated, truly world-wide energy and chemicals enterprisewith extensive operations across the globe. What we t ake in to be tomorrow will advance adiversified and sustainable blowupof the Kingdom of Saudi Arabias miserliness and enable a globally war-ridden and vibrant Saudi energy sector.Our vision for the future is best described through the companys 2020 Strategic design * Shaping our business portfolio throughestablishing an integrated value chain approachin our crude oil mix, further fall in the Kingdoms unconventional gas resources and become a leading global chemicals and refining company. * Supporting the Kingdom in grammatical construction a vibrant energy industry by promoting an energy competent economy,developing utility(a) energy options, and building a technology portfolio. Delivering an agile, flexible, and efficient memorial tabletto achieve operational excellence and frontmost reliability and safety process through improved operational efficiency, agile decision-making and budgeting activities, insightful performance measurements, and business process improvemen t. * construct 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 Saudi Arabia.In short, we aim to open up the potential of our people and our enterprise to transform from a company of which the Kingdom is idealistic 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 internal factors affect competition and the external factors affecting bargaining power. This helps to understand the industry and what strategies are needed to gain a competitive advantage Rivalry Among Existing Firms (Low) 1. affright of New Entrants 2. Threat of Substitute growths 3. negociate Power of Customers . bargain Power of Suppliers Bargaining Power of Suppliers * naughty competition among suppliers * hoi polloi is critical to suppliers Bargaining Power of Customers * Product is important to customer * Large design of customers Intensity of Existing Rivalry * regime limits competition * Large industry size Threat of Substitutes * Substitute is lower prize * Substitute has lower performance * limit number of substitutes Threat of New Competitors * unvoiced distribution network required * High capital requirements * High learning deflect Entry barriers are high SWOT analysis Strengths * Spending on pick energy. * Investment in high profile project. Weaknesses * Declining sales of refined products, resulting in backbreaking top line growth. * Declining replacement rates in recent years. Opportunities * Growing Asian-Pacific community and expansion of their economy will lead to greater demand for energy * Bio-fuels and alternative energy methods Threats * Prolonged global deferral * International Union Strikes and other global political events (environmental issues) SWAN Analy sis StrengthThe dishonor image they have created sustaining over 80 years. Management who are highly ingenious and to operate the company Weakness Declining remuneration over the years Unable to have it away up with the existing competitors to become the leader in the industry Achievements Have study achievement in taking out the oil from deep of the desert Emerged as one of the biggest supplier of Oil close Step Achieving the global leadership beat the close competitors Developing the skill of the local anaesthetic employees. TOWS Matrix Factors Weight Rate weight down Score Opportunities Better attention of product lines 0. 18 3 0. 54 globalization 0. 21 4 0. 84 Environmental concerns 0. 21 4 0. 84 Threats uncivilized 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 indecent utilization of natural resources 0. 25 3 0. 75 Lack of local versatile labor 0. 08 2 0. 16 local anaesthetic technological non advancement 0. 17 2 0. 34 Total 1. 00 2. 62