"Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations".( Johnson and Scholes)
Business strategy:-
Saudi Armco is continually look for and generate opportunities for a more successful, cleaner, and more motivated world. Guided by our strategic intent, we have begun on a determined corporate transformation, our overall vision for Saudi aramco. These developments will not only ensure the saudi aramco remains a global leader in crude oil and production and experts ,but will also drive into the top-tier of chemicals companies world-wide reaffirm
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To entry in this industry, there will be a long term planning and time consuming procedure like exploring oil fields, setting up the production / plant and disturbing channels etc. which required a huge investment and a great support from government. For SATORP, the entry threat is low in market because it has required capital and support from government.
THREAT OF SUBSITUTES; very low
The alternatives source of oil and gas for energy are nuclear energy, hydrogen, coal, bio fuel, solar and wind energy. These alternatives source cannot be utilized or considered the exact substitute or petro
BARGIN POWER OF SUPLIER; low
SATORP do not have to face any problem when it comes to supplier because SAUDI ARMACO is its own supplier. Saudi Aramco explores and drills out its own oil. There for, there are no issues related to the supplier power.
BAGIN POWER OF COTUMER; low
If we talked about the domestic market of Saudi Arabia, it is backed by the Saudi government so, as Saudi Armco, it can hold over the market and the buyers both, Saudi Armco is the member of organization of petroleum exporting countries(OPEC), Which controls the prices and production of oil globally. Thus, the power of buyer is low in this
...Middle East continues to play a major factor in fluctuating fuel prices which directly impact the cost of doing business. “Throughput” should be based on the customer’s demand in the order fulfillment process with an overarching focus on quality (SCM, 2014).
Alternative energy is the world’s race as of now. As the space race concluded and the nuclear arms race died down, alternative energy became the race of the ages. In today’s society, with today’s technology there are all sorts of forms of alternative energies. These energies include hydro power, geothermal, biomass, nuclear power, and so much more. With all of these variations of alternative energy the question now becomes, which form is the best to use? Are any of them safe? Which ones would effectively solve the world’s depleting energy crisis? Of course, the country that is able to produce clean efficient energy; that country would become the new world power virtually overnight. With today’s technology, should we resort to food/corn as our primary source of energy?
The goal of this report is to see how Chevron compares to its peer group and highlight areas of improvement. Within the next six months, our goal is to increase sales, improve operational efficiency, protect and grow market share and have customer retention. As we remain optimistic that the economy will improve, we are also optimistic that there will be growth in every ...
Since its discovery back in the year 1858 crude oil has been become one of the most sought after resources on the face of the planet. It is due to this fact that the oil industry has fallen into a rather odd category in the case of globalization and seeking out new markets, new labor and new customers. The reason being that the need for crude oil and fuel is always present therefore the product of oil in its basic sense sells itself and the companies do not have to go out and publicly advertise it in the sense that clothing lines and other commodities do. Oil companies must focus more on the matter of why an individual should buy their oil and along with other alternative fuels over their competitors even though in the end the companies products are the same thing. The company ExxonMobil has been the superior company in the oil industry for quite sometime now, and had plenty of success as individual companies before their merger in 1999. The reason for there success is partially due to the power they wield as the most successful company, leading to many new refineries around the world, making deals with smaller companies to gain access to new markets and are leading the world in alternative fuel research. However these things all come naturally to the biggest oil company in the industry, the real question is how they became the powerhouse they are now. That question can be answered by the way in which the company has not focused in globalizing their product of fuel and oil, but globalizing the image of the company company. This is achieved by focusing on charity in which they donate hundreds of millions of dollars, Foreign Direct Investment in areas in which they wish to expand by attempting to provide these impoverished areas wit...
As part of its vertical integration, ExxonMobil has many retail operations worldwide. Consequently, it can sell a large volume of products in growing and developed markets across continents, hence maintain high levels of profits. The institution has expanded its sales by venturing into new regions globally (Dravenstott & Chieffe, 2011). Moreover, with the growing economy and demand for energy, it has enhanced the efforts to ensure that the needs of the world are
OPEC is an unstable cartel representing the same interest of the major players in the oil exporting nations. It had its time when it has been effective in raising up the price of oil allowing the member nations to obtain a significant amount of premium collected on behalf of their sovereigns for the cartel and to their loyalty. The essay summarizes a cause and effect that focuses on 2 sets of connection; the first is focused of OPEC’s lack of efficiency or formal mechanism of scoping the conflicts along with its members which result in consequences that affect the oil depended industry as the transportation industry, or the aviation companies making them highly vulnerable. Second set focuses on the results of the OPEC’s mismanagements and concerns for their finite oil reserves, which in the other hand triggers new market for new developments in discovering alternatives to oil.
Crude oil is a strategic product, in the sense that it is a most necessary fuel for all industries of nations in the world. While crude oil is a most strategy input for productions, transportations, and national defends, whoever have control over this source of energy will dominate over other countries, so in addition to supply and demand factors that affect the price, consumers must pay attention to the producers and export countries that can use this product as a weapon. Such as during and after the 1973 Arab-Israeli War, the oil giant Saudi Arab, members of the Organization of Petroleum Exporting Countries (OPEC) imposed an oil embargo against the United States and other Western European countries, which including the Netherlands, Portugal,
The first oil drilled there in Saudi Arabia was in 1938 by the engineer Tom Barger. Saudi became the large...
Wit, BD & Meyer, R 2010, Strategy: process, content, context : an international perspective, Cengage Learning EMEA, London.
In this report, the risks faced by energy companies will be studied. More specifically, this report will focus on the world's largest publicly traded international oil and gas company: ExxonMobil.
Numerous definitions of strategy exist, in most circumstances strategy can loosely be explained as an overall plan of deployment of resources to ascertain a favourable position within a market (Zablah, Bellenger and Johnston 2004; Grant 1994, p 14). Further, imbedded in many successful organisations are strategies, the importance of which is to remain relevant in the market, and successful in the various attributes of business; profiteering, employee motivation, maintaining sustainable core competencies, effectiveness in operation, or efficiency in the conduction of operations. Therefore challenges involved in the formulation and implementation of a strategy can revolve around the overall external market, as well as internal
Saudi arabia's petroleum monopoly is very much its' government's major interest. The kingdom earned over $80 billion in revenue from oil in 2000.(economist.com 2003) OPEC's ability to influence the market price is the key of its power. Compared to a competitive firm, the demand curve for a monopoly is a horizontal one as it can set any quantity it wants for a given price. The demand curve slopes downwards...
Strategy management can be characterized as "the precise investigation of the elements connected with clients and contenders (the outside environment) and the association itself (the inner environment) to give the premise to keeping up ideal administration rehearses. The goal of vital administration is to accomplish better arrangement of corporate strategies and key needs".
Saudi Arabia’s capital market is considered to be young compared to other financial markets in the region. Saudi financial markets have been developing slowly because most enterprises in the country are either government owned or family-owned, most of which was funded through state budget, and as a result reduced the need for financing. In the recent past, Saudi Arabia has focused on a careful measurement for structural developments and regulatory changes. However, different phases of historical development of the capital market which can be classified into three phases; pre-industrialization phase, post industrialization phase and growth phase that sparked changes and shaped the kingdom 's capital market on
From their extensive oil reserves, the Saudi Arabian government was able to gain economic power in the form of pur...