Study of the Saudi Aramco Value Chain

Currently Saudi Arabia is one of the leading producers of oil in the world. However, it is losing its foothold on the market. Many countries, like North America, are increasing their oil production and are looking for ways to become less dependent on foreign oil. The increased competition has caused oil prices to decrease. By producing their own oil, countries not only will increase their revenues, but will also reduce their need to rely on foreign oil. By reducing their need foreign an oil a country does not have to worry that their oil supply will be cut off if they go to war.

The Gulf houses half of the world’s oil reserves and a third of the natural gas. The Gulf States still continue to supply the international markets with a significant amount of the hydrocarbons. The stability of the region is crucial for the stability in the global oil markets. The Gulf also hosts one of the most strategically and important choke points in global trade, The Straits of Hormuz, which moves about 35% of the global seaborne oil, natural gas and other trade goods.

ExxonMobil is identified as one of the world’s leading oil and gas businesses. It manages market commodities and means countrywide. ExxonMobil is entail in “marketing, gas, and oil exploration, transportation and production in roughly 200 nations” (ExxonMobil, 2015). This company furnishes assistance and products under label names such as “Mobil, Esso, and Exxon. ExxonMobil is known as one of the biggest oil industrial installation where a substance is refined in the nation” (ExxonMobil, 2015). This essay discusses ExxonMobil’s strategic initiative from

Middle East is strategically important region where mostly world half of oil reserves are located. Three countries: Saudi Arabia, Iran and United Arab Emirates accounted for 57% of total Middle East liquids fuels production. (Liquid fuels production in Middle Eastern and North African countries n.d.) Although due to increased domestic production of petroleum and natural gas, the United States is reducing its dependence on foreign oil with imported liquid fuels, but still oil means a lot to the US as oil prices is determined internationally by what is available for all global consumers. Therefore, to safeguard the security of Oil supply in the Middle East and ensure stable access to affordable oil is in the vital interest of the America. (Mexican crude oil shipments to Europe and Asia are rising as U.S. imports fall

In addition to the US peak oil situation, the US Oil Drilling and Gas Extraction Industry faces heavy foreign market competition. In 2011, the US ranked 3rd in oil production, behind Saudi Arabia and Russia (Energy, 2012). Saudi Arabia’s OPEC governor expects Saudi output to rise steadily beyond 2030 with a 1.5 million barrel per day spare production capacity then (Energy, 2012). Russia holds the world’s largest

Until 1973, Saudi Arabia barely participated in international trade, however, during the oil crisis, Saudi Arabia’s economy grew rapidly because of their huge oil reserves (second largest in the world), and their ability to produce far more barrels than any other country. Saudi Arabia is the largest producer and exporter of oil in the world, and produce over 11.5 million barrels a day, over 7.5 million barrels a day more than Canada, at far less of a cost. Canada and Saudi Arabia are allies and benefit from each other. Canada and Saudi Arabia’s trade totals more than $3 Billion, and their market is so big because of Canada’s sanctions on Iran, another oil superpower. Saudi Arabia is Canada’s biggest trading partner in the Middle East. Saudi

The largest world supplier oil company is Saudi Aramco. It is the most profitable company on the earth. Since it is the most powerful oil company, it has a great impact on the world economy. As a result, a strong international relationship was built with the Kingdom of Saudi Arabia. In addition, the strong developing of international relationship with other industrial countries resulted in massive contributions to the politics, economy, and many different aspects. In 1933, Saudi government bestowed oil concession to California Arabian Standard Oil Company (Chevron). The main factor for this grant was to explore the oil in the eastern region of the Kingdom of Saudi Arabia. After discovering a huge amount of oil, part of the

and sold in 80 countries so products are produced worldwide and sold worldwide. The oil and gas industry is doing well as there is high demand for it as people need it to run their cars and to work gas appliances. BP is in the primary, secondary and tertiary as BP extracts oil from the ground through the use of oil rigs therefore extraction is primary. BP then refines the oil in one of their 16 refineries where oil is refined and turned into petrol and diesel which is secondary because they are manufacturing to create finished goods. BP is also in the tertiary sector because they sell their petrol, paraffin and diesel at their 22,100 retail sites worldwide and to other companies.

The story of Arabian American Oil Company (ARAMCO), the United States, and Saudi Arabia is a tale that has been told countless times throughout the history of mankind. ARAMCO is another chapter in the endless saga of empire and global capitalism that has spread around the world with the aid of multinational corporations over a period of several centuries. Many of the techniques used in Saudi Arabia beginning in the 1930s were similar to practices used throughout history as empires expanded and a global economy was formed. Aside from the adoption of several “exceptional” policies in their relationship with Saudi Arabia, ARAMCO continued trends of capitalism established long before the movements towards empire and national economy

Value chain analysis looks at every step a business goes through, from raw materials to the eventual end-user. The goal is to deliver maximum value for the least possible total cost. It is a systematic approach to examining the development of competitive advantage. The most basic breakdown of primary functions includes inbound logistics, operations, outbound logistics, sales and marketing and service. People should use the other models and frameworks within this software to further differentiate between, and add to, these domains. Product Innovation is one area that is not normally included in the de jure model but is often included in the de facto model. Value Chain Analysis describes the activities that take place in

Saudi Arabia has an economy that is largely dependent on oil, with the government maintaining the biggest control over the country 's significant economic activities. Saudi Arabia owns about 16% of the global oil reserves and is the number one exporter of oil (Saudi Arabia, 2013). In addition, the Kingdom of Saudi Arabia was instrumental in the formation of the OPEC (Organization of the Petroleum Exporting Countries) group, which initially comprised Iraq, Venezuela, Iran, Kuwait and Venezuela (Energy indicators, 2004). Currently, the petroleum industry constitutes about 80% of the country 's budgetary incomes; about 40% of the country 's GDP and 87% of Saudi 's export earnings. Agriculture, in addition to petroleum products, has been a major contributor to the kingdom’s economy since 1970s (Saudi Arabia, 2013). The country has been able to produce enough agricultural products for their consumption as well as surplus for exportation to the GCC member countries.

 The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.  Members Qatar (1961) Indonesia (1962) – suspended from January 2009 Libya (1962) United Arab Emirates (1967) Algeria (1969) Nigeria (1971) Ecuador (1973) – suspended (1992- 2007) Angola (2007) and Gabon (1975–1994) Having Headquarters in Vienna Austria Since Sep1, 1965.

The purpose of this report is to analyze the strategic situation of Malaysian Airline (MAS). The company was in 1963 it is a government owned airline, the airline operates both transatlantic and transpacific flights. Mas has received more than 100 awards since it started operating such as the leading airline (2011) Asia’s leading business class airline (2010) as well as the five star airline (2012). This has helped the company to build up its image as the top airline in Malaysia. They are a number of strategies which MAS can use to make the company to be more profitable strategy implementation which is the process used to overcome the external factors (Hambrick, 2007). A company can get affected if the company management

Kiichiro Toyoda was the founder of Toyota Motor Corporation and the automotive-centered Toyota Group. Kiichiro was a keen, skillful inventor and the continuous resolve of invention helped him to create the business base acquired from his father, Sakichi Toyoda. With the incessant drive towards innovation and invention, Kiichiro extended into the automotive business and build the groundwork of Toyota Group that you see today.

Though the Saudi National holds majority of the interest, he is neither involved in any financial investments nor is he held responsible for any financial liabilities. The Saudi National acts as a silent partner and deals all the government related jobs. The products for doing the business is imported from many countries mainly China. The geographic location of Saudi Arabia with respect to China makes it simple for the business to be done. Nearly 27% of the electrical Equipments for commercial and Industrial usage have been imported from China (http://www.tradingeconomics.com/saudi-arabia/imports). The main mode of transport from china to Saudi Arabia will be shipping. An agency for port clearance and distribution will be used for clearing the items from the seaport and for supplying it to the facility. The fee for the agent is negotiated between the agent and the business owner. This business will be started in as a small scale with 5 employees including Manager, Accountant and 3 sales staff.