ARAMCO Strategic Plan Paper Example

Paper Type:  Business plan
Pages:  7
Wordcount:  1906 Words
Date:  2022-10-23


In the world war period, the inadequate availability of oil resulted in the growth of Saudi ARAMCO. Saudi Aramco is a global based petroleum company which leads in the manufacturing, production, refining, and marketing of oil and gas (Krane, 2015). The company began as an Arabian- American Oil Company the later changed to the Saudi Aramco. In 1993 the King of Saudi Arabia signed an agreement that gave Chevron formerly known as the California Arabian Standard Oil Company Oil the responsibility to look for oil. In the eastern coast of Saudi Arabia was the first place that oil was discovered. In 1948 the company renamed to Aramco which was co-owned by Texaco, Standard Oil of New Jersey which is currently known ExxonMobil.

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The Saudi Arabia Company started buying shares from the ARAMCO from 1972 whereby 1980 it had to acquire the whole company and fully governed the company. In 1988 the Americans transferred the ownership of Aramco to Saudi Arabia government where the government named it Saudi Aramco. In the whole world, the company produces over 25% of the oil supplies (Marsala et al., 2015). It is located in Dhahran and deals in the production of natural gas and oil production. In the world, it is one of the highest producing oil company been ranked as the second in crude oil reserves. In the country, the Saudi Aramco heads and governs most of the oil fields to enhance production. The company in previous years has recorded large amounts of profits. Among the companies, subsidiaries are Of Saudi Arabia are located in the whole world. They are found in Egypt, China-Japan, Singapore, the Korea Republic, United States, and the United Kingdom. The chief executive of the company is Amin Nasser who is also the president of the company. Al-Falih Khalid who is in the Energy ministry, Commerce and Mining is the chairperson of the company. As one of the members of the strategic planning group of ARAMCO Company and having worked in the company for five years the manager asked me to put down some recommendations and strategies to ensure more efficiency in the company. The paper below is about the Saudi Aramco strategies to ensure total efficiency.

Strategic Management and Planning

In strategic management, Strategic planning is one of the crucial components. Many organizations that are aiming to succeed ensure efficiency in the market. Before operation begins in a company planning must be highly considered. Planning helps a company gain the idea of the operation, the market and on how to succeed in their goals. The most organization makes strategies considering the current state of the organization and considering the future. Many strategies aim to secure and ensure efficiency in the future (Bryson, 2018). The current markets have become unstable with many affecting factors including stiff competition. As a result, many companies including the most successful ones have realized the advantages of strategic planning. Among the characteristics of successful and conducive plans are: the company must have well-outlined goals and aim. The goals should focus on the success and growth of the company. Second, the external environment of a company highly affects the productivity of a company; an organization must be familiar with the external environment.

Since inception, many changes have occurred on the strategic management. The strategic management from the 50s has advanced from financial budgeting to globalization. For the company's strategic plan to be a success the leadership of a company is responsible for ensuring the recommendation made are applied.


The ARAMCO Company in many years has tried to partner with as many companies as possible those dealing directly with oil and those dealing with other energy products. As a result, the company has developed significantly over the years. Due to the changes in the market the company needs to partner with more company to ensure it will be the reading company in the future (Zyuzko, 2018). The company has focused on energy producing products, and according to the other members of my team and me, we suggest that the team should also venture in other industries. Saudi Aramco is a government based organization which is entirely controlled by the government; the organization should partner with as many as possible private companies not only in Saudi Arabia but all over the globe.

Increase Branches

The company has some branches all over the globe. To ensure that the company dominates not only in some continents the company needs to introduce branches in as many countries as possible. In countries with means of water transport, the company should establish a branch which will enable the company sells its products to all corners of the world. As a result, the more the company opens branches the more the company creates good relationships with different countries and continent (Baker, 2014). The time to deliver its products to different customers may take long considering the distance between the two points. The more the branches, the more the market for opportunities arises. In the various branches, the company should improve the infrastructure, offer employment and help in the creation of more job opportunities. As a result, the company will help compete with other companies since many countries will decide to buy products from the Saudi Company to maintain the relationship.

Financial Management

The more the company has developed within the years, the more the company has increased the amount of capital circulating in the organization. The company records a huge amount of profits and may require a well-established financial sector. To avoid money laundering and corruption, they need to be new ways to ensure the money used is accounted for. The management should employ skilled professionals who can help in record keeping and ensuring the company operates in the most secure way avoid inappropriate losses that are as a result of poor handling of finances. The assets too should be safely guarded. The company should have its assets registered to the company and not operating on assets that belong to other government sectors. The company should depend on itself rather than depending on the government.


The Saudi Aramco has been on the top for many years though some companies are developing at high rates. The company needs strategies that will ensure it will remain at the top and as the best company in the production of energy-related goods. Many countries including the European nations and Countries in the North Africa region have invested greatly in oil manufacturing and other sources of energy (Solomon et al., 2014). The more the technology advances, the more the competition increases. The company to ensure it is secure in the future should work on the following:

Quality of the Products

The products produced by different oil companies vary just in the quality. The more the quality of output the more the company will overcome stiff competition. Many companies, especially in Europe, have improved in their production producing goods that are of good quality regardless of the price. Saudi ARAMCO should focus on winning the market by first ensuring the products produced meet the environmental policies and that they are not harmful to the universe. Second, the cost of its products should be low compared to other companies (Solomon et al., 2014). Though Saudi Arabia oil companies have been controlling the prices of oil products in years, they should ensure the price is reduced.


To the countries and organization that use the products from the organization should be given after sale services considering the number of products purchased. Among the aftersales services are discounted, the high the value of goods purchased the high the discount rate. To the countries that buy products from the Saudi Arabia organization, they should be treated as partners, and the government should invest in that certain company to ensure future markets. Second is free delivery, the cost of delivery is huge and may result in a company recording losses if it provides free shipping to its customers. The company is well known for having modern ships to transport its products (Eid, 2011). The company should set a value that if a country or an organization buys the product of that value or above the value the company will provide free shipping. For example, it can set that two hundred thousand tones are the amount of oil that the company will offer free shipping.


Saudi ARAMCO may be affected in future due to the changes in the market. In the current time with different inventions, the market is uncertain and cannot be predicted of how they will be in the future. To ensure the company is secure the management has to introduce ways that will enable the operations to be flexible (Hunt, 2014). For instance, the change in technology may affect the nature of markets. Among the practices that the company should focus on is to ensure that the company adapts to the new technological skills within the shortest time possible.

Empowering Workers

They have been changes in the technology in the modern days compared to the previous years. With technical advancements, companies are working all ways possible to adapt to the new trends (Hunt, 2014). Technology has made things easier in many organizations, but on the other hand, many organizations have collapsed due to different technological inventions. Saudi Aramco has made changes in how it is adapting to the new era. New machines have been purchased with the aim of making the production more efficient. The company has failed to train workers on how to use the new machines. Though during employment the company hires high skilled individuals the company has failed to put in place the consideration that change in technology hits even those with skills and knowledge with surprise. The company should enhance the following on employees.

Training Transfer

The company should introduce programs where employees are trained to gain different technical skills. The management should be responsible for training the employees by providing resources and a convenient environment for training. Professionals in different fields should be employed (Bronson, 2008).


Employees should be motivated to ensure their efficiency. The Saudi Aramco employs over sixty thousand employees globally. It is one of the companies creating the highest job opportunities (Bronson, 2008). The company should focus on increasing pay to the employees through comparison of the time the task and the wage they get. The companies that have recorded to be paying workers highly have recorded increased efficiency of workers. The oil firms are associated with emissions of gases and other waste products. The workers working in the manufacturing sites should be ensured of their health safety. The health of a worker should be the priority to be considered by the executive seniors. As a result, it will encourage workers to work for the company with the aim of making it develop. Aramco firm has had issues in employing employees from other countries. As a result, the company has not created the best relationship possible with other countries. The company management should consider employing citizens from other countries, it been a global company and depending on other countries for survival should focus on the creation of opportunities to other countries.

Giving Incentives

The company should give incentives to its employees. The issue of treating employees well will ensure that the company will have people willing to work in the organization in the future. The company should create the best legacy on providing incentives to its employees and ensuring total security of its workers (Salcito et al., 2014). Those workers who record good results should...

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