Question

To launch the rich dialogue of what is expected throughout this course, choose a company that has been recognized recently as successful and is located in the Middle East. Then, in an original post, present well-written answers to the following questions:

1. What is the strategy of the organization?
2. What aspects of the strategy have been successful and/or unsuccessful?
3. How does the strategy compare with the four components that form the basis of the strategy framework shown in Figure 1.1 of Chapter 1?
4. How does the company’s strategy align with Saudi Vision 2030 strategies? Be specific.

Common elements in successful strategies Successful strategy EFFECTIVE IMPLEMENTATION Simple, consistent long-term goals Objective appraisal of resources Profound understanding of the competitive environment 02013 Fernando Muñoz Bulón

Answer 1

The Saudi state oil company Saudi Aramco is located in Saudi Arabia and is the single largest producer of crude oil in the world. The strategy of the organization was to retain Saudi Arabia's strategic position in the world by continuing to remain the world's biggest oil producer. Due to its size, it remains a critical player in the overall crude ecosystem and possess enormous pricing power.

Most of the strategy has been successful with Saudi Aramco continuing to remain a leader in world's crude production and remains a strategic asset for Saudi Arabia.

The strategy was based on simple goal of retaining leadership in crude production and clear understanding that a large production capacity would give large pricing power and hence critical to realize good revenues. Also based on this strategy and its ample resources of oil reserves, it was able to modulate its supply to the world in order to retain crude prices at a commercially viable level.

It is continuing to contribute to Saudi Vision 2030 goals by investing in newer technologies and spending more in research & development. Also it is using its extensive knowledge base and ample economic capabilities to set up industries in the country thus reducing Saudi's dependence on oil.