Management Saudi Aramco Company Analysis Essay

UWS Management Saudi Aramco Company Analysis Essay

Within your paper use bold headers to separate sections.  

You have the following key structure to work with:

I. Introduction (purpose of the paper and how it's organized) -Include a table of contents

II. Company and Industry Background

 A. Company Overview: include leadership, mission, values, and culture.

 B. Company history, size, locations, # of employees, international position

 C. Summary of Industry & major competitors and their positions in the market

 D. Firm Performance & Financial Analysis: Financial position & performance over a current, three-year & five-year lookback (company and their competitors -- sales and/or market share) Analyze Firm performance using annual reports and key data points: ROA (return on assets), P/E, stock price, other financial charts, etc. - Investigate firm performance both accross time (try to discern a trend), and relative to its competitors (see how well a firm does relative to its rivals) Which divisions produce the most revenues/profits?  How do they compare with other industry players - Note that financials can include cash flow statements, income statements, inventory turnover, debt/equity, and other financial summary items

III. Problems/Opportunities

 A. Describe a problem/opportunity you have found in your research - Is this industry wide or company specific?

 B. Prove the problem/opportunity exists (provide evidence)

 C. Explain impact of problem/opportunity 

IV. Solutions based on Strategy principles learned in text and class

V. Opportunities and Recommendations

VI. Conclusion

VII. Reference page at end of paper 

See a list of concepts or models you might want to consider or include in your paper below - 

• Company Overview: History, Vision & Mission, Locations, product line
• Company Goals, Innovations, Disruptions, Future Concerns & Adapting to Change
• Company Culture, Diversity & Sustainability
• Leadership review, Compensation/Tenure & employees
• Company Structure, Marketing Share, Plans & Diversification, International Scope
• Company Growth Strategies, Mergers & Acquisitions & how they go to market (distribution strategy)
• Industry Analysis: Porters Five Forces, Industry Life Cycle, Differentiation & Competitive Advantages
• SWOT Analysis
• Strategic Group Analysis
• Value Chain
• Macroenvironmental trends, Pestle Analysis on outside forces
• Competitor Analysis, Market share & financial comparison, Strategic Alliances 
• Financial Analysis: Firm Performance - Revenue by product line or division & profitability trends, EBITDA, Share Price, Dividend, P/E Ratio, Earnings per share, Market Cap. 
• Which divisions producing most revenues/profits for the firm?     
  • Financial Performance vs. Industry

Examples of problems or Opportunities to Explore (not an exhaustive list):

Trend Analysis: Be able to report trends and changes over a period of years (4-5 work best).  Looking at key financial data over a period of time is a good place to start.  Use charting and other graphical tools to communicate what you are finding.  Are these trends important?  Do they signal problems or opportunities?  Does the company need to pivot?

Some statements and conclusions you come up with might seem like soft statements (we think or we believe, or we recomend this our that), but these statements should be backed up with data and facts.  Interviewing company officials can help fill in these gaps.

Analysis: Here are some guiding questions to help you move ahead:

• Can you tell the story of how your company got to its position today? What year did it start & what was the evolution of the firm to this day?  What is the overall direction of the firm & its industry?
• What business are they in?  What business should they be in? (Mission)
• What are the big strategic goals and timeline?  What are the financial and non-financial outcomes?
• What is the strategy to develop consistent growth? What is the evidence of the strategy “working”?
• What is the "secret sauce" in strategy or culture that makes it work?  What operational improvements would you recomend?
• Describe the industry(s) and its environment.  Are there strong brands, stability, predictability, or is the competitive environment harsh and unforgiving?
• What level of regulation and profitability exists in the industry
• Is the industry growing or declining?  How should company strategy change to reflect the overall trends?
• How do they compete against other players in their industry?
• Which companies do they partner with?  Are these collaborations working and profitable?
• Would you recomend new collaborations going forward?
• Which divisions within the corporation generate the most revenue, profits and future potential - Which are weakest? 
• Can you find evidence of:
  • Strategic decisions being made which expand markets, revenues, profits?
  • Specific goals being set (increase sales by 20%, cut costs by 15%), etc?
  • Innovations, new product development, new markets for current products?
  • Differentiated products with superior design, technology, features, pricing or styling?
  • A strong marketing plan?  Who are their customers?  How are they reaching and retaining them?
  • Direct to consumer vs. business to business?  Different Margins?
  • How do they distribute their products? (Ex: Two step distribution using another firm)
  • Methods of advertising? Targeting customers using Internet, social media, traditional, methods?
  • Superior customer service or other staffing considerations vs their competitors?
  • Substantial international sales, profits or operations?  If so, in which countries & why go global?
  • Manufacturing overseas - to cuts costs?
  • How is technology & information management used to drive business performance?
  • Sustainable business practices or increased consideration of the environment
• Can growth be linked to acquisitions, new markets or products, internal reorganization, technology, etc?
• What products/services should they stop offering, or consider adding?
• What options are open to improve the business?  What might hinder them getting there?
• Any trends over the past 5-10 years which are evident?  
• Are there leadership, cultural and historical aspects which have influenced your organization's success?
• What do the financials' tell you about the organization? What is happening with cash flows and revenues? Are there special accounting notes in the statements which tell you about unusual activities?
• Do they have the money, competence and physical facilities to reach their strategic goals?
• Do they have a strong or weak leadership team?  What is the turnover rate of top executives? What evidence supports strong leadership?
• How do they invest in people & developing talent? How does learning & training happen?  Employee benefits?
• Have there been frequent reorganizations or changes in strategy?  What were the goals in doing so?
• Has the firm failed to achieve anticipated results?  Why?
• Is there evidence of strategic or marketing mistakes, industry disruption, supply chain issues, plant closings, or other evidence of instability in the business or its industry?
• Would you invest your own money in this company?  Why or why not?