Strategic Audit of a Corporation

Business Policy

Assignment

BUS 490

Strategic Audit of a: Saudi Aramco

Table Of Content

Topics Page Numbers

Executive Summary 3

Company overview & Location 3

Mission and Vision 4

Current performance & Strategy 4 - 5

Corporate Governance 6 – 9

Executive Summary:

To be completed before submission of the final phase of the project.

Saudi Aramco location:

Dhahran, Saudi Arabia

Company Overview:

Saudi Aramco is an international recognized company involved in oil industry engaged and refining distribution and thrilling activities the major part of Saudi Aramco is to ensure that all oil products are extracted as crude oil and then the find true its major white Refineries spread across the kingdom of Saudi Arabia oil refinery projects are then distribute it to distribution outlets allowing local and international companies to use their products such as fuel oil with oil for commercial airplanes and international airplanes these activities involved so many areas that allow Saudi Aramco to be on the top range of its competitors using the highest Technology being to day the largest company in the world involved into the oil industry this strategy and this activities has always been as the top edge of Saudi Aramco using the latest technology in extracting oil from the ground and to ensure that all projects are distributed and marketed internationally throughout the world make is Saudi Arabia the leading company in the oil supply Saudi Aramco is also involved into storing part of the products that are extracted from the ground as contingency plans at three major areas in the kingdom the called strategic storage plans table is be distributed around the kingdom in different area as contingency for storing oil products for future production.

Mission and Vision

Mission:

“Aramco is keen to provide services in order to support Saudi Aramco business ties with the businesses engaged in commercial transactions in Saudi Arabia”

Vision:

“Saudi Aramco is the world’s leading integrated energy and chemicals company, focused on maiming income, facilitating the sustainable and diversified expansion of the kingdom’s economy, and enabling a globally competitive and vibrant Saudi energy sector”

Saudi Aramco current situation

· Current Performance:

Saudi Aramco continued to deliver on its long-term strategy of reliable supply to meet customer needs. Saudi Aramco is the leading company in the world which produced as the first producer of crude oil and Produced an average of 10.2 million barrels per day so, Increased amount of natural gas to an average of 8.7 billion then the average oil exports reached 6.9 million barrels per day.

Continuous investment in leading technology and collaborative partnerships are key elements driving the company's operational efficiency and production performance, were made computational modeling resolution enhancements. Saudi Aramco also expanded its use of innovative nonmetallic materials. In fact, 230 U.S. patents were granted — a record for the company.

Through its achievements, Saudi Aramco's firm commitment to helping ensure global energy demand will be met in the next years, Follow-up techniques and initiatives to gain greater value from oil through advanced petrochemicals and materials, invest in research and development to further reduce energy carbon emissions and improve the operational efficiency of the company.

· Saudi Aramco Strategy and policy:

Saudi Aramco is basically focusing their strategies on energy transformation this energy transformation is intended to serve all the aspects that relates to the oil industry and make sure that it is it in Alliance with the company policy of meeting Kingdom demand of oil products and international demand of supplying worldwide oil commodity with top quality and Technology oriented performance in the past.

Saudi Aramco has made several of strategies to ensure that these objects are made all major strategies of Saudi Arabia who are focused on enabling the company to compete in the oil industry and those strategies are focused on energy transformation Technology orientation and basically capturing the world market by using the latest drilling and refining and Technology oriented equipment these technologies are also done in Alliance with the top Nations both local and International Institute and Universities that shows the latest technology , latest research that make sure that these strategies are fully made without any step back or without any delay in the execution of the upstream industry.

Saudi Aramco strategy has always been focusing on local community requirements Saudi Aramco has made out of alliances with Lots School with local communities and has expanded its leverage of services throughout the kingdom and has served in so many areas that also Saudi Aramco strategy is to be everywhere and to be a good participate in the kingdom national economy in the kingdom National social requirements and in the kingdom educational assessment year programs.

Saudi Aramco strategy also has been so much focused on ensure that all population are benefiting from Saudi Arabia existence and to be part of the entire Kingdom worldwide best oil companies and to benefit from employing and ensuring that most of collage graduates do have equal job opportunities made the kingdom economic demand through those replacement programs available within the company

Corporate Governance

· Board of director:

The company's leadership team consists of the board of directors and members of the general management who work together to guide the company in the right direction to achieve its long-term strategic goals and to make daily decisions that contribute to the company's long-term strategy.

His Excellency Eng. Khalid bin Abdulaziz Al-Falih is the Chairman of the Board of Directors of Saudi Aramco and currently serves as Minister of Energy, Industry and Mineral Resources in the Kingdom. From 2009 to 2015, he served as the CEO of Saudi Aramco and previously held a number of positions in the company.

His Excellency Dr. Ibrahim bin Abdulaziz Al-Assaf is Minister of Foreign Affairs and Member of the Council of Ministers and former Minister of Finance of the Kingdom of Saudi Arabia. as well as a number of other positions.

His Excellency Mr. Mohammed Bin Abdullah Al Jadaan is currently the Minister of Finance of the Kingdom of Saudi Arabia. Chairman of the Board of Directors of the General Authority for Zakat and Income, and he also chairman of several places.

His Excellency Mr. Mohammed Bin Mezid Al Tuwaijri is currently the Minister of Economy and Planning in the Kingdom of Saudi Arabia. He is also the Chairman of the Board of Directors of the National Center for Privatization and the Chairman of the Board of Directors of other organizations.

His Excellency Mr. Yasser Ibn Othman Al-Rumayan Currently Managing Director of the Saudi Public Investment Fund and Secretary General of the Board of Directors. He is also Advisor to the Saudi Council of Ministers.

Sir Mark Stewart is Vice Chairman of the UN Global Compact, Chairman of the Global Compact Foundation, and Chairman of the Board of the Innovative Vector Control Federation. Prior to that, he was Managing Director of Royal Dutch Shell, Non-Executive Chairman of Anglo-American Plc, and Board Member of Accenture PLC.

Mr. Andrew Leavers is a member of the board of IBM, a member of the Executive Committee and former President of the United States Business Council, and of the Board of Trustees of KAUST.

Mr. Andrew F. C. Gold is chairman of the International Advisory Board at the Energy Impact Center of the Boston Consulting Group and is a board member of BG Services, a private oilfield services company.

Ms. Lynn Laferty Elsenhans is currently a member of the Board of Directors of Baker Hughes of GE and GlaxoSmithKline Plc. Ms. Lynn previously served a

number of senior positions.

Mr. Sela is currently a member of the Board of Directors of Surfmaster Holding Company.

· Top management:

Eng. Amin bin Hassan Al-Nasser is the President and Chief Executive Officer of Saudi Aramco since 2015. He has held a number of leadership positions in the company.

SWOT Analysis:

Strength:	Weakness:
· Strong relationship with Saudi government · Monopoly in the domestic markets · Leading market position · Advanced project management capabilities. · Extensive Research and Development. · Huge production & refining capacity · High downstream operations and marketing capabilities · Pioneering advancement in technology & ecologically sustainable company growth · Geographical diversification	· Legal proceeding · High dependency of company's profitability on crude oil sale · Corporate governance and transparency are an issue at Aramco with very few disclosures made by the company. · Cannot devise its strategies independently · Relatively small downstream capacity · Employment unrest.
Opportunities:	Threat:
· Saudi Arabia accession to WTO. · Strong oil demand. · Global economic growth driving consumption of energy and increasing dependency on fuels	· Newer exploration Decrease in global market share owing to capabilities of other countries · Continued focus on renewable energy and non-conventional sources of energy · Economic recession and its impact on demand. · Possible inventions leading to viable substitutes fuels

· Relationship between Strength and opportunities (How they benefit from it)

Strong relationship with Saudi government, this oil country needs government support to run the business by providing them support and securities Duo to geographical diversification, there is strong oil demand

Corporate structure:

Corporate Culture:

Our behavior is what defines us – as a company, as employees, as people. Everything we do is anchored by our corporate values: citizenship, safety, accountability, excellence and integrity. By living our values and sound business practices, we consistently achieve high levels of performance and efficiency – delivering value not only for our company, but for our customers, partners and the communities in which we operate.

· Excellence: At Saudi Aramco, excellence translates into all aspects of our workplace. It is our personal and group commitment to doing what we do well. We drive for best results and are agile in addressing new challenges. As a business, we drive excellence by setting challenging goals, rewarding top performance, committing ourselves to developing our people, encouraging innovation, creativity and diversity of thought, and fostering teamwork and open communication.

· Safety: Safety is an integral part of Saudi Aramco’s culture. We are committed to providing a safe and respectful working environment for all with the appropriate safety procedures and policies in place onsite and within the community. We define safety as protecting ourselves, protecting others and protecting our future.

· Integrity: The integrity of business at Saudi Aramco is based on the ethical standards of our employees in our everyday operations. Integrity is a precious asset, it is our reputation and the foundation of corporate integrity is personal integrity. We treat people with fairness and respect, we embrace diversity and accept differences and we do not tolerate misconduct.

· Citizenship: No matter where in the world we are conducting business, it is important to be known as a good corporate citizen and to be a positive influence within communities. As a global company in Saudi Arabia, we take this role seriously. We define citizenship as acting as a catalyst for economic growth, demonstrating social responsibility, supporting our communities and serving as role models in building solid relationships with our customers and partners.

· Accountability: Accountability means all employees at Saudi Aramco take responsibility for their actions in meeting corporate objectives. Accountability for achieving the company's overarching business objectives starts with the goals and objectives outlined by the president & CEO for the company’s business lines, and pervades through the entire company. Our employees place authority where responsibility lies, deliver on commitments and seek and provide constructive feedback.

Corporate Culture:

We achieve the highest business standards by adhering to the highest personal and professional standards. Our ethics and compliance principles are deeply embedded within our corporate culture and form the basis for a suite of policies, codes and guidelines that guide and inform our employees as they implement the company’s business strategy. These same components shape our compliance programs which serve as the benchmark against which we measure our performance and that of our partners — contractors, consultants, suppliers, affiliates and joint ventures within the Kingdom of Saudi Arabia and abroad.

Compliance Program

Our Corporate Compliance department is responsible for the further development, support, and monitoring of the compliance program, and for following external legal and regulatory developments.

Conflict of Interest and Business Ethics Policies

Employees review our Conflict of Interest and Business Ethics Policies regularly. This ensures our ethics policies are continuously reinforced for use in real-life applications. Any ethics concerns from our employees or third parties can be clarified through our established communication and reporting channels.

 

Hotline: Our ethics and compliance hotline is available to provide a secure and confidential venue for people inside and outside the company to report suspected fraud, unethical conduct, or irregularities. We hold employees to a high level of ethical conduct and expect the same of our suppliers.

 

Supplier Code of Conduct:

Our Supplier Code of Conduct outlines mandatory policies on environmental, health and safety issues, fair trade practices, ethical sourcing, conflicts of interest, bribery, kickbacks, gifts and fraud, monitoring and compliance. Saudi Aramco’s Supplier Code of Conduct promotes our values and extends and maintains our ethical standards across our supplier network, enabling long-term, mutually beneficial partnerships.

Corporate resources:

· Marketing:

· Finance: They believe that risk management is an integral part of the decision assessment for their strategic and operational activities. Therefore, they aim to generate value while maintaining an appropriate risk profile. Strategically, Aramco Trading’s risk framework is owned by the board. It ensures that effective audit, risk management, and compliance systems are in place to monitor and manage the risk of the business at all levels. Tactically, they have an independent body that establishes and enforces risk-control and ensures its effectiveness across all our operations. This body also systematically evaluates risk-control measures, reports risk activities, and provides the necessary checks and balances.

· Operational and logistics: They deliver refined, liquid chemicals and polymer products to their customers around the globe. This means they blend their products, manage their movement, and provide their customers with real-time logistical support. They do this 24 hour a day. They provide the products, personal attention, and trading solutions that help their partners grow their business with confidence.

· Human resources management: Aramco believe in the diversity of their people, and continue to recruit employees from various backgrounds to help prosper the growth of their organization and its vision. Aramco strongly believes in the value of its employees, and has a diverse workforce with people from various countries. This variety helps reinforce the success of the organization, by adding value through experience, education, and more.

President & CEO

Exploration and Producing

Industrial relation & Affairs

Engineering and Operations services

Corporate Planning

Law

Information Technology

Management service

Finance

Refining & Marketing

Gas operation