Strategic Analysis - Aramco and British Petroleum - Essay Example

Strategic Analysis: Aramco and British Petroleum of the of the Number Strategic Analysis: Aramco and British Petroleum Introduction The oil and gas industry is considered to be the most valuable industries in the world. As the source of these two energies is significantly limited, the global supply of oil and gas is concentrated into two major suppliers viz. OPEC (Organization of the Petroleum Exporting Countries) and non- OPEC organizations. All the companies operating in this industry are classified under these two broad categories. In this paper, the operational strategies of two companies, one under OPEC and another operating under non- OPEC organizations, named Saudi Aramco and British Petroleum will be compared and contrasted. Saudi Aramco or Aramco is the national petroleum and natural gas company in Saudi Arabia. As per the reports, the company holds the largest crude oil reserves as well as the highest daily oil production capacity in the world. Observing such large scale operations, in 2015, Forbes magazine has facilitated Saudi Aramco as the largest oil and gas company in the world. Considering British Petroleum Plc, it is one of the six largest oil and gas companies in the world. This vertically integrated London based company concentrates on all segments of oil and gas industry ranging from exploration of energies to its production, refining and distribution in the global markets. From the company brief, it is evident that these two holds a very important position among the few companies in global oil and gas industry. Therefore, analyzing the internal operational techniques as well as global strategies related to corporate governance and leadership is definitely considered to be a critical task. Therefore, for the purpose of analysis, the value chain and strength-weakness, opportunities-threats of these two firms will be evaluated and the corporate and global business strategies of these two companies will also be examined. Task I In the next segment, global operational strategies of Saudi Aramco and British Petroleum will be analyzed in terms of Value Chain and SWOT analysis. The value chain defines a set of activities as identified by eminent strategist Michael Porter, analyzing which the company can recognize those factors that have enabled it to gain competitive advantage in the industry segment. Such factors can be categorized under primary and secondary activities. SWOT analysis helps an organization to identify the internal strength and weakness of the company as well as the opportunities and threats lying in its external environment. Value Chain Analysis of Saudi Aramco Saudi Aramco holds a very strong value chain depending upon which the company enjoys huge competitive advantages. The primary and secondary activities of the value chain of Saudi Aramco are as follows. Primary Activities In-bound Logistics: The Procurement & Logistics department of Saudi Aramco aims to manage the supply chain of the company in such a way that ensures delivery of high-quality materials. Such integrated in-bound logistics of Saudi Aramco enables the company to incorporate efficient operations and on-time projects execution. The in-bound logistics also oversees the timely shipment of all the materials so that the production process remains uninterrupted. In fact, the company specifies stipulated forms, instructions, drawings and specifications for aiding the current suppliers so that they can provide relevant quotations to the purchase order and comply with Saudi Arabian and US import-export regulations (“Corporate Strategies at Saudi Aramco”). Operations: The operations of Saudi Aramco is globally integrated and includes number of activities such as exploration of oil and gas reservoirs, production of crude oil, refining the produced oil and chemicals as well as its distribution and marketing. All such operational activities of Saudi Aramco are supervised and controlled by Ministry of Petroleum and Mineral Resources of Saudi Arabia (“Corporate Strategies at Saudi Aramco”). Outbound Logistics: The outbound logistics of Saudi Aramco ensures on-time shipment of all the materials produced in order to minimize the inventory timing. Being the largest company in this province under the industry segment, the company also enjoys strong bargaining powers while negotiating for shipping contracts, freight rates and cargo terminal etc (“Global Player”). Marketing and Sales: Saudi Aramco, the biggest producer of crude oil in the world, incorporates a globally expanded business of refined products. According to the Trading Chief Executive Officer of the company, Said Al-Hadrami has specified that the intention of the company to directly reach out to the consumers has enabled it to maximize its export activities. In fact, continuous interactions with markets facilitate Saudi Aramco to understand market specifications and identify further opportunities for trade and maximize profit through capitalizing huge demand in downstream market (“Global Player)”. Services: The services provided by the company are divided among the following segments. The upstream services collaborate with the Aramco’s EXPEC Advanced Research Center of the company to influence scientific and engineering research work. The service related to industry relations tend to institute the best practices through imparting proper training and career development programs to the employees (“Corporate Strategies at Saudi Aramco”). Supporting Activities Procurement: The material procurement process of Saudi Aramco is conducted in the most disciplined manner and the company believes in establishing a long term relationship with the existing suppliers. In order to maintain quality consideration and ensure on-time delivery, the sourcing of materials is always entrusted upon America-based manufacturers of materials that are duly recognized and complied with necessary certifications. In this way, the purchase process of Saudi Aramco always adds value to the company and it also provides continuous efforts for re-evaluating the purchasing activities and identification of suppliers with better strategies in terms of ability of the suppliers to procure critical materials at a competitive cost as per requirement. Such initiatives in turn minimizes risks and cost considerations for the company (“Procurement and Logistics”). Human Resource Management: The human resource team of Saudi Aramco is enriched with around 500 experienced professionals such as engineers, scientists and geologists and 60,000 technical as well as non-technical staff. Such efficient human resource team creates the provision for sharing of knowledge and innovation within the organization and strives to bring excellence, safety and integrity at workplace. The employees hold accountability for their actions within the organization and in this way; they have developed a citizenship through which the organizational practices of Saudi Aramco has evolved as role model for other companies within the global industry of oil and gas (“Saudi Aramco’s Clever Strategy to Scoop up America’s Best Energy Talent”). Technological Development: Aramco puts huge emphasis on rapid technological inclusion and development for providing support stage of business. The technical service team always strives to incorporate technologies that will ensure safety and security of the people involved and will address the requirements of environmental protection. Foundation of such efficient technological considerations in Saudi Aramco can be attributed as high-level partnerships with top-tier research and academic institutions as well as inclusion of best available technologies in the concerned industry. The engineering department is always concerned about the development of technologies in order to improve downstream applications which in turn bring modification in the processing and refining of the petrochemicals. The information technology group provides the company the scope for running the core networking and communications which in turn increases organizational efficiency. The project management team provides technical and administrative support so that the company can maintain the best practices. Finally, the inspection unit strives to ensure quality and safety measures as well as control of engineered products procured from vendors from different parts of the world such as materials procured from the Western Hemisph (“Procurement and Logistics”).   Infrastructure: The logistics, operations and technological development of the firm is dependent on the infrastructural supremacy of Saudi Aramco. The company practices strong and integrated business practices in terms of controlling finance and accounting, strategic management and maintaining public relations. Value Chain Analysis of British Petroleum The business model of British Petroleum is fundamentally based on the belief that the best way to acquire sustainable success is to establish long term relationship with internal and external shareholders and channelize the organizational operations through them. The primary and secondary activities of the company are as follows. Primary Activities: In-bound Logistics: The material procurement department of British Petroleum also aims to establish long term relationship with competitive suppliers so that the process of production remains uninterrupted. Moreover, the company emphasizes on the suppliers to understand the objective of business of British Petroleum and accordingly procure high quality raw materials at the right time (“Products and Service”). Operations: Operations of the company at the global marketplace integrates more than 80 countries in the world and are highly integrated and strategy oriented. British Petroleum incorporates very strong financial framework as well as 10 point plan to coordinate and execute their operational activities efficiently (“Integrated supply and trading IST”). Out-bound Logistics: Out-bound logistics is also high-tech oriented to the company as it integrates its global supply chain management system in order to support economic development and upgrade standard of living of people across world. In fact, outbound logistics of British Petroleum Plc also aims to enhance the scope for jobs, investment and infrastructural development for fulfilling the requirements of the local communities which in turn improves the bottom line of the company (“Integrated supply and trading IST”). Marketing and Sales: Marketing and sales activities of British Petroleum aims to satisfy the oil and gas requirements of different customer segments. For this purpose, the company has come up with gas and petrol pumps, motor and lubricants, gas and fuel cards for business and consumers etc (“Products and Service”). Service: The services of British Petroleum include procuring fuel for transportation that enables the vehicles to keep moving, petrol pump for supplying diesel and petrol, lubricants and petrochemical products for easy movement of daily industry or consumers’ activities. Figure 1: Business Model of British Petroleum Supporting Activities Procurement: The procurement process of British Petroleum highly supports the inbound logistics of the company. The process involves a large number of activities ranging from refining of materials to efficient logistics and supply chain (“Products and Service”). Figure 2: Procurement Process of British Petroleum (“Strategy”) Human Resource Management: British Petroleum integrates a culturally diversified human resource tem due to their globally dispersed team. As the company operates in more than 80 countries, it involves 84,500 technical and non-technical staffs to run their business operations successfully. However, rather than considering as assets, the company believes that the human resource are the medium of production, that they should strive to exploit in order to maximize the company’s productivity and profitability. Therefore, reward procedures and employment benefits are delegated only to the middle to top level managers, not for the workers at grassroots level. Technological Development: Technological inclusion is another attribute that has brought competitive advantages to the company. The company tries to incorporate the most innovative and latest technologies available in the industry. Such technological inclusion can be experienced in various aspects of production and distribution starting from fracturing the rocks to injecting CO2 into wells and using in micro-organisms for lubricating rock surface. Infrastructure: The superior infrastructure of British Petroleum enables the company to ensure business conduction through integrating the internal financial, human resource and administrative aspects as well as external commercial and trade related activities. Such advanced infrastructure creates a provision for better risk management and compliance with ethical, legal and treasury related issues. SWOT Analysis of Saudi Aramco SWOT Analysis of British Petroleum Plc Task II The next segment will explore business, corporate and global strategies obtained by Saudi Aramco and British Petroleum as well as their nature of leadership and degree of compliance with corporate governance. Strategic Analysis of Saudi Aramco Business Strategy Business strategy indicates certain techniques adopted by a company to accomplish its long term business objectives. Considering the business strategies of Saudi Aramco, the company tends to incorporate long term business objectives first and accordingly make strategies so that they can achieve the goal of business within the stipulated time period. For instance, Saudi Aramco aims to evolve as the leading energy and chemicals company in the world by practicing diversified expansion in a sustainable manner. Moreover, Saudi Aramco views energy as an opportunity to reach to the consumers as a source of their intellectual right and accordingly, the company tends to exploit their full potential so that they are able to offer the best products and services in this concentrated industry (“Strategy”). Saudi Aramco understands it well that many industries in the global marketplace are operating on the foundation of oil and gas industry. Therefore, long term sustainability of such major industries such as textile and telecommunications industry are highly dependent on this particular industry. Hence, if Saudi Aramco concentrates on creating strategic relationship with such global industries, it will in turn confirm long term sustainability of the company only. Hence, the company incorporates the strategy of evolving as the major supplier of petroleum and crude oil. In this way, Saudi Aramco contributes towards accelerating the economic development of many countries which in turn satisfies the socio-economic responsibilities of the company as well, which is an important part of the contemporary business (“Adding value to our resources”). In order to evolve as a market leader in the global oil and gas industry, Saudi Aramco strives to leverage the skills and capabilities of its employees and establish infrastructural development so that the aptitude of the company can be stretched beyond its existing capacities. Moreover, it is implied to the company that the chief source of their business is non-renewable as well as the business is liable for various bi-products that are detrimental for the environment. Understanding that, Saudi Aramco has strategically shifted its concentration towards producing and supplying alternative sources of energy such as solar energy, as well as, creating next generation consumer products such as lower energy consuming vehicles and conserving water resources (“Adding value to our resources”). Such technological development is another result of the company’s efficient business strategy to run extensive research and development programs. In order to comply with world’s environmental and pollution control regulations, Saudi Aramco has designed the refining and production process in such a way that has considerably reduced the emission of carbon dioxide (CO2) to a great extent. All such business strategies have enabled Saudi Aramco to experience a high-end scale and scope of business (“Strategy”). Corporate Strategy Business strategies of a company highly depend upon the mission, vision and long term objectives incorporated by the company. As such, visions and objectives are formulated from the corporate level of the company, corporate strategies holds utmost importance for the business success of any company. Considering the corporate strategies of Saudi Aramco, the top management level is responsible for formulating the mission and vision for the company, based on which their business is driving to acquire maximum success (“Our vision”). The vision statement, which reflects the corporate strategy of Saudi Aramco reveals the company’s inclination towards exercising best practices so that it can continue to add values to the business and society at large. The corporate strategists of Saudi Aramco understand that in the modern world, energy is inevitable for running and sustenance of the contemporary world. According to the reports from Oilprice.com, the global oil demand is expected to grow by 111 million barrels per day to its current level of 93 million barrels per day by the end of 2040. Therefore, Saudi Aramco aims to supply the oil and gas in the global market place in such a manner so that the wastage can be minimized and the energies can be effectively utilized in accelerating global trade, developing high-end medicines, innovating new technologies and solving most pressing challenges of the world society (“Saudi Aramco’s Clever Strategy To Scoop Up America’s Best Energy Talent”). The corporate level strategies of Saudi Aramco is also reflected from the company’s expertise in establishing strategic alliance and partnership with various suppliers, distributors and other external stakeholders, that provides Saudi Aramco with further opportunities for growth and diversification, which yields competitive edge for the company. Such strategies enable the company to create values that was unrealized or forgone to Saudi Aramco or was beyond their capacity to institute. For instance, Aramco Trading Company which is a wholly owned subsidiary of Saudi Aramco, contributes sufficiently through building integrated downstream business strategies for Saudi Aramco and facilitating the company with the scope for mutual development, through in sale- purchase of third party products such as refined petroleum. Creating a joint venture with Fujian Refining & Petrochemical Company, Saudi Aramco has gained sufficient business growth through the increment of sales of asphalt in the high-growth asphalt market of China (“Saudi Aramco’s Clever Strategy To Scoop Up America’s Best Energy Talent”). Global Strategy Considering the global strategies, for confirming its global subsistence; Saudi Aramco aims to create joint ventures with local parties. This strategy enables the company to win the confidence of local player of various countries and acquire their hold on competitive logistics and supply chains. Such initiatives aid the company to involve local people in their human resource team and make them capable of generating new jobs. For instance, the company has entered into Japan through acquiring 14.96% stake of the country’s largest refiners of the country. Creating joint venture with Motiva Enterprises, a Texas based company has enabled Saudi Aramco to expand its business in United States (“Partners, ventures and affiliates)”. The foreign retail ventures of Saudi Aramco in China named Sinopec Sen Mei (Fujian) Petroleum Co. Ltd. has outperformed all the companies in this region in selling wholesale and retail motor gasoline, kerosene and diesel. Saudi Aramco has also established the third largest refinery in South Korea through acquiring 63.4% stake of AOC. This acquisition has enabled the company to establish long term relationship with the leading engineering, construction, and energy research companies in South Korea and enrich its future business opportunities (“Partners, ventures and affiliates”). Leadership In spite of being a state owned enterprise, especially from the Gulf Region, Saudi Aramco incorporates a highly integrated leadership style that tends to coordinate the business process at the micro level as well. In fact, the leadership of this company is considered to be visionary that can be exemplified by the effort of Saudi Aramco to include women in the top management and developing leadership skills within the organization for meeting the requirement of future leaders as well. Such effort is prominent as Huda Al-Ghoson, the female Executive Director of Employee Relations and Training at Saudi Aramco who had joined the company at an early age and gradually evolved as a leader through her positive notion and commitment towards business (“Saudi Aramco shuffles its leadership”). As the operations of the company are widely- distributed, including both local people and expatriates, it becomes difficult task for the corporate to manage such diversified workforce. It is the efficiency of the participative leadership style to integrate such widely- dispersed workforce and drive them towards achieving organizational objectives. Effective recruitment policy and inclusion of career development within the organization has helped the company to identify the talented, capable and ambitious men and women. In fact, women leadership is achieved by creating special provision of training talented women how to succeed in a male dominated business environment. Such endeavor towards enhancing participation of women especially in a Saudi Arabian company is truly exceptional. Moreover, it is the insight and visionary expertise of the leaders of the company that has facilitated Saudi Aramco to incorporate an objective of achieving the leading position in global oil and gas industry within 2020 (“Saudi Aramco shuffles its leadership”). Corporate Governance Saudi Aramco believes in conducting business complying with the ethical standards and accordingly influences all its internal and external stakeholders to drive business following such ethical norms. The company initiates for incorporating complex business challenges and accomplishes such complex task through the expertise of skill- enriched employees and providing them necessary training and development programs. Such honest effort has enabled Saudi Aramco to experience business growth at an exponential rate (“Saudi Aramco’s Clever Strategy To Scoop Up America’s Best Energy Talent”). . Therefore, rather than any shortcuts for achieving business objectives, efficient human resource is considered to be the building blocks for the foundation of the company. In fact, conducting business adhering to high legal and ethical standards is the main source of reputation of the company in the global market. Moreover, time-to-time conduction of corporate audit process develops a sense of personal integrity among the employees that infuses the requirement of maintaining transparency in the business process. Saudi Aramco has created the provision for all its internal and external stakeholders to report if they observe any discrepancies or irregularities in business line through General Auditor Hotline, an online platform to support the auditors for finding out any deviation from the standards of corporate governance (“Our services”). Strategic Analysis of British Petroleum Plc Business Strategy The business strategy of British Petroleum is highly based on its initiative to deliver values through its products and services rather than maximizing volume only. The company tends to make clear business priorities and accordingly strives to formulate distinctive strategies in order to accomplish its business objectives through proper employee participation. The business strategies of the company are designed in such a way that tends to maximize shareholders’ value through creating sustainable free cash flow and enhancing the profitability of the company itself (“Our strategy”). The business strategy of British Petroleum is based on three distinct parameters such as clear priorities, creating quality portfolio and distinctive capabilities. In the first parameter of business strategies, the company aims to develop operational efficiency through reliability and safety at workplace, so that they can gain the employee confidence. Such confidence enables British Petroleum to undertake complex and competitive projects and deliver such projects within the stipulated time and budget. All these initiative facilitates the company to easily achieve its business objectives and boost up the bottom line. With an objective of creating quality portfolio, British Petroleum concentrates on the area of expertise of the company such as exploration and upstream business line and accordingly enhances more values from such lines of operations. Continuous focus on improving upstream operations compels the downstream operations of the company to show excellence in order to maintain balance between all the activities of the organization (“Coke”). Such downward pressure actually results in better customer relationship, outbound logistics and technological exploitation which in turn improves the position of overall portfolio of the organization and enables the company to generate more and more operating cash flow out of business growth. The third business strategy concentrates on nurturing and developing distinctive capabilities. Such capabilities of British Petroleum are based on two attributes such as technology and stakeholders. Use of advanced technologies can be witnessed in every aspects of business starting from sourcing of critical resources to delivering high- valued products to the customers. Moreover, the company’s initiative to maintain a strong relationship with the external stakeholders viz. governments, suppliers, partners and customers of 80 countries across world also provides the business of British Petroleum huge competitive edge (“The Oil Market to 2030—Implications for Investment and Policy.”). Figure 3: Business Strategy of British Petroleum Corporate Strategy Excellence in corporate strategy of a company is reflected in the mission and vision statements of the organization as the organizational objectives, summarized in the mission and vision statement are formulated from the corporate level of a company. The vision statements of British Petroleum clearly indicate the company’s objective of achieving sharp growth without hampering the people and environment (“The BP Proposition”). Though the corporate level of British Petroleum does not incorporate any definite mission statement, the business practices and long term objectives of the company to evolve as the most recognized company in the world highly reflects the missions of the organization. In fact, the corporate level of the company aims to design the business practices of British Petroleum in such a manner that can supply the inevitable energies to the global consumers in the most secured and affordable manner, without damaging the social and environmental concerns. In fact, in order to drive business sustainably, the top management of the company has developed a ten-point strategy which is specific to the company itself. All such corporate strategies are summarized in the following chart (“Oil & Energy Ministries/NOCs”). Figure 4: 10 Point Plan of British Petroleum The core corporate strategy of the company is to drive business in progressive, innovative and performance driven way. The progressive corporate strategy enables the company to develop a long term relationship with the most competitive suppliers, distributors and other stakeholders so that mutual benefits can be gained. The next strategy enables British Petroleum to drive business in the most responsible way, complying with all the regulations of corporate governance, ethical standards as well as social and environmental norms. Innovation is given the utmost priority by the corporate and they have created the provision of including technologies in every aspects of business. The final strategy of the corporate level is to create performance driven organization so that it can deliver values through its products and services and achieve the core and sustainable objectives of the organization. Excellence of such corporate initiatives safeguarded the company’s operation in 2010 from the disaster of oil spill in the Gulf region (“Our Business Model”). Global Strategy Considering the foreign market entry strategy of British Petroleum, starting its operations from the United Kingdom, the company has expanded its operations to as much as 80 countries around the globe. Such wide ranged geographical expansion of the company has been possible due to strong financial position that has enabled it to acquire local companies operating in the local markets. Such initiative of British Petroleum can be exemplified by showing the acquisition of Standard Oil, a US based company (“Procurement”). In fact, with an aim to establish the largest oil company in the world, British Petroleum has merged with Amoco and substituted its corporate identity with own brand in the US. In fact, BP took 10% control over Russian oil company Sidanco, and confirms its existence in this particular country. In order expand their operations in Gulf Region; in 2011 the company acquired 11 plants for exploration and in 2012, it acquired 40 plants for resource exploration. The African market was also captured by British Petroleum through acquiring Brazilian national oil corporation, Petrobras. Asian market was also captured by British Petroleum Plc as it acquired 30% share of oil and gas assets operated by Reliance Industries in India (“Our strategy”). Leadership The leadership style of an organization reflects its way of driving business. The rationale behind such huge business expansion of British Petroleum and its global acceptance can be justified by the non-hierarchical and transformational leadership style. Such situational leadership has helped the company to drive business according to the requirements arises in their geographically dispersed business. British Petroleum has gone through various business disturbances during the long tenure of operations in terms of natural disasters, changes in political regulations and norms of foreign trade in some countries, oil spills etc. It is the visionary excellence of the leaders of British Petroleum that has made the companies to survive during the time of such business turmoil. For example, when the company was accused on the ground of using cheaper casing seal that has caused oil leak in the Gulf and Mexico regions in 2007, highly respected CEO of the company, Lord Browne took initiative to take the situation under control and manage it in such a way that will protect the brand image of the company in global marketplace (“The BP Proposition”). However, in contemporary times, the scenario has been changing rapidly. The present-day leaders in British Petroleum are becoming too directive to understand and control the problems arising at the grass-root level of the company. In fact, the recent objective incorporated by the company induces the workers for doing more for less. In such circumstances, the leaders are provoking the employees to complete 100% of their assigned task using 80% of available resources. Moreover, practicing of strict command and control as well as adaptation of cost cutting initiatives of the top management in recent times is highly destructing organizational efficiency. Such inefficiency became prominent when blast in the BP plants in the Gulf of Mexico region had killed 11 workers. The blast was definitely caused for unplanned and uncontrolled business drive of the management of the company. Corporate Governance The corporate governance of British Petroleum aims to establish the transparency in business process so that accountability of the company towards its stakeholders remains maintained. Such strong compliance towards corporate governance provides clarity of the roles and responsibilities in delivering values to the shareholders (“Governance”). The corporate governance principles of British Petroleum chiefly aims to establish a clean and clear business framework through eliminating the scope for unethical practices. In fact, the corporate governance report of the company indicates the high level influence of the shareholders in the company’s decision making so that the values of the shareholders can be maximized. Therefore, in spite of incorporating a vision of maximizing values, British Petroleum Plc has to run for maximizing volume of production in order to satisfy the shareholders’ concern. In order to maximize the provision for production and distribution, the corporate governance of British Petroleum has enabled the company to review the progression of work and performances of employees over a certain period of time. Such practices have created efficiency that has enabled the company to grow and expand business at a massive rate (“Governance”). The corporate governance of British Petroleum has also created a set of guidelines in terms of code of conduct and reviews, the codes as per the changes in the business progression. As per the latest guidelines in 2014, the company has incorporated the objective of complying its everyday business decision with value creation and effective utilization of scarce resources (“Governance”). Task III From the above analysis, it is prominent that the business practices of Saudi Aramco are much more concrete than that of British Petroleum Plc. The business and corporate level strategies of both the companies concentrates on business development and business expansion in an ethical manner, complying with the social, environmental and ethical rules. In fact, the global strategies of both the companies are also efficient enough, aligning with respective financial and operational terms that have enabled both the companies to enjoy rapid internationalization through the modes of joint venture and acquisition. However, in terms of leadership and corporate governance practices, Saudi Aramco has shown much excellence as compared to British Petroleum. For instance, effective leadership of Saudi Aramco strives for career and skill development of the employees which in turn largely motivates the employees to contribute towards organizational effectiveness. In turn, a tendency has been noticed among the leaders of British Petroleum to retain the resources and restrict the employees from using those in spite of forcing them to enhance volume of productivity. Moreover, the leaders of Saudi Aramco drive business in an ethical way, whereas, the motivation of British Petroleum to maximize shareholders’ value influences the company to deviate from their code of conduct and regulations of corporate governance. Therefore, the company should try to change its leadership style and strive to conform to the norms of ethics and corporate governance. Considering the case of Saudi Aramco, opportunities are there for the company to further expand its business in other parts of the global market. In this way, the company will be able to penetrate its diversified products and services into untapped market and accelerate the growth of business. Works Cited “Adding value to our resources.” Aramco Services Company. Aramco Services Company, 2015. Web. 10 June 2015. “Coke.” BP. BP plc., 2015. Web. 10 June 2015. Finleya, Mark. “The Oil Market to 2030—Implications for Investment and Policy.” Economics of Energy & Environmental Policy 1 (2012): 25-36. 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