Assignment Regulation: Student must apply Harvard Referencing Style within their reports. Report must solve between 1000 words limit This assignment is an individual assignment. All students are encouraged to use their own words (Do not copy and paste). A mark of ZERO will be given for any submission that includes copying from other assignment. Cite your sources. Submit your assignment in word file. You should save the file with this way: ID.NO- MGT-321 A-1 STUDENT NAME. [only CAPITAL LETTERS] [Example.] 140158361-MGT-321 A-1 BANDER A ALGARNI. First page of the assignment should be filled with Course Code [MGT-321] and Course Title [ Intl. Business] and CRN- Student Name and ID.Number Date of Submission Second page should be Assignment question Assignment-2 Select a Saudi publicly trading company that operates in Asia, and write (a minimum of 1000 word) report covering the following points: Present the study report with clear Introduction and Conclusion including your own views. Analyze your selected company with micro and macro environmental forces by using SWOT analysis. Analyze the political, economic, cultural and legal challenges the company currently faces in any of the country it operates (select one country in which the company operates for this analysis).


Saudi Aramco which is publicly recognized the Saudi Arabian oil industry is strategically a Saudi Arabian public petroleum and innate gas industry having its headquarters based in Dhahran. The business operates integrated energy and chemicals firm in Saudi Arabia and is also engaged in the discovery, production, refining, and transportation, shipping and marketing of hydrocarbons; processing of petrochemical goods together with the manufacture and exportation of crude oil and accepted gas liquids. The business was initially identified as Arabian American oil industry and later altered its name to Saudi Arabian Oil Business in November 1988. The firm was discovered in 1933 and has its subsidiaries in Saudi Arabia, China, Egypt, Singapore, the United Kingdom, the Netherlands and United States which are part of the larger Asian nations (Anderson Jr, 2014). It is considered the global-leading producer of the energy and chemicals that keeps the international commerce running and enhancing the daily operations of people across the world. From the acknowledged upstream efforts and its cutting edge of sustainable mechanisms, the business has been able to create a single value engine that puts it in a unique category.

SWOT Analysis


  • High production and refining capacity
  • Large downstream operations and marketing efforts
  • Pioneering advancement in technology and ecologically sustainable development

  • Heavy dependency of industry’s profitability on crude oil sales
  • Relatively weak downstream capacity
  • Sour crude oil

  • International economic development driving the usage of energy and enhancing dependency on fuels
  • Accession of Saudi Arabia to World Trade Organization (WTO)

  • Reduction in international market share due to modern exploration efforts of other nations
  • Constant focus on renewable power and non-conventional sources of energy



Regarding the massive production and refining capacity, the industry has clocked figures close to 11million bpd together with 11.4 scfd of raw gas in the past years. The business has a total of 135 oil field discoveries with close to 7 new extra in 2018.  The company also has collaboration with the downstream opportunities to enhance its market divide and also to fulfill the desired economic scale. It has managed to share ventures with Sadara chemical industry, the Total industry of France, Sinopec of China, Lanxess of Germany and other critical organization operating on an international scale (Al-Tammar, 2014). In pioneering development in technology and ecologically sustainable expansion, the business concentrates on sustainable development through lowering green housing gas emission, enhancing operating efficiencies and economic opportunities for various people. The industry has also ventured in healthcare initiatives with multiple healthcare organizations including Johns Hopkins.


The decrease in international market share is considered a risk since there have been a significant oil field research and growth of domestic refineries efforts international that has, in turn, resulted into a rise of global market share threat for the company (Anderson Jr, 2014). There has been shale oil extraction in the United States with the recent example being in Texas and Shetland island of Scotland. The second threat is associated with the constant focus on renewable power and unusual sources of energy. The fossil fuel business is expected to face fierce rivalry to the non-conventional sources of power leading to an enhanced focus of the state on greener mechanisms to lower the environmental force and other subsidies made available to the renewable power growth.


One of the gravest weaknesses that have affected the industry is the high-sulfur grade crude where out of the various ranks of crude manufactured in Saudi Arabia, several contain high sulfur levels exceeding one percent. These sour grades are sold at a lower price compared to the low-sulfur grades. Other weaknesses are regarding the heavy dependence on a sole product crude oil. The good strategically dominates the industry’s export assortment that in turn increases its volatile revenues resources.


There has been an increase in demand for oil and unexpected low price elasticity that are part of the great and emerging opportunities for the business (Aramco, 2011). It is estimated that the globe’s oil demand is likely to enhance in the coming quarter century since oil remains the essential energy source. This is an estimate of the expected growing market for the Saudi Aramco’s substantial oil resources. The introduction of the company to the WTO also led to an increase in opportunity in the business as it allows the company to engage in significant overseas markets for its products and services.

Political, Economic, Cultural and Legal Challenges

The United States and Saudi Arabia have had continuously current economic and defense relation for the past years where America’s administration has made some informal agreements. However, the constant bombing attacks against numerous the United States and foreign controlled installations have affected the Saudi Arabia oil industry as there has been a growing anti-Americanism in some areas of the Saudi population (Anderson Jr, 2014). Since the bombing occurred, some politicians and commentators have suggested that Saudi regulations have led to a hostile condition. Regarding the economic challenges, the company has been affected by a mutual interest that has changed the trade relations with the United States and oil production. There have also been restrictions initiated regarding the number of barrels that should be supplied to the company. The company can, therefore, trade close to 1.2 million barrels per day for increased oil production.


Considering the Legal challenges, the United States has continuously engaged Saudi authorities on the legal requirements for global standards per the WTO strategic barriers of trade committee decision and has encouraged Saudi Arabia to adopt the rules introduced regarding such principles. These are some of the laws that the company has to adhere to and follow with the aim of carrying out a successful business operation.



Al-Tammar, J.I., Bonis, M., Choi, H.J. and Al-Salim, Y., 2014, May. Saudi Aramco Downhole Corrosion/Scaling Operational Experience and Challenges in HP/HT Gas Condensate Producers. In SPE international oilfield corrosion conference and exhibition. Society of Petroleum Engineers.

Anderson Jr, I.H., 2014. Aramco, the United States, and Saudi Arabia: A study of the dynamics of foreign oil policy, 1933-1950 (Vol. 849). Princeton University Press.

Aramco, S., 2011. Energy to the world: the story of Saudi Aramco. Saudi Aramco Services Company.

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