Aramco Services Company
As well, strategic planning is a key pillar for any 21st century business as it helps set the goals, objectives and the business agenda for an enterprise; profit oriented or non-profit oriented, and ensures that all involved parties are at par, understanding what is expected of them and working towards a common desired success. Thus strategic planning is a tool of management that enables successful supervision of business processes by use of set guidelines and plans (Shapiro 3).
The importance of strategic planning is underscored in the reasons why it is done. The reasons are set as questions that the strategic plan helps to answer. A strategic plan helps to define the business entity giving its reason for existence in terms of a mission statement, it spells out what problems and challenges the entity has identified and the solutions it seeks to implement, how it intends to implement the solutions through resource allocation, prioritizing and use of various strategies. It also makes provisions for how to counter obstacles, such as competition in the business environment, that may be encountered (McNamara Strategic planning).
As with any management tool that derives its credibility from its successes, strategic planning has its benefits from the role
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Additionally, a clear strategic plan increases efficiency and effectiveness by enabling optimized usage of the entity’s resources by allocating resources on an accountable and prioritized basis. It also provides a platform for monitoring and evaluation of progress made by the business entity. In turn, this helps the company keep track of its work thus giving it room to act on its set goals and correct their mistakes through evaluation.
As well, both the monitoring and evaluation processes enable the company be aware of their success and challenges that they face. In other words, they are able to strategize on how to increase their successes and face their challenges. Finally, it brings together staff and directors creating teamwork at workplaces thus improving on productivity and it is also used for crisis management and resolution (McNamara Strategic planning).
Moreover, Aramco’s mission statement is to provide energy to the world. Thus, the company can be recognized as a prominent enterprise in the energy business. In order to accomplish its mission, the company has for a long time now organized its key business areas in a way that each area is headed by a corporate management member where management guidelines are strictly adhered to for a better growth rate. Additionally, this mission replicates the high hopes as set by the company. In other words, this means that in order for the company to fulfill its mission, the company has its own set of goals and objectives that go hand in hand with its hope for the company (Aramco Services Company What we do).
The company’s mission statement, Energy to the world, is specific and represents a broad perspective of the enterprise’s undertakings while also giving it an international presence. Thus, in attaining this mission, it can be said that the company has set very high standards of work ethics which also fall in line with the scope of work that enable it to become a result oriented company. As reflected by its clear mission statement, the purpose for Aramco Company can be seen as a way that ensures it performs all its duties in an excellent manner that in turn enables it maintain its public image, describe its product, clearly define its target market, location and show its expected profitability and growth expectations (Center for Business Planning Mission Statement).
Saudi Arabian Oil Company, Aramco co’s business is aided by its set strategic goals. The major goals outlined include the company’s aim to align Corporate Contractors Saudization initiatives with corporate long term strategies. Together with this, the company also aims at setting corporate goals for contractor Saudization efforts. These are the goals set by Aramco Co to aid it in its These are the strategic goals followed by Aramco Co in order to help in the company’s business processes.
Aramco Co’s strategic goals have been stated specifically as they clearly point out what it is that they aim at aligning which in this case is the Corporate Saudization initiatives and corporate long term strategies. The second goal also states specifically what it aims to do and the party involved which in this case is setting corporate goals for contractor Saudization efforts.
Further still, Aramco Co’s strategic goals are measurable since it is possible to measure the alignment of Corporate Contractors Saudization with Corporate long term goals.
Additionally, even though the company’s strategic goals may sound challenging they are still achievable. This is because it may be a great challenge to align the two entities targeted in the first strategic goals but if the set guidelines are followed, this goal can still be achieved. Moreover, it is also possible for Aramco Co to set goals for contractor Saudization efforts even though the process might go through rough stages in order for it to be quantified or to realize positive change.
Aramco Services Company. What we do. Accessed March 2, 2009 from <http://www.aramcoservices.com/what-we-do/>
Center for Business Planning. Mission Statement. Accessed March 2, 2009 from <http://www.businessplans.org/Mission.html>
McNamara, Carter. Strategic Planning (in nonprofit or for-profit organizations). Strategic
Planning (in profit or for-profit organizations). Accessed 2 March 2009 <http://managementhelp.org/plan_dec/str_plan/str_plan.htm>
Saudi Aramco. Contractors Saudization. 2009. Accessed March 2, 2009 <http://www.saudiaramco.com/irj/portal/anonymous?favlnk=%2FSaudiAramcoPublic%2 Fdocs%2FNew+Business%2FContractors+Saudization%2FWho+We+Are&ln=en>
Shapiro, Janet. Strategic Planning Toolkit. Strategic Planning. Accessed 2 March 2009 <http://www.civicus.org/new/media/Strategic%20Planning.pdf>