1. What are the managerial implications with respect to informatio.docx

1. What are the managerial implications with respect to
information systems?
Managers who understand software can better understand the
possibilities and impact of technology. They can make better
decisions regarding the strategic value of IT and the potential
for technology-driven savings. They can appreciate the
challenges, costs, security vulnerabilities, legal and compliance
issues, and limitations involved in developing and deploying
technology solutions. The flexibility of the software and
hardware components gives computers the customization
options that managers and businesses demand. Understanding
how the layers relate to each other helps managers make better
decisions on what options are important to their unique business
needs, can influence what they buy, and may have implications
for everything from competitiveness to cost overruns to security
breaches.
2. What does total "cost of ownership" refer to in terms of
information systems and what is its significance in a managerial
context?
Leaders and managers should recognize that, there are a whole
cost that are associated with creating and supporting an
organization's information system. It is not only the costs for a
unique software or a purchase price, or even programming
costs. Companies should include the cost of: providing training
and the necessary support, collecting and relaying comments for
system improvements. Also, providing regular backup of
important data, and security needs to protect important
information. Companies spend too much money of their
information system budget just to keep the system running. This
is a big loss for any company does that.

3. According to our course discussion, what type of company is
Tesla, what do they hope to sell? Why are they more valuable
than Ford even though they have yet to make a profit?
Well Tesla is electric automobile manufacturer. But it focuses
more on solar energy more than automobiles. Tesla now started
to sell solar system for homes and a battery bank that us
connected for extra energy. The issue with Tesla is that their
product is expensive and only rich can afford # buy their
products. I think Tesla hoes to sell an affordable automobile and
more of their solar energy system. Of course, Tesla is more
valuable than Ford because the unique solar system they use.
Tesla does not use gas at all. All their products are powered by
electric. Tesla needs at least 10 years in order to make profits.
Also, Tesla started to build semi's trucks and many companies
such as Walmart started ordering the new trucks.
4. Discuss the roll of timing and technology as it relates to
competitive advantage and provide an example of a company
that has used timing and technology to grow their company.
I think the best example for a company who used technology to
grow is Amazon. If a company didn't adapt to new technologies
futures, it will start to loss. Amazon started the option of prime
now, where they can deliver within 2 hours window.
Amazon needs many drivers and cars in order to maintain their
promise to deliver within 2 hours window. What they did is,
they allow drivers to use their own cars. In fact, the training
#me for a driver is only an hour. They gave the drivers mini
videos to train them and after each video there was a quiz.
Prime now has increases Amazon seals by 23% in 2017.
Amazon used the right technology and the right #me to grow it
business.
5. Give a brief description of each of the factors that is
impeding the continued validity of Moore’s Law.
Moore’s Law is possible because the distance between the

pathways inside silicon chips gets smaller with each successive
generation. While chip plants are incredibly expensive to build,
each new generation of fabs can crank out more chips per
silicon wafer. And since the pathways are closer together,
electrons travel shorter distances. Electrons traveling half the
distance to make a calculation mean the chip is twice as
fast. Three interrelated forces—size, heat, and power—
threaten to slow down Moore’s Law. When processors are made
smaller, the more tightly packed electrons will heat up a chip—
so much so that unless today’s most powerful chips are cooled
down, they will melt inside their packaging. To keep the fastest
computers cool, most PCs, laptops, and video game consoles
need fans, and most corporate data centers have elaborate and
expensive air conditioning and venting systems to prevent a
meltdown. The need to cool modern data centers draws a lot of
power and that costs a lot of money. It’s also important to
realize that chips cannot get smaller forever. At some point
Moore’s Law will run into the unyielding laws of nature. Chip
pathways certainly cannot be shorter than a single molecule,
and the actual physical limit is likely larger than that.
2
Almalki 2
Aramco

Aramco
Saudi Arabia’s Aramco (formerly Arabian-American Oil
Company) is one of the biggest companies in the world. It
specializes in exporting oil and natural gas. The headquartered
is located in Dhahran, Saudi Arabia. It started as an American
company until the 1980s when the Saudi government took it
over
In 1932, American geologists discovered a huge field of oil
in Saudi Araba. This discovery has attracted many companies;
however, in 1933, Saudi Arabia signed an agreement with a
Standard Oil Company of California to explore other fields in
the country. Max Steineke who is the chief geologist, start to
explore the country to find other fields. In 1938. and after five
years of unsuccessful oil extraction; the first successful oil
well, happened in Dammam (Well No. 7). Because of this
discovery, the company’s first exporting tanker that loaded with
oil exporting to other countries has started in 1939. Because of
the huge success, the company his increased the number of
employees to have 3,173 Saudis, 322 Americans, and 141 other
employees.
In 1940s, Saudi Arabia and the Standard Oil Company of

California merged to create California Arabian Standard Oil
Company (CASOC), later changed to Aramco. Armco made
Saudi rich and changed the country. The next 20 years, the
company has discovered more oil fields, opened schools, and
provide jobs was the golden years of Saudi Arabia. Through
these years, Saudi Aribia has benefited from oil; schools,
businesses, and infrastructure started when the company start to
operate, and made the Standard Oil Company of California to
move their headquartered to Dhahran, Saudi Arabia in 1952.
In the 1970s and 1980s, the Saudi’s government start to by
share of the Standard Oil Company of California. The bought
25% in 1973 and after a year they bought 60% of the company,
and in 1980, and after the Israeli-Palestine War, the Saudis
government took over total ownership of Aramco.
Since 1863, Aramco has been a stet-owned oil company by
the Saudi’s government. Until recently, Aramco has given up
5% of its equity in the market, due to a finical crisis in Saudi
Arabia. The Saudi’s government own 95% of the company, and
they monopolized the oil industry in Saudi Arabia. Therefore,
Aramco has no competition in Saudi Arabia. However, in the
United States, the oil and gas industry are not capitalized by the
government, so there are more than one company that works in
the oil industry, which makes the market for that industry more
competitive.
Aramco’s strategy to enter the United States market and
compete with other companies is by signing agreements with
those companies to help them in producing and billed a
partnership. Also, in order to expand more in the United States,
Aramco bought 50% of Motiva. The biggest advantage that
helped Aramco to compete in the United States is the free
market. The United States allows oil and gas companies to
operate in their land, in a subsidies and joint-venter agreements,
which gave more advantage to Aramco to export in the United
States.
The oil industry is one of the biggest market in the world;
The oil and gas industry worth around 6.5% of the global

economy, which is around $107 trillion. Aramco is the baggiest
company that produce oil in the world. In 2017, Aramco has
produced 267 billion barrels which is almost 16% of the global
total, and that makes Aramco the leading company in producing
oil.
Oil is one of the valuable sources in the world, and almost
all countries relay on oil. Oil is considered as a limited source,
and that what make oil companies to work together to avoid
monopoly in the oil industry. Many oil companies have signed
agreements to not compete in the oil price. OPEC is one of the
agreements that Aramco and other 11 countries have signed to
not compete in oil prices.
Where does Aramco operate?
The Aramco expand has benefited the company to have
signed many operation agreements domestically, and globally.
The company headquarter is located in Dhahran, Saudi Arabia,
and after the expand of its oil production in the Saudi Arabia;
the company has started to open more facilities around the
Arabian Gulf, and the Red Sea. After improvement domestically
by providing jobs and helping the economy to improve. Aramco
decided to expand its operations. Aramco has started to go
globally and operate in many countries.
In the global operations, Aramco has signed many
agreements to provide its market and expertise in this field to
other countries. Aramco has signed joint- venture, and
subsidiary
agreements with other international companions, to help
providing Human Recourses with their partners. The company is
operating in the three biggest nations; North America, Asia, and
Europe.
The joint-venture that Aramco signed with these nations has
benefits all parties positively by providing expertise,
cooperation, and human resources. Also, Aramco has signed
many agreements with individual companies to cooperate with
them. Aramco and the United States has been working together

since the discovery of oil; the results of this cooperation have
drove the company to operate in the United State.
The company start to develop since thin, and it became one of
the leading companies that Its specializes in exporting oil and
natural gas, and export more to the other countries.
Nature of IB
Aramco’s nature business is to provide oil and refines it into oil
products such as gasoline and chemicals. Also, buying and
selling other companies petroleum as independent trader.
Aramco is the world first supplier of oil production. It supplies
more than 12% of oil demand in the world (CNN).
Broad information
Saudi Arabia’s Aramco (formerly Arabian-American Oil
Company) is one of the biggest companies in the world. It
specializes in exporting oil and natural gas. The headquartered
is located in Dhahran, Saudi Arabia. It started as an American
company until the 1980s when the Saudi government took it
over. According to Professor Paul Gregory in an article in
Forbes said the net worth of Aramco is 2 trillion dollars.
Recently, the Saudi government has opened Aramco up to
outside investors.
The oil industry is one of the biggest market in the world; The
oil and gas industry worth around 6.5% of the global economy,
which is around $107 trillion. Aramco is the baggiest company
that produce oil in the world. In 2017, Aramco has produced
267 billion barrels which is almost 16% of the global total, and
that makes Aramco the leading company in producing oil. in the
United States the oil and gas industry are not capitalized by the
government, so there are more than one company that works in
the oil industry, which makes the market for that industry more
competitive. And Aramco’s strategy to enter the United States
market and compete with other companies is by signing
agreements with those companies to help them in producing and

billed a partnership. Also, it’s one of the biggest companies that
uses offshore to compete in the oil industry. However, The
United States allows oil and gas companies to operate in their
land, in a subsidies and joint-venter agreements, which gave
more advantage to Aramco to export in the United States.
Aramco is a member of the Organization of the Petroleum
Exporting Countries (OPEC) which is mean job according to
them “is to coordinate and unify the petroleum policies of its
Member Countries and ensure the stabilization of oil markets in
order to secure an efficient, economic and regular supply of
petroleum to consumers, a steady income to producers and a fair
return on capital for those investing in the petroleum industry”
Political factor
Saudi Aramco plays a huge role of the political environment in
Saudi Arabia. The company it’s owned by the government, but
in order to increase their profit; the government does not
control the business strategies of the company. However, the
government control the political side of the company.
Economic factor
Saudi Arabia’s economy depends on oil production. 75% of the
Saudi’s economy comes from oil production. That what make
Aramco one of the advanced companies that control oil
production and be more innovative than other companies.
Social Factor
Saudi Arabia is a Muslim country, where Islam is the mean law
to follow in the country and society and in various aspects of
life. As part of the Saudi society; Saudi Aramco has fulfilled its
duty by creating jobs, opportunities, and support for small
businesses and that wat make the company to build a Corporate
Social Responsibility to be part of the Saudi’s community.
Environmental Factors
Environmental problems area unit the foremost curtail one for
oil producing corporations like Saudi Aramco. attributable to
the character of Saudi Aramco's business emission and pollution

area unit inevitable and therefore they're absolute to get into
controversies. however, Saudi Aramco has done well by taking
steps in emission reduction and pollution management. it's taken
initiatives to cut back harmful lead content in its merchandise.
Legal Factor
There has been ton of legal implication for the oil firms relating
to environmental allegation round the globe. This trend is
obtaining high in Saudi Aramco also. the primary
comprehensive environmental legislation came into existence in
2001. yet it's taken a robust stance against pollution and
industrial wastes and everyone the businesses should abide by
it. conjointly most major international oil markets have
completely different regulation of their own
Technological Factors
In recent years Saudi Aramco has shown improvement
technological advancement which may be seen in the successful
implementation of huge scale projects before schedule. At the
same time the worldwide shift towards cleaner and greener
technology as well as alternatives fuels are often one in each of
the explanations to ruminate upon for Saudi Aramco
additionally as different oil corporations.
Rivalry(medium)
The level of rival that Aramco face is medium. Since Saudi
Arabia does not allowed other oil companies to operate in Saudi
Arabia, Aramco has an advantage domestically. However,
globally, Aramco has a lot of completions such as Shell, Bp,
and Exxon. And they have an advantage of holding large oil
reserve.
Competition (medium)

There are five companies that compete with Aramco in similar
and different field:
· Schlumberger: is the world first supplier of technology.
· Statoil: is the world largest offshore operation.
· Nation Oillwell Varco: is Specialized in design and
manufacture oil equipment
· Shell Global: is one of the largest oil companies.
· Halliburton: provide products and services in oil industry.
Supplier and Buyer Power (low)
The supplier power cannot control the oil industry in Saudi
Arabia. However, the competition between companies that
signed the OPEC agreement and the companies that did not sign
could affect the oil prices, so other countries tend to buy from
the best offer. However, because of the OPEC agreement,
counties who in this agreement cannot control the oil
price.Aramco does not relay on other suppliers. The company
operates its own, so the level of supplier power is low due to
the independence in drilling and explores its own oil.
Buyer power (low)
In the Domestic market, Aramco control the price because it is
owned by the government. But globally, Aramco is a member of
the Organization of the Petroleum Exporting Countries (OPEC)
which controls the global price of oil and the production of oil.
Therefore, the buyer cannot control the price of the oil, so the
level of buyer power low.
Threat of New Entry (low)
There is a huge barrier that stops companies to enter the oil
industry field, such as
· Capital Requirements: the requirements to get oil is too
expensive.
· Reputation: to build a reputation, companies have to compete
in oil prices, and the quality of the oil.

· Access to Distribution Channels: most of oil fields are taken
by other companies.
· Government Policies: some countries will askes for interns.
· Economies of Scale. Large companies can produce oil in lower
cost, because of their equipment or expertise in this field.
· Patents
Aramco has not any threat of entry inside the Saudi’s market,
duo to the government control of
Oil, neither the other companies. It is hard to enter the oil
industry due to the sensitivity of this area; oil is a valuable
source and countries would not give up their sources to any
company, but they would agree if the company would offer
share of their stake.
Threat of Substitute (low)
oil is the number one energy source, that many countries relay
on. However, with the technology there could be other energy
sources, which might affect the oil industry. If we going to take
about what the other substitute that is coming in the near future.
Electrical energy and solar energy are the two kind of energy
that might take place in the future. also, other energy companies
who start to develop new type of energy that would take a place
in the future instead of oil.
SWOT Analysis
As many companies, Aramco has some major advantage and
disadvantage that could benefit the company.
SWOT ANALYSIS
strength
weakness
· The biggest producer of oil in the world
· Low cost production
· Affordable for consumers
· Progressive upstream technologies

· Relay on oil
· Most sales are on crude oil
opportunity
threat
· Great quality of oil
· Huge investment in the capital
· Strong consumer demand of the oil
· The relationship with many countries
· Economy depuration
· New source of energy
· Limited sources of oil
Strength
Aramco is the largest oil producer, and according to them they
have produce 267 billion barrels by the end of 2017, and that
because of the Progressive upstream technologies which
allowed them produce in low cost.
Weakness
Aramco and Saudi araba in general relay on only oil production
and sales, and heavily relay on crude oil. And we know that oil
is a limited source, so that is considered as a weakness for the
company.
Opportunity
The quality of Aramco’s oil is one of the reasons why it has
strong demand of consumers.
Over the years Aramco have billed a business relationship with
many countries.
Threat

In Economy depuration, that what happened to Saudi Arabia in
2017, and that what made the government to offer 5% of the
company and the threat of new energy source could affect the
company and the oil industry in general.
Countries of operation
Saudi Aramco has grown to become the world’s largest
integrated oil and gas service, employing over 65,000 people.
alongside its subsidiaries and affiliates, we tend to square
measure represented within the three major global energy
markets of Asia, North America, and Europe.
Aramco global operations and markets square measure served
through subsidiaries, joint-venture and shareholding
relationships with alternative international partners.
America
U.S Aramco
There are three main offices in the United States that are part
from the United, Saudi subsidiary
Agreements.
· Taxes
Aramco services company (ASC) is the Americas-based
subsidiary of Aramco. The ASC has three main offices in Taxes
that located in Houston, Boston, and Detroit. The main
objective of these offices is specialized in categorizing
upstream and downstream technologies, offering practices and
training the students and employees in North America, sourcing
goods and services, and engineering services.
· Washington D.C.
The office in Washington D.C. is responsible for representing
the company’s interest in wider objective. The Washington
office, focuses in building a government relations, economic

and political analysis, and public and cultural affairs.
· New York
The New York office is in charge of providing market support
services. Also, its responsible for lording, storage,
transportation, and the delivery of the cured oil that bean export
from the headquarter in Saudi Arabia.
Asia
Our international operations and markets are served through
subsidiaries, joint-venture and shareholding relationships with
other international partners. Saudi Arabia, through Saudi
Aramco, is that the favorite crude oil provider to six major
Asian countries — China, Japan, South Korea, Taiwan, the
Philippines and India — however our relationship with the
region goes so much on the far side the reliable provider of
crude oil energy to incorporate research alliances, materials
supply, education, engineering and technical services, training
and different mutually beneficial endeavors. With offices in
Beijing, Shanghai, and Xiamen and new Delhi, Aramco Asia is
a key player within the region’s spirited energy market and is
supported by integrated country offices in Japan, Republic of
Korea and Singapore. Under AN aligned regional strategy,
every country workplace provides selling and portfolio
management services and different business support to the U.S.
and our partners.
Europe
Based in The Hague, the Netherlands, Aramco Overseas
Company is that the European subsidiary of Saudi Aramco. The
network of our European offices offer a good range of services
as well as financial support, offer chain management, technical
support services and a variety of administrative support
services. The Hague office's information center is that the
communications hub for our world operations. From this base,
we tend to direct several of our international operations through
four offices in Europe also has 5 offices across the Asia Pacific
regions.

Reference
https://www.investopedia.com/university/releases/moneysupply.
asp
http://www.saudiaramco.com/en/home/about/who-we-are.html
https://www.statista.com/statistics/236605/share-of-global-
crude-oil-production-of-the-top-15-oil-producing-countries/
https://www.investopedia.com/ask/answers/030915/what-
percentage-global-economy-comprised-oil-gas-drilling-
sector.asp
https://datafox.com/competitors/saudi-aramco
https://core.ac.uk/download/pdf/56366463.pdf
http://www.academia.edu/15072891/Saudi_Aramco
https://www.bakerinstitute.org/media/files/page/98a641f6/noc_k
obayashi_saramco.pdf
after having completed the 5 assignments in class, you have
mostly all the required materials at hand to compose your term
paper. It will only need restructuring, formatting, paraphrasing
and filling in the gaps from the assignments.
There is no one or fixed format for writing a paper. Please feel
free to use the following or a modification of it as your
guideline:
o Typically, a term - paper focuses on a single or few related
problem/s. It is not merely an informative write - up about the
company but one that researches a problem in some detail.
o A cover page indicating the title of you paper, your name,
course name and ID, instructor
o A summary (or Executive Summary) which briefly describes
what your study is about, why you got interested on the
topic/subject - area /company, where you obtained your

data/information from and what tools and frameworks of
analysis you used to conduct your study. Usually this section is
best contained in 1 page.
o Acknowledgements
o Table of contents
o I introductory chapter /section including the opening of your
paper, introduction to your company, company background
information (establishment, product/s, country of origin,
countryies of operations, mode of doing international business,
size of company, revenues, profitability, brief history, etc.),
what the study is about, what problem areas you focus on, what
tools/frameworks you have used, how you obtained the
data/information you used
o You might also want to include the vision and mission of your
company
o Also, in the introductory chapter it is best to state your home
and host countries. For example, if your company originate in
the USA - the US will be your home country. Then if you are
looking into the company's operations in say China, then China
will be treated as your host country.
o Appropriately, divide your paper into 2 - sections for the
home and host countries
o Description of the operating environment - the cultural,
political, government, economic, geographic environments.
o Description of the company' s competitive environment - use
SWOT, five - forces, Michael Porter's Diamond - any or several
models that are appropriate for your paper. Remember to
include market information - market leader, market follower,
major events going on in the market or any other information
relevant to the competitive environment.
o Description of company strategy - remember, this must be in
line with the operating and competitive environments. For
instance, if the competition on is very intense, the company
might be focusing on intense e marketing strategies or perhaps
niche marketing to avoid the competition. The strategy might
include current and future plans as well. You might want to

include some of the company's unique practices in HR,
accounting, marketing or financing if you see it fit.
o Identification and brief description of the company's current
challenges or severe problems it is facing. Please make several
suggestions to resolves those issues. Remember - you are
advising the top management of the corporation, so your
suggestions will focus on the problem keeping in view the
background of the company's strategies and the existing
operating and competitive environments. You might suggest any
minor or even radical changes as long as they are logical and fit
into the existing conditions - if you can justify your reasons -
you are good.
o Most of the times doing an analysis of the company's value
chain could be very useful which reveals many details about the
company's operations and supporting functions and help us
understand underlying operational (configuration and
coordination) issues.
o If you use any other framework or analytic model, please
discuss those findings as well
o You can also write about the future plans of the company, its
products, innovative practices, future direction of business,
what factors are like to be at play in the future
o Any future projections and the rationale for the same or future
projects might also constitute useful information
o If you have tables and charts that you used to do you analysis,
please include those at the back as a part of your annexes which
do not count towards your 30 pages. Number your tables and
charts appropriately so that we can relate them to the relevant
sections in the paper. Should a chart or table be very important
for the main body of y our paper, you can also include it in the
body but that will take some of your valuable and limited space
o Include anything else that is relevant to your organization or
paper
o Have a section for bibliography and references - at least 15.
Use APA format for making the references

summary, charts/tables and bibliography will be about 30 pages.
It is not a problem if you are a few pages under or a few pages
over.
Grading
The paper will be graded based on the following:
- logical flow of entire write - up and cohesion among
chapters/sections
ion of available data

1. What are the managerial implications with respect to informatio.docx

Recommended

Recommended

More Related Content

More from paynetawnya

More from paynetawnya (20)

Recently uploaded

Recently uploaded (20)

1. What are the managerial implications with respect to informatio.docx