Question

Propose five means for a multi-national company like ADNOC or Saudi-Aramco to leverage their global presence and size when planning their operations on aggregate (6-18 month) level (5 points)?

Answer 1

Five means for a multi-national company like ADNOC or Saudi-Aramco to leverage their global presence and size when planning their operations on aggregate (6-18 month) level are:

1. Large customer base: The company can take advantage of its already existing large customer base and can build its base even further through engaging with these customers and getting more leads for business.

2. Vendor management: Since the company has already established a large vendor network and has a lot of contractors and sub contractors associated with it, hence it is easier for them to make effective operational strategies and not worry about the supply side integration.

3. Industry consolidation: The large multi national company can engage in forming partnerships and get into mergers and acquisitions to have more control over the industry and emerge even stronger through consolidation.

4. Control prices and other market dynamics: Since a large multi national company has a major market share in the industry, hence it can control the market prices through making effective demand and supply strategies and affecting the industry.

5. Influence competitors strategy: A large multi national company can also influence competitors strategy by changing market dynamics and industry trends. Hence they can have a competitive advantage over their competitors.