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To launch the rich dialogue of what is expected throughout this course, choose a company that has been recognized recently as successful and is located in Saudi Arabia. Then, in an original post, present well-written answers to the following questions:Identify the organization and its ownershipDescribe the organization’s products/servicesDescribe the organization’s strategy (how does it create value)How does Saudi Vision 2030 impact the organization’s strategy? Be specific.How does the organization’s strategies support Saudi Vision 2030?Embed course material concepts, principles, and theories (require supporting citations) in your initial response along with at least one scholarly, peer-reviewed journal article. Keep in mind that these scholarly references can be found in the Saudi Digital Library by conducting an advanced search specific to scholarly references. Use Saudi Electronic University academic writing standards and APA style guidelines.You are required to reply to at least two peer discussion question post answers to this weekly discussion question and/or your instructor’s response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn’t fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.
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To launch the rich dialogue of what is expected throughout this course, choose a
company that has been recognized recently as successful and is located in Saudi
Arabia. Then, in an original post, present well-written answers to the following
questions:
1.
2.
3.
4.
5.
Identify the organization and its ownership
Describe the organization’s products/services
Describe the organization’s strategy (how does it create value)
How does Saudi Vision 2030 impact the organization’s strategy? Be specific.
How does the organization’s strategies support Saudi Vision 2030?
Embed course material concepts, principles, and theories (require supporting
citations) in your initial response along with at least one scholarly, peer-reviewed journal
article. Keep in mind that these scholarly references can be found in the Saudi
Digital Library by conducting an advanced search specific to scholarly
references. Use Saudi Electronic University academic writing standards and APA
style guidelines.
You are required to reply to at least two peer discussion question post answers
to this weekly discussion question and/or your instructor’s response to your
posting. These post replies need to be substantial and constructive in nature.
They should add to the content of the post and evaluate/analyze that post
answer. Normal course dialogue doesn’t fulfill these two peer replies but is
expected throughout the course. Answering all course questions is also required.
Course Materials
Required:
Grant, R. M. (2019). Contemporary strategy analysis (10th ed.) Hoboken, NJ: John Wiley & Sons.
ISBN: 9781119495727
I need two replays for my classmates:
The first student Dalal
Organizational Strategy: Saudi Aramco
Virtually every business organization strives to achieve organizational success
and stay ahead of competition. Organizational strategy provides direction to achieving
this prospect as it sets out how the organization intends to utilize its resources, such as
knowledge, skills, financial and material assets.
Organization and its Ownership
Saudi Aramco is a state-owned company and a multinational petroleum and
natural gas producers headquartered at Dhahran, Saudi Arabia. Saudi Aramco’s profit is
as a result of a large share involving the Saudi government’s budget which makes it have
a monopoly on the country’s oil. Ahmed, Sultana and Khan (2018) asserted that the
company is currently among the top leading business organization in the world with its
net worth estimated to be $ 2 trillion which is makes it bigger than Microsoft and Apple
each with an estimate value of 1.2 trillion. The high valuation of the company is
attributed to the unmatched profitability enhanced by effective organizational strategy.
Products/Services
Saudi Aramco deals with a variety of products and services that forma the back
bone of its operations. The company produces oil and through its unmatched supply of
crude oil into the global market, the company has built its reputation. On the same note,
the company is the sole natural gas supplying Oil Company in Saudi Arabia and it is the
seventh largest in the world (Alsereihy & El Emary, 2012). Saudi Aramco is also a key
player in the global pharmaceuticals where it is committed to the realization of the
hydrocarbon produced. Nevertheless, the company deals with refined products, retail
fuel, base oils, converge and power systems.
Organizational Strategy
There are multiple strategies that the company uses to create value for its products
and services and to ensure that it remains committed to be the world leading oil and
petrochemical producers. Its strategic intent aims at becoming an agile organization in
future and an integrated global-scale refining as well as chemical business. On the same
note, the company aims at becoming the leading company in technological development
and making the country energy-efficient which will support industries and help KSA
more export oriented (Moshashai, Leber, & Savage, 2020). The company realize this
vision through innovate culture as well as philosophy in designing and managing its
products through a continuous total quality and continuous quality improvement. Aramco
also protects its products using advanced technological process. Besides, the company
ensures that it maintains its public image by providing high standard and quality products
and services. Nevertheless, Aramco continues to diversify its operations and take the
company to untapped international market.
The Impact of Saudi Vision 2030 to the Organizational Strategy
Saudi Vision 2030 focuses on creating more jobs, bolstering the private sector,
bringing economic diversification and investing in the sector that can propel KSA to
become globally competitive. Owing to that, most of the strategies made by Saudi
Aramco are in line with this vision considering that the company is state-owned
(Nurunnabi, 2017). Specifically, Saudi Aramco developed it’s strategies to create more
jobs for people, generate more revenue to support other sectors of the economy and to
bring about diversity through the production of chemicals.
Organizational Strategy and Saudi Vision 2030
Saudi Aramco organizational strategies support Saudi Vision 2030 in multiple
ways. For instance, as the company continues to grow its downstream business it
enhances diversification as well as sustainable economic future. According to Moshashai,
Leber and Savage (2020) the company has started to diversify Saudi economy beyond oil
through its entry into chemical and becoming fully integrated as global petroleum and
chemical industry. As a result, the company created many jobs while generating huge and
maintain competiveness. On the same note, the company has developed advance
technology as well as innovation that enhanced sustainable development in the Kingdom.
References
Ahmed, J. U., Sultana, H., & Khan, M. M. (2018). Saudi Aramco: A Blend between
Profit and Politics. FIIB Business Review, 7(2), 88-99.
Alsereihy, H. A., & El Emary, I. M. (2012). Effectiveness of knowledge management
strategies on business organizations in KSA: critical reviewing study. Middle-East
Journal of Scientific Research, 12(2).
Moshashai, D., Leber, A. M., & Savage, J. D. (2020). Saudi Arabia plans for its
economic future: Vision 2030, the National Transformation Plan and Saudi fiscal
reform. British Journal of Middle Eastern Studies, 47(3), 381-401.
Nurunnabi, M. (2017). Transformation from an oil-based economy to a knowledge-based
economy in Saudi Arabia: the Direction of Saudi Vision 2030. Journal of the
Knowledge Economy, 8(2), 536-564.
The second student Mona
Almarai Company
Almarai is Middle East company for food, beverage manufacturer, distributor and
the world largest vertically integrated dairy company. The company was founded in
1977, and since that time consumers had across the region coming to recognise the
Almarai brand as synonymous with quality. Almarai company is live and work by the
maxim: “Quality you can trust” every day. A quality culture exists throughout the
Company.
Almarai company begin with a strategic decision making by the senior
management and the Board of Directors, which extends across their manufacturing,
farming, distribution operations and is integral to the development of their employee’s
professional skills. Moreover, they have similarly high expectations of their suppliers and
vendors, and exercise rigorous quality control measures across their procurement
activities.
The headquarters of Almarai company is located in Riyadh, Saudi Arabia, also
they are active in five categories across the Middle East and North Africa (MENA)
region: Bakery, Dairy, Poultry, Juice and Infant Nutrition. Moreover, in Egypt and Jordan
they operate through their joint venture International Dairy & Juice (IDJ) for Dairy and
Juice products. In addition, their main Bakery segment, L’usine products, they operate
through their joint venture, Modern Food Industries (MFI), for 7Days products.
The Strategy of Almarai Company
Almarai company announced in 2011 that they will invest heavily in Saudi Arabia
to increase dairy production in the country. Moreover, the company made an
announcement that they will acquire a large farming company in Argentina. By 2014,
Almarai company-controlled 44 percent of the dairy market in the Gulf region.
Between 2006 and 2016, Almarai company grew rapidly, it was announced that
the total staffing numbers had reach 38,000, which means the company create over thirty
thousand jobs in decade. Later in 2016, the company announced that they will acquire
land in the United States to expand its farming operations.
In late 2017, the Kingdom of sovereign wealth fund announced that they will
acquire a large share in Almarai, which increase their share to 16.32 percent. It was said
that there was a diversity in Saudi Arabia wealth away from oil investments, as the shares
rose 4 percent following the announcement.








In 2018, according to a poll that was carried out by the British market research
company, YouGov, that Almarai company was the most popular brand in the Saudi
Arabia for the third year in a row. Later that year, it was also announced that Almarai is
planning to invest $2.8 billion in Middle Eastern production facility.
Between 2019 and 2023, Almarai company will focuses on the production
facilities at farm in the region, also they will distribution and transportation in the region.
So, it will be easier to expand geographically throughout the Middle East.
Almarai Company and 2030 Vision
Water Management
In line with Saudi Arabia’s Vision 2030, and considering Saudi Arabia’s current
and impending water challenges, water management, conservation and stewardship are at
the forefront of our environmental goals.
Increase water efficiency across our Manufacturing, Sales, Distribution and Logistics
Divisions by 15% by 2025 (against a 2018 intensity baseline).
Initiate and support collaborative efforts with stakeholders to address water risk and
enhance conservation by 2025.
Packaging Innovation
Packaging waste is a global challenge that we are committed to help resolve. This
requires a holistic approach to be taken by understanding how consumers use our
products in conjunction with the requirements of our supply chain. By using innovative
designs, materials and technologies we can not only reduce the amount of materials
entering the waste stream but contribute to greater supply chain efficiency. Packaging is
an essential material that protects and preserves our products throughout the supply
chain, which is why we are continually improving our packaging solutions to maintain
the best possible freshness and taste.
Avoid the use of 9,000 metric tons of plastics from entering the consumer waste stream
by 2025 (against a 2015 baseline).
Actively support the transformation of the packaging economy in KSA by 2025.
Climate Change
Almarai continually work on reducing the environmental footprint of our
business, in part, because we are conscious of the inherent risks from climate change.
Rising fuel costs and the greenhouse gas emissions associated with fuel and electricity
consumption have an impact not only on the environment but also on our financial
bottom line. We are focusing on efficient energy consumption, generation from
sustainable sources and driving an energy culture.
Transport and Refrigeration
Explore and trial alternative fuel vehicles for our sales transport fleet on an ongoing
basis.
Increase the fuel efficiency of our sales, distribution and logistics vehicles by 10% by
2025 (against a 2018 baseline).
100% of our sales depot cold stores will be CFC free by 2025.
Energy
Reduce energy consumption across our Manufacturing, Sales, Distribution and Logistics
Divisions by 15% from efficiency measures by 2025 (against a 2018 intensity baseline).




Increase the share of electricity from clean energy sources across our Administration,
Manufacturing, Sales, Distribution and Logistics Divisions to 20% by 2025.
Achieve ISO 50001 certification for our Administration, Manufacturing, Sales,
Distribution and Logistics Divisions by 2025.
Waste Management
Almarai conscious of understanding where our waste goes and reviewing this against
the waste hierarchy to see how we can prevent, recycle and recover where possible. In
particular, we have a strong focus on food waste. One of the most effective ways of
reducing food waste is prevention. To this end, we are working hard to ensure that our
demand forecasting is highly accurate to avoid food waste generation and unnecessary
cost to the business and the environment.
Reduce waste going to landfill across all our divisions by 50% by 2025 (against a 2018
baseline).
Sustainable agriculture
Almarai owns Fondomonte, who operate our arable farms primarily located in
Argentina and the United States. They ensure that we produce the highest quality feed for
our dairy herds in Saudi Arabia, while respecting the communities and environments
where our feed is grown.
Enhance sustainable practices on our arable farms by 2025.
Reference
Alotaibi, H. (2019). Organisational Structure and the Strategic Planning Process in
Almarai Company of Saudi Arabia. Business Administration Department, College
of Business, Umm Al-Qura University, Makkah, Saudi Arabia. Retrieved
from https://pdfs.semanticscholar.org/851e/50608955a5cd6e30cbd867e55125b83
99553.pdf
Fabbe, K, Al-Amin, S, Cekin, E & Kindred, N. (2018). Almarai Company: Milk and
Modernization in the Kingdom of Saudi Arabia. Harvard Business School Case
719-020. Retrieved
from https://www.hbs.edu/faculty/Pages/item.aspx?num=55336
Singh, A & Hagahmoodi, O. (2017). Performance Measurement of Almarai Products and
Customer Satisfaction. College of Business Administration, University of Hail,
Hail City, Saudi Arabia. Retrieved
from https://pdfs.semanticscholar.org/8197/e25c0dcb132f670e88e724faa13ec6d6
c8aa.pdf

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