Case Analysis Of Saudi Basic Industries Corporation
SAUDI BASIC INDUSTRIES CORPORATION
Saudi Basic Industries Corporation (SABIC) was established in 1976, and the main reason behind its establishment was to add value better and improve the Saudi Arabia's natural hydrocarbon resources. Currently, SABIC is leading petrochemical company in terms of product diversity and sales. The company is headquartered in Riyadh, and it is the largest non-oil corporation in Middle East, in terms of market capitalization, SABIC has more than $100 billion and it records total assets of $ 33 billion. SABIC is the seventh largest petrochemicals manufacturer company in the globally, sixth in polypropylene production, third in polyethylene, and it is the fourth in overall polyolefin's production in the global context. …show more content…
Currently, the company has 18 world-scale manufacturing units in Saudi Arabia. Six are joint ventures; three ventures are fully owned by SABIC and others are partnerships both in local and internal corporations. The company made an acquisition in 2002 and increased its manufacturing complexes at Gelsenkirchen in Germany and Geleen in the Netherlands. The business of SABIC is divided into six strategic business units, and they receive support from corporate departments and shared corporation services. The SABIC business units include Intermediaries, Chemicals, Fertilizers, Polyester, Metals and PVC. The company is focused on the products as a differentiation strategy that is aimed at ensuring that it meets the diversified needs of the customers in diversified market of the global …show more content…
Sometimes the company does not adopt market-oriented decisions because the government is more of a welfare institution. Political affiliations sometimes play a crucial role in strategic decision making of the company. The profitability and productivity of the company are likely to decrease because government dominance unless the government reduces its shares in the company, the future is unforeseen (Alzomaia, 2014).
According to Khan, Al-Maimani, and Al-Yafi (2013), competition has also curtailed the performance of the organization such that many organizations have focused on the investing in the company. Due to high competition in the industry, there has been an emergence of substitute in the market something that reduces the sales of the company. Competition has increased scarcity of the raw materials and the prices because of high demand for the
Saudi Basic Industries Corporation (SABIC) was established in 1976, and the main reason behind its establishment was to add value better and improve the Saudi Arabia's natural hydrocarbon resources. Currently, SABIC is leading petrochemical company in terms of product diversity and sales. The company is headquartered in Riyadh, and it is the largest non-oil corporation in Middle East, in terms of market capitalization, SABIC has more than $100 billion and it records total assets of $ 33 billion. SABIC is the seventh largest petrochemicals manufacturer company in the globally, sixth in polypropylene production, third in polyethylene, and it is the fourth in overall polyolefin's production in the global context. …show more content…
Currently, the company has 18 world-scale manufacturing units in Saudi Arabia. Six are joint ventures; three ventures are fully owned by SABIC and others are partnerships both in local and internal corporations. The company made an acquisition in 2002 and increased its manufacturing complexes at Gelsenkirchen in Germany and Geleen in the Netherlands. The business of SABIC is divided into six strategic business units, and they receive support from corporate departments and shared corporation services. The SABIC business units include Intermediaries, Chemicals, Fertilizers, Polyester, Metals and PVC. The company is focused on the products as a differentiation strategy that is aimed at ensuring that it meets the diversified needs of the customers in diversified market of the global …show more content…
Sometimes the company does not adopt market-oriented decisions because the government is more of a welfare institution. Political affiliations sometimes play a crucial role in strategic decision making of the company. The profitability and productivity of the company are likely to decrease because government dominance unless the government reduces its shares in the company, the future is unforeseen (Alzomaia, 2014).
According to Khan, Al-Maimani, and Al-Yafi (2013), competition has also curtailed the performance of the organization such that many organizations have focused on the investing in the company. Due to high competition in the industry, there has been an emergence of substitute in the market something that reduces the sales of the company. Competition has increased scarcity of the raw materials and the prices because of high demand for the