(Mt) – Management Competitive Edge Over Other Companies Strategy Planning Paper

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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 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 #038; 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 #038; 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, #038; 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., #038; Khan, M. M. (2018). Saudi Aramco: A Blend between Profit and Politics. FIIB Business Review, 7(2), 88-99. Alsereihy, H. A., #038; 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., #038; 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 #038; 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). 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 #038; 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 #038; 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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