HRMT 4338 HUMAN RESOURCE PLANNING Course Project (30 %) LK Business Supplies is a company selling commercial stationery to offices in and around ALKhobar, Eastern Province, Saudi Arabia. Most of its...

18
Student Name:
Course ID:
Assessor Name:
Submission Date:
Executive Summary
This report is made with respect to the organisation named LK Business Supplies which
deals with office and stationary supplies. The organisation is in disarray at the current
moment and has been taken in control over by Mr Chuck Wentworth. A large sum of money
is going to be invested in this business which has been in market since 2010. The business
has been growing very quickly and has been due to the efforts of the two brothers Sam
Millwood and Walt Millwood. The founder of the company is Mr Walt Millwood and his
brother who was the acting Manager. Due to unfortunate circumstances, Mr Sam Millwood met with a tragic car accident and passed away. This has been a major shock to all the colleagues and his brother. The business was mainly run by Sam Millwood and the business was in his head. It was a mistake that the business plan and the business idea, the client list and the procurements weren’t listed down in written format. Due to old style of running business, future planning was not done regarding the next step in the business. Hence when Mr Sam passed away, the business lost its backbone.
Now due to Mr Chuck’s purchase and recent investments, a full furbished business plan is made which has been drafted and shown in this report.
Table of contents
Introduction--------------------------------------------------------------------------------4
PESTLE Analysis-------------------------------------------------------------------------5
Future Trends-----------------------------------------------------------------------------7
Key Problems and impact on Growth / Profitability------------------------------7
Organisation Structure------------------------------------------------------------------8
New Positions -----------------------------------------------------------------------------10
Competency Based Job Descriptions-------------------------------------------------11
Advantages of Succession Management---------------------------------------------12
Proposed Succession Management -------------------------------------------------- 13
Conclusion---------------------------------------------------------------------------------14
References---------------------------------------------------------------------------------15
Introduction
The case talks about LK Business Supplies and their supplies in the Saudi Arabia. The business is currently in disarray as the manager who handles the business is no more and a whole new system has to be redesigned. The report helps in understanding the environment and the business strategies that have taken place. Multiple variables have been taken into consideration and a well devised business structure is formed which will enable the firm to perform better and develop further.
PESTLE
Pestle analysis stands for Political, Economic, Social, Technological, Legal and environmental analysis for a region and the business. The PESTLE analysis gives us the current situation and the implementation of the business plan in the region. The tool is used to track the environment in which the business is being implemented. There are many macro-economic principles that are being applied at one time which affects the implementation of the plan. New Laws, Tax changes, Trade Barriers, Demographic changes. The macroeconomic factors tend to have a long term impact on the business. By understanding the PESTLE framework, businesses can minimise the threats to the business plan and maximise the opportunities to the business.
Political: What can be the possible political factors that affect the business?
Economic: Economic factors that could harm the business?
Social: Cultural aspects that affect the way business is done?
Technological: Technology developments in order to boost the business?
Legal: Can the legal framework support / destroy the organisation?
Environmental: What are the environmental conditions that can affect the organisation?
PESTLE Analysis for the business:
Political: The political condition of Saudi Arabia is Monarchy based. The government is run by the Monarch and his advisors. The rules and regulations are drafted by the monarch and are subject to change when deemed necessary. The monarchy has applied business friendly government regulations to promoted trade. Saudi Arabia is known as a kingdom and this kingdom has been divided into 13 provinces which has been administered by a special governor appointed by the king. Provinces are further divided into governorates, districts & centres. The leaders of the respective provinces can make recommendations on the projects in their provinces and suggest improvements in the annual budgets.
 Mohammed Bin Salman achievement: The Saudi’s crowned prince has many achievements in his bag! A few of the most cherished achievements are:
    1. Saudi 2030 – Making Saudi independent from the dependency of Oil
    2. Saudi PMO – Putting consultancies in position to bring efficiency in system
    3. Saudi Women Driving – Removal on the world’s only ban on women’s driving
    4. VOIP: Lifting of ban on the Skype, Whatsapp and other applications.
Economic: Since the discovery of oil in the year 1938, Saudi Arabia has grown to be one of the wealthiest countries of the world. Saudi Arabia is responsible for the production of 5% of the total petrochemicals in the world. The economy is a capitalist economy and the GDP was growing at the rate of 3.7%. Approximately 40% of the GDP comes from the private sector projects. After many years of negotiations, Saudi Arabia became a part of the WTO in 2005 to promote foreign investments and promote trade. the oil prices rose as Saudi says that production curbs may last till 2019. The oil prices rose by 1% and are thought to further increase till 2019. US and China both signed a memorandum for imports from each other and the prices for Brent crude too went up by 0.9%
Social: Saudi Arabia is an Islamic state and works on the principles of Quran. In adherence to maintain the social stability rapid economic changes have been a part of the consistent changes that Saudi Arabia has been bringing. Even though many distinctive income groups are present in Saudi Arabia, they are all tied with a kinship, religion.
The religious values of Saudi Arabia is well known and the citizens are a mix of foreigners plus the local citizens. People from varied countries and varied backgrounds come to Saudi Arabia to build their lives.
One of the top achievements of Mohammad Bin Salman was to remove the ban on women driving in Saudi Arabia. The long outstanding policy that was a symbol for global oppression in an ultraconservative kingdom came to an end on Tuesday. Saudi’s leaders hope that the contribution of women towards increasing the GDP would lead to better economy. Saudi officials have explained numerous reasons for the ban, but now all that is of no use as the new law allows the women to drive.
Technological: Being one of the wealthiest nations, Saudi Arabia also has to defend itself. With the advent of modern artillery and arms, Saudi Arabia is one among the world’s densely armed nations. The introduction of internet was in the year 1999, but due to rapid developments in all sectors, internet penetration took place with a rate of 3750% by 2000.
Legal: The legal system of Saudi is based on the Share ’a which is a learning derived from the Quran, Sunni and Ejtihad. The commercial legal system is very much different from the civil system, but some overlapping’s do take place. The legal system is also influenced by the western culture, due to increased foreigners after the discovery of oil. At the current time there is no exchange control regulations governing the movement of funds, profits and capital. Immigration: Companies are bound to register the contract with their employees with the...