Answer To: Classification: Internal Use Course: Strategic Planning- MGT 510 CRITICAL THINKING-1 Summer Term...
Soumi answered on Jun 14 2021
Running Head: STRATEGY AND INDUSTRY ANALYSIS 1
STRATEGY AND INDUSTRY ANALYSIS 2
STRATEGY AND INDUSTRY ANALYSIS: A CASE STUDY ON SABIC
Table of Contents
SABIC’s Performance Evaluation 3
1. Attaining Clear, Consistent and Long-Term Objectives 3
2. Profound Understanding of Business Environment 3
3. Objective Appraisal of Resources 4
4. Effective Implementation 4
Assessment of SABIC’s Performance in Context of Porter’s Five Forces 5
1. Level of Competition 5
2. Risk Generated by Alternative Products and Services 6
3. Bargaining Power of SABIC’s Buyers and Suppliers 6
4. Threat of New Businesses starting in Petro-Chemical Industry 7
References 8
SABIC’s Performance Evaluation
1. Attaining Clear, Consistent and Long-Term Objectives
SABIC has been very consistent in it attaining its goals, which are projected clearly, retained consistent and long-term in nature. SABIC’s long-term goals are based on four fundamental aspects that have been prioritized by the company- economy, people, society and nature, which blends into the perfect formulation of business strategy that aims at sustainability, an objective, which is long-term, clear and consistent (SABIC, 2018). Despite the gradual increase in the size of the company, SABIC has retained dedicated in retaining its long-term goals.
Considering the aspect of sustainability, which is a direct reflection of its long-term objectives, SABIC is seen considering the global concerns very seriously, investing in innovation, recycling and global standards abidance. As mentioned by D’Arconte (2018), in order to maintain any corporate social responsibility, a business must generate ample profit for sustaining its system functionality. In order to sustain an environment friendly business approach and innovation, SABIC has maintained earning profit each year, registering satisfactory growth (SABIC, 2018). The earning of ample profit has also given SABIC the capacity to maintain consistent innovation in its business, while retaining higher quality of human resource management and social contribution.
2. Profound Understanding of Business Environment
Judging from the aspect of understanding of the market, SABIC has proven its efficacy, as the company, has gradually penetrated markets, developed new products, used its capital for stability and used its unique selling points properly. The company has selected markets, which have demands for its products, and has expanded its business beyond the Middle East, focusing on country markets, which have developed demands for petro-chemical by products. SABIC is found to have functioning profitable markets in Canada, USA, Mexico, South Africa, India, Australia and China, hinting at the company’s presence in almost all continents (SABIC, 2018).
In the vision of SABIC, the careful recording of the future increase in demand, market competitiveness and changing dynamics of businesses. It can be found that SABIC has been aiming to increase its market shares in BRICKS countries, especially India, for its population poses higher market demand potential for the future (Saudi Gazette,...