See attached word file APA style with high quality wording (Master Degree) Zero...

Question

See attached word file

APA style with high quality wording (Master Degree)

Zero plagiarism

Too many references and citation

6 pages in length, excluding the title page, abstract and required reference page, which are never a part of the minimum content requirements.

Classification: Internal Use Course: Strategic Planning- MGT 510 CRITICAL THINKING - 3 Regulations: · This assignment is an individual assignment. · All students are encouraged to use their own words. · Student must apply academic writing standards and APA style guidelines. · Support your submission with course material concepts, principles, and theories from the textbook along with at least two scholarly, peer-reviewed journal articles. · A mark of zero will be given for any submission that includes copying from other resource without referencing it. · Write at least 6 pages in length, excluding the title page, abstract and required reference page, which are never a part of the minimum content requirements. · It is strongly encouraged that you should submit your assignment into the safe assignment Originality Check prior to submitting it to your instructor for grading. An Overview about Assignment submission Time & grades: Type of Assignment Posting date Due date Marks Grace period* Critical thinking 7th July 14th July 130 3 days * Grace Period: with accepted excuse (accepted by instructor) with deduction of 10% for late submission Critical thinking 3- WEEK 6: Multinational Corporation & Strategic implementation Consider yourself a management consultant. You have been commissioned by a domestic Saudi company to elaborate a report on the conditions necessary to successfully enter a ‘new’ market in foreign country. The senior management responsible asks you to assess the current strategy of the company, to produce realistic strategy and develop a plan for entering the new market (you have to select a particular foreign market on where your company will operate) To accomplish your tasks you have to: 1. Identify the pros and cons of the actual strategy of this company (choose a Saudi company from the real market) I choose SABIC petrochmical company 2. Present the key challenges you are likely to face when internationalizing the business? 3. Describe the optimum and realistic strategy to a successful entry in the new market. Justify your choice of this strategy. Note: the chosen strategy should be supported by your findings from research of relevant theories and models. 4. Develop the steps for entering this new market 5. Present recommendations to the senior management team to gain market share and improve the competitive advantage on the new market. The assessment of the answers will be highly based on the usage of terminology, models and theories developed in your course.

critical-thinking-3-week-6-5ssoaiu5.docx

Soumi · Accepted Answer

Running Head: MULTINATIONAL CORPORATION & STRATEGIC IMPLEMENTATION	1
MULTINATIONAL CORPORATION & STRATEGIC IMPLEMENTATION	3
MULTINATIONAL CORPORATION & STRATEGIC IMPLEMENTATION
Table of Contents
Abstract	3
Introduction	4
Pros and Cons of the actual strategy of SABIC petrochemical company	4
Key challenges likely to face when internationalizing the business	5
Optimum and realistic strategy to a successful entry in the new market.	7
Steps for entering new market	7
Recommendations	8
Conclusion	9
References	10
Abstract
This report focuses towards the business expansion and may be diversification of a leading petroleum and chemical company Saudi Basic Industries Corporation (SABIC). In this report, a potential new market for SABIC will be recommended along with the analysis of risk factors associated with international business expansion will be analyzed and respective recommendations will be made.
Introduction
In order to achieve maximum growth in business it is necessary to implement certain growth strategies, which can allow the business to grow exponentially. Saudi Basic Industries Corporation (SABIC) is a very well owned and also renowned petroleum organization that deals with domestic as well as international business. However, in order to grow exponentially, the organization needs to expand their business globally and to other countries continuously. 
This report focuses towards the international business strategies that SABIC can apply in order to expand their business in new market. Further, this report will provide the steps along with some recommendations for the senior management to imply while internationalizing the business in other market. 
Pros and Cons of the actual strategy of SABIC petrochemical company
Mahboub and Ahmed (2017) mentioned in their study that oil prices have fallen to a great extent and as a result, this has shaken Saudi petroleum companies and manufacturers and SABIC is no exception. Initially SABIC has faced an exponential growth due to the high oil prices in global market and therefore, this acted as a major factor for the company to withstand the petroleum market. 
However, as supported by Banafe and Macleod (2017), SABIC has not been able to sustain its financial condition due to falling oil prices and as a result, in 2014, its revenue fell by 0.5%. According to the report presented by IHS Markit (2015), SABIC has received 57% of its revenue from chemical segment that is by supplying chemicals in international market. 
Moreover, diversifications have been observed from SABIC since, 2014 and also diversification, innovation and strategic partnership is the new strategy that SABIC has adopted to sustain in the market (IHS Markit, 2015). In order to meet its objectives of diversification in new market, SABIC has restructured itself in 2014. 
There can be a number of opportunities and advantages for SABIC while following this strategy as company has abundant feed stocks and also compared to its competitors its profit margins are higher. SABIC has a strong position in the ethylene supply chain along with high-density polyethylene (HDPE), low-density polyethylene (LDPE) and a number of other chemicals. 
Further, due to heavy reliance on feedstock based on gas, company is very limited among its feedstock flexibility. Additionally, SABIC has always been stronger at the cash position and when combined with the feedstock availability, SABIC emerges as a much preferred joint venture partner. However, falling oil prices in the international market will decrease the company’s competitive advantage over other European and Asian countries. Moreover, due to investment in the chemical supply company can also be observed a little weak at cash point of view as SABIC has high managerial expenses in the chemical market.

Classification: Internal Use Course: Strategic Planning- MGT 510 CRITICAL THINKING - 3 Regulations: · This assignment is an individual assignment. · All students are encouraged to use their own words....

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