Discuss About The Management And Organization In Global Environment?
The report is based on the analysis done on the expression by the management board of the construction company wanting to establish it business in Saudi Arabia. The establishment or expansion of the company in Saudi Arabia has various setbacks that can cause poor performance due to various economic reasons in the country.
Economic SWOT analysis of Saudi Arabia
The SWOT analysis of the Saudi Arabia economy indicates that the country is faced with enormous challenges that will affect the industrial operation and development of the organization. Some of the problems include; legal system “shariah” that is entirely dedicated from Islamic religion, income drop due over dependency of oil by the government and its estimated to 16.3% GDP deficit, and economy also lacks diversification in the market due to the oil income dependency (Al-Rasheed, 2010).
Saudi Arabia economy is an oil and dependent, and it is estimated to control about 18% of the world oil production. The construction industry in Saudi Arabia also has numerous setbacks such inflation which impacts the company a lot of great resources while running its operations and also the poor or falling currency of the country in the international marketing will be very bad to the company’s income generation. Also, the population poverty level will exhibits a lot of low market for company since very few major activities in construction and development are taking place in the country (Altowaijri, 2011).
According to the research and analysis did construction business one of the lists expected businesses in Saudi Arabia that can be able to survive. The growth rate of the nation is very slow, and also real estate business is not likely to generate any income due to the poverty level of the population and lack of diversification in development activities (Bremmer, 2009).
The income generation to the construction to the government through the construction industry has gone bad and that the also means the income to the industry has also been affected or become worse according to the GDP statistics on construction industry in Saudi Arabia (Niblock and Malik, 2007).
Al-Rasheed, M., (2010). A history of Saudi Arabia. Cambridge University Press.
Altowaijri, H.A., (2011). Determinants of inflation in Saudi Arabia. World Review of Business Research, 1(4), pp.109-114.
Bremmer, I.,(2009). State Capitalism Comes of Age: The End of the Free Market?. Foreign Affairs, pp.40-55.
Niblock, T. and Malik, M., (2007). The political economy of Saudi Arabia. Routledge.