Firstly, it is an increase in the reliance on data analytics. Notably, more companies are using data analytics to keep up to date with emerging trends in the market. Secondly, it is the fact that consumers have access to more product information and hence they will make a comparison between different products that are found in the market. Thirdly, there has been rapid innovation in the business world (Markgraf, 2019). Notably, technology has been playing a vital role in the manner that business is conducted. For instance, the rise of eCommerce and ridesharing applications. Fourthly, it is the issue of climate change which often leads to an increase in food prices. Lastly, it is the emergence of a world that is more interconnected. That has been through the rise of internet use and social networking platforms.
Challenges for Firms in KSA
Given the aforementioned developments in the business world, firms in the Kingdom of Saudi Arabia will face different challenges. Firstly, they will have an issue with developing skills and competencies that can be used in the current business environment. For instance, in the current setting, there is a need for employees to be technologically savvy (Chan, 2013). Thus, it will require the firms in the kingdom of Saudi Arabia to make a huge investment in training. Secondly, it is the issue of understanding the business changes that are occurring in the business world. That is because many of the changes are happening so fast that they result in a lack of organization in companies. Notably, the lack of organization is due to the fact that most firms in Saudi Arabia are not flexible in the manner they conduct their business. Lastly, the firms in the Kingdom of Saudi Arabia will lack the financial resources that are required in the process of adapting to the changes in the business environment.
Strategies to deal with the Changes
There different strategies that the companies need to enforce in the process of dealing with the challenges that are brought about by the changes. Firstly, it is adding feedback loops. In that case, the firms in Saudi Arabia need to have constant communication with the clients so that they can keep track of the emerging trends in business. In that way, the firms can develop understanding and make the required changes. Secondly, there is a need for companies in Saudi Arabia to invest in training employees who will be able to work in the modern business environment. Such training will ease the manner that the company adapts to technological changes. One company that has started to make changes is Saudi Aramco which deals with fossil fuels (Meredith, 2019). In this case, the firm has started to diversify its investment options by moving to the production of clean energy. That has been in response to the issue of climate change. Hence, Saudi Aramco provides an example that can be emulated by other companies.
The implication of the Changes on the Firms
With the changes in the business environment, it will have an implication on the organizational structure. For instance, there are certain positions that are going to become obsolete due to the increase in the use of technology. As well, the organizational culture will change and in that case, organizations will need to enforce more accountability (Boss, 2015). Moreover, management systems will shift to become more collaborative in nature. Lastly, the leadership style will have to more transformative since it gives an allowance for errors that are bound to occur in the process of effecting change in the organization.
References
Boss, J. (2015, December 4). 6 Secrets Of Organizations That Successfully Adapt To Change. Retrieved from https://www.forbes.com/sites/jeffboss/2015/11/14/6-secrets-of-organizations-that-successfully-adapt-to-change/#16fde9762b0b
Chan, D. (2013, November 19). The challenges facing management in a rapidly changing business environment. Retrieved from https://www.cass.city.ac.uk/faculties-and-research/research/cass-knowledge/2013/november/the-challenges-facing-management-in-a-rapidly-changing-business-environment
Markgraf, B. (2019, March 5). Major Trends in International Business. Retrieved from https://smallbusiness.chron.com/major-trends-international-business-60529.html
Meredith, S. (2019, November 6). The US has Apple? Saudi Arabia will have Aramco, JP Morgan says. Retrieved from https://www.cnbc.com/2019/11/06/saudi-aramco-ipo-saudi-arabia-has-an-answer-to-apple-jp-morgan-says.html
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