Environment of Business in the Kingdom of Saudi Arabia

The key development in the global environment for the next five years is the technological improvement, development in environment protection and demographic and societal development in the Arabian countries. Technological development includes the introduction of innovative ideas and technology in order to make human life easier. The protection and conservation of the environment are going to be improved because of the adaptation of sustainable development goals (Masud et al, 2017).

The greatest challenges faced by the Kingdom of Saudi Arabia due to the developments are the increase in market competitions, financial instability and increase of unemployment percentage. Along with the development of innovations technology and ideas, the companies and organizations of the KSA have to face huge competition in the markets in order to launch the new product. The market competitions can raise the problem of financial instability and due to the demographic development; the unemployment ratio can be increased.

The Business strategy, operational strategy and transformation strategy can be adopted by the firms of the Kingdom of Saudi Arabia in order to prosper in the environment. Implications of the development of the organizational culture in the firm can be adhocracy culture or hierarchy Culture depends on the firm types and environment. The organizational structure of the KSA firm can be matrix structure or functional and divisional type of organizational structure. The leadership’s style type for the KSA firm can be autocratic and democratic leadership (Altarawneh, 2016).

Reference

Altarawneh, I. I. (2016). Strategic human resources management and its impact on performance: the case from Saudi Arabia. International Journal of Business Management & Economic Research, 7(1). 

Masud, M. M., Akhatr, R., Nasrin, S., & Adamu, I. M. (2017). Impact of socio-demographic factors on the mitigating actions for climate change: a path analysis with mediating effects of attitudinal variables. Environmental Science and Pollution Research, 24(34), 26462-26477.