The future of business in the Kingdom of Saudi Arabia

The future of business environments is expected to be different from now due to the many changes that are happening. The interconnection of processes such as exchange of finance, technology, goods, and services is continually increasing. The increase in the interconnection of the mentioned processes will increase opportunities for business by improving their revenues due to the expansion of the customer base. Companies should be ready to withstand the change that comes by creating new strategies and striving to implement them as required. The latest trends will affect all businesses. The main factor causing the change is innovation happening in all parts of the world (Grant, 2016).

The most common change will be that in innovation. Most industries will have embraced the new technology. Using advanced technologies will have led to an increase in the quality of goods produced as well as the services offered in all areas. Also, the market for the products and services will have increased due to the awareness created through social media platforms. Businesses using the media for advertisements will have the most customers since most of them prefer doing their things online. The demand for data analytics will have significantly increased. Therefore all businesses need to have been well prepared by looking for the best data analytics. Also, their marketing game should have improved considerably. A company can have the best advertising online by having the most competent users of the platforms. Also, companies will need to enhance their branding so that it can attract most of the users online (Neupert, 2016). 

Due to an increase in the market for goods and services, more companies will be formed. Formation of more companies means that KSA will have challenges such as competition from other companies in the industry. Lack of competitive advantage may make KSA lose its market for goods. Increase in the number of more profitable businesses will attract more investors there; thus, KSA will have fewer investors, especially from foreign countries. All organizations will need to invest in advanced technologies. Companies like Apple will be an example in the future.

 References

Business trends | Deloitte. (n.d.). Retrieved from https://www2.deloitte.com/global/en/pages/strategy/topics/business-trends.html

Grant, R. M., & Neupert, K. (2016). Cases in contemporary strategy analysis. , : Wiley-Blackwell.

Technology advancement and IoT in the Kingdom of Saudi Arabia

The business environment is constantly changing and this will result in new developments. In the next five years, technological advancements and the Internet of Things business will have many devices interconnected and this will improve service delivery and quality (Chin, Callaghan, & Allouch, 2019). The changes in demographics will also affect the global business environment because the population will have significantly increased in the next five years. Besides, a new generation of the population with diverse needs and preferences will be available. However, due to advanced industrialization countries will face big challenges.  other key developments include Artificial Intelligence and automation. 

Firms in KSA will face the greatest challenges due to advanced industrialization, advanced technology and IoT, and demographic changes. For instance, advanced technology and IoT will put the firms’ data and information susceptible to hackers. Also, the demographic factors will present challenges to these firms because they will deal with unique shopping preferences. Artificial Intelligence and automation is likely to displace works and result in unemployment in KSA.

To adopt and prosper in the future business environment, firms need some strategies such as making use of technology and state of art devices that are not easy to hack, customer relationships, coping with technological change, and brand creation (Grant, 2016). Yes, there are some companies today with appropriate approaches to management and strategies. One of these companies is Apple, which has been able to create a movement that has enabled the company to succeed in the changing business environment. It has a follower strategy since they have created a notion that their products re life-changing and visionary. Hence it will provide leading examples for other companies.

Technology advancement and IoT will have implications on the organizational culture and management systems of companies in KSA. For example, in the next 5 years, millennials will form the majority of the firms’ workforce and hence technology will force the management to set rules to minimize using of devices such as phones to increase work efficiency (Widen, 2017). 

References

Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.

Chin, J., Callaghan, V., & Allouch, S. B. (2019). The Internet-of-Things: Reflections on the past, present, and future from a user-centered and smart environment perspective. Journal of Ambient Intelligence and Smart Environments, 11(1), 45-69.

Widen, S. (2017, October 5). How Technology Impacts Work Culture. Retrieved November 26, 2019, from https://www.forbes.com/sites/forbesagencycouncil/2017/10/05/how-technology-impacts-work-culture/#606c7601721a

The management of technology and innovation

To implement the changes effectively, the company must change its organizational structure to a flatstructure that facilitates faster, more effective communication and better teamwork (White & Bruton,2011). The most suitable culture in a globalized world is one of open communication, innovation,and teamwork. The appropriate leadership style in the globalized business environment is democratic leadership because it creates a conducive environment for an appropriate structure and culture.

A new direction in the strategies used in an organization will lead to the adoption of the new strategy by the management team. This will happen if the strategy is evaluated and is anticipated to bring a positive outcome to the organization involved (Hayes, 2018). Also, a new direction in the implementation of the strategy that will lead to achieving the goals of a business will lead towards its adoption. The change management will consider such a strategy in implementing the necessary changes established in an organization. Change management considers those strategies that will lead to the achievement of set objectives.

The firm must cope with the changing trends in the business environment in order to achieve a competitive advantage over its rivals. I would like to add that the openness to the other cultures will also associate with achieving the competitive advantage and retaining it as well. It is necessary for multinational companies to overcome cultural barriers in order to achieve success. I believe that overcoming the cultural obstacles will lead to better interaction with the customers, hence achieving higher returns. According to Goran, LaBerge, & Srinivasan (2017), getting close to the customers will improve the relationship between the company and its customers, thus considering their needs while creating the products and services.

 Reference

Goran, J., LaBerge, L., & Srinivasan, R. (2017). Culture for a digital age. McKinsey Quarterly (10), 1-10. Retrieved from https://lediag.net/wp-content/uploads/2018/05/0-Culture-for-a-digital-age.pdf

Hayes, J. (2018). The theory and practice of change management. Palgrave.

White, M., & Bruton, G. (2011). The management of technology and innovation. Mason, OH: South-Western Cengage Learning.

Going Out by Going In Business Model Innovation in the Kingdom of Saudi Arabia

Technology as a whole is moving rapidly. Innovations such as ridesharing and automated vehicle technology, for example, are reaching the market much more quickly than innovations of years past. Barriers that once took decades to overcome are now being tackled in years–like the issue of autonomous vehicles coexistence with pedestrians.

In the enterprise space, this perpetual sprint forward means that western companies can no longer automatically consider themselves at the forefront of technological innovation. In fact, the U.S. is not a leader in either manufacturing or service industry innovation.

With such rapid, global innovation, professionals must have robust business management skills that include the ability to identify and implement international technologies to aid businesses worldwide. Many industries take a rushed approach—believing that this pace is necessary to remain at the forefront. What it actually tends to do, however, is create holes and uneven production workflow, producing limited positive results and even leading to lost data or information.

While the speed of innovation is important, it is more vital that organizations understand where the market disruptors are coming from, why they are producing such an impact, and how the technology may better serve the enterprise.

Enterprises are not the only aspect of the global market to have access to more information; consumers are now increasingly connected. The data indicates that 77 percent of Americans own a smartphone. While this number tends to be lower in developing countries, global business management specialists must consider that consumers have instant access to information such as price, quality, and competitor information on any given product.

This places more pressure on companies to remain active online and to promote a positive brand image and product presence in every social arena. The constantly connected consumer not only has product information readily available, but also has instant access to trends, brands, and other companies. Customers are able to share their own experiences and hear the experiences of others on-demand via highly engaged social media communities and easily accessible news outlets.

References

Meyer, M. W. (2017). Going Out by Going In Business Model Innovation with Chinese Characteristics. Thunderbird International Business Review, 59(4), 473-482.

 

The Changing Business Environment in the Kingdom of Saudi Arabia

Government-controlled enterprises in Saudi Arabia are increasingly introducing local content requirements for foreign firms.  Aramco’s “In-Kingdom Total Value Added” program, for example, strongly encourages the purchase of goods and services from a local supplier base and aims to double Aramco’s percentage of locally-manufactured energy-related goods and services to 70 percent by 2021.  Saudi Arabia’s military is reforming its procurement processes and policies to incorporate new Saudi employment and localized production goals.  The SAG’s Vision 2030 program calls for 50 percent of defense materials to be produced and procured locally by 2030, and simultaneously seeks comparable increases in the number of Saudis employed in this sector.

Saudi Arabia continues to move toward adherence to a single standard, which is often based on International Organization for Standardization (ISO) or International Electrotechnical Commission (IEC) standards, in technical regulations to the exclusion of other international standards, such as those developed by U.S.-domiciled standards development organizations (SDOs).  Saudi Arabia’s exclusion of these other international standards, which are often used by U.S. manufacturers, can create significant market access restrictions for industrial and consumer products exported from the United States.

Reference 

Saudi Arabia-Market Challenges retrieved from https://www.export.gov/article?id=Saudi-Arabia-Market-Challenges

Performance and localization requirements retrieved from https://www.export.gov/article?id=Saudi-Arabia-Market-Challenges

Key Developments of Business in the Kingdom of Saudi Arabia

At the beginning of the millennium, Saudi Arabia’s economy saw a surge in profits and prosperity due to the rising prices of oil and increased demand for the resource across the globe. Drawing on Saudi Arabia’s ample natural supply, the oil boom from 2003 to 2013 launched the Kingdom into the most prosperous state it had seen in years, making it the 19th-largest economy in the world.

During this period, the GDP doubled led to increased job opportunities. With government investment in education, infrastructure and healthcare, the country saw an increase of 1.7 million new jobs and the average household income rose by 75 percent.

Saudi Arabia continues to move toward adherence to a single standard, which is often based on International Organization for Standardization (ISO) or International Electrotechnical Commission (IEC) standards, in technical regulations to the exclusion of other international standards, such as those developed by U.S.-domiciled standards development organizations (SDOs).  Saudi Arabia’s exclusion of these other international standards, which are often used by U.S. manufacturers, can create significant market access restrictions for industrial and consumer products exported from the United States.

Government-controlled enterprises in Saudi Arabia are increasingly introducing local content requirements for foreign firms.  Aramco’s “In-Kingdom Total Value Added” program, for example, strongly encourages the purchase of goods and services from a local supplier base and aims to double Aramco’s percentage of locally manufactured energy-related goods and services to 70 percent by 2021.  Saudi Arabia’s military is reforming its procurement processes and policies to incorporate new Saudi employment and localized production goals.  The SAG’s Vision 2030 program calls for 50 percent of defense materials to be produced and procured locally by 2030, and simultaneously seeks comparable increases in the number of Saudis employed in this sector. 

References 

Saudi Arabia - Market Challenges https://www.export.gov/article?id=Saudi-Arabia-Market-Challenges

Key Development Projects in Saudi Arabia https://quincygroup.com/6-key-development-projects-in-saudi-arabia/

Perspectives on Business in the Kingdom of Saudi Arabia

Business environments continue to change over time due to many circumstances and factors. Factors such as a change in the market as well as the new technology, are the key influencers. Businesses need to develop new strategies or improve the current policy so that they withstand the change without affecting their business environment negatively. Not even a single company can evade the coming change due to new trends in businesses (Grant, 2016).

     Changes to come in the next five years include a massive market for goods and services offered by companies since the market is multiplying. Another difference is that most companies will be depending more on data analytics; thus, every company will need to find competent data analytics. There will be so many innovations that will have been made; hence, it is good to build strategies that can keep up with the changes. Consumers will have more access to information about products online. Therefore, a business needs to know how it will build its image and have its brands on all social media platforms. It should also be always online and have an active website for all customers. Due to an increase in the markets, more companies will be formed.

     KSA will face challenges such as competition from companies in other countries. This may make KSA lose customers from other countries if it does not have a low-cost advantage of competitive advantages. Also, most states will not invest in KSA due to the many companies in the country which are competing with foreign companies in the same region, considering that there is the existence of trade restrictions (Grant, 2016). Organizations in KSA should invest more in advanced technology to ensure that they are not left out. There exists companies whose approach to management and strategies are exemplary. A company like Starbucks will be an example of other companies in the future.

References

Business trends | Deloitte. (n.d.). Retrieved from https://www2.deloitte.com/global/en/pages/strategy/topics/business-trends.html

Grant, R. M., & Neupert, K. (2016). Cases in contemporary strategy analysis. , : Wiley-Blackwell.

Battle for technological supremacy

Battle for technological supremacy. 

    The United States and China have emerged as the dominant players in the race for hegemony in the Fourth Industrial Revolution. Divergent technology standards will persist while the competition continues. The winner will have outsized influence—with economic, political, and military implications for years to come. 

Rise of the Indo-Pacific. 

    The Indo-Pacific is the new megaregion at the heart of the global economy and geopolitical competition. As China steps up, the United States bows out, and a variety of middle powers move into the mix, the Indo-Pacific will simultaneously become more important to the commercial success of multinational corporations and more difficult to navigate. 

Clean food revolution.

     The global food industry is experiencing a profound disruption. More consumers prefer eating “clean foods” that are healthier and more environmentally sustainable. And technological innovations in food production are enabling a new meat mix that will change how people around the world consume protein. 

Next-generation fake news.

     Fake news has already proven costly to governments, businesses, and societies around the world. Get ready for more volatility. Falsified video and audio are becoming less expensive and more convincing—and have a wider global reach. This next generation of fake news could prove far more damaging as fabricated stories become much harder to disprove. 

Transformation of higher education.

     Technological changes, policy shifts, and companies taking a more active role in addressing skills shortages are reshaping higher education for the 21st century. As education shifts toward more technical training, a more specialized global workforce will emerge, and education systems will become a more important determinant of national competitiveness. 

References :

https://www.entrepreneur.com/article/240638

https://synfiny.com/strategic-planning-in-a-rapidly-changing-business-environment/

https://opentextbc.ca/businessopenstax/chapter/trends-in-the-business-environment-and-competition/

Strategies in Today’s Business World

Strategies  in Today’s Business World

An organization has the responsibility to build upon levels of philanthropic, ethical, legal, and economic responsibility. The premise is that the basis of each of these foundational elements needs to be established first, followed by the incremental building and improvement of each. For instance, philanthropy cannot be the main priority until a certain level of economic stability and growth is seen. In the past, corporate social responsibility (CSR) was seen as philanthropy. However, in today’s business world, CSR has been accepted. CSR has become part of the corporate policies, values, and practices that look beyond narrow-defined business and economic goals of the company (Godiwalla, 2012). Some of the challenges facing Saudi Arabia organizations are the CSR initiatives that prevent them from global presence. In Saudi Arabia, CSR is in its infancy; therefore, Islamic and cultural values can play a vital role in leveraging strategic philanthropy in Saudi Arabia (Harrison & Berman, 2016).
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There are those who believe that strategic management must start with a strong moral, ethical, and socially responsible core. Special demands arise for companies deploying an internationalization strategy. Multinational enterprises (MNEs) deal with implementing business ethics and social responsibility strategies in different parts of the world (Godiwalla, 2012). The basic premise is that the MNE must address the establishment of a common global social responsibility policy and, at the same time, tailor the policy and program to each country’s culture and social expectations. Leading organizations into the future are exhilarating, terrifying, and stimulating, and it is startling when we realize the infinite number of opportunities and threats that not only exist now but also may exist in the future. Global competition is assured for the foreseeable future just as the trend toward social responsibility is evident (Rae, 2013). 

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Strategy Implementation and the Importance of Innovations

To implement effective innovation means that companies must be flexible and creative, and, for that to occur, the firm’s environment must be conducive to stimulating and developing new ideas. Interaction among various operatives such as information technology specialists and business units is essential. One of the greatest challenges for leaders is to be able to assess, diagnose, and plan for organizational change in an innovation-heavy environment. Recall the necessity to align systems and processes to manage change and realize strategy (Ning, 2012). Strategy with relation to innovation is challenging, therefore, the culture of the organization plays an important role in the quest for successful implementation. The demands on structure, processes, reward systems, and people are particularly important in innovative organizations. Sustaining competitive advantage requires innovation and continuous improvement (Grant & Jordan, 2015).

References

Godiwalla, Y. H. (2012). Business ethics and social responsibility strategies for foreign subsidiaries. Journal of Diversity Management, 7(1), 1-10.

Grant, R. M., & Jordan J. (2015). Foundations of strategy [PowerPoint slides]. Hoboken, NJ: John Wiley & Sons.

Harrison, J. S., & Berman, S. L. (2016). Corporate social performance and economic cycles. Journal of Business Ethics, 138(2), 279-294. doi:10.1007/s10551-015-2646-9

Ning, H. (2012). How to maintain sustainable competitive advantages: a Case study on the evolution of organizational strategic management. International Journal of Business Administration, 3(5), 45-51.

Rae, S. (2013). Business. Ministry. Life. Retrieved from; http://crowell.biola.edu/blog/2013/feb/13/why-ethics-classes-rae/