Executive Summary
In the provided module notes, risks have been identified as probability and consequences of future events which are uncertain. It has also been identified as occurrence of undesirable outcome. Hence, for modern business success, strategic risk analysis is important for promoting effectiveness in decision making which integrates interests of all stakeholders. Further, according to He et al. (2018), the process followed in risk analysis is operational and include a holistic evaluation of the entire organisation risk profile and relevance in their business context. Additionally, Abdel-Basset et al. (2019) argue that by embrace of strategic decision and risks analysis, there is a possibility of an entity to use information appropriately and as such evaluate entire alternatives to come up with the most relevant decision. Taking into account of this background information, this report intend to explore the strategic decision and risk analysis in BASF Saudi Arabia organisation. This is through an access of the extent in which an organisation is engaged to develop/make strategic decisions and pursue risk analysis. Also, in this report, the different concepts, tools and techniques and how they influence the strategic decision and risk analysis have been reviewed. Considering BASF Saudi Arabia is actively engaged in creating a chemistry for a sustainable future by leveraging on science and innovation an evaluation of risk analysis is relevant for appreciating the scope of their growth in their sector of operation.
1.0 Organisation Strategic Activities Background
1.1 BASF Saudi Arabia Organisation Background
BASF Saudi Arabia is a multi-sectoral organisation with interests in almost all sectors in a society. As evidenced in BASF KSA (2022), the organisation engages an upward of 111,000 employees in the different sectors hence success in their operations. A summary of the organisation sectors of operations is as illustrated in figure 1;
Figure 1: BASF Saudi Arabia Business Portfolio
For the different business segments in figure 1, it is evident that BASF Saudi Arabia assists in changing the world to be better with their expertise. This is through their embrace of innovativeness and entrepreneurial spirit while leveraging on power of their Verbund integration. This represent their goal, integrated to their corporate purpose which lead to creating a chemistry for a sustainable future.
1.2 BASF Saudi Arabia Strategic Activities, Structure, Business Conduct and Operational Activities
As explained in BASF KSA (2022), BASF Saudi Arabia strategic activities are based on achieving their multi-speciality operations (see figure 1). By pursuing the identified strategic activities, they are best positioned to support their clients by noting and developing appropriate opportunities in the main and major markets identified. This is in chemicals manufacturing, agriculture and food industry. This is evidenced in the organisation structure particularly in Saudi Arabia, which is inclusive of the management, CEO, Board of directors, committees, and executives. This is reflected in the different markets of the organisation in MENA region, Asia, America and Europe (see figure 2);
Figure 2: BASF Saudi Arabia Organisation Structure
Additionally, in line with Gjøsæter and Kyvik (2021), organisation strategy entail setting a relevant transformation roadmap. The rationale of this is to achieve an increased organisation development, sustainable operations, increased resilience and agile in chemical processing and manufacturing for achievement of Saudi Vision 2030. This is similarly improved through promotion of their practices which entail venturing in the international and local Saudi Arabia market.
2.0 Analysis and Application of Strategic Decision and Risk Activities
According to Ivanov and Dolgui (2021), representing the most appropriate approach, strategic decision and risk analysis is essential. This is for evaluating internal, external factors and….
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