FIN516- Assignment 2- Individual Report
Word count: 1512
Executive Summary
In this course notes a risk has been defined as a probability and consequence of uncertain future events. This is a chance of an undesirable outcome. In this regard, for success of the contemporary entities, having a strategic risk analysis to harness the decision making is important. The approach adopted in risk analysis as identified in AON (2022) should not be operational but inclusive of an in-depth appreciation of an organisation risk profile and what that means from a business context. Further, Silva et al. (2018) noted that through a strategic decision and risk analysis, it is possible for an organisation to utilise information and evaluate alternatives for making the best critical decisions. These decisions are intended to harness development of effective business strategies and operations. It is against this background that this report focuses on exploring the strategic decision and risk analysis within SABIC organisation. This is achieved by assessing how the organisation is involved in developing/making their strategic decisions and risk analysis. This is while evaluating their use of concepts, tools, and techniques and their influence on the development of the strategic decision and risk analysis. Since SABIC operates in the manufacturing industry in Saudi Arabia, risk management has been identified to be instrumental for their leverage in competitive advantage and market dominance.
Table of Contents
1.0 Background of organisation Strategic Activities. 3
1.1 SABIC Organisation Background. 3
1.2 SABIC Strategic Activities; Structure, Business Conduct and Operational Activities 3
2.0 Application and Analysis of Strategic Decision and Risk Analysis Activities. 4
2.1 Internal Factors Analysis (SWOT) 5
2.2 External Analysis (PEST Analysis) 5
4.0 Conclusion and Recommendations. 9
1.0 Background of organisation Strategic Activities
1.1 SABIC Organisation Background
SABIC is an organisation founded in year 1976 from a royal decree where over the years it has been characterised by significant capacity to do what others said it was not possible. As evidenced in SABIC (2022), this organisation is currently ranked at the top amongst all global petrochemicals manufacturers. The organisation strategic activities are guided by the need for being a top manufacturing firm. This is in the highly competitive business environment both in Saudi Arabia and Middle East. The operation are intended to remain competitive in the market. To evidence its enormous capacity, it currently operate in 50 different nations commanding a global workforce of 31,000 talented people.
1.2 SABIC Strategic Activities; Structure, Business Conduct and Operational Activities
As evidenced in SABIC (2022a), SABIC strategic activities are categorised into petrochemicals, Agri-nutrients and specialties. Through these strategic activities, they are in a position of supporting customers through an identification and development of opportunities in core end markets including construction of medical devices, packaging, Agri-nutrients, electrical and electronics, transportation and clean energy. This is also featured in the organisation structure (see figure 1) which is inclusive of the board of directors, board committees and team of executive officers. Since the organisation operates from Middle East and Africa, Asia, America and Europe, they have organisation structures informed by independent needs in these subsidiaries.…..
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