Marketing Assignment. SABIC Assignment Example | Topics and Well Written Essays - 1000 words

Marketing . SABIC - Assignment ExampleSABIC was founded in 1976 and operates globally in more than 44 countries in the world. The company is estimated to have more than 33,000 employees all everywhere the world (Sabic.com, 2012). The organisational structure of SABIC includes a total of six different business units, namely Chemicals, Performance Chemicals, Polymers, Fertilizers, Innovative Plastics and Metals. All these business units argon engaged in the production of four product types, namely Chemicals which includes Performance Chemicals, Fertilizers, Metals and Plastics which includes Innovative Plastics and Polymers (Companydatabase.org, 2009). For the year 2011, SABIC recorded a net profit equalling SR 29 billion and its yearbook turnover for the year was SR 129 billion. PEST Analysis Political The regime of Saudi Arabia follows a system of monarchy. No political party is officially recognise in the country. Holy Quran is considered to be the constitution of Saudi Arabia a nd Sharia (Islamic Law) forms the basis for its governance. A central government has been developed by the kings of Saudi Arabia. A wide range of powers are concentrated in the hands of the king of Saudi Arabia. Political reforms have been initiated in the country with the formation of Shura or guinea pig Constitutive Council. The members of Shura have advisory powers regarding issues related to public interest. There has been a gradual expansion of the royally appointed Sharia over the past hardly a(prenominal) years (US Department of State, 2011). No income taxes are imposed on Saudi nationals and foreigners working in the country. Only foreign investors are required to pay taxes on their net profit. However the Sura Council members are thinking of the proposal of taxing foreign expatriates. Economic Major economic activities are strongly controlled by the government of Saudi Arabia. Major revenue earnings are derived from the petroleum sector. Private sector growth is being enc ouraged in the country to promote diversification of economy and employment of Saudi nationals. The effort of diversification is concentrated on telecommunications, power generation, petrochemical sector and exploration of natural gas. There is an unemployment problem mainly because of neediness of education and technical expertise amongst Saudi nationals and government is making concentrated efforts to address this issue. Foreign investment is being promoted in the country (CIA, 2012). Socio-Cultural Islam is the predominant religious belief in the country and Arabic is its official language. Saudi Arabia has a conservative cultural environment. Officially the country strictly adheres to the Islamic law and its Wahhabi interpretations. Cultural presentations are supposed to be in conformity with the ethical standards which are narrowly defined. Technological The country is experiencing rapid advancements in technology. Increased use of internet in business activities in the count ry. Growing advancements in e-Commerce and electronic service technologies (Al-Ghaith, Sanzogni, & Sandhu. 2010, p.1). Analysis of Ten Trends Affecting the Organisation Political Trends 1. The political environment of Saudi Arabia is sort of stable. The country is devoid of any democratic system. National elections are not held in the country and political parties do not exist. Hence it has a exacting impact on the business environment of SABIC and the company is