Create a company - Assignment Example

However, government has to take concrete measures to reduce vehicle abandonment. But, then why government has to intervene and why not any of the corporate entities can do the job. Governmental intervention is necessary because it has the financial and human ability that is needed to manage, control and reduce the vehicle abandonment problem. The involvement of corporate entity in the process of managing the featured problem is ill-advised because corporations always look to maximize their returns and they are least bothered about the provision of societal benefit (Richard, 2007).

The project that will be developed in order to control vehicle abandonment is societal in nature and therefore, government is the best institution for running and managing it. Secondly, Saudi Arabian technological outlook is not very notable and therefore, the country has already outsourced its major operations to foreign contractors (Algehtani, 2003). The development of recycling company should not be different. The proposal of outsourcing vehicle destruction and recycling is presented because technological development needed to do the job locally is astronomically expensive.

Moreover, the economic development of Saudi Arab is attributed to the practice of outsourcing while the governmental and political leadership is familiar and habitual of working with outsourcers. The outsourcing decision will also assist the government in cutting down time required to get underway. Thus, the goal of removing undesirable machinery from the roadside can be accomplished both efficiently and effectively. In addition, government will have to provide operational licensing to only one international company that has the appropriate technological ability and muscle to manage such a vast operation.

The company’s cultural understanding of the local environment of the nation should also be given significant weight while choosing the contracting partner for vehicle demolition (Trompenaars, 1996). Government on the other hand, has to ensure that corporate competition should not develop in the vehicle destruction industry at least for initial few years. The notion of competition can ruin the societal benefit dimension of vehicle destruction and the goal of maximizing profits will govern the industry once again (Margolis & Walsh, 2003).

The top, middle and operational management of the service provider must be responsible for building recycling units across every major city of the country. The general idea is to give people an option to go and deposit their unwanted cars to a recycling center rather than leaving them idol on the roadside. The environmental concerns associated with vehicle abandonment are growing because machinery starts to decompose in few days from abandonment and therefore, its lubricants initiate to seep through.

The seeping through of lubricants cause filthiness on the road to increase and when thousands of cars get dumped every year then the environmental cost becomes inconceivably high. According to a recent research project, the overall dirtiness level in the society can be a determinant of public health. The geographical location on the country is also noticeably playing its hand in aggravating the problems and health concerns attached with vehicle abandonment. Additionally, excellent economic conditions of Arab’s citizens permit them to change their cars every now and then whereas, there is no organized