Making Sense of Strategy - Essay Example

Arab Open Marked Assignment (TMA)- PT3 Form for B301B Academic Year - Semester: First-2014-2015 Branch: Program: Business Studies Course Title: Making Sense of Strategy II Course Code:B301B Student Name:taiba al- ohaly Student ID: 601009683 Section Number: Tutor Name: Mark details Allocated Marks Questions Q1 Q2 Total 100 Weight 60 40 Marks Deduction Criteria In text referencing (0-5) Referencing (0-5) Word Count (0-5) E-Library (0-5) Total deduction (0-20) Marks 100 Student’s Total Mark (total marks – total deductions) Notes on plagiarism: A. According to the Arab Open University By-laws, “the following acts represent cases of cheating and Plagiarism: Verbatim copying of printed material and submitting them as part of TMAs without proper academic acknowledgement and documentation. Verbatim copying of material from the Internet, including tables and graphics. Copying other students’ notes or reports. Using paid or unpaid material prepared for the student by individuals or firms. B. Penalties for plagiarism ranges from failure in the TMA to expulsion from the university. Declaration: I hereby declare that the submitted TMA is my own work and I have not copied any other person’s work or plagiarized in any other form as specified above. Tutor’s Feedback Student Signature Q1: There are interactions between domestic policy and global policy. For each special area, laws have an impact on the ability of companies with respect to trade and investment outside the country. For instance, the impact can be seen in the export of iron. This trade also has an impact on the politics of a country. The impact on the country’s companies takes place through culture and religions. This impact is also determined by laws that govern how business is done in a particular state. There are five different kinds of domestic policies: trade policy that includes export control, protectionism, strategic trade policy incorporating foreign direct investment (FDI), capital controls, and regulation, antitrust, and competition policy. There are groups of small businesses that require political protection. These also require economic laws to be protected especially from the competition of foreign projects such as Saudization. It is defined as goods imported from abroad. It leads to abandoning local goods. There are several methods that can be used to protect these businesses and include import tariffs. This is a tax imposed by the government on goods imported from abroad. Whether service or commodity, quotas that are importing goods must follow certain laws. Tax cuts to local businesses are taxes taken from a local business. This is done directly by a state. Protectionism it is a kind of trade policy. In addition, the antitrust and competition policies are also used to protect the local economy for the small businesses in the country. The antitrust policy erases professional competition from large companies. Additionally, it promotes laws that prohibit monopolization, which affects the profit making capacity of the smaller businesses in the area. This also helps in preventing large companies from growing to the point that they gain strong control of the market as compared to other companies. This can also be viewed as preventing one organization from controlling the entire market. The presumed anti- competitive behavior prices are too high. There are benefits to companies if they follow the antitrust laws such as the use of national resources in a professional manner and having a more localized growth, achievement of stability in prices for both output and employment. If the figures of imports were rising disproportionately to export figures, imports would be more than exports. It must be specified which goods can be exported to the outside. These laws protect the domestic economy of the country from the impact of inflation. The goods involved here include cement and steel. The laws are also helping to prevent competitors from outside of the main resources and technology, or to punish the state if there were acts against the laws. The government makes up a list of goods, which can be exported and devises the imposition of targeted sanctions to protest against competitor countries. The main interest from this prohibition is to change the behavior of these competitor countries such as Israel. The strategic trade policy is a plan that is related to national advantage for the protection of large and special industries such as aircraft. These industries must have global competition ability and must stay away from zero-sum game. There are also tow solutions indicated by either loss or increase in growth. These competitors must be backed by the government and have the ability to debate and compete at a high level. Trade policy law is the most important of all the laws because trade crosses national borders and affects a national economy. The government controls the economy, merchantability, and their performance as well. Additionally, laws are both direct and indirect so as to control the companies outside the country. These laws are used to raise the level of competitive performance between companies abroad. Here, competitive advantage is wholly divergent. Rate of unemployment among the locals was rising. This refers to the rules of foreign direct investment (FDI) which are set by the laws of the country to companies that invest in another country. These laws include in some areas preventing the entry of foreign companies and if a business is allowed to enter, it must be a Saudi partner. This requires a company to supply a certain technology and not export everything in the sense that there must be special products for export. These effects are facilitated by determining the number of foreign nationalities as well as the number of foreigners such as the foreclosed employ dual of the world. However, they are allowed to recruit the rest of the nationalities. They must have had a good performance with respect to the use of the laws of foreign companies to invest and to attract featured companies from abroad. The tenure of MNCs in the country was decreasing gradually in the sense that it owned a number of multinational companies at least. The capital control was helping in determining the capital that goes out of the country and fear of unbalance that is produced from those that fully take their money out of the country. This is because it affects the economy. It must transfer the money and the short duration of the parts and not at once. Furthermore, it helps in the defense of the local economy of the country. These big companies put pressure on the world market to increase capital in developing countries and to protect themselves. Developing countries often maintain a series of control on capital and foreign exchange flow. In addition, there are regulations and clear rules for the local economy. Sometimes it is good to go to the market in a way such that the non-economic community is more like traditions and laws of the country such as the prevention of alcohol in Saudi Arabia. These laws can be used to prevent the entry of certain companies because some of them are causing pollution or impose laws on prices or health insurance for the poor people. These laws have an obvious effect on foreign companies with respect to need for their relations with the government. Portals are presence in all markets but are difference from one market to the other. The company that does not fit with these laws can move to another market. There is approval of everyone on these laws. (1). Q2: SABIC is one of the largest companies in Saudi Arabia. In 1975, Saudi Arabia created the master gas system – a network for collecting and processing petroleum gasses, and drew up plans to use these gasses as feedstock for the petrochemical industry, that was in SABIC history but today SABIC is one of the world’s leading manufacturers of chemicals, fertilizers, plastics and metals. In short, they live for crating long-term success, a spirit of ingenuity, commitment to deliver, and actions not just words. The strategic business units of polymers help to find the right alternative to replace traditional materials- wood, cotton or glass- used in a vast array of consumer and industrial products. Such products include polyethylene, polypropylene, polyvinyl chloride, and polystyrene. SABIC was created to produce and market technologically advanced chemical derivatives. They tailor high- value chemicals for specialized industrial and consumer applications. It is a dynamic learning organization. SABIC strive to achieve continuous improvement to always become better at what they do and remain valuable as partners to their stakeholders. Capturing, developing and sharing best practice across their business and with the customers is core to their strategy. The organization is also involved in customer forums to develop industry leading know- how together, creating a global learning flagship, the SABIC academy, investing in developing those people into outstanding performance, and developing online learning communities sharing knowledge globally. To be the preferred world leader in chemicals “we will achieve this partnering with our customers helping them achieve their ambitions “. When they grow, we grow. That is why for us, our customers success comes first. (2). TASNEE co. the national industrialization company (TASNEE) is a major Saudi Arabian petrochemical company with interests in a wide range of other concerns such as chemicals, plastics, engineering and other industrial services .the Company is the second largest industrial company in Saudi Arabia and the second largest producer of titanium oxide in the world. KHC has cemented its position as the world’s foremost value investor. Our strategic emphasis is on identifying optimal opportunities to invest and realize value from underperforming or undervalued assets worldwide. It is this recognition of long- term potential that has secured KHC a leading position globally. KHCs investment strategy is founded on core investment principles; investment in high performance and leading brands- we believe in the value of branding excellence and seek to invest in the world’s best- known brands, long- term investment approach- we strive for long- term investments and seek businesses with strong management teams that are capable of delivering sustained growth and continuously strong returns, extract value from underperforming assets- KHC are experienced in acquiring and extracting additional value from underperforming and undervalued assets, focus on core growth and value- added industry sectors- our reputation has been achieved through a focus on growth sectors where value can be added, network of contacts- HRH prince AL- WALEED has developed extensive contacts among government and business leaders throughout the middle east and globally . As a major company with global interests, KHC is committed to operating to the very highest ethical and moral standards. This common goal is extended to our company s ever- growing portfolio of investments .the vision globally one of the largest and most diverse investment companies, KHC have developed a strong, cohesive to lead our current and future investment strategy. KHCs investment strategy is implemented across different markets and sectors based on scientific methods and careful analysis of the local, regional and global market dynamics. We have an in- depth understanding of the most promising investment opportunities in a variety of sectors, including consumer, education, energy, financial, healthcare, manufacturing, media and education, private equity, hospitality and aviation, real estate and technology. (3). REFERENCES : (1): book:B301- making sense of strategy. Readings for block 3-reading 13: National policies and domestic politics –Debora L. spar . (2): http://intranet.sabic.com/english-US/pages/SABICHome.aspx http://www.sabic.com/corporate/en/ (3): http://ar.wikipedia.org/wiki/%D8%B4%D8%B1%D9%83%D8%A9 %D8%A7%D9%84%D8%AA%D8%B5%D9%86%D9%8A%D8%B9%D8%A7%D9%84%D9%88%D8%B8%B7%D9%86%D9%8A%D8%A9 Tutor Name: Tutor Signature: Date returned: Read More