SABIC 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 over 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 are 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 annual turnover for the year was SR 129 billion. PEST Analysis Political The government of Saudi Arabia follows a system of monarchy. No political party is officially recognised in the country. Holy Quran is considered to be the constitution of Saudi Arabia and 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 National 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 few 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 encouraged 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 lack 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 religion 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 country. 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 quite 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 positive impact on the business environment of SABIC and the company is
SABIC Table of Contents Table of Contents 2 Company Profile 3 PEST Analysis 3 Political 3 Economic 4 Socio-Cultural 5 Technological 5 Analysis of Ten Trends Affecting the Organisation 6 Political Trends 6 Economic Trends 6 Socio-Cultural Trends 7 Technological Trends 8 Summary 8 References 9 Company Profile SABIC (Saudi Basic Industries Corporation) is a public company based on Saudi Arabia…
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(operating under UK's local authority administration). Example selected is educational service.
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