...Analysis of Saudi Arabia History of Saudi Arabia Saudi Arabia is a member of the Gulf Cooperation Council (GCC) (Bowen, 2008; Fasano and Iqbal, 2003). The country traces its origin back to the early empires of the Arabian Peninsula, which is an ancient trade centre. At present, Saudi Arabia serves a key role in the Islamic world, as it is the birthplace of Islam and the place where Mecca and Medina are located. Thus, the country frequently receives Islamic visitors during the annual Islamic Haj, as it owns the holy city of Mecca. The modern Kingdom of Saudi was established by King Abdulaziz Al-Saud, in 1932, and since then, the Kingdom has grown from a desert nation to a recent, classy state and a chief player on the global stage. Since time immemorial, Saudi Arabia has been an essential stake of the Arab world. Its huge supplies of oil and close links to America guaranteed its place, since the times of the cold war till when a wave of turbulence bust in Tunisia, during the month of January 2011, and touched the entire region. Currently, the ruling family in Saudi is experiencing a different world, anxiously. Early this month, Saudi Arabia pronounced the demise of Prince Nayef bin, who was a dedicated minister in the war against Al Qaeda and who was ignorant to change of democracy. After a few days, Prince Salman replaced him as the Crown Prince. Salman had served as a governor of Riyadh for almost 50 years ahead of his endorsement to the ministerial seat. Saudi Arabia, as the...
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...will talk about the Saudi labor market specifically (saudization and Nitaqat program) implemented by the labor market, employing various ways of advertising and promoting this campaign. Saudization is a policy to prioritize the hiring of Saudi nationals over expatriates in privet sectors intendened to lower the unemployment rate which according to CIA factbook the unemployment rate reached in 2011 to 10.9%. in order for the ministry of labor to measure the Saudization of a private company, a program called Nitaqat was lunched. Advertising and promotions is bringing a service to the attention of potential and current customers, carried out by implementing an advertising plan. The goals of the plan should depend on the overall goals and strategies of the organization and the results of the marketing analysis. The plan usually includes what target markets you want to reach, characteristics you want to deliver to your target market, how you will deliver it to them, which is done by an advertising campaign. Successful advertising depends on knowing the best methods and styles of communications of each of the target markets that you want to reach with your ads. Saudi Labor market: The problem of unemployment is complicated and very difficult to specify one factor that is the reason behind unemployment. As I mentioned the unemployment rate reached to 10.9% and expected to increase, some economist pointed out that the reasons is poor education levels among Saudis that are not fit...
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...this international business plan are; Saudi Arabia, South Korea, and Brazil. Each country has a different economic system, political system, and management style for doing business with respect to the culture and traditions of the country. Each country can be a real consideration for expanding your business in if the research is done by the business desiring to expand. If the research is not done properly, then without a doubt your business plan to expand will not be productive. Each of these countries it is easy to cause a great enough offense to the host country that it will be virtually impossible to enter into this country and have an effective business. The business must have a market advantage to expand in any country. The host country must feel they have respect and the wellbeing of their country before they will allow a business to enter into their country. A good example of this is when McDonalds entered into China. McDonalds needed to make some serious changes to their menu for the culture in which they intended to setup their business and they had to give certain guarantee’s to China about labor, customs, courtesies, and business involvement for political issues (Thuermer, 1998). A similar business move was required when McDonald’s established their self in England. England required a large amount of the product be produced by England for the product used. This research will look at Brazil, South Korea, and Saudi Arabia for a proposed business plan for implementation...
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...According to the recently published report by TechSci Research “Saudi Arabia Confectionery Market Forecast & Opportunities, 2018” confectionery market in Saudi Arabia is expected to witness the CAGR of around 12% during 2013-2018. Confectionery industry is the most popular in the food processing sector and with the increasing demand of high end confectionery; international companies are entering into the market through collaborations and acquisitions in order to increase their share in the market. It is forecasted that Saudi Arabia confectionery market will reach USD 2.26 Billion (SAR 8.4 Billion) revenues by 2018 due to increasing gifting culture and the income bracket which will fuel the demand for confectionery products in Saudi Arabia. Saudi Arabia confectionery market is divided into three segments with Chocolate segment being 55% of the market, sugar confectionery accounting for 24% of the market and chewing gum being 21% of the total confectionery market. It has been expected that demand for chewing gum segment will increase in the coming years due to increasing health concerns among the people and shift in the target consumer base. Global confectionery market has witnessed a slow up in the last few years due to 2009 euro crisis and its post economic crisis. The global confectionery market has shown an upward trend since 2010 with the improvement in the economy. Western Europe accounts for the largest market for confectionery followed by North America and Asia Pacific...
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...subject that affects the whole economy in all countries. Small and medium -sized enterprises (SME’s) play an effective role in solving many economic problems such as unemployment. Therefore, SME’s are at the heart of economic growth. The purpose of my report is to show how SME’s help the economy in overcoming some problems. Also, this report discusses some SME difficulties and their solutions. This report has three chapters. The first chapter consists of background. The second chapter is about SME problems. The last chapter discusses a real life example of a small business in Saudi Arabia. I. BACKGROUND This chapter defines SME’s and explains their importance. A. Definition of SME’s The SME definition is different from one country to another. In Saudi Arabia for example, small firms are identified by the Saudi Chambers of Commerce as firms which have 10-25 staff and whose assets are SR one million. On the other hand, the firms that employ 25-100 staff and their assets are SR 5 million are called medium- sized firms. (5:197) The definition of SME’s in the UK is as follows: the enterprises that have less than 50 workers are small enterprises whereas the enterprises that employ more than 249 workers are medium- sized. (1:1) B. SME’s Importance The effect of SME’s on the economy appears in many dimensions. Governments face several problems related to unemployment; SME’s can solve these problems (6:1). In Saudi Arabia for example, SME’s comprise greater...
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...Saudi Economy Term Paper: Saudization Done By: Mais Atiyeh & Noura Nadir Saturday, January 6, 2011 Introduction Saudi Arabia is a wealthy country with a young population structure and a high population growth rate. People under the age of 40 make up 78% of the population of which 32% is under 15 years. This means that the dependency ratio in Saudi Arabia is very high compared to other countries (2.4 times the world average). This also means that there will be a continuous increase in the number of new labor market entrants in the coming years. With high costs of living and a high dependency ratio, there is great pressure on the Saudi individual to find a job and greater pressure on the Saudi government to create more jobs. Over-saturation of the public sector has created a need for young nationals to look for work inside the expatriate dominated private sector. However with so many expatriates working in the country it is harder for the Saudi national to find a job in the private sector, and thus unemployment has been a serious issue in Saudi Arabia. In an effort to facilitate the employment of nationals, the Saudi government has instituted a number of policies favoring the Saudi worker in an effort known as Saudization Saudization is a tool used to combat unemployment and involves replacing foreign workers with Saudi workers. The Saudization plan was imposed by King Fahd bin Abdul Aziz to in order to significantly decrease dependence on cheap foreign labor. Under...
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...Company History: Jarir Marketing Company is a Saudi company which is traded in the Saudi stock exchange (Tadawul). It has a paid up capital of SR 400 Million. The company is known as the market leader of office products, school supplies, books, computers and computer accessories in Saudi Arabia. Also, it is expanding its business in other GCC countries. Jarir Bookstore, the retail division, has more than 20 showrooms and 4 corporate sales offices, whereas, Jarir Marketing, the wholesale division, has 6 wholesale showrooms and 7 direct sales offices. Since it was formed back in 1980, Jarir achieved significant growth and profitability through its retail, corporate and wholesale operations. Company Growth: Jarir has enjoyed increasing levels in growth and profitability. There are many reasons for these increases. First, The opening of new retail and whole sale showrooms. Second, developing brands such as “Roco”. Third, low levels of competition. Finally, using latest technologies and appropriate management styles. However, in the past few years Jarir started to face higher levels of competition. The management realized the need for maintaining competitive advantage and therefore began to shift the company focus. Since 2006, Jarir had more focus on the customers. This lead to maintain profitability and market share for the company. Customer Service: Jarir trains all of its employees on how to provide better services. It makes sure that all the workers have enough knowledge...
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...Instruction on the Group Project Principles of Management Each project group is expected to collectively write a case report that focuses on an ethical issue faced by a real-life organization, a specific industry, or a business profession. Following is a suggested outline for the case written by your group: I) Background Information (e.g., corporate history) II) The Central Ethical Dilemma(s) III) Alternative Ways to Deal With the Ethical Dilemma(s) IV) Possible Consequences and Implications of Alternative Solutions V) Ethical Theories That Are Applicable to This Case VI) Key Questions for Case Study When writing this case report, you are encouraged to gather as much relevant information as possible from various online and offline data sources. However, all the information used in your case analysis must be properly cited in the main body of your report, including the author name(s) and publishing date/year, if available, and the detailed citations must be included in the References section. Your case report will be graded on the following criteria: 1) Proper application of ethical theories 2) Quality of writing (readability, originality, grammatical correctness, etc.) 3) Breadth of information utilized (at least 20 different articles or books need be cited and actually used in writing this case) 4) Demonstrated critical thinking skills 5) Robust logical reasoning 6) Comprehensive data analysis (i.e. taking into...
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...ECONOMICS II THE ACCESSION OF SAUDI ARABIA TO THE WTO ANALYSING THE FUTURE CHALLENGES SUBMITTED BY: AKANKSHA PRAKASH I.D.NO.: 1785 IIND YEAR B.A.LL.B. {HONS.} TABLE OF CONTENTS RESEARCH METHODOLOGY___________________________________________________________2 INTRODUCTION_________________________________________________________________________3 THE ACCESSION OF SAUDI ARABIA TO THE WTO: AN ANALYSIS OF THE FUTURE CHALLENGES____________________________________________________________________________4 • Objectives________________________________________________________________________4 Diversification of the economy______________________________________4 Development of modern infrastructure________________________________4 Access to Foreign Direct Investment (FDI) and modern technologies________4 Enhancement of purchase power of the population_______________________4 Employment Generation___________________________________________5 Maximization of competitive advantage in petrochemicals________________5 Open Access to international Market__________________________________5 Open Access to international Market__________________________________6 Integration of Saudi Arabia’s economy with the global economy____________6 • Reforms__________________________________________________________________________6 Foreign Investment_______________________________________________7 Trade in Goods___________________________________________________8 ...
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...Historical, Current state of the issue and Emergence of Saudi Arabia as free market Historical Saudi Arabia is a total monarchy ruled by King Abdallah bin Abdul Aziz Al Saud. Saudi Arabia has appeared to be satisfied with advance in economic. As a primary for oil producer and exporter, Saudi Arabia controls the whole Organization of Petroleum Exporting Countries. Saudi Arabia’s free market economy has incredible changes in a relatively short term of time. I t has grown from agricultural base community into the regional and global economic power with a modern infrastructure. Petroleum is a fundamental part of the Saudi Arabia’s economy comprising 45 percent of the country’s GDP. Saudi Arabia is the world’s largest producer and exporter of oil, accounting for 20 percent of the oil reserves. GDP in 2010 was estimated at USD622BN ( USD 24,200 per capita). GDP growth in 2010 was 3.7%. Petroleum is an integral part of the Saudi economy comprising 45 percent of the country’s GDP. Saudi Arabia is the world’s largest producer and exporter of oil, accounting for 20 percent of the world’s oil reserves. GDP in 2010 was estimated at USD622 BN (USD 24,200 per capita). GDP growth in 2010 was 3.7% Saudi Arabia was first graded in the 1996 Index, and its economic freedom score has declined since then by 6.1 points. Rating gains in trade freedom, investment freedom, and the management of government spending have been overwhelmed by substantial double-digit declines in property rights, freedom...
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...Post published a story about an oil conflict rising between Saudi Arabia and Yemen. The Egyptian newspaper, al-Masry al-Yom, quoted in the story, refers to the conflict as the “Yemen - Saudi Arabia new Oil conflict” (Yemen Post) implying preexisting disputes between the two countries regarding the extraction of natural resources. Until 2012, Yemen's officials embraced its country's world-wide image as the poorest country in the Arabian Peninsula with depleted natural resources. However, starting with the resignation of then president, Ali Abdullah Saleh, the discovery of large petrol deposits in earth pockets worth up to several billion dollars were made public. Yemen's close neighbor, Saudi Arabia, the superpower of oil exports in the region, is becoming more uneasy, especially after rough estimates predicting that soon Yemen could be “home to much of the world's oil and gas resources, maybe just as much as Saudi Arabia itself”(Yemen Post). Experts from Yemen Post are also speculating that the newly discovered fortune could be the answer to Yemen's current unemployment rate, poverty, illiteracy and other problems. With vast natural resources, arable lands, key geographical location and military potential, Yemen could soon challenge the superpower of Saudi Arabia in the region. The disputes over borders between the two countries dating back to the Saudi-Yemen war in 1934 could soon resurface especially with Saudi Arabia resuming its construction of the fence along the Yemen border...
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...religious beliefs, traditions, work ethic ( culture) The full name of Saudi Arabia is the Kingdom of Saudi Arabia. Arabic is the official language. In the 7th century, the successor of the Mohammed who was the founder of Islam established Arab empire. The 8th century is a heyday for Saudi Arabia, and its territory crosses Europe, Asia and Africa. However, in the 16th century, Arab empire was ruled by the Ottoman Empire. In the 19th century, The Great Britain invaded into Arab, it was divided into two parts, Hejaz and Nejd. In 1924, the chief of Hejaz in Saudi Arabia merged Nejd and then gradually unified the Arabian Peninsula. Finally, in September 1932, he declared the establishment of Saudi Arabia kingdom. Saudi Arabia is the birthplace of Islam. Islam has become the world’s second large religion. The founder Muhammad established Islam approximately A.D 600 in Mecca; the sacred city of Islam is located in Saudi Arabia. Islam prospers in northwestern Africa, the Middle East, Central Asia, Pakistan, and some Southeast cities. Religion strongly affects consumption behavior of Arabian. For example, Muslim consumers are not allowed to consume alcohol and pork, besides that, the nation is governed under the Law of Islamic. Muslim pray five times a day, the local people usually go to the mosque to do religious service. Women must wear black robes in that day. Some of the traditions and customs in Saudi Arabia are similar to the other countries, but some of them are not. Most...
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...the Middle East area. In this point of view, late proofs have broadly confirm how despite the fact that Saudi Arabia is now considered as a growing economy which is trying to diversify its exports, mainly based on oil and natural gas, by framing and revising its legal and regulatory environment in order to foster entrepreneurship activities and the private sector interest. It leads to growing concern about the role of women in the economic environment, with legal and ethical consideration of the women’s role in the existing socio-cultural make-up of the country. The way in which countries like Saudi Arabia, have developed a domestic organized economy that is based on entrepreneurship is a hypothesis that has been widely tested and cited within the existing body of Literature. Although many academic experts believe that Middle East countries still retain a promising potential for growth (Shachmurove, 2004), major obstacles in terms of detrimental factors such as corruption, unclear regulations and reliance on oil have also recognized. Women are therefore believed to play a primary role in the entrepreneurial future of the region. In order to leverage on the untapped potential of economic growth of this country by utilizing and capitalizing on the potential contribution of the female entrepreneurs towards success of economic projects that are being carried out in Saudi Arabia, in compliance with the ethical dimensions that are deemed critical in the middle east region. Although...
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...companies A case study of the energy industry in Saudi Arabia Abstract Contents 1. Introduction 4 1.1. Rationale of the Research 6 1.2. Aims & Objectives of the Research 7 1.3. Key Research Questions 7 2. Literature Review 9 3. Research Methodology 13 4. Key Findings & Discussion 13 5. Conclusion 16 6. References 16 7. Appendices 16 1. Introduction In this era of globalization, there has been a fundamental change in the way international business is being done. Due to the ease of communication and advances in the sophisticated communication systems more and more companies are becoming global and expanding their operations and creating production facilities away from their home countries. This trend has given rise to today’s Multinational Corporations (MNCs) whose role in the international scene is increasing rapidly. With increased international development and cooperation, the MNCs have been able to create such a network that their budgets, organizational structure and influence on the world trade stage rivals many nations [ (UN Conference Proceedings, 2006) ]. With their immense economic power and strong political connections and the fact that globalization is seen as a “Business driving phenomenon”, MNCs are in a strong position to influence the economies of the countries they operate in [ (Nourafchan...
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...Diversification of Income Resource in Saudi Arabia as Result Decrease Oil Price Names Institutional Affiliation Abstract The main objective of this paper is to study the idea of diversification of the income resource of Saudi Arabia due to the effects of the instability in the oil market. Saudi Arabia as a country has developed due to its oil source which makes it the kingpin in the world oil market. Approximately 85% of the country revenue is earned from the oil economic sector. This is a sign of over reliance on the oil market making the country economy vulnerable because of changes of oil prices. The instability of the oil prices in the global market has signaled the need for economic diversification to build a stable economy (Shoult, 2006). This paper discusses the possible ideas which can be used to up bring diversified economy which does not depend on a single or few sectors of income generation. Introduction Saudi Arabia is a country that is located in the western part of Asia. It is the world largest producer and exporter of petroleum products. The economy of Saudi Arabia has in the past been pivoted on the oil as source of revenue due to the fact that the strength of the economy, foreign investor’s ideas and development of the infrastructures were all dependent on the oil. Fluctuations in the oil prices and demand in the world market has greatly affected the economy of Saudi Arabia and well as a source of livelihood to the majority of the citizens. The country...
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