Introduction of Economic History Task

The House of Alireza is one of the oldest family business in Saudi Arabia and the business history span expands for a century and half (Sisco. com. sa, 2016). The trading company was established in Jeddah in 1845 and merchandized the products in the Indian sub-continent and Middle East. The House of Alireza is also known as Zainal Alireza and initially introduced textile products and food services and then expanded the business or real estate as well as acquisition of agencies regarding the shopping lines that carried about the commodities (Sisco. com. sa, 2016). The House of Alireza emerged strongly in the national and international trade and growth was parallel to the modern history development (Alireza. com, 2018). From the initial development the multi-faced progression was evident by the growth and expansion of company. The company introduced multifaceted progression and broadened the operations for instance by having Ford Motor dealership, telecommunication contracts, distribution of the products and bolstering of shipping sides in the business (Alireza. com, 2018). 

Industry Analysis

Demand of the product of Economic History Task

The company have promoted the business in various aspects and participated in the promotion of projects. The demand of products is still more than the production levels as company produces polypropylene and blending of the lubricating oils (Sisco. com. sa, 2016). The reputable corporations are making business with the major products and operations provided by House of Alireza.  Certain successful and international companies assists and supports the production of products and services of kingdom. The company is making new contracts with the world and keeps the finger on the business community pulse (Alireza. com, 2018).

Labor cost and its effect on the viability of product

House of Alireza continued success on the basis of abilities and services delivered to the customers. The completion of project from past 100 years at international standards contributed economic stability (Sisco. com. sa, 2016). During 2016, the company made efforts for the minimizing of efforts and increase in the labor cost for efficiency. The government reduced reliance on the subsidies and challenges reduced during 2017 (Alireza. com, 2018).   

Material cost of Economic History Task

Since 1960, the capital base of the company expanded and in 2003 the capital of business reached Sr 130 million (US $ 34.7 million). At the end of the 2007 the paid up capital increased and become equal to the 100 %. The shareholder equity and paid up capital reached SR 379 million for the US $ 101 million. The business expanded from the construction business and reached to the real estate. In the back few decades, the original cost of the business increased and the original cost increased for the market values that are several times higher than the previous values. The exemplary credits reached higher and then financial strength reached to the major projects.  

Production movement to other area or oversea

The company expanded business at international level and provided the products in different regions of the globe such as in Middle East.  The investment in the overseas areas includes the distribution of the aviation fuel, lubricants and operations of the shipping terminals. The house of Alireza delivers products through the cargo and contributes in the infrastructural development of Saudi Arabia (Revolvy. com, 2018).   

Competition faced by industry

The company is engaged with diversified activities such as travel agents, insurance, construction, contracting, and shipping therefore a number of competitors are influencing the business of company. 

Conclusion of Economic History Task

The house of Alireza is trading from past 100 years ago and continued the business till the modern day. The company is listed in oldest and largest company of Saudi Arabia and continued significant group activities.