Introduction of Strategy Planning for STC

There has been a lot happening in the Saudi Arabian Economic circle with Crown Prince Muhammad Bin Salman’s aggressive growth and expansion policy. The vision 2030 is a step towards a more better and progressive Saudi Arabia that will elevate the economy striving Saudi Arabia to lead towards becoming a world leader. The focus here is not be dependent on the petro based economy and diversify. The company I have chosen is one of the leading Saudi companies. The report is going to address growth strategies for Saudi Telecommunication Company and how it can address the issues.

There are many issues that exist in the Saudi Arabian economy when it comes to leadership roles and decision making. Saudi Arabia has seen mainly petro chemical products based economy and it is a reason why Saudi Arabia earns all the revenue. Due to this there is very limited exposure to other fields causing the issue of leadership overall. The culture of Saudi Arabia is a contributing factor to the leadership issues. There are many expats that work in Saudi Arabia and the culture of Saudi Arabia very complex and diverse at the same time. The managers and organizational leadership find it hard to make decisions in such situations.

Having said that the most important aspect of Saudi Arabian economy and companies based in Saudi Arabia is dynamic leadership. Let it be Prince Al Waleed bin Talal or other leaders in the Saudi business ecosystem. Visionary and smart leadership have paved way for their companies to raise and make a name beyond borders (Bjerke & Al-Meer, 1993). The authoritarian culture of Saudi Arabia makes the role of leader inevitable and he/she should be leading from the front (Badawy, 1980). The issues relating to women in these positions exist but with the vision 2030 it seems the leadership structure in Saudi Arabia in businesses may experience change.

Company Saudi Telecommunication Company (STC)

Saudi Telecommunication Company known as STC is a famous name in the Saudi Arabian market. The company is based in Riyadh which is the capital city of Kingdom of Saudi Arabia. STC was founded in 1998 and has grown tremendously in the past two decades providing services to millions of customers home or coming in as tourists. The company has employees over 22,000 which show the need for a competent leader and management. The services of the company include telephony services, mobile network, TV streaming, telephony cards, Video on demand, 3G and 4G internet services etc. For years STC maintained the market monopoly by being the only one in the market until Mobily (Etihad Etisalat) received its license. The dynamics of STC are different as the market of Saudi Arabia is very dynamic and the company needs to adapt to changing economy and trends to be successful. The organization follows a hierarchy and chain of commands. The system is centralized to maintain discipline and quality of services. STC values its customer and holds the customer at heart for its operations and economic activities. STC is a leader in the market with a fair margin of market share.

Industry the Saudi Telecommunication Company (STC)

The telecom industry of Saudi Arabia is perhaps the most dynamic and innovative industry in the region. The spending of in the sector beats any other industry when it comes to information technology and communication. The industry is dominated by the three key players STC, Mobily and Zain. Virgin Mobile also has stepped in hope to add to the dynamics of the industry. However being the oldest in business STC takes the largest piece of pie in terms of market share. The dynamics of the industry have greatly evolved for Telecom Companies. From just provision of mobile network and telephony services the industry has diversified into many branches.  The industry receives revenue mainly from the broadband services but it stills needs to develop. The pilgrims arriving in Makkah and Madinah remain the key interest of the mobile phone companies as almost a billion pilgrims every year visit the holy cities of Makkah and Madina. It is the potential of the industry that has attracted an international company with global presence to target the Saudi Arabian marker, Virgin mobile is the latest entrant in the telecom sector of Saudi Arabia. The industry receives immense support from the government and is supported to aid growth.  The main strategy for businesses in the industry let it be STC, Zain or Mobily is to bundle services to attract consumer base. This means that hybrid packages with the best of all needs to be offered. This makes the industry extremely competitive and the profitability may reduce due to the competition. But it has been the market trends that every company has been able to maintain a niche and area of expertise. There may be tradeoffs but the industry has kept its pricing standards high that even if the competition is high so are the profits.

Problems in leadership of the company the Saudi Telecommunication Company (STC)

STC is a well-managed company and holds high values in its operation maintaining decorum when it comes to standard of Saudi Arabian company. But no institution is perfect and so is the case with STC. The few leadership issues with STC involve authoritarian control and low representation of women (Naseem & Dhurva, 2017). The culture at Saudi Arabia is very diverse due to people coming from different areas and walks of life but STC lacks the global approach due to negligence. The real underlying issue with STC is both its strength and weakness i.e being the market leader. Due to this they do not try to change within organization and are bent towards marketing ignoring HR and diverse needs of staff. The leadership is not very responsive or adaptive to needs of people lacking empathy. The issue is that due to limited scope of leadership there is no international presence of STC despite being the top notch in the region. Issue of control and cultural concerns also affect STC in many managerial ways. All the issues stated are due to diverse workforce and operations of the company. They can be changed to strengths of the organization if dealt with a strategic plan.

Leadership theories the Saudi Telecommunication Company (STC)

The leadership issues of the company can be dealt with many different approaches but it is of importance of realize that any strategy that will come into play should be in line with vision 2030. The image of country is to be progressive so should be STC’s image be. The few theories in line with issues can be:

Trait theory
Saudi Arabia has recently allowed female drivers which is a step towards women empowerment in the country. In the same lines there should be a more gender liquid approach towards leadership and women should be promoted up the ladder (Hodges, 2017). The theory in play will be Trait theory as it focuses on leadership qualities of the leader. Leaders are dynamic in approach and popular with people. They possess charisma and knowledge to handle tough situations. This can help transform STC leadership to carry forward the HR department and allow women to climb the ladder as a study suggested women in the Saudi Arabia are dynamic in character and possess different qualities of a leader. For the company to excel it needs to bring about the talent with traits of leadership. Trait theory can help in this regarding by pointing in the right direction.

Transformational leadership
Saudi Arabia has witnessed so much change due to the vision of Crown Prince Muhammad bin Salman. This is due to the transformational leadership. Transformational leadership refers to the idea to leadership with the vision and target (Bhatnagar, 2007). This helps the organization to regroup and come out stronger to achieve targets. This will help STC focus on its core value and transform under dynamic leadership. The leadership can take in account the macro environment and work accordingly. Transformational leaders inspire the followers or workforce to achieve extraordinary outcomes and come out of the comfort zone. They use authority to lead by example and are less bureaucratic in nature (Ali, 1993).  Overall managerial roles evolve and change empowering the employees. This will focus on growth and help women in workforce be comfortable and lead their way up if they have the talent.  For STC such leadership change and approach help them broaden their targets making them more ambitious. The HR department will fall into the right place with a strategy that will be looking to rewards visionary and hardworking employees. This will put the organization at the right pace with the vision 2030 focusing on the growth and diversity of the company.   

Contingency theories of leadership (Haski-Loventhal, Roza, Meijs, & C.P.M, 2017):
This theory or theories is accumulation of different theories in leadership. It argues that a leadership displays quality and is made distinct by behavioral traits and how he or she reacts in different situations. The basic point of this theory argues that leaders are multi-dimensional and made with experience and different situations encountered over time.  It tells that leaders should be adapted and have different approaches to different situations. For example a leader should be flexible and take feedback when required and likewise enforce decisions when required. This theory doesn’t limit a leader to specific traits or style but relates with situation. This theory can allow STC to maneuver between different departments strategically allowing them leverage to change and adapt to different situations. The other part of this approach is related to favorable situations and different leadership styles. This means leader should try to reach the favorable situations so employees know it will mean more autonomy and control. Leaders should focus on risk and return too making the best out of the situation. STC is diverse and this theory can help the company adapt and do better by evolving and this doesn’t have rapid change.  Leadership approach on handling different levels will be different.

Managing leadership issues and strategy the Saudi Telecommunication Company (STC)

There are many ways the company can implement the strategies to grow and evolve its leadership values in the company but given the scenario for STC (its already on top). The strategy planning activities should be engaging and dynamic in nature. They will set the course of strategic implementation of policies. Few of them can be:

Review of mission statement the Saudi Telecommunication Company (STC)
This mission statement is more than a quote and instills the values of the company. The mission of the company paves way for the leaders to enable the workforce to take the route.

Establish the goals
Short term and long terms goals should be discussed and prioritized. This will provide clear direction to the organization.

Develop the SMART objectives the Saudi Telecommunication Company (STC)
Define the objectives of goals and why are they important. This aids in broader strategy development and is the core to the organizational goals.

Employee feedback about barriers the Saudi Telecommunication Company (STC)
This is to empower workforce and include them in decision making. Not only will it aid business strategy decision but also help identify leaders in making (Julia Christensen Hughes, 2008).

Industry Analysis the Saudi Telecommunication Company (STC)

Before moving onto the implementation of the strategy planning activities it is of importance to realize the overall outlook of the Saudi Arabian Economy and industry dynamics. This section will discuss that. The Saudi Arabian economy is diversifying which is attracting many investors globally and locally. Many startups are coming with business ideas to add to the economic ecosystem of the country. We will be analyzing STC according to PESTAL (Political, Economic, Social, Technological, Environment and Legal) factors to provide an insight about the business and its dealing in the macro environmental factors as stated. Also Porter’s five forced model to analyze its operation in the industry to get the strategy plan for the business.  The table below describes PESTEL for the company (PESTLE Analysis of Saudi Arabia 2016 - Research and Markets, 2016).

Porter’s five forces analysis s below:

Threat of New entry
Despite the entry of Virgin mobile the threat to entry is low as the it requires great bit of capital and investment

Threat of substitute
There are many products that act as substitute or alternate to the product what STC offers and there is constant need to innovate

Industry Rivalry
There is competition in the industry due to the major players and heavy investment.

Supplier power
As it is a relatively segregated industry there are number of suppliers or service providers for it so there is less power with the supplier and they would not like to lose their client.

Buyer power
Buyers have much options in the market. We can exploit the need through strategic pricing and marketing.

Strategy Planning Activities the Saudi Telecommunication Company (STC)

Review of the mission statement the Saudi Telecommunication Company (STC)
This particular activity should engage all the stake holders of the STC and they should propose the mission statement that will go in line of Vision 2030. Devising of mission statement should be done on the basis of progression and equal participation. Feminism aspect shouldn’t be ignored when reviewing the mission statement. The mission statement review will also serve as the analysis of how well the company is performing as in sync. STC will need to take customers in confidence to seek what they expect and also take HR department in account because it is HR that will lead the company to success. Female participation should be encouraged regarding review as it will make the environment of company more dynamic.

Set the goals the Saudi Telecommunication Company (STC)
STC needs to set new goals for management and employees. The goals should be divided into two categories broadly that are short terms goals and long terms goals. STC should have short term goals based on the operational activities of the company whereas long term goals to reach the potential in accordance with vision 2030. Clear goals will help company maintain the progression pace. The categorization helps in providing clarity and direction to the company so it doesn’t steer away from its targets in the longer and shorter run.

Developing the SMART objectives the Saudi Telecommunication Company (STC)
There is a difference when it comes to defining the objectives. Goals and objectives go hand in hand but are two different things. STC needs to develop SMART objectives. SMART refers to Specific, Measureable, Assignable, Relevant, Time based objectives. This will help in goal setting and define the objectives behind the goals. The role of SMART objectives adds to the meaning of goals and motivates the employees. For STC they SMART objectives should act as reality check as Vision 2030 is an ambitious program and company should be sure about it goals. This activity will ensure the business strategy is in the best interest of the company and in aim to grow is not heading towards any loose. The objectives broadly should be that of Vision 2030 so they are supported by economy.

Feedback from HR the Saudi Telecommunication Company (STC)
This is the most important aspect of strategy planning activity for STC. The vision 2030 aims to be inclusive for employees and greatly focuses on women empowerment. Feedback by employees will act as internal assessment and help bring about managers and leaders in people. STC can have surveys and interview people to know about the barriers in the company that may hinder growth. This will give better insight about the issues and empower employees. 

Conclusion  the Saudi Telecommunication Company (STC)

STC should be heading towards a strategic overhaul and the current success of company shouldn’t blind the company about its potential. The Vision 2030 provides clear direction to STC and how it can address the issues of leadership. STC should adopt feminine approach and feminism to empower women participation in the work force of the company. The dynamics of Saudi Arabian economy have changed and it is need for managers and leaders to be more democratic in their style. STC should develop different programs to equip its employees to be up to the mark. If STC manages its issues and follows the strategies proposed it can maintain its market share and even increase it. STC needs to broaden its vision and aim for global presence. STC should address the issues of diversity by being more inclusive and employee oriented. A global approach will help company achieve its strategic goal towards a sustainable future. STC shouldn’t limit its goal to just Vision 2030 but go beyond to beat the competition and stay ahead in the market and industry.

References of the Saudi Telecommunication Company (STC)

PESTLE Analysis of Saudi Arabia 2016 - Research and Markets. (2016, July 25). Retrieved from Business Wire (A Berkshire Hathaway Company): https://www.businesswire.com/news/home/20160725005591/en/PESTLE-Analysis-Saudi-Arabia-2016---Research

Ali, A. (1993). Decision-Making Style, Individualism, and Attitudes toward Risk of Arab Executives. International Studies of Management & Organization, 23(3), 53-73.

Badawy, M. K. (1980). Style of Mideastern managers. California Managment Review, 22(3), 51-58.

Bhatnagar, J. (2007). Talent management strategy of employee enagement in Indian ITES employees: key to retention. Emerald: Employee Relations, 29(6), 640-663.

Bjerke, B., & Al-Meer, A. (1993). Culture′s Consequences: Management in Saudi Arabia. Leadership & Organization Development Journal, 14(2), 30-35.

Haski-Loventhal, D., Roza, L., Meijs, L., & C.P.M. (2017). Congruence in Corporate Social Responsibility: Connecting the identity and behaviours of the employers and employees. Journal of Business Ethcis, 143(1), 35-51.

Hodges, J. (2017). Cracking the walls of leadership: Women in Saudi Arabia. Gender in managment, 34-46.

Julia Christensen Hughes, E. R. (2008). Talent management: A strategy for improving employee recruitment, retention and engagement within hospitality organizations. International Journal of contemporary hospitality management, 20(7), 743-757.

Naseem, S., & Dhurva, K. (2017). Issues and challanges of Saudi Feamle Labor Force and the role of Vision 2030: A working paper. International Journal of Economics and Financial Issues, 23-27.