Report on SABIC Petrochemical Manufacturing Company performance and strategic analysis

SABIC Petrochemical Manufacturing Company.

Introduction of SABIC Petrochemical Manufacturing Company performance and strategic analysis

SABIC is an expanded petrochemical manufacturing company in the Saudi that is active in petrochemicals, industrial polymers, chemicals, metals, and fertilizers. In this report, there is a discussion about the SABIC petrochemical manufacturing company performance and strategic analysis. The SABIC is also among one of the major petrochemical manufacturing companies in the world, and it has a huge dominance in global petrochemical industry. In Riyadh, Saudi Arabia, SABIC is a public company. Around Company's 70 per cent shares are preserved by the government of Saudi Arabia, with an outstanding 30 per cent traded on openly in the Saudi stock exchange.

SABIC company spent almost SR 563 million at the University of King Abdullah of science and technology for research centres. SABIC company provided the scholarships to 70- young children. The company accommodated the scholarship for engineering and business degree courses in the United Kingdom. The company ran a granted project for disabled children worth SR 7 million ($ 1.9 million). Company bore their all expenses, including education and treatments. SABIC company compensated many of Saudi employees with attractive salaries and other facilities. SABIC company provided the 134,446 hours of training for environmental, health and safety matters. The company reported a program named SAFER to effect on the environmental, health, safety, and security (EHSS). SABIC company has affected the system of assessing, identifying, mitigating and recording the environment.

Performance of SABIC Petrochemical Manufacturing Company

Clear, consistent, long-term objectives of SABIC Petrochemical Manufacturing Company

 In the SABIC, the long-term relationships of the company with the customers are built on solid chemistry.  The main objectives of the company are to work together with the other players in the industry.  The SABIC built the relationships on the empathy and curiosity required to overcome the customer challenges.  The main goals of the SABIC are to responsibly offer the quality services and products via improvement, operational excellence and learning while supporting supreme stakeholder's value. The SABIC Company objectives are to recognize what is imperative, providing the answers that are cost-efficient and tailored. 

b. A profound understanding of the environment of SABIC Petrochemical Manufacturing Company

The SABIC understand that in today's worldwide marketplace to succeed, sustainability and environmental responsibility should be surrounded in doing business.  The mission of the SABIC is to assimilate the social, environmental, and economic scopes of the sustainability into the main strategy of a business, and to guarantee that business has a good megatrend understanding that will affect the society, and company, for numerous decades. The SABIC also identify that reaction to these megatrends should be combined into the fabric of processes in the business, priorities and tools. From a perspective of sustainability, the SABIC also inspect megatrends, for example, resource scarcity and climate change, after that SABIC consider the potential impact of environmental sustainability on the business.

c. An objective appraisal of resources of SABIC Petrochemical Manufacturing Company

Alabdullatif, (2017), according to the researcher about the Saudi Basic Industries (SABIC). The company was one of the best and biggest petrochemicals company in the world. The company had the fifth position in the world in leading petrochemicals. The company has a green logistic place that effects on its profitable supply chain. The company had its branches in fifty countries across the world, and it had 40,000 people as an employee. The served their products in many countries. They ran up to six different businesses such as chemicals, fertilizers, fertilizers, metals and many other innovations in the chemical products. SABIC tried to decrease the carbon harmful effect for development of the solutions of sustainability, human capital, resources and energy efficiencies that impacted in the better way to the issues of green logistics. SABIC company tried to reduce the air pollution impacts that were harmful to the human and also for the animals. SABIC company effectively managed the problems to reduce the unsustainable problems (Alabdullatif, 2017).

Effective implementation of SABIC Petrochemical Manufacturing Company

The company hypothesis sponsor that the legitimate delegates of the association the administrators are not willing to bear the cost of their association the expenses of social behaviours; rather, they decided to obtain activities as their parts manage, since they are operators of the principal. Nowadays CSR is assistance among the unusual organization, worldwide in addition to nationwide, universal furthermore limited legislative with non-governmental, in addition to communal plus confidential, manufacture the idea of innovation inside the society (Gravem, 2010).

Porter's five forces of competition framework of SABIC Company

 What is the level of competition in your company’s industry?

 In the market of Saudi Arabia, the competition of the SABIC Company is relatively higher as compared with the global competition. In Saudi Arabia, there are a lot of companies operate in the petroleum and chemical industries. The SABIC Company still have a lot of potential in the global market because of its dominating position in the industry of chemical and petroleum (Al-Ghamdi & Sohail, 2006).

How easy is it to find an alternative to your company’s products and services?

Because the SABIC Company is doing its business in the petrochemical industry, so the threat for the business for a new alternative is relatively low.  In the petrochemical industry, the product cannot be alternate very easily and cost for making related products is also very high. 

How powerful are your company’s buyers and suppliers?

For the SABIC Company, the bargaining power of the buyer is low because there is not a lot of alternatives for the buyers and the prices of the petroleum products are also fixed depending on the global rates. The bargaining powers of the suppliers for the SABIC Company is also very low because for the suppliers in the Saudi Arabia market there are not a lot of alternatives to shift to and because the company’s position is very dominating so the suppliers did not have huge margins to increase the prices.

 What’s the threat of new businesses starting in this industry?

In the Saudi Arabia market, there are already some big giants of petroleum are working. First of all, the cost of establishing the new business in the petroleum and chemical industries is very high. It is also hard for the new business to get the trust of the customers over the company that is already working in the market. So the thread for the new business is also low for the company.  

 Conclusion on SABIC Petrochemical Manufacturing Company performance and strategic analysis

Summing up the discussion about the SABIC Company performances and petroleum and chemical products, it can be said that the company accommodated the scholarship for engineering and business degree courses in the United Kingdom. The company reported a program named SAFER to effect on the environmental, health, safety, and security. The main goals of the SABIC are to responsibly offer the quality services and products via improvement, operational excellence and learning while supporting supreme stakeholder's value. They ran up to six different businesses such as chemicals, fertilizers, fertilizers, metals and many other innovations in the chemical products.  SABIC company tried to decrease the air pollution impacts that was damaging to the human. The SABIC Company still have a lot of potential in the global market because of its dominating position in the industry of the chemical and petroleum. The petrochemical industry the product cannot be alternate very easily and cost for making related products is also very high.\

References of SABIC Petrochemical Manufacturing Company performance and strategic analysis

Alabdullatif, T. (2017). SABIC Green Logistics Systems & Profitability. JONKOPING UNIVERSITY JOURNAL .

Al-Ghamdi, S. M., & Sohail, M. S. (2006). Sustaining competitive advantage in the global petrochemical industry: a Saudi Arabian perspective. J.

International Business and Entrepreneurship Development.

Gravem, M. (2010). CSR in Saudi Arabia. The University of Oslo Faculty of Theology.