Completion Date
SABIC Corporate Film: A Critical Response
I. INTRODUCTION
SABIC, started over 30 years ago, has grown into a global company of combined vision (SABIC, 2016a; "Corporate Profile," n.d.). While innovation remains critical to sustain SABIC's business well into future, environment stewardship is at heart of company's business activities (SABIC, 2016a). Interpreted into core values, SABIC can be said to inspire, engage, create and deliver (SABIC, 2013). From a technological intervention perspective, SABIC has five innovation hubs ("Facts and Figures," n.d.). From an innovation perspective, SABIC is engaged with numerous partners in urban planning to deliver innovative solutions (SABIC, 2016b; SABIC, 2016c). To better understand SABIC's strategic capabilities, a closer look is required. This paper aims, hence, to analyze company's organizational in order to propose a practical strategic option for SABIC in business ethics and social responsibility areas in Oman.
II. CONTENT & ANALYSIS
SABIC is a global company which has grown into six major business areas: Chemicals, Plastics, Agri-Nutrients, Metals and Specialties ("Our Company," n.d.). To run a global company as SABIC successfully, SABIC's organizational strategies need to be analyzed. For current purposes, areas of HR Management, Information Management, Financial Management and Technological Management remain of specific focus.
For HR Management, SABIC has managed to maintain a well-educated and skilled human capital as corporate asset (SABIC, 2016d). Unsurprisingly, SABIC has grown into a company operating in 45 countries and employing 40,000 personnel, a diverse workforce cutting across different business functions and professionally developed in order to empower workers into a "People Who Can" company.
For Information Management, SABIC has at her helm of Corporate Human Resources Abdulaziz Al-Oudan, an expert in Information Technology ("Abdulaziz Al-Oudan," n.d.). Having held numerous senior positions at SABIC, Al-Oudan has been critical in leading Information Management efforts at SABIC. By placing an Information Management expert at company's corporate human resources helm, SABIC does not only emphasize how information management and human capital are inseparable in performing different business functions.
For Financial Management, SABIC's financial performance and record is an evidence of company's success. Notably, SABIC has managed to achieve an annual revenue of SR 148 billion, net income of SR 18.76 billion and tonnage of 70.4 MMT, showing an overall increase, particularly in EBITDA margin, compared to 2014 ("Performance and Financial Highlights," n.d.).
For Technological Management, SABIC has managed to promote innovation by enabling technological breakthroughs. Through Technology and Innovation Division and Technology & Innovation facilities in Saudi Arabia, USA, The Netherlands, Spain, Japan, China, India, and South Korea, SABIC has managed to drive business and innovation growth further accelerated by diverse talents employed by company in different R&D facilities and centers ("Technology and Innovation (T&I): Always Innovating For a Sustainable Future," n.d.). More specifically, SABIC launched a new Electronics and Electrical & Lighting Science and Technology which would enable SABIC to ofer solutions for plastic products which are "thinner, stronger, lighter and more efficient with innovative designs and potentially reduced manufacturing costs" ("SABIC Opens Electronics, Electrical And Lighting Technology Center," 2014).
Vision Development
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Late 1970s
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1990s & 2000s
2025
Thus, true to her foundation charter and long-range vision, SABIC has grown into a global enterprise whose "preferred world leader in chemicals" vision is becoming increasingly a reality as company's partners and operations continue to expand ("Vision," n.d.).
SABIC follows a fairly conventional management structure. The company is chaired by Prince Saud bin Abdullah bin Thenayan Al-Saud and has Yousef Abdullah Al-Benyan as Vice-Chairman and Chief Executive Officer ("Board Of Directors and Executive Management," n.d.). The company's management is made up of 10 Board Members including Chair and 13 Executive Officers, including Vice-Chairman and Chief Executive Officer.
As part of company's efforts to develop future leaders, SABIC Academy represents company's focal point where prospective company leaders network and exchange experiences (Changeboard, 2015).
SABIC's Code of Ethics guides staff and management ethical practices at SABIC (SABIC, 2013). Given how business ethics and social responsibility has become increasingly integral to current business practices (Minkes, Small & Chatterjee, 1999), developing a strategic option for SABIC's operations in Oman, known for a small market mentality and dominance of global players (Matthews, 2015), requires a careful approach. By comparing SABIC's size, operation and history to Oman's "small" market and business viability, a strategic option for business ethics and social responsibility can be summed up as follows:
III. CONCLUSION
SABIC is a global company which has grown both operations and reaches from Saudi Arabia into multiple locations and geographies. By successful implementation of HR, Information, Financial and Technological Management practices, SABIC has managed to enhance her market positioning as a global player in petrochemical industry. The company's executive built as well as her leadership development strategies have made possible a nurture of leadership talents, informed by company's vision, at different management levels. In Oman, a strategic option is developed for more sustainable business ethics and social responsibility practices. The strategic option matrix offers strategic options around areas of business Incubation, social responsibility and Strategic Partnerships.
REFERENCES
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SABIC. (2016a, July 27). SABIC Corporate Film – English. Available from: https://www.youtube.com/watch?v=AMicisnGE_Y [Accessed: 24th December, 2016]
SABIC. (2016b, May 29). Construction – Eng. Available from: https://www.youtube.com/watch?v=7Ijau3kS9Dw [Accessed: 24th December, 2016]
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