Business Environmental Analysis Report on Saudi Arabia

Business Environmental Analysis Report on Saudi Arabia

Purpose of the Report

Globalization has completely transformed the way organizations operate currently. Many organizations have looked to target foreign territories in order to diversify its operations as well as enhance the utilization of profitable opportunities. In the earlier years, organizations used to operate on a nationwide basis. Thus they were not able to diversify their operations and their profitable opportunities were restricted. With the advent of globalization and access to the latest technology, many organizations are now becoming multinational organizations. Organizations benefit greatly with the aspect of globalization in place and have minimized the threat of competition.

We would conduct a comprehensive business environmental analysis of Saudi Arabia and look for the opportunities to expanding internationally. Saudi Arabia is a great hub of international activity and thus we would explore the core factors that directly shape up the success of organization's international goals. Since there are a number of diverse factors associated with international expansion, we need to discuss the intricacies of each factor on an individual basis. Organizations looking to expand internationally attach a high level of importance to these factors since these factors play a high role in the overall accomplishment of an organization's international goals.

Some of the core factors associated with international expansion of organizations pertains to addressing the political, economic, social, environmental, legal and technological factors. Thus we would explore these factors in the context of Saudi Arabia and understand the intricacies associated with each of these factors.

Natural Resources and Environmental Sustainability

Saudi Arabia has been plagued with the environmental issue of pollution to a great extent. The Environmental Protection Index ranked Saudi Arabia at 82nd out of 132 countries in 2012. On the basis of these results, we can assume that Saudi Arabia failed to a great extent in adopting controlling mechanisms for pollution as well as natural resource management conservation (Anon, 2012).

In the case of Saudi Arabia, there is large scale air pollution caused by the dust storms. Another issue which is of increased significance in the context of Saudi Arabia is the marine contamination which constitutes a significant environmental concern in Saudi Arabia. The marine environment of Saudi Arabia has been affected to a great extent with the rising cases of oil spillages as well as excessive dumping of oil processing waste. On the other hand, Saudi Arabia has made significant progress in accomplishing its goal of conservation and preservation of its natural habitat (Chowdhury & Zahrani, 2013).

Saudi Arabia has been credited with the adoption of effective environmental measures that have significantly reduced the level of emissions. In addition to this, the international commitments implemented by Saudi Arabia have gone a long way in minimizing the threat of environmental concerns. The growth rate pertaining to carbon dioxide emissions in Saudi Arabia have reduced to a great extent during 2004-2007. Whereas in 2010, the growth rate of emission s grew at 9.2% in comparison with the growth rate ...