Potential Career Paths in the SABIC Company - Case Study Example

Potential Career Path Name: Institution: Potential Career Path The process of deciding on career path can become an expensive undertaking especially when an individual commits to an advanced degree for the same that may not eventually fit the aspirations. Career choices may involve hands on experience in a given job or gathering information about a prospective professional field through conducting an informational interview.1 An informational interview entails meeting professionals already in the career prospect and gathering information about the experience and what field demands or comprises of Information about a career prospect can also be obtained through a background research through the various search engines. These steps are crucial in determining whether a particular career choice fits an individual’s interests and aspirations. The career search is significantly different from finding employment because it involves information gathering about a potential career direction, and a learning opportunity before rendering a request for an employment opportunity in the chosen company2. However, in the process of gathering information especially through informational interview, it is possible to establish connections that may finally grant you an employment opportunity. A case scenario of Saudi Basic Corporation Industries is explores as a potential career path with the main aim of gathering information about the company and its operations. Saudi Basic Industries Corporation Background Information The Saudi Basic Industries Corporation (SABIC) is one of the leading multinational petrochemical dealers operating in about 42 countries. The multinational company was established in 1976 through a royal decree aimed at boosting Saudi Arabia’s stake in the world of hydrocarbons business3. SABIC has since grown to be one of the leading producers and manufacturers of chemicals and petrochemical products. Some of the end product include fertilizers, industrial polymers, plastics and metals. The company has expanded its operations into the global market through different global market entry strategies generally joint ventures and acquisition of fully owned subsidiaries in the 42 different countries where its operations have reached. SABIC has particularly entered into several joint ventures with other well-established multinational companies particularly in its petrochemicals segment of its business activities. The joint ventures have been instrumental in helping the company take advantage of the operational experience in the partner companies leading to significant success in its global market venture. The first joint venture took place in 1983 in which SABIC entered into a joint venture with a Japanese Consortium to begin the production of methanol. Within a span of two years, the company also entered into a 50/50 joint venture with ExxonMobil and Shell Companies, which saw the company, introduce another range of petrochemical products including ethylene and its derivatives4. Through this venture, the company was able to enhance its competitiveness in the highly competitive importer market segments in the Asian market. The joint venture strategy adopted by the company in its global expansion strategies is very much alive as evinced by the pending 50/50 venture with Mitsubishi Rayon Company due for the year 20135. In this venture, SABIC is expected to play the key role of supplying Mitsubishi Rayon Company with raw materials such as methanol and ethylene and methanol as the main ingredients in the manufacturing of methyl methacrylate monomer, a key component in the automobile sector. Other than, the joint ventures, SABIC acquired GE Plastics, a leading manufacturer of engineering plastics and resins in United States. This acquisition gave the company a superior competitive edge over its traditional rivals especially in the U.S. market. GE Plastics has reportedly been instrumental towards achievement of the company’s ultimate goal that is to the leader in the global chemicals industry6. Performance SABIC continues to foster impressive performance in terms of profitability and growth amid the growing financial challenges experienced around the globe. Financial reports from 2008 show impressive performance in both sales and net profits in which the company generated about $5.87bn net profits and $ 40.32bn sales7. The company has further performed exceptionally well in its business expansion as evinced by the series of joint ventures and acquisition in the recent past. The company’s production target continues to grow following its expansion with the recent targets hitting the 73million metric tons. According to Mababaya8 SABIC’s total output has exponentially grown from about 6.8 million tons in 1985 to more than 50 million tons to date. Development Strategy SABIC’S development strategy is anchored on the principles of economies of scale, feedstock cost advantage and proximity to the demand centers. The focus on cost advantage is to enable the company sustain its high operating rates regardless of the prevailing demand changes as a way of enlarging its global market share9. The company also strongly believes in diversification of its products that has been demonstrated via its wide range of products produced and supplied in the market. Geographical diversification strategy also creates a great avenue to grow its market share as the company aim at playing a leading role in the global petrochemicals industry. Through the strategic acquisitions and joint ventures, SABIC aims at spreading its good reputation and reliable distribution networks to other parts of the world. The company expects to conquer expansive regions including the Western markets and China other than focusing on the Asian market catchment only. On the other hand, SABIC has a well-established Industrial Complex for Research and Development, which plays a crucial role driving the company’s development strategy through promotion of technological growth, innovation and development of new products and diversification of its existing products to fit into the changing consumer demands10. Employment and Number of Employees SABIC has around 300,000 employees operating from different parts of the globe where the company has its operations11. The company recruits its employees from five different regions including the Americas, Asia, Europe and Middle East and Africa. The company recruits and employs around 5,000 professionals in its 17 locations in the Americas with majority in the U.S where company has established 11 locations12. The company’s recruitment process focuses on bringing on board career-minded, innovative, talented and energetic professionals. The Technology and Innovation centers located in different parts of the various regions are crucial in nurturing highly skilled young minds that later form an important part of the company’s team. SABIC provides great career development for its employees as well as attractive career opportunities for graduate trainees, student placements, and professionals from its job pool. The new employees are either assigned to the manufacturing sites, application centers and the technology and innovation centers. The European business region accounts for approximately 6,000 employees working in the manufacturing facilities, commercial sales offices and technology centers. The company provides the Saudi nationals opportunities specifically in the management position and the technical area as part of its corporate social responsibility to the Saudi people. In this context, more than 22,000 employees are recruited from the Middle East and Africa to fill the available positions in the company’s different operational centers13. As part of SABIC’s strategies to promote growth by having the right workforce, it offers different career development stages that include students through the Cooperation Program with known Universities and Colleges in areas where it has established its operations. Other stages include graduate trainees that are absorbed directly from the Universities through the Professional Development Program14. The company also offers scholarships to its employees interested in advancing their skills and qualifications. SABIC also sponsors training courses for its employees to encourage specialization and career diversification. SABIC’s Organization The Saudi Government is largest stakeholder, which has a 70 percent stake of the total company shares while the remaining shares are held by Saudi private investors and some members of the Gulf Cooperation Council15. At the helm of the company is a management team led by a Chief Executive Officer (CEO) who is tasked with the management of the company’s global management team. The company is placed under the oversight of a board of directors recruited from both the public and the private sectors. On the other hand, the company’s operations are divided into six business units including performance chemicals, Polymers, chemicals, metals, innovative plastics and fertilizers each under an Executive Vice President16. Although different managers are under the executive vice president, all executive vice presidents in the various business units that manage the company’s employees in different parts of the world are answerable to the overall CEO of the company and the board of directors. The company also operates many sales offices located in the different regions where it operates enabling easy accessibility of its products to its clients. The sales offices ensure that companies establish direct contacts with the company to promote good relationships with the clients. The sales offices are managed placed under the management of the overall company CEO. Organizational Culture The company promotes a culture of diversity within its workforce through recruitment different parts of the world. Of great importance is the culture of individual responsibility and initiative, which has emerged crucial in the realization of the company,’s various commitments including environmental conservation, safety and quality17. The company emphasizes on the culture of planning in all its operations, a culture that has seen the company survive changes and challenges in the global market. The company is particularly committed in ensuring that all its operations comply with environmental conservation and sustainability standards including proper disposal of waste and reduction of environmental pollution. SABIC is further committed in ensuring continuous development and enhancement of employees’ skills, competence and Welfare18. The company ensures that all operations are within its stakeholders’ expectations as well as focusing on reliability and safety in its operations. The company has a culture of working closely with its clients and stakeholders in order to ensure that their interests form the pivotal part of its operations. Job Description The identified job title is global marketing leader to be located in one of the company’s major locations in Europe. The job falls under the professional job type, and the category of marketing and sales in the company operations. The routine activities include identification of strategic market drivers, definition and execution of the adopted marketing strategies. Additionally, the efforts involve the development of promotion strategies, identification of emerging market trends, development of new programs, lead in achieving the market’s long term vision. Managerial leaders work together in different business units and liaise with the marketing communications team to develop effective marketing plans for the company products19. The strengths of this job are that it provides one with the opportunity to develop and enhance his marketing skills through interacting with the existing competent team in the company. The company provides a great opportunity for someone to grow professionally through its professional development programs as well as the provision of exposure to the dynamics of the global market. On the other hand, the weaknesses identifiable with this job include the numerous responsibilities and challenges associated with the day-to-day roles. The job requirements are also limiting for starters, in which the vacancy requires at least ten years of experience in marketing or technical sales besides academic qualifications of a minimum masters degree in the marketing field. Summary of Personal Views about the Job The global marketing leadership is a great job opportunity for anyone willing to advance his or her career in marketing to the best level possible. The job offers a great opportunity for growth through acquisition of marketing experience from the global market level. The numerous roles and challenges associated with the global marketing serve as strong point for enhancing individual competence to face future challenges in the marketing career. The benefits that may be accrued from this job include enhanced competence, global market experience, and expansive knowledge on the various aspects of marketing. Therefore, SABIC provides a great career path to that well fits my career aspirations. Bibliography Freedman, Toby. Career Opportunities in Biotechnology and Drug Development. New York, NY: CSHL Press, 2008. International Business Publications. Saudi Arabia Investment and Business Guide: Strategic and Practical Information. New York: Int'l Business Publications, 2009. Mababaya, Mamarinta. The Role of Multinational Companies in the Middle East: The Case of Saudi Arabia. London: Universal-Publishers, 2003. Oxford Business Group. The Report: Saudi Arabia 2009. Oxford: Oxford Business Group, 2009. SABIC company. “Home”. SABIC company, http://www.sabic.com/corporate/en/default.aspx (accessed August 30, 2012). Read More