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Strategy quality managment in SABIC - Essay Example

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Strategic Quality Management (SQM) encompasses the application of refined methods and skills within tactical organization procedures to achieve a competitive advantage in the market. As part of its diversification plans to deflect the current global recession adversely affecting…
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Strategy quality managment in SABIC
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Strategy quality managment in SABIC

Download file to see previous pages... Custom Technology Solutions (CTS, 2006) describe strategic management as ‘a combination of strategy formulation and strategy implementation’ (P.5).
Saudi Basic Industries Corporation (SABIC), Saudi Arabia’s largest corporation is a global leader in the manufacture of chemicals, fertilizers, plastics and steel. The Saudi government is the majority shareholder with a 60 percent stake with the balance of shares distributed among the Gulf Co-operation Council (GCC) countries of the Middle East. It has a major presence in Asia particularly the Asia-Pacific region, North America, Europe and Africa in addition to the Arabian Peninsula [Figure 1] (Asia Pacific News, 2008).
Established in 1976, SABIC has a broad range of assorted merchandise encompassing ‘basic and intermediate chemicals, polymer resins and polyesters, fertilizers, metals and industrial gases -primary building blocks for products’. These are found in the conglomerate’s 21 manufacturing firms employing over 16,000 employees globally (Al-Abdulgader, 2007).
The demand for petrochemical products has increased globally thus ensuring SABIC future growth prospects are bright being one of the largest producers in the world with a rich natural source in Saud Arabia (Jaroudi, 2007). SABIC petrochemical production has subsequently quadrupled over the last fifteen years surpassing 45 million tonnes while aiming at raising the production to over 100 metric tonnes by 2015 (Thomasson, 2007). The company’s expansion plans targets the emerging Asian growth economies of China and India. In China, the country’s enormous expansion and development has meant it is unable to meet its demand for polyolefin resins thus needing 34 percent imports, which puts the Chinese market on top of SABIC agenda. According to SABIC’s country manager for China, Lee Lam Lee, ...Download file to see next pagesRead More
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