Comprehensive Global Analysis Outline

Region Analysis

Regional Alliances and Economic Integration

The Middle Eastern region is among the leading regions in the globe in regard to economic growth as well as the size (Budhwar, 2016). The region has connections with the western and the European regions which positions it in a rather attractive position for conducting business. For countries such as Saudi Arabia, they are economically connected with the developed states such as China and US due to its high supply of Oil (Budhwar, 2016).

Physical Environment and Its Effect on Trade

The country is characterized by an extensive size that accommodates close to 16 million individuals (Budhwar, 2016). The size and the fact that it is surrounded by other powerful nations like Qatar and UAE have facilitated economic development rather positively. This physical environment is dominated by well-developed roads and infrastructure in general supports trade development as well as an economic investment both for domestic and foreign investors (Budhwar, 2016).

Political Stability

The political state in the Middle Eastern region is favorable to accommodate investment. In that, both domestic and foreign investors are highly favored by this stability (Budhwar, 2016). The region is dominated by positive relationships among the existing states and the connection is either political or economic based.

Economic Conditions

Middle Eastern region is categorized to be among the wealthiest regions. However, the economy is mainly dependent on its high oil production which is gradually reducing thus requiring the state to focus on diverse investments. The economy is developing rather rapidly with its GDP increasing by about 14 percent which shows that it is sustainable (Fawcett, 2016). The living standard in the country is the highest in the region with the rate of unemployment being below 12 percent (Budhwar, 2016).

Finance Options Available

Income is primarily derived from business based activities since the rate of employment in the industrial sector is not adequate for the high population. This, therefore, means that the general disposable income is high (Fawcett, 2016).

Social, Health, And Environmental Conditions

Based on the stability of the region most individuals are literate. In addition, the health status is positive based on the well-developed healthcare sector. The region is slowly adopting the western living standards as the society is open to recreational, sporting and tour activities (Fawcett, 2016).

Terrorism Threats

Despite the fact that the Arabian region is said to be at risk of terrorism it is however not the case in the Middle East as the countries are consistently focused on reforms and security measures. However, the risk is still high as compared to the western region (Fawcett, 2016).

Country Risk Analysis

Political and Legal Stability

Saudi Arabia is a monarchy based country which is ruled by a king as the head of the government and state (Fawcett, 2016). The form of leadership is a hereditary one. There are no chosen legislatures as matters are handled by an appointed council that is characterized by limited authority but this does not affect the power and structure of developing decisions (Fawcett, 2016). The regional political stability is adequate to entice investors. Despite the fact that the region is highly developed technology is adopted rather slowly and thus the smartphones business which is guided by affordability can be effective. Both the political and the legal sectors are stable (Budhwar, 2016).

Economic Conditions

Saudi Arabia is the leading country among all the Arabs country in regard to size and economic potential. The country has connected borders with countries such as Jordan, Qatar, and Iraq and so on (Fawcett, 2016). The country relates well with other states within the region, particularly in economic activities. Being the largest producer of oil in the global it has created strong economic bonds with other developed countries such as UK and America (Fawcett, 2016). The country is categorized as the regional authority with the highest income generation and an increasing GDP thus falling under the category of the most authoritative countries globally (Budhwar, 2016).

Finance Options Available

Income in Saudi Arabia is mainly acquired from only generation and business activities. In this context, most individuals in the country are employed despite the fact that employment is still at about 20 percent which is particularly high particularly among the youths. The financial state is rather stable and the highest among all the Arab countries in the region (Fawcett, 2016).

Physical Environment and Distribution Channels

Saudi Arabia is a monarchy based country which is ruled by a king as the head of the government and state (Fawcett, 2016). The form of leadership is a hereditary one. There are no chosen legislatures as matters are handled by an appointed council that is characterized by limited authority but this does not affect the power and structure of developing decisions (Fawcett, 2016). The regional political stability is adequate to entice investors. Despite the fact that the region is highly developed technology is adopted rather slowly and thus the smartphones business which is guided by affordability can be effective.

Social, Health, and Environmental Conditions

The country has the highest populace of educated and well-equipped people in regard to skills and knowledge. The country has made education for young children compulsory to lower the illiteracy (Fawcett, 2016). Individuals in the country live long due to the positive healthcare and environment that is highly preserved.

 Cultural and Ethical Considerations

The country is highly dominated by the Arabian culture and Islamic religion which governs almost every aspect of living (Halliday, 2005). It is therefore essential to be respectful when conducting business there and adhered to their practices.

Organization and Product or Service Analysis

 Description of Your Organization

The company name is Smart-Life which will be offering smart mobile phones at affordable, convenient and accessible means. This report will focus on a market venture analysis in regard to Saudi Arabia market and the selected product is Smartphone. The company will be situated in Saudi Arabia based on the high potential in the market for technological products. The company will be offering retailing services.

Legal Structure of Organization

The legal structure that the business will occupy is a partnership. The company will partner if one of the well-established companies in the market to overcome the involved risks of running the organization in a fresh market. Based on the existing uncertainties the organization will focus this structure also to increase its marketing efforts.

Market Analysis

The market is a potential one since it is comprised of the largest population that will accommodate high sales. Since the largest population is comprised of youths this demonstrates that the business will thrive. Also, the company will be operating using the cost leadership approach and therefore, it is likely that this will entice more consumers since more than 70 percent of the population is made of middle and low-class individuals this strategy will be effective (Fawcett, 2016).

Description of Product to Meet the Need

The smart-Life products with adhere to diversity, differentiation, affordability, and friendliness. In that consumers are highly seeking for products that are of high quality but they are also particularly sensitive to cost. With the innovative products, the company will meet the general needs of consumers in the market.

 

References

Budhwar, P. S. (2016). Handbook of human resource management in the Middle East. Edward Elgar.

Fawcett, L. (2016). International relations of the Middle East. Oxford University Press.

Halliday, F. (2005). The Middle East in international relations: Power, politics and ideology. Cambridge [u.a.: Cambridge Univ. Press.