7. Analysis
Metrics for the organization
With Sabic being a petrochemical industry, with the main business units being
petrochemicals, specialties, and Agri nutrients, the organization’s performance metrics needs to
be aligned with their business units. Under these business units, looking at how the people
perform, the manufacturing processes’ performance, and the sale of the products reveals the
performance of the business. The employee satisfaction and skill level of the management
directly impact the process efficiency and success which in turn affects the products, the
products sales, and the overall profit. External factors such as world prices, and geopolitics also
play a hand in the performance of Sabic.
Stage 1 Input
Sabic uses the differentiation competitive strategy to outdo its competitors since the
customer’s perception highly makes a difference in a competitive environment with many similar
products. This strategy can be seen from the analysis of the organization’s operations.
Internal Factor Evaluation
Weight Rating Score
Strengths
Highly skilled workforce 0.3 3 0.9
Reliable market 0.2 2 0.4
Weaknesses
Depending on non-renewable raw materials 0.1 4 0.4
Inefficient supply chain 0.05 2 0.1
Opportunities
, Using the research and development team to out-innovate 0.05 3 0.15
better products
Joining with other organizations can improve services 0.1 3 0.3
Threats
Management of the organization may not always be allocated 0.1 2 0.2
to the most qualified individual
Petrochemical manufacturing has a lot of potential hazards to 0.1 3 0.3
the personnel.
Total 1.0 2.75
External Factor Evaluation
Weight Rating Score
Strengths
Saudi Arabia government support. 0.2 4 0.8
Availability of large oil deposits in the country 0.2 4 0.8
Weaknesses
Sublicensing of technologies 0.05 3 0.15
Political instability in Middle Eastern nations. 0.1 3 0.3
Opportunities
Investment from external countries such as the United States 0.1 4 0.4
Adhering to international climate policies and reducing 0.05 4 0.2
carbon footprint will increase sales.
Threats
International shift to renewable sources of energy 0.2 3 0.6
Metrics for the organization
With Sabic being a petrochemical industry, with the main business units being
petrochemicals, specialties, and Agri nutrients, the organization’s performance metrics needs to
be aligned with their business units. Under these business units, looking at how the people
perform, the manufacturing processes’ performance, and the sale of the products reveals the
performance of the business. The employee satisfaction and skill level of the management
directly impact the process efficiency and success which in turn affects the products, the
products sales, and the overall profit. External factors such as world prices, and geopolitics also
play a hand in the performance of Sabic.
Stage 1 Input
Sabic uses the differentiation competitive strategy to outdo its competitors since the
customer’s perception highly makes a difference in a competitive environment with many similar
products. This strategy can be seen from the analysis of the organization’s operations.
Internal Factor Evaluation
Weight Rating Score
Strengths
Highly skilled workforce 0.3 3 0.9
Reliable market 0.2 2 0.4
Weaknesses
Depending on non-renewable raw materials 0.1 4 0.4
Inefficient supply chain 0.05 2 0.1
Opportunities
, Using the research and development team to out-innovate 0.05 3 0.15
better products
Joining with other organizations can improve services 0.1 3 0.3
Threats
Management of the organization may not always be allocated 0.1 2 0.2
to the most qualified individual
Petrochemical manufacturing has a lot of potential hazards to 0.1 3 0.3
the personnel.
Total 1.0 2.75
External Factor Evaluation
Weight Rating Score
Strengths
Saudi Arabia government support. 0.2 4 0.8
Availability of large oil deposits in the country 0.2 4 0.8
Weaknesses
Sublicensing of technologies 0.05 3 0.15
Political instability in Middle Eastern nations. 0.1 3 0.3
Opportunities
Investment from external countries such as the United States 0.1 4 0.4
Adhering to international climate policies and reducing 0.05 4 0.2
carbon footprint will increase sales.
Threats
International shift to renewable sources of energy 0.2 3 0.6
