Structure and Operation Management and Business

Question: Discuss about the Structure and Operation Management and Business. Answer: Introduction This essay describes the structure and operations of the Saline Water Conversion Corporation (SWCC) in Saudi Arabia, in order to describe various business theories and strategies. The essay focuses on the emergence of the organization along with the impacts of various environmental factors on the business operations of the organization. The essay also focuses on the risk management strategies of the organization along with the business practices and business model employed in the workplace of the SWCC. This in turn provides an overview of the entire organization in relation to the corresponding business theories and concepts. Emergence of the organization The Saline Water Conversion Corporation (SWCC) in Saudi Arabia was established in the year 1974, in order to tackle one of the most important global issues of shortage of drinking water and shortage of electricity. The organization was established as a government company. The organization was established with high establishment costs and capital investment for the infrastructure. All the earnings and liabilities are the sole responsibilities of the organization itself. As per the structure of a company, the SWCC has a number of shareholders along with the government. The organization is run by a board of directors responsible for taking important business decisions. The organization operates with a vision of leading the international market in sea water desalination and power production (Glendon, 2016). Impacts of the environmental factors This section of the essay focuses on the impacts of various environmental factors on the operations of the SWCC in the corresponding market. The environment of the SWCC can be defined to be of two important categories, external and internal environment. The external environment of the SWCC consists of the political, economic, social, technological, legal and environmental factors that affect the operations of the organization in the corresponding market. Political factors The operations of the SWCC in Saudi Arabia is supported by the political factors as the organization is backed by the government of the country. Economic factors The economy of Saudi Arabia is stable enough to support the business operations of the SWCC. This in turn allows the SWCC to have a positive and supportive environment to carry out its business operations. Social factors The business operations of the SWCC focuses on the desalination of the sea water to produce drinking water and power, which in turn tackles one of the most important global issues of the current time. This in turn allows the organization to have a positive social image and supportive societies to carry out its business operations (Dorfman, 2012). Technological factors The societies in Saudi Arabia contain the required technologies to allow the organization to have smooth business operations. The societies in Saudi Arabia contains the required technologies for effective sea water desalination and power production. Legal factors As mentioned earlier, SWCC is a government company backed by the government, which in turn allows the legal framework of the country to support the operations of the organization (Khondaker, 2015). Porters five forces model Porters five forces allows the business operations of the organization to be analyzed in an effective manner. This section provides an overview of Porters five forces model applied to SWCC in Saudi Arabia. Threats of new entrants The threat of new entrants in the corresponding industry and market is quite low as the SWCC has been operating in the corresponding industry for a long time and the high establishment costs create a high entry barrier for the new organizations (Dorfman, 2012). Threat of substitutes The services provided by SWCC aims at the desalination of the sea water, which doesnt have ay substitutes. This in turn allows the organization to have low threat of substitutes. Competitor rivalry The support of the legal bodies and government of the country for the operations of the SWCC allows the organization to have low threat from the competitors. Supplier power and buyer power The support from the legal system and the government along with the presence of the organization in the corresponding industry for a long time, allows the organization to have low threats from supplier and buyer power as well (Glendon, 2016). Risk management As any other organization, SWCC also faces a lot of risks to its business operations in the corresponding market of operation. The Saline Water Conversion Corporation (SWCC) implements an effective risk identification and mitigation strategy to identify the risks to the business operations and mitigate them effectively (Al-Nory, 2013). Risk identification The process of risk identification allows the board of directors of SWCC to identify various risks to the business operations of the organization, based on the reports of various research teams across the entire organization. Some of the risks to the business operations of SWCC are mentioned below. Instability in the technological innovations implemented by the organization Negative impacts of the machinery on the sea water Lack of budget to carry out several new research and development activities Conflicts and differences of opinions among the employees Impacts on the health and safety of the employees in the workplace Failure in getting permissions for various research activities Risk mitigation The board of directors of the SWCC has implemented a set of effective risks mitigation strategies which mitigate different risks to the business operations of the organization in different ways. This in turn allows the business operations of the organization to be carried out efficiently. Some of the strategies implemented in the SWCC for risk mitigation are mentioned below. Risk acceptance The risks which are very low in significance and their impact on the business of the organization are accepted by the board of directors. The board of directors of SWCC accepts the risks which doesnt have significant negative impacts on the organization, which in turn allows the organization to be ready of these risks (Grant, 2016). Risk avoidance Some of the risks having significant impact on the business operations of the organization are avoided by the board of directors of SWCC. These risks are avoided on the basis of a comparison between their impacts on the organization and the costs of mitigating it. One of the examples of the risks which are avoided by the board of directors of SWCC is the research activities which are risky to the health and safety of the employees in the workplace (Khondaker, 2015). Risk limitation This strategy allows the SWCC to limit the negative impacts to certain risks by modifying the corresponding business operations of the organization. This in turn allows the organization to be ready for these risks with appropriate preparations. Risk transfer This strategy allows the SWCC to transfer certain risks to the insurance companies and third party partners in order to minimize their impacts on the business model of the organization (Ouda, 2014). This section of the essay focuses on the business practices and guidelines implemented by the SWCC in its workplace. High performance work practice system The board of directors of the SWCC implements certain business policies and guidelines as per the high-performance work practice system principles identified by Lawer and Worley in 2006 (Ouda, 2015). Even though the workplace of the SWCC is driven by the employee hierarchy in the business model, the employees of the organization have significant power in the business operations of the organization. The power in the workplace of the organization is evenly distributed among all the employees (Kajenthira, 2012). The management of SWCC always ensures that all the employees in the workplace are informed of all the updates and changes in the business processes. This is ensured through the efficient implementation of various information and communication technologies in the workplace of the SWCC (Al-Ibrahim, 2013). The management of the SWCC maintains a regular and effective training and development plan for all the employees. These training and development activities along with the frequent inclusion of the employees in the important business decisions allow the employees to be quite knowledgeable (Groissbck, 2016). The efficient rewards and recognition policies of the SWCC in the workplace allow the organization to have a motivated and efficient workforce. The rewards are provided to the efficient employees at various times along with recognizing them in public forums (Al Mallakh, 2015). Business model The SWCC is operated on the basis of its business and operational model. All the functions of the organization are divided among the various business units in the organization. The financial operations of the organization are handled by the finance team and the supply chain management of the business model is handled by the corresponding team. The organization also implements effective human resource policies along with corresponding teams for the effective management of the workforce of the organization. The organization also employs a customer relationship team for the management of customers and various stakeholders of the business operations of the organization. The organized structure of the business model allows the organization to have efficient business operations in the corresponding market (Ahmad, 2014). Conclusion The efficient business operations of the SWCC in Saudi Arabia are based on the development and implementation of various business theories and concepts. 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