Defining the environment for middle east: Unemployment rate high Discontented young Emerging nationalism Desire for

self sufficiency Unstable politically Growing desire for single stop solution where everything can be done on the spot. Assumptions : Price of oil will remain high [so far seems to be rising trend] need to extrapolate oil prices Energy renewal will not affect Saudi Show energy consumption in the future Saudi Aramco : Expansionary targets next 5-10 years Investing in a lot of other industries/countries (which can justify high FA investment as it would open new doors) Distribution channels Need to move into a structure which is like tier 1. There is a limitation to how much you can help with technology Need an actual team to be there 1)partnering (Saudi pump factory) smaller firms which have 9comm or (Saudi mechanical industries company) 2)buying over and then pumping in resources Problem with the pump -industry is very conservative -need a giant to take it up Do we want to be strategic or solve the solutions on hand (distribution level) -use porters diamond -open manufacturing within the country to solve the unemployment -acquisition need to assess the political situation : is it generally stable? Or open up in a place with lower risk e.g Dubai or open up nearby (india) -tier one bidding Economy -mainly held up by oil -underinvested -lots of welfare -need to develop the chemical industry so that its not only dependent on one industry

-it has a high concentration of youths which are discontented with the current economic situations (messed up gini coefficient) -opens up an opportunity for capital development to back up our solutions we need to cut up the case : HRM : organic growth (how to get them to be accepted, bring Saudis over to headquarters, Question 2: How to handle distribution 1)about speed so can do last minute work 2)talented team must also be there on the spot 3)its about the creation of a local industry so need to leverage more on local talent 4)contradictory in nature : local means lower quality talent, done elsewhere means less control for people 5)tech problem as they may not have the supporting structure to do it [need to use porters diamond]