Saudi Business Machine 1

Business Strategy for Saudi Business Ltd

3753 Words
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Contents
Executive Summary.........................................................................................................................3

Basic information about company...................................................................................................4

Strategic decision.............................................................................................................................5

Vision...............................................................................................................................................5

Mission............................................................................................................................................5

Values...............................................................................................................................................5

Strategic objectives..........................................................................................................................5

Strategic analysis.............................................................................................................................6

Key features of external environment..............................................................................................7

Internal analysis...............................................................................................................................9

Strategic implementation...............................................................................................................11

Challenges......................................................................................................................................13

Conclusion.....................................................................................................................................14

References......................................................................................................................................15
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Executive Summary
The objective of this project is to identify and review the critical management decisions needed

for digital business transformation in order to develop a digital business strategy for Saudi

Business Machines Ltd. SBM provides contemporary business services to clients throughout the

Saudi Arabia Kingdom. Its potential as a provider of comprehensive solutions is enhanced by the

range of services it provides, including networking, system integration, advice and

implementation, business recovery, and operational support. SBM's mission has always been to

help the Kingdom achieve its ambitions for a prosperous digital future by assisting in the

adoption of new technologies in support of its digital initiatives. This connection is critical to

achieving the Kingdom's digital objectives (Mofokeng & Chinomona, 2019. Saudi Arabia will be

able to expand its cutting-edge offerings, create new and inventive business models, and expand

its digital ecosystem more quickly thanks to the company's enhanced connections, which

position it as the leading digital economy in the region. The business is progressive, but it could

be much more than it is now if it made more of an effort to set itself apart from its competitors

with its cloud services. Reimagining a business that presently outperforms its competitors in

terms of marketing strategy is a challenging task. For example, SBM can bolster its position by

highlighting its stellar performance history and sizable customer base. The company maintains a

consistent Facebook presence, allowing it to inform clients about the latest transactions and share

details about its amazing rise to the top of the computing sector. If the company is serious about

growing its clientele, it needs to concentrate on improving its reputation. Maintaining the

corporate website up to date and with the same content as the Facebook page allows you to keep

it from getting stale and forgotten.

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Basic information about company

Given the region's growing prominence on the international stage, it is evident to note

that Arab economies are flourishing. Saudi Business Machines (SBM), founded in 1981 by the

Juffali Group is an example of such a company. Saudi Business Machines is the go-to company

for comprehensive corporate IT solutions based on the whole range of IBM hardware and

software, serving as the General Marketing and Services Representative of IBM World Trade

Corporation in the Kingdom of Saudi Arabia. Numerous services, such as networking, data

backup and restoration, and operational support, are among the many that SBM can offer

(Aljoghaiman, 2022). For a wide range of hardware, including both IBM and non-IBM products,

SBM provides customized support. Thanks to its 600 employees spread across its Jeddah

headquarters, Riyadh, Al Khobar, and Jubail branch offices, SBM is able to offer services to

customers all over the Kingdom. Arabian American Oil Company and IBM made an agreement

in 1956 for the use of IBM's serviced office space. This business represented IBM in the US as a

general sales and service agent in 1986. In terms of the capital, SBM is the leading IT service

company in Saudi Arabia, with a market share of 17.8% in IT services.

Presently, SBM offers clients all over the Kingdom state-of-the-art commercial services.

Its potential as a provider of comprehensive solutions is enhanced by the range of services it

offers, which includes networking, system integration, guidance and implementation, business

recovery, and operational support. Not only does SBM sell hardware made by IBM, but they also

maintain and support a variety of other manufacturers' products. SBM is able to implement

information and communications technology (ICT) solutions on a large scale in Saudi Arabia by

utilizing IBM's worldwide processes, resources, and knowledge bases. The Integrated

Technology Services division of SBM helps customers maximize their information technology
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budgets by providing services that enable, integrate, optimize, and manage business

infrastructures. Such kind of processes have enabled the organization to respond to customer

demands with greater agility. The impact of this is that it has helped the company to gain a

competitive advantage in the information technology market.

Being IBM's agent in Saudi Arabia gives SBM a competitive advantage that makes it a

profitable business. Saudi Business Machines promotes itself by offering top-notch goods and

services to its clients. In addition to being creative, cutting edge, and professional, focusing on

the needs of the consumer, and producing a large number of new products while also enhancing

the ones that already exist, the company's strong culture, vision, and values serve as the

cornerstones of its self-marketing strategy. Consequently, this gives it a competitive advantage

over its competitors in the market.

Strategic decision
Strategic decision is important because it guides the organization on the way forward and

what they should achieve within a set timeline.

Vision
The company SBM seeks "to grow as a fluid learning organization, to be the premier

center for IT knowledge production, and to be a magnet for great minds”. The company develops

products and offers services in an effort to achieve this vision.

Mission
The mission of SBM is to unleash the potential within its members to enable them to

transform their respective industries.

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Values
The values of the company are excellence, commitment, reliability, innovative, collaborative,

passionate, and dynamic.

Strategic objectives
To create a better future for the Kingdom of Saudi Arabia, SBM maintains the following strategic

objectives;

1. Develop new information technology; transfer existing systems; and foster profitable,

mutually beneficial long-term business partnerships with each of our clients.

2. To deliver cutting-edge, all-inclusive information technology solutions to our clients

while ensuring the highest caliber of support services.

3. To continuously develop the diverse range of skills and abilities possessed by our

workforce in order to support the expansion of the Saudi economy and the community.

Key performance indicators (KPIs) are measurable metrics that are used to assess the overall

long-term performance of an organization. KPIs in particular assist in identifying the strategic,

financial, and operational accomplishments of a business, particularly in relation to other

companies operating in the same industry. In terms of SBM, the key performance indicators are

based on sales, marketing, customer, and financial performance.

A company can monitor their sales performance with the help of sales KPIs. Metrics like

revenue, average purchase value, cost of acquiring new customers, and retention are used by

SBM as a key performance indicator on their sales. The evaluation of your marketing campaigns'

efficacy is the primary focus of marketing KPIs. Metrics like website traffic, conversion rate, and

social media interaction are used by SBM as a key performance indicator on their marketing

activities. Sales data is typically combined with insights obtained from marketing KPIs. Besides
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that, the company also uses financial metrics including revenue growth, profitability, return on

investment (ROI), and cash flow to determine their financial performance. They offer

perceptions into the stability and soundness of your company's finances. Measuring your success

in fulfilling the requirements, expectations, and preferences of your customers is the main goal of

customer-centric KPIs. Customer retention rate and customer satisfaction are also used to

measure the performance of the company with their customers.

Strategic analysis
Saudi Business Machines operates under the tenet that it owes it to its different

stakeholders. They include the shareholders, employees, and clients to provide the best goods

and services possible, to maximize the company's assets, and to promote its business interests.

With this mindset in mind, SBM works hard to ensure that the businesses and organizations it

partners with achieve market leadership and that their customers receive the best products and

services available. The company upholds its fundamental values, which include hiring only

subject-matter experts and valuing professionalism, enthusiasm, modernism, and dependability.

It only hires people with the most training and experience in their respective fields as a result.

SBM Company is doing pretty good. Despite an approximate 14% decrease in overall

sales in 2015, SBM remained remarkably prosperous and successful businesses. Saudi Business

Machines' main form of advertising is the provision of high-quality goods and services. The

company uses its unique vision and ideals, commitment to customers, professionalism, and rapid

release of new products as differentiators against rivals in their marketing. The cornerstone for its

stability and success is integration. To help SBM break down its challenges into more

manageable chunks, experts in a variety of fields provide assistance, including hardware,

software, maintenance, and site enablement services.

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Another of SBM's advantages is the approach it takes to visitor management. By keeping

track of all of its patrons and the staff members who assist them, the business can guarantee that

each and every one of its clients receives excellent care. Being totally trustworthy has helped our

company establish a solid reputation with both clients and staff. SBM has the ability to allay the

worries of both its clients and staff while also cultivating a reliable environment that promotes

employee health.

Another noteworthy feature of SBM is its paperless workplace, which not only reduces

the company's carbon footprint but also emphasizes its innovative spirit. We may assess the

firm's current level of innovation and offer some suggestions for future development, since all

businesses should seek innovation since they are always changing and evolving. First of all,

adopting a green strategy is a progressive move that includes protecting the environment and

minimizing the company's negative effects on it. This is important because it not only saves on

cost but also on preserving the environment. The company also tries its level best to create an

open-door policy where the staff members are given an opportunity to air their views and ideas.

This ensures that they feel part of the organization.

Key features of external environment

SBM offers its products and services along with comprehensive and individualized

business support. SBM has built its systems from the ground up to be as adaptive and flexible as

humanly possible. This makes it possible for the business to satisfy the constantly shifting needs

of the market, its clients, and the solutions it offers. With access to global standards, protocols,

instruments, and databases, the company can offer any necessary solution. We have made great

strides toward our objective of assisting in the advancement of Saudi Arabia's technological

infrastructure, with support from IBM and other important commercial partners.
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IBM WTC has partnered with Saudi Business Machines Ltd. to meet all of its marketing

and maintenance needs in Saudi Arabia. Furthermore, they offer businesses in the Kingdom the

most advanced and comprehensive telecommunications and information technology (IT)

services. This agreement will help the Kingdom get closer to realizing the objectives of Saudi

Vision 2030 and may even spur further growth in the digital economy. Due to their commitment

and diligence, SBM has been named as a premier partner in Software AG's global partner

program for the area.

However, the external environment also has competitors and new entrants into the market

who are competing with SBM for the available customers in the market. The increased

competition from external forces has made SBM to formulate new marketing strategic decisions

that would enhance service delivery and set it apart in the market. The company has devised new

ways that have made it competitive in the market. For instance, the rise in overall economic

activity and productivity improvement can be largely attributed to the advent of digital

transformation.

SBM is eager to deepen its partnership with different partners to ensure they remain

competitive in the market. since it is the biggest and oldest SI provider in the nation and already

serves enterprise clients in the public and private sectors. The digital economy appears to have a

bright future, and Software AG will help the Kingdom achieve its objectives by helping to

streamline and fully connect all of its institutions.

The key stakeholders include customers, government, shareholders, and employees that

work for the company. All the key stakeholders play a significant role in the affairs of the

company. For instance, the employees are responsible for the day-to-day running of the business
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and they ensure that SBM is able to achieve the objectives that it has set for itself. The

employees create goof relationships with other stakeholders since they are the face of the

organization. On the other hand, the shareholders of the company are the owners who expect the

organization to be managed efficiently so that they can be able to generate profits in the long-

term. The government is a key stakeholder because it formulates laws and regulations that will

be used to govern the affairs of the company with the consumers. The consumers should be

protected and this is the role of the government.

Internal analysis
An internal analysis is important because it helps an organization to know its strengths

and weaknesses, threats and opportunities hence devise a strategy that will help them to achieve

the desired goals and objectives. SBM has been at the forefront in formulating strategies that can

enhance service delivery while at the same time help them to generate profits in the long-term.

One of the ways that SBM has achieved this is through positioning and differentiation. The goal

of brand positioning is to set a company's products apart in the eyes of consumers. Through

branding, businesses can stand out from the competition and communicate the value they offer to

clients in a way that appeals to them.

It is pertinent to note that companies employ brand positioning as a tactic to get

customers to identify their brand with a particular interest. Every business needs a plan in place

to communicate to potential clients how fantastic their goods or services are. The process starts

internally within the company with the development of a brand positioning statement.

Subsequently, it shifts to the exterior by distributing complementary marketing campaigns. SBM

has achieved this by looking at the internal environment and the manner in which they have

appealed to the customers in the market.

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The strategic choices are important because they help the company to achieve its goals

and objectives. In this case, it is important for SBM to devise a strategy that will enhance growth

in the long-term. For instance, the business model adopted by SBM is critical because it outlines

its approach to generating revenue. It outlines the target market for the business, its products and

services, and its expected expenses. Sound business plans are essential for both new and existing

businesses. They support new businesses in attracting talent, raising capital, and motivating

employees (Mohammed, 2019). Revisions to business practices are necessary for established

companies to stay competitive in the face of evolving consumer preferences and technological

advancements. Prospective employees and investors may find interest in business models as they

offer insightful information about a company's future. A business model is a thorough plan for

making money in a particular sector of the economy. The value proposition plays a major role in

the company strategy.

The criteria for assessing the choices are based on the goals and the objectives that the

company wants to achieve and whether it aligns with what SBM wants. Time is a critical factor

that can be used to assess the choices that have been made. For instance, it is important to assess

whether the time taken for SBM to achieve its goals and objectives is feasible and achievable for

the company. The other criteria that can be used to assess the choices is cost. Cost is critical

because it will help to determine whether it is within the budgetary allocations for the company.

For instance, the company should assess whether the marketing plan is within the budget and

how they can achieve this goal.

Therefore, the selected strategic choice is one that will serve the needs of all the key

stakeholders within the organization. To achieve this, it is important to consider different aspects

such as the target market for the venture, a competitive analysis, marketing strategies, financial
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projections, anticipated start-up expenses, and funding sources in the strategy of choice. The plan

might also include joint ventures with other successful companies. This is because it would

increase the capital base and expand to new markets. Successful companies have created

business plans that enable them to meet consumer demands at market prices in order to stay

profitable and competitive over the long run. A lot of businesses frequently update their

fundamental business models in response to the fierce competition and constantly shifting nature

of the market (Joshi, 2013). Therefore, it is important for SBM to do the same if they want to

remain competitive in the market and achieve their goals and objectives.

The selected choice of serving the needs of the key stakeholders in the organization is

important since they all have a stake in how the organization is run. This choice is important

because it would enhance good relationships between the different stakeholders. For instance,

when the employees have good relationships, this would radiate to the outside world since they

would give their best in terms of offering quality services (Kidd, 2020). In the end, other key

stakeholders such as customers would benefit from quality services and the company would also

gain customer loyalty. Customer loyalty translate to increased sales and profitability to the

company.

Strategic implementation
Strategic implementation is important because it brings together key stakeholders who

can use their knowledge and skills to achieve growth for the company. The rate at which a

company can generate new information is a good measure of its knowledge management

capabilities. This is because it forms part of the strategic implementation that is needed for

growth within an organization. In the case of SBM, the main areas of expertise in knowledge

management are application, transformation, and acquisition of knowledge. The workforce's

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collective expertise represents the company's most valuable asset and a major source of

competitive advantage

(Mehrez et al, 2020). As a result, internal knowledge management procedures within this

organization would determine its ability to produce and apply new information. The goal of an

acquisition is to supplement current data with new, pertinent information gathered from external

sources. SBM would benefit from this arrangement since they would pool together a team of

experts who have the required knowledge and skills to achieve its objectives.

The organization structure is an important feature that can be used to achieve growth in

business. For SBM, the organization structure starts from the top and the chief executive officer

is in charge of this company. There are several departments such as marketing, finance,

operations, and sales. A head of department is given the responsibility of heading the various

departments. The organization also has line managers and supervisors who report to the head of

department. There are also subordinate staffs who are given the responsibility of managing and

implementing the vision of the organization.

To implement change management, the initial step would be collecting the views and

opinions of all the employees in the organization (Boujlil, 2023). This is important because

everyone will be given an opportunity to speak about the areas that they feel should be changed

and how this can be achieved. It would be difficult to change the organization without including

the employees since they are the ones who are in charge of the day-to-day running of activities.

Change management would be successful since the employees will feel like they are part of the

organization hence motivated to achieve the desired change.

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When it comes to the initiatives and programs, it is evident to note that Saudi Business

Machines' (SBM) capabilities are the intangible things it possesses; its assets are the tangible

things it owns. SBM's capabilities include its managerial, organizational, and analytical skills as

well as its ability to strategically use its resources to obtain a competitive edge. Another key

concept in resource-based theory is the idea of capabilities, which is what an organization can

accomplish because of its resources. It may be simpler to remember the distinction between

capabilities and resources if you think of the former as things an organization owns and the latter

as things it can accomplish (Alsunbul, 2024). A company's efforts to strengthen its strategic

assets frequently lead to the emergence or development of new capabilities.

Challenges
The implementation and preparation of the strategic plan was not smooth because it came

with its fair share of challenges. One of the challenges when preparing the strategic plan was

about the timelines that will be useful for our results. It was a challenge trying to understand the

time that it would take to achieve the desired results. Also, bringing together different players

was a challenge because it was not easy to ensure that the views generated align with the goals

and objectives that are to be achieved in the final strategic plan.

Additionally, the issue of time was a challenge when it came to the implementing of the

strategic plan. It was a challenge bringing together all the key stakeholders and ensuring that we

use the required time to implement the plan. Poor communication was also a challenge in the

implementation of the strategic plan. One of the most important and difficult aspects of the

strategic planning process is effective collaboration. Even so, it can be challenging to obtain all

the information you require, particularly as your company grows. Unavoidably, business

disruptions such as staff leaving or external changes can increase the difficulty of strategic
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planning and communication, particularly in the absence of digital collaboration or

whiteboarding tools. This was part of the reason why we experienced challenge in implementing

of the strategic plan.

Conclusion
In conclusion, IBM has chosen to collaborate with Saudi Business Machines as a local

partner to supply sales and support services in the nation. The company has been around for

decades, employs skilled workers, and caters to a wide spectrum of clients, from small

businesses to multinational corporations, depending on their size and type of business. It offers a

wide range of information technology services and is without a doubt the market leader in Saudi

Arabia for specialized hardware and software. The primary means of promotion for Saudi

Business Machines is the provision of excellent goods and services.

The business must work to enhance its reputation if it is serious about expanding its

clientele. By making sure the company website is always current and contains the same content

as the Facebook page, it is possible to prevent it from appearing outdated and abandoned.

Though the average user who is just now weighing his options will find it informative, large

businesses that have used SBM for a long time would not find this information particularly

helpful. The company is exploring the possibility of combining with smaller local companies that

offer comparable products or services in order to increase its market share.

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