Saudi Arabia is a large country that fights with corruption, tries to improve education to prepare efficient professionals and provides enough working places for them, promotes housing construction and development of the private sector. Positive tendencies in the economic sphere provide more and more opportunities for such changes but today the situation is rather adverse. The economy of this country depends on the oil industry, so a recent decline in oil prices turned out to be a great problem.
To deal with it, businesses need to alter their organizational behavior successfully. Thus, the research will be focused on the changes made under the influence of a decline in oil prices. The selected topic is critical because Saudi Arabia is the main exporter of oil, which means that it is powerful enough to affect oil prices globally and alter the economic situation in the countries, it cooperates with.
I will refer to the article written by Mathew (2015), as it emphasizes the way oil price affects exports and fiscal revenues and the Saudi Arabian economy it totals. Townsend’s (2015) work investigates the influences of oil prices on global oil markets and the country’s reluctance to implement the production-cutting strategy. Hodgson (2015) believes that businesses tend to pay more attention to non-oil sectors while the development of mergers and acquisitions is discussed in the review of the CXFS conference (CXFS conference, 2015).
To plan research, a research question is designed: What is the effects of the declined oil prices on organizational behavior in Saudi Arabia? Answering it presupposes finding the information that deals with:
- Development of Saudi Arabia before the decline in prices and after it;
- Causes of oil price decline;
- Issues faced by the country and their influences on the global economy;
- Challenges faced by businesses and attempts to overcome them (alterations in the organizational behavior);
- The future of the country.
To address the topic selected for the research, low export and fiscal revenues, as well as shifts in economic and social priorities, should be discussed. Using the information received during the preliminary research, a thesis statement is developed based on the research question: because of the oil price decline, businesses in Saudi Arabia are forced to change their organizational behavior and look for new sources of revenue, to cut costs, make urgent and risky decisions related to the creation and operation of mergers and acquisitions.
Qualitative research will be focused on the literature review. To make the paper decently organized and well-grounded, a preliminary literature review will be conducted. The paper will be based on primary and secondary sources that mainly include organizational reports, news articles, and textbooks. They will be selected taking into consideration the date of publishing and relevance to the topic. Received information will be thoroughly analyzed, and the conclusion will be made to show how organizations respond to the reduction in oil prices.
The research will be significant and useful for students and professionals who work in the sphere of management and economics. It will not only describe financial issues faced by Saudi Arabia but also underline the ways organizations address them. This information can be beneficial for defining best practices and developing strategic plans that can be used by various businesses in similar situations. Even though this research is targeted at a particular country, its findings can be used to improve the performance of foreign organizations.
References
CXFS conference tackles customer dissatisfaction among financial industry leaders. (2015). Web.
Hodgson, A. (2015). How does the sharp decline in oil prices impact oil exporters? Web.
Mathew, J. (2015). IMF: Oil price decline has limited effect on Saudi Arabian economy. Web.
Townsend, M. (2015). The oil price, Iran and Saudi’s economy. Web.