“We have a clear vision of success through
a balanced approach towards our corporate culture,
a set of enhancing support activities and good intentions“. (The Savola Group, 2009)
Introduction
E-business activities provide new opportunities for medium and small enterprises in their attempts to bring economic prosperity to the world through their enormous potential. E-business sphere forms new standards for systems emergence ensuring public confidence and establishing new e-commerce networks stimulating international cooperation. (Schneider, 2008) One of the most important steps in successful business running is to develop appropriate strategies and steps to follow; e-business can widen the company opportunities and become the beneficial method of cooperation with the partners. (Turban & King, 2000)
The Savola Group is referred to the leading Saudi Arabia’s industrial companies being well known on the international level through its cooperation with African and Asian regions. E-business activities of this company are on the developing stage being considered additional field of its business operations.
The Savola Group Overview
The company was established in 1979 as the first leader in oil industry; its initial capital was about SR 40 million and it subsequently grew up to several billion. The company is one of the most well developing and successful business leaders among multinational food groups being specialized in such businesses as packaging, sugar, franchising, edible oils and real estate.
It is important to underline the fact that the company has about 80 retail outlets in Saudi Arabia and one supermarket in Dubai, UAE. The Savola Group provides about 68% of sugar and 62% of edible oils for the Kingdom. Besides, the company is considered to be a pioneer in the spheres of CSR, Corporate Social Responsibility, Values and Ethics.
The company business operations are preserved in the way to encourage its employees behaving in the ethical manner and considering the stakeholders’ interests in company activities development; the company opportunities in the sphere of e-business operations can become the strong background market enlargement with its products and services.
The Savola Group and E-Business activities Development
The development of e-business activities is an integral part of future strategic plans of the company. It should be noted that the Savola Group performs its business operations through the functioning of four principle sectors:
- Foods Sector (sugar, foods and edible oil);
- Real estate sector;
- Plastics Sector;
- Retail Sector.
The business running of the Savola Group is basically concentrated around balanced cooperation of its key sectors combined with Franchising Unit activities; besides, the company has more than 160000 shareholders and 16000 employees. The Savola Group is referred to the list of 20 top companies according to its business growing and products promotion.
The sphere of e-business activities is not properly developed though it is an integral part of strategic operations. The principle goal of the Savola group in e-business practice is aimed at value creation in order to reach privileged relationships with new clients and partners. The strategy of e-business activities development will be fulfilled through the company positioning on new trading fields of market and increase of customer loyalty. The practice of e-business will contribute to the new clients’ prospects and profits increase.
Current company practices in e-business are fulfilled through the following business divisions websites:
- Afia International Website;
- Savola Packaging System;
- Azizia Panda United;
- The Franchising Division.
Besides, there are two web sites of non-managed companies, such as Al-Marai Company and Herfy Food Services. It should be noted that company business activities are merely focused on the principles of ethical values.
Developing business strategy will be focused on the promotion of the Savola Group products on the international market through e-business operations. The basic steps for strategy fulfillment are based on the following stages:
The target group definition
The first part of the strategic plan development is based upon the identification of the target company group in order to determine their web activities. It is important to concentrate on the suppliers’ experience and take advantage of their interests in order to select appropriate approach and alternative in e-business specifications description. The successful identification of the target group may become the background of profitable business running; the company is to develop strategies in accordance with potential customers’ interests and demands through the necessary supply prsentation. (Winn, & Mann, 2002)
Specification
The Savola Group is to determine the principle goal of the strategy and describe it in the new application. It should be noted that e-business approaches are to be clarified in the way to be completely understandable for the potential customers, colleagues and company suppliers. The distinct description of the strategy goal can help in avoiding grave mistakes; business steps are to be made in accordance with developed plan in order not to miss any minor stages. (Turban & King, 2000)
The system maintenance
One of the most important aspects is closely connected with the system maintenance which should be constantly updated and well organized. The company is to focus on appropriate system analysis for effective data organization on web pages. This aspect will influence the affection of a-business operations on customers’ products and services perception.
Functionality
E-business activity is to be formed on the basis of its functionality allowing understanding the real aims of the strategic plan and its chances for success. Sometimes it is necessary to take into account technical solutions though in such cases some options can be missed.
Responsibilities division
It is necessary to identify the roles of activities fulfillment taking into account professionalism and skillfulness of specialists. The strategy should cover the creation of flow charts which are to reflect the duties; otherwise the company can suffer unexpected delays and friction.
Time
Each step of strategy activities should be clearly identified through well planned time periods; one should create special schedules with the reflection of activities and expected time points of their fulfillment. (Successful E-Business Activity Requires a lot of Effort, 2007) Clearly identified time periods for steps fulfillment will allow following developed campaign in the most appropriate way.
Appropriate strategy analysis and steps fulfillment will lead to rapid changes in e-business operations of the Savola Group. The suppliers of the international brands and determination of potential customers will enlarge the opportunities of company operations.
Taking into account the fact that the Savola Group specializes in food products promotions in Saudi Arabia, the area of its cooperation is to be considerably widened through e-access to consumers of the world market. Active cooperation with international companies through e-commerce operations will give an opportunity to increased sails profits and attract more investor into business cooperation. The Savola Group is interested in building new hypermarkets and supermarkets in the developing countries which can be reached through the initial stages of retail trade by means of e-business activities development. (The Savola Group, 2009)
Conclusion
The analysis of e-business role for the company stabilization and widening of its activities has shown that further steps of the Savola Group business running is to be focused on the determination and development of e-business activities. Initial stages in this sphere have already been made by the group; the creation of the number of web sites shows company’s cooperation with the number of partners. It is important to stress that stabilization of e-business cooperation can give an opportunity to promote brands of partners by means of Savola Group proposals; this step will fix the company position on the market and widen its chances as a growing corporation. (Bidgoli, 2002)
Nevertheless, the principle point in further company development should be focused on the international trade stabilization and involvement of greater number of customers, investors and business partners. Changes reached through e-business running will positively influence the position of the company as a business giant not only in Saudi Arabia but on the international level.
References
Bidgoli, H. (2002). Electronic Commerce: Principles and Practice. Academic Press, 487 pp.
Schneider, G. (2008) Electronic Commerce. 8th Edition. Course Technology.
Successful E-Business Activity Requires a lot of Effort. (2007). E-Market Services. Web.
The Savola Group. (2009). Web.
Turban, E. & King, D. (2000). Electronic Commerce: A Managerial Perspective. Prentice Hall.
Winn, J. & Mann, R. (2002). Electronic Commerce. Aspen Law & Business. 670 pp.