Water Management System In Saudi Arabia Tourism Essay

Most of the Arabian Peninsula is occupied by Saudi Arabia with Gulf of Aqua and Rea Sea at the West and Iranian Gulf in the E. One of the noteworthy characteristics about Saudi Arabia is its uninterrupted desert which is reported to be largest desert in the universe ( 1 ) . With less than 2 % of the universe ‘s rainfall and 0.4 % of the universe ‘s recoverable H2O resources, H2O direction is the premier most factors that have to be considered for Saudi Arabia ( 2 ) . This study brings to illume on the desirableness and feasibleness of reassigning patterns of G & A ; M H2O and procedure engineerings to an acquired bing company in Saudi Arabia.

G & A ; M H2O procedure engineerings is a transnational corporation with primary operations on H2O supply and direction since 1956. It is one of the top 10 H2O direction company in France, ranked eightieth among Fortune ‘s Global 100 list. Added to this, this company has captured 20 per centum of the bing H2O market portion. G & A ; M operates in about 95 states and its one-year gross is over 40 billion dollar.

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On spread outing an organisation, particularly abroad, the top degree direction has to make up one’s mind on the feasibleness and desirableness of reassigning the organisation patterns to the acquired bing company. Along with this, the direction has to border schemes on the development of patterns get bying with the bing system in the host state. As mentioned earlier, Saudi Arabia has 0.4 % of the overall H2O resources in the universe. So the direction has to make up one’s mind on the cross civilization selling schemes. Hence, it is necessary to understand the H2O supply and direction system in Saudi Arabia for the company to accommodate itself in the host state.

Water supply and direction in Saudi Arabia:

Water supply and direction in Saudi Arabia differ from other states based on three facets which are as follows:

Water handiness is based on the H2O desalinization and fossil H2O.

Due to the equal oil wealth in the state, H2O is provided about free of cost.

Institutions in charge of policy and ordinance and establishments in charge of supplying services are non separated.

The authorities of Saudi Arabia has set a National Water Company ( NWC ) to pay a particular attending on the supply of H2O resource and its direction. The company provides H2O and procedure waste H2O following the latest international criterions with trained and qualified Saudi employees ( 3 ) . Inspite of this, the topographic point where the imbibing H2O system has non been connected, the H2O system has to depend on the expensive H2O provided by private trucks. The overall failing in the populace sector and deficiency of institutional administration is added issue on the H2O direction system in Saudi Arabia.

Policy and ordinance to be considered

The H2O and direction services are monitored by the Ministry of Water and Electricity ( MOWE ) since 2003. After which, no separate regulative bureau has been formed for this sector boulder clay now in Saudi Arabia. Electricity and Co-generation Regulatory Authority ( ECRA ) was late established to modulate the private desalinization workss. Added to this, Saudi Arabia does non hold any Ministry of Environment. From 2008, NWC was established to modulate the H2O services in Saudi Arabia over a three-year period under MOWE ( 4 ) . Saline Water Conversion Corporation ( SWCC ) has taken in charge for runing 30 desalinization workss governed by the authorities and operates a pumping web and reservoirs covering 3,700 kilometer of pipes to present H2O from the workss to the ingestion centres. Bing a authorities sectors, the H2O of SWCC provides free H2O to the subdivisions of MOWE.

The private sectors in Saudi Arabia are largely confined to building of substructure and technology surveies. Recently the transportation of more duty such as rehabilitation, operation, care and upgradation of the waste H2O system are given to the private sectors. Apart from this, the authorities has started to ask for citations for the building of desalinization works ( 5 ) .

Mode of entry:

Water and waste H2O direction services are governed by the populace sector and partially owned by private sectors for rehabilitation, operation, care and upgradation of the waste H2O system as mentioned earlier. Few of the H2O direction companies in Saudi Arabia are runing about 50,000 gallons of outflowing per month ( 6 ) . For G & A ; M H2O engineerings to come in into Saudi Arabia, it can either take incharge of operating desalinated wastrel and supply direction of the same or affect in the rehabilitation and upgradation of the waste H2O system for certain metropoliss. Whatever the manner of operation might be, the H2O processed should run into the latest international criterions and run into the client and authorities demands. Due to the deficiency of H2O resources in Saudi Arabia, the authorities has set a duty from US $ 0.06 to US $ 0.10/m3. However most of the clients come under the first two classs of duties where there is no charge for utilizing minimum sum of H2O per month. At the other manus, H2O supplied through H2O oiler costs upto 6 Saudi arabian riyals which cost more than the H2O supplied by through the web. This is to the part where the piping web for supply of H2O is non established. There are several H2O treating companied in Saudi which is involved in such transit of H2O to remote topographic points. G & A ; M H2O procedure engineerings may affect in such activities along with the rehabilitation and desalinization works provided it clears all the norms set by the Saudi Arabian authorities.

Environmental analysis for the transferring of patterns:

SWOT analysis:

SWOT analysis has been done to measure the strength, failing, chances and dainties involved reassigning patterns by G & A ; M H2O procedure engineerings to Saudi Arabia.

Strengths:

Diverseness

Presence of trained employees

Share of regulated operations

Financial profile of the organisation

Need to H2O intervention workss

Population growing and hence increased H2O demand

Need for transit of H2O since most of the topographic points in Saudi Arabia are non connected with the piping web for H2O supply

Government ‘s policies to set up H2O direction system

Handiness of bing company for G & A ; M H2O procedure engineerings to reassign its patterns

Failing:

Lack of H2O resources

Problems in equilibrating supply and demand

Low H2O duty rates declared by the Saudi Arabian authorities

Opportunities:

Addition in demand of H2O by the populace every bit good as in industries

Improved investing as the barriers to merchandise and tariffs rates have been decreased

Government ask foring big figure of undertaking to improvize the H2O direction system

Menaces:

20 % of distributed H2O is unaccounted

High security hazard

Global economic business district may decelerate the rate of development of the company when established.

For the grind analysis it is inferred that the strength for the company to set up itself in the host company is high so the possible menaces. The authorities policy and ordinance is non much confined on the abroad constitution in the state. Hence there is more desirableness and feasibleness for the company to set up and reassign its patterns to the acquired company. Added to this, the host company is located in Dammam which is surrounded metropoliss which are non provided by H2O supply web. Inspite of greater security hazard to set up the organisation, the organisation will hold a less attempt in constitution due to the policies of the land. However it should be noted that 20 % of the distributed H2O is ever unaccounted. Added to this the company in due class can put up an belowground H2O tabular array. However the jobs of salination have to be eliminated. The company can besides take portion in the geting new undertaking from the authorities as such to set up or rehabilitate the H2O system for a metropolis in and around Dammam.

The deficiency of H2O resource is another standard to be considered before reassigning the patterns. Added to this, there is a really low duty for the ingestion of H2O under certain degree and most of the population were found to utilize to H2O within that bound. So on reassigning the patterns, there will ever be the job or either deficiency of H2O supply or pipe explosion which have to be attended on clip. The authorities provides a monitory web nevertheless it is better if the company owns its ain monitory system. Out of all signifier this analysis it can be inferred that there is a greater feasibleness and desirableness to reassign practiced to the host company in Saudi Arabia through SWOT analysis.

Plague analysis

PEST ( Political, economical, societal and technological factors ) analysis was performed to analyse the macro-environmental factors associated with the strategic development of the company in Saudi Arabia.

Political factors:

The H2O sector regulative government is being streamlined by the Saudi Arabian authorities

Low H2O duties set by the Saudi Arabian authorities

Economic factors:

Saudi Arabia is the 3rd largest consumer of H2O in the universe

Saudi Arabia is the largest manufacturer of desalinated H2O

Government determination in increasing the investing for H2O intervention procedure

Denationalization and liberalisation of Saudi economic system

Social factors:

20 % of the H2O distributed is unaccounted

Saudi Arabia ranks 5th topographic point in the foreign direct investings

Deterioration of H2O sectors

The fund allotted for undertakings is depended on the gross of oil and oil market

Technological factors:

Extensive H2O transmittal system

Similar to SWOT analysis, PEST analysis besides pave manner for greater feasibleness and desirableness of the organisation in the host state. The company is allowed to utilize its ain methodological analysis to desalt the H2O. Simultaneously the plus direction system can besides be set by the company if it desires to make so. The societal and economic factors show greater opportunities for the development of the organisation in Saudi Arabia. Hence, it can be concluded that both the analysis, SWOT and PEST analysis, are in favour of reassigning patterns to the bing company in Saudi Arabia with limited menaces for the company ‘s feasibleness.

Cross-cultural direction pattern

G & A ; M H2O procedure engineerings have to actively affect in covering most of the metropoliss in provided H2O services. The company have to be chiefly involved in desing, develop and execution of domestic H2O and waste H2O direction web undertakings. In order to accomplish this, there is a demand of solid construction taking to successful operation and supply of H2O and direction of waste H2O. The company which was acquired inorder to reassign the pattern is located in Dammam, capital of east state of Saudi Arabia. Dammam is on the coastal strip of the Arabian Gulf and the northern, eastern and southern parts are bordered by the Gulf. The adjacent metropoliss include Khobar, Al-Dhahran and Qatif. With a population of 600,000 in Dammam, the current company is involved in providing H2O to 45 % of the population every bit good as rehabilitating the bing H2O direction system. Added to this, the environment metropoliss are besides supplied with H2O through oilers particularly to Qatif which hold agricultural lands.

There exists jobs of burst pipes and interrupted H2O supply forms the clients. It should be noted that it is non a easy occupation to turn up the explosion pipe or the job for H2O break. Hence the company has to develop a suited engineering to run into the clients demands on clip. The bing information on the silos of information is non precise. So it is necessary to estabilish a new information system by G & A ; M H2O procedure engineerings to implement on the reported job with a suited waiter and adaptable package with minimum mistakes. The informations theoretical account should stand for all the H2O elements including house connexions, pipes, Wellss and adjustments. This will pave an easy manner to pull off the belowground assets. An expertness plus direction system has to be framed by the executives to regulate the above issues.

After constitution of H2O system and desalinization workss, the company have to put a client call centre. So when there is a response on a failure of the H2O system in a vicinity or a abode, the ailment from the client have to be reported to the plus direction system. The plus direction system with their resources will follow the possible mistake through their waiter and rectify the ailment. At the same clip a standard operating process have to be set to back up the call centre system. The response to the event can be good analysed through this system and if required will intensify a higher response. Through this the clients can automatically enter their ailments along with the location. This makes a manner to analyze the impact of the defect in the environing country as all the ailments from a individual location is saved. This will do a manner to border future schemes by the organisation to extinguish similar jobs in the hereafter.

Rationale:

The demand for increased H2O supply and direction systems in Saudi Arabia has significantly increased the market portions of the H2O system companies. The company already has a taking market portion due to the H2O supply direction works in Indonesia, France and England.

Profitableness:

G & A ; M H2O procedure engineerings continue to strongly execute from 2006 after growing of 12.6 % in 2004. To farther increase the growing and set up the organisation, the determination to reassign pattern through cross civilization selling is promoting. The company in the host state should be immune to the ambitious economic conditions in the market. However it should be noted that the company is partly protected by the important portions of regulated earning.

Capital construction development

Since the G & A ; M H2O procedure engineerings ‘ fiscal profile is solid, the company is more executable to set up in Saudi Arabia with the pro forma financess from operation coverage.

Mentality

The deficiency of better service in Saudi Arabia could perchance increase the evaluation of G & A ; M H2O procedure engineerings if the company maintains the authorities norms and satisfies the client. With the significant capital outgo and stockholder returns, the company carried merely limited menace in its constitution in the host state.

Scheme:

A figure of private H2O intervention workss in Saudi Arabia have cut their capital outgos ; the company has acquired powers in front for growing investing. Even so, the growing after constitutions should be basically organic and some acquisition should non be ruled out. There should be a heavy capital outgo plan with an effectual cost cutting plan finally taking to bring forth at least 1 billion dollars in the following two yeas. This will rests on trade goods and power monetary value which are in line with the current degrees. Due to the economic business district, the direction has to good put the counsel. Crisp fluctuations in trade goods should non impact the work system of the company.

International Experience:

G & A ; M H2O procedure engineerings is the largest transnational company stand foring 45 % of the divisional earning in France in the twelvemonth 2008. In many topographic points, its incorporate H2O supply system made it dominant in coevals of new citations and organisation ‘s development. The H2O direction company is frequently limited by growing chances. Through the engineering they adapt the company has grown significantly.

Infrastructure:

The substructure division should basically covers the company ‘s regulated operations for illustration, the support for the earning stableness of H2O procedure and supply systems. The division should besides hold some unregulated operations such as waste merchandises processing and storage of H2O.

Fiscal hazards:

The fiscal profile of G & A ; M H2O procedure engineerings is still solid after important investings and extended portion holders return. Hence the fiscal hazard after the constitution of the H2O works and rehabilitation system is negligible.

Fiscal policies:

Besinds substancial capital disbursement, there should a balance in paid portions and portion holder returns. Besides due to fiscal stableness, the company could be a important beginning of fiscal stableness.

Cash flow adequateness:

The hard currency flow should be boosted by the expected important addition in operational earning. This can be made possible by the combined work of all the employees of the organisation.

Decision:

It can be concluded that the selling characteristics are more executable and desirable for reassigning the patterns in Saudi Arabia. For the grind analysis it is inferred that the strength for the company to set up itself in the host company is high so the possible menaces. The authorities policy and ordinance is non much confined on the abroad constitution in the state. Hence there is more desirableness and feasibleness for the company to set up and reassign its patterns to the acquired company. Added to this, the host company is located in Dammam which is surrounded metropoliss which are non provided by H2O supply web. Inspite of greater security hazard to set up the organisation, the organisation will hold a less attempt in constitution due to the policies of the land. However it should be noted that 20 % of the distributed H2O is ever unaccounted. Added to this the company in due class can put up an belowground H2O tabular array. However the jobs of salination have to be eliminated. The company can besides take portion in the geting new undertaking from the authorities as such to set up or rehabilitate the H2O system for a metropolis in and around Dammam.

The deficiency of H2O resource is another standard to be considered before reassigning the patterns. Added to this, there is a really low duty for the ingestion of H2O under certain degree and most of the population were found to utilize to H2O within that bound. So on reassigning the patterns, there will ever be the job or either deficiency of H2O supply or pipe explosion which have to be attended on clip. The authorities provides a monitory web nevertheless it is better if the company owns its ain monitory system. Out of all signifier this analysis it can be inferred that there is a greater feasibleness and desirableness to reassign practiced to the host company in Saudi Arabia through SWOT analysis.

Similar to SWOT analysis, PEST analysis besides pave manner for greater feasibleness and desirableness of the organisation in the host state. The company is allowed to utilize its ain methodological analysis to desalt the H2O. Simultaneously the plus direction system can besides be set by the company if it desires to make so. The societal and economic factors show greater opportunities for the development of the organisation in Saudi Arabia. Hence, it can be concluded that both the analysis, SWOT and PEST analysis, are in favour of reassigning patterns to the bing company in Saudi Arabia with limited menaces for the company ‘s feasibleness.