Lo3

Almarai Company

:What is meant by corporate governance

Corporate governance means the rules by which the company is led and
directed, and includes: Mechanisms for regulating the various relations
between the board of directors, the interests of chief executives,
shareholders and owners, through the development of special
procedures to facilitate the decision-making process and to impart a
character of transparency and credibility in order to protect the rights of
shareholders and achieve justice, competition and transparency in the
.market and business environment

:Organizational Governance
:The positives
Almarai company wanted to move outside the country from Jordan to
Egypt, there are a set of laws that the company must implement before
its exit, such as equal number of employees’ employment, which means
in short the employment of Jordanian citizens with a number equal to
the number of employees who do not hold Jordanian citizenship, so that
this The system helps the company in its development and success, as it
filled jobs and employed many young Jordanians and others with higher
education in the company and benefited from their experience and the
contribution of the competitive pressures of globalization to raising the
.level of government performance and protecting workers

:The negatives
In Almarai Company, there has been inequality between the responsible
persons who implement and supervise the internal affairs of the
company and the persons who share, as the implementers are the ones
who make the bulk of its policies, and in terms of shareholders, this may
become a public problem and in the absence of a controlling
shareholder, The majority of shareholders vote by proxy, the company’s
assets are managed by the board of directors and the officials, and the
distinction between ownership and management will lead to a conflict of
interest between the management’s commitment to maximizing
shareholder value, increasing its revenues, maximizing them and
.distinguishing them from others

:Leadership
:The Positives
It is a idea primarily based totally on figuring out a leader's fashion or
conduct that fine fits the worker and paintings surroundings with the
intention to acquire the purpose of growing the motivation,
empowerment and pride of your personnel so they come to be effective
individuals of the organization. One of the blessings of changing leaders
withinside the organisation is to elevate the morale of the personnel
with the aid of using understanding what can advantage the personnel
or what they may be searching for, and this results in elevating the
.performance of the organization’s paintings
:The negatives
In phrases of leadership, Almarai agency need to extrade the managers
or leaders who run the organization because of the alternate of cultures
.from one us of a to every other and combining with overseas countries

:The impact of globalization on Almarai company

Globalization has affected Almarai Company very significantly in terms of
increasing the size of the company because it leads to an increase in
mergers and acquisitions across borders, which is also one of the main
factors affecting the increase in foreign investment rates. It has also
provided the company with a competitive advantage by allowing this
company to obtain raw materials inexpensively. Globalization also
provides organizations with the opportunity to take advantage of lower
labor costs in developing countries, while benefiting from the technical
.expertise and experience of more advanced economies
Consumers also benefit, as globalization has affected the company in
terms of reducing the cost of manufacturing, and this means that the
company can provide goods at a lower price to consumers as the
average cost of goods is a major aspect that contributes to raising the
standard of living, and consumers can also access a variety of goods .
Globalization increases the volume of international trade and leads to
the diversification of products and services, and the improvement of
.their quality, with lower costs and thus prices

:Advantages of globalization, the economic side

Achieving greater benefit for producers and consumers as a result of the
.division of labor and the expansion of markets
Raising the level of individuals' income, especially in countries that can
.expand economically faster
Freedom of movement of the workforce between different countries,
.which helps in the exchange of ideas and skills
Contribute to closing the economic deficit of some countries; By
.allowing it to borrow money from the capital markets
Increasing consumer awareness of the challenges arising from some
.global issues such as: climate change and wage inequality
The contribution of the competitive pressures of globalization to raising
.the level of government performance and protecting workers
An abundance of more goods at lower prices; Globalization encourages
countries to focus on their field of industry, thus raising the quality of
their products by using the least available resources, which contributes
to economic growth, reducing the cost of goods and services and making
.them affordable, especially for people with limited income
Expand the scope of business; As major markets provide the
opportunity for companies to reach a larger segment of customers, and
.thus increase revenue

:The political side

globalization has promoted the spread of democracy and increased
awareness of human rights. Despite the huge technological gaps,
globalization has played an important role in democratizing the media,
through social networks, which encouraged the promotion of political
openness, the elimination of corruption, and bad Use of power, improve
.political representation

: The social and cultural aspect of globalization

has enhanced societal justice on an international scale, in addition to its
contribution to focusing the world’s attention on the issue of human
rights, As for the cultural level, globalization has had a great contribution
to the development of knowledge and cultural networks of
communication, as well as to the development of lifestyles, and
consumer behaviors of individuals, and cultural globalization has a
positive impact on media coverage; This is to direct the peoples'
attention towards the tragedy of individuals in light of the huge
.population increase
Globalization has contributed to the liberation of the media globally;
Thus, it became more objective and away from fanaticism and bias, and
strengthened the spirit of belonging to the surrounding community, and
encouraged the development and exchange of arts, and contributed to
increasing the awareness of individuals about the nature of consumer
goods and the conditions for their production, as well as making
intercultural dialogue a basic need to achieve international solidarity,in
addition to In addition, globalization has contributed to the
dissemination of technology and innovation, by encouraging continuous
communication between countries, which means a faster exchange of
.technological developments and knowledge between them

:Disadvantages of globalization
exploitation of expatriate workers; Where the intense competition
between companies pushes to provide low-cost goods to win the largest
number of customers at the expense of finding expatriate labor at lower
.costs and exploiting their energies
Difficulties in expanding companies globally; This requires large capital,
in addition to high flexibility, and the ability to keep pace with the
.changing labor laws specific to each country
The risk of losing local jobs due to the preference of some companies
for expatriate workers or their transfer of their field of work outside the
state. Concentration of power and wealth in the hands of a specific class
of large companies, which in turn eliminated their competitors from
.smaller companies around the world
The negative impact on the environment; Where globalization has led to
an increase in dependence on non-renewable energy sources, which has
led to high levels of pollution, and global warming, as companies are
looking for countries where environmental laws are less stringent; To be
.able to expand its production without strict supervision
:Part two

Mckinsey 7s Framework Of Almarai Company Milk and

Modernization in the Kingdom of Saudi Arabia
 Soft Elements Hard Elements

Shared Values

Skills Strategy

Style Structure

Staff Systems

Almarai Company Milk and Modernization in the Kingdom of

Saudi Arabia makes use of the McKinsey 7s model to regularly
enhance its performance, and implement successful change
management processes. Almarai Company Milk and
Modernization in the Kingdom of Saudi Arabia focuses on the
7 elements identified in the model to ensure that its
performance levels are consistently maintained, and
.improved for the offerings

)) Hard elements ((

1) Strategy:

:Clearly defined

The strategic course and the general enterprise approach for Almarai
Company Milk and Modernization withinside the Kingdom of Saudi
Arabia are sincerely described and communicated to all of the personnel
and stakeholders. This allows the employer control performance,
manual moves, and devise unique strategies which can be aligned with
the enterprise approach. Moreover, the enterprise approach’s definition
and communique additionally make operations for Almarai Company
Milk and Modernization withinside the Kingdom of Saudi Arabia extra
.obvious and aligns the duties and movements of the company

Guiding behaviour for goal attainment: The strategic route for

Almarai Company Milk and Modernization withinside the Kingdom of
Saudi Arabia is likewise crucial in assisting the enterprise manual
employee, staff, and stakeholder behaviour in the direction of the
attainment and fulfillment of dreams. SMART Goals are set with quick
and long time cut-off dates according with the enterprise approach. The
commercial enterprise approach enables personnel determine strategies
and behaviours for achieving the set dreams and objectives to assist the
.enterprise grow

Competitive pressures: Almarai Company Milk and Modernization

withinside the Kingdom of Saudi Arabia’s approach additionally takes
into attention the aggressive pressures and sports of competitors. The
method addresses those aggressive pressures thru suggestive measures
and movements to cope with opposition thru strategic techniques and
sports that make certain sustainability to Almarai Company Milk and
Modernization withinside the Kingdom of Saudi Arabia through adapting
to marketplace changes, and evolving customer tendencies and
.demands

Changing consumer demands: An important aspect of the strategy

at Almarai Company Milk and Modernization in the Kingdom of Saudi
Arabia is that it takes into constant consideration the changing
consumer trends and demands, as well as the evolving consumer market
patterns and consumption behavior. This is an important part of the
strategic direction at Almarai Company Milk and Modernization in the
Kingdom of Saudi Arabia as it allows the company to remain competitive
and relevant to its target consumer groups, as well as allows the
.company to identify demand gaps in the consumer market

The company then strategically addresses these gaps through product

offerings and marketing activities which give the company successful and
.leading-edge over other patterns in the market

Positive: Implementation of a brand new structural method in

alignment with a brand new approach (geographically)
Almarai Company has modified the control approach with the
intention to hold tempo with the cultural extrade in Jordanian
.societies

Negative: Dual functions - can experience remoted from

.different organizational areas
: Structure )2

Organizational hierarchy: Almarai Company Milk and Modernization

withinside the Kingdom of Saudi Arabia has a flatter organizational
hierarchy this is supported via way of means of gaining knowledge of
and innovative organizations. With lesser managerial ranges in among
and extra get right of entry to to the senior control and leadership, the
personnel sense extra steady and assured and still have better get right
of entry to to information. Moreover, the flatter hierarchy additionally
lets in faster decision-making approaches for Almarai Company Milk and
Modernization withinside the Kingdom of Saudi Arabia and will increase
.organizational dedication withinside the personnl

Inter-Departmental coordination: Almarai Company Milk and

Modernization in the Kingdom of Saudi Arabia has high coordination
between different departments. The company’s departments often form
inter-department teams for projects and tasks that require multiple
expertise. All coordination between different departments is effective
and organized. Almarai Company Milk and Modernization in the
Kingdom of Saudi Arabia has a systematic process for initiating and
monitoring coordination between departments to ensure smooth work
.operations and processes – and goal attainment
Internal team dynamics [department specific]: Almarai Company
Milk and Modernization withinside the Kingdom of Saudi Arabia
encourages teamwork and crew-orientated tasks. Where jobs require
person interest and scope, the organization additionally assigns man or
woman duties and task tasks. However, all personnel at Almarai
Company Milk and Modernization withinside the Kingdom of Saudi
Arabia are predicted to be group gamers who can paintings nicely with
and thru different members, and who get alongside nicely with different
people. The groups at Almarai Company Milk and Modernization
withinside the Kingdom of Saudi Arabia are supportive of all embers and
paintings in synch with synergy toward attaining the wider group goals
and dreams beneathneath the Almarai Company Milk and
Modernization withinside the Kingdom of Saudi Arabia designed method
.and valuesi

Structure Almarai desired to increase geographically to seize

.the market

Positive: What Almarai Company did first, enlarge its scope of

labor and collect large markets, and secondly, boom the
employer's profits. Among the dangers that the organization
confronted throughout the growth technique have been a
number of the authorities regulations consisting of taxes and
.customs, in addition to the approach of corruption

:Systems )3

:Organizational systems in place

Almarai Company Milk and Modernization withinside the Kingdom of

Saudi Arabia has described and well-demarcated structures in region to
make sure that the enterprise operations are controlled successfully and
that there aren't anyt any conflicts or disputes. The structures at Almarai
Company Milk and Modernization withinside the Kingdom of Saudi
Arabia are in large part departmental in nature, and include, for
:example

Human resource management -

Finance -

Marketing -

Operations -

Sales -

Supply chain management -

Public Relation Management -

Strategic leadership -

:Defined controls for systems

Each of the described and demarcated structures at Almarai Company

Milk and Modernization withinside the Kingdom of Saudi Arabia has in
particular designed equipment and techniques as controls for comparing
overall performance and aim attainment. These controls and measures
are designed specially in exclusive departments primarily based totally
on the character in their responsibilities and responsibilities. Moreover,
every branch additionally designs particular controls for participants for
overall performance evaluation, in addition to for inter-departmental
.responsibilities and responsibilities

:Monitoring and evaluating controls

Almarai Company Milk and Modernization withinside the Kingdom of

Saudi Arabia usually evaluates its structures thru the designed controls.
This tracking of the overall performance is persistent and ongoing. This is
basically achieved thru remark and casual discussions. Feedback to
personnel and general branch heads is informally given frequently as
and while is required. Formal assessment of overall performance is
likewise carried out semiannually – or quarterly, relying at the want and
the urgency of the tasks and assigned tasks. This is a proper method this
is undertaken with the aid of using supervisors and bosses to make sure
the identity of overall performance lags, and suggestive way of
.improvement

:Internal processes for organizational alignment

Almarai Company Milk and Modernization in the Kingdom of Saudi  

Arabia also has special processes and methods for ensuring that all
departments and systems within the organization are aligned and
working in harmony towards the greater business goals and targets. This
is made possible through ensuring that all systems are designing and
working towards goals and targets specific to their expertise under the
broader business vision and strategy. Moreover, the strategic leadership
at Almarai Company Milk and Modernization in the Kingdom of Saudi
Arabia also ensures that all systems are allocated with resources, and set
 .specific targets to achieve similar business goals in any specific period

Almarai Company has modified the paintings device in the

agency as a way to preserve tempo with the paintings
regulations inside corporations in Jordan to attain the
pleasant paintings gadget that maintains tempo with the
Jordanian device, in order that Almarai Company has modified
.operating hours

Positives: Technological improvement Keeping abreast of

tendencies withinside the rules observed withinside the
united states and warding off any capacity dangers due to
.non-implementation of those rules
Negative : Some of the primary rules observed withinside the
.employer's commercial enterprise device are left out

))Soft elements((

:Shared values )4

It is a set of cultures agreed upon between the members of

.the company and everyone works for it

:Corporate culture

Almarai Company Milk and Modernization withinside the Kingdom of

Saudi Arabia encourages an inclusive tradition that celebrates diversity.
The employer has an worldwide presence, and manufacturing gadgets
which might be unfold throughout distinctive countries, as such, Almarai
Company Milk and Modernization withinside the Kingdom of Saudi
Arabia make sure that its organizational lifestyle is supportive of
.diversity, and has inner rules to lessen incidences of discrimination

The company lifestyle at Almarai Company Milk and Modernization

withinside the Kingdom of Saudi Arabia additionally encourages
innovation and creativity with the aid of using permitting independence
for increase to people and teams –therefore supporting them refine
their careers in addition to personalities. Lastly, the company tradition at
Almarai Company Milk and Modernization withinside the Kingdom of
Saudi Arabia additionally has a supportive management which goes
toward growing worker motivation and task pride with the aid of using
.giving manner to visibility and accessibility

:Task alignment with values

Almarai Company Milk and Modernization in the Kingdom of Saudi

Arabia ensures that all its job tasks and roles are aligned with the core
values that the company propagates. This means that all activities,
tactics, and strategic tactics employed by Almarai Company Milk and
Modernization in the Kingdom of Saudi Arabia will reflect its core values,
and will not deviate away from these. This is to ensure a consistent, and
reliable brand image, as well as an honest organizational culture. In the
event of organizational change, the company will continue to ensure
that all change management processes and methods incorporate the
core values so that the organizational culture is consistently maintained,
 .and systematically changed if need be

:Style )5
:Management/leadership style

Almarai Company Milk and Modernization withinside the Kingdom of

Saudi Arabia has a participative management style. Through a
participative management style, Almarai Company Milk and
Modernization withinside the Kingdom of Saudi Arabia is capable of
interact and contain its personnel in decision-making procedures and
managerial decisions. This additionally lets in the management to
frequently have interaction with the personnel and distinct managerial
companies to become aware of any capability conflicts for resolution, in
addition to for comments concerning strategic processes and
operations. Through its participative management, Almarai Company
Milk and Modernization withinside the Kingdom of Saudi Arabia is
capable of decorate worker motivation, and boom organizational
dedication and possession among personnel in addition to different
.stakeholders

:Effectiveness of leadership style

The participative management fashion is notably powerful in reaching

the enterprise desires and imaginative and prescient of the agency.
Employees sense to be lively contributors of the company who're valued
for his or her suggestions, feedback, and input. Moreover, via
participative management, leaders and bosses are capable of become
aware of modern and capability conflicts withinside the Almarai
Company Milk and Modernization withinside the Kingdom of Saudi
Arabia agency, and actively paintings to solve them as quickly as
.possible

:Cooperation vs competition – internally

With its supportive and inspiring organizational tradition, Almarai

Company Milk and Modernization withinside the Kingdom of Saudi
Arabia offers manner to inner collaboration and cooperation among
employees, systems, teams, and departments. This cooperation and
collaboration at Almarai Company Milk and Modernization withinside
the Kingdom of Saudi Arabia is critical for the reason that its operations
are unfold globally, and additionally due to the fact duties and duties
withinside the enterprise frequently require inter-departmental
comments and input. Moreover, with expanded expansion, and synergy,
the enterprise additionally often bureaucracy mission teams – which
feature efficaciously due to the cooperative and collaborative way of life
in the Almarai Company Milk and Modernization withinside the Kingdom
.of Saudi Arabia organization

:Team vs groups

Almarai Company Milk and Modernization in the Kingdom of Saudi  

Arabia has effective and functional teams and works with them
internally to achieve its various business goals and objectives, and
complete tasks. The company’s management is encouraging and
supportive, and the leadership provides a motivating and pragmatic
vision toad achieve. The human resource management system, as well
as the organizational training, supports all employees in their growth
fairly and transparently. This leads to effective team formation instead
of nominal groups within the organization for various projects, as well as
.department-specific tasks and roles
Positive: fashion has been converted right into a
participatory fashion, in order that this change results in
flexibility in paintings and much less strain at the
branches because of the paintings of every supervisor in
.line with the wishes of the region

One of the negative: aspects of this change Can sense

.remoted from different organizational areas

:staff )6

:Employee skill level vs business goals

Almarai Company Milk and Modernization in the Kingdom of Saudi

Arabia has a sufficient number of employees employed across its global
operations. Employees for different job roles and positions are hired
internally as well as externally – depending on the urgency and the skill
levels required. Based on this, it is seen that Almarai Company Milk and
Modernization in the Kingdom of Saudi Arabia has employees who are
skilled as per the requirements of their job roles and positions. All
employees are given in house training to familiarize themselves with the
company and its values. External training along with in-house training is
.provided for skill level enhancement

All job roles and positions are designed to facilitate the achievement of
business goals, and as such, employee skill level at Almarai Company
Milk and Modernization in the Kingdom of Saudi Arabia is sufficient to
.achieve the business goals of the company

:Number of employees

Almarai Company Milk and Modernization in the Kingdom of Saudi

Arabia has employed a large number of employees. The number of
employees varies from country to country as per the requirements and
needs of the business and operations. The global team of Almarai
Company Milk and Modernization in the Kingdom of Saudi Arabia is an
inclusive one that accepts, and encourages diversity, and works in
synchronization with members to ensure attainment of business goals.
The team member sand employees are the most important part of
business success for Almarai Company Milk and Modernization in the
.Kingdom of Saudi Arabia

:Gaps in required capabilities and capacities

Almarai Company Milk and Modernization in the Kingdom of Saudi

Arabia has a well-defined system for identifying potential needs of
capabilities and capacities for the organization. The human resource
function of the business has a systematic process that aligns all other
departments to identify potential vacancies or skill gaps. Based on the
nature of the need, the human resource department arranges for
recruitments which may be permanent or contractual in nature, as well
 .as arranges training sessions if need be for the current workforce
Staff (group of workers) One of the maximum critical modifications
that arise to personnel is to draw new personnel and to appoint the
proprietors of the vicinity due to what I knew them enough withinside
the marketplace necessities in addition to what I knew in cultures. This
shift additionally calls for a extrade withinside the technique of
schooling and rewards for this class of personnel because of converting
.cultures and converting skills

: Skills )7

:Employee skills

Almarai Company Milk and Modernization in the Kingdom of Saudi

Arabia has a commendable workforce, with high skills and capacities. All
employees are recruited based on their merit and qualifications. Almarai
Company Milk and Modernization in the Kingdom of Saudi Arabia prides
itself on hiring the best professionals and grooming them further to
.facilitate growth and development

:Employee skills vs task requirements

Almarai Company Milk and Modernization in the Kingdom of Saudi

Arabia has defined tasks and job roles and hires and trains employees
for skill levels accordingly with respect to those. The company ensures
that all its job requirements are met and that employees have the
sufficient skills to perform their respective jobs in accordance with the
values and culture as well as the business goals and strategy of Almarai
 .Company Milk and Modernization in the Kingdom of Saudi Arabia
:Skill management

Almarai Company Milk and Modernization in the Kingdom of Saudi

Arabia pays particular attention to enhancing the skills and capacities of
its employees. It arranges regular training and workshops – internally as
well as externally managed- to provide growth and development
opportunities for its employees. Almarai Company Milk and
Modernization in the Kingdom of Saudi Arabia focuses on personal as
well as professional growth for its employees and works accordingly
.with them

:Company’s competitive advantage

The human resource is one of the core competitive advantages of the

company. The skills of employees are developed specifically for job roles
and requirements at Almarai Company Milk and Modernization in the
Kingdom of Saudi Arabia and provide a competitive benefit to the
company – where players cannot imitate employee skills or training. This
creates a unique and non-substitutable competency for Almarai
 .Company Milk and Modernization in the Kingdom of Saudi Arabia

Positive: abilities A worldwide marketplace will want group of

workers with numerous competences to match the numerous
consumer needs, tastes, preferences, and cultures. For this
reason, the business enterprise appoints personnel and trains
them as a way to attain the specified abilities, so as to attain
the dreams of the organization and reap the necessities
wanted through international markets.The blessings of this
are to extrade the gain of the know-how of nearby personnel
because of their enough information of marketplace tastes
.and preferences, in addition to cultures
Negative: Shift withinside the loss of enough talents that
groups in particular need, including a selected software
.program technician for the paintings of the Company

Mckinsey 7s
:strength point

Increase managers' awareness of the effectiveness of their activities and

.the competitiveness of the proposed product

.Understand the client's desires and the dynamics of his preferences

.Provide data on market opportunities

.wide strategic choice

Study information about the strengths and shortcomings of the

.company, correct errors

.This is a more detailed method compared to BCG matrix

:Weak points

.The difficulty of objectively assessing the weight of each category

.Work that takes a long time costs a lot of money

The position of the company in the matrix and the optimization

.alternatives selected are of an advisory nature only
:Hofstede's theory

:Weaknesses and strengths

One major weakness which is associated with the Hofstede
model is that it is based on inconclusive research. The model is
based on answers from one company which makes the sample
size small and biased. This makes the overall research have low
validity and accuracy levels . The second weakness is the
methodology of this research which used questionnaires.
Weaknesses present in this research methodology are many
and it is difficult to establish research findings on five main
dimensions being investigated solely using this methodology
design. Hofstede is seen by some scholars as using an outdated
definition of culture which ignores effects of globalization and
this defeats his overall research objectives. Finally, Hofstede
assumed that location does not affect employees’ reactions,
which is not the case, as people react differently to different
situations and places. Its strengths include the fact that it
analyzes the organizational culture versus the national culture
which is important in all multinationals as it affects employee
motivation and organizational conflict.His findings may be used
by multinational managers in enhancing employee motivation
and reducing conflict, both of which are ways of improving
.organizational performance