Free Essay on NAMA Chemicals - A Business in Saudi That Is Not Focused on Sustainability

Published: 2022-03-02
Free Essay on NAMA Chemicals - A Business in Saudi That Is Not Focused on Sustainability
Type of paper:  Critical thinking
Categories:  Company Business
Pages: 4
Wordcount: 997 words
9 min read

NAMA Chemicals is one of the leading companies in Saudi Arabia that are in the production and distribution of chemicals. The company also engages in petrochemical businesses supplying the local and international market with its commodities. The management of the organization engages in strategic decisions that help the firm grow and expand its clientele base while meeting international standards of chemical production. Despite the level of success of NAMA Chemicals in the country, little attention has been given to sustainability and consideration of how the firm can make fruitful efforts to support the environment and the community. This has made the management of the organization think of ways in which they can consider sustainability in the decision-making process with the aim of improving the lives of all people and the environment at large. Economically superior products are price friendly, and an organization does not compromise on the quality since it focuses on maintaining a relationship with the customers.

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Some of the considerations that NAMA Chemicals can have as they focus on products that are superior regarding the economy, social perception, and environment have a better understanding of sustainability and how it will affect their businesses both in the short-term and long-term (Epstein & Buhovac, 2014). The first step is an identification of the stakeholders and understanding how they will feel the effect of measures taken towards sustainability. For instance, the stakeholders at NAMA Chemicals are the shareholders, the government, and other people who rely on the organization directly and indirectly. In addition, it is important to have the management's commitment towards sustainability, as they will authorize the implementation of important decisions, which aim at increasing the organization's response to the environment, social needs, and economic welfare. For instance, the management will need to increase the budges allocated for money spent in corporate social responsibility activities with the aim of reaching more people in the community (Epstein & Buhovac, 2014). NAMA Chemicals can sponsor projects taking place in the community, which will have a positive impact on a large number of people. Since the company is in the business of chemical production and distribution, it should have proper mechanisms in place, which help in the disposal process and avoid placing harmful wastes to the environment. Harmful waste affects the people living in a dumpsite as the air is corrupted which may cause health conditions on their respiratory system.

Total Value Proposition from a Sustainability Perspective

The total value proportion is a concept that focuses on the increase of significance on products or services on the consumer (Yang, Vladimirova, & Evans, 2017). It aims at increasing and improving the experience and perceived benefit after acquiring a product. Value proportion is a strategic business plan that organizations adopt with the aim of increasing customer satisfaction. Therefore, when organizations engage in value proportion while taking into consideration the issue of sustainability, it focuses on delivering goods and services to customers, which will benefit their environment, economic strength, and social circles. NAMA Chemicals will adopt value proportion and focus on sustainability through the inclusion of consumers' needs. For instance, it will convince the target market that its chemicals have a low percentage of harmful residues. In addition, the organization can commit its resources and workforce to collect all waste materials from consumers so that they can dispose of them in a professional manner (AlSaleh & Taleb, 2010). NAMA Chemicals can put up collecting bins at designated places in the city where residential and commercial customers can place the empty tins of the chemicals they had purchased from the company. This will send a positive image on the market as the firm focuses on value proportion while focusing on the environmental needs of the consumers.

The use of values for NAMA Chemicals' green products will be in the production of chemicals that can dissolve in the soil after disposal and have fewer negative impacts on the environment. In addition, the company will ensure that it meets the Green Standards, which are a global requirement for every company, which commits to the sustainability of the environment. NAMA Chemicals will have a research and development center in its premises, which will seek information of continuous improvements on the products manufactured by the organization. Value propositions in the company will focus on ways to increase the greening levels in the company by planting grass and testing whether it could be destroyed by chemicals produced (Luchs & Kumar, 2017). The tests will act as an assurance to the customers those products they purchased from NAMA Chemicals. Other nonuse values for the business' green products are in establishing a name as the best producer of chemicals in the industry. Creation of a good business name helps in increasing the profits earned at the end of each financial year.

NAMA Chemicals can determine WTP through the inclusion of water purification machines in the industry, which will help in the reduction of the amount, spent in the production process. It will also help in preventing untreated water from getting in water bodies that supply the community (Yang, Vladimirova, & Evans, 2017). The business will also determine consumer surplus through the increased business demands for its products. However, due to its dedication towards sustainability and value proportion, it will have a positive response from consumers.


AlSaleh, Y. M., & Taleb, H. M. (2010). The integration of sustainability within value management practices: A study of experienced value managers in the GCC countries. Project Management Journal, 41(2), 50-59.

Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.

Luchs, M. G., & Kumar, M. (2017). "Yes, but this Other One Looks Better/Works Better": How do Consumers Respond to Trade-offs Between Sustainability and Other Valued Attributes?. Journal of business ethics, 140(3), 567-584.

Yang, M., Vladimirova, D., & Evans, S. (2017). Creating and Capturing Value Through Sustainability: The Sustainable Value Analysis Tool A new tool helps companies discover opportunities to create and capture value through sustainability. Research-Technology Management, 60(3), 30-39.

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