Throughout 2008 and early 2009, the executive team of World Communications Corporation (WCC) has been actively involved in the consideration of whether it should invest in a large manufacturing and distribution operations in Saudi Arabia. Saudi Arabian economy has dramatically increased due to a rise in oil prices and export revenues in 2008. In early 2009, Seth Thomas, CEO of WCC, faced with three potential alternatives. The first was to risk building a plant for the production and distribution center in Saudi Arabia, and the strengthening of the competitive position of the company abroad. The second alternative was to increase production capacity in the country and continue to export, as the company has done so successfully for many years. The third option was to wait and postpone the two solutions due to the uncertainty caused by the global financial and economic crisis in 2008. If Saudi Arabia can manage the economy to avoid a global economic slowdown had an open discussion, but preliminary data are encouraging. The case is considered state regulation and treatment of foreign investment and the level of education of labor and education in order to support the development of local leaders and managers.
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by F. John Mathis, Barbara S. Petitt Source: Thunderbird School of Global Management 8 pages. Publication Date: September 30, 2009. Prod. #: TB0027-PDF-ENG
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