Strategic Management Formulation in SMEs in Saudi Arabia

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Globalization, liberalization, and privatization have brought many changes in the business world. It opened many opportunities and challenges to business people across the world.
Saudi Arabia is a prosperous country because of the immense oil resources and the enormous capital it gains through business. “Saudi Arabia’s investment environment reflects the country’s traditions of liberal, open-market private enterprise policies. There are no restrictions on foreign exchange and no restrictions on the repatriation of capital and profits” (Investment Climate in Saudi Arabia, n. d). Even then, many small and medium-sized enterprises&nbsp.(SME’s) failed to prosper in Saudi Arabia because of the failures in their strategic management of a business. It is necessary to conduct extensive research in order to identify the business climate of Saudi Arabia properly and the strategies necessary to exploit the opportunities present by the Saudi business world.
Saudi Arabia has encouraged SMEs for the last 5-6 years. Moreover, there are many non-governmental organizations that support SMEs financially. Even though Saudi is making every effort to encourage SME’s, most of the projects lack failed because of a lack of innovation and sustainability
The questions like. what does strategy mean in the context of small firms? Should small businesses have a formal strategy? Should a small firm plan its strategy? What strategies should a small firm pursue? Can a small business reposition itself strategically? What strategies are associated with success in small businesses? etc are some of the basic questions intended to answer through this research
and would like to focus on (The impact of applying strategic management in general and strategic marketing management in particular on the success and sustainability of SMEs in Saudi Arabia). what are the norms or legal required to start a business in Saudi Arabia, how human right issues affect the business world in Saudi Arabia, how the development plans contributed to the improvement of business climate in Saudi Arabia etc are some of the major questions needed to investigate as part of this research.