Budgeting Process : Sadara Chemical Company Vs. Chemical Company

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Sadara Budgeting Process Sadara Chemical Company represents a special cooperation between two business leaders in their relevant industries – Saudi Aramco Oil Company and Dow Chemical Company – brought together through shared values and a dedicated vision to create change in the chemical industry. Sadara is locating in the Jubail Industrial City of Saudi Arabia, the world’s largest chemical complex ever built, with about 26 integrated world-scale manufacturing plants that will produce more than three million tons of products every year. In order to run the company budgets and assets effectively, Sadara built a three years business plan that includes all requirements. The use and purpose of the business plan is to express what Sadara is or what it aims to be over the time. Also, to clarify the purpose and direction of Sadara to allow the employees to understand what needs to be done for forward movement. The usual budgeting cycle takes too long and consumes too much managerial time (McKeen & Smith, 2015). Furthermore, Throughout the business plan cycle, Sadara organizations like IT department, maintenance, Operation, community and all other departments shall provide a detailed plan that shall include controllable costs, key performance indicators (KPIs) and level of operation (LOIs), workforce, capital requirements, initiatives, benchmarking, IT assets usage, operational excellence results, technology projects, and risk management assessments. Nowadays,

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