Case Study on NAMA Chemicals

Paper Type:  Case study
Pages:  6
Wordcount:  1564 Words
Date:  2022-11-21


Total value entails a commitment by an organization to focus on customers and engagement in activities that increase the quality of their services and products in the long run. Organizations contribute to the total value products through risk allocation enabling the management to engage in numerous projects (AlSaleh & Taleb, 2010). Thus, every production stage the administration is tasked with ensuring that customers derive the highest form of satisfaction from products obtained. Also, customer retention should also be given priority. The consideration of total value addition is key to improving sustainability in both the short and long term. The ultimate decision maker (the management) is also pivotal in considering the interests of consumers concerning attaining total value addition (Yang, Vladimirova, & Evans, 2017). The realization by the management on the importance of considering both the environmental factors and the needs of consumers in decisions guiding production and service delivery can help align organizational goals with internal and external transition factors. NAMA chemicals are one of the leading suppliers of chemicals in the United Arabs Emirates (UAE). This research analyses the total value added and sustainability of NAMA chemicals concerning improving performance and service delivery in both long and short term periods.

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Saudi Business Focused on Sustainability

As a leader in the production and supply of chemicals in the UAE, NAMA chemicals is engaged in petrochemical transactions at local, regional and international levels. Besides the need to make decisions that are key to the growth of the company through the acquisition of new customers and retaining the existing ones, the management of NAMA chemicals is also tasked with ensuring conformity to international standards of chemical production. The company has successfully managed to attain these goals in recent years. However, the decisions by NAMA chemical's management have failed to integrate sustainability and considerations on how the organization can effectively support the local communities (Vladimirova and Evans, 2017). There are various ways that sustainability can be integrated with the decision-making procedures of a company such as NAMA chemicals. NAMA chemicals produce and supplies economically superior products. These products are also offered to customers at a friendly price without compromising in quality to maintain the client base on a large scale. The continuity to manufacture and supply chemicals (economically superior products) is justified by the ability of NAMA chemical to break even and make significant profits.

Use Values for Business' Green Products

The management of NAMA considers aligning its goals and objectives with the sustainability concepts as they determine the competitive advantage over the long run through the commitment to the process of change in the industry. The commitment towards sustainability and attaining set goals within the shortest period starts with employees. By providing incentives, the management ensures that employees are motivated to work hard and dedicate of extra time to attaining set sustainable goals. Therefore, it is fundamental that NAMA Chemicals focuses on understanding sustainability and its short and long term effects on their activities to offer services and products that are superior economically, socially and environmentally (Epstein & Buhovac, 2014 p22).

The first step towards understanding and integrating sustainability within an organization is the identification of stakeholders and their perceptions towards sustainable production, supply, and marketing. For example, the stakeholders at NAMA Chemicals entails the government, shareholders and other individuals and groups with direct and indirect ties to the organization. Understanding the role played by such stakeholders and their push for sustainable business activities can help increase their commitment to NAMA chemicals. The government, for example, is committed to attaining economic development, NAMA chemicals can engage in activities aimed at fostering sustainable development such as local community projects aimed at improving the lives of the ordinary citizen and small businesses (Epstein & Buhovac, 2014 p22). Apart from considering the perceptions and actions of stakeholders with regards to sustainability, the commitment by NAMA's management towards sustainable activities is also vital in making and implementing decisions that are directed towards including social needs, environment, and economic welfare. A sustainable product satisfies the requirements of customers both in the short and long run while causing less damage to the environment or other members of the society (Luchs & Kumar, 2017). Through its engagement in chemical production, NAMA chemicals can implement production and distribution mechanism that have minimal effect on the environment or people. For example, the company can engage in the production of chemicals that have minimal environmental and health outcomes in case of spillage, disposal or human contact. In doing so, NAMA avoids being a significant cause for health complaints from the local communities or causing massive air pollution which affects the company's image.

Total Value Proportion

Total value proportion is focused on increasing the significance of products and services to the consumer (Yang, Vladimirova, & Evans, 2017). The latter encompasses improving the overall efficiency and perceived benefit of acquiring the particular product. Value proportion is, therefore, a strategic business strategy that is adopted by most organizations with the aim of ensuring customer satisfaction. Thus, engagement in value proportion with sustainability in mind means that the production and supply of chemical products by NASA chemicals has to also focus on maximizing environmental protection, economic strength, and benefits accrued by social circles. By inclusion of consumer needs such as convincing targeted markets of the lower harmful chemical residues in their products, NAMA chemicals can attain sustainability. Incorporating risk management in projects can also help an organization reach its goals within the set time (AlSaleh & Taleb, 2010). NAMA chemicals can there're, venture in the installation of collecting bins designed explicitly for disposal of empty tins by their commercial and residential clients. The move has the potential of preventing environmental pollution, serving as a development mechanism and also protecting the local communities. On the other hand, the image of NAMA chemicals in the market is improved through value proportion.

Non-Use Values

Establishing a reputable name as the best producer and supplier of chemicals in the industry is a crucial non-use value for NAMA Chemicals' green products. A good business name is vital in increasing recurring transactions and making significant profits each financial year. Such amounts can be channeled in the production of disposable chemicals and implementing treatment mechanisms to minimize environmental impacts. Having a considerable financial base also ensures that the company can easily meet the Green standards guiding every global firms' disposal of harmful gases or liquids. For example, the Green standards specify that greenhouses must have a minimum of four percent gaseous emissions. NAMA Chemicals can develop and research and development facility for seeking ways to increase the sustainability of the products manufactured continuously. In this case, the value proposition will focus on increasing the company's greening levels through laboratory testing of the effects of their products on the environment and animal life (Luchs & Kumar, 2017). Such tests not only increase the efficiency of the products manufactured but also act as assurances to the clients on the safety of their purchases.

Determining Usage of WTP, WTA, and Consumer Surplus

Having a good business name is directly linked with the profits earned during each financial year. The determination of willingness to pay (WTP) and willingness to accept (WTA) at NAMA Chemicals can be done by installation of water purification machines vital in managing the amounts used in the production process and untreated releases to the water bodies (Yang, Vladimirova, & Evans, 2017). By comparing the cost of indifference regarding pollution and the ability to fund the protection, strategies can help in estimating the overall benefit of set sustainability goals (Epstein & Buhovac, 2014 p.151). In preventing water pollution and managing usage, NAMA chemicals are better positioned to show its dedication towards value proportion and sustainability, thus, provoking a positive response from consumers. Consumer surplus can be determined by the ability of the stakeholders to pay or preference of free efforts in reducing environmental pollution.

The consideration of total value addition by the management is tied to enhancing sustainability in both long and short terms. Sustainable development is vital for any organization as it creates a focus on improving the product value while preserving the environment and eliciting maximum value. Consumers tend to be more responsive to products that are sustainable compared to the similar ones that have been produced and supplied with unsustainable means. Total value management is pivotal in addressing an organization's sustainability issues and strategic decisions that demanded by consumers and changing business environment. Commitment from all organization's members is vital in attaining set goals and objectives with minimum resources use.


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. Retrieved from

Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. California: 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. Retrieved from

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. Retrieved from

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Case Study on NAMA Chemicals. (2022, Nov 21). Retrieved from

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