Ansoff Matrix , Pdf

Strengths Weaknesses spry decision making Negative r shapeinuser of the Middle East Oil money, booming economy clean-handed desert, the lack of natural resources Political neutrality and impartiality Only 20% of UAE nationals Unique beauty, hotels and attractions The lack of extreme infrastructure transportation, water Luxury experience includes relaxing beaches and invigorating sport and exploration opportunities Luxuries might magic spell too sm only a segment Safe surroundings Opportunities Threats Increasing oil price loyal antagonists within the region Abu Dhabi, Qatar outside of region Singapore, Hong Kong Increase job opportunities for immigrants and natives Oil running out in 30 years Growing luxury market Terrorism and war could further negative image of Middle East, UAE Increase in irrelevant investment Limited media coverage Proactive attitude Well- genuine MICE environment A successful small business should communicate to the customer why they should pi ck you among the myriad of options in your manufacture today.For that A SWOT analysis should be done from a realistic point of positioning and keeping in mind a very discerning customer. The analysis should also consider the standards of the industry and your major competitors. A basic SWOT analysis should be Strengths Anything that the industry requires, that you do well and your competitor doesnt do depose be your potency. For example your corporations distribution channels, your direct marketing approach, your patented high end product. Weaknesses We can all list strengths, but can we be realistic and list weaknesses?This might be the take off point for any small business. Weaknesses can be anything from non efficient staff to a lack luster front end office. Opportunities Successful business turns threats to Opportunities. Opportunities abound todays ever dynamic realism, where raw markets atomic number 18 universe formed and the customer is being provided with revolutio nary products. Opportunities can come as clean business regulations or blush a wrong prevail by your competitor. Threats How you identify and tackle threats go away pave your path to success. A rude(a) competitor with a much sophisticated product can be a threat.Being aw atomic number 18 of this in advance and making a better package for the customer to stand up against the competitors late product is how a threat becomes an opportunity. SWOT is simple and like all simple and age old st pass judgmentgies very powerful. SWOT is a starting point and is also plays a major part in strategic planning. Pest analysis of UAE Name United Arab Emirates. The Emirates ar Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah. Government Federation of the seven Emirates, each with its own ruler.President Sheikh Zayed Bin sultan Al Nahyan. Area 83,600sq. Km (including 200 islands) Location Middle East, bordering the Gulf of Oman and the Persian Gulf, between Oman a nd Saudi-Arabian Arabia Population 2,407,460 and includes 1,576,472 non-nationals July 2001 Language Arabic (official), Persian, English, Hindi, Urdo Religion Muslim 96% (Shia 16%), Christian, Hindu, and other 4% Climate Desert cooler in eastern mountains Currency The UAE Dirham (Dh) or (AED), 1Dh = 100 fils Exchange Rate 3. 671 Dh per US $1 (http//www. uaeforever. com) Political factorsThe political situation in the UAE is stable. The Emirates banking systems surrender real relationship based banking and monetary system that is capable to fulfill later stage funding supplies, whether it is equity, loans or leasing. Almost banking organizations, represented by almost every major financial institution in the world can either invest or assist in accessing UAEs emerging capital markets. Gaining moneymaking(prenominal) loans in the UAE is based on established credibility and relationships with influential people to create a more stable political atmosphere.The government mainly sets up the financial politics but there be organizations such as the ADCCI (Abu Dhabi Camber of Commerce and perseverance) that serve as a bridge between the hidden sector and the government. ADCCI provides a wide range of services, such as setting up the Sheikh Khalifa computer storage to provide technical and financial support for small-medium enterprises set up by the youth, they also organize look at fairs, sending delegations abroad to promote Abu Dhabi as a commercial message center and initiating training programs that train nationals to draw together the private sector.The strong banking system increases presence of venture capital and government funding provide essential financial resources to foreign and local entrepreneurs. The most crucial factor is raising capital for a new foreign entrepreneur is to establish good relationships with local guarantors or other established foreign entrepreneurs. The shell thing to do here is to get a network of contacts essential fo r successful business in the system Political risk factors Four types of political risk factors must be examined in assessing the mode for investment in any given country.They are 1. Regime change A change in key government personnel through normal electoral or authorized political processes, or through illegal means. 2. Political turmoil General levels of politically inspired violence, including violent strikes, guerrilla action, or civil war 3. Government policy Decisions with respect to fiscal and monetary policies, trade restrictions or foreign investment regulations. 4. External events other countries actions that affect the country of concern. (book Global Investing page 89). Taxes The UAE does not have any enforced federal income assess legislation for general business nor is any such tax envisaged in the foreseeable future. Taxation on trade or business income would be, in theory, based on income tax decrees issued by the individual Emirates prior to the crediting of UAE a s federation in 1971. To income tax decree has been enacted by each Emirate, in practice the enforcement of these decrees is restricted to foreign banks and oil companies. To incant investors there is no personal gross in the UAE.Except for oil and gas-producing companies that pay royalties and taxes on their proceeds and foreign banks that pay 20% of their profits, there are no direct corporate income taxes there are no preservation taxes. In the free zones, enterprises are granted at least a 15-year tax exemption guarantee regardless of the changes in the laws. The up-to-dateness is fully convertible and there are no taxes on the repatriation of capital or earnings. Further, there are no foreign exchange controls, quotas or trade barriers and import duties and tariffs are extremely low. (Book Banking in the UAE) economical factorsIn the last fifteen years the economy of UAE has move very quickly. The discovery of oil and its victimisation provided the drive to the local trade, which earlier mainly represented the entrepot trading activities of Dubai. The primary trade strength of the UAE has been reconfirmed by the really strong economy, which was almost unconstrained by the Gulf War and other regional events. (book UAE Economy) The banking system consists of the Central Bank, 21 national banks with 281 branches, 28 foreign banks with around 1,001 branches, one restricted certify bank, two investment banks and 10 representative offices.The Central Bank acts as the governments adviser on financial and monetary matters, issues currency and controls the banking sector. The national banks have a dominant share of the market. The leadership institutions are National Bank of Abu Dhabi, Emirates Bank International, National Bank of Dubai, Abu Dhabi Commercial Bank and Mashreq bank. The foreign commercial banks have about 25% of the market share and hold roughly the same amount in total bank assets.The regulation of the UAE financial market was taken a furthe r step in March 2000 with the launch of the Dubai Financial Market, which made the buying and selling of stocks official previously, this had to be carried out colloquially through private investment agencies. With less than 10 companies listed and Volume of $1 million in day-after-day transactions, the Dubai Financial Market is early to provide an environment sufficiently attractive to act as a magnet for the massive overseas reserves (estimated at $600 billion by the IMF). There are even investments for foreigners now in the Emirates.A recent announcement made by public joint stock company EMAAR properties (owned 32% by the Dubai government) to allow foreigners to own up to 20 percent of shares is a major move towards unresolveding up of the UAE financial market to international capital. Economic analysis in the UAE is difficult as there are delays by the federal and emirate governments in publishing comprehensive and accurate statistics in a timely manner. The private sector i nstitutions including banks and foreign oil companies are not allowed to disseminate statistics directly to the public.The UAE has an open economy with one of the highest gross domestic product per capita in the world and a sizable annual surplus. (www. emirates. org/economy). This pie outlines the economic sectors GDP for year 1994 The UAE has good economic conditions including strong currency strong GDP and population growth (present rate approximately 6. 5% per year) then, provides significant opportunities for entrepreneurs in non-oil related sectors Porter five force model on Dubai The UAE retail sector continues to grow, supported by the upgrading of existing retail stores and the addition of state of the art new mega retail stores.The UAE market presents retailers with diverse relatively high-income consumers. Exporters who are willing to establish personal relationships, consolidate shipments, and fit the labeling requirements of the UAE market will find a rapidly growing sector in which to sell a wide range or products. annual sales in the industry are estimated at $3. 5 billion. The UAE food retail sector continues its obstreperous growth. More large type stores are being built. French retail chain already operates in the market while a new one is being prepared to launch its services. Value of retailed products are currently estimated by trades at about $2. billion. The French retail Giant, Carrefour, has moved aggressively into the retail of food and non-food products in the United Arab Emirates and is expected to open at more locations across the UAE. Other Arabian Peninsula markets are definitely in the cards for this retailer as consumers go more and more for low prices and everything low one roof. The author analyzes the Food Retail Industry in the UAE in Michael Porters Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that jog the competitive intensity and therefore attra ctiveness of a market.Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces adjoining to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace Food Retail Industry in the UAE Porters Five Forces Strategy Analysis The UAE retail sector continues to grow, supported by the upgrading of existing retail stores and the addition of state of the art new mega retail stores.The UAE market presents retailers with diverse relatively high-income consumers. Exporters who are willing to establish personal relationships, consolidate shipments, and meet the labeling requirements of the UAE market will find a rapidly growing sector in which to sell a wide range or products. Annual sales in the industry are estimated at $3. 5 billion. The UAE food retail sector continues its aggressive growth. More lar ge type stores are being built. French retail chain already operates in the market while a new one is being prepared to launch its services.Value of retailed products are currently estimated by trades at about $2. 5 billion. The French Retail Giant, Carrefour, has moved aggressively into the retail of food and non-food products in the United Arab Emirates and is expected to open at more locations across the UAE. Other Arabian Peninsula markets are definitely in the cards for this retailer as consumers go more and more for low prices and everything under one roof. Aruvians Rsearch analyzes the Food Retail Industry in the UAE in Michael Porters Five Forces Analysis.It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces clos e to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace