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Country Profile United Arab Emirates
“The UAE Federation was founded on 2 December 1971 as a completely self-governing state once the ‘Trucial States’ terminated their distinct treaty affiliations with Britain. In the running of any business, there is a necessity to have a strategic plan that defines the company, its market, and the services and/or products it offers. Strategic planning involves making clear-cut decisions in terms of direction and resource aimed at pursuing the organization’s strategy. The United Arab Emirates presents a huge and prospective market in which different ventures are prospering. The country’s profile in terms of the business strategies is helped in the success rate of ventures. This is especially important when the political, economic, social and technological factors are considered where the business is concerned. The society, as well as the government, plays a role in facilitating the success of the business ventures. In most cases, a generic strategy plan is a plan that forecasts where the organization will be based on development and excelling of the company be defining the limits within which operations shall be carried out.
The GDP’s per head of the UAE is one of the world’s most competitive. Economic diversification of the UAE cushions the region whose economy is still highly dependent on hydrocarbons, especially during the low oil prices. Diversification of the region is done through hefty foreign exchange capitals and overseas investments. Abu Dhabi bears a world’s estimated 10% of proven oil reserves and 5% of natural gas. The hydrocarbon resource has resulted in a preferential economic portfolio for the region. Dubai has limited hydrocarbon reserves and thus majors in business, logistics, leisure, and media. The northern emirates focus in the manufacturing industries and are reliant on the government for development funds. Overall, the emirates record a GDP of US $294.674 million, and a GDP per head of US $ 56, 382, which is tantalized with an annual growth of 2.1% and inflation of 0.9%.
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The business operation principle is a strategy in which the organization cuts down on the costs of production with the aim of being the most affordable service provider. The strategy involves lowering the production costs through the whole development process (Lynch, 2006), from the idea conceptualization through to the end-product delivery. The principle behind the operation is to lower the costs incurred by the consumer in acquiring a given product or service, thereby providing a service or product that shall be affordable and preferable to the large market portion, allowing the organization to hit critical mass of production where the revenue gathered shall be adequate to cover the cost of production . The strategy is aimed at creating a competitive edge in the market by competitively pricing the end user products, though companies that hold their services in the premium bracket do not necessarily indulge the customers in the savings (Lynch, 2006). The scope in the business operation is engaged by targeting the larger market (Lynch, 2006), which most likely consist of the middle and low-class earners. The competition in the premium class may be too tough since as suggested by Pareto’s pyramid, it is only 30% of the population, from a population of 8.26 million. The strategy in scope allows the organization to focus on the production numbers as opposed to quality by meeting the demands of the larger market and in the process making sure that the sales hit the critical mass level. Since this is one of the ideas behind the business operation strategy, it then can be defined within the strategic scope dimension…