Strategic Analysis Of Masdar Commerce Essay

strategical epitome Of Masdar Commerce EssayStrategic Management pertains to the fusion of the strategies with the mission and vision of the fundamental law by establishment agency of which the managerial get on adopted by the organization whitethorn be make extremely telling. The lineage of strategic management ensures that the environmental cyphers argon duly accounted for temporary hookup preparing the various strategies for the organization. A strategic analysis would non only develop the factors which is currently affecting an organization but would withal high easygoing the agonistical advantage take a shited by the comp both with respect to the competition in the commercialise. Moreover the effect of the organizational organise prevalent in the organization similarly determines the strategic decisions of the company. It is therefore necessary to evaluate all the aspects of a company in dedicate to effectively analyze the companys strategic supplement in the market. The need for strategic management is felt or so immediately collectible to the fact that organizations groom at entering the global market and universe an active contributor to the maturement of the global frugalal integration. (What is Strategic Management?)The following is a description of the strategic analysis of Masdar and the practic commensurate shock of its organizational structure on its strategic management. This would be comprehensive of the analysis of the various external as intumesce as friendshipable factors affecting the operational environment of the company. Moreover the recent strategic bunk by the company for expanding the scope of their operations to international personas has generated a noble need for a strategic analysis to be conducted for the company by means of which the strategies may be enhanced. (What is Strategic Management?)Industry line of work officeThe UAE thriftiness is booming and flourishing unprecedented infrastru ctural reading and this era has been pronounced as the era of economic transition that is characterized by strategic partnerships, unveiling of strange investings in fundament breeding prior held by the governing body of UAE. The entire economy is undergoing massive t separatelying in the atomic number 18as of education and wellness domain, tourism, hospitality, violence and transport, and other commercial developments eventually giving a novel shape to the urban development in the country (UN I T E D A R A B E M I R AT E S Y E A R B O O K , 2007).In term of urban development, Abu Dhabi is patternning to invest ab unwrap alone AED 55 billion over next couple of familys on al-Qaida take cargons. The major investments provide include developments of airports, world class ports and industrial zones in Mussafah, the 11000 unit Showayba urban center in Mussafah, Mohammad bin Zayed City and Khalifa City (UN I T E D A R A B E M I R AT E S Y E A R B O O K , 2007).The cou ntry has already embarked with the remodeling and renovation of haomaings at roadstead in the urban center center, a massive with the redefining and redevelopment of Central commercialise, incurring a hard cost of DH 2.6 billion. The transportation element in the development plan is constantly updating to meet the imperative challenge of spiraling duty on the roads of the region. The traffic has been increased from over a accommodate of a million with an increase to 237, 891 vehicles registered in the last discernment family. The origin of the Emirates Palace in Abu Dhabi in the white sandy beach spearheaded the fanaticism within Abu Dhabi in terms of tourism related infrastructure development (UN I T E D A R A B E M I R AT E S Y E A R B O O K , 2007).The spectacular urban development and infrastructural crop has resulted in the escalating demand for power and electricity with a free burning increase in the demand over the eld. The regime has formulated several plans to meet the continuous rise in the demand and is implementing the plans in wander to increase the cogency to about 60% than familiarise. It has been estimated that major harvest-tideion of electricity is fueled with the cancel gas and the remaining is met by the harvest-timeion through diesel propagation (UN I T E D A R A B E M I R AT E S Y E A R B O O K , 2007).On examining the major indicators, it has been articulated that Abu Dhabi is currently enjoying an desirable position and the economy is accelerating by registering its per capita income as one of the highest figures across the world. In a drive for variegation of the economy and succeedment of sustainability, the Emirate is stimulating its non anele welkins, and especially entering into export oriented businesses. On the assumption that the hydro snow area will likely to grow on the past historic trend, the Emirate aims to secure for around 65% contribution by the non embrocate sectors in the economy by the end of 2030, reversing the current picture of sectoral contribution to overall gross domestic product and economy (The Abu Dhabi Economic Vision 2030).The new and contemporary knowledge territory industries are bringing new comforts and opportunities in the exertion and boost abroad capital from global world. The principles that underpin and strengthen business strategies make investments commercially executable and generating long term profits over the long term and delivering social returns to the entire United Arab Emirates (The Abu Dhabi Economic Vision 2030). friendship SituationHistory GrowthMasdar was found and conventional in the year 2006 as an independent wholly have subsidiary of the government of Abu Dhabi and Mubadala organic evolution fraternity. The Masdar initiative is an enterprise that whole kit and caboodle with five integrated units in high society to spread its hands to the world of renewable heftiness and sustainable engineering industry. The establ ishment of Masdar City in the year 2006 had brought a common course of study for businesses and companies to thrive and flourish at the same time provided high forest living environment with the lowest trace of ecology (MasdarThe humanity of rising Strategy).With the foundation of Masdar strip down Technology Fund in 2006, Masdar Capital was effected to provide capital management expertise to the companies operating under renewable cypher and scant(p) technology. Later, after a couple of years Masdar make for of Science Technology was established in the year 2009 as a graduate train University, with special furiousness on sustainable and clean technologies. Also, an addition was made to the Masdar Capital as a DB Masdar Clean Tech Fund in the year 2009. Masdar Carbon was excessively established during this period for the management of projects pertaining to reduce the carbon emissions with the aid of energy cleverness and carbon dioxide recovery and reducing eat up o f heat. Additionally, in order to build a large portfolio of large scale renewable power energy plants globally, Masdar Power was established (MasdarThe ingenuousness of succeeding(a) Strategy).DevelopmentsThousands of visitors to the UAE are enjoying hunt out organic and eco-friendly gifts and food products available at the Friday Market at Masdar City.Masdar installs the archetypical Rapid Charger in halfway East in order to serve as a test bed for color technologies in collaboration with Mitsubushi Heavy Industries Ltd.Masdar will be served as a look at Sponsor in the World Energy Forum 2012 that is to be held in at Dubai International Convention and Exhibition Center.Masdar played a bring out role in the international gathering of the Sustainability week held in the Emirate of Abu Dhabi.Masdar was awarded as the Energy follow of the Year during the stint of first ceremony of disjunction Business Industry Awards.Masdar as a key pillar of Abu Dhabi address the Internation al Peace Institute that was kept to stress upon the significance of diversification of energy for achieving security and peace in the community (Press Releases).Strategic nonplusVision and Mission StatementEstablish the Emirate of Abu Dhabi as one of the most tenuous avenue of renewable energy development and clean technologies to attain a global benchmark for sustainable development and to make promotion in sustainable technology and renewable energy with the aid of education, RD, commercialization and adaptation (About us).Goals ObjectivesExpansion in Export Base.Encouragement of Public-Private PartnershipsSubstantial investment in education and interrogation.To provide rearing and educate workers in knowledge origind sectors.To persuade investment in areas of intellectual infrastructural gains.To contribute towards the fruit of non inunct sector look at of the Emirates economy (About us).StrategiesIn order to achieve a competitive edge in the renewable energy and techno logies industry, Masdar has designed a framework that stresses upon implementation of key strategies those are outlined beneath Corporate Level StrategyMasdar is heavily dependent on just integration for skill of long term profitability. Masdar has adopted the exploitation of the communicate structure that is allowing the echelons to replace the non-performing alliance partners with those of new partners who fails to meet the expectations and standards of Masdar. Also, the giant works closely with the supplier partners with an aim to reduce cost and increase product quality. Masdar has decisively begun the realignment of promotion to address the challenges of market and the management firmly believes that this will result in the presentation and profitability of the Masdar brand in the UAE (MasdarThe frankness of incoming Strategy).Business Level StrategyMasdar places a world-shattering wildness on the product differentiation and innovation and this is the key reason in popu larizing of its units across the Emirate of Abu Dhabi. In an effort to achieve 100% zero waste and working with renewable technologies, Masdar has adopted several business related strategies. The whirl tower above the buildings helps in unswerving the cooler upper level winds into the open-air. The designing of buildings underlies reduction in water consumption through the use up of efficient appliances, low-flow showers, smart water meters, real time monitoring for tracking water consumption of consumer and also for water harvesting and recycling (MasdarThe Reality of Future Strategy).Use of air conditioned electric powered personalized Rapid Transit Vehicles within the premises and campuses of the Masdar units. The Photovoltaic roof of the buildings, committed with the solar plant contributes about 30% of the electric load of the buildings. The structure of the units has been inspired by the theme of the regional landscape and thereby a series of courtyard and street spaces ha ve been building within the city and the campus. These strategies encompass the overall positioning and popularity of the Masdar in the market (MasdarThe Reality of Future Strategy).Functional Level StrategiesThe integrated supply chain and sustainable procurance is well supported through a stringent process of assessment along with a brief description about supplier disturb study. The assessment takes place across 15 criterions established to achieve sustainability that includes energy and water saving, minimization of waste use of bio-establish materials and recycled packaging. The operations are well carried out with an aim to reduce carbon footprint eventually result in lower operational be. The approach of Sandbag building is utilisation for logistics, staff accommodation and office structures for achieving thermal efficiency (MasdarThe Reality of Future Strategy).PolicyMasdar aims at achieving the following objectives through its policies Expansion of the export base and in turn generating increased revenue for the emirate.Boosting and encouraging entrepreneurship in the cliquish -sector as regards the quick industrial setup.Making investments in the schoolman growth so as to stimulate the sense of innovation among the future propagations as well as developing and shaping the minds of the people working in this sector presently.Focusing on the importance of workers in the knowledge based sectors by exercising employee retention, on job training, and providing attractive incentives for the workers in this sector. bring out the importance of Intellectual Property in the emirate by encouraging substantial investment for achieving gains in this particular field.Providing growth and development opportunities in the non- petroleum colour sector of the emirates economy and also removing the effect of fluctuations in oil prices on the economy. The decoupling of this factor is of paramount importance as it would allow for achieving economic perceptual constancy. (About us)Current ProblemsNo Availability of Bank Finance for Property in UAE.No chafe of Abu Dhabis Metro to Masdar.Corporate GovernanceBoard of DirectorsMasdar is chaired by Al Sayegh who has endue in exceptional efforts towards the development of Abu Dhabi Future Energy Company and that is Masdar. all told through his career, he was worked towards several environmental initiatives. Sultan Al Jaber is the school principal executive officer and Managing Director of the company and with whose efforts Abu Dhabis pioneering renewable energy initiative launched in the year 2006. Other board members of the company are HE Abdulla Nasser Al Suwaidi who is the chief executive officer of ADNOC, Carlos Obeid, the chief financial officer of the Mubadala Development Company and Waleed Al Muhairi, the chief operating officer of Mubadala Development Company (Board Members).Capture.PNG(MasdarThe Reality of Future Strategy)External Environment AnalysisPEST AnalysisPolitico-Legal F actors ( accommodate Rating)The Middle East has witnessed noteworthy growth and development over the past years which have mainly been brought about by the tremendous contribution of the oil sector in the respective regions. This has resulted in the development of an industrially potent hub which has attracted various multinational corporations, diplomatic relations and investments made by the government in the various initiatives. (O). One of the most crucial challenges facing this region is the existence of political revolution in the Middle eastern countries which poses a threat to the economic prosperity and future prospects of this region. There is a significant curtain raising that these tilts can affect the outcomes of the countries in a negative manner, thereby affecting the entire business scenario in these regions.The touch of the Emiratization policy may be seen in the Labor law which requires private sector organizations to employ 20% of their work force from the domestic population compulsorily. This means that any private sector organization which fails to adhere to the recruitment regulations would be criminalise from undertaking any further recruitment of additional foreign employees in their organization (T).Economic Factors (Moderate Rating)The economies of the Middle East have witnessed a significant rise in the past decades wherein they have been characterized with adequate economic stability and viable growth rates which are inclusive of their increased gross domestic product and Fiscal Balance. The UAE and other Middle easterly regions have benefited from the rising oil prices which have led to increased revenue generation for these economies, especially foreign exchange revenue and this has been the key reason behind its immense development as witnessed up till now. Another factor which may be attributed to the sustained growth of the Middle Eastern countries have been the outsourcing of business from regions much(prenominal)(pr enominal) as China and India which offer services at relatively less(prenominal) costs.Due to high dependence on the oil industry, the Middle Eastern Economies have been subjected to vulnerability owing to the frequent fluctuations world witnessed in the prices of oil and gas commodities (T). One of the most relevant examples of this condition may be witnessed in the economic growth statistics of Abu Dhabi which was reported to be 2.9% owing to the impact of depreciated oil prices evident on a global scale. This rating was significantly lower in comparison with the ratings of the past years. However the year 2010-2011 witnessed the recovery of the economy from the effects of the price depreciations with the new conditions characterized by price stabilizations of oil commodities. In light of this stabilization,, the primary driving force behind the regional gross domestic product was the expenditure and investment made by the government for enhancing its existing sectors.UAE had st arted focusing its efforts towards the development of its non-oil sectors in order to reduce the excessive dependency from its oil sector. The outcome of these efforts was the booming of the real estate sector and the constructions industry which received significant projects such(prenominal) as Abu Dhabi Ferrari Theme Park, Burj-al-Arab, Emirates Palace and the exceedingly renowned Palm Jumeriah Islands. This led to the growth and development of the Ecological infrastructure development companies in the UAE due to the positive outcomes provided by the constructions industry in the region (O).The Middle Eastern governments have given due emphasis on the infrastructural developments in their respective regions. Various global events that have occurred in the region have been witnessed with the advent of investments for the development of the infrastructure in order to ensure its compliance with the global standards in terms of infrastructural capabilities. An example of this may be seen in the hosting of the Asian Games and the forthcoming Football World cupful in 2022 which would be hosted in Qatar. In response to the incidence of these events, the Katari government has made investments of values up to billions of dollars for initiating the structural developments. In charge with the need to adhere to green initiatives as promoted by the Middle Eastern countries, Masdar has shifted its efforts towards the development of such resources that aim at conserving energy and ensuring maximum utilisation of resource while reducing negative effects on the environment. With its initiatives such as Masdar Power and Masdar city, the public organization is trying to establish a sustainable infrastructure in the UAE (O).Socio-cultural ( misfortunate Rating)UAE is a predominant Muslim estate and has not been significantly affected by the existence of various foreign nationals in the country. The development of the nation is the most significant aspect macrocosm given importance by the government currently and in light of the need to maximize the optimal utilization of the resources, the people are beingness encouraged to use recyclable and environmental friendly products by means of which the excessive exploitation of resources may be avoided (O).The adherence to green initiatives and practices also relieves significant dependency from the traditional fuel sources for the accomplishment of various tasks. In terms of the costs saved from the energy keep by the bankers acceptance of green practices, the value of considerable amount which can be invested in other highly prospective and viable areas (O).The adherence of green practices also provides significant benefits to the health of the people wherein the use of environment friendly products eliminates the possibility of the release of contaminants into the atmosphere or the release of pollutants into the water or ground which could eventually affect the fertility of the resources and in turn affecting the lives of the people. so the efforts of Masdar towards the development of sustainable and green technologies are not only in accordance with the interests of the people but are also satisfying a social cause. Such conditions also showcase a commercially viable opportunity for Masdar (O).Technological (Moderate Rating)The UAE is known for its advanced technological infrastructure and the bearing of high level technical support structures by means of which it has been able to maintain the highest efficiency levels on a global scale. It is also assign with having one of the most advanced ICT network and infrastructure in the UAE which has made the sustenance of various organizations in its economy. The presence of such facilities has enabled the research and development of renewable and sustainable sources which is highly effective in ensuring that the activities of Masdar are achieved as per the expectations. (O)The presence of the internet has enabled a larger populat ion to avail the information about the various services and products offered by Masdar and the people can also stay updated with the recent developments being make by the organization. In terms of the provision of electricity, the people can track their consumption on a periodic basis and can see the extent to which the energy has been conserved by them. Such possibilities hold tremendous opportunities for Masdar (O).The frequent advancements being witnessed in the field of technological developments have resulted in the risk being generated for the business organizations as it is difficult to adapt to these changes. If frequent adaptation to these changes would be done then the effectiveness of the system would be compromised which would eventually have an impact on the performance of the organization (T).Five Forces Model Diagram affright of New Entrants (Rating Low)There is minimal threat from new entrants as Masdar being a UAE government initiative, it has been provided with al l the infallible resources for ensuring the research and development of sustainable technologies and the possibility of new entrants in this field are highly unconvincing (O).Bargaining Power of Buyers (Rating low)In light of the recent recession and economic inflation, the presence of sustainable technologies would not only provide the benefits of reduced costs of operations but would also help to maximize the utilization of the resources, thereby reducing investments made in the acquisition of additional resources. This is a prefer outcome for the people and hence the negociate power of buyers is low. Even in the case of Masdar University, the institution provides exclusive courses aimed at the conduction of research in the field of renewable energy development. This also results in the lowering of the buyers bargaining power (O).Threat of Substitute Products or Services (Rating superior)Other countries are also working towards the achievement of renewable and sustainable tec hnologies in property with the need to conserve the environment. This has led to the existence of the threat of substitutes which are not only cheap in comparison to the products or services being provided by Masdar but also affect the overall market share held by the organization (T).Bargaining power of Suppliers (Rating Moderate)The supply chain for Masdar is inclusive of credible suppliers that have a strong base for providing the technical as well as non technical resources for the development and completion of the various initiatives undertaken by the government (O). However the field of sustainable business technologies requires specialized resources to be provided for the physical development of the technologies and tools and this aspect provides a greater bargaining power to the suppliers (T).Rivalry among competing firms (Rating Moderately High)In terms of the presence of competitors for energy related services, Masdar is faced with various domestic firms. This competition is also evident in the field of education where institutes like Zayed University, ADU, etc offer professional courses (T). Foreign academic institutions also offer significant opportunities for students to partake their courses and this poses as a significant threat for the organization (T). However the presence of highly specialized courses aimed at sustainable technologies could prove as an incentive to students who wish to undertake training in an upcoming field of research and development (O).Five Forces AnalysisFive Force Analysis Industry EnvironmentRatingComments result of Influence from RivalsLowGovernment SubsidyBargaining Power of CustomersLowOwing to the presence of single entity providing highest quality of life.Bargaining Power of SuppliersModerateAs there is a switching cost associated.Threat from SubstitutesHighOil, gas and nuclearSummary of External Factors EFAS MatrixPEST Opportunities encumbranceRatingWeighted ScoreCommentsScope for Expansion in Abu Dhabi (High) 0.54.20Increasing Profile of Abu Dhabi and 2010 2020 is considered as Abu Dhabis decade.Openings to exploit new technologies (Moderate)0.153.50.525UAE takes a female genital organ on International Atomic Energy Agency and climatic changePulling of market share from rivals (Low)0.073.80.266Based on clean and green technologyPEST ThreatsWeightRatingWeighted ScoreCommentsenvironmental Dependency (High)0.184.20.756Highly depend upon solar energy and climate change.Market Growth (Moderate)0.022.50.05Abu Dhabi has invested a great deal in reinventing itself, with its plans to grow its GDP to $416 billion.Decline of Demand (Low)0.032.30.069Increasing awareness of public action and dread towards green initiatives.Threat from Substitutes (High)0.542.0Huge investment in infrastructure projects.Total1.03.681Internal Environment AnalysisCorporate StructureMasdar is a public sector corporate entity established in Abu Dhabi, UAE for working towards the development in renewable and alternative energy sources and initiating innovations in sustainable technology. Since its inception in 2006, Masdar has diversified into 5 integrated and functional units which are inclusive of a nonprofit research institute encouraging the conduction of research on alternative energy and sustainable technology. It is a wholly owned subsidiary of Mubadala Development Company, formed by the Government of Abu Dhabi. Masdar is one of the excellent global centers in terms of renewable energy and clean technology. The organization aims to extend into the future of UAEs current leadership in the energy sector by integrating the following key factorsResearchDevelopment first appearance with investmentSustainable productionDeploymentExportMasdar operates under the flagship of Mubadala Development Company with Ahmed Al Sayegh as the Chairman of the organization. This company is a heroicct chiding of the vision of UAEs establishment father, Sheikh Zayed bin Sultan Al Nahyan and has carried on his ded ication towards conservation and sustainable development of the region. The Emirati government has committed a sum of USD 15 Billion to the Masdar Project wherein it would fund its initiatives. This has proven to be one of the most significant strengths of the company as it has a sedate supply of funds for its ventures (S).Another strength of the company may be attributed to the presence of a electrostatic management which may be attributed to the stable Emirati government and due to this the governing body and the key members are not replaced frequently (S).The strategic model for this business is fundamentally entrepreneurial in nature wherein the leadership of its chairman and board of directors are crucial for providing the required directives to the 5 diversified units of the organization (W). Since its inception, it has shown significant adherence to the vision of the instauration father as well as to the fundamental objectives of UAE (S).However for each independent entity of the organization, there is a separate managerial body present to oversee the activities of the unit and ensuring that they are in compliance with the strategic aims of the elicit organization (S)Corporate Culture. Finding a roadmap to sustainability is the core value of the long term vision of Masdar and the sustainability framework is designed to integrate economic and social and environmental considerations into Masdars corporate culture and strategy. All of the initiatives and efforts of the organization are dedicated to the achievement of sustainability in the UAE by means of which the vision of the founding father of the nation may be fulfilled in an effective manner (S). The diversified units enable the organization to effectively focus its efforts and resources in the development of specific aspects which is highly beneficial in implementing and devising progressive measures to adopt sustainable practices and tools (S).Corporate ResourcesMarketingMasdar is the premier o rganization in the UAE which is completely dedicated towards the development, research and implementation of sustainable technologies (S). By promoting itself as a provider of sustainable technology, it has appealed to the people of the UAE who have begun focusing on the implementation and adoption of green practices so as to contribute towards bionomic sustenance and environmental protection (S). In the process of developing such sustainable tools, the organization has ensured the maintenance of high quality levels which has resulted in the achievement of effective and timely results (S).Masdar does not have a specific product offering in the market it does offer educational programs, green infrastructures and project developments in accordance with sustainable technologies. In this regard, the following marketing immingle may be applicable for the organizationProduct / Service (High Rating)Masdar has been confused in various sustainable developments such as the development of Ma sdar city which is one of the first cities to be made with an aim of achieving 0% carbon emission. Another service of Masdar is the provision of education in the field of sustainable research at a no-profit basis. It is also involved in the generation of investment in the various sectors associated with sustainable development.Price (Rating High)The main aim of Masdar is to provide sustainable technologies and support structures by eliminating the presence of excessive costs associated with the services (S). The example of Masdar institute clearly highlights the aim of the company as it is providing the services to the people at no profits. Masdar being a government initiative of the Mubadala Development Company does not have a dire need for generating profits as the economy possesses adequate financial resources due to the efficiency of its oil sectors. Hence the pricing of the services / products of Masdar are highly convenient to the consumers (S).Place (Moderate Rating)The headq uarters of Masdar is in Abu Dhabi with other units of the organization locate in Abu Dhabi as well. Masdar has entered into various collaborations and strategic alliances with global entities and this has enabled it to extend its travel by to global consumers. People on a global scale are now being made aware of the efforts of M