Running head: MARKET AUDIT PLAN Version MSIE LIA EIS ONE EREFLANCE LIMITEDMARKET AUDIT PLAN 2 Table of ContentsMARKET AUDIT PLAN 3 Diner E — Peiew Version iveSummary i wy Emaar ba real exis oinpaity| Wie in eed Arab Emirates. The company operates as a joint stock public company listed on the Dubai stock exchange. Emaar has international operations in property development and management. It operates six business Segments with activities conducted by 60 subsidiaries. The global presence of the company spreads in 36 countries in Middle East, Asia, North Africa, Europe and United States (Bateman & Majdalawieh, 2009). The scale of operations undertaken by the company has been the main source of me es rene ecomn-e conn fms pa the large real etate developers in pha ean with ft on peal ee elng managed ‘or developed by the management. This paper will conduct a market audit of the company (Bateman & Majdalawieh, 2009). Emaar Properties was formed in 1997 by the chair Mohamed Alabbar. Being one of the leading developers in the region, it has diversified the portfolio to cover both the commercial and rel poe at 2013). The coripaity has diversified ito the development so muse ma atte ‘iy ! CS When the company was listed, the founding shareholders owned 24.3% in 1997. In conclusion of the public offer, the company raised enough capital to start the investments in the real estateMARKET AUDIT PLAN 4 projects that have come to change the outlook of the entire landscape of Dubai (Bateman & a Uapei : EURAIL One of the most ambitious projects that the company embarked on after its listing was the Majdalawieh, 2009), i tae ie ] i Introduction construction of the Dubai Marina. The company announced the plans to start the development in 1998. The success and unique management approach has been the primary contributors to the developmen and growth of the company. For instance, after the company was listed, it became the first proviy “en f sitar ont Tp I ee the entire management of the property companies was highly cen ies trading wie, 2009) Th cha nied hi in sratepy wih the primary aim of the paradigm shift being the creation of a unique value proposition that would locally (Bateman & Maj lead to the investment and creation of the capital base that it accessed.MARKET AUDIT PLAN 5 In vol roy ern he w the construction sector that had heco1 prior to the commencement of the construction projects was meant for the establishment of the company. It included creation of the right basis on which the company would Iaunch its developmen plans. The period also allowed it to create political goodwill in the markets. TheMARKET AUDIT PLAN 6 first project that the company engaged in involved the construction of the three towers inthe aparment tower complex (Lonsway, 2013). The project was completed as. joint venture — PP te rth ] performance ok naar i the project served as the bas i come to enjoy over the years. It is also tale Pe . ‘success sale val a lhe Emaar Company in the construction industry. In 2003, the company unveiled the plans to develop the signature downtown Dubai. The move led to the respect and recognition of the force of the company in the property development Sector. I also Ld othe apprecgtion of the potential that the company willed as far as the i propesty deme ne pig ann H ot construction of two-landmark establishment sin the eT (Bateman py lawieh, 2009). On li aki Dub mal Te wo pon ae the largest in their respective fields, Burj Khalifa is the allest building in the world. The Dubai Mall is also the largest mall in the world. The magnitude of the projects has led to the increments in value of the Emaar Company and the recognition of the company as the force to contend with in the property development sector. Cc a7 rel A een a For ingance; the Dubai mall was major succes jas officially opened. Macally opene REEL, was able to open up the esidblishirien 0 the tenants and the business was promising (Bateman & Majdalawieh, 2009). The same applies to the Burj Khalifa. The success of the company’s investments can be linked to the uniqueness and the focus on value. The Country's specificMARKET AUDIT PLAN 7 factors also led to the impeccable performance of the establishments even in the wake of the mere at re 0 ec ar 7 { 1 nea SAT aS ma be operational. One of the moet able pepents j faite, fils ee re ‘offpame of subsidiaries in the US. The subsidiary had been affected by the crash of the property market in the USA. The factor led to the blotting of the otherwise impeccable performance of the Emaar Company in the real estate sector since the inception (Lonsway, 2013). It was ako indicative of the other aspects that were in play as far as the growth of the real estate market was concerned. The Nations ‘oie ctor sch a he ren of te tert arkts ue wag ao troup the limelight. ui Uo} a | \" te ALI Another issue tnt in eine raat was the filing for an unlawful imprisonment and torture of the workers that stood up to the company for the violation of the rights of the foreign workers. The issue also brought out the labor relations of the company. It indicated that the company was not mindful of the rights of the employees. It meant that the company was not fit to operate inthe international market since the labor relations inthe mjorgy ofthe developed qgqmtres were dizer yo the ones that bp rmnagersent was scaumoned hel mie in. 21, ae wwe spi= indeuonofte tet social sits Ha Have bata pein ne Soy FREELANCE LIRAITAD 1m attaining success.MARKET AUDIT PLAN 8 PESTLE analysis Introduction) — soon j) oO. _. “Prey nas, Unies Tl aa technologitial, legal nd en Jiroriiienti factors that are used to assess the performance of a company and judge its efficacy in the most appropriate manner. This the political, economic, ection will cover the macro economic factors that affect Emaar group and how they can be improved to increase the total value accrued to the company (Hvidt, 2009). Political Like the iy porains in ite region oi will that ia used to peopel thems wo the neds level The edkupany wae: Sati later changed toa public'jalh sock! ec ila ti Ailsa baligon ered as an important stakeholder in the developments and the outcomes of the company. The company has been able to attain the high levels of success due to the political goodwill that it has been enjoying over the years. The majority of the projects that it has undertaken in the region have been successful due fe Sars: _ i Were deplete Gil) wut Wiel witout a natural resource. to the oll eserves. Once the to the political goodwill. The tit of D producing cMllarflo a touris ‘Therefore, the government embarked on a plan to increase the level of construction activities that take place. It also led to the adoption of the entire constriction and transformation plan as envisioned by the leadership (Bateman & Majdalawieh, 2009). In order to attain the requiredMARKET AUDIT PLAN 9 transition from an oil producing country to atourist destination, the country identified the means ‘of ensuring that there was high dagetoenes i also sealed the ways: ote the emtire business pour rte region 1 fea orca comnain wi eit nm Py rs ‘ fi a the cout ‘one of the means of ensurin; country had at tained the Fequired levels of developmen. h A | [ii also ensured that the evel fe Vp cl BAe ‘would b ‘sul Pe to eae the demands of the people. ‘The political manifesto has been the guiding principle as far as the interactions of the government and the investment companies in the region is concerned. Any company that increases the value ofthe country and enbances the attainment ofthe dream is welcome. vt as ‘Therefore, Fre ba se i foal. fer bo + + i such as toy all Emaar. : ol = PRIEELAINICIE Lite Ele ‘The company also enjoys significa political goodwill in the regions that it operates. The company has been able to leverage on the investment might that it has to create the entire business model (Hvidt, 2009). It has been capable of creating goodwill with the leaders in the ‘countries that it operates in due to the focus on quality delivery in the entire operations. The Economic ‘The economic conditions that are prevalent in the construction and propemty market have been working in both the favor and disfavor of the company depending on the market. IntheMARKET AUDIT PLAN 10 domestic market, the company has been able to gain since the region is being viewed as one of the leading investment destinations. The county hasbeen poised on the grpaion ofthe capecty ofthe ene ee mach ca se te te me “eo eee i dann the sepia, Conseque mic market in the region is more y he He appealing than in the other places. ‘The economic environment in the international market is not as appealing with the significant part of the market having attained maturity. It means that the company is in competition with the more established companies. Being a foreign company, there is more difficulty as fra the competition wih the oer companies is concemed, In order fr the converts a sews te A ie) ish ofthe stock market in 2009 affectéd the markets whereby the company ead Effects of the Nes ls stock market crash mani in the collapse he toe Le ‘dea biting the filing for ip bankruptey. The market dynamics that are in play in the foreign markets are not the same with the ones that are factored in the domestic markets. The control of the economics is beyond the company when it comes to the international operations. It is the main explanation for the Aifference in performance exhibited by the company inthe international and domestic markets. Version Tecremer ene NCE Ti peat note most espoused values for the company is the provision of quality and honesty. The integrity that the company follows is also a major source of the success. The company’s principles are based ‘on the Islamic teachings. Islam espouses the need of fairness. It also ensures that there is notMARKET AUDIT PLAN u hharam in the dealings. Due to this factor, the company has been capable of attaining high chances of suecess. The good name ofthe business has bat preva int the akan whereby the majority of tid tnvausla a wing cms ine weit . Trees ti tan oer alpha ea a fon of the popular El Sle Le EIS: cukure, Another aspect that has Jed to the attainment of success by the company has been the focus on the people aspect. The company creates business plans that are based on the creation of the highest value possible for the people. I seeks to make what is impossible possible. The customer centric mature of the operations hasbeen major force behind the succes ofthe company. nhs PRYIAY | sate = es demands and requirements ofthe people. Meta arate approach adopied company AIAICSIE LIRA ELS Bal focuses on the respect of the NE a ‘Technological ‘The company can attribute the significant part of its success on the creation and adoption of the best technology in the construction industry. The company has always focused on the development of the innovat hu 1 that can sein tore phate building used the innovation pf iene ing the foun a on ogi noe to ascertain that the structure has the structural integrity. It was a revolution since the conventional approach to the construction ent the design of the construction and the foundation. There conventional approach does not allow one to add more floorsMARKET AUDIT PLAN 2 ‘The company is also a major innovator with the majority of the innovations developed in- house at the company’s research and development. However, it also the best engineers nyse gd development Howse, kao np tebe eg sed designs tooo Up ree tionary designs. The|focus of i yon new oe im .d to the attainment of success for the company since the open- and cutting edge innovations has BIEL s ier | mindedness of the management towards techno ‘ahaa the success. Legal ‘The company has faced numerous legal hurdles since its inception. The legal environment operates in the domestic market that is highly unregulated. It means that the amore econ hhas more ffechand a8 far a labor relations are concerned. However, enema opti ie a io vane de tommy ee ET Re Be meee supposed torture after he vouched for the rights of the employees. The case did not go to trial since the plaintiff withdrew it eventually. However, the case is indicative of the divide in terms of understanding of the repercussions of poor labor relations. The legal environment has wide variations in terms of applications. However, the company is still coming into terms with the ‘There are various environmental requirements that regulate the operations of the business. For instance, the company has to comply with the international regulations in terms of the building environment and the sustainability of the building. Massive reclamation of land from the sea toMARKET AUDIT PLAN 13 build some of the innovative establishments has been deemed as a major threat to the aquatic le, Therefore the company has o deal with the potential lawsuits that aE: be filed to deal with the issue. ‘Te lonpany Bu aaa with ast tons nets. Oe tite innovations is es a tl He environmental sustaina sate fitted with solar construction relies on green ie scurenent frida es, panels to maximize on green energy.Task 3 Cerca CSI LAI LS ONE FREELANCE LIMITEDMARKET AUDIT PLAN 1s The company has focused on the creation of the business model that meets the needs of the entire Population he hia responsibilty concer ive wit the undertaking phe busines procemes tht lel =i i. Te comny ii sia itt ii ot comuption neake it has been effectiv. 4 i company is also involved in numerous ahi reating the relevant nu sii lalla “I he feg ion hence it has attained the lity. philanthropic integrity. The company adheres to the laws in the nation and the regions where it has operations. The adherence to the environmental law is also one of the ethical responsibilities attained by the company. It has economic responsibility to the provision of the jobs and opportunities for thei improvement of the evomomy, The company has managed to cater for the needs of the deonomy by by esi t 8 papi ing jobs Be rsa elopment of the oa and the regions nal aa am Sie E é EELAICSIE Lie Ee Task 5 swor ‘The company has a different combination of strengths and weaknesses that arise from the internal operations. It also has various opportunities int ttseatst0 fs operations tat are fom i a sview Versi “The main source of 2th tr in corp) a el upp be i Rom he ‘government. It was mainly developed by the government players who still fund it. The goodwill enables the company to have an easy time when developing the properties in the country, TheMARKET AUDIT PLAN 16 other strength is the leadership. The leaders in the company have the focus on the development ‘of the right business model based.on success. ale et ne 3 diversified imto other areas related o the property development. Therefore, the failure in the unilateral focused area threatens the survival. Opportunities ‘The main opportunities for the company present themselves in the form of investments in the emerging markets, The company stands to gain fom the investment in parts of the work i such as North ‘| ia! : in markets in we debae ir omrainir a WEIE Leh ELS ‘Threats ‘The unilateral focus and the volatility of the market has led to the losses of some of the businesses. The company lost its investments in the United States due to the unviability of the property market. It is also under stiff competition from the more established companies that ‘operate in the international markets. -~-§..-44 Th, mm eng had fal stain sues due) a Sit F Mog | campaigns flac to comand ewera tr witty he ny to ELM ES capitalize on the high capital investment ie és Government and the innovations has led tothe attainment of success by the company. The company has also been able to attain the high rate of ‘success due to the value proposition of providing the people with something that is more and better. The company relies on the creation of the buildings and properties that surpass the marketMARKET AUDIT PLAN 7 norm, The aspect has led to the desirability ofthe company compared to the competitors. However, the company is sill grappling with Hh ane as the instability ofthe market and the homing orem a ie ba ate test me ad +t} /~ pital ‘operational areas. LAI LS Competitors Name profitability Sie “Marketing capabilities ‘Saudi Binladin Tower ‘Smaller Tair Group Limited Majid AlFuttaim | lower Same good Group OF Companies & fee Nakheel (PJ SC)" | wer” a Boot } En SU Lo Task6 HIE LIAN ELS ‘The company positions it’s self in such a way that it is associated with the big and trend setting innovations in the construction industry. The company has placed its brand in the market such that the mention of the company leads to the immediate perception of the development of better and more advanced buildings with a touch of futuristic design. The market perceives the ‘company as ingenteco ne ation jn the constructiyyrand property markets. The mention of te company tei a oj cepa bse completed in the region. pt ¢ = pany. eat inter of quay and innovation. The company has a strong brand association.MARKET AUDIT PLAN Perceptual map Emaarproperties alfordable hig quality low quality Gy® expershe ; GtiGs val aw Conclusion FREELANCE LIMIT In conclusion, Emaar Properties has been largely influenced by the macroeconomic factors. Some of the factors have contributed to the growth and development of the company. Others have led to the reduced growth in the market. The political environment has beenMARKET AUDIT PLAN 19 favorable for the development of the company. The economic environment has slowed down in the imeratinnal markets However, the domestic market has been able to weather the effects of -— — 1 the global fianle cris the company in the UAE as w erie success of Westinents in terms ape Vs of design and equipment bse led to the'autainméat of ic a oe However, Enmar Properties has been affected by the legal actions taken against it for violation of abor rights.MARKET AUDIT PLAN 20 References Bateman, Rd: Majtalowie, My(2005). Megapenjts pd sak manage: Eran Popes UITCS, ahs Si | ! Ii it « AL | ii) | Hvidt, ssc The Dubai model. (8.11 [51 ale is HLS Lonsway, B. (2013). Making Leisure Work. Hoboken: Taylor and Francis. : faa Cars Bo = FREELANCE LIKAITES