Recent orders
United Arab Emirates is on the eve of recovering from the world economic recession
Table of Contents
TOC o “1-3” h z u HYPERLINK l “_Toc404606533” The Company PAGEREF _Toc404606533 h 2
HYPERLINK l “_Toc404606534” Brand PAGEREF _Toc404606534 h 2
HYPERLINK l “_Toc404606535” Macro-Environment PAGEREF _Toc404606535 h 3
HYPERLINK l “_Toc404606536” Political Factors PAGEREF _Toc404606536 h 3
HYPERLINK l “_Toc404606537” Economic Factors PAGEREF _Toc404606537 h 3
HYPERLINK l “_Toc404606538” Social Factors PAGEREF _Toc404606538 h 3
HYPERLINK l “_Toc404606539” Technological Factors PAGEREF _Toc404606539 h 4
HYPERLINK l “_Toc404606540” Legal Factors PAGEREF _Toc404606540 h 4
HYPERLINK l “_Toc404606541” Marketing Strategy PAGEREF _Toc404606541 h 4
HYPERLINK l “_Toc404606542” Target market PAGEREF _Toc404606542 h 4
HYPERLINK l “_Toc404606543” Brand Positioning PAGEREF _Toc404606543 h 5
HYPERLINK l “_Toc404606544” Marketing Mix PAGEREF _Toc404606544 h 6
HYPERLINK l “_Toc404606545” Product: PAGEREF _Toc404606545 h 6
HYPERLINK l “_Toc404606546” Promotion: PAGEREF _Toc404606546 h 6
HYPERLINK l “_Toc404606547” Place: PAGEREF _Toc404606547 h 6
HYPERLINK l “_Toc404606548” Price PAGEREF _Toc404606548 h 7
HYPERLINK l “_Toc404606549” Competitors PAGEREF _Toc404606549 h 7
HYPERLINK l “_Toc404606550” Consumer Characteristics PAGEREF _Toc404606550 h 8
HYPERLINK l “_Toc404606551” Buying Decision Behavior PAGEREF _Toc404606551 h 8
HYPERLINK l “_Toc404606552” Complex buying behaviour PAGEREF _Toc404606552 h 8
HYPERLINK l “_Toc404606553” The Buying process PAGEREF _Toc404606553 h 8
HYPERLINK l “_Toc404606554” Conclusion PAGEREF _Toc404606554 h 9
HYPERLINK l “_Toc404606555” References PAGEREF _Toc404606555 h 10
The CompanyThe company started in 1986. Coca-Cola is a carbonated soda pop sold in stores, restaurants, and offering gear around the world. The Coca-Cola Company guarantees that the beverage is sold in more than 200 nations. It is delivered by The Coca-Cola Company in Atlanta, Georgia, and is frequently alluded to just as Coke or as cola. The Coca-Cola Company is the world’s biggest beverage organization, invigorating customers with more than 450 crisp and still brands. Alongside Coca-Cola, known as the world’s most profitable brand, the Company’s gathering incorporates 12 other billion dollar brands, including Diet Coke, Fanta, Sprite, Coca-Cola Zero, and vitamin water, PowerAde, Minute Maid and Georgia Coffee. All through the world’s biggest drink conveyance framework, customers in more than 200 nations appreciate the Company’s refreshments at a rate of 1.5 billion servings a day. With a perpetual guarantee to building manageable groups, our Company is centered on activities that protect the surroundings, save assets and enhance the economic development of the groups where we work (Foster, 2008).
Brand
The Coca-Cola Company has room schedule-wise to present other cola drinks under the Coke brand name. The most customary of these is Diet Coke, with others and also Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and unique versions with lemon, lime or espresso. In response to purchaser assertion on a more common item, the organization is at present eliminating E211, or sodium benzoate, the hostile added substance utilized as a part of Diet Coke and joined to DNA harm in yeast cells and hyperactivity in kids. The organization has realized that it plans to take away E211 from its different items, including Sprite and Oasis, when a sensible substitute is found (Nestle, 2000).
Macro-Environment
Political FactorsGovernment assumes a part inside the operation of assembling this item in term of regulation. What’s more on the off chance that they don’t take after any of the single law then there are potential fine situated by the Government on organization. So thus Non-fermented drinks fall inside the sustenance class under the FDA (Food and Drug Administration) Political component likewise influence if there is change in the non-alcoholic business environment. These incorporate, without impediment, aggressive item and estimating weights and their capacity to increase or keep up offer of offers in the worldwide market as an issue of activity by contenders (Nestle, 2000).
Economic FactorsUnited Arab Emirates is on the eve of recovering from the world economic recession. Customers are presently continuing their typical propensities, setting off to the shopping centers, auto shopping, and consuming out at restaurants. On the other hand, a lot of people are even now taking care of their cash carefully. They accept that with lower swelling still to come, customers will recoup their certainty through the following year.
Social Factors
Numerous UAE natives are rehearsing healthier ways of life. This has influenced the non-fermented drink industry in that a lot of people are changing to filtered water and eating methodology colas rather than lager and other hard refreshments (Pitelis, & Teece, 2010).). The requirement for filtered water and other more advantageous and sound items are in critical in the normal everyday life. Besides consistently Coca Cola gives 1% of their benefits to philanthropy in Spain and it makes a neighborly organization picture.
Technological Factors
The organization advancement relies on upon the engineering they utilize and it help the organization to bring the level of the organization to the more than the normal. The Coca-Cola group chose it was time to get more execution from the business-discriminating SAP applications, while driving down equipment and programming expenses. As opposed to redesigning Oracle, the group chose to present IBM Db2. “By deciding to actualize Db2 pressure immediately, we have lessened the database estimate by around 40 for every penny. This provides for us speedier reinforcement and decreased stockpiling expenses, and makes the SAP specialized redesigns simpler and snappier.” Andrew Juarez, SAP Lead Basis, Coca-Cola Bottling Company Consolidated.
Legal Factors
Lawful angle concentrates on the impact of the national and world enactment. The Coca Cola Company gets all the rights material in the way of their business and each innovations and item improvements are continually going into the protected procedure (Pitelis, & Teece, 2010).).
Marketing StrategyTarget marketAs a rule, in spite of the fact that the organization concentrate on entire populace on the planet, adolescent era is the target showcased of the organization and they additionally need to demonstrate their items with loaded with youth and vitality to their customers. Schuiling & Kapferer (2004) expresses that Coca-Cola are cool and true, and , separate Coke from its rivals while Schuiling & Kapferer (2004) contends “pepsi being adolescent, energizing and hip and Dr pepper being nonconforming, special and fun”. Coca-Cola Company needed to painstakingly think about discharging as an eating methodology product offering because of apprehensions of debilitating the brand. Some piece of the choice procedure depended on the creation of aspartame, which is viewed as an issue sweetener to saccharine with less reactions. Coca-Cola has been utilizing its showcasing blend to demonstrate their prosperity business. Business fragments help the organization to enhance their items and administrations, recognizing what their customers require and advance new divisions. They advertises the items offering into distinctive or more than one business (e.g. Eating regimen coke) (Schuiling & Kapferer (2004)). To realize what their customers need, Coca-Cola utilizes the buyer division criteria and business sector into diverse gatherings: behavioral, psychographic and profile.
Brand Positioning
The situating methodology utilized by Coca-Cola has permitted them to paint a suitable picture of themselves in the psyche of their customers as the main “True One”. They have planned their situating methodology to draw a successful picture of their items offered for their client. When they had chosen the business fragment they needed to target and contend in, they unmistakably created a picture of that focused on business portion and appropriately characterized their items as a component of their situating method. Through their positions technique they underlined on their different and exceptional attributes with connection to their focused brands pushing on their singularity. They related their item with the client’s qualities and learning highlighting their profits. Their situating strategy likewise included examination of Coca-Cola’s items with those of their opponents, in the same way as Pepsi, so that drive their customers to accept that Coca-Cola’s items had higher quality and standard (Schuiling & Kapferer (2004)).
Marketing MixProduct:). It’s marking is evident and effortlessly perceived. Without a doubt, no drink organization contrasts with Coca Cola’s social ubiquity status. Some individuals purchase coke in view of its taste, as well as in light of the fact that it is generally acknowledged and they have a feeling that they are a piece of something so huge and binding together. Particularly, most youngsters anticipate an alternate sense which cool and articulation toward oneself. Coke is a way of life that they need and need. In this way, they pick Coca Cola. Individuals have very nearly boundless needs however constrained assets. In this manner, they need to pick items that give the most esteem and fulfillment for their cash. At the point when supported by buying force, needs get to be requests. Since the individuals’ need and requirement for Coca Cola, need get to be request (Schuiling & Kapferer, 2004
Promotion:Coca Cola Company focuses on promoting so as to make customers mindful of items. Broad promoting is utilizing on radio, TV and bulletins, and also sponsorships. Coca Cola supports numerous game exercises, which provides for them more mindfulness and prominence.
Place:The accessibility of Coca Cola’s items is second to none. Coca Cola’s brands can be discovered practically all over where buyers require a beverage, for example, in fast food organizations discovered everywhere throughout the world (e.g. Mcdonalds), in all general stores, accommodation stores, open houses, restaurants, bars and night clubs, sports stadiums, aerial transports basically all around.
PriceThe pricing strategy of Coca Cola is focused around the estimating progress with respect to its rivals and in addition the estimation of its items. In UAE, as is valid in the universal market, the fiercest contender of Coca Cola is Pepsi so evaluating is in a manner affected by the transaction of these rivals in a given business sector. Diverse taste item embrace the same value, that made customers purchase new item, however don’t think excessively. Since Pepsi is a puissant contender, two organizations very nearly embrace close estimating.
Competitors
Coca Cola Company’s immediate rival is Pepsico. Nonetheless, Cola Turka is a conspicuous rival in the cola business sector of UAE to attempt and catch the shopper’s consideration. This is clearly seen in the Cola Turka’s advancements with “Yahşi Batı” film of Cem Yılmaz. Pepsi build their advancement and mindfulness by promoting their items with well known superstar to pull in their fans to purchase their items. Really, Coca Cola and Pepsi have both the thought of “think worldwide, do nearby”. For instance, Coca Cola which is currently utilizing Acun Ilıcalı as a part of TV promotion, opponent organization of Pepsi is utilized the same conclusion before with Seda Sayan character who is extremely convincing over customers. In spite of the fact that there are a few advancements by Pepsi and Cola Turka, the purchasers really buying Coca Cola items did not really “perceive” the advancement. The greater part of the purchasers don’t get impacted by the advancements offered by the sodas organizations. This by and by shows how solid brand devotion is between buyers.
Consumer CharacteristicsConsumer behaviour is very affected by outside and interior elements. The outer components are isolated into five areas: Demographics, socio-money matters, engineering and open arrangement; society; subculture; reference gatherings; and promoting. The interior elements incorporate a mixed bag of mental components, for example, convictions and state of mind, inspiration, observation, and learning and mental self-view. Studies have demonstrated that these components and others that fall past the advertiser’s control have a critical effect on customer’s behavior
Buying Decision BehaviorComplex buying behavior
Complex buying behavior is customized by large amounts of shopper inclusion in a buy and critical saw contrasts among brands. Buyers generally apply intricate buying behavior when the expected buys are lavish, occasional and hazardous. Buy choices are more unpredictable contrasted with different items that are less expensive. Purchasers undertaking complex buying behavior are prone to experience each one phase of the choice making methodology. They will normally invest time asking about the item, assessing option brands and contrasting alternatives before at last making the buy (Weber, Story & Harnack, 2006).).
The Buying processCoca-colas customers can be clarified in Consumer as an issue Solver (Habitual Decision Maker). A frequent leader settles on decisions that are portrayed by a motivation endeavored and without cognizant control (Solomon et al, 2006). Coca-Cola’s brands are low inclusion items along these lines oblige little data seek. Most choices made by individuals who devour Coca-Cola are with almost no cognizant exertion. Coca-Cola customers buy Coke for instance focused around a propensity that has been structured about whether. Likewise the Evaluation of choices can be utilized to clarify the brands imperviousness to the subsidence, a great part of the buyers exertion that goes into a buy choice creates at the stage in which a decision must be produced using the open options (Solomon et al, 2006). By and large, there are various plan B, (for example, water, soda or liquor) a customer could consider in fulfilling a biogenic need, i.e. to prevail over thirst. A customer that has framed a propensity extra minutes to buy eating methodology Coke for instance will dependably have as a top priority an eating methodology coke at whatever point he’s parched. Marking can likewise be an impact on the assessment of plan B.
ConclusionIn place for the organization to keep up its solid business sector position, Coca Cola needs to consistently reinforce its brand to keep up brand unwaveringness and positive reactions and separate itself from its rivals. Particularly, the contention between Coca Cola, Pepsi, and Cola Turka has created a moderate moving industry, administration should consistently react to changing purchaser patterns and demeanor as the customer can undoubtedly change to different refreshments with little cost or outcome. The organization ought to merge the dedicated purchasers, empowering heavier utilization from them. They could attempt to change over some brand switchers into dependable customers through deals advancement and publicizing.
ReferencesFoster, R. J. (2008). Coca‐Globalization. Blackwell Publishing Ltd.
Nestle, M. (2000). Soft drink “pouring rights”: marketing empty calories to children. Public Health Reports, 115(4), 308.
Pitelis, C. N., & Teece, D. J. (2010). Cross-border market co-creation, dynamic capabilities and the entrepreneurial theory of the multinational enterprise.Industrial and Corporate Change, 19(4), 1247-1270.
Schuiling, I., & Kapferer, J. N. (2004). Executive insights: real differences between local and international brands: strategic implications for international marketers. Journal of International Marketing, 12(4), 97-112.
Weber, K., Story, M., & Harnack, L. (2006). Internet food marketing strategies aimed at children and adolescents: a content analysis of food and beverage brand web sites. Journal of the American Dietetic Association, 106(9), 1463-1466.
United Arab Emirates Investments
United Arab Emirates Investments
Institution
Name United Arab Emirates Investments
Introduction
The founder of the United Arab Emirates was His Highness Sheikh Zayed Bin Sultan Al Nahyan. He was highly respected by his people beside which he transformed his country to become one of the top countries in economic growth and development. The United Arab Emirates has been growing in terms of global importance especially due to its oil resources and economic prospects. The future prospects of the UAE economy have seen a massive attraction of foreign investors in various business sectors. This paper aims to outline the development aspects of the United Arab Emirates and the increasing importance of the country because of its economic strength. The paper will also link the growing importance to its influence on the oil sectors alongside the non-oil sectors locally and globally.
Looking at the UAE economy needs a consideration of its position in the MENA region. In the MENA region, the UAE takes the third position after Saudi Arabia and Iran. The country’s GDP reached $360 billion in 2012, it is expected to be higher in 2013 as a good trend in business, and economics remains (Forstenlechner, 2010). The country is today ranked among the fastest growing economies in the world. An evidence of this trend is the growth of the UAE GDP that reached 20.8% in 2012 making the country to attain a $360 billion mark in GDP against $298 billion in 2011.
The United Arab Emirates is increasingly breaking from its reliance on natural resources such as petroleum and natural gas. These natural resources however play a key role in the country’s economy. Cities like Abu Dhabi are marked with massive growth in both economic and infrastructure due to the intensified trade in oil and natural gas resources. The UAE is currently said to have construction projects in progress amounting to over $350 billion (Forstenlechner, 2010). Being a member of World Trade Organization plays an important role in the countries international trade and business relations.
In terms of international trade, the UAE has had increased imports especially in manufactured goods, machinery, transportations equipment, and agricultural goods. Importation industrial goods accounts for 70% of the country’s imports. The export sector is another part of the UAE international trade. A free trade zone exists in which all re-exported goods are freed from any duty. Exporting of goods and services is one other country’s alternatives of sources of revenue. Diversification is also ensured in the search of other revenue sources including tourism as well as international finances.
Development of the UAE
The UAE Domestic Development
The Abu Dhabi government has contributed much on the UAE development and economic growth. Abu Dhabi is the leading government in the UAE. Abu Dhabi initialized its own Vision 2030 under the authority of the UAE president. The Vision 2030 was developed as a way of initiating planned and organized economic growth and development projects. The recent developments have made the country emerge from its position as among the least developed countries in the world to the topmost emerging economies attracting the entire world. The country has reached to a point whereby its income level is comparable to those of developed nations. Unlike most other developed countries whose development is marked by hypothetical development stages, the UAE development abilities are linked to its rich oil and natural gas resources (Government of Abu Dhabi 2008). The revenue obtained from these natural resources is highly considered the main facilitator of economic development in the UAE.
Economic development is usually difficult and lengthy for most countries. These stages of economic development usually involve intense processes of savings as well as capital accumulation. Natural resources within the UAE made the country embrace mainly the resource-based industries as one of the key development strategies. Most of the industries were organized in such a way that they utilize the natural resources. The country also initiated strategies that would develop improvement in income as a way of boosting social welfare and development of economic infrastructure especially in Abu Dhabi (Government of Abu Dhabi 2008). The country economic development is therefore highly integrated with social, cultural, economic, as well as political contexts. Beside all these aspects of economic development, the important human factors in terms of goals, objectives, as well as sources of economic growth are interrelated.
The political context in Abu Dhabi as a government has contributed much on the UAE development. Abu Dhabi creates a center interest in the UAE development efforts since it happens to be the leading government in the UAE. Abu Dhabi has great resources and not only relies on petroleum and natural gas resources but also it relies much on the foreign sector for economic growth. Abu Dhabi has favorable conditions such as a huge shipping port that accommodates ships that would not be accommodated elsewhere in the UAE. Abu Dhabi sets its growth strategies in such a way that its foreign sector has to be advanced (Smeets and Bayar 2012). This aspect is seen through the construction of the Abu Dhabi port under the authority of Abu Dhabi government. The port development project was started in 2006 with the aim of revamping transportation as well as trade within the Abu Dhabi government. The main idea was to enhance the country’s international relations through improvement of trade by sea, by air, and by road. Other than enhancing trade and international relations, the projects was meant to create jobs
In other regions within the United Arab Emirates, oil acts as the main facilitator of economic growth and development. Before oil was discovered in the UAE, the country depended on subsistence agricultural farming, nomadic animal husbandry, as well as extraction of pearls and their trade. The UAE also had aspects of fishing and seafaring as part of its economy. There were limited natural resources until oil resources were discovered that the country broke from relying on substance economic activities to oil related industries (Smeets and Bayar 2012). Its economic development realized a significant change in the 1970s when massive oil productions began as well as an added advantage from the relatively high oil prices in the world at that time.
The development of the UAE could be associated with its high political as well as social stability. The existing political structure perfectly suits the tribal society of the country. The Emirates government ensures that there is uniform distribution of oil resources in terms of social and economic development projects and infrastructure. Equal distribution of resources was also done to ensure salary increments, provision of higher social and economic standards, and improved access to social amenities, such as health facilities and education resources as well as increased living standards (Nytimes.com 2012). The UAE has ensured that there is a high maintenance of human rights traced back to the formation of the state. Establishment of strong human rights is one of the main factors enhancing political and social stability. Political ground in relation to the social aspects of the UAE also brought a great aspect of the country’s economic growth by becoming a member of various associations that are regional and international. These associations brought in the influence of the UAE economic growth and development by the foreign community. Some of the key organizations include the Arab League, the Non-Aligned Movement, and the United Nations. Other organizations in which the UAE trade and promote its business relations include Arab Gulf Cooperation Council as well as Organization of the Islamic Conference.
Foreign Sector Participation in UAE Economic Development
The UAE has significant relations with various countries throughout the world. Many countries depend of the United Arab Emirates for its oil and natural gas resources in all continents of the world. The Western countries are the main players in that UAE international trading relations. The UAE is a politically and socially stable state and this condition calls for a relation with other countries having similar traits especially countries from the west. Western countries are socially, economically, and politically stable and have desirable and liberal trade policies that pave way to industrial development (Propertyshowrooms.com 2013).
The rich oil, natural gas, and mineral resources form a foundation for the participation of the international communities in investment projects in the UAE. Extraction of oil and natural gas was hardly possible without the help of the western technologies. In this case, signing business and contractual agreement could not be avoided given that many western countries wanted to trade with the UAE in order to benefit from the oil resources and mineral resources discovered or found in the country. The United Arab Emirate is endowed with great reserves of oil in both onshore and offshore scopes. In the production of various oil products, associated petroleum gases also happens to be products of use. These oil resources have been attracting a significant aspect of the foreign sector.
As the foreign sector grows, foreign investors bring in new technologies and production methods that are advantageous to economic development. Most of the foreign investors come to utilize the opportunities and resources available in United Arab Emirates. Besides, regional insight as well as awareness of the country’s local landscape forms grounds for attracting foreign institutions to invest in the economy (Propertyshowrooms.com 2013). This kind of landscape in the UAE was facilitated by liberalizing rules governing the foreign investment. The liberalization of the rule was meant to open the economy to as many foreign investors as possible. While foreign investors have developed great aspects in the UAE economic development, investing in the country is faced with a number of challenges.
A major challenge to foreign investors is the navigation from the country’s laws and practices. Most of the business laws favor the state nationals in pursuing business activities within the UAE economy. Some strategic sectors are also protected from invention by the foreign investors. The country’s Commercial Companies Law establish that every company that is incorporated under the law should not have less than fifty-one percent as the shares owned by the UAE nationals. This rule is however subject to certain exceptions and prevents the foreign sector from owning UAE companies at a proportion that exceeds 49% (Mellahi, 2007). The effect of restriction of owning beyond a certain percentage by the foreign sector discourages many investors from foreign countries.
While foreign investors aid in bringing in foreign currency, additional income, creation of jobs through their established foreign investments, and bringing in newer technologies, restrictions available to prevent them advancing beyond certain limits creates fear and dissatisfactions. Regional nuances are also a part of the restriction formed on UAE foreign investment. This theory brings in discriminative consideration of foreign investors whereby those foreign investors within the Gulf Cooperation Council could be termed as part of the nationals and invest under the same freedom given to the nationals (Mellahi, 2007). Tends towards liberalization happens with the UAE having to take steps in facilitating as well as attracting foreign investors in the economy. The key understanding in this case is the foreign sector on the UAE economy including provision of foreign capital, introduction of foreign technologies, and introduction of foreign labor or human capital. On the side of the foreign investors, they make use of the cheaper oil resources whose prices would be relatively low due to the exception from additional costs in shipping and duty charges.
Sustainable Energy Resources
The UAE has high availability of sustainable oil and natural gas resources from which all industries can benefits. The natural oil and gas resources are wide spread and could be found in both offshore and onshore areas within the country. Natural resource availability has seen the country emerge to be one of the top countries economically and the first country in the middle easy to establish and use nuclear energy. Establishment of nuclear energy was done under deliberate steps with the international Atomic Energy Agency (World-nuclear.org 2013). The country accepted bid from South Korea to construct four nuclear plants with the first having been started in 2012. Each one of the seven states is meant to benefit from the nuclear energy. The ambition to improve in nuclear energy is in line with full development by 2020.
To ensure that there is safety in the use of nuclear energy, members of the Gulf Cooperation Council commissioned a study to ensure the peaceful use of nuclear energy. These member states include Saudi Arabia, Bahrain, Kuwait, the UAE, Qatar, as well as Oman. France however accepted on working with the council to ensure that the UAE applied safety strategies in the use of nuclear energy (World-nuclear.org 2013). The nuclear plants are established under environmentally promising grounds to avoid excessive pollution.
To strengthen the safety concerns, license applications were done alongside environmental assessments for every preferred site. This licensing was done by Federal Authority of Nuclear Regulation (World-nuclear.org 2013). Nuclear Safety Review Board has the obligation of reviewing safety as well as the effectiveness of the nuclear plant.
Entities behind the UAE Development
The tremendous development in the UAE is initiated with a collaboration of internal factors and external factors. The issue of labor and working conditions could be marked as having a great impact on economic development. High returns by firms were sometimes back realized as workers were being exploited. Workers worked for long hour without adequate compensations. They also had poor living conditions because of the poor wages. To get a significant income, they had to work for long hours hence generation more income for the firms or companies they are employed in (Varietyarabia.com 2012). Poor working and living conditions by workers in the UAE saw negative publicity from western media. The least of the consideration in these publicities is that these workers were employing efforts that would change the UAE image forever.
Working in the nuclear plants and oil manufacturing plants is termed as difficult due to the health implications. The compensation may not be adequate for the risks involved and health degeneration. These employees however support a significant part of the UAE populations in form of the non-working family members (Varietyarabia.com 2012). The money also goes to the establishment of various projects facilitating development of economic activities in the country.
Other than workers, foreign companies and investors have contributed much to the economic growth. Foreign companies bring in new technologies, more income useful in economic development, and a source of government revenue (Forstenlechner, 2010). The development of some projects in the UAE are however possible under the support of the international community. This means that economic growth is highly linked to the international participants who also form a ready market for the country’s oil and natural gas resources.
Conclusion and Recommendations
The economic development of the UAE is analyzed in parts with the first part concerning domestic development within the recent past in the country. It is established that the development of UAE was independent to a certain extent as initiated by internal factors such as workers and natural resource. The influence and participation of the foreign sector is also found to be significant. The motivational factors of the foreign investors include the disadvantages of investing in the UAE as a foreigner (Shihab, 2010). While foreign investors are found to be attracted by the availability of natural resources and cheaper factors of production, restrictions discourage many foreign investors from entering the market.
Future trends in the foreign sector seem to be favorable as restrictions in the foreign sector are being minimized. Development of the United Arab Emirates also looks at the Countries Vision 2030 and it is important to the Emirate of Abu Dhabi government. The second section of the development is viewed from the analysis of the country’s foreign investments. In this case, the contribution of Abu Dhabi investment Authority to economic growth and its significance to the world economy happens to be a key aspect of analysis with respect to UAE economic development (Kerr, 2009).
Sustainable energy also exists in the UAE and contributes much to the economic growth. The factors making UAE become the first country to have nuclear energy and make use of the energy within the Middle East region have contributed to economic development in the UAE. For any course of development action and industrialization, consideration of safety measures should be ensured (Thenational 2009). This is especially when using nuclear energy to ensure environmental conservation as the growth of industrialization and economic growth are initiated. Incorporating these aspects of economic development with who is behind the tremendous economic growth and development in the UAE would establish the whole scope of economic development in the UAE.
Annotated bibliography
Forstenlechner. (2010). Workforce localization in emerging Gulf economies: the need to fine-tune HRM. Personnel Review Vol.39 No.1 , 135-152.
Government of Abu Dhabi (2008) the Abu Dhabi Vision 2030. [Report] Abu Dhabi:Government Printer, p.1-17.
Kerr, S. a. (2009). UAE to safeguard jobs of nationals. London: Financial Times.
Mellahi, K. (2007). The effect of regulations on HRM: private sector firms in Saudi Arabia. International Journal of Human Resource Management, Vol. 18, No.1 , 85-99.
Nytimes.com (2012) The New York Times. [Online] Available at: HYPERLINK “http://www.nytimes.com/2012/11/29/world/middleeast/a-port-to-keep-up-with-growth-in-” http://www.nytimes.com/2012/11/29/world/middleeast/a-port-to-keep-up-with-growth-in-abu-dhabi.html?_r=1& [Accessed: 16 Feb 2013].
Propertyshowrooms.com (n.d.) Why Invest In The United Arab Emirates? [Online] Available at:http://www.propertyshowrooms.com/united%20arab%20emirates/property/investent/why-invest-in-united%20arab%20emirates-property.asp [Accessed: 16 Feb 2013].
Shihab, M. (2010). ECONOMIC DEVELOPMENT IN THE UAE. UNITED ARAB EMIRATES: A NEW PERSPECTIVE , 249-260.
Smeets, B. and Bayar, A. (2012) Sustainability of economic growth in Abu Dhabi – aDynamic CGE Approach. Topics in Middle Eastern and African Economies, 14 p.1-48.
Thenational.ae (2009) Minimum standards for labour camps – The National. [Online] Available at:http://www.thenational.ae/news/uae-news/minimum-standards-for-labour-camps [Accessed: 16 Feb 2013].
Varietyarabia.com (2012) The labour camp you know a little about. [Online] Available at:http://varietyarabia.com/Docs.Viewer/77b9785a-77eb-402b-b4aa-9b7282a7dcc4/default.aspx [Accessed: 16 Feb 2013].
World-nuclear.org (n.d.) Nuclear Power United Arab Emirates | UAE Nuclear Energy | Abu Dhabi |Dubai. [Online] Available at: HYPERLINK “http://www.world-” http://www.world-nuclear.org/info/UAE_nuclear_power_inf123.html[Accessed: 16 Feb 2013].
Unitarist Approach to Employee Relations
Unitarist Approach to Employee Relations
Name
Professor
Institution
Course
Date
Summary
Employee Relations can be summarised as the merger of corporate, administrative and employee requirements for the attainment of optimal and effective performance in the work place. The groups of people implied in the concept of Employee Relations include stakeholders, management, employees, trade unions, as well as, the government. Employee Relations has increasingly become an important topic in the workplace because of the long-held belief that business operations are not always beneficial to all the players in employee relations. That what is beneficial to employees is not as beneficial to managers or stakeholders.
This essay examines the concept of Employee Relations from the Unitarist approach. The essay’s proposition is that adoption of a Unitarist approach is beneficial for all the major actors in Employee Relations, with the benefits of the application of this approach offsetting the detriments. More specifically, the paper examines the observation of the aspect of trade unionism in the US and Australia, illustrating the benefits and disadvantages of its application by country. The essay is divided into three sections, with the first section drawing attention to evidence, from US and Australia, regarding the advantages and disadvantages of employee relations, with relation to trade unions. Secondly, the paper explains the Unitarist approach towards employee relations, and finally, the essay explores the counterargument that a Unitarist approach is detrimental for all the major actors in employee relations.
Definitions
For human resource professionals, the Unitarist approach, otherwise known as Unitarism, is the approach towards employee relations where individuals in an organization are seen as a group sharing the same unitary outlook (Müller, 2000). Put simply, it is whereby management and employees, and other stakeholders share similar interests, objectives, and purposes; thus working together towards the achievement of these goals.
Trade Unions, on the other hand, are small organizations mainly consisting of the different actors in Employee Relations that aims their efforts towards the promotion and protection of the interests of all the members of these unions (Weber, 2011).
Analysis of the Unitarist approach according to employee relations
For many years, there have been issues regarding the relations employees have with their employers. This means that there are constant debates concerning these issues on a regular basis. Various Governments have a huge role to play in matters regarding to employee relations. They have to ensure that rights of a collective and individual nature are protected to the maximum. Also, they seek to ensure that exploitation of workers does not take place (Wooden, 2010). There needs to be an equity and efficiency balance as this means that the employees and employers should reach a common ground. The employee relations foundations are based upon multidisciplinary existence at the work place. The many reference frames as well as interest groups, seek to ensure that the employee relations opinions are made known. As a result of debates of a theoretical nature, tensions, which are productive, occur. This has in turn lead to understanding, analysis and questioning of empirical methods, which are new (Wooden, 2010).
The theory on human management incorporates the labour relations of many countries and notably that of Australia and the United States. It deals with the labour relations of the nations, as well as how it relates to their management activities. In employee relations, the various stakeholders ensure they their interests are well represented. Rights and behaviours are determined by the norms, which exist in the respective societies (Sodhi, & Plowman, 2002). The latter determines what is to be accepted and what should not. Also, people have different perspectives, which ought to be known. Peer groups and the media are some of the parties, which show the importance of the perspectives. Employee relations views are based on the frames, which exist. According to the distinction, which is unitarist –pluralist, the styles of management exist as a result of theories. Employees are built upon as a source of reference as a result of the frame of the unitarist approach. This is meant to ensure that interests and behaviours of employees are well taken care of. This is for all the employees in an organization, regardless of their job titles. Most times ‘third parties’ is the name used to refer to unions and this creates an uncomfortable atmosphere. The interventions by unions are viewed as causing trouble and threatening the relationship between the employee and the employer (Griswold, 2010).
Others name this approach as neo-unitarism. The powers of employees as well as those, which are weak, occur in matters regarding employees. Prerogative of managers is extremely vital, thus the reason why this approach is favoured. This approach is extremely proactive as the various employees are led by styles of management, which is unique to them. This approach is suitable for managers who want to become successful as it brings about qualities, which are desirable. In turn, factors such as corporate culture and unity are enhanced in an organization (Ackers & Wilkinson, 2003). Also, managers provide their employees with the needed development through training as well as employees being aware of their targets. This approach is also known to ensure flexibility, quality and commitment, is facilitated accordingly. Other times, this approach is beneficial in terms of involvement of employees, profit sharing and pay that is related to performance. There is an increase in unions, in Australia as well as the United States also, the number of managers in human resources has increased. This is because they are in favour of this approach (Ackers & Wilkinson, 2003).
The approach ensures that the perspective that is managerial based is observed. Matters concerning employees are extremely crucial as it is the concern of the managers to be taking care of their employees. This is because the resources in an organization are employees and they need to be deployed and controlled. It should be known that the relationship that exists between the two parties is not meant to be equal. There is a need to ensure that workers have relations, which are individualized, as opposed to those, which are collective. Most people, who are involved in reaching this approach, believe that this approach is extremely beneficial. As a result of the approach being diversified, it means that it will become settled easily. The industrial relations of employees and employers are enhanced and this is the reason why most people prefer to work in either Australia or the United States. In organizations which follow this approach, there is consistent harmony (Kaufman, 2004).
Trade unions have played a great role in shaping employee relations in the United States. This is because they often call for collectivism, through the existence of numerous unions. Employees are paid wages after they provide their time in the various jobs. This means that employees are treated fairly and not as slaves. Employees in the United States have the freedom of joining any trade union of their choice. This is because they are assured of being treated fairly at work, as well as to receive wages, which are fair (Kaufman, 2004). Unions are faced with problems such as strikes and this sometimes makes some members to quit. This means that growth of unions is affected .For example, in the United States, despite there being many strikes, the number of trade union members grew. As for Australia, the number of employees reduced drastically as they were not motivated to join trade unions. In order to find out this crucial information, the statistic rate is calculated in terms of quartile.
In reaction to hostility, which results in upheavals of a social nature, growth of trade unions is reduced. This in turn ensures that the collective interests of employees are made known to the employers. This is because a lot of attention is given to the processes of discovery and organization. In Australia, the trade unions have had many problems for a long time. A lot has been done to ensure that employees are well taken care off. For example, in the year 2009, there were the Act of Work Place relations whereby, the rights of workers were to become collective. This meant that women were entitled to maternity leave due to the scheme that allowed for leave allowances. The government was forced to include this new scheme in its budget. Currently, the scheme has included paternal leave, which is seen as a great achievement (Barton & Broek, 2011).
It is crucial that people work if they are to survive and this means that work ought to be legal. Most times, workers engage in indirect confrontation with their employers as they try and make their views known. Employees usually want to join trade unions, which ensure that their bargains of a collective nature are bargained for. Negotiations are the most essential elements in any trade union as it acts on behalf of the members (Barton & Broek, 2011).
In Employee relations, most of the major actors are affected by the effects of the unitarist approach, which need to be known. Most times, there are bound to be industrial conflicts and disputes. Also, as a result of the organization being restructured, problems will arise. This is because most employees always resist change when they have the opportunity to do so. Instead, change should be introduced at a slow pace, so that the employees are well informed about it. The management should come up with ways, which the employees can be able to deal with change in the organization. Suitable methods of dealing with change including coming up with effective policies, training, among others, should be found. Other times, those in management might be sceptical or they might not be as committed as required. This is extremely detrimental especially to their employees who look upon them. The example set by management influences the other employees greatly (Griswold, 2010).
The trade unions are also affected by sceptics as they tend not to ‘buy in’. There is often difficulty when trade unions try to ensure that the practises and approaches are right. Most union members do not have good relations with the managers of the various organisations. When it comes to the negotiation part, things do not work as expected (Griswold, 2010). There is a need to ensure that trust is developed as this will play a crucial role in these matters. The relationship between management and trade union officials has been described as being unwanted .It is believed that the union members will not be represented as they ought to be.
The conditions, which exist for trade unions, are not conducive as well as the environment not friendly. This greatly affects the impact on the efforts of the unions. Most times there is financial pressure and also completions form other parties. The issue of time is also important as without taking it into consideration, problems are bound to occur (Barton & Broek, 2011). Delay of work activities often occurs as a lot is demanded of the employees. Management in the human resource department should ensure that they come up with effective strategies to improve employee relations. The latter are the ones responsible for the success of the organisation and if they are not treated well then failure is inevitable (Barton & Broek, 2011).
Globalisation has also affected the relationship between employees and the employer. This has made the competition at the work place to increase, and in turn, issues such as cost are difficult to evade. Organisations, which are represented by unions, will succeed as they are assured of added value (Müller, 2000). Since no one wants to be jobless, they must seek ways of promoting the relations, which exist in the organisation. Unions and organisations have to corporate in the unitarist approach .This is meant to motivate employees to work better. An environment, which is harmonious, should exist if people are to work well. The unitarist approach is not in favour of unions as employment issues are not well addressed and management assumes a lot of power.
Conclusion
Conclusively, it is evident that companies that have employed the Unitarist approach to Employee Relations have succeeded in their efforts towards attaining organizational goals and objectives. This approach to Employee Relations does not only promote profitability in the workplace, it also ensures that the needs of all the major actors in Employee Relations are met.
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