Business Level Strategy

This article discusses five policies to protect and support local companies in Kuwait, including the New Tenders Law, the National Labour Support Tax, competition law, violation of the Copyright Law, and the Regulation of Commercial Agencies. It also suggests four strategies to enhance the capacity of firms in Kuwait to succeed in global markets, including developing a strategy and business plan, establishing a go-to-market strategy, product readiness, and organizational readiness.

Running head: BUSINESS LEVEL STRATEGY
Business Level Strategy
Name of the Student
Name of the University
Author Note

1BUSINESS LEVEL STRATEGY
1. Recommend and discuss FIVE policies to protect and support the local companies
in your country.
Answer: The recommended five different policies for protecting and supporting the
local companies in Kuwait are namely- the New Tenders Law, the National Labour Support
Tax (NLST), competition law, Violation of the Copyright Law and the Regulation of
Commercial Agencies. Kuwait is one of the most vibrant as well as vocal democracies
present in the GCC (the Gulf Cooperation Council) region (Abdulla, Naser and Saeid 2014).
The women in this region are among highly liberated females present in Middle Eastern
region. They are allowed to actively participate and cooperate in the military force, labour
force as well as the justice system and it is also anticipated that in the coming years the
women in Kuwait would also held the position of the members of the judicial body in
Kuwait. Such an advancement in the country clearly depicts that there is a very healthy
business environment there. Kuwait became independent recently, in the year 2011 from
various different power and forces. The diversity in the external factors of this nation are
highly capable of influencing the manner in which the companies formulate the various
different strategies (Albrecht et al. 2015). It is also to note that, though the country is now
independent and there is a trace of women empowerment and improvement in this nation, the
political environment that is prevailing here is quite disturbing in nature. There are many
political parties present in this nation and it is because of their influence that the policies in
Kuwait are getting affected. They are influencing the way in which the government is
framing the policies for the country men. The oil production industry in Kuwait is the most
influential and the most important one as it brings a huge income in the Kuwait’s economy. It
accounts for 40% of the GDP and 90% of the net exports along with that, 80% of the state
revenues (Biygautane, Hodge and Gerber 2018). It is also to note that like any other
countries, the economic factors and conditions of Kuwait is also influencing its overall

2BUSINESS LEVEL STRATEGY
organisational plan for operating there. There is a trace of closed economy prevailing in this
nation and that has reluctant to permit the top most levels of the FDI, the Foreign Direct
Investment. This has made the entry of the new companies, industries and organisations quite
easy here. Furthermore, the political reforms in this country has also resulted in increasing the
improvement level and the foreign investment for the infrastructures present in Kuwait.
Moreover, it is also to mention in this context that there are several social factors as well that
are significantly affecting the businesses and companies in Kuwait (Gerges et al. 2016). The
entry of the expatriates from the foreign nations in order to improve their living standards are
immensely affecting the local businesses there. It is to state that the technological
environment of this country is dependent on the transfer of the technologies through means of
the Central Bank. Unlike many other countries, Kuwait has not taken any kind of aid from the
other nations for its own technological development and this is quite worthy to note.
However, the environmental condition of this nation is also disturbed to some extent and this
is because of the increase in pollution from the oil spills present in different parts of Kuwait.
This has also affected the heath of the citizens and have also resulted in oil spills in several
regions.
After its independence, the country has very recently adopted high quality as well as
efficient economic infrastructures through introducing different regulations and they are
significantly playing a dynamic part in supporting a competitive economy as well as in
encouraging and enhancing the different investors to conduct their businesses in Kuwait
(Kaleka and Morgan 2017). The laws enforced by the Kuwait’s government have been very
helpful in managing the wages of the workers and the employees working in different local
companies in Kuwait. It are strictly followed by the local citizens in their businesses as well
as by the different local companies that are currently operating all through this nation. The
government of this country has also introduced some regulations for the local organisations

3BUSINESS LEVEL STRATEGY
where they are not at all liable to pay taxes for their income which are basically gained within
the local market. All the resources that are been possessed by the companies there are very
vital for their successful competitive advantage. After assessing the external factors it can be
said that the country has become very open to several external or foreign organisations that
are planning or has planned to enter into the market. All these organisations could therefore
take the advantage of this situation and could enter into the market in such a way that would
help them in gaining competitive advantage that they requires. The laws that are incorporated
by the government of the country is playing a major role in helping Kuwait’s companies to
gain competitive advantage over the others within their respective industries. The regulations
and the policies which are made and developed by the local government for the companies to
assist them in complying with the labour laws are also very significant in this nation (Sikora
and Ferris 2016). One of the primary reason behind this is that the laws that are formulated
are very strictly held by the government and the other political bodies. The business based
opportunities and chances could be created by the companies are effective ways through
which the financial or the economic position of the nation could be revived (Zucchella et al.,
2016). The laws based on the privatisation are also very important for the companies to
conduct their businesses in Kuwait. Moreover, it is also to note that recently, the FTSE
Russell has announced that Kuwait would be allocated with the ranking of Secondary
Emerging Market status within the FTSE Country Classification scheme. This ranking of
Kuwait has boosted the enthusiasm and encouragement level among the foreign investors to
invest in the Kuwait’s markets.
2. Suggest and critically discuss FOUR strategies that can enhance the capacity of
firms in your country to succeed in global markets
Answer: The four strategies that could enhance the capacities of the companies in Kuwait
to succeed in the global markets are listed below:

4BUSINESS LEVEL STRATEGY
 Developing a strategy and the business plan- Each and very market has its own
nuances as because of the cultural, economic, governmental and the market
conditions. It is very vital to develop a business plan and localised strategy that drives
the local successes while staying integrated along with the corporate objectives and
strategy. Define a short, medium and the long term strategy and henceforth set a
reasonable goal in order to measure the progress. With the same, developing a top-
down annual budget for the same will also go a long way.
 Establishing a Go-to-market strategy- An effecting marketing a selling of the products
and services of a company need a cohesive and comprehensive strategy which could
address the sales strategy, the value proposition, the marketing programs, the sales
delivery, the marketing strategy as well as pricing and this together helps in creating a
clear market differentiators which enhance the market acceptance along with the
growth in revenue.
 Product Readiness- Depending on the gap analysis of the product, reviewing the
government and the industry specific policies and regulations in order to make sure
that the certifications and compliance are successfully obtained. Determining whether
or nit the localisation of the products are necessary. Paying close attention to the name
translations of the products and services in the local language of the place where you
want to expand your business (Kim, Jeongeun and Sergio 2016). With the same,
initiating the trademark and patent review is also very important as because of the fact
that there are some countries that are popular for copying good ideas.
 Organisational Readiness – The differences in culture, whether it is customs,
language, or regulations needs a company to be flexible in the procedures and policies
that are implemented in a global operation in order to make sure that the employees
are executing and the engaged in the plans of the company. Evaluating the

5BUSINESS LEVEL STRATEGY
organisational structure is necessary for successfully executing the strategy of the
company. Developing the handbooks, procedures and policies which comply with the
local needs and requirements during the maintenance of the balance with company
policies are important (Stafford and Taylor 2016). Furthermore, developing
competitive benefits for the programs in order to attract the qualified local employees
is also necessary to successfully operate a business in the foreign countries. With the
same, it is also important to develop and establish a local information technology
infrastructure which is compatible with the domestic structure.

6BUSINESS LEVEL STRATEGY
References:
Abdulla, A.M., Naser, K. and Saeid, M., 2014. Employability factors of business graduates in
Kuwait: Evidence from an emerging country. International Journal of Business and
Management, 9(10), p.49.
Albrecht, S.L., Bakker, A.B., Gruman, J.A., Macey, W.H. and Saks, A.M., 2015. Employee
engagement, human resource management practices and competitive advantage: An
integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1),
pp.7-35.
Biygautane, M., Hodge, G. and Gerber, P., 2018. The Prospect of Infrastructure Public‐
Private Partnerships in Kuwait, Saudi Arabia, and Qatar: Transforming Challenges into
Opportunities. Thunderbird International Business Review, 60(3), pp.329-346.
Gerges, M., Ahiakwo, O., Jaeger, M. and Asaad, A., 2016. Building Information Modeling
and its application in the state of Kuwait. International Journal of Civil, Environmental,
Structural, Construction and Architectural Engineering, 10(1), pp.81-86.
Kaleka, A. and Morgan, N.A., 2017. Which Competitive Advantage (s)? Competitive
Advantage–Market Performance Relationships in International Markets. Journal of
International Marketing, 25(4), pp.25-49.
Kim, J. and Celis, S., 2016. Global Partnership as a Strategy for Internationalisation: MBAs
in Latin America and Asia and Oceania. Higher Education Policy, 29(3), pp.355-378.
Sikora, D.M. and Ferris, G.R., 2016. Reimagining overqualified human resources to promote
organizational effectiveness and competitive advantage. Journal of Organizational
Effectiveness: People and Performance, 3(1), pp.23-42.

7BUSINESS LEVEL STRATEGY
Stafford, S. and Taylor, J., 2016. Transnational education as an internationalisation strategy:
meeting the institutional management challenges. Journal of higher education policy and
management, 38(6), pp.625-636.
Zucchella, A., Hagen, B., Denicolai, S. and Masucci, M., 2016. Early and accelerated
internationalisation: the role of the niche strategy in a new generation of
exporters. International Journal of Export Marketing, 1(1), pp.27-47.