Strategic Management of Emaar UAE Communities

The assignment requires students to analyze the strategic management of Emaar UAE Communities, a leading real estate company in the Middle East. It involves identifying the company's current position, desired position, resources and capabilities, target operating model, and ecosystem linkages. The student is also required to provide a management agenda for getting to the desired position and make references to relevant literature.

Running head: STRATEGIC MANAGEMENT
Strategic Management
University Name
Student Name
Authors’ Note

2
STRATEGIC MANAGEMENT
Table of Contents
Part 1 – Background to the business 2
Part 2 – Selection of the target of the customer 3
Part 3 - Current and desired value proposition in broad terms 5
Part 4 – Current and desired marketing P’s and Key success factors 8
Part 5 – Presentation and analysis of Operating Model of the business 10
Part 6 – Resource and capability analysis 13
Part 7 – Management Agenda for the next 18 months to 36 months 14
Part 8 – Internal linkage that can be strengthened 14
References 16

3
STRATEGIC MANAGEMENT
Part 1 – Background to the business
The current study critically analyses strategic management with special orientation to the
business operations of the firm Emaar Properties. Different businesses of the company
comprise of property, malls, entertainment, hospitality, commercial leasing among many
others. However, the current study intends to lay stress on business of “EMAAR UAE
COMMUNITIES” that includes real estate projects of the company Emaar Properties in
Dubai. The pioneer of assimilated communities in specifically Dubai, Emaar Properties has
established a record in the process of development of superior quality homes in UAE.
Emaar Properties operates has business segments that include real estate, leasing as well as
related activities, hospitality and others. The performance of this particular section of
business can be enumerated using the sales figure of the firm. Financial declarations for the
period 2017 reflects that Emaar Properties registers around 22% growth in the sales figure of
Dubai Property and this figure stands at USD 2.944 billion (Emaar.com 2018).
Performance Background as per the annual report of the firm 2015 and 2016 is as presented
below:
Particular for real estate
segment (AED’000)
2015 2016
Revenue 6508705 7872685
Segment assets 53059250 53059250
Segment liabilities 27475431 28714281

4
STRATEGIC MANAGEMENT
2015 2016
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
9000000
Revenue For Real Estate Segment
Revenue
2015 2016
0
10000000
20000000
30000000
40000000
50000000
60000000
Real Segment assets of Emaar
Segment assets
Part 2 –Target of the customer
Customers can be classified as per the size and industry in which the firm is operating.
Provided the fragmented nature of regional market of “EMAAR UAE COMMUNITIES”, it
can hereby be stated that segmentation of the customers can be more realistic.
As such, it might possibly be simpler to depict the needs of the customers together with
weight assigned to each criterion and the current position can be analysed against that of the
competitors. The selected rivals are from three different strategic groups namely
(International player, National player) utilizing the Customer Value Profile (Barney 2014).
However, different segments of customers are diverse needs. Thus, domestic along with large

5
STRATEGIC MANAGEMENT
sized firms are taken into consideration for explicating the present case. The selected
domestic competitors include Danube Properties and Dubai Properties.
Scores are assigned herein for the selected firm in comparison to the competitors
Danube Properties and Dubai Properties (as domestic players) and international
players:
Market Served Weight Our selected corporation
Strategic Group 1 Strategic Group 2 Strategic Group 3 Average
Domestic and large sized corporation
International
Player
Domestic Player-
Competitor DP
(Dubai Properties)
Domestic Player
Competitor
(Danube
Properties)
Criteria of selection
Proficient and multidisciplinary team 20 12 14 11 9 11.33333
Knowledge regarding the industry 14 6 8 5 4 5.666667
Knowledge of the best operational practices 16 7 9 3 6 6
Potential to undertake system customization 10 6 6 7 8 7
Sevice support after implementation 15 6 8 6 6 6.666667
Building image of the brand 25 10 11 8 9 9.333333
100
Price (Transaction Price as perceived) 7 9 5 4 6
Score on Satisfaction of customers 5.5 7.5 4 4.5 5.333333
Market Perceived Ratio of Quality 110.5
Weight on quality attribute 70
Weight assigned to price 30
Total 100
The scores assigned herein are based on operational experience in th chosen industry in UAE
Competitors
Part 3 - Current and desired value proposition in broad terms
The target of the management is to enhance Dubai Property sales to approximately 30% from
the current level of 25% to particularly AED 18.03 billion within a period of 2 years and
attain sustainable rate of growth. Again, there is a need to augment net operating profit from

6
STRATEGIC MANAGEMENT
the current level of 16% that is AED 5.70 billion to 20% in a period of 2 years. This it can be
hereby mentioned that there is a need to undertake a differentiated or focus strategy and
develop customer intimacy control or else its equivalent in different corporations (gray hair
experience) to certain extent enhance overall operational excellence. The rationale can hereby
be illustrated in the following manner:
Weight assigned to customer selection criteria as sketched in the customer value profile for
instance, proficiency of team; clear understanding regarding industry and knowledge as
regards best practices is 50%. This kind of factors can necessarily be addressed by
concentrating on grey hair experience as a specific discipline.
Clients also attach importance to effectiveness of costs that again will require concentration
on specific procedural template or else operational excellence discipline. This is carried out
for the purpose of maintaining a minor variance of price perception against various other
competitors (Frynas and Mellahi 2015). Particularly, this refers to standardization of various
non-critical and time consuming procedures and engaging different professionals as per cost
structure is comparatively lower in comparison to specific internal resources. Basically, this
might help in augmentation of scores of important qualitative factors and enhance market
perceived quality ratio (Gamble and Thompson 2014).
It might not be possible to take the course of Brains Rocket Science owing to certain specific
reasons as follows:
Undertaking different operational disciplines can be said to be very intricate in the real estate
and construction industry (Ginter et al. 2018)
Undertaking such direction is normally carried out at the firm wide level. There is little or no
control to alter this
Part 4 – Current and desired marketing P’s and Key success factors
Pricing structure:
-The price is over and above the domestic strategic group such as DP (Dubai Properties) and
Danube Properties as is evident from the premium pricing strategy of the corporation
-The price is equal or else higher than International Players Group

7
STRATEGIC MANAGEMENT
-Time and material can be taken into consideration for delivery of tailored products (Hill et
al. 2014)
Products
The Emaar UAE Communities section of the business ensures delivery of products to the
residents that necessarily become a crucial part of lifestyle environment. This includes:
Retail sections, hotels, outlets for food as well as beverage, different educational institutions,
centres for healthcare along with mosques (Emaar.com 2018).
The Emaar UAE Communities section of the business also has an remarkable roaster of
specific lifestyle communities in particularly UAE and that include
Downtown Dubai that is necessarily a flagship mega-development of this business segment
and provides hundreds of homes built in stylishly designed apartment (Emaar.com 2018).
The company also offers Dubai Marina that is essentially one of the largest water front
having numerous residential towers, whilst Arabian Ranches is specifically an entirely-
established community of villa.
Place
Emaar UAE Communities section mainly concentrates on delivering its products in different
parts of UAE (Emaar.com 2018).
Promotion
Post of content online (Hubbard et al. 2014)
Blogging regarding ideas of real estate
Spreading pop-bys that are gifts to current as well as prospective clients
Target selected clients who value overall best solutions
Establishment of direct contact with the clients when necessary
Establishment of engagements and participation in various seminars as well as conferences
Through various publications

8
STRATEGIC MANAGEMENT
Through workshops designed for clients
Maintenance of alliance and associations with various technology vendors (Morschett et al.
2015)
Physical Evidence
Formulation of project charter
Regular production of status reports
Evaluation of As-Is as well as To-Be procedures
Maintenance and documentation of work design
Examination of scripts (Rees and Smith 2017)
Different materials for training
Various user manuals
Survey report on satisfaction level of customers
People
-Experiences and proficient workforce together with industry as well as subject matter
experts
-Level of proficiency of construction engineers
-Familiarity of the people with local culture (Rothaermel 2015)
Procedures
-Blue print of design and construction process followed for delivery of product as well as
service of the company
Analysis
As per pronouncements of the company, there are premium customers who have the need of
products (real estate properties including lifestyle environment, lifestyle communities,

9
STRATEGIC MANAGEMENT
waterfront developments, greens, springs, lakes, Emirates Hills and many others) of the
highest national as well as international standards at premium prices. The desired position for
the company is now to deliver superior standards of living by specialising in the finest
lifestyle and luxury with customization carried out by customer orientation. In addition to
this, the company also intend to become cost conscious in order to present competitive
pricing (Barney 2014).

10
STRATEGIC MANAGEMENT
Part 5 Key Success Factors
Success factors related to skills and competency
Experiences as well as motivated workforce, specialized construction engineers
Accessibility to various consultants (that is gray hair along with various industry as well as
subject matter experts)
Advanced technological systems (Wheelen et al. 2017)
Potential for project management
Marketing as well as Alliances
Alliances with various technology vendors (Wheelen et al. 2015)
Well trained and effectual workers, proficient engineers, consultants and effective sales
personnel
Concentration on industry
Capability of organization
Proven methodologies
Support service after sales
Higher level of utilization of available resources (Wheelen et al. 2015)
Other resources
Desirable brand image
Comprehending culture of regional clients, language and exclusive requirements (Barney
2014)

11
STRATEGIC MANAGEMENT
Part 6: Analysis using strategy canvas
The current position founded on Key Success Factors (KSFs) against other strategic group
players and competitors utilizing the strategy canvas
Current Position:
0
4
8
12
16
International Players
(Strategic Group I)
Competition from
domestic firms
Emaar Properties
As can be concluded from above, the firm Emaar UAE Communities has undesirable
position in comparison to Strategic Group I (referring to international players) in certain
areas, for instance, accessibility to consultants/ expert professionals, potential for project
management, maintenance of alliance with various technology vendors, proven work
methodologies and structure of fees. Nevertheless, it can be said that selected firm Emaar
UAE Communities has a desirable position in comparison to domestic players such as DP
(Dubai Properties) and Danube Properties (Gamble and Thompson 2014). Basically, the
domestic players represented by strategic group I and Strategic group II, however, they
mainly compete on low cost basis only.
Desired Position:
It is evident from the current position of the firm that there is need to improve on different
undesirable areas as presented above. Additionally, the company Emaar UAE Communities
also might consider differentiating themselves from the strategic group of International

12
STRATEGIC MANAGEMENT
Players by augmenting focus of the company on the industry that are larger and more
attractive and assign significant weight to knowledge on industry as a specific part of
criterion of selection. In addition to this, the company might enhance the potential to respond
to needs of customers and customize their offerings as per their needs for creating exclusive
value and make it difficult for competitors to replicate the offerings (Hill et al. 2014).
Furthermore, management of the company can offer wide range of value added or else
complimentary services such as support service after delivery of homes to clients and many
others. This can support the view to concentrate on building strong and enduring customer
relationship.
0
4
8
12
16
Strong competitio from
international players
(Strategic Group I)
Emaar UAE Communities

13
STRATEGIC MANAGEMENT
Part 6: Resources and Capabilities

14
STRATEGIC MANAGEMENT

15
STRATEGIC MANAGEMENT
Resources Significance Comparative Strength Remarks
Financial Resources 8 10
On the whole, this specific business division has recorded net operating profit of approximately AED 5.7
billion recorded for the full year of 2017, replicating a growth of around 16%as compared to the year ago
period. Also, the firm also registered an all time high sales figure of AED 18.03 billion
Brand Reputation 9 10 The brand reputation of the firm is considered to be that of Tier I real estate and construction business
Proficient Consultants 8 7
The company has proficient and experienced professionals, engineering consultants. Therefore, there is a
need to have an appropriate system for performance management and flexible schemes of rewrads.
Additionally, the weights of grey hair also need to be enhanced that is for the industry and proficient
Industry and Profient professionals 10 7 The company depends on different internal resources.
Work and process methodologies 6 4
The company depends to a great extent on specific methodologies designed by best practices owing to
inadequacy of focus on industry
Accessibility to diverse best practices 7 6
The company can utilize a tool referred to as benchmark procedures with world class corporations.
Additionally, the firm has a corporate approach for handling environmental risks and various impacts
stemming from the procedures going about business actions.
CAPABILITIES
Relationship with clientele 10 8
On the whole, the firm maintains a good relationship with the clientele and presents customized offering
designed as per the needs. Emaar maintains customer orientation for designing their offerings.
Sales as well as marketing capabilities 8 7
The officials have the need to be trained for development of sales figure of the firm by adoption of proer
marketing strategies.
Strategic Planning 9 5
The strategic planning of the firm includes acquiring benefit from the current buoyancy in the real estate
market. There is a strategic plan of entering into joint ventures to get accessibility to considerable land bank
with no specific commitment for cost of land.Also, strategic plan also includes continuation of development
of subsisting sizeable land bank and monitise specific assets of the firm.
Effectual training programs 9 6
The company management specializes in the process of assessment, designing and delivering diverse
customized training to employees for community business as well as organizations. The company focuses on
developing work efficiency and this is why it concentrates on development of knwoledge on computer
technology, advanced technology related to construction and development, customer service,
administration of human resources, real estate management, strategic planning and improvement of
Tailored work approach 8 5
Management of the business evaluates needs for training utilizing the faculty else wise special consultants,
formulate a course customized training service and workshop particularly designed for the development
procedure.

16
STRATEGIC MANAGEMENT
Part 7: Target Operating Model
Founded on analysis of literature of operating models of different market leaders focussing
on development of strong customer relationship the following operating model can be hereby
proposed below:
- Concentration on important processes of development of customized offerings and
greater customer orientation
- Development of structure that can delegate processes of decision making to customers
- Management systems that drive towards development of results
- Development of culture that embraces industrial practices for real estate and thrives
on deep as well as enduring relationship (Hubbard et al. 2014).

17
STRATEGIC MANAGEMENT

18
STRATEGIC MANAGEMENT
Part 8: Ecosystem Linkages
Suppliers Business of the firm Channels Customers
1. Technology Vendor
1. No intermediaries and existence of direct sales as
well as marketing
1. Individuals who prefer lifestyle environment, lifestyle
communities in UAE, developments of waterfronts.
Competitors Partners
1. International players that forms Strategic Group I
1. Corporations that are proficient in customization of
systems
2. Technology Partners
3. Partnership with various quality contractors (namely
Arabian Cinstruction Company, Arabtec, Samsung, Al
Futtaim Carillion and many others)
Complements 4. Government: For various land grants
1. Tailored Applications and offerings to meet the needs of the clients
5. Strategic partnership with different well-known
developers namely Meraas Holding, Dubai Properties
Group as well as Dubai World Central among many
others
2. Extensive customization to satisfy exclusive reporting necessities Infrastructure
3. Supplementary range of services (management of change, re-engineering
procedures, management of project) and many others 1. Customized system of management
2. Various support functions
3. Implementation of advanced technologies in the real
estate sector by proficient professionals of the firm

Running head: STRATEGIC MANAGEMENT
Part 9: Management Agenda for getting to the desired position
Recommended Actions Resources Accountability
Agree for superior level strategic aims as well as objectives for the upcoming financial year Management and market teams Service Line Manager
Periodic assessment as well as review of current commissioning plans Management and market teams Market team and service line managers
Review previous engagement with stakeholders Management and market teams Market team and service line managers
Develop plans for the upcoming financial year keeping in minds the end users as well as their need Line Managers and operational heads Operational and strategic teams
Start of stakeholder engagement Marketing Managers Line managers
Discussion and agreement regarding the resources and capabilities after analysis and detection of requisite
organizational capabilities after systems engineering governance sets the strategy that helps in formulation of
context, scope, purpose, accountabilities as well as responsibilities
Operational managers and line managers Operational and line managers
Management team of the corporation, market teams, partners, managers of operations, human resource
managers and partners.
Human resource managers Service line managers
Prioritising already commissioning plans Operations managers and line managers Managers (operations) and construction business heads 2 weeks
Assessment of gaps in performance using different measures as well as dimensions namely six sigma among
many others
Line Managers Operations managers 3 weeks
Aligning resource and capabilities with the needs that cam help in attainment of desired value proposition of
Competitive prices for the finest lifestyle and luxury with customization carried out by customer orientation
Operations managers Consultants, line managers, marketing managers 4 weeks
Aligning resource and capabilities with the needs To receive constant delivery of the said value Line managers, operations managers Proficient experts/Consultants 3 weeks
Finalising plan for development Line managers and operations head Consultants, line managers 2 weeks
6 months
6 months
6 weeks
3 months
4 weeks
4 weeks
Date of Target
3 weeks