Systems Approach for Managing Complexity in First Equilease Company

This report discusses the complex situation and problems faced by First Equilease Company in managing their projects and how a systems approach can help in managing the complexity. It includes a tutor report, analysis of the case, client report, and weekly and general summary. The report also covers the departments in the organization, stakeholders' views, and ethicality statement. The document type is a case study and the type of assignment is a report.

Running head: SYSTEMS APPROACH FOR MANAGING COMPLEXITY
Systems Approach for Managing Complexity
Name of the Student
Name of the University
Author Note

1SYSTEMS APPROACH FOR MANAGING COMPLEXITY
Table of Contents
Q1. Tutor Report: First Equilease Company..............................................................................2
1.1 Background of the Case Study.........................................................................................2
1.2 Departments in the organization......................................................................................3
1.3 Description of the Problem Situation...............................................................................4
1.3.1 Complex situation and problems in First Equilease..................................................4
1.3.2 One complex issue....................................................................................................5
1.4 View of the Stakeholders.................................................................................................6
1.5 Ethicality Statement.........................................................................................................6
Q2. Analysis of the Case............................................................................................................7
2.1 HSM analysis...................................................................................................................7
2.2 SWOT analysis.................................................................................................................9
2.3 Logo frame.....................................................................................................................11
2.4 BECM............................................................................................................................11
2.5 Stakeholder Analysis......................................................................................................13
2.6 Explanation of the problem............................................................................................14
2.7 Understanding of the complexity...................................................................................15
2.8 Conceptual Mapping......................................................................................................16
Q3. Client Report.....................................................................................................................16
3.1 Definition of the Problem...............................................................................................16
3.2 Probable Solutions.........................................................................................................17
3.3 System Thinking and probable solution.........................................................................17
3.4 Recommended solution based on HSM.........................................................................17
Q4. Weekly and General Summary.........................................................................................18
4.1 Weekly Summary: Learned lessons and Skills..............................................................18
4.2 General Summary: Problems faced while doing the project..........................................19
4.3 Solving the problems......................................................................................................22
References................................................................................................................................23

2SYSTEMS APPROACH FOR MANAGING COMPLEXITY
Q1. Tutor Report: First Equilease Company
1.1 Background of the Case Study
The organization of First Equilease is an organization based in Kuwait, and it was
established in the year 2005. They mostly indulge in the leasing of equipment focusing on the
regions of Middle East. This particular organization is mostly known for its solutions that the
customers have pointed out to be trend-setting and innovative at the same time. The approach
that the organization follows throughout in their business is centred around the customers
solely. They are known to maintain proper ethical standards and are absolutely focused on the
sustainability of the organization having a sense of responsibility for the clients and the
environment at the same time through their services. The research had brought about several
surprises for the organization of First Equilease where the economies begin in around 8
billion to 10 billion for asset under management or AUM. The expected efficiency of this
organisation was found to be absent within these organisations and it was seen that this
economies of scale across finance human resources, operations and compliance was found it
every step within the organisation (Sainati, Brookes and Locatelli 2017). It was found that
especially in private equity the large firms are much less efficient than the small and medium-
sized organisations when it was calculated for the efficiency in private equity.
This complexity has been a growing problem within the industry and it is seen that
due to the feeling of this particular complexity management issue is resulting in buyout of
firms. The private equity industry has now been expanding in measuring in many ways in the
past 30 years and the problems have become much more complex in the recent times (Pinto
2017). It was found that the solutions have how to be having their own challenges adding to
inefficiency in expanding cost considerable and inhibiting scalability.

3SYSTEMS APPROACH FOR MANAGING COMPLEXITY
1.2 Departments in the organization
There are various departments within the organization of First Equilease that enable
the use of the services of the organization for various purposes to their customers. These
departments, based on which the organization provides services to their customers can be
listed as follows:
 Financial/Capital Lease: This particular department ensures that the
customer can retain the equipment after the completion of their use. This is the
way by which the flexibility of the services is retained.
 Operating/True Lease: This department is the best possible way for the
customers who would like to lease the equipment they require for only for a
short period of time for a specific period of an ongoing project. This
department provides the best possible solution to the customers who require
the equipment for a short period of time at the lowest possible prices without
any residual risk of end of lease term.
 Sales and Leaseback: This department helps the customer who has owned the
equipment already would like to free up capital tied up in the equipment for
use in business expansion.
 Hire Purchase Lease: This department allows the customers to use the
equipment for a shorter period of time with the exchange of regular payments.
 Short-Term Rental: This department provides the scope to the customers to
rent the equipment without having to deal with the maintenance or operation
of the equipment.
 Tracking of equipment: This department creates a specific service to the
clients with the help of providing them with effective tracking of the

4SYSTEMS APPROACH FOR MANAGING COMPLEXITY
equipment that they have rented or leased to enable better utilization of the
equipment to the customer.
1.3 Description of the Problem Situation
The problem with the organization of First Equilease has been the management of
complexity within the projects that they have been taken in and the way in which the
economy is handled within these organisations. In this particular case dealt with the
organisation of First Equilease, it has been found that the private equity firms and the
managers of the private market admin slowly turning to digital tools for improving the
complexity within the business that results to buyouts of the company (Stowell 2017). This
particular report will look about in specific parts within the organisation that has been
increasingly complex while handling a project and managing it. This is also addressed the
problems regarding that digital and analytical capabilities of the organisation that primarily
focuses on improving the operational efficiency and at the same time tries to reduce the
complexity that has been increasing within the organisation.
1.3.1 Complex situation and problems in First Equilease
There have been various identified problems that may lead to complexity within
handling the projects for the organization. Being an organization dedicated to lease or rent the
construction equipment as a service to the other companies based in Kuwait, there are several
issues that needs to be identified to make sure that the complex problems within the projects
and the business is detected and appropriate measures are taking against them. Following
would be 3 of these identified problems. One of these problems would be elaborated further
about their causes and effects or their complex situations along with the opinion of the 3
stakeholders about the issues:

5SYSTEMS APPROACH FOR MANAGING COMPLEXITY
1. Laws Governing the Operation of the Leases and their ever changing
nature: Leases are mostly identified to be following two specific kinds of
broad categories. One of them is capital leases and the other one is known as
operating leases. Where the former is designed for the facilitation of the
ownership, where on the other hand the latter is used for the rental agreements
and the options to buy them at the end of the lease. However, since the
organization is based in Kuwait and leases their equipment to people focusing
mostly on the Middle Eastern customers, there are possibilities that the
organization might face issues regarding the varied laws that govern the lease
operation laws from one country to another.
2. Responsibility of the equipment: There is a possibility that the equipment
can suffer excessive wear and tear which the customers might not want to take
responsibility about. This is also regarded as a potential issue that might cause
severe problems and complexity for the organization.
3. Financial Implications: There is taxation and renting issues that can lead to
severe complexity issues in the organization, leading to financial
disinformation and improper handling of the finances. This requires a financial
manager to handle the issues.
1.3.2 One complex issue
One of the most complex issues that are identified amongst the three issues
discovered is the responsibility of the equipment, which often is found to be the most
complex problem. There are various ways by which the equipment under lease or rent can be
found to be falling vulnerable to wear and tear. For this, it is found that the organizations
have rented the equipment do not wish to take responsibility of the damages to the

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equipment. This is a burden to the organization that needs to be taken care of within the
organization. This can also be regarded as a complex problem since it is often found that the
impact or effect that it has on the organization can be influencing the financial department
and can also be found to be having an impact on the inventory management department.
1.4 View of the Stakeholders
The stakeholders often view the complexities in the handling of the project
complexities from different perspectives. Every stakeholder involved within the project for
the organisation of First Equilease, could be affected by this complexity within the project
and the issues directly or indirectly view the vulnerabilities and issues from various
perspectives given their involvement within the organisation. The people who would be
affected the most are the organisation itself and further they cannot provide the appropriate
services to the customers. From the executive within the company to everybody involved
within 8 including the end users, which are the customers can be regarded as stakeholders and
these problems effects of the stakeholders in different ways.
1.5 Ethicality Statement
The ethicality statement in this particular management of complexity within the
project would set out the ethical aspirations that the organisation would implement in their
aspiration of working with the other organisations and releasing them equipment. For this
particular reason that company would like to state that there would be absolutely ethical in
terms of their releasing of equipment to other organisation all over Middle East providing
them the required equipment without avoiding any legislative terms of the country in which
the organisation has been residing in.

7SYSTEMS APPROACH FOR MANAGING COMPLEXITY
Along with that the company would like to specify their customers that they would
have all specified documentation and paper work that will effectively define all the terms and
conditions that the organisation has set for leaving the equipment and handling their and here
at the same time during the usage and would also like to ensure that customers that only after
they have completely resolved and accepted the terms and conditions of the organisation they
would be able to receive their services (Eriksson, Larsson and Pesämaa 2017). None of the
provided services would be available without any documentation process and the acceptance
of both the parties.
Q2. Analysis of the Case
The analysis would be based on 5 basic tools that would analyse First Equilease and it
service of lending equipment to other organization as their services and expanded over the
number of legal entities that this organisation creates for housing that products, operations
and assets (Lam and Law 2016). The analysis would include HSM method, SWOT analysis,
Logo frame, BECM and Stakeholder Analysis.
2.1 HSM analysis
The HSM analysis or the Hard Systems method analysis understands that the problem
is not a general case, rather than this case is has special issues that deals with the problems
that equipment leasing organizations deal with in specific cases where they organizations that
First Equilease is dealing with is established in countries outside Kuwait. This analyses and
states the fact that the organization needs to develop unified policies to keep on with the
operations of the organization. These would be done by analysing the below mentioned
activities in the project:

8SYSTEMS APPROACH FOR MANAGING COMPLEXITY
Problem/Opportunity (diversity of legal systems): The problem regarding the
management of this project deals with the diversity of the legal and taxation system in which
the company functions out of the country that it is established in.
Implementation (Legislative and Taxation Policy): The possible solution to this
problem deals with the implementation of a new legislation and taxation policy to be
implemented within the organizational policy.
Choice: Two choices can be considered for achieving a solution for the problem that
has been identified: 1. To carry on the project within country 2. To carry on the project
outside the country
Option Testing: Both of the options are tested to find out the possible inferred
solution to the problem that is found out to be developing other options preferred as well.
Developing Options: Trying both these options, there was a possibility of another
option developed, which was developing a unified policy so that the company can operate
both within the country and outside the country.
Measuring Performances: Measuring the performances are required to find out how
the developed option is working right now.
Defining Objectives: The objectives are to be defined after finding out the
performance measurement.
Analysing Situation: The situation is to be analysed to find out the feasibility of the
developed option, so that it could be easily put up with how the situation needs to be handled.

9SYSTEMS APPROACH FOR MANAGING COMPLEXITY
Figure 1: HSM Analysis
(Source: Created by Author)
2.2 SWOT analysis
Strengths
The strengths of the company include their agility and service quality. The clients
have had a good experience in leasing equipment form the organization.
Weaknesses
The weakness of this organization is its establishment of the company in Kuwait and
service product. Due to this, the company faces various problems for providing services to
other companies that do not fall within Kuwait come under legislative measures for providing
services that the company has not developed a unified policy for.
Proble m/Opp ortunity(diver sityofle galsystem s) Implem entati on(Legisl ativean dTaxati onPolicy ) Choice -1.Wit hinCou ntry
2.Out sideCo untryOption Testin g
Develo pingO ptions
Measu ringPerfor mancesDefini ngObjec tives
Analys ingSitu ation

10SYSTEMS APPROACH FOR MANAGING COMPLEXITY
Opportunities
There are loads of opportunities for the company to be spread their services to other
organizations all around the world once it has a unified operating policy developed keeping
all the legislations in mind.
Threats
The threats that the company faces are from other competing organizations which are
providing the same services that reside in close proximity or in the same country. The threats
are that the other organizations are established in where First Equilease would like to provide
services to.
HELPFUL HARMFUL
INTERNAL
ORIGIN STRENGTH
Agility and service quality
WEAKNESS
Establishment of the company in Kuwait
EXTERNAL
ORIGIN OPPORTUNITIES
Unified operating policy
THREATS
Other competing organizations
Figure 2: SWOT Diagram
(Source: Created by Author)

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2.3 Logo frame
Logo Frame analysis is the Structural Frame analysis of First Equilease that
enunciated that the company needs to refurbish all the company policies about the issues that
have been found. The analysis through the LOGO frame or the Logical Framework can be
established as below:
Assumptions MOV OVI Goal
1. Problems in delivering leased
equipment to other countries out
of Kuwait
1. Create a unified company
policy keeping in mind about
the complexity of legislative
rules following all the countries.
2. Taxation law variation 2. Create and handle finances
and transactions regarding the
problems in having a unified
taxation law.
3. Hire proper personnel for the
uniform law development
3. Train the existing customers
for the understanding of the
uniformity in the complex
situation and develop a unified
company policy for the business
operations and the transactions.
Table 1: Logical Frame Implementation
(Source: Created by Author)
2.4 BECM
Business Continuance and Emergency Management analysis states how the
organization can analyse the framework in which it has been currently operating in to find out
the unified approach in the operation management for the organization. This deals with how

12SYSTEMS APPROACH FOR MANAGING COMPLEXITY
the complexity in the management of the project can be handled to continue with the
operations and services for First Equilease.
To conduct the business continuance and emergency management analysis for First
Equilease, the analysis has to be based on four key factors consisting of, prevention,
preparedness, response and recovery. Following would be the analysis of the organisation
based on these four constraints to formulate the BECM analysis:
B-Ball
As the analyst, the first ball on BECM is the prevention ball. This detects the issues
that needs to be justified for the risks associated with the project and how to prevent it.
Prevention: This particular analysis is based on the detection of the risks associated
with the current ways by which the organization handles its current projects in leasing the
equipments out of Kuwait. This should be identified to prevent any issues occurring in the
process of analysis even before they arise is through the risk management plan. Analysing the
associated risk in the project can be done by applying appropriate measures to eradicate them.
E-Ball
E-Ball is the second ball in the analysis that enunciated experiences, which gives rise
to the preparing phase in the analysis of the risks identified.
Preparedness: After identifying the risks associated with the project management
complexities organisation also needs to be prepared for any kind of associated complexities
that might arise during the entire project. For this a business impact analysis should be done
to identify the impact of the risk management plan and how the business would respond to
project constraints.

13SYSTEMS APPROACH FOR MANAGING COMPLEXITY
C-Ball
This is the third ball in the analysis that enunciates contextualizing which states how
to respond to and recover from the identified issues in the project context.
Response: After preparing for the associated complexities with handling the project,
the company also needs to respond to them and this would be formulated with the help of
incident response plan. The organisation would make a plan for or responding to every
incident that might arise during the entire project management timeline.
Recovery: The occurrence of the incidences would help the organisation in preparing
a plan for the recovery system as well. This can be formulated by a recovery plan to make
sure if the organisation goes through any kind of laws that would be prevented with the help
of a recovery plan.
Figure3: BECM Analysis
(Source: Created by Author)
Prevention
(Risk Management
Plan)
Preparedness
(Business Impact
Analysis)
Response
(Incident
Response Plan)
Reocvery
(Recovery Plan)

14SYSTEMS APPROACH FOR MANAGING COMPLEXITY
2.5 Stakeholder Analysis
Following would be the stakeholder analysis for the organisation of First Equilease,
which would effectively describe which members present within and outside the organisation
would be affected by the outcome of the project of equipment leasing (Lientz and Rea 2016).
The project would hold the justification of why these individuals have been incorporated
within the count of stakeholders with the justification by which they are directly or indirectly
affected by the outcomes of the project as per its progression. The analysis of the
stakeholders, both direct and indirect in nature, can be presented in the tabular form as
follows:
Stakeholder Internal/External Direct/Indirect effect of the
project outcome
Managers of the project Internal The stakeholders are directly
affected by the outcome of the
project as any negative or
positive result of the project
would be affecting their
management skills and handling
of the complex project (Lee et
al. 2017). The management of
the entire project is dependent
on the planning and estimation
of the project managers.
The team working on the
project
Internal The stakeholders are also
directly involved with the
project and the entire
complexity of the project arises
from their developmental and
project handling skills. These
people also affected by the
outcomes of the project directly
because they are actively
working for the entire project.
Organizations leasing the
equipment
External These are the external
stakeholders who are not
directly affected by the project

15SYSTEMS APPROACH FOR MANAGING COMPLEXITY
outcomes for First Equilease.
They would be affected if the
organisation from which they
lease their equipment do not
function but they can always
move on to another organisation
and not feel the project outcome
or not be affected by it at all.
Table 2: Stakeholder Analysis
(Source: Created by Author)
2.6 Explanation of the problem
The problem in the entire project identified is the variance of geographical areas and
their effect on the legislative regulations regarding leasing equipment. The identified problem
is affecting on the financial constraints and the organisation as a whole (Botchkarev and
Finnigan 2015). There are various reasons due to which the skills and planning of the project
needs to be justified in the most effective way so that the organisation does not face any
problem while serving other organisations who would be interested in leaving that equipment
but established in in a completely different geographical area (Kerzner 2017).
2.7 Understanding of the complexity
The complexity is well understood in this regard as all the problems regarding the
issues in releasing the equipment from other organisations residing in a different geographical
area is not affecting the organisation in some particular way or in a unified direction, but this
problem has been affecting the organisation in various ways (Takey and Carvalho 2015). It
has affected the organisation financially and has also affected the resources of the
organisation. The financial management of the project is much difficult to handle and it is
needed that a particular person is hired to manage the finances. Moreover, the organisation

16SYSTEMS APPROACH FOR MANAGING COMPLEXITY
should also develop the skills of the other existing employees as well so that they can deliver
or develop a policy for the organisation that would be unified for or the organisation to have a
free business operation in every country irrespective of their legislative laws.
2.8 Conceptual Mapping
Figure 4: Conceptual Mapping
(Source: Created by Author)
Q3. Client Report
3.1 Definition of the Problem
The problem defined from the end of the client is that they are finding it difficult to
lease the equipment from the organisation of First Equilease that the required for managing
their project or any other activity involving the equipment (Burrough et al. 2015). For this
they are going through several documentation and paper work that is taking a lot of time and
Problems with
First Equilease
Legislative and
Taxation
Variation
HSM analysis
SWOT Analysis
Logo Frame
Analysis
BECM Analysis
Stakeholder
Analysis
Solution
Unified contract
while leasing
equipments
Unified business
policy
Uniform HRM
policies while
recruitment

17SYSTEMS APPROACH FOR MANAGING COMPLEXITY
thus have been causing a lot of money due to the delay in in paper works. The documentation
process is much elongated and it would have been much easier if any organisation from the
locality would have been selected for this particular project of leasing an equipment.
3.2 Probable Solutions
There is only one probable solution that is applicable in this particular situation and
this is that the organisation of First Equilease can be given two options as well as the
organisation itself. The organisation can convey First Equilease to complete the
documentation process regarding the variation in legislative issues regarding leasing and
equipment for only operate in their local areas (Marle and Vidal 2016). The organisation can
think about closing the contract with First Equilease and trying to contact any local
organisation that to release the same equipment but from a local area.
3.3 System Thinking and probable solution
System thinking in this particular issue states that the organisation would offer The
Other organisation to share some of their employees who are skilful enough to develop an
operation policy for the organisation that would help them in operating for various
organisations irrespective of their geographical area (Ramazani and Jergeas 2015).
3.4 Recommended solution based on HSM
Thus the company can charge the other for some money providing them with skills
that would have taken a much longer time if they would develop it themselves. This would be
a probable solution to the problem after analysing the problem. This approach is regarded as
the HSM or Hard System Methodology as this has been analysing special cases in which
systems and operations of the project is being analysed.

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Q4. Weekly and General Summary
4.1 Weekly Summary: Learned lessons and Skills
The organization of First Equilease is based on leasing equipment for organizations
based in Middle East, there are various problems that have been found to be occurring due to
the problems that have been stated above (Lam and Law 2016). The organization is based in
Kuwait and it offers organizations from the entire Middle East to lease the equipment they
provide. The problems with the organization and its management of the project while
performing the analysis on a weekly basis would thus be provided as below:
Weeks Lessons Learned Skills
Week 1 It was found in the first week
that the business of equipment
leasing needs to follow strict
instruction about the legal
legislations for all of the
countries that the organization
was trying to provide services
to.
This needed to be well
understood or there could be a
possibility that the organization
would face legal charges for
breaking the laws in one
country regarding equipment
leasing, which is possibly legal
in a different one.
Week 2 One of the most important
lessons learnt in this regard has
been with the responsibilities
about handling the equipment
that are leased to other
organizations. Customers are
often found to be not taking any
responsibility about the wear
and tear of the leased
equipment.
With this particular lesson
learnt, it needs to be mentioned
that the organization should
develop specific skills to
develop a policy to deal with
this problem.
Week 3 This week, the learning found
that the organization needs a
financial manager to consider
all the taxation issues and the
diverse situations that reside
due to the variations in the
different countries.
From this problem the lesson
learned is that there is a need
for a proper financial manager
who would efficiently and
effortlessly handle all the
financial issues that occur
within the organization
regarding the operations of the

19SYSTEMS APPROACH FOR MANAGING COMPLEXITY
business.
Week 4 In the fourth week, it was found
about there are ways by which
the problems in equipment
leasing organizations can be
solved, the policies can be
merged together.
The problems in variations in
both the taxation and
legalizations can be formulated
into one uniform policy
developed for the organization
to follows.
Week 5 This week, the employees learnt
how that financial problems can
be understood with the
perspective of a decision
making system.
The employees learnt the
constraints about the
understanding of the financial
prospects of the organizations
through the policies and hence
it were easier to make decisions
based on the problems that the
organization is facing right
now.
Week 6 In the last week, the subjective
decisions were made according
to the financial and taxation
constraints along with the
legislative differentials.
This was the last week that
could teach how the
organizational policy should be
developed on account of the
variety found within the
organizations that First
Equilease would serve based on
the countries they were
established in. The skills
acquired were the final policy
making decisions taken about
keeping all the constraints of
the organization in mind,
including financial and
managerial aspects.
4.2 General Summary: Problems faced while doing the project
While performing the project for analysing the organization of First Equilease, there
were many problems found during the entire project. Analysing the problems that the
organization faces had been a challenge for the analysts while performing the entire task
regarding finding the problems in the organization while performing their day to day
activities in leasing the equipment to other organizations (Sainati, Brookes and Locatelli
2017). The overall problems that has occurred from the entire analysis process has been

20SYSTEMS APPROACH FOR MANAGING COMPLEXITY
found to be extremely intriguing and helps in learning from the problems that had occurred to
make sure that all the problems can be eliminated further or can be prevented from occurring
with acquired specific skills.
The first thing that has been identified in this case has been the overall spread of the
organization. First Equilease is based in Kuwait, but it serves various organization all around
the world. The organization is mostly focusing on the organizations based in the entire
Middle East (Olins 2017). During the analysis, it was found that there is a legislation issue
that needs to be specified before the leasing of the equipment occur. The lesson learned from
this analysis is deciphered as the initial phase before starting an equipment leasing business
(Burtonshaw-Gunn 2017). A business like this needs to follow the basic legislation of the
country in which the organization is based at. Before that, the organization also needs to
consider its zone of operation. The countries in which the organization is trying to provide the
services to needs to be listed along with the legislations of all the countries regarding the
leasing business concerning equipment to other organizations (Kerzner 2018). Only after this
initial requirement is met and the company policy includes all the legislations accordingly.
This was a huge problem as including all the legislation was found to be a primary problem
according to the policy creation for the organization. The primary problem in this regard was
forming a uniform policy for the organization to provide services in all the countries and the
organizations within them.
The next problem that was found to be a basic problem was regarding the equipment
handling issue. It is a primary fact that if the leased equipment is used at a random level in the
companies that it is being used, it is bound to experience wear and tear and for that the
companies that has been leasing the equipment needs to bear the responsibility (Harrison and
Lock 2017). However, the organizations leasing the equipment are not at all ready to bear this

21SYSTEMS APPROACH FOR MANAGING COMPLEXITY
particular responsibility and the company thus faces problems while handling their inventory
in this regard. The primary problem was handling the inventory and the assets of the
organization. The equipment involved in this case is regarded as the primary belonging of the
organization and it is included in the asset of the organization as well as an entry in the
inventory (Pinto 2017). When the organization leases the equipment to another, they do not
count this as a perishable one and it is found that the organization faces a lot of problem when
the equipment is worn out beyond use and the organization leasing it does not want to take
any responsibility for the case. This is a financial problem that the company has to bear.
The final problem found was to be the financial management and taxation issues that
the company has to deal with regularly. Just like the legislation issues, there are also
problems regarding the taxation issues as it differs with different countries (Qazi et al. 2016).
This is a problem as financial recoding is difficult to follow through without a proper
personnel who would be designated to unify the taxation and financial policy and information
within the organization. There is found to be huge impact on the financial asset of the
organization as they deal with the problems while leasing and billing of the equipment to
other organizations based outside Kuwait. It is a lingering problem regarding the variation of
the taxation rate and the relative size of the monthly payments.
One major problem that was found during the analysis is that the threat from the
competitors are also significant. Most organizations are aware of the problems that occur
from the variation in the countries and this is why most of these organizations tend to lease
their required equipment from the local organizations only (Stowell 2017). This acts as a
disadvantage to the organization since it tries to operate in the entire Middle East including
the problems occurring through the variation about the legislations.

22SYSTEMS APPROACH FOR MANAGING COMPLEXITY
4.3 Solving the problems
While analysing the problems, it was found that all the issues identified had specific
solutions which was easily attainable. The solutions to these problems can be listed as
follows, and this had been organized according to the analysis:
The first solution to the problem is attainable with the help of a unified company
policy that needs to be prepared by the executives of the organization in responsibility of the
effective and crucial decision making for the organization (Kerzner and Kerzner 2017). They
would find out all the legislative measures required to be followed by all the countries that
the organization is providing services to and after that a unified policy needs to be created
considering all of them and the country in which the organization is established in. This is to
be shared with all the employees of the organization as well as the other organizations who
would be interested in having equipment leased from them.
The next problem regarding the responsibility of the wear and tear of the equipment
by making sure that the equipment to be enlisted as a perishable one and the handling of the
projects keeping in mind about this (Svejvig and Andersen 2015).
The last problem can be solved by hiring a proper financial manager for the
organization will skills and efficiency of solving all the identified issues.

23SYSTEMS APPROACH FOR MANAGING COMPLEXITY
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