Strategic Management Report: Emaar Properties Plan Analysis

This report provides a comprehensive analysis of Emaar Properties' strategic management. It begins with an examination of the company's current market position, including its subsidiaries, internal organizational culture, and external environment, using a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The report then critically analyzes the effects of existing plans on the organization, applying Porter's Five Forces model to assess the competitive landscape and value chain analysis to understand the company's primary and support activities. The Boston Consulting Group (BCG) matrix is used to evaluate the performance of different business units. The assignment covers the strategic plan by analyzing the position of the company in the market and the effects of existing plans on the organization. The report applies various strategic models and tools to evaluate the company's strategic options and proposes a plan for strategy implementation.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the student:
Name of the University:
Author Note:

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1. Critically review organizational strategic plans.
The aim of this report s to discuss the strategic plans of one of the most reputed company in
the real estate and construction industry of the Arab Emirates namely Emaar properties. This is
one of the most valuable and admired real estate development companies in the world which was
established in 1997 by Mohamed Alabbar.
1.1 Critically analyze the position of an organization in its current market
Emaar Properties has more than ten subsidiaries in the different sectors in the market of Arab
Emirates which perform radically to serve the overall growth of business in the country. The
subsidiaries include Emaar International, Emaar Hospitality, Emaar Malls, Emaar Hotels &
Resorts, Emaar Retail, Burj Khalifa, Emaar Community Management, Emaar Technologies,
Emaar Industries and Investments, Amlak Finance, Emaar Investment Holdings and many more.
This company is the associates in the education, retail, and healthcare and hospitality business
along with investing in the financial services. The company has a strong presence in the Middle
Eastern region which is helping it to expand itself in the overseas markets like Africa and Asia.
The success of any company depends upon the internal organizational situation or internal
environment like working capacity, relation with the employees, job satisfaction and
organizational behavior. This company is one of the biggest land real estate developers and
known for various measure Mega projects like developing of Burj Khalifa the tallest building in
the world. This company was established in 1997 but 32% of total asset of this company are
owned by the government of Dubai1. It has entered into the joint ventures with different
companies to expand its operation. This is the reason why it effectively manages the human
1 Emaar.com, "Who We Are | Emaar Properties.". in Emaar.com, , 2020, <https://www.emaar.com/en/who-we-are>
[accessed 17 January 2020].

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resource so that they can contribute their skills in the success of this company. The company
recruits loyal workers from different parts of the world. The corporate culture of this company
has encompassed the shared values standards attitude and belief along with other features which
define the operating philosophy of Emaar properties.
The internal organizational culture of this company is supportive of growth both for the part
of the employees as well as of the company it has formed a strong culture that is profoundly goal
oriented and ambitious. The leadership expects the employees to follow ethical norms set by
them. In addition to this the company is highly customer and market oriented therefore expect all
the employees will work towards delivering a high quality standard for the customers2. The
company culture embarks risk taking mentality among the team members because without taking
risk no company can reach the Pinnacle of success. The organizational culture is team oriented
where the team members are allowed to make decisions for achieving objectives. It has a diverse
workforce from more than 80 nationalities and manage the multiculturalism quite efficiently.
Professional working environment it is always preferred in Emaar properties. In the
contemporary business environment it considers the human resource to be asset. Over the year
therefore the company has utilized various training methods for developing knowledge base and
skills of the employees3. This company believes in providing high quality product and service to
the customers therefore invest highly in maintaining quality of the steps in terms of performance.
Thus the company has employed the groups of highly qualified staffs and uses training to
upgrade their skills. The company uses various Strategies for upgrading the knowledge of its
employees first of which is using external training provider and another is on the job training.
2 SS. Alqahtani, King Saud university's strategic plan implementation (KSU 2030). Journal of Competitiveness
Studies. Vol. 24, no. 2, 2016, p. 1.
3 B, Van der Kolk, Schokker T. Strategy implementation through hierarchical couplings in a management control
package: an explorative case study. Journal of Management Control. Vol` 27 no. 2-3, 2018, pp. 129-54.

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The employees are satisfied with the effective communication system and management
philosophy of this company. It aims to become leading developer in in Dubai hence uses
bureaucratic leadership style. It has decentralized management style for controlling subordinates
to achieve business objectives.
Depending upon the aim to reach highest standard as well as delivering sustainable products,
Emaar Properties has developed great connection with the stakeholders. The company has a great
connection with the governments off the market where it operates. It has developed connection
with the suppliers from different parts of the world to acquire the best quality raw materials and
other needed elements for providing the best quality product and service to the customers4. For
this, Emaar Propertieshas gone through different joint ventures and partnership with other
companies and working with them more successfully.
SWOT analysis
strengths weaknesses
 Support from the governments in
every market the company is operative
 Strong regional partnership
 Great business model
 Foreign expansion
 Product diversification
 Over exposure in the middle east
countries
 Labor issues
 Quality problems
 Weaken funding and operation
strategies
opportunity threats
4 A, Lampaki, Papadakis V. The impact of organisational politics and trust in the top management team on strategic
decision implementation success: A middle-manager's perspective. European Management Journal, vol. 36, no.5
2018, pp. 627-37.

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 More investments in the foreign
market in real estate business
 Considered position in the domestic
market
 Diversification of revenue
 Global economic downturn
 economic protectionism
External environment:
Political:
 Each of the 7 emirates have their own governmental organizations and allow flexible
management.
 The emirates indulge in political conflicts with the neighboring countries regarding the
ownership of land and oil reserves.
 The country has healthy trade connection with other parts of the world.
Economic:
 The country has exceptionally high GDP rate because of overall oil trade.
 The unemployment rate is therefore low.
 This market due to oil deposit has high foreign direct investment.
Social:
 The citizens have well-paying jobs for which they lead a comfortable life 5
 Cultural diversity in this place is higher than expected.
5 X, Zhang, Song, H., Gao, G., Ma, L., Liu, T. and Liu, L., December. Evaluation Framework for Strategic
Implementation Process in Large Enterprises. In Third International Conference on Economic and Business
Management (FEBM) 2018. Atlantis Press.

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 Religion here decides the norms, clothes and behavior of the people therefore advertising
and product development has important factors to keep in mind.
Technological:
 The young population is teach savvy and possess high quality technological tools for
everyday use.
 The government allows different technology companies to work and contribute the
development.
 The companies are allowed to use high end technologies like automation and other tools r
machines for successful operation.
Legal
 Legalities are strict in this market as many of the international companies operate here.
Through strict legal measures the government pressurizes them to operate ethically.
Environmental:
 The country has a hot and dry climate hence agriculture industry does not flourish.
 Securing the environment through sustainable use of oil and other resources are protected
here.
1.2 Critically analyze the effects of existing plans on organization.
Porter’s Five Forces Analysis
Porter’s five forces model in case of Emaar Properties, assess the attractiveness and measures
needed for attending maximum profits.
Entry of competitors:

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This company does not have very strong competitor base in terms of new entry. This is due to
the fact that the company has already created its popularity in the national market. Here the
presence of strong marketing arm, building license, legal compliance and capability of the
municipality to support building in the lands in the domestic market are the barriers6.
Threat of substitute:
The threat of substitute is always present in this market because their real estate industry is
highly populated with various efficient companies. Therefore the substitute product can hamper
the profitability of this company.
Bargaining power of suppliers:
The supplier’s network is present within the domestic market as well as in the international
market stock therefore the company may choose any of them who provide high quality raw
materials. There the power of suppliers are low here7.
Bargaining power of buyers:
Products and services of this company and highly popular in both domestic as well as
international market. This is due to the fact that the quality and design of the products are
unmatchable. However the price structure is higher because of the quality. This can be a threat
for the company to lose customer.
Competitive Rivalry:
6 Kotler, P, & K Keller, Marketing Management. in , New Jersey, Prentice Hall, 2011.
7 V, Kirinic, Kozina M. Maturity assessment of strategy implementation in higher education institution. InCentral
European Conference on Information and Intelligent Systems 2016, p. 169. Faculty of Organization and Informatics
Varazdin.

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Main competitors of this company are Nakheel, DAMAC, Meydan, Majid Al Futtaim,
Henninger, Meraas, Al Ghurair, CBI Properties, SP International Property Developers and
Alhayat Property Developer. All of these competitors have their scope in te local and
international markets. Hence they lead to feel threat by the company.
Value chain analysis:
Emaar Properties value chain analysis points out the fact that the company has primary
activities relating to inbound logistics, operation, outbound logistics, marketing and sales and
service.
Inbound logistics: the company has developed different warehouses in different parts of
the country. It has 32% share of the government of Arab Emirates therefore the functions like
receiving and managing inventory take place smoothly.
Operation: the procedure to convert raw materials into the finished product the company
uses financial resources human resources and patents8. The high quality of products and services
provided by this company are highly praised for their tenacity and dependence.
Outbound logistics: Emaar Properties has various renowned project within the country as
well as in the international markets. It has developed the Dubai Mall Dubai, Burj Khalifa,
Downtown views, Arabian ranches, Dubai Marina and Dubai Opera House. In addition to this
the international projects include Beige Misk, Jeddah Gate, King Abdullah Economic City,
Tuscan Valley Venture and Crescent Bay. All of these finished products are unique and
impeccable in their features.
8 Browning, Tyson R. "Applying the PVRO Framework to the Strategy-Implementation Gap." 2018.

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Marketing and sales: the company targets the governments of the country is mainly who
are responsible to develop buildings and other architectures in the market. In addition to this the
company targets International organizations and partners with them so that visibility is enhanced.
The company markets in different National and international magazines which are limited to the
reach of their target customers only.
Service: Emaar Properties has created such a place in the national and international
market through its high quality products that customers experience the uniqueness of the
products every time. The maintenance and repairing of the buildings and other products are the
responsibility of either the government or third party maintenance organization.
The support activities are-
Procurement: the company has developed a strong network of suppliers who provide high
quality raw materials from different parts of the world9. the uniqueness of the finished products
are of high quality therefore the company does not depend upon only one supplier but employee
different categories of experienced supplier network.
Technological development the types of products the company provides are unique in
their way. The buildings which are developed by this company are not imitated anywhere.
Therefore the gigantic and unmatchable projects are properly handled with high end tools.
Human resource management: The Company employs valuable resources to the farm
because a significant portion of human resource is highly trained and leads to productive output
for this organization. The employee groups are loyal and motivated in this company hence the
retention rate is also high. This translates into return value for the customers of the company.
9 Gupta, S, & M Starr, Productions and Operations Management Systems. Boca Raton, FL: CRC Press, 2014.

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Infrastructure: the composition of Management team are supportive of innovation and
have the capacity to hold their position in every way. These managers are responsible for
planning, accounting and quality control. The patents of Emaar Properties are valuable because
this help the company to sale products without competitive interference. This results in Greater
revenue for the company and provides scope for licensing revenue. The distribution network of
this company is a valuable resource because this helps in reaching out more customers.
Distribution network insurance greater revenue for the company and promotion activities for
translating into sales. Finally the research and development is overseen by the management
because it allows innovative features to be included in the design of the buildings and other
products established by the company.
Boston growth-share (BCG) matrix:
Star:
Emaar Properties' investment and financial service unit operates in the market which
shows potential growth in the present as well as in the future. Returns a significant amount of
income and should vertically integrate other firms in the supply chain. This can help earning
more profits. This is also the product of generating greatest sales in the product portfolio. The
market has high demand for quality service therefore there is a potential buy this company to
innovate features on their product through proper research and development process. The
company has 20% market share in this category because this is the market leader. The overall
category is expected to grow within next five years. The company needs to use the current
products for penetrating the market and improve its distribution to reach out to the untapped
areas.

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Cash cows:
The real estate business unit is the cash cow of this company. This has been operating for
more than two decades and on a significant revenue. The overall market is declining as the
companies are managing their suppliers by themselves rather than outsourcing the materials. The
innovative product which has market share of more than 25% can help the company to influence
both National and international market effectively10. Therefore the company needs to invest more
in the designing process for overwhelming the competitors11. This well guide the company to
grow and turn this cash cows into star. The international hospitality and education business unit
is the cash cow of this company. This business unit has high market share as most of the
customers are depending upon high quality product and service of Emaar Properties. If this
company is not using this particular category positively then it will turn into dog unit.
Question marks:
Emaar retail business unit is in the question mark in the BCG Matrix. this is due to the
fact that the recent trends within this market show less interest of the customers to the choice of
retail companies because of the high competition in the market it is showing high market growth
rate but is the company does not invest much in R&D in the retail business, therefore innovative
features are not being added effectively. This particular category has failed to capture the rapidly
growing market by giving competitive prices. This has incurred loss in the last few years. The
new market of Africa and Southeast Asian countries need to be captured because of attractive
market position. Low sales are the result of inability to differentiate product according to the
demands and buying capacity of the customers.
10 Mohajan, H., 2017. An analysis on BCG Growth sharing matrix.
11 David, F.R. and David, FR, Strategic management: A competitive advantage approach, concepts and cases.
Pearson, 2019.

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Dogs:
The hotels and resorts business unit here is the dog’s category. Emaar Properties has this
particular business unit in various International markets which are showing dependability and
growth however the issue of environmental concerns the demand is gradually declining stock the
company has negative profit for this strategic business unit and it is expected that there will be
less investment in this business category. However the company has started to find out
sustainable and innovative solution for this problem by reducing carbon footprint, green building
projects in different parts of the world.
Market share:
Figure 2. market share
(Source: 12)
12 Emaar.com, "Investor Relations | Emaar Properties.". in Emaar.com, , 2020, <https://www.emaar.com/en/investor-
relations> [accessed 17 January 2020].