The Essay On Art Of War & PEST Analysis In UAE Economy.

Question:

Discuss about the Strategic Management for Warfare and Strategy.

The Art of War has always been considered as a definitive text written on the basis of military warfare and strategy. It was written in ancient China by Sun Tzu and ever since it is inspiring business, athletes, individuals and even the military personnel to beat their contenders (Hanzhang, 2007). The key ideology of the books is to gather sufficient understanding about when to fight and when not to fight. This is the book suggests to avoid anything that is strong and asks to attack the weak. Knowledge of luring the enemy is another aspect through which one should pretend to be strong when he or she is weak and on the contrary pretend weak when he or she is strong enough (Tzu, 2017). Finally knowing own strengths and weaknesses is also essential. If a person is well aware about his or her own self as well as the enemy it would be easier to won a battle.

As per the book the strategies of war should be designed on the basis of the circumstances and the strategy should be flexible as well so that it can be modified at any given point of time. The book is solely based on designing strategies of war however, later on researchers have observed that these suggestions regarding strategic design can also be applied in several real life scenario (Tzu, 2017). It suggests to attack the enemy whenever the enemy is not prepared. It suggested not to attack the walled cities which signifies that it is not wise to attack a guarded or well prepared organization. The five forces which are essential for winning a battle as specified on this book are timings of starting a fight. In order to won a fight one should be well known about when to attack when not (Tzu, 2017). Ability of handle superior and inferior forces at the same time also contributes largely in winning a battle. If the army is animated throughout all of its ranks the chances of winning increase. Finally when one can prepare him or herself and wait for the appropriate time when the opponent will be unprepared will win. Simply “Art of War” is a book that effectively teaches how to believe the fact that the enemy is not going to atatck but to be ready to receive them.

PEST Analysis

PEST analysis is an analytical tool that helps to analyse the external environmental factors. Such as the political, environmental, social and technological factors that may affect the business organisations or any business entity.

The United Arab Emirates constitutes of a combination of seven separate and independent emirates. The constitution that was established and finalized is considered to be stable in the year 1996, states that all of the power is not specifically concentrated to the federal institutions but it remains to the individual emirates along with their rules (Sengpoh, 2015). No political parties are allowed in UAE and the Federal Supreme Council choses the supreme ruler of the countries.  The ruling family of each of the Emirates is an associate of the supreme council which held is responsible for electing the president and vice president for a term of five years. Presently the political environment of UAE is stable and is in favor of the business entities (Muhammad Siddique, 2015). The individual governance of the seven emirates certainly possesses different factors which affects them individually. On the other hand, the emergence of globalization and continuous economic growth in this country the expatriate population in the country is increasing.

The economy of United Arab Emirates has depicted significant economic and social improvements since it was established (Belwal, 2017). Economists argue that it can be considered as a role model for the countries to follow the economic modelling. Irrespective of the various economic developments UAE has also given rise to a business enabling economic environment which has helped it to attract foreign investment (Aljeeran et al., 2016). The UAE economy can be distinguished as the most open economy in the world. It is characterized with the features of higher per capita income and a high trade surplus generated annually. Presently the country offers a Free Trade Zone with zero taxes in order to attract the foreign investors. The economy of the country is mainly dependent over the oil exports that contributes up to 30% of the annual GDP. The country possesses third largest oil deposits in the world and as a result it is mainly influenced by the oil sector. As the data suggests the gross domestic product of UAE was nearly equal to 349 billion US dollars during 2016 (Sbia et al., 2014). This evidently signifies that the economy of the country is in a very good health and standard.

Political Environment of UAE

The seven emirates of United Arab was established in the year 1971 and presently its population is 6.4 Million which includes 13.5% Emiratis and 86.5% expatriates. It is characterized as a highly developed country with a significantly high GDP growth rate (Ismail, 2015). In the case of every culture prevailing in the world phenomenon like bureaucracy, authority, verification, creativity and accountability are experienced in different manner. There is a common belief that internationalization will help to develop a common culture throughout the world. Culture is the way through which various problems can be solved. The country presently possesses a rich Muslim culture. Citizens are educated and possesses a high standard of living. Presently the country is investing largely in turning the desert into greenery.

As UAE is a highly developed country it invests largely in the research and development segment. The technologies used in the country are designed in such a way that these remain environment friendly. It plans to develop and implement technological frameworks without affecting the environment. The citizens of the country are quite conscious about the environmental sustainability (Aljeeran et al., 2016).

From the summary of the book Art of War it is quite evident that before attacking one should study his or her opponent first. In terms of the economy of UAE it is not at all the appropriate time to compete with the country. The other countries should wait for the appropriate time when UAE will be unprepared and then they should pose strong competition before the country.

The telecommunication industry of UAE is a duopoly which constitutes of two organisations which are namely Etisalat and DU. Both of these companies are majorly owned by the government while the second operator Du was introduced in the market during 2007 and has gained a significantly large customer base despite the various interconnection difficulties and no number portability (Belwal, 2017). As it is quite evident from the PEST analysis that the population of UAE consists of a large number of expatriates which provides the organisations with a potentially large number of new subscribers. As the economy of the country is flourishing it is quite evident that GDP will rise further and per capita income of the citizens will also increase. This will result in an increased purchasing power of the people which will again be beneficial for the industry. Moreover, the government policies have given rise to a great impetus for increasing the level of Information and Communication Technology developments (Sbia et al., 2014). Since the major media organistaions of Middle East are based in UAE both the Emirate and Federal governments have invested significantly for the development of this sector. However, it can be observed that due to the robust economic growth the lifestyle of the people have improved eminently. This is causing difficulties for the telecommunication industry as it has become expensive to obtain manpower.

Reference List

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Ismail, A. (2015). A Review of Theoretical Approaches on Diffusion Analysis: Discussing Issues Involved in the Adoption of ICT Services in a Complex Socio-Economic Context.

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Tzu, S. (2017). The art of war. Musaicum Books.