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The Global Strategy: Micro, Macro And Meso Environment Analysis

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Question:

Discuss about a Case Study on The Global Strategy for Micro, Macro and Meso Environment Analysis?

 

Answer:

Market Entry Method

The UAE is one of the regions in the Middle East that is attracting to both business undertakings as well as others activities such as tourists. It is put as one the countries with high income. The oil reserve, as well as gas, is the essential sources or revenue that has impacted on the economy. The state is favorable for business. The following is the analysis of the UAE with the focus on micro, macro as well as meso factors.

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Micro Environment

These are the factors that impact business either positively or negatively within and since the concentration is on UAE, the focus is on the factors that influence business in UAE. According to Al-Debei & Avison (2010), a platform business model, businesses thrive well when there are good interactions within the organization and the outside environment. As a way of looking at the micro-environment, the factors that will be examined are such as the suppliers, organizations, the market and intermediaries.

Competitors:

In UAE, first there are many organizations that compete in the market owing to business favorability of the region. Investors from various parts of the planet have opted to undertake business in UAE; the larger the number of establishments in the area, the higher the competition. This increases competition that is augmented with the local companies and thus allowing multinational organizations adapt very fast to the competition.

Customers:

Irrespective of the many investors, the region, has a bigger client base. The population of the UAE is high and is approximated to be 9.346 million people as at 2013, and this comprises of both the locals as well as foreigners. The great influx of foreign investors is accelerated by the market that is not exploited to the maximum. The consumption is high, and this is based on the values as well as beliefs that have made Islamic finance grow and thereby to cause an environment that is friendly.

Suppliers:

These are the people who provide materials that are utilized for businesses operation. In the Middle East, there is the increase in investments that is attributed to investors from other countries.

Employees:

Additionally, the available of labor that is cheap, low taxes and cheap transport add to the penetration into the market. The high concentration influx of people who are still young to UAE as well as urbanization exert pressure on the society creates job together with the provision of safe conditions of living.

Macro environment

Al-Debei & Avison (2010) additionally describe that the V4 BM framework model with six facets permits the organization to scan the business environment with the aim of strengthening the efforts of making the business thrive. With this view, the macro environment is taken into consideration. Macro is an environment that impacts the business from the outside. In the analysis, the focus will be on political, environment, social, technology and legal. The PESTEL Analysis is employed as a tool for analysis.

 

PESTEL Analysis

Political:

even though there are neighboring countries that are in constant wrangles, UAE has taken steps that are steady in ensuring that there is an environment that is favorable to businesses. UAE is in the position ten in ranking as one of the nations that is competitive based on the stability as well as the capability to open up for investors.

Environment:

The environment is dominated by the use of sources of energy emanating from oil as well as gas. There is a turn to the Middle East and particular to the UAE for business. It means that there environment is favorable in UAE. This is attributed to the security that is assured, the regulations that promote business integration locally as well as internationally. There is integration in the region and people from other parts find it save working in UAE. People from for example Levant come to UAE. The international agreement like the agreement in trade makes it possible for free movement. Additionally, the transport system is improved which is coupled with technological advancement augments to integration in the region.

Social:

UAE is has a mixture of all people from the various background with a large domination of Islam. This is making the key role in the determination of business undertaking with the guidance of the sharia law. The social life is characterized majorly by the middle-class group. This depicts that the people are capable of making ends meet. As a result of this, the customer based is comprised of these people. Additionally, the largest percentage of women is now enrolling is the class with the aim of getting skills read for the job market.

Technology:

UAE is a leading nation regarding adoption and utilization of technology. There is the internet that is accessible, and this is because of well-grounded telecommunication in the region that was made possible with the support of the government. On the other side, the road-network are up to standard and every section in UAE is accessible via road.

Economic:

UAE has a GDP that is approximate $47,000. It is one of the biggest regions within the market rates. The purchases that people make is high, and this brings the area as one of the best with a high development index. The location UAE put at an advantage as it is neighboring the largest nations with growing economies such as US, Asia, Africa and Europe.

Legal:

The country observes regulations such as patents, property rights, and trademarks. These are protected underwritten as well as documented laws. The nation has the membership with other conventions, and this implies that it guard the rights of the people, business, and nations.

The Meso Environment

As per George and Bock (2011), collective business model ensures that there is interdependence among in business since a business can be in isolation if it must succeed in the competitive market. Therefore, the meso environment that makes the business survive such as the strategic alliances, competitors, suppliers, etc. In UAE, various strategic alliances are made with related organizations with the aim of building a strong capital base so as to penetrate well into the market. The supply and demand in the nation are not balanced with demand being higher that the supply and this is attributed to the large population forming a large customer base. Concerning the influx of investors to UAE, competition is very high and this serve as an aspect to make the top company strive hard so that it emerges as one of the best in the market.

At last, the organization might choose to situate in UAE as it is the most appealing markets and serve these business sectors very well. Even if this can be a sensible passage system, the weight is to have an operation in the UAE is because of the customers that are expanding at a higher pace.

 

References

Al-Debei, M. M., & Avison, D. 2010. Developing a unified framework of the business model concept. European Journal of Information Systems, 19(3), 359-376

Bitektine, A. and Haack, P., 2015. The “macro” and the “micro” of legitimacy: Toward a multilevel theory of the legitimacy process. Academy of Management Review, 40(1), pp.49-75.

Copping, L.T. and Campbell, A., 2015. The environment and life history strategies: neighborhood and individual-level models. Evolution and Human Behavior, 36(3), pp.182-190.

De Villa, M.A., Rajwani, T. and Lawton, T., 2015. Market entry modes in a multipolar world: Untangling the moderating effect of the political environment. International Business Review, 24(3), pp.419-429.

Fray, M., Waterson, P. and Munro, C., 2015. Macro and Micro Ergonomic Outcomes in Healthcare: Unravelling the Relationship between Patient Handling Performance and Safety Climate. IIE Transactions on Occupational Ergonomics and Human Factors, (just-accepted), pp.00-00.

George,G and Bock AJ. 2011. The business model in practice and its implications for entrepreneurship research. Entrepreneurship Theory and Practice, 35(1): 83-111

Murray, C.B., Amaro, C.M., Devine, K.A., Psihogios, A.M., Murphy, L.K. and Holmbeck, G.N., 2015. Observed macro-and micro-level parenting behaviors during preadolescent family interactions as predictors of adjustment in emerging adults with and without spina bifida. Journal of pediatric psychology, 40(1), pp.18-32.

Ravalet, E., Dubois, Y. and Kaufmann, V., 2015. Territories of High Mobility: Micro and Macro Analysis. In High Mobility in Europe (pp. 129-152). Palgrave Macmillan UK.

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