Zeeshan Import-Export and Somaan Brother FZC Companies

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Table of Contents

Socio-cultural and technological aspects in UAE
Different marketing export models
Porter’s Diamond model
Works Cited

The main features of the Zeeshan Import-Export Company and the Somaan Brother FZC export trading company crystalize in the context of the nature of their businesses and the environments in which the companies operate (Malik, 2). For instance, the key business features of Somaan Brother FZC include exporting of Electrical & Electronics, Sports and Games, Textiles Raw materials, and surgical instruments.

The organizations are characterised by internal environments, which consists of a corporate governance structure that is based on the management principle of creating value for the customers. A proactive approach defines that is designed for resource optimization and creation of customer value and the discloser of cooperate information to shareholders defines the internal business environment. The operations of the directors are overseen by the statutory auditors who constitute the internal control mechanism. Factors such as market competition, intellectual property rights, acquisition of human resources, product quality, and controls are recognised as having the long term impacts on the companies’ business operations.

The Zeeshan Import-Export Company’s internal business environment is defined by its value system that is embedded in the mission and vision statements of the long term provision of the best quality products in the market. Agricultural goods such as dry- fruits and beverages are the core focus of the organization’s product offerings. Zeeshan Import-Export Company’s management structure consists of a board of directors and others in the management hierarchy who formulate policies and make long terms strategic decision that drive the company.

The Somaan Brother FZC and Zeeshan Import-Export Companies operate in external business environments that are characterised by legal and regulatory frameworks that define the obligatory requirements to adhere to that are unique to each country. The key features that distinguish the companies include customers, suppliers, the public, market intermediaries, and competitors. Other external environmental features include the political, economic, demographic, technological, natural, and socio-cultural factors.

Socio-cultural and technological aspects in UAE

According to Hassan Al Marzouqi and Forster, the people of the UAE, with seven small emirates are dominated by people of the Islamic religion (3). Their culture was shaped by the nomadic desert-oriented Bedouins, the Emeriati culture, and the oasis farming culture. Rapid urbanization of the country has made the Emirates to adapt to the policies that project Arab-Islamic architectural design. UAE has people with the highest income in the world with the basic economy dependent on the export of oil. A critical analysis ft eh society shows that social stratification that consists of the Al-Wafedeen (foreign immigrants) and the Al-Muwateneen (nationals). Traditional dresses provide a clear distinction of the social class stratifications. On the other hand, the political life is defined by a government with several organs of administration and hereditary leadership.

The impact of the drivers of business in the UAE in the context of the socio-cultural and technological aspects has shown evidence of their positive effects on the performance of the export business of the UAE in different disciplines in response to the increasing demand for exports and positive contributions to the growth of different industries.

Technology is the key driver of development and that has led the UAE to invest on various technology infrastructure development projects. The objective includes improving the quality of life, air, preservation of water resources, and in clean energy as envisaged in the UAE’s vision 2021 (Mohamed 5). That is in addition to investments in high quality airports, electricity, ports, and road infrastructure. UAE provides modern information technology infrastructure that supports several business processes besides providing universities and companies with finance to conduct research in various areas. The results have been an increase in export products from the UAE to various destinations of the world as shown in figure 1.

The share of exports has been increasing due to the development and integration of technology into the production of various commodities such as oil for export as shown in figure 3 and figure 4. However, limited raw materials have a negative effect on the volume of trade as well as the volume of imports as shown in figure 3.

*Fig3: UAE natural gas imports and exports, 2003-2012.*

In figure 2, the volume of exports rises steeply before it reduces and then rebounds upwards before again beginning to level out. However, the general trend is that there is a steep increase in the volume of exports from the UAE to external market destinations in response to external forces of demand and supply as shown in figure 3 on a trading year in 2015.

*Figure 4: Increase in the volume of exports from the UAE.*

Different marketing export models

Different companies operating in the UAE have adopted different business models depending on the type of product or commodity designated for export. The intentional supply chain mechanism, the laws of different countries governing trade, the tax laws, and other trade restrictions, political issues, and the target market forces such as competition from indigenous and international companies have profound effects on the export of products from the UAE. Embedded in the export strategy models are the trade laws that are explained by the concepts of international trade theory. Here, the amount and composition of trade, the labour theory of value, and the opportunity cost theory constitute the factors that define the models being used.

The Uppsala Model of Internationalization provides a clear description of how companies specialise in export business by increasing their competition intensity in foreign markets. The model stipulates that most organizations start with the local market to establish their strength before moving to the international markets. Once a firm establishes itself firmly in the domestic market, it can expand outwards to countries that are geographically, and culturally close before expanding further to other countries with different cultural values.

Porter’s Diamond model

The international competitiveness of the UAE based on Porter’s diamond framework determines the country’s welfare (Islam, 2). To address the issue arising thereof, the country has invested in variables that enable it to increase productivity such as in research and development, diversification, development of highly skilled employees, and an adoption of modern economic thinking.

Porter’s diamond model is based on e international competitiveness and the trade theories of competitive advantage, monopolist competition, and oligopolistic market structures for domestic exporting firms.

Rahman Model

According to Morgan, Kaleka and Katsikeas, the demand and management theories are used to explain the export variables that define the Rahman Model (2). That introduces factors such as the rivalry among firms and the internal and external factors that impact on the operations of the exporting firms.

Business strategy model

The business strategy approach model depends on pragmatism that is used to determine the trade-offs on the marketing model to use. Internalization is driven as

Issues encountered in the distribution channels/supply chain management

According to Grant, Golawala and McKechnie, competitive advantages on the global market where countries conduct trade depend on efficient and effective supply chain systems (5). However, several issues such as compliance with the regulations of target export countries, ability to integrate new technologies into the supply chain systems, ability to manage complex distribution chains, and the effects of demographic grayling and urbanization. Other issues include assurance of effective information sharing and flow, compliance with environmental regulations, and ability to integrate the factors that add value to the export products. Other issues include ethical issues related to middlemen, consumers, and retailers. Such issues include wage fairness, child labour, discriminatory policies, and ethical positioning.

Regulatory issues in exporting from UAE to GCC countries

Saudi Arabia is one of the countries in the Gulf Cooperation Council that has eased restrictions on the sale of goods from the UAE. Grant, Golawala and McKechnie have noted that the UAE is a member of the GCC countries and is set to gain from the relaxing of laws and regulations governing the entry of goods into Saudi Arabia (4). However, commercial agents should come from Saudi Arabia and not from outside. In addition, products should adhere to the standard requirements as outlined in domestic commercial policies. Despite that the challenges such as classification of domestic activities where tariffs are still 6.5 % higher for those commodities that compete with domestic products, enforcement of competition systems and import Prohibitions and Licences such as applies on alcohol. The protection of intellectual property rights is an additional issue to consider.

Works Cited

Grant, Jim, Fatema Shabbir Golawala, and Donelda S. McKechnie. “The United Arab Emirates: the twenty‐first century beckons.” Thunderbird International Business Review 49.4 (2007): 507-533. Print.

Hassan Al Marzouqi, Ahlam, and Nick Forster. “An exploratory study of the under- representation of Emirate women in the United Arab Emirates’ information technology sector.” Equality, Diversity and Inclusion: An International Journal 30.7 (2011): 544-562. Print.

Islam, Mazhar M. “Regulations and supervision of financial institutions in GCC countries.” Managerial Finance 29.7 (2003): 17-42.Print.

Malik, Khola. “Impact of Foreign Direct Investment on Economic Growth of Pakistan.” American Journal of Business and Management 4.4 (2015): 190- 202. Print.

Morgan, Neil A., Anna Kaleka, and Constantine S. Katsikeas. “Antecedents of export venture performance: A theoretical model and empirical assessment.” Journal of marketing 68.1 (2004): 90-108.Print.

Mohamed, Mohamed Taha. “Socio-cultural factors of teachers’ conceptions of knowledge: epistemic beliefs of Arab teachers.” Teacher Development 18.1 (2014): 46-64. Print.

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