Project about :

Developing Marketing Plan

Emaar Company

Submit to : Prepared BY :

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Table of contents
Executive summary: ...............................................................................................................3 Emaar history: .............................................................................Error! Bookmark not defined. :Vision and Mission: .....................................................................Error! Bookmark not defined. -SWOT analysis for the company: ...........................................................................................4 -Key success factors ...............................................................................................................7 Analyze competition ............................................................................................................ 10 Competitors:........................................................................................................................ 10 : Goals and objectives : ........................................................................................................ 10 - formulate strategies : ......................................................................................................... 11 1-The market where operates: ............................................................................................. 11 2-Political Variable: .............................................................................................................. 12 3- The social Variable: .......................................................................................................... 13 3-Economic Variable: ........................................................................................................... 14 4-The real GDP: .................................................................................................................... 15 Monetary policy ........................................................................................................... 16 The exchange rate ........................................................................................................ 16

translating plan into actions : ............................................................................................... 17 1-Required resources for diversity: ....................................................................................... 17 2- Location: .......................................................................................................................... 17 3- Machinery and equipments: ............................................................................................. 18 4-How the company will operate: ......................................................................................... 18 5-Permits and legality: ......................................................................................................... 19 6-Domain name and trade mark: .......................................................................................... 19 Controls: .............................................................................................................................. 19 Conclusion: .......................................................................................................................... 20 Works Cited ......................................................................................................................... 21 2

Executive summary:
Since the industrialization revolution, there has been great demand for having new markets outside the borders of Europe. The massive load of the production due to industrial revolution forced business men and industrialists to search for new channels for marketing of their products which have made them move to the African and Asian markets especially in the event that those markets lack any kind of industrialization. This was at the beginning of the nineteenth century. The European Occupation for land in African and Asia has been aimed at opening new markets for their production and making new profits by diversity which was result of war and occupation of other peoples lands. In todays language, business worldwide is different from the case as I have mentioned. Business international has been more dependent on quality and standards which make competitive advantage in any market and consequently survive. The world of today enjoys the benefits of globalization which is the result of great advance in communication technology, transport and scientific progress in all fields. In today world, the humans have been able to contact each other and make business while they are at home. The invention of the internet has enabled the humans to find news, information about the political and environmental issues in any place so its easy to conduct study on allocation and take decision of diversity in such place or not through the computer. Now, business competitiveness force companies to survive the dependency on one market as it is great risk to have one market which is always the local market. In order to
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survive the sever competition, many companies merge with another and form corporations that spread worldwide. we can see the headquarter of Company in The UAS and the branches in Hong Kong , Malaysia and in North Africa , so the nature of business today is more diversity seeking one .

Current market situation:

Emaar is a provider of real-estate services and it is the biggest construction company in the UAE market. It provides the most luxurious life style houses, villas, palaces as well as Golf grounds and swimming pools. The company provides development, property
management services, educational services, healthcare, retail and hospitality sectors, as well as investing in financial service providers.

In 2007, 23% of the equity stock of the company have been given to the investment Corporation of Dubai and in 1998 the company launched the project of Burj Khalifa with investment capital reached 730$billion. The company has adopted from the beginning diversity policy depended on finding Joint venture in the region and in Africa. Now the company aims at reaching the USA's market by searching best joint ventures there with investment reaches AED 15 billion.

SWOT analysis for the company:

Strengths: 1. The company has opportunity due to the rapid growth of the country and the increase in the living standards.

2. There is bad need for small and low incomes houses in the country with the increase in the number of the expatriates in the country which is considered a good opportunity for the company to meet requirements. 3. The government has decreased the tax on the exports for the equipments and building materials as well as the modern houses accessories which will encourage the company to undertake many projects and sign contracts. 4. The company will be able to handle with the technology development in the real estate sector by the experience it has along its history. That will improve the position of the company in the market and will cut the excess expenditure on exporting it. 5. SAGIA to provide one-stop-shop services which will reduce bureaucracy and facilitate the establishment of new business, attract investments, jobs and demand for real-estate to KAEC. Opportunities: 1. The company has opportunity due to the rapid growth of the country and the increase in the living standards. 2. There is bad need for small and low incomes houses in the country with the increase in the number of the expatriates in the country which is considered a good opportunity for the company to meet requirements.

3. The government has decreased the tax on the exports for the equipments and building materials as well as the modern houses accessories which will encourage the company to undertake many projects and sign contracts. 4. The company will be able to handle with the technology development in the real estate sector by the experience it has along its history. That will improve the position of the company in the market and will cut the excess expenditure on exporting it. 5. SAGIA to provide one-stop-shop services .which will reduce bureaucracy and facilitate the establishment of new business, attract investments, jobs and demand for real estate to KAEC.

Weaknesses:1 1. The company has a lot of contracts and due operations that are considered risk in case of not being able to meet them as scheduled. 2. The company focused in the past on the high incomes customers and big projects Burj Halifax and other massive projects neglecting wide sector in the community . 3. The company suffers a shortage of funds due to the undertaking of huge projects and participation in other projects outside the country.

http://www.emaar.com/index.aspx?page=about

4. The companys focus of the taste of the new styles, high quality of houses and providing costly houses that doesnt suit the other layers in the community. Note that the high incomes layers represent only 25% of the inhabitants of the country. 5. Distant completion time line increases uncertainty and operational risk Threats: 1. Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group is exposed to credit risk principally from its receivables from customers, other receivables and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. 2. Geographical instability in the Gulf region. 3. Execution of risk due to shortage of labor and rising construction costs. 4. Competition from other emerging cities and industrial clusters.

Key success factors :2

Corporate:

2 Follows ,R ,lang ford, D,Newcombe,R, urry,S,(2002) construction management in practice , second Edition, black well, Oxford

1. According to Ansoff (1985) strategic management is a systematic approach to position and relate the firm into its environment in a way which will ensure its continuous success (H Shaik , Jul 19, 2009) . ANsoff (1985). In the company of Emaar . The mission is very important as it is considered the first step for strategic management process however; the leaders of Emaar need to develop an empowering, specific, challenging and inspiring vision (Fellow et all 2002). our vision is to transform the company into a non stop global solution provider for life style , including homes, work , play, leisure, retail, health, education , finance, industry and more (Emaar website ,March 2011).This mission must be more accurate , specific , and scheduled . 2. The company has to create more flexible management board to cope with the new development based on the transformation theories and focusing more on the internal and external environment. It has adopted the idea of leaders replace managers. kotter Business:3 1. The company should make use of the strengths it has, the strong position in the market, the financial status, and the long experience in the field of construction. The company has to focus more on the internal challenges and achieve more diversity in the markets based on the strategic plans and taking market segments into consideration. it is essential for a projected business to understand its

3 Follows ,R ,lang ford, D,Newcombe,R, urry,S,(2002) construction management in practice , second Edition, black well, Oxford

business management project and position of projects which is considered part of future strategies of organization.(maria, pavai and Heiki ,2007) 2. The opportunities in front of the company can empower it to achieve more success and reach its mission. By evaluating the current position of the business. I think that the most important strategy is to consider all layers of income and focus more on the low income customers building new relation with them and provide low priced houses and facilities. The business should not focus on one layer or it will be full soon. Functional: 3. The HR sector should follow a new strategy based on the employees empowerment. Increase their experience, guarantee their lives and launch programs for their welfare. also , in recruitment , it has to select the active staff that are willing to work in all condition, ambitious and patient , the employees have to be self dependant , innovative , and articulate .4 4. The most important is the external environment in which due attention should be give to the partners, shareholders and customers of all layers . the HR and the board of directors have to monitor their decisions, strategic plans, market segments and the staff attitude to be able to make any changes at the right time and make sure that the company is moving toward achieving its mission .Schedules, time tables, rewarding system related to roles and duties should be followed as well as punishment and warning for any carless employee.
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Follows ,R ,lang ford, D,Newcombe,R, urry,S,(2002) construction management in practice , second Edition, black well, Oxford

Analyze competition :

Competitors:
The company has some of the competitors in the region such as The Arab Contractors Company and Othman Ahmed Othman Company which are of great fame in the field. The company will start by small project that fit to resources and in diversity plans the company will develop competitive advantage since the company have the experience in building new houses at reasonable prices which will be the competitive advantage for the company over its rivals.

: Goals and objectives :

1. The strategic plan for the company to operate in Egypt market will set the following objectives : 2. Providing low costs housing at competitive prices for the public as well as undertaking the governments projects at competitive offers. 3. Keeping quality in consideration by providing luxurious houses and constrictions to satisfy the Egyptian taste. 4. Coming close to the customers budget and decision making rules . 5. Offering many methods for payment

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formulate strategies :
The strategy will depend on the real study for the market and searching all factors like :

1-The market where operates:

After a study for the nearby region, I have concluded that the best market will be in North Africa for the many reasons I have noted now days. The Arab countries in North Africa are thirsty for development and improvement for the service sectors especially after the decline of the previous corrupt rulers and the change in political government. Most of the residents in the North Africa are living in bad houses and they are looking for new economic hoses that can enable them live some healthy life with modern services. (tuor2u) The area is promising economically due to the new governments who strive to prevail security and peace and achieve prosperity for their peoples to satisfy them. The region in North Africa is full of resources that are missed hidden for a long time and that are in need of investment. They have the human resources and, oil, tourism and control the trade route between the west and the east through the red sea. (Egypt Overview, 2011)

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 There are rich classes in this region that are searching luxury and comfort of live such as business men , highly educated people , the cultured class and the wealthy farmers. The north African region participate in the Asian region in many things from the past till present some of such connections are: 1. Language: the Arabic language is famous in the North African countries as in Egypt, Libya, Tunisia and Algeria. 2. Religion: most f the residents in the North African countries are Muslims and fewer ethnic groups are Christians. 3. Culture: the North African countries are part of the Arab world who shares the cultural values that stem from the Arab cultures and the Islamic religion. (Egypt Overview, 2011)5 Now I have selected Egypt to transfer our business there as I have found out that Egypt is one of the promising countries in the region and that it has the resources for any business to invest and continue.

2-Political Variable:
1. Egypt has passed by a revolution a year ago and they have changed their president. New steps have been taken for settlement and development. The elections of the new parliament members have allowed the country to
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African Economic outlook-http://www.africaneconomicoutlook.org/en/2/2/2012

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achieve security and launch their invitations for businessmen to invest there. (Egypt Overview, 2011) 2. The new government has development vision that focus on improving public places, hospitals and infrastructure.6

3- The social Variable:

Most of the Egyptians suffer from the lack of hosing at a reasonable prices and means of comfort. There is need for more than 2.000.000 housing unit for the youth by the end of the next year. The government has offered land for investment and construction of housing units for those of limited incomes and the new married couples. The government invites the businessmen and investment companies in such field to take part in its project of building one million Unit. (Egypt Overview, 2011) There is a rich class in the country that has lands for their own possessions and would like to build most up-to date houses, villas and palaces like in Marina, Ras EL bar and Alexandria. They are in need of well known company in this field. The unemployment is a problem that hurt the heart of every citizen and government in Egypt and they encourage such project for their need of many workforces as it is known that the construction field is the key for work for millions

African Economic outlook-http://www.africaneconomicoutlook.org/en/2/2/2012

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of people in Egypt. Thousands of crafts, industries and services are connected with construction field in the country. (Egypt Overview, 2011)

3-Economic Variable:
The country is suffering economic problems due to the lack of security on the last year. There is a budget gap that reached more than 180 Billion EP and the country is in bad need for investment. There is an attitude for loans from the World Bank and the Arab Loan Bank. The daily demonstrations in all over the country make the economy bleed millions every day and lose many businesses. (Egypt Overview, 2011)7 While the budget is said to be rising from 8.1% in the year 2009, it has closed at 10% in 2010/2011. The Egyptian government has paid a lot to all sectors to face the peoples force and requests. In Education, billions were taken out from the budget to satisfy the teachers and directors. The same was done in medicine, transport and public sectors. The inflation rate rose from 11.7% in 2009 to 13.4%in 2010. Real GDP growth in Egypt 2008-2012: The real GDP increased from about 6.5% in 2006 to 6.9%in 2008 while in 2009 it witnessed sharp breakdown to 4.5% then to 0.8% in 2011.8 (Egypt Overview, 2011)

African Economic outlook-http://www.africaneconomicoutlook.org/en/2/2/2012 African Economic outlook-http://www.africaneconomicoutlook.org/en/2/2/2012

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4-The real GDP:

Real GDP growth (%) 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0

Northern Africa - Real GDP growth (%)

2011 (p)

2010 (e)

2009

2008

2007

2006

2005

2004

2003

Macroeconomic Indicators 2010(e) Real GDP growth CPI inflation Budget balance % GDP Current account % GDP
Source: Data from Central Bank of Egypt (CBE) and CAPMAS; estimates (e) and prediction (p) based on authors' calculations. Fiscal year July (n-1)/June (n). http://dx.doi.org/10.1787/888932406403

2012 (p)

Figure 1. Western Africa real GDP growth

2011(p) 5.1 11.7 -8.1 1.6 13.4 -9.8

2012(p) 4 12.2 -9.4

-2

-3.2

2002

Africa - Real GDP growth (%)

-2.9

The real GDP as shown in the table refers to the internal or domestic production by percentage and that the real GDP is a witness on the political and social status of the country. the real GDP in Egypt informs us that the political and social consequence on the uprising have affected the productivity in the country since the real GDP declines all over the last year since the starting of the demonstrations 9. The budget balance have faced wider gaps since 2008 which had been -6.8% of the growth production to -8.1 in 2010to 9.4 in 2012 which indicated sever gaps between the expenditure and revenues which is manly from tourism , Suez canal and the oil revenues. (google , 2011)
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African Economic outlook-http://www.africaneconomicoutlook.org/en/2/2/2012

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 Tourism as necessary source of income to the country and it is connected with more than hundred of services industries are affected by the political status and strikes. Tourism in the last year has been declined and many hotels suffer from lack of income. They had to reduce the payment to the employees as well as many employees left their jobs due to the bad situation Monetary policy : although the Egyptian Central bank has reduced the interest rate for two times in 2008 and 2009 at 8.25% for improving investment and encouraging corporations to invest in Egypt, the political and security issues still affect the process. The discount rates existed at 8.5% which has been kept in hold until March 2011 because of the continuous inflation pressures which reached 11.7% in 2009 then 13.6% in January 2010. The current prices inflation is due to current uprising and the political issues as there is not strict monitoring on markets and traders are more greedy which make them hide the goods for time and then sell them at highest prices.10 (Egypt Overview, 2011) The exchange rate: with the advent of the political uprising in Egypt and instability the local government. The value of the Egyptian pound decreased significantly influenced by the capital transportation to the outside and the escape of investors. The monetary market shows that the value of the Egyptian pound amounted 5.87 per US in comparison of 5.47 at the end of 2010.11

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African economic Outlook :http://www.africaneconomicoutlook.org/en/countries/northafrica/egypt/24/12/2011 11 African economic Outlook :http://www.africaneconomicoutlook.org/en/countries/northafrica/egypt/24/12/2011

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 On the other hand, the new elections have refreshed the Egyptian Money Market and there is attitude to return of investment. The last month witnessed arise in the arrows with profits that covered half year loss especially with the assembly parliament holds its first sessions and the end promise of the army to handover the authority to civil government. (Egypt Overview, 2011) The Egyptian economy is characterized with diversity not depending on one product or source; they have tourism, Suez Canal, oil and Gas as well as the industrial sector and agriculture.

translating plan into actions : 1-Required resources for diversity:

Human capital: It is fact that the Egyptian market is rich with the best labor work force especially in the construction sector as there are many of craftsmen and experiences in this field who can be power for the company and will cancel the need to have the burdens of transporting workforce from another country. There are experienced engineers, executives, craftsmen and worker who are efficient in their work and are looking for jobs. (strtaegy+business)

2- Location:

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The company location is of the most importance and I have selected the Nasser City for its fame as hosting of big corporations offices and quiet city that enjoys security and close to the government buildings.12

3- Machinery and equipments:

Some of the machinery can be obtained from the local market as they are sold locally and the other equipments can be imported from Germany and Italy as they are necessary for the company.

4-How the company will operate:

In the housing project as there is little risk on the investment of real estate in the country. The government will offer facilities and will share the projects. The company will undertake the projects required and will; receive the cost and profits as decreed by the company. The company will not face much risk since the government will pay the bill. Personal contracts will be with the individuals who are interred in the company activities and in such contracts, the individuals will pay half the price at the moment the contract is signed and the other half will be on the day of handover of the building.
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Strategy + Business http://www.strategy-business.com/ 2/2/2012

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5-Permits and legality:

As in the UAE, the company will be in need to apply for the commercial department in the ministry of commerce and industrialization In Egypt to get the credibility and legality as an investment company in Egypt. The company will have to register its trade name in the financial market and commercial Union to be able to operate.13

6-Domain name and trade mark:

There will be a need for domain name for the company websites as most of the issues will be handed through the website portal. We live in the technological age where the internet and IT communication facilities play a part in business. The domain name will be from the business nature as Emiconstruction@egypt.eg The trade mark will be Emirates construction company Ltd.

Controls:
The controls will include the following procedures : Market risk control : Market risk is the risk that changes in market prices, such as currency risk, interest rate risk and equity prices will affect the Groups income or the value of its holdings of financial instruments. Financial instruments affected by market risk include loans and borrowings, deposits, financial assets at fair value through other comprehensive income
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http://www.scribd.com/doc/10522928/The-Strategy-of-International-Business-Chapter-12

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and derivative financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. (Emaar Website. March 2011) Credit risk control
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Credit risk is the risk of financial loss to the Group if a customer or counterparty to a

financial instrument fails to meet its contractual obligations. The Group is exposed to credit risk principally from its receivables from customers, other receivables and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. (Emaar Website. March 2011) annual report. Liquidity risk control: It is the risk that the company will not be able to face its financial obligation as they fall due. The group monitors its risk to shortage of funds using recurring liquidity planning tool which maturity of its financial investments and financial assets and expected cash flow from operations.

Conclusion:
International business strategy is required by every enterprise or company that seeks the survival from the current local market since the server competition creates great risk in depending on one market. In this project, I have developed a strategic plan for diversity as international business for my company which is working in the construction field and I
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http://www.emaar.com/index.aspx?page=about-mission-employee

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have selected Egypt as promising market that enjoys both workforce and resources. Although the country still suffers from economic problems due to the conversion into democracy, there is increasing trust in the future of its economy and stability god willing.

Works Cited
(2011, 2 24). Retrieved 2 2, 2012, from Egypt Overview: African Economic outlookhttp://www.africaneconomicoutlook.org/en/2/2/2012 strtaegy+business. (n.d.). Retrieved 2 2, 2012, from strtaegy+business: http://www.strategybusiness.com/ tuor2u. (n.d.). Retrieved 2 2, 2012, from tuor2u: http://tutor2u.net/business/strategy/globalbusiness-global-strategy.html

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