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The importance of pestle analysis
Essay on pestle analysis
Foreign direct investment benefits and costs
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PESTLE analysis: As the UAE is made up of 7 Emirates so each of them have their own governmental organisations which allows for the smooth running of their economy.Dubai occupies the vice presidency,second after Abu Dhabi which has its own law so its also a primal location.It is politically safe with low crime rate. After the crisis UAE’s economy suffered from 2008-2009 the economy has diversified itself and does not depend solely on oil anymore but also on other sectors such as tourism. The inflation rate of Dubai is 0.33% which is also significantly low (Dubai Statistics Centre,2016).The small medium enterprise does not want to take a risk where there are fluctuations in price level thereby effecting the buying power of people and also the demand and supply of the Al-Simpkin’s product. Furthermore,the government encourages foreign investment and besides the agent there are free zones such Jabel Ali which is the largest …show more content…
These factors encourage the SME to seek a non EU market and a central location where it can gain advantage from a lot of
Breaking into new markets helps the company grow and brings in new customers, which leads to higher profit margins.
Businesses cannot change these factors; however they must adapt them to be success in their competitive market. First of all, the economic environment which consists of numerous factors. For instance: Gross Domestic Product, Profit earning rate etc. It has a quick impact on the business which means that if any changes happened in the economic environment business must directly follow it. It could be like bonds for the business or may create new chances. Second feature (factor) is social environment will depend on where the business is exit. Countries have different demographics and culture. Culture will depend on imitation and customs of the region, while demographics depend on the segments of the country if the product can be suitable there or not. For example: Japan has high percentage of old people, however, India has high percentage of young people. After long time social environment will have an excellent effect on the business. Technology relies on how the product quality is improving by using various tools and machines. Any business should proceed the new technology in his industry, therefore he could remain in the competitive
United Arab Emirates have been united on the 2nd of December 1971 under the rule of his highness sheikh zayed bin sultan al nahyan. The history of this country is old although it has been united for a short time. The country consist of seven emirates that are Abu Dhabi , Dubai , Sharjah , Ras Alkhaimah , Um Al Qewain and Alfujairah, which all were united under the vision of Sheikh Zayed. UAE is located in the Middle East region of Asia continent, it has borders with the Kingdom of Saudi Arabia and Oman. It is in the south direction of the Arabian Gulf (Persian Gulf) and it contains an estimated number of 200 islands. The country covers an area of 32400 square miles with a high proportion of the area covered with deserts. Due to the high percentage of the sandy landscape, the weather is hot all year except in December and January where the...
Kumar, B. assumed in an article that Dubai promotes itself as the commercial and economic focal point of the Gulf region which is obvious from the plans undertaken to develop open trade regions and manufacturing parks. Dubai is seen as a moderately liberal and international society with 80 % emigrant population and can count on as being one of the safest cities in the globe. The Government has a key role in starting and supporting tourism and with respect to the tourism policy of the government; tourism was positioned at the centre of the diversification program beside construction.
Everything that the UAE has been doing to further its global presence is great for its progress, especially in opening its do...
When it comes to doing business internationally the decision making is more complex. There are many interactions between each country that need to be addressed. In order for a business to be successful in the international market they need to examine and analyze all the facets of their company. They need
Why would a company go international? There are many reasons why companies would go international, but generally a company goes international so they can seek opportunities in domestic markets, or they seek solutions to problems that cannot be solved through domestic operations. There are many profitable possibilities by going internationally and these include greater profit potential, offers new locations to sell products, it may provide better access to needed raw materials, it may access to financial resources from many nations, and lastly it may allow labour-intensive activities to locate in countries with lower labour costs. For a small business to become an international business they must use five guidelines the first is global sourcing, exporting and importing, licensing and franchising, joint ventures, and wholly owned subsidiaries. The first two are market entry strategies and the remaining are direct investment strategies.
Although mostly hot and dry with little rain to speak of, the UAE has one important natural resource - petroleum. This marketed the transformation of the UAE's economy in 1962 with the first export of oil from Abu Dhabi (Johnson, 1987). The UAE became one of the most stable and untroubled international business centers in the Arab world.
...ties in the world. It is home to the world's tallest building and to the world's largest mall. Unfortunately, Dubai did not get there without consequence. That consequence is the debt burden that they are currently under. As a result of Dubai's insatiable spending they piled up an exorbitant amount of debt and are still paying it off. The outcome of Dubai's debt race could spell the future for many other emerging countries. If Dubai, who at first looked so perfect, is overcome by debt, investors will be less likely to take a risk by investing in a developing country and will instead keep their money where it is safe. But in the end, if Dubai continues to spend it's money instead of paying back its debt there could be severer implications in the future such as a loss of international interest and it could even revert back to the desolate desert it used to be.
From a desert outpost on the world map, Dubai has successfully turned itself into becoming one of the most sought-after travel destinations in the United Arab Emirates. The ambitious city-state of high-rise buildings, sunshine and of course, the shopping malls offered by Dubai attract a large number of tourists each year.
Mainly, Dubai gets many inherent advantages as hub city due to location. Dubai located on the Arabian peninsula, which is placed at the nexus of global transit routes between Europe, Oceania, Asia and Africa. Further, it has located from relative distance to the European airspace and it could be a reason to minimise the aviation traffic. And another reason is Emirates flights could connect at almost any time of the day, which is allow for twenty four hours operations. Not only the location but also weather is one of reasons to behind the Emirates' success too. Relatively, Dubai benefitted a good weather than other countries. Therefore, airport operations can continue free from the rain or snow storms that often caused delays in European and American airspaces. Except Weather and location there are many reasons which helps to develop Emirates' performances. such as infrastructures of Dubai, population, company policies, model of the company
In order to understand and forecast business situation clearly, it is important to use PESTE Analysis to define relevant external factors that may affect people’s organizations. Especially, environmental factor has been increasingly recognized its importance in these days (Gupta, 2013). In hospitality and tourism industry also have highly concerned about weather or geographical differences. For example, if the restaurant wants to open a new branch in other city or country, different natural cycle or the physical condition can affect to consumer behavior which is directly related to revenue management. Thus, there are 6 environmental forces that may impact Hy’s entry into France.
It is a real Western market whom most consumers are cosmopolite and come from all over the world. Dubai is often described as the window and the test market of the Middle East area and the city is renowned to be a logistic and marketing platform for the
The Dubai real estate is relatively a mature marketplace and gives an opportunity to build wealth and establish the financial security. The current economic condition offers perhaps the best chance for homebuyers and investors to appreciate the long term cyclical nature of the real estate market.
Abu Dhabi is the capital of the Abu Dhabi Emirate and the largets (about 68.000 km²) of the seven emirates (Umm al-Quwain, Ras al-Khaimah, Dubai, Sharjah, Ajman, Fujairah and Abu Dhabi) that make up the United Arab Emirates (UAE). The Abu Dhabi Emirate represents more than 85% of the whole area of the UAE, and its capital, Abu Dhabi has a population of approximately 1.500.000 inhabitants, second only to Dubai (more than 2.100.000 inhabitants) the capital of Dubai Emirate. The city of Abu Dhabi is also the venue for the President of the UAE, the federal cabinet and the Royal Family.