United Arab Emirates: Ernst and Young - Research Paper Example

 United Arab Emirates: Ernst and Young 1. Introduction The organization that I have chosen for this paper is Ernst & Young operational in Abu Dhabi (capital) and Dubai emirates of UAE (United Arab Emirates). It is worth mentioning that Ernst and Young has observed phenomenal growth across UAE because its two core aforementioned cities are hub of trade and business activities. Nevertheless, these nations host offices of many multinational / supranational corporations and large scale domestic firms that require external business consultancy services. At present, Ernst & Young Dubai has a large pool of over “560 experienced and qualified professionals (along with 12 resident partners)” that provide training, consultancy and advisory, taxation, business support, and risk management services to many local and international business in “real estate, hospitality, telecommunications and financial services sectors and industries” (Company Website, 2011). 2. Main forces in the domestic environment that are affecting the organization The first main force in local business environment is the economic conditions across Dubai and Abu Dhabi where services sectors have been adversely hit due to economic slowdown and financial crunch. Nevertheless, the core business sectors such as hospitality and real estate are negatively affected from recession of 2008 – 2009 as these sectors have still not come out of recessionary shocks in entirety. Obviously, when corporations do not record business growth, they cut down their budgets and the probability that they would approach consultancy companies like Ernst & Young reduces. Also the corporations have been facing decline in demand of tourism / hospitality / leisure services due to rising inflation and bleak performance of UAE job markets. Since UAE is hosting many multinational / supranational corporations (that tend to induct new technology and IT infrastructure), there has been greater pressure on Ernst & Young to equip its consultants with comprehensive and inclusive knowledge and glib expertise in modern technological resources. For instance, the company would not be able to succeed if its professionals lack technological know-how because otherwise the quality of services would decline. The third major force is the laws and regulations of UAE as Arabs are quite strict and concerned with absolute compliance of company’s charter and activities of any organization. Hence, Ernst & Young is also obliged to offer risk management, audit and taxation services and advices that do not violate any regulation or rule of law. 3. Main forces in the international / global environment In general, the bargaining power of organizations and their suppliers is reduced in the international arena because of economic forces. Hence, consumers now demand greater value for firms as well as they have inclination to prioritize needs over luxuries to avert entering in financial crises. The consumer demand patterns have changed dramatically in last 2 years; therefore, Ernst & Young have attracted consumer goods producers and supporting industries, financing and hospitality services organizations that request for consultation in strategy formulation and setting long-term realistic goals and objectives (Khaleej News, 2010). Secondly, the global environmental threats have raised the debate of green economy initiatives because of change in world temperature due to ozone layer, depletion of natural resources (oil and gas) and environmental degradation due to heavy use of fossil fuels. Ernst & Young has to, therefore, consider aforementioned whenever its clients approach for any advisory and consultation. Third, nations have also been using protectionist policies despite WTO and free trade agreements to secure their domestic industries. Ernst & Young has to thoroughly analyze protectionist regimes that impact global trade relationships among countries. 4. Environmental forces affecting the job an individual manager An individual manager is largely impacted from external pressure of offering premium quality services to various organizations that are operational in extremely challenging and complex business environment of Dubai and Abu Dhabi, where bargaining power of organizations, suppliers and consumers, industry standards, environmental laws, trade policies etc. have been changing due to economic, political, socio-cultural and technological factors. The managers of Ernst & Young are, therefore, liable to update themselves with the aforementioned so that they could offer the best solution and alternative to corporations that consult outside professional agencies to restore eradicate their weaknesses, reengineer and restructure their business for attainment of competitive edge over rivals and sustainable development. Indeed, the managers feel job pressure when the task is complex and when a client demands solutions so that it could ensure its survival and growth in UAE market. Unequivocally, Ernst & Young has become one of the most preferred firms for business consultancy, internal audit and risk management (Bi-Me Report, 2011). 5. Determine the opportunities and threats managers must confront The opportunities have also been created for Ernst & Young even during a complex, unstructured, and unpredictable contemporary UAE environment because firms are more concerned towards implementation of new workplace principles, accurate risk management process, business reengineering, change management, performance appraisal, social audit and unbiased critical evaluation by external consultants and specialist agencies having experienced personnel. Therefore, Ernst & Young have also received new clients, which are inclined to reshape their internal environment so that they could compete effectively with firms across UAE and globe by attaining cost leadership, high business productivity, loyal customer base, improvement in product quality, expansion in business portfolio etc. Hence, the aforementioned opportunities have to be confronted by experienced professionals so that they could satisfy their new and existing clients for business expansion through client retention strategy. The main threats include rising costs of doing business in UAE because it is a consuming that imports products from self-sufficient nations. Hence, professionals at Ernst & Young are also concerned with escalating business costs of their clients, which demand to devise alternatives for cost-efficiency followed by adaptability to rapidly changing external environment (AME News, 2010). References Company Website (2011). About us - United Arab Emirates. Ernst and Young [Online] Available at http://www.ey.com/EM/en/About-us/UAE AME News (2010). Ernst and Young World Takaful Report 2010, Launched at 5th Annual World Takaful Conference in Dubai. AME Info [Online] Available at http://www.ameinfo.com/231803.html Khaleej News (2010). Majority CFOs don’t want to be CEOs : E&Y study. Khaleej Times [Online] Available at http://www.khaleejtimes.com/darticlen.asp?xfile=data/business/2010/November/business_November134.xml§ion=business Company Website (2009). Ernst & Young introduces the region’s first monthly spa benchmark report. Ernst and Young [Online] Available at http://www.ey.com/EM/en/Newsroom/News-releases/Media_2009_spa-benchmark-report Bi-Me Report (2011). Ernst & Young ranked number one consultants in the Middle East and North Africa. Bi-Me [Online] Available at http://www.bi-me.com/main.php?c=3&cg=2&t=1&id=50992 Read More