Exploring Business Activity - Example

Title: Exploring Business Activity Sorouh Business type: Sorouh is incorporated as a public joint stock company and is one of the largest real estate Company of Middle East. It is based in Abu Dhabi. Its presence can be felt at the national level in United Arab Emirates and also across the globe. It was established in the year 2005 and made an initial public offer which was oversubscribed The projects of Sorouh include some most high profile landmarks like Golf Gardens, Shams Abu Dhabi, The Gate District and Towers on Reem Island, Alghadeer, Saraya and Lulu Island (Sorouh). Business purpose: The main business purpose of Sorouh is to develop significant places and to bring equilibrium in the society as well as the lives of the people as well contribute to the growth of the country’s economy, to achieve the above goals it undertakes the best standards and careful innovation. It also ensures a balance between the businesses of promoting real estates with the society at large. Other than real estate the purpose of the business is to provide bright future to the stakeholders in the form of high return (Sorouh). Business ownership: Sorouh is the public joint stock company the founder members subscribe in certain number of shares and float the rest to public subscription; Government does not have any direct shareholding in Sorouh. The objective of the company according to its Articles of Association is to own, manage, invest in and rent real estates, carry out activities like construction, management, development, operation etc. of building, real estate malls, residential complexes, government buildings etc. Promote, own, rent, etc. investment and development rights and to construct, operate and manage any real estate land building, projects or construction owned or co owned by, managed, invested or exploited by the company etc. Other than real estate it has established other service oriented joint ventures like Asset & Property Management Company Al Fayafi Al Khadra, Khidmah etc. also mortgage finance company called, Abu Dhabi Finance, Aseel Finance PJSC (Sorouh). Though it is based on UAE, it is planning to go global by creating new bases in Middle East and Africa in Meena region (Sorouh). Sorouh being a real estate company is placed at secondary sector, this means that they take the raw materials and make them into finished items like buildings etc. The contribution towards the major stakeholders Government: Sorouh is committed to actively support the vision of the leadership of Abu Dhabi to create a world class sustainable city, in order to provide high quality places to live work and play, Sorouh has the responsibility to support sustainable economic growth for all people living in Emirates. In order to make it a reality Sorouh has utilised 78% of supplies from local suppliers based in UAE, other than that local supply chain was utilized and one third of the consultants were hired from within the country. The bulk of its investment is in UAE in support of Governments Emiratisation programme. Almost 18% of senior management positions in the company are occupied by indigenous people from UAE. As the related business is infrastructure it signifies that on a regular basis investment is done in infrastructure projects, whatever project is completed will serve the nation or its people for better usage (Sorouh). Environment: Sorouh is environment friendly and aware about the environment issues of resource usage, delivering sustainable product and the emissions to air, water or waste discharge other environment compliance and biodiversity. It tries to reduce usage of scarce resource and takes it as a challenge it has initiated the green building assessment. The company takes care to maintain the natural fabric of the country by undertaking a sustainable eco friendly development (Sorouh). Society at Large: Sorouh is well aware of the reality that in order to have social progress there should be an equitable development in the quality of life for the people. The responsibilities on the employees as well as the society as whole are of paramount interest for Sorouh. It is aware of the fact that for betterment of the sustainable development it is required to improve the supply chain management and it takes care to ensure responsible employment, health and safety of employees and safety of products and investments made. The employees and their dedication and professional approach is the greatest asset of the company so to develop their skill and potential regular training exercise is carried out for all the employees (Sorouh). Sorouh has a healthy Labour relation with in house code of conduct and also a secret employee disclosure line. The code acts as a guiding tool of the conduct of employees. There is also a Health and Safety manual in accordance to international standard and forms the basis of health and safety performance of every individual in the office as well as in construction sites. The product responsibility aims to ensure that the constructions are safe through their lifecycle, promote a healthy and balanced lifestyle and marketed with responsibility. The company complied absolutely with the Abu Dhabi Municipality marketing regulations. Social impacts of a project are taken into account and social communities are involved by charitable activities of the company. Shareholders interest: Owners: Investors and shareholders of the company are also the stakeholders so it is Sorouh’s continuous endeavor to focus and align the company’s vision and philosophy towards achieving the aspirations of the stakeholders this is done by the following ways: Procedures are chalked out to formalize channels for engaging stakeholder’s particularly external stakeholders, define quantitatively the stake holder’s involvement, include involvement in sustainability steering committee, actively involve in Abu Dhabi sustainability group (Sorouh). Other measures for enhancing employee involvement and employee welfare are the employee disclosure line through which they are free to raise any concerns fearlessly without any discrimination. It will be a policy of Sorouh to develop a support process for employees and the activity report submitted to Audit and Governance committee and the Board. Sorouh has allowed a 20% foreign direct investment in its market capital (Sorouh). 1. Level of service: excellent The level of service offered by Sorouh is world class and many of its projects are bought by oversees clients as well as high-end clients at home, high profile landmarks like Golf Gardens, Shams Abu Dhabi, The Gate District and Towers etc are some important projects. 2. Reputation level It is one of the biggest real estate companies in UAE and Middle East presently the company is undertaking USD 19 Billion worth of projects. 3. Growth The net profit of the company for the second quarter was an increase of 16% from the first, at Dh151 million. Sorouh real estate reported full year growth despite toughening market conditions its net profit went up by 42 per cent to AED 1,784 million 4. Keep low costs Sorouh tries to keep its construction cost low because of the policy of its sustainable development so that common people can also afford to fulfil their aspirations of owning good homes at affordable prices. Mashreq Business type: Mashreq is the largest private bank in UAE and it is providing banking services since 1967. Every second person in UAE banks with Mushreq (Mushreq). It is incorporated as a closely held private bank. It has got a strong financial base with rising market share, strong equity base, growing asset base and high return on assets; it has one of the highest customer bases and also a broad spectrum of product and services (Mashreq). Mashreq is a tertiary sector company, it comprises the service industry. These industries involve a lot of paperwork, now Computers are used to word process, calculate and maintain data records. Business Purpose: The mission of Mashreq is focused towards people and process and strives to provide the customers with the best solution. It offers to the customer’s highest level of perfection through teamwork, minute detailing and professional approach. The strong teamwork helps in providing a smooth system which delivers the main goals and commitments to the customers (Mashreq). Business Ownership The major shareholders of Mushreq are Saif A. Al Ghurair 39.47% Abdullah A. Al Ghurair Investment Co. 31.03% Abdulaziz A. A. Al Ghurair 11.77%. Mashreq Bank is considered the largest bank with private ownership and one of the oldest commercial banks in the UAE. Shareholders interest: Customers: The vision of Mashreq is to offer its customer most rewarding banking and financial service and also personalized service. It believes in releasing the full potential of its employees and also creating growth and value for its shareholders. It has got vision goal and devotion to achieve its target. It is unrelenting in its pursuit of its vision, mission and goals (Mashreq). Employees: Employees are considered as the most important and critical resource for the success of the bank and has formed an integral part of strategic plan. The objective of the bank for its growth is to attract appropriate professional talents, effective performance management, market-oriented rewards policies, investment in employee learning and development, and improvement in employee engagement. The large growth of UAE economy has led to an increase in employee hiring across the job market from a limited pool of talent which the bank has successfully able to achieve. There are 14 organizational competencies which forms the basis of recruitment. The training and development of employees are also given special emphasis to achieve a satisfied workforce, which can only deliver the best result. New Hires are given 3 months training and identified employees with potential are given individual development plan so that they can advance their careers in a fast track. Development of staff is the highest priority and more than 1000 programmes are in partnership with leading names such as Securities and Investments Training Institute, Association of Compliance Management, Centre of Business Excellence, Cohen Brown, Development Dimensions etc (Mashreq). Society and Government: The target of Emiratization is a commitment that Mashreq has taken very seriously. As a step forward it hired some 400 employees to take its UAE employee strength to 37%. As corporate social responsibility Mashreq has undertaken to plant one million trees. The plan to plant trees is because they provide raw materials, food, medicine, shelter and protects the environment from pollution. The banks strategic plans include availing loans to UAE nationals for setting up small and medium enterprises in the country. It will help create jobs and enhance the growth rate which will carry the economy forward towards prosperity (Mashreq). 1. Outshining the competition Its value drives it to be the best customer friendly bank. Its constant endeavor towards its customers is to offer excellent service, develop new and innovative products and financial solutions. It creates an environment where customers can get new opportunities, convenience and peace of mind, and outdo other compatriots in its field. 2. Increase sales In recent years it has increased its revenue by It has got a global presence because it has branches in Egypt, Quarter, and Bahrain with 12 overseas offices in 9 countries. It is one of the highest performing banks with a net profit of US 447 million. 3. Maximization profit Mashreq, one of the UAE’s leading financial institutions, reported a 3% year on year increase in operating revenues for the first six months of 2009, its net profit was AED 919 million in the period. References: Sorouh Places that Matter 2009 viewed 14th October 2009 http://www.sorouh.com/en/section/about-sorouh Mashreq, You Can Do More in Life When Your Banking Needs Are Taken Care Of, 2009 viewed 14th October 2009 http://www.mashreqbank.com/index.asp Read More