Municipality of Abu Dhabi City - Case Study Example

Name: Course: Tutor: Date: Global Strategy and Competitiveness Profile: Municipality of Abu Dhabi City (MADC) As the entity charged with overseeing the day to day running of United Arab Emirates’ capital city, Abu Dhabi has had to embrace different strategies in order to meet the expectations placed on it by the residents of the city, the UAE government and the investor community. According to Davidson, Abu Dhabi is a rising economic power in the UAE, which has the potential of becoming a major player in the country (11). Although some people may argue that Abu Dhabi municipality has no role to play in the vast oil wealth in the Abu Dhabi region, it is pretty obvious that investors in the oil business will invest in the same region and will therefore rely on the infrastructure laid down by the municipality. With cities like Dubai developing in a much faster rate than Abu Dhabi, the municipality operates with the full knowledge that it needs to improve its performance in order to attract more businesses and therefore encourage development. The main competitor state against Abu Dhabi is Dubai (Davidson 30). In recent years however, the two cities have been in stiff competition for both human capital and investments. Some of the notable areas in which competition is also rife include infrastructural development and cultural development. The role of the MADC is evident throughout history as the city was transformed from a sheikhdom to the present day opulent city. However, with factors such as labor crisis and a low-performing education system being an ever-present challenge, Abu Dhabi municipality has had to adopt a strategy that not only resolves the identified challenges, but also prepares it to face any anticipated challenges. Future developments for Abu Dhabi are best illustrated in the vision and mission statement of the city, which indicates that the municipality seeks to offer outstanding services and modern infrastructure for purposes of building a promising capital. The mission statement indicates that the municipality seeks to attain this through “innovative planning, improving municipal services and developing adequate infrastructure” (Municipality of Abu Dhabi 1). Importance of competitive business strategies Despite its vast oil wealth, Abu Dhabi has in the past operated in the shadows of Dubai. However, MADC realizes that in order to attract more investors, and hence become competitive, it would have to adopt a strategy that not only makes it easier for people to invest in the region, but also live in the city. This would in turn increase the level of consumer spending, thus making it a vibrant city, just like Dubai is. Current strategy According to Abu Dhabi Municipality, combinations of factors were included in the formulation of the current strategy (3). They include: adopting a form of leadership that encourages innovation and adopts modern management techniques; adopting quality concepts that match international best practices in the provision of services; encouraging transparency and integrity in all municipality transactions; upholding environment-friendly practices; entering into partnerships that help the municipal attain some of its goals; investing in skilful and knowledgeable human resources; and engaging the society in order to uphold and preserve the identity of the city’s culture. In addition to this, MADC in conjunction with the regional administrators have come up with a strategy that sets objectives to be met by the city and the entire Abu Dhabi region by the year 2030. They include: the development of a diversified macro-economy; use of advanced technology in different sectors of the economy; use of international best practices; export-oriented economy; and use of skilled labor. This means that apart from modernizing facilities in the city, the municipality is also streamlining its processes as well as investing in skilled human resources in order to enhance service delivery. Strategy of the department Workers in the Spatial Data Directorate, which is a department in the town planning sector of the Abu Dhabi Municipality are responsible for collecting spatial data and using the same to plan, monitor and supervise the implementation of city planning (Municipality of Abu Dhabi City 1). In this department, workers are responsible for the creation and maintenance of accurate spatial database and base maps which are used for planning purposes; provision of spatial data information to the city planners; development of data-exchange policy; implementing data-maintenance strategy; provision of technical support to other departments handling GIS related information in the municipality; and training new human resources accordingly. This department’s strategy is aligned with the overall Municipality of Abu Dhabi’s strategy since it is forward looking and intended to improve service provision in the city. Strategy school of thought used by MADC Based on the planning and forward-looking nature of the strategy used by MADC, I have identified it as a deliberate strategy. However, since the city is anticipating competition from other cities and also responding to development trends in the same cities, the strategy also has some traces of adaptability since it is responding to the current competitive environment among cities in the Middle East. As suggested by Haugstad (4), the deliberate strategy helps MADC attain its objectives of becoming a competitive city since the careful planning reflects what investors and residents of the city may want in the future. By implementing this strategy, MADC is placing Abu Dhabi in a unique and advantageous position in the UAE. SWOT analysis Strengths Based on MADC’s decision to adopt a deliberate strategy that involved careful planning, it is quite evident that a lot of analysis and deliberations takes place before any decisions are made and implemented. This approach enables MADC to plan carefully, anticipate future happenings in the market and create an advantageous position for the city. Weaknesses As highlighted by Oxford Business Group, Abu Dhabi needs to improve its health and education sectors to reflect the needs presented in the society (8). This is especially the case if the city wishes to attract more investors who would like to shift residence to the city. Although ADM may lack the capacity to establish high level schools that would appeal to a majority of investors especially from western countries, it can encourage investors in the two identified sectors Opportunities As observed by Oxford Business Group, the Abu Dhabi Emirate has abundant energy resources, an advantageous geographical position and is politically stable (8). In addition, the government is keen to help the region establish itself as a preferred economic platform in the Middle East. The support that the city receives from the government presents an ideal opportunity for MADC, which it can use to advance its investor attraction program. The availability of innovative skills in developed and developing countries also presents MADC with an opportunity to counter its human resources shortage. Threats The outstanding threat phasing MADC is other cities in the UAE, which may be more appealing to investors. Over the years, Dubai has positioned itself as a force to reckon with and has emerged as one of the most-preferred and visited cities in UAE. The strategy adopted by MADC therefore has to be flexible enough to respond to the threats posed by other competitive cities in the region. Apart from planning, MADC may have to consider other initiatives such as branding the city, among others. Changes in the Industry The overarching goal in most municipalities charged with overseeing operations in most UAE cities is the development of a cosmopolitan environment, in which businesses will prosper and investors and local residents enjoy a secure and high quality lifestyle. Unlike earlier times when cities had to rely on proven natural resources in order to generate revenues, which would in turn spur growth, cities in the UAE have realized the need to attract investors, skilled labor and tourists since they cannot rely on oil wealth alone. This then means that cities are becoming more competitive by the day. In my opinion, MADC’s strategy will translate into changes and behavior that will allow Abu Dhabi city to compete favorably with other cities. However, the municipality may have to adopt an adaptive strategy in future, since such a strategy will enable it to respond fast to any unpredictable environment that the competing cities may adopt in future. Significance and complexity of Culture in international trade As has been noted by Ginsburgh and Throsby, international trade means that organizations operating in a specific region may have to re-orient their policies in order to accommodate the different needs presented by international trade (1138). In this case, MADC will have to consider the divergent religious, lifestyle, cuisine and accommodation needs presented by other people whose origin is not in UAE or the Middle East. Future Prospects for the Organization While MADC is yet to attain some of its objectives in the establishment of modern infrastructure in the city, which includes acquiring modern means of transport, improving the road networks, drainage systems and bridges, it is rather obvious from the objectives set by the municipality that attaining the development plans is one of MADC’s objectives for the future. More to this, it is also possible that MADC will consolidate other relevant development projects in future in order to enhance the city’s competitiveness. Competitive strategy According to Haugstad, a competitive strategy is a plan taken by an organization, and which integrates its goals, actions and policies into an organized whole for purposes of attaining competitive advantage over other organizations in the same market (4). In addition to the strategy that MADC has already taken, I would include a comparative strategy, which would have people who learn how other cities have succeeded in attracting investors and foreign capital. Dubai for example, would be one of my main learning areas due to its proximity and similarities to Abu Dhabi. Works Cited Davidson, Christopher. Abu Dhabi: Oil and Beyond. Columbia: Columbia University Press, 2009. Ginsburgh, Victor & Throsby Christopher. Handbook of Economic of Art and Culture, Volume 1. London: Elsevier, 2006. Haugstad,Bjørn. Strategy Theory- a Short Review of the Literature. SINTEF Industrial Management, 02.1, (1999): 1-12. Municipality of Abu Dhabi City. Abu Dhabi Spatial Data Infrastructure. Jan. 2010. 20 Aug. 2010. http://sdi.abudhabi.ae/Sites/SDI/Content/AR/PDF/stakeholders-adm,property=pdf.pdf Municipality of Abu Dhabi City. Dec. 2009. 20 Aug. 2010. http://www.adm.gov.ae/en/Menu/index.aspx?MenuID=59&CatID=59&mnu=Cat&div=Cat Oxford Business Group. The Report: Abu Dhabi 2007. London: Oxford Business Group, 2007. Read More