The Strategic Management of Al Siddiqi Holding - Case Study Example

Cover page

AlSiddiqi Holding

Table of Contents

Introduction3

Background/history of the business3

Al Siddiqi Holdings' Vision Statement4

Al Siddiqi Holding’s Mission Statement4

Al Siddiqi Holding’s Core Values4

Methodology6

IFE AND EFE MATRIX7

EFE MATRIX8

Swot analysis9

Assessment of the internal environment9

Strengths9

Weakness9

Opportunities9

Threats9

Financial ratio analysis10

Assessment of the external environment10

Bargaining Power of Suppliers:10

Threat of Substitutes:10

Threat of New Entry:10

Rivalry among Existing competitors:10

The McKinsey 7-S applied on Almotahajiba11

Shared Value:11

Strategy11

Structure11

System11

Staffs12

Skills12

Style:12

Conclusion and Recommendations12

• Introduction

The essence of this report is to outline the present as well as the trend of the strategic management of Al Siddiqi Holding in Almotahajiba shop through the analysis of the external and internal factors. Besides the analysis of the factors, the report will find ways by which the branches in Almotahajiba can improve its strategical management to enhance efficient flow of the business in Doha. Basically, the report will assess the current strategy to purposefully provide the retail section of this company with accurate objectives that are very efficient in implementation as well as simplifying the management.

The initial stages this report will provide a very general information concerning the background information and history of Al Siddiqi Holding as well. The central aim of this report will not only encompass critical information regarding the company but also provide analysis of strategies of this company depicting the missions, vision and the company`s core values. Additionally, the report will also include the methodology or tools used to collect data about Al Siddiqi Holding in Almotahajiba. Therefore, they have many branches for Almotajajiba in Qatar and other countries but the report will incline more on landmark branch. Their branchese in Qatar are at City Centre, Lagoona, Markhiya, the Mall, and Landmark.

After the provision of background information and methodology that were used in this research, the report will stick to the assessment external and internal factors of the retail section under the SWOT Analysis as the key word. Internal assessment will include the strengths and weaknesses of the department, which are used to evaluate as well as monitor the internal situation of Al Siddiqi Holding and specifically the retail section of Almutahajiba. External assessment will include Porter’s Five Force Model, which is used to evaluate the competitive position of Al Siddiqi Holding through five essential forces, and the assessment of Al Siddiqi Holding’s opportunities and threats.

• Background/history of the business

Al Siddiqi Holding is one of the world's leading fashion industry that has branches all over the world. The company is an investment of AlSiddiqi family that started back in 1932 and have been booming for the last thirty years of existence. Just from a humble beginning of the company in the town of Souq Waqif with their father small retail shop named by the family name, the company has become strong business today offering various brands in the market. In addition, the business offers both homes grown Qatari brands as well as international brands according to the pleasure of customers globally and internally within Qatar. In reference to the period of existence of the company, it has expanded its market share internationally that has contributed to its increased level of services and quality of products it unleashes daily into the market.

AlSiddiqi Holding company is currently a multinational company that has also developed other businesses within it such as hotels, retail stores, hospitality, indoor theme parks or play ground, and real estate projects in other countries. This in one way that the company has been always on the growing end since it encompasses other business within it bearing its logo and name. This not only increases the market but also heightens the sale of new brand products both Nationally and internationally. Another factor that has been leading to the prominence of this company is that it preserves Qatari traditions as well as the heritage that augments on its faster spread of its new markets. This leads to expansion of its influence across the entire globe.

Currently, the company has advanced and operates in different branches that work together to achieve a common goal of becoming a leading consumer market that enhances customers lifestyle. Besides, the company has developed a high integrity among its workers concerning various professionalism that strictly observes and maintains the Qatar’s traditions. Therefore, this study will dwell mostly on City Centre, Lagoona, Markhiya, the Mall, and Landmark branches in Almotahajiba (Ahmed, 2015).

• • Al Siddiqi Holdings' Vision Statement

“To become world leaders in fast consumer markets and enhance our customers lifestyle”

• • Al Siddiqi Holding’s Mission Statement

“ To pursue a strategy of expansion, working with integrity and professionalism and with a social responsibility to maintain Qatar’s traditions”. This is realized by introducing ground breaking international businesses to enhance our customers’ lifestyles and transform Al Siddiqi Holding to a public company.

• • Al Siddiqi Holding’s Core Values

Our Inspiration

Our company is driven the Qatar National vision 2030 and that is to transform Qatar into a knowledge-based economy. Our objective is focused on the making the company global that will open several business avenues for the company worldwide.

Our Niche

To give aour clinets goods and services with the highest quality. Since our main objective is to employ skilled employees from top managers to a seller from all around the world, we are able to provide our clients with customized world-class products that affect their lifestyles.

Our People

The company’s team consists of the professional board of directors that provide quality fashion products that benefit and champion the success of mega-projects in Qatar as a country.

Our Promise

“To provide a corporate customer relation that builds market dominance internationally as well as to achieve corporate strategic objectives, enhance efficiency and cut costs.”

• Methodology

To successfully compete and compile this report, various methods were used in the collection of field data that later were used in the analysis. Moreover, it is impossible to analyze or evaluate the strategy of a company without undergoing comprehensive research. Normally, researchers depend on the information from the internet, newspapers, journals articles as well as books that provide a comprehensive information on the topic of study. However, the articles can never provide the present scenario of the problem of study that compels all the researchers to engage in the field research to identify the actual situation in the field. Methods such as, surveys, in-depth interviews, focus groups and administration of questionnaires are some of the data collection methods that were used in the study. The method used to complete the research regarding strategies of retail department at Landmark branche in Almotahajiba involved an interview of one manager and one employee-based survey. A prolonged meeting was held with Mr. Ali Delawar, the CEO of the company as well as one employee from landmark branch.

This interview was all about discussing the important facts concerning the internal and external environment that the business has been facing the branches in Almotahajiba. The internal and external environmental factors were discussed in terms of swot analysis as well as the porters five analysis model. The other method that was used to collect data is the survey is a friendly interview with one employee from Landmark branch. The survey includes questions regarding the strengths, weaknesses, opportunities and threats of the company, and some questions regarding motivation and worker satisfaction.

• IFE AND EFE MATRIX

This is a major strategy formulation tool that will give the summary and evaluation of the major strengths and weaknesses within the working areas of a business and also gives the foundation for looking and evaluating how these areas are related.

Internal Factors Evaluation Matrix for Al Siddiqi Holding (Almotahajiba)

KEY INTERNAL FACTORS

WEIGHT

RATING

WEIGHTED SCORE

Internal Strengths

Key Internal Factors

Weight

Rating

Score

Internal Strengths

Almotahajiba has a very effective organizational structure

0.05

4

0.2

Almotahajiba is one of the few companies best known in the gulf to provide fashion brands

0.1

4

0.4

Almotahajiba identifies well the preference of most customers hence work towards satisfaction of customers’ needs.

0.05

3

0.15

Competitive advantage as Most of its competitors cannot reach its sales.

0.15

4

0.6

Almotahajiba has specialized human resource, and management team making its communication effective

0.11

3

0.33

Almotahajiba has the ability to manage its operation

0.08

3

0.24

Internal Weaknesses

Diversification of revenue

0.1

1

0.1

Lack of enough operating space

0.08

1

0.08

Lack of employee retention

0.11

1

0.11

Almotahajiba primarily targets the population from around the city that is low compared to the customers that buy its products.

0.04

2

0.08

Lack of good investment in marketing strategies that are well known in Doha

0.13

2

0.26

TOTAL

1

-

2.79

100/100

• EFE MATRIX

External Factors Evaluation Matrix for Al Siddiqi Holding (Almotahajiba)

Key External Factors

Weight

Rating

Score

Opportunities

The economic development of the Qatari market is considered an opportunity for Alsiddiqi holding

0.15

4

0.6

The company can open diverse business ventures apart from restaurants

0.05

5

0.25

Joint ventures to diversify revenue

0.05

3

0.15

More Public Awareness through advertising and other marketing campaigns

0.05

3

0.15

Political stability, as Alsiddiqi holding has won the support if the Qatar government

0.1

4

0.4

Threats

There are many competitors in the market as the economy develops hence increased competition

0.18

1

0.18

Emergence of other competitors in the future

0.05

2

0.1

Increasing costs of opening new brances hence loweing the profits

0.08

2

0.16

Different nationalities of employess hence low retention

0.15

1

0.15

Unstable financial situation due to high operating expenses

0.14

1

0.14

TOTAL

1

2.28

100/00

• Swot analysis
  • Assessment of the internal environment

The retail section in Almotahajiba faces various strengths as well as a weakness that hinder its efficient internal operation.

• • • Strengths

• Almotahajiba is one of the few companies are best known in the gulf to provide fashion brands. This intensifies a number of customers that increases the sales for the company.

• The branch identifies well the preference of most customers hence work towards satisfaction of customers’ needs.

• The company has qualified board of management that add on the strength of the company internally

• Most local competitors in around Qatar cannot efficiently counter the sales of this company because of the high number of customers it has gained over the years of its operation.

• • • Weakness

• The branches in Almotahajiba primarily target the population from around the city that is low compared to the customers that buy its products.

• Despite the company having a larger market share in the Middle East, yet the company fails to apply marketing strategies to be well known in Doha from local and international entities. Investing in marketing is very essential, as it has high returns; the more the company spends on marketing, the more it grows and the higher is its profit.

• • • Opportunities

• The branch has the ability to go global because of the overall dominance of the company in many nations.

• The branches have the ability to not only rely on one business area but also open other business sectors such as restaurants to server wide range of customers.

• The ever-increasing economy of the company is one opportunity that the company has over other business entities in the same industry.

• • • Threats

• One of Almotahajiba’s threats in the near future is the sprouting local competitors.

• Another threat is the increasing costs of upcoming projects, which will clear reduce the economic status of the entity.

• Financial ratio analysis

Despite the decrease in profit in the initial stages of development of this company, it has developed an increased constant inflow of profits over the last six years. In the year 2009, Almotahajiba launched five stores within various branches, which clearly show that the company`s profit margins have been on the rising end of about a constant rate of 150,000 Qatari riyals weekly. This margin has been increasing twice every year that has led to the branch currently owning thirty-six stores in MENA region.

• Assessment of the external environment
  • Bargaining Power of Suppliers:

The bargaining power of suppliers with respect to Almotahajiba retail shop is relatively high. This is because the business depends on the preference of the customers to increase its sales.

• • Threat of Substitutes:

When it comes to the fashion industry, the threat of substitute is extremely high, as there is the frequent change of products depending on fashion (Ferrell, & Hartline, 2012).

• • Threat of New Entry:

The cost of entry is very high in fashion industries since the capital required to start this small business are low compared to other business in the area (Ferrell, & Hartline, 2012).

• • Rivalry among Existing competitors:

This one factor affects the sales of this branch since competitors emerge from different parts in the are with high-quality products that divert priority of customers (Ferrell, & Hartline, 2012).

• The McKinsey 7-S applied on Almotahajiba
  • Shared Value:

Shared value focuses on enabling a company to create valuable business by looking into the social problems affecting the business and solving them. Creation of shared value entails making economic value through embracing society’s needs as well as challenges. Almotahajiba aims at becoming the world’s best fast consumer markets while enhancing lifestyle through the latest fashion trends. The shop has the primary goal of providing the best services to its clients thus enhancing their lifestyle fashion wise. Almotahajiba has created shared value through three diverse ways which include; readdressing its products and the potential markets, reviewing its productivity in the appraisal range, and ensuring that there is development of the local cluster. For Almotahajiba to gain publicity for its quality and designs, the company has employed experienced college graduates in its shops who undergo refresher training to improve their skills on their jobs. With such skilled employees who are not only qualified but have a passion for their work, Almotahajiba will be able to win many customers. One of Almotahajibas shared value is transforming Qatar into a knowledge-based economy while providing a corporate customer relation that builds market dominance internationally. All these values are seen as key strengths for Almotahajiba

• • Strategy

The strategy of Almotahajiba is to make use of its numerous years of past expertise of multiple talented and dedicated staffs, excellent advertising channels into to deliver its goals of providing competitive fashions to the clients that the company it serves.

• • Structure

This define how different roles within the organization are put togethet to deliver the objective of the organization both in the long-term and short term basis.

• • System

These entails the procedures, the processes and the way the activities are undertaken within Almotahajiba in order to meet the set objectives. This is important for setting how critical roles within the organization are done such as the financial stystems, hiring and promotion of the staffs and the way appraisal are done to measure output of the different staffs.

• • Staffs

This looks at the numver and the qualifications of the employees that Almotahajiba has. The company has staffs with different qualifications critical in ensuring that the company is able to meet its goals and objectives in timely manner. The human resource departtment of the company is responsible for ensuring the suitability of the current and the future staffs that the organization needs the most. This is done by evaluation of the internal strengths of the organization.

• • Skills

This is the distinctive capabilities of the staffs that Almotahajiba shop has and needs to as to meet its objectives. It is important that while evaluating the staffs needed the human resources also evaluates the skills that are critical in delivering these objectives.

• • Style:

The method used to reach a decision in Almotahajiba is centralized. The company has high regard for its employees who are highly motivated to give the best and make decisions. To the company, employees are very valuable asset as the quality of services that is given to the clients depends on their motivation. In making any significant decisions the management always asks the employees on their views regarding the decision to identify if it will be favorable to everyone and whether excellent results will be realized from it. In the different Almotahajiba branches, each branch has a manager who oversees the effective sale of products and coordinates the staff to efficiently deliver the best sales. This leadership style has seen the company continue to make profits overtime while gaining competitive advantage over its competitors.

• Conclusion and Recommendations

This paper has analysed Almotahajiba by looking at its the Strengths and Weaknesses. It has being established that fence has wide applications as it can be used to protect personal properties, act as an access control to prevent criminal activities from being carried. The company is faced with the challenges in that it falls into despair and is costly both to purchase and maintain. Lighting is preferred in that it offers visibility and thus reduces hiding areas for criminals.