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Global companies operating in Qatar - Coursework Example

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Hence, firms operate by minimizing costs so that they can influence the market that is majorly done by licensing, franchising and favorable international policies (Arsenault &…
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Global companies operating in Qatar
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GLOBAL COMPANIES IN QATAR al Affiliation GLOBAL COMPANIES IN QATAR The Middle East has attracted so many investors especially Qatar and competition have grown stiff. Hence, firms operate by minimizing costs so that they can influence the market that is majorly done by licensing, franchising and favorable international policies (Arsenault & Castells, 2008). Reduced costs lead to low prices in the local market hence the products and services can compete with the rival firms making them grow faster.
Qatar has been the constant rise in business opportunities majorly due to increasing in minerals, increased population and diversity in goods and services. Hence, multinational firms are eager to operate in the market. But due to political uncertainties, they fear for losses (Desai, 2009) and have adopted business strategies such as purchasing of licenses or franchising. Hence, the global firm’s leases out their trading licenses at the company inception. However, during that period, they monitor the business situation and understand the market more as they prepare for a takeover.
Qatar comprises of many culture that majorly originate from the Middle East. Hence, the global firms that wish to operate in the market are more suitable to apply the franchising way rather than the trade licenses. The essential component of any business is to influence customers. Hence, by use of franchising, they use the local persons who understand the environment better (Schwab & Martin, 2011). Hence, they can implement strategies that influence persons making the business to grow faster.
The global firms like MacDonald’s are majorly operating in food staffs. Hence, they need to study the locals’ culture first and see where to improve. Thus, the firms do itself in Dubai due to franchising since this has been the only way to enter the market and grow.
References
Arsenault, A. H., & Castells, M. (2008). The structure and dynamics of global multi-media business networks. International Journal of Communication, 2, 43.
Desai, M. A. (2009). The decentering of the global firm. The World Economy, 32(9), 1271-1290.
Schwab, K., & Sala-i-Martin, X. (Eds.). (2011, December). The global competitiveness report 2011-2012. Geneva: World Economic Forum. Read More
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