Summary of International Marketing Plan - Report Example

Running Head: Summary of International marketing plan Summary of International marketing plan of Summary of International marketing plan-A Report Introduction –our company profile We deal with renewable energy products, like solar panels. Our company is one of the largest manufacturers of amorphous silicon thin film solar cells. Solar panels offer the best renewable energy resource, which can considerably reduce dependence on oil. The technology used is environment-friendly and energy efficient, while we have high quality research and development facilities with experienced staff. This results in offering high quality products at low cost.(international marketing report ) UAE History UAE being important country within the Middle East region, its development is representative of the gulf region, while here are many geographical similarities in the area, which belongs to the Arabian Desert. Dubai, which is a city of UAE, resembles the history, geography and culture of the region. History of UAE goes back to 7th century, when local people had occupations related to off-shore activities that included sea-piracy. Conversion to Islam started from 7th century, while powerful Carmathians conquered Mecca, during the Islamic rule of Sheikhs. Ensuing battles for power challenged Oman and Muscat Sultanates. With British intervention, during 1800s, the area was considered as protectorate, comprising of 9 states, under the British rule In 1971, the region became as a federation of states, with the withdrawal of British control. Geography Being situated on the Eastern side of Arabian Peninsula, UAE shares its borders with Saudi Arabia, Qatar and Oman, while belonging to Gulf of Oman and Southern Coastal region of Persian Gulf, within the Middle Eastern region. Most of the land is desert, as total area of UAE is 82880 sq. kms. Coastal line is around 1318 Kms long, with sea control of 12 nautical miles. Climate of UAE is hot, with certain mountainous areas being comparatively cooler. The region is rich in deposits of petroleum and natural gas, while UAE plays an important role, as being transit point for global crude oil. (international marketing report ) Dubai History Human settlement in Dubai goes back to 3000 BC, with habitants being nomadic tribes rearing cattle. Sassanid Empire ruled over the area from 3rd to 7th century, AD. Later Umayyad Caliphate converted the local population to Islam. While Bani Yan Clan was instrumental in development of Dubai, in 1799; Al-Maktoum dynasty transferred Dubai into Sheikhdom. 1929 global recession hit Dubai as revenue collection from pearl exports was reduced considerably. However, oil excavation in 1966 improved the fortunes of Dubai, as it gained the status of being hub for world business. According to Kenneth Katzman, economic boom and foreign investment in UAE and Dubai could not help much in fighting the global economic crisis.(Katzman, 2010) Geography UAE administration controls Dubai as it is the largest of seven states, within UAE. Dubai has total area of 3885 sq. kms., while its coast line is around 700 kms. Dubai shares borders with Abu Dhabi, Sharjah , Oman and Persian Gulf. Land being mainly desert, climate of Dubai is hot, while natural vegetation consists of wild grass and date palm trees. The western area, called Bur Dubai helped the state in development of real estate business. Economic Analysis Local population of UAE is concentrated in cities along the sea coasts. Due to large foreign workforce present in the Emirates, males constitute two-thirds of total population and the birth rate in UAE is lowest among the Persian Gulf States. While economy revolves around petroleum production, Abu Zaby has almost one-tenth of global oil reserves. Agriculture and fishing Agriculture is not major occupation of local populace as it employs one-tenth of country’s workforce, producing dates, tomatoes, fruits and vegetables. Country is self-sufficient in fish and diary products, while importing other food items, including grains. Emirates have large fishing sectors, as commercial fishing is concentrated in Umm al-Qaywayn. Resources and power Abu Dhabi National Oil Company (ADNOC) controls all oil producing companies in the federation. Abu Dhabi Marine Operating Company (ADMA-OPCO) is a subsidiary of ADNOC and is partially owned by British, French and Japanese companies. Consortiums comprising of American, British, French and Japanese businesses hold off-shore and on-shore concessions in the region. Starting petroleum production at Dubayy in 1969, the general reserves of the federation are largest in the world, with maximum number of oil fields in Abu Daby. Federation has started natural gas exports, since 1990s, while its crude-petroleum exports remain the highest foreign exchange earner. Manufacturing Petroleum Industrial Complex at Al-Ruways has a petroleum refinery, ammonia and urea plant and fractionation plant. Al-Shariqah has a plastic pipe factory, cement plant and few paint manufacturing units. Trade and commerce Building and expansion of trade centers, hotels and trade towers, including world’s tallest complex, Al-Burj. UAE joined WTO in 1995 and has developed many technology parks, free trade zones and modern ports, since then. Port Jabal-Ali has a large free trade zone, established in 1980s, which attracts manufacturing companies for re-export of their goods. Imports come from trading partners, including Japan, South Korea, China and Western European countries, who also engage in re-export trading activities. Import confines mainly to transport equipment, machinery, gold and food items. Labor and taxation Foreign nationals constitute the majority of work force. However, ‘Emiritization’ program has been launched to attract businesses for hiring locals. No personal taxes in UAE. Corporate taxes levied on foreign banks and oil companies. Organization of workers in the form of unions still not possible. Laws banning work activities during peak summer mid-days have been passed. Use of children as jockeys in camel races has been prohibited. Science and technology Dubai internet city has been developed, within a free-trade zone that caters to needs of Information and Communication Technology (ICT) companies. This IT infrastructure has world’s largest Internet Protocol telephony System. Dubai Media City launched in January 2001, which attracted more than 850 companies and 5000 knowledge workers, as it has a free trade zone status with guaranteed exemption from personal and corporate taxes, for 50 years. Dubai Biotechnology and Research Park, DuBiotech, would focus on sectors like plant biotechnology, pharmaceuticals, genetics and stem-cell research. Currency fluctuation US dollar is stable at the rate of 3.6725 Dirhams, since 1980. Special drawing rate applicable @ SDE1=4.7619 UAE Dirhams, with either side margin of 7.25%. Master, Visa, Amex and Diners Club credit cards accepted. Infrastructure and International Banking Dubai airport has become global hub, while the city is an important trading center for Africa, Middle East and Asia, with open goods and capital markets. Dubai has world-class infrastructure mainly for tourism, which includes hotels, man-made islands and roof-top tennis courts. Being an autocratic state, finances are tightly controlled. Dubai World default has shocked investors, worldwide. (international marketing report ) Social and cultural analysis Children are taught cultural values while being exposed to foreign cultures, as well. UAE has concentration of higher educational institutes, with 11 colleges of technology and seven major universities.(Khalaf, 2007) UAE provides free health care to all Emarati citizens; it is the second best medical tourism destination, in the region, after Jordan. UAE has around 40 hospitals, while Abu Dhabi and Dubai has best medical facilities and qualified doctors. UAE has Program for foreign workers, towards health insurance, with employee-employer participation. Citizens divided into sub groups-- Sheikhs, altujjar, middle class and low-income groups. Foreign workers include highly paid executives, technicians and professionals, as well as skilled/semi-skilled workers. (international marketing report ) Religion and social customs Islam is practiced by all in UAE, while majority follows Sunni traditions. Marriage, divorce, economics and politics is governed by Sharia laws. Prayers are held on Fridays, which is the day for cultural interaction also. Men shake hands during meetings; women are not allowed to meet strangers. However, they hug and kiss, when meeting other women, on neck and cheeks. Meetings and discussions start after Arabian coffee or tea is served with refreshments.(Khalaf, 2007) Management style Emarati men wear traditional cloth, called ”thob”, while attending work. Business meetings and discussions start with enquiries about welfare of participants’ families. Foreign work cultures have started changing the local business scenario. Physical and face-to face discussions are still preferred for business negotiations, although same are being slowly replaced by modern technological systems, like e-mail, video-conferences. According to Hofstede, business control in UAE remains with the ruling family.(Hofstede, 2004) In-text citation references and source used Hofstede, Geert and Hofstede, Gert-Jan. Cultures and Organizations: Software of the. Mind. New York: McGraw-Hill U.S.A., 2004 Katzman, Kenneth. United Arab Emirates (UAE): Issues for U. S. Policy. N.p.: DIANE . Publishing, 2010. Solaiman Khalaf.Countries and their cultures. United Arab Emirates. . http://www.everyculture.com/To-Z/United-Arab-Emirates.html International marketing plan, retrieved on7th Dec from: mktsolarpanel.doc Read More