U.A.E - the Greatest Industrial Hubs - Term Paper Example

U.A.E - the Greatest Industrial Hubs U.A.E is located in one of the hottest place on earth near the equator. It is rightly said that U.A.E is a place at which West and East meet each other economically and socially. U.A.E is known as one of the greatest industrial hubs present in Middle East. It has a great positive reputation in the business community as U.A.E was the only country of OPEC which was not involved in nationalizing of all the oil companies shares in mid 1970’s. This wave wiped the entire oil industry of the world (Etihad). Telecommunications is one of the greatest and innovative industries present on the planet in modern day. Huge amount of investment is going on in this industry all over the world. This situation is not only encouraging more innovations in the field but also creating great and positive competitions in the world between different telecommunication companies. Middle East known by its enriched oil resources all over the world and this region is also a part of economical, political and social changes taking place all over the world since the time being. Most of the Middle East is known by west as biased towards fundamentalism concepts of religion. U.A.E has played a vital role in developing healthier and positive relations between west and east effectively (Etihad). Etisalat is the major telecommunication company in United Arab Emirates U.A.E and it is also one of the main companies present in Arabian Peninsula and Africa. It was founded in 1976 and became leading telecommunication service provider in the region. Over the last few years it has became one of the greatest corporations in the world creating partnerships with different telecommunication companies that are present in the world. It not only enabled U.A.E to have basic telecommunication services. It also devised many modern techniques and innovations in the field of telecommunications making U.A.E one of the greatest nations of the world regarding telecommunication services. Its mobile users enjoy advantages of best voice and data applications such as WAP (Wireless application protocol), General packet radio system (GPRS), and Enhanced data rates for GSM evolution (EDGE) (Tech Reviews). Fixed line network of Etisalat enjoys service like ATM (Asynchronous Transmission Module), frame relay and International subscription for digital networks (ISDN) (Etisalat 2012, 2-8). Etisalat is the first company of the region which used Geographical information systems (GIS). Network convergence which is a concept becoming reality now days GIS is used by the company to specify network operations, increasing of customer satisfaction and relations and providing a way for innovations and developments. Over the years Etisalat is the company which has done many in-house updates accommodation all the modern ideas happening in this field. Etisalat is the company which has focused itself delivering innovative services and speeding of social and economic growth (Etislat 2011, 2-9). Etisalat’s international acquisition started from 2004 by wining second mobile phone license and first 3G services license in Kingdom of Saudi Arabia. Etisalat is the company which has experienced a great innovation in the field and became one of the greatest expanding companies. The satellite network of company covers almost two-third of earth’s surface. For almost 40 years Etisalat has helped its mother nation U.A.E to sustain its image as one of the greatest business hub present in the region. It provides reliable and high quality services favoring foreign investments. It is the one of the companies which has put its mother nation in top 10 countries regarding telecommunication services. Etisalat is the pioneer regarding the practicing of new technologies for both fixed line and wireless networks. It has installed first fiber optic network making Abu-Dhabi first city to have fiber optic network (Etisalat 2011, pages 3 to10). Etisalat is a multinational company which has companies from all over the world as its partners. Etisalat’s management while designing the organizational structure of their company has extremely taken care of loyalty to its mother country. Etisalat’s U.A.E unit is still major contributor to company’s overall structure. Approximately U.A.E unit has weight of 88.8% regarding total weight of organization present in rest of the world. Throughout 2007 Etisalat has tried its best to increase its stake holder internationally. This approach shows the intention of the company to plan for the long-term partnerships. This experiment has proven wrong so far as company has experienced loss regarding investments internationally. For example, investment in Islamic Republic of Pakistan has caused a total loss for the company and at end of 2012 Etisalat was compelled to withdraw its all investments from the country. Shares of Etisalat in local companies of Pakistan were sold to local companies of Pakistan (Etihad). Organizational structure has its U.A.E unit as central decision making unit for all the stake holder company has all over the world. An overview of the whole company can be seen in diagram as follows: Source: Organizational Infrastructure of Etisalat Main decisions clear from diagram are taken by chairman and board of directors. This decision is checked by legal affairs department. As Etisalat is a multi-national company its legal department is country based. There are different rules for telecommunication in different countries. When a decision for example buying rights of 3G services is made; central legal department outlines international laws, standards and outlines regarding the issue (IEE standard for communication is 802.11). These outlines with company’s mission statement is passed to regional legal offices and implemented according to the rules of the targeted company (Etisalat Company). Legal department also deals with the problems faced by company both nationally and internationally. Other important departments of the company are deputy director general regarding corporate development which is dealing and analyzing all the risks involved in the investment of the company and deputy director generals for departments like telecommunications, support services and E-commerce Governments are core departments. Etisalat tries to develop a smooth communications between its employees as it provides best communications for the customers. This smoothness and professional harmony present between different departments of the Etisalat encourages creative and innovative aspect of its employees (Etisalat Company). Annual reports are generated by each of the department and these reports are analyzed by high-level board of directors meetings and finally briefed to chairman of the company. Decisions like with drawl of investments and biding in a new market of the world and other policy related issues are made in these meetings. Ahmad Abdulkarim Julfar chief executive officer (CEO) of the company has professional degrees in civil engineering and computer science; serving the company first as Director General Operations Dubai 2005 and then as CEO form 2006 has a broad vision encouraging the profit oriented innovations and decisions made throughout the organizational structure. The main product of Etisalat is providing services of telecommunications and internet based on the latest parameters defined by industry. It provides both fixed line and cellular services to its subscribers that are more than one million all across the world. It also provides VOIP (Voice over IP) and other data services to different ISPs (Internet Service Providers). Etisalat is the 12th greatest voice career company present on earth. Major services of internet for home based customers are: 1. Broadband internet services at home. 2. 3G mobile phone services. 3. Both prepaid and postpaid packages for the customers regarding internet. Wi-Fi services are also provided by Etisalat commercially and domestically. Wi-Fi services are present in shopping malls, restaurants and other places like that. These places are called as i-zones for internet service providers. DSL (Digital Subscriber Line) for both domestic and home based operations with the aim of providing high-speed internet connections. Their cost depends on the selection of bandwidth utilization by the customers. Telecommunication traffic management and utilization services at high prices can also be provided by Etisalat. In modern day world with continuous advancements in the field of wireless communications and wire based networks have giving birth to the concepts of reuse of frequencies, dedicated bandwidth, traffic engineering and IP (Internet Protocol) cloud. Recent developments in the field of telecommunications showed the concept of IP cloud as a service which can have all the other services like broad band, frequency reuse and traffic engineering enclosed in it. IP- cloud converted all the aspects of telecommunications in digital domain (Etisalat Company). Broad band, IP-cloud and traffic engineering services offered by Etisalat can be easily overviewed from the following diagram: Source: IP- Cloud. The concept of IP- cloud results in thinking of services like a cloud which is formed by user itself and used by user too. This whole theory and practical implementation is an inspiration from a natural system known as water cycle or rain cycle. Evaporation of water from reservoirs of water present in earth like oceans and rivers results in clouds to form and then resulting of water seeping through water reservoirs. Source: Water Cycle Concept of IP-cloud is same as this natural process named as me to me service by Etisalat. User creates services like broad band and internet services itself and used them accordingly. If one has a closer look on all the communication services available it is proved clearly that services like me to me are basically birth of ideas of that were once imagined by common users of telecommunications. User demands generated these services and ultimately they are paying for the same services on using those. It is shown from point of view of Etisalat by following diagram: Logo m2m service by Etisalat Source: http://www.etisalat.ae/en/system/images/business/m2m-diagram.png User of m2m service enjoys multiple services wirelessly doing any task related to daily routine. Etisalat is providing the services of m2m on commercial basis. It is aimed at the purpose of automation needed by different businesses. Etisalat is one of the pioneers in the field of telecommunication services. It is dominating the telecommunication industries of Middle East and most of the Africa. Etisalat has a positive impact on the business community regarding telecommunications all over the world. The region company belongs to that is Middle East is generally considered as dependent on oil production and people of the region Arabs as reluctant to do business and accept modern technologies easily. U.A.E is considered as a place where east and west meet with each socially, geographically and economically. Etisalat has taken modern business ethics as constitution and loyalty to mother as honor. These both factors are considered as responsible for the success of Etisalat. Etisalat is like a shining star for underdeveloped countries to follow (Etisalat, 2 to 9). Challenge of expanding the organization globally was faced by Etisalat and this challenge needed a great strategy from administration of Etisalat. It is present in 18 countries of the world. All diversities in cultures of different countries should be taken into account by the administration in order to meet the requirements of the customers present in these countries. Etisalat is one of the companies which are dependent heavily on the management decisions taken by its managers. To meet the challenges of international presence and cultural diversity Etisalat should be able to train and update its staff and management according to challenges that are raised on daily basis (Etisalat 2012, 2-9). The issue rose due to globalization of the company like dealing with diverse staff with different values and modern issues like e-money and related issues demanded continuous brain storming and collaborating from the managers with other members of the staff present locally and internationally. Lately importance of e-money which was not acknowledged first by many of the companies around the world was given approval by the management of Etisalat. The change of management at regular intervals with change of main ideas concerning technologies is the main strategy of Etisalat to meet the challenge of globalization. This fact is also approved by the core management as according to them the reinforcing the management, planning and acknowledgement of new technologies is the heart of the strategy adopted by Etisalat. Company’s objectives according to the top management are twofold. First is to attract and flourish the top talent within the organization as a whole. Secondly all the procedures are filtered and viewed by proper system of accountability. Without compromising the quality of services and products use of manpower by Etisalat is the key for its success (Etisalat Company). Apart from taking all the measure taken by the administration of the company the international campaign of the company failed extremely. On proper analysis of the issues that contributed to the failure of the international campaign of the company. Some of the suggestions are given to the company by experts. These suggestions include change of culture present in the company Etisalat (which is traditional U.A.E centered), increasing the element of commitment in the top management, the change in behavior of the top management would act as a tonic or mile stone for other staff to follow, the change in cultural values and their support for the change of culture will lead to an image which will benefit company in order to penetrate more international markets, a training program or department should be arranged for the workers of the company in order to make them able adjusting to the rapid changes of the industry taking place and final and most important suggestion is to revise the existent pay structure of the company (Etisalat Company). Main stake holders according to the core management and staff of the Etisalat are satisfied customers present all over the region where company is present. The presence of the Etisalat in Middle East and most of the Africa makes these entire countries stake holder of Etisalat. Etisalat as a company leading the field of telecommunication services in most of the countries like Kingdom of Saudi Arabia. This factor also makes the company responsible to take care of moral values related to the countries that are participating in the development and progress of Etisalat. Suggestions of the experts given to Etisalat in order to expand its business internationally resulted in major changes of the strategy and ways of the management. New strategy planned by the management of the company in 2012 enabled it to focus on the critical internal and external factors (Etisalat 2012 pages 2-9). Etisalat has realized that the rapid changes that are taking place in the technology and exciting and new challenges that are faced by the industry is creating a huge competition for the company regarding its long-term aspirations (which is to become globally effective and making partnerships with different countries or companies of the world). Etisalat also believes that the future connected society of the whole world generally called as global village can be held or connected on the basis of telecommunications. Etisalat wants to play a vital role in this scenario of modern world that is going to take place. Customer’s experience of services provided can be improved by taking into account the factors like in-depth knowledge about the customers and factors that are related to the customers. On acting on the new strategy developed by Etisalat’s managers and workers it is also a target of company to provide a common plat form for the all the telecommunication industries of the world for knowledge sharing as its mother country has strived for providing a common plat form for all the countries of the world. It is known by all parties of the world of telecommunications that only way to meet the challenges and complex nature of demands is to increase collaboration between all telecommunication industries that are present in the world. Positive steps are taken by management regarding the removal of power difference between its offices. Etisalat has also created a system in which there is a balance between individualism and collectivism. Individual and collectivism both benefit the goals of the company but if there is a blend of both available causes stability in the system. Middle East is known as a part of the world where there is greater dominance of males as compared to females. It is also present in Etisalat as most of the staff of the company is of male employees. Recently this trend is tried to be reduced by many companies present in the Middle East by hiring women as their staff like Etisalat. Long and short term visions and plans are set by the management clearly throughout the company. Long term plans and vision include a greater share in telecommunication industry present all over the world. Etisalat wants to have relations with countries and companies all over the world in order to maximize its exposure and profit. Short term plans include the change of whole organizational culture, giving employees a friendly and innovative environment for their creative ideas to follow freely. Factors like environment available to the employees of the company are of great concern in modern day industry. Moral and ethical codes are devised by different social organizations regarding business ethics issues. Issues like unnecessary exploitation of employees, bounding them in the name of brand or company reality are part of debates that are happening all over the business world. Etisalat being a Middle Eastern company holds a great responsibility as a pioneer and land mark for other companies of the region. Worldwide telecommunication industry has created USD 1.7 trillion in 2011 only. This shows that there is still a great potential of investment available in this industry. Etisalat wants to play a key role in order to improve the growth potential of the industry. This growth will be governed by the concepts of broad band and voice in case of some markets of the world. Company’s vision of 2017 has been developed keeping in the view of all the innovative factors and also have pillars for further construction of these ideas (Etisalat Company). Etisalat like its mother country is one of the pioneers regarding the formation of a healthy partnership between west and east. It has done many commitments with western countries like CISCO (company providing routers and switches for communications). While on the eastern side it is helping many underdeveloped countries to have better telecommunication services and come in the race of this major developing industry of the world. With a dedicated management and innovative staff one can be sure of the fact that in the coming future Etisalat will be a leading company in the field of communications (Etihad). Works Cited Water Cycle. "Diag Water cycle." Sawater. Sawater.com, n.d. Web. 8 Dec. 2013. IP- Cloud. Tango Telecom | Tango Telecom | Policy Control and Charging, Next Generation Messaging Solutions, Cloud Services, EU Roaming III Solutions. http://www.tangotelecom.com/, n.d. Web. 8 Dec. 2013. Organizational Infrastructure of Etisalat. Telecommunications Regulatory Authority (TRA). www.sawater.com, n.d. Web. 8 Dec. 2013. Etihad. "Etihad Etisalat Company - Company Directory - ArabianBusiness.com." Arabian Business. N.p., n.d. Web. 7 Dec. 2013. Etisalat Company. "Etisalat - Products and Services - M2M Control Center." Etisalat -. N.p., n.d. Web. 7 Dec. 2013. . Etisalat 2011. "Annual Report 2012." Etisalat -. N.p., 2013. Web. 7 Dec. 2013. . Etisalat 2012. "Engaging Business and People." Etisalat -. N.p., 2011. Web. 7 Dec. 2013. . Read More