Case Study Of Qatar Diar Commerce Essay

Case Study Of Qatar Diar Commerce EssayThe real e acres industry is a development process that involves establishment of real estate in prepared land by individual, government or developers. In this kick the bucket Qatar was chosen as the country and Qatar Diar as the real estate play along.To represent growth economy of Qatar with an eye to manage Qatars real estate development priorities Qatar Diar was established in the stratum 2005 by Qatar Investment Authority (QIA) which is the autonomous wealth inventory of Qatar state. Northwest of Doha and on the coast of Arabian Gulf Qatar Diars headquarter is located. It pricked with $1bn capital. Its main concern was investment in real estate and community based projects. Since the start the attach to has worked on its portfolio which is worth $60bn estimated by dint of its worldwide investments.Vision and MissionQatar Diars vision is to be the finest real estate company in the world by valuing consumer imagination, cultural va lues and inspiring relations. Companys vision statement is so far being honest with its vision. It has since its in corporation focused on luxurious ventures.Despite the concomitant that Qatar hasnt seen booming real estate bubble like its neighbour UAE Qatar Diar has provided with excellent opportunity to represent Qatar in the real estate grocery store.Mission of Qatar Diar is to improve lumber of life of Qatars lot and in places they volition have project by creating distinguished grand development projects by valuing top industry standards.Since the beginning the company has worked on the standard of its developments and it is evident from the projects they have done so far. More discussion on that will be in the next dent.Projects of Qatar DiarIn a short span of time Qatar Diar has managed to create a global portfolio of real estate projects. At present the company has projects in Qatar and GCC, Asia, Europe, The Americas and Africa.Companys first project was Lusail metro polis which was launched in December 2005 and soon it gained momentum. It wasnt long when Qatar Diars innovative outlook started gaining praise for its work. This city is progressively self-contained which is the largest singleton real estate development undertaken in state of Qatar.Although the project hasnt completed yet but Lusail have already created buzz about Qatars grand scale vision on next generation of developments. Qatar Diar already has become synonymous to prize. Lusail Real Estate Development Company started its journey in September 2008 to operate the expansion, construction and other development operations in leg determinationary Lusail City Development.In 2009 November under Qatar Diars flagship Qatar Railways Development Company was established which was of signifi tin screwt value for its portfolio. This company brought Qatars vision of creating a fully integrated field of study rail network and this regions first ever integrated railway system into reality.In parallel with its developments in Qatar, Qatar Diar has always been committed to focusing on outside(a) market simultaneous to domestic market. Not only life of Qatars people was touched by Qatar Diar but also it has touched million people through its worldwide development ventures. As of now it is now one of the virtually famous, trustworthy, respected real estate company. It has become possible because of its continuous commitment to quality service, developing communities with state of the art innovative designs, worthy partnerships and trademark sustainability promise.In January 2012 report released by Qatar Diar it has US $4 billion capital with currently undergoing 49 projects solely in Qatar related to development and planning. Also they have projects in 29 countries all around the world which combined git be cute at US $35 billion.Strategic Business Management and Planning ToolEvery business operates in micro and macro environment. To be booming in this competitive age every(prenominal) business have to have strategy for its operations whether its company management or marketing its products. For a company like Qatar Diar it has greater responsibility towards its wider stakeholders. For the purpose of this study focus will be given on two widely used strategic tools. bring up AnalysisPESTEL AnalysisSWOT Analysis of Qatar DiarSWOT which stands as an abbreviation of Strength, Weakness, Opportunities and Threats is a widely used tool to analysis an organisations current standing in the business environment.It also looks into the future considering current competitions. This is a comprehensive planning tool where internally it focuses on strengths and weaknesses of an organisation at current state and looks into immaterial impact factors in forms of opportunities and threats (Sadler, 2003).http//www.lindsay-sherwin.co.uk/guide_managing_change/images/01_swot_1.gifFigure SWOT to Business Strategy (Sadler, 2003)From both external and internal apprais al Confrontational questions are generated.For every single prospect which strength element can assist the company to take advantage of the opportunity and which weakness can form a barrier to do so.For every single Threat which strength factor can lead to compete with the threat and which weakness can bound the company non to do so. pastime SWOT analysis examines Qatar Diars Strengths, Weaknesses, Opportunities and Threats considering its present scenarios.StrengthsStrengths of a business are all the positive elements that it do exceptionally well and generally are under its control. The strengths of a company gives it competitive edge over other business competitors. Often a company will emphasis on its strengths to reach to sore dimensions. beneath is a make of strengths for Qatar Diar.Having associations with other robust and prevalent businesses around the globe is a study advantageous point in time for Qatar Diar as it helps bring in tonic clients and make business more operative. Qatari Diar since beginning have formed well alliances in form of sum ventures with construction and management firms. In 2008 it subscribe agreements with Germanys Hochtief in 2009 signed agreement with Germanys Deutsche Bahn to form the Qatar Railways Development Committee (QRDC). Under this committee, the Qatar Railways Company manages the expansion of Qatars $35bn rail system. In 2010 it joined with Frances Vinci Construction. beingness a market leader, as Qatar Diar is, is key to their success as it increases status, revenue and market share. Under Qatar Diar in that respect are several key real estate development is on-going which gives Qatar Diar additional advantage.Innovation is a vital component of Qatar Diars overall accomplishment, as this retains them way above the other real estate companies.Riding high in the niche market in Real Estate industry has helped boost Qatar Diar and raised reputation and turnover. It has so far focused on high end luxur ious projects.Not only they have ambitious projects in Qatar but also in several other countries with high profile construction work in prime locations. The US $1bn expansion of Londons past Chelsea Barracks is one such instance.The establishments developed by Qatar Diar are sustainable modern, meaning this high valued clients will return to Qatar Diar for future projects.Qatar Diars marketing strategy has proven efficiency. Which helped the company to raise profiles and profits and standing out as a major strength not only in gulf region but in the world.Qatar Diars innovation keeps it a leader in Real Estate as it is frequently implementing reinvigorated proprietary technology and design.Experienced employees are key to the success of Qatar Diar helping to drive them forward with skill and knowledge. For example in March 2012 Qatar Diar appointed xiii international righteousness organisations to Qatari Diars six legal boards.High quality machinery used in sites, experienced sta ff, offices and equipment guarantee the job is done to the utmost standard, and is a strength of Qatar Diar.Qatar Diar has a widespread client base, which is a key strength regarding profit. Qatar Diar is spread in all over the globe in prime locations.Being financially strong helps Qatar Diar deal with any problems, ride any dip in profits and out perform their rivals. Qatar Diar has state backing which helps them to stay strong in volatile market.Qatar Diar has emerged as a strong brand which is an essential strength. Qatar Diars international operations establishes its authority over the business.2012 World Cup will be held in Qatar. Before then the company will have some of their high profile projects finished which will enable them to capitalize the event.WeaknessesWeaknesses of a corporation are things that should be im prove for a better result which are under their control. Weaknesses puts a business behind its competitors and create barrier to achieve its target. This secti on will present core weaknesses of Qatar DiarGlobal economic crisis will have an adverse impact on the sales of high end products. As more and more people are trying to hold their money in safe investments. Qatar is yet not as promising as UAE which is first taste sensation among many client.Legal issues that buyers whitethorn face for the developments is still an issue for Qatar Diar as this creates barrier for potential customers.OpportunitiesOpportunities are external deviations, drifts or desires that could improve the business or organisations strategic sceneing, or which could be of a benefit to them. This section will summarize opportunities that Qatar Diar currently have.Qatar Diar gets direct backing from Qatar Government which allows them to have additional support when they go overseas or even inside the country with grants and favourable policies.Sudden change or adaptation of technology could give Qatar Diar an opportunity to ratify future success. Use of social medi a network to promote its products to target markets may open new windows for them.Qatar Diar is in respectable monetary position, which is an opportunity for them to explore in term of investment in new developments.Qatar Diar has the opportunity to enter niche market with their ever favourable government support to maintain leading position and therefore lift financial performance.Grasping the opportunity to magnify the customer base is something Qatar Diar can aim for, either geographically or through new products. Qatar Diar has planned to take its innovative developments to other countries in coming time.Qatar Diar can also explore takeover and merger opportunities could be explored for Qatar Diar and which later can be used to acquire new customers, new resources and enter new markets.ThreatsThreats are reasons which may confine, harm or put areas of the business or organisation at jeopardy. They are factors which are external of the companys control. Being conscious of the th reats and being able to prepare for them makes this section valuable when considering contingency plans and strategies. This section will outline main threats Qatar Diar is currently facing.Consumer lifestyle changes could lead to less of a demand for Qatar Diar products/services.A slow economy or financial slowdown could have a major impact on Qatar Diar business and profits.Rising speak tos could be a major downfall for Qatar Diar as it would eat into profit.PESTEL analysis of Qatar DiarIn the macro environment there are many factor that affects decision making process of organisation. Changes can come in form of law change, trade barrier, impose of tax, demographic change along with government policy changes. These all are changes in the macro environment (Bennett, 2002). We can use PESTEL model to assess and analyse most of these factors. This arrangement differentiates betweenPolitical factors. These factors denotes various government policy for example the degree of involveme nt in the economy. Which products and services the government wants to promote? Which areas will put one over subsidy? Political factors can have tremendous impact on numerous important areas of business. It will determine how healthy the nation is and in terms of infrastructure how good it is i.e. road and rail network throughout the nation.Economic factors. Economic factors overwhelms but not limits to purchase hobby rates, taxation charges, slow or high economic growth, inflation and exchange rates. To understand how it might affect a business with high impact lets see the example higher(prenominal) interest rates might discourage investment since it costs extra to borrow a strong currency may make exporting more knotty because it may increase the price in terms of foreign currency inflation may aggravate higher wage demands from employees and increase costs higher national income growth may boost demand for a firms products companionable factors. Changes in social tendencies can influence on the demand for a firms products and the handiness and readiness of persons to work. In Qatar Diar most of the workers are from different countries. If they cannot offer a competitive salary with other benefits there might be issue with conclusion right people. Also in 10 years time there will be Fifa 2022 World Cup in Qatar this might mean there will be additional interest for people to get involved and invest in properties.Technological factors new technologies generate new products and new procedures. Social net work, online shopping, online booking and computer aided design are all developments to the way we do business as a consequence of improved technology. Technology can lessen costs, improve quality and lead to innovation. These expansions can help customers as well as the groups providing the products. Qatar Diar has access to latest technologies in their work bases which helps them to minimize cost and maximize opportunities.Environmental factors enviro nmental factors comprise the climate and environmental changes. Tourism industry can get hugely affected by temperature change or issues like changed climate. Due to global warming slowly there is earthshaking environmental awareness which indicates that it is not a problem of a region. Qatar Diar also has implications of environmental factors. Sustainable growth will mean that there will be less scope for doing non-environmental friendly tasks. The recent trend of being more environmental friendly is something Qatar Diar can work on to build up campaign or similar movements which will be beneficiary for the business.Legal factors These factors are significant for a business in terms of the geographical area where they are based on. For example discriminations on the basis of age, sex, religion can have huge adverse impact on a businesss operation. Following laws of different country is also important as most of the time they does vary geographically. Also lawsuits can cost a comp any fortune. So having sound legal advisors are a must. Qatar Diar has an experienced panel of legal advisors to assist them with development planning.Different categories of law that has direct relation with Qatar Diar includesconsumer laws these are intended to guard customers against biased practices such as ambiguous descriptions of the productcompetition laws these are designed at defend trivial firms against oppression by larger firms and safeguarding customers are not exploited by firms with monopoly influenceemployment laws these cover parts such as dismissal, sacking, working hours and minimum wages. They aim to defend employees against the misuse of power by bosseshealth and safety legislation these laws are aimed at guaranteeing the workplace is as safe as is sensibly practical. This legislation covers important issues such as training, accident reporting and other provision for safety equipment.Classic PESTEL features to ponder compriseFactorCould includePoliticale.g. Q atar government involvement in real state policies, investment agendaEconomice.g. inflation, credit crisis, national debt, exchange rates.Sociale.g. view towards sure products, demographic characteristics, incomeTechnologicale.g. technological advancement, new ICT product, social networking, new product development by using new technology, rate of technological obsolescenceEnvironmentale.g. global warming, climate change, natural disasters and other environmental issuesLegale.g. laws that company is abide by. competition law, health and safety, employment lawHowever, it is significant not to just list PESTEL factors as this does not in itself tell very much. What business strategic management team need to do is to work out which of the many listed factors may change. For example as a government holding company Qatar Diar will more or less have favourable policies from the government. Problem will plagiarise when it goes to a different geographic location. Qatar Diar has a global p ortfolio that makes it challenging to take into consideration all the wider aspects of all its development activities.In order to assess a big company like Qatar Diar it will be a good idea to distinguish between factors in terms of local, national and global (Drummond,2001).For example, we can evaluate Qatar Diars PESTEL factors asLocal factors such as designing a government project and its approval.National factors such as government law regarding recruiting people for the construction.Global factors such as entering into new market zones and its impact on business.ConclusionThis paper has looked into Qatar Diars business management from a strategic point of view. It is not long since the business was established. Getting world recognition in such a short time is really uncommon in todays world. Qatar Diar has proved how innovative approach in real estate industry can shape its future. Strategically, Qatar Diar has been lucky to have state support throughout its operation. Thanks to its joint ventures it has seen its growth over 29 countries. In coming years Qatar Diar will reach to its peak and probably 2022 will be a milestone year for Qatar Diar.