1- estate development corporations. With verified talents in property,

1-    
Critically
analyze and discuss reasons why the chosen firm may prefer to conduct strategic
planning in secret and keep its strategies hidden from all but the highest-level
executives.

In
the recent years we have noticed that the construction industry worldwide has
picked up its pace. From villas to huge skyscrapers round the world the
construction sector is now at its peak. Alongside the employment rate is also
increasing with more and more construction sites coming up more and more people
seem to be getting jobs.

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With
the number of investments round the world pouring into the middle east we see
most of the developments taking place in this part of the world investments in
the Emaar Engineering have been constantly rising in the Middle East

In
this assignment Bahrain has been taken into consideration for this purpose. Bahrain
is comparatively new to the industrialization sector but we see it flourishing
in the new future. These in industrial projects have been playing a very
important role in the development of this country and the strategies that have
been formulated for this purpose by the officials have also been helpful in
attaining the economic goals of the country.

Emaar
Engineering is one of the world most treasured and well-known real estate
development corporations. With verified talents in property, buying department
shops & retail and hospitality & leisure, Emaar shapes new lifestyles
with a focus on layout excellence, build first-class and well time delivery.

Emaar
Engineering is extending its knowledge in growing master-planned communities
across the world, and today, has a sizable presence in several key worldwide
markets. Concurrently, the enterprise has evolved skills in hospitality &
enjoyment, and buying department shops & retail.

Emaar’s
world-elegance task improvement talents are underlined with the aid of its
iconic assets in Dubai and different global markets.

Strategies
are conducted or laid out by the top level management. The top level management
decides whether to include the middle management in their decisions or not.
Different companies have different policies and therefore with the industry the
policies change along with the rules and regulations devised by the country.
Now in this case when we take the Gulf Region, we know the the laws of the
country are firm and just that allows the companies to prosper at their own
pace and legitimately.

There
are 3 tiers of method, which are corporate level, business degree and
functional stage strategy  (Thompson
& Strickland, 2003) indicates that the
corporate degree method is the approach which determines the general motive and
prospect of an employer and displays on how to add cost to unique parts of the
company. The business stage strategy offers pointers on the way to excel
competition or live on in a specific market and the useful strategy is the
contribution made by using the sources, humans and strategies to the business
and company level strategies. Businesses strive with their strategies if you
want to grow to be the leader of their unique enterprise or marketplace.

If
one has to fully recognize about strategy, its miles mandatory to know about the
five common competitive strategies. The five familiar techniques in keeping
with are low-fee company strategy, in which the organization gives items or
service at a low fee, broad differentiation approach, in which the company
differentiates its products or services making it appeal to an extensive range
of clients, first-class-fee issuer approach, wherein the employer presents
goods or offerings of excessive fine making it worth the quantity they’re
charging that is decrease than their competitors, a focused strategy based on
decrease cost, wherein the enterprises recognition on a narrower purchaser
segment and gives them their items or offerings at a lower fee than its
competitors and centered method based totally on differentiation, in which the
employer makes a specialty of a narrower client phase and produces product
custom designed consistent with their needs.

Strategies
are conducted or laid out by the top level management. The top level management
decides whether to include the middle management in their decisions or not.
Different companies have different policies and therefore with the industry the
policies change along with the rules and regulations devised by the country.
Now in this case when we take the Gulf Region, we know the laws of the country
are firm and just that allows the companies to prosper at their own pace and
legitimately.

We
have taken into consideration Emaar Properties. It may prefer to carry out
strategic planning in secret and keep all its strategies hidden from the line
and the middle management staff could be of the possible following mechanisms:

·       The
Mistrust & Dissemination of Data: the firm’s strategy are the building
blocks of the company. If the mistrust exists more likely are the chances that
the top level management will not share these plans with the next tier of
managers. Reason for this is that these strategies can be easily sold off to
the rival competitors in this industry that could exploit the firm’ from the
given information.

·       Criticism
Limitations: when secrets are kept in strategic planning it lowers down the
level of criticism on plans made. Therefore no one can point out the mistake or
is allowed for second guessing etc.

·       Difficult
to predict the next move: with strategies made as such it is difficult to
predict the next move of the plan of the other company. Whereas the firms that
possess a visible strategy process is more likely to be lured away by the other
firm.

·       No
Duplication: when secrecy exists there are no duplication that may exist in the
firm’s strategy with any other.

The
apparent advantages of the seen as opposed to hidden extremes recommend that a
operating balance need to be sought between the apparent contradictions.
Parnell says that in a great world all key individuals each inside and outside
the firm need to be concerned in strategic planning, but in exercise mainly
touchy and confidential records ought to constantly remain strictly exclusive
to top managers. This balancing act is tough however essential for survival of
the firm. (Ferrell & Hartline, 2011)

 

2. Suggest and critically discuss
any FOUR mechanisms for the chosen firm to continually survive in a competitive
environment.

Strategic
Management has its emphasis mostly on the Porter’s Five Forces of Competition.

Porter
argues that stronger that the stronger the each force is, the ability is more limited
of established corporations to elevate charges and earn earnings. within
Porter’s framework a strong competitive force may be regarded as a chance as it
decreases the income. A weak force may be an opportunity as it is able to boom
profit. The strength of these all 5 forces continues on changing as consistent
with the enterprise and time. The task going through those managers is to
apprehend how appropriate the strategic responses are. In addition it’s miles
feasible for an organization through its preference of strategy to modify the
strengths of 1 or more of the 5 forces to its benefit.
 (Hill & Jones, 2010)

Using
this model we may identify the competitive forces in the construction industry
of Bahrain:

At
the pace on which the industry dynamics have been changing in Bahrain the
country needs to assess their market condition in comparison to the other
middle-eastern countries and reassess their strategies in order to survive in
the competitive environment of the construction industry. The competition in
this industry has the capability for the companies to submit their tenders and
eventually this may lead to a reduction in the labor force. In order to respond
to the change the companies are required to adopt a very flexible type of
management through which it can manage. This may also open doors to outsourcing
of employees.

Industry Competitors- Strong:

With
more and more construction projects taking place there seems to be more of
competition eventually resulting into better quality projects. The industry is
usually involved in submitting tenders and this means more investments from
abroad. Lowest fees is offered at quality service by quality surveying firms
this increases the competition level in the industry and help in retaining the
clients.

New Entrants-Weak

Customers
are not usually loyal and win situation is in favor of the lowest bidder. Very
low switching costs due to these new contractors; new consultants etc come in
play. Requirements for capital development are comparatively high in the
industry of Bahrain. This industry is subject to high risks because of the
rapidly changing environment. 

Substitutes-Strong

With
more and more new and innovative ideas pouring into the market we may see new
processes in the industry. Switching costs are low in this regards as new
consultants will be employed.

Suppliers Bargaining- Weak

Construction
material is easily available to the buyers due to which the suppliers do not
have the bargaining power. Switching costs of contractors is low. All the types
of contractors have to work together, eliminating the competitive environment.

Buyers Bargaining Power- Strong

The
developers have a very high quality of information available to them in order
to make decisions. There are quite a few developers and client’s demand for the
construction of the project. The customers have the authority to delay the
project if they see any low costing budgets of the building available to them.

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