Emaar Malls Group Strategic Analysis (Case Study Sample)

Emaar Malls Group Strategic Analysis
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Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc87180329 \h 3Industry Overview PAGEREF _Toc87180330 \h 4Introduction of the Company PAGEREF _Toc87180331 \h 4Vision, Mission and Philosophy PAGEREF _Toc87180332 \h 6Corporate Objectives PAGEREF _Toc87180333 \h 7SWOT Analysis PAGEREF _Toc87180334 \h 8Choice of Generic Strategy & Why PAGEREF _Toc87180335 \h 12Co-operations PAGEREF _Toc87180336 \h 13Corporate Strategies PAGEREF _Toc87180337 \h 14Functional Strategies PAGEREF _Toc87180338 \h 15Control Instruments PAGEREF _Toc87180339 \h 19Programs to Enforce Ethics, CSR and Sustainability PAGEREF _Toc87180340 \h 20Conclusion and Suggestions PAGEREF _Toc87180341 \h 22References PAGEREF _Toc87180342 \h 24
Executive Summary
The report entails a detailed analysis of Emaar Malls Group, which is among the most successful multination companies in the world regarding property development in the real estate industry. Emaar Malls Group has over 1000 stores and over 150 properties across the world, and in recent years, the business began incorporating the use of Robotic Process Automation, specifically, the ERP systems to aid in streamlining its potential in the competitive market. The real estate industry in the UAE continues to thrive despite its slow growth in the past, which saw the company retrench some of its workers and sell a few of its assets. The reports cover fundamental aspects of strategic management while considering all the decades that the business has thrived within the industry as well as the factors that have been crucial to its success. It examines the real estate industry which is considered to play a key role in the promotion of exceptional human efforts amidst great risks, thereby plummeting sharply over the last five years. Moreover, it gives a brief overview of the company, revealing key details associated with the success and growth of the company from financial records and its mission, vision, and philosophy to show the worth of the business. Equally important, the report also examines the internal and external factors that are crucial towards the growth of the company by performing a SWOT analysis of Emaar Malls Group. The report also delves into the critical success factors such as corporate strategies, generic strategies, cooperations, functional strategies, control instruments, and effective programmes that enforce ethics, corporate social responsibility, and sustainability of the business. Finally, the report includes various suggestions and concludes on the various aspects of strategic management as discussed in the analysis.
Industry Overview
Emaar Malls Group is considered an industry leader in the real estate market in the country, which has all the key and big-name developments. The business is a publicly listed real estate established headquartered in the UAE, Dubai for the most part recognised for constructing, The Burj Khalifa, the nation's notable jewel. In 1997, Mr. Mohamed Alabbar citizen from the gulf region co-founded the company and is currently the CEO of the entire business association. Mr. Mohammed's business establishment has played a key role in shaping the nation to quench its craving for extraordinary and world-class buildings within the major cities. It started to invest in real estate during the late ’90s, thanks to its incredible oil production and scenic beauty (EGH, 2019). As a result, the current real estate projects in the country have put Dubai in the limelight, making the real estate industry in Dubai be noted for its undying energy to traverse overall risks and utilise innovation to make the nation great.
Recently, the real estate industry in the Gulf region including its marketing has dropped significantly. However, there is still state-of-the-art projects that are still underway, such as the construction of America’s Beverly Hill city in Dubai. This will indeed, add value, art, and sophistication to Dubai’s real estate industry. However, there has been slow growth in the real estate industry in Dubai, and this has been the main reason why production is over. The slow growth in the industry led to a massive reduction in the value for land and every immobilisation organisation has been keen to explore new avenues (EGH, 2019). The advertisement, 2020 Dubai Expo will help in reducing the slow pace by promoting the development of more ventures.
Introduction of the Company
Emaar Malls Group is a property developing company established in 1998 in the United Arab Emirates. It performs its business within the Hospitality and Hotels, Malls and Retail, and Property Development subsidiaries (EGH, 2019). According to Forbes (2019), Emaar Malls Group is a global leader in the real estate industry due to its phenomenal contribution to the market. Emaar Malls group operates in further than 17 nations like KSA, UAE, Egypt, Malaysia, Pakistan, Turkey, Lebanon, Jordan, India, France, Great Britain, Morocco, and Indonesia. Emaar Malls Group has improved the infrastructure in Riyadh, Dubai, etc. Rapid investments in shopping, office buildings including accommodation are also taking place.
Emaar’s assets have gained 35% capital in the famous UAE commercial as well as a retail bank, i.e. throughout 2019, the profits of Emaar Malls Group rose by 1.5% to AED 17.84B. Net profit doubled by 2.2% to AED 4.54B. Revenue growth represents Financing division raise of 6.2% to AED 4.54B, Property investment segment growth of 1.3% to AED 12.88B, Global division boost from AED 2.98B to AED 6.95B. Net earnings gained from several other Profit / Expenditure rise from AED 231.1 M to AED 813.7 M (profit). The company's performance was remarkable in 2018-19. This will be the consequence of the endurance and adaptability in which it operates in a modern rapidly-changing environment (Arab News, 2019). Notably, Emaar Annual Report (2018) was estimated at a net profit of AED 7,316 billion, an improvement of 32% over 2018, before understanding the impact of the IPO on Emaar Production as well as Forex Exchange.
Overall revenue rose by 38% to AED 25,894 billion over revenue in 2018. To create sustainable values for EMAAR, all investors have effectively classified the UAE construction-to-sell real estate development company, Emaar Construction, by offering its 21 percent stake via IPO, which has also created AED 4,124 billion. It has declared an extraordinary payout of AED 4.1 billion on sales from its IPO. Given the international uncertainty, the quality of Emaar Developers seems to have been exceptional. The Company stated a total income of AED 15,833 billion, an increase of 75% relative to 2016.
Vision, Mission, and Philosophy
Emaar Malls Group is famous and recognised as the world’s leading premier brand providing a memorable lifestyle, the innovative experience of residency, hospitality, and leisure. The company has a competitive edge and specialisation in the development of quality-assured, and well-developed communities satisfying a plethora of lifestyle needs. Citing from EGH (2019), its Magnus opu is an admirable testimonial to the company’s extraordinary performance in the development of unique and the start of art real estate in Dubai. Through its comprehensive and integrative mission, vision, and philosophy, Emaar Malls Group has been able to launch mega projects such as the “Burj Khalifa” that occupies a phenomenal stretch of land approximately 600 acres. This huge property is currently ranked as the tallest building across the globe. Equally important, the biggest shopping and entertainment Mall is the “Dubai Mall” the best operating lake on earth right now is the “Dubai Fountain” still located within the gulf region.
Mission: To provide property development that enhances the lifestyle of international standard which fulfils construction quality and excellence standards.
Vision: Development of base land of strategic locations through acquisitions. Implement regional economy via development that is tourism-centred. Develop and recruit skilled staff for exceptional results and outcomes. The constant progress of projects to capitalise on the consumers’ retention.
Philosophy
The Mindset of Ownership: A sophisticated approach that inspires innovative thinking to act like owners and assist mindset of ownership along with hospitality.
Rapid Paced: A versatile and flexible organisational structure that helps to pay concentration on what matters a lot and the provision of quick-solution in an efficient manner.
The client is First: Top-notch in combining remarkable hospitality experience and enriching lives with outstanding corporate results.
Winning Together: Commitment to pioneering lifestyles, creation of unique pioneering trends that drives collective achievements.
Corporate Objectives
Emaar Malls Group is committed to ensuring excellence in its HRM activities, which ensures that the department is an integral part of the company. The HR commitment of the organisation provides the required people with practises, strategies, and regulations to enable a thorough execution of the corporate plan. Recruitment, succession, job mobility, preparation, and development are among the activities under his responsibility. The Department also provides the community, the workplace, and compensation and advantages for the business.
The company also aims at sustaining its presence and position in the industry by relying on the recruitment of highly trained workers on the job market. In this sense, the Emaar is keen to keep abr...