Aramex and Al-Futtaim in Strategic Decisions (Essay Sample)

Case Study Analysis of ARAMEX and Al-Futtaim in Strategic Decisions
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Table of ContentsIntroduction3Short Description of ARAMEX and Al-Futtaim and their Respective Industry3The Rationale behind ARAMEX and Al-Futtaim Strategic Decisions4Appropriate Strategic Tools to Assess the Relevancy of their Strategies5Factors/ Root Causes that Lead to Success or Failure6The Major Strategic Issues ARAMEX and Al-Futtaim Can Face8Recommendations on Future Sustainability of ARAMEX and Al-Futtaim Motors10Conclusion12References13
Case Study Analysis of ARAMEX and Al-Futtaim in Strategic Decisions
Introduction
The research paper is used to examine the case study analysis of ARAMEX and Al-Futtaim in making their strategic decisions considering theory and practices in the areas of strategic decision making. ARAMEX and Al-Futtaim deal in comprehensive logistics and transportation services and deliver customized solutions throughout the UAE for their customers. The paper examines the rationale behind the strategic decisions of their management to make the companies competitive among other market players. It also examines the tools and techniques that can be used to examine their strategic business success depending on their successful business strategies. The paper also covers flaws and errors that could cause their strategic decisions to fail considering their strategic business objectives. It examines the critical strategic approach of ARAMEX and Al-Futtaim Logistics and recommends possible strategic decisions that the management of both companies can adopt to be successful in achieving their business objectives and developing strategic meeting their customer needs.
Short Description of ARAMEX and Al-Futtaim and their Respective Industry
Aramex is the global logistics and supply chain management provider and the company offers logistics services to their customers in more than 54 countries. Aramex is the UAE based company and it has made enormous growth in the recent years due to their effective strategic decisions by realizing the requirements of their customers and providing them with best solutions. Al-Futtaim group is the second selected company which deals in logistics and supply chain management services and the company is based at Jabil Ali, UAE. Unlike Aramex, Al-Futtaim is also committed to provide best solutions to their customers in logistics, transportation and supply chain management to be strategically successfully in meeting their customer needs.
The Rationale behind ARAMEX and Al-Futtaim Strategic Decisions
ARAMEX and Al-Futtaim are two UAE based companies that deal in providing logistics and transportation services to their customers. ARAMEX is the global logistics and transport provider and it has developed strategic business decisions to deal with their customers across more than 54 countries and 307 worldwide work locations. Aramex is focused on the development and empowerment of associated communities and entrepreneurs. Logistics and Transportation can make huge environmental impact; therefore, the management of Aramex is always committed to adopt sustainable business practices as an integral part of their strategic decision making. Aramex management has developed their strategic decision making strategies by understanding the importance of their customers. They ensured it by developing the warehousing within the supply chains of their worldwide facilities. The Aramex also invested heavily in green technology to make sure their storage and inventory management services are in line with the environments associated with them by ensuring minimization of the carbon footprints (Philips 2011). Al-Futtaim is headquartered in Jabel Ali and it is one of the leading logistics and transportation services providing company and it has offered full range supply chain management services to their customers throughout the UAE. The rationale behind the strategic decisions of Al-Futtaim is that they are committed not to compromise on the quality of logistics, logistics and supply chain services provided to their customers. The management of Al-Futtaim make sure to carefully examine their customer needs and to suggest solutions by understanding their customer needs by customizing services suited to their business needs of the customers and ensures the solutions that are delivered in excellence (Lala 2013).
Appropriate Strategic Tools to Assess the Relevancy of their Strategies
The appropriate tools and techniques are used to examine four step approaches in the strategic management and planning of Aramex and Al-Futtaim logistics throughout the UAE and across the globe. The appropriate strategic tools are used to examine where the company stands and what are their objectives to achieve to ensure sustainable development of their logistics and supply chain management services. The strategic planning of Aramex and Al-Futtaim is adopted to know the strategic planning approach of both companies and in which areas they are going to provide environmental friendly logistics and transportation services to their customers. The management of both companies should evaluate their previous and current strategies and what areas are needed to be improved to get customer satisfaction in the areas of timely, error free and productive logistics and supply chain at the doorstep of their customers. In order to evaluate strategic tools and techniques to be used in the strategic decision making of both companies, the management of these companies can conduct stakeholder analysis, Pestle analysis with political, economic, social, technological and legal factors, and SWOT analysis to evaluate their business strengths, weaknesses, opportunities and threats. The management of these can also use Porter’s five forces of Competitiveness to evaluate their company’s market position and how they can overcome various issues and problems and issues of new market players (Fred, 2003).
Factors/ Root Causes that Lead to Success or Failure
Factors that could lead to success or failure of both the companies in the automotive industry are based on the following points including
Lack of Leadership
Both the organizations, Aramex and Al-Futtaim logistics and supply chains can face issues of leadership in their strategic decisions making. The lack of leadership vision to effectively collaborate and to ensure the resolution of various organizational issues, organizations can never succeed in achieving their business objectives. The lack of leadership can also enhance the de-motivation level among workforce. It is the responsibility of the leadership of both the organizations to resolve potential issues of their workforce and to suggest best solutions whenever they are stuck in their job responsibilities.
Inadequate Strategic Decisions
Strategic decision making and strategic planning is highly important in achieving business objectives. If the management of Aramex and Al-Futtaim fails to make effective and result oriented strategies, they can never succeed in achieving their business objectives of satisfying the needs of their customers in the automotive industry and building trust among key stakeholders.
Lack of Resources
Every organization needs necessary resources to be successful in meeting their strategic business decisions depending on the theory and practice of the strategic planning. If the under study organizations, Aramex and Al-Futtaim, fail to meet their customer requirements due to lack of human resource, technological and raw material resources, they will be unable to achieve their business objectives.
Underestimation of Competitiveness
In developing their strategic business strategies, the organizations including the Aramex and Al-Futtaim logistics and supply chains should best estimate their competitiveness among other market players in the automotive industry. The underestimation of their competitiveness could cause severe issues in the achievement of their strategic business objectives.
Strategic Mindset
If the strategic mindset is positive and contribute towards the growth of their business objectives, the organizations are expected to achieve their business goals otherwise deficiencies in their strategic mindset could cause deterioration in their strategic decision making and achievement of their business objectives.
Strategic Planning
Inefficiency of the organizations in strategic planning could result in the failure of their strategic management and strategic decisions making. Strategic planning determines the current standing of the company at the marketplace and what they are planning to achieve in the automotive industry. Both the organizations, Aramex and Al-Futtaim logistics, may face issues or root causes of failure in their inefficient strategic planning to successfully compete in the automotive industry among other market players.
The Major Strategic Issues Toyota and Nissan Face
Globalization
Today is the world of globalization and no company could succeed without expanding their business operations in cross-cultural locations. Similarly, Aramex and Al-Futtaim logistics can face the challenges of globalization as companies are becoming more and more globalized. Without realizing the requirements of their customers globally, no company could succeed and ensure growth by meeting their expectations of their customers and globalizing their business operations. Aramex and Al-Futtaim logistics can setup their manufacturing plants by realizing the importance of globalization and their expansions in other countries (Naghibi and Baban, 2011).
Recruiting & Retaining New Workforce
When companies expand their business operations in cross-cultural environments, they must adopt best strategies in recruiting and retaining new employees to meet their expansion needs. Both the companies, Aramex and Al-Futtaim logist...