Sample Report On Al Manal Establishment Is An Import Player In Manpower Business In Abu Dhabi.
Since its establishment in 1993, the company experienced a steadfast growth rate with a profit of AED 245,000 in 1995.
However, turbulences hit the company leading to a substantial decline in performance in the period between 2002 and 2004.
The main challenge, that faced the company, was the abandonment from the owner who focused entirely on pursuing new opportunities and new businesses in the construction industry.
The changes in the regulatory requirements from the Ministry of Labor imposed stringent implications on Al MANAL in 2011 compelling the management to reconsider their strategies
Before delving into the reasons for or against expansion at Al MANAL, it is judicious to take into consideration various factors characterizing the industry environment
SLEPT Analysis is an acronym standing for the Social, Legal, Economic, Political, and Technological factors prevailing in the environment where the business operates
Al MANAL operates Abu Dhabi, which presents an ever-changing political, social, economic, legal, and technological environment. These changes significantly influence the operations of the business either directly or indirectly.
The table below presents a simplified SLEPT Analysis of the environment of the industry where Al MANAL operates:
Directional strategy enables an organization to improve its competitiveness by evaluating the need to expand, cut back, or continue without change
Diversification and concentration are the most probable ways of expanding operations
Al MANAL may consider either a vertical or a horizontal growth strategy. Horizontal growth strategy will allow Al MANAL to venture in other geographic locations
While developing a strategy for expansion, an organization can either embrace a pull or push strategy. Pull strategy allows a company to pull its services by focusing on advertising to establish awareness among the potential customers
Implementing the strategy involves the aligning of the objectives, strategies, and policies in order to develop actions by coming up with programs, budget, and procedures
It is important to consider the necessary human resource factors, activities for aligning the objectives towards the desired direction and deciding on appropriate ways of executing the strategy
A program helps the organization to make the strategy to be action-oriented
These theories provide a conceptual view of how Al MANAL can review its strategies to resolve the dilemma
The company should continue embracing the diverse culture that stimulates creativity and ensures variety of skills in its leadership
The management should not only focus on pursuing new opportunities and new businesses in other industries at the expense of Al MANAL
The company should adjust its recruitment strategies to suit the new policies put in place by the Ministry of Labor. For example, Al MANAL needs to adjust its budget to accommodate the increased cost of licensing and bank guarantee
Al MANAL needs to consider horizontal growth strategy because the owner has a wide network due to his smart attitude, VIP friends, and his work in various places