Contemporary Issues in Strategic Management

Contemporary Issues in Strategic Management In the fastest changing world where the competition become high among businesses there no one can deny the importance of strategic management which engross the making and implementation of goals and the steps taken by top management of the company on the behalf of their owners. It is totally based on the contemplation of the available resources and it also helps to assess the external and internal environment which helps the organization to compete with others. There are five competitive forces which can influence the organization and can give competition; those five factors can be the bargaining power of suppliers and customers, threat of new entrants in the market, and threats of availability of substitutes in the market. All these factors can give tough competition to the organization. And to tackle this kind of situation an organization needs to have a strong strategic management because it helps to identify the problem as well as provides direction to the organization and helps the organization to be specific towards their goals. It helps the organization in developing the policies which can give guidance to the organization what they have to do to compete with their competitors (Daghfous et,al 2009). Organization can also plan designs with the help of strategic management to attain their objectives and also helps the organization in allocating the resources within the limited time and also helps the organization to implement the plans. In short strategic management facilitate the organization to deal with internal environment and external environment which includes suppliers, customers, competitors etc. Globalization plays a vital role in discharging the borders among many countries, and turned the whole world into a village. But the question is has the globalization is benefiting the countries in the economic stability? Has the globalization influenced the UAE economy positively or negatively? Answer to this question can be getting by observing the growth and development of the UAE’s economy. The globalization has turned the UAE into the most development countries in many fields especially economically. No one can deny the important role of globalization and its effect on the UAE’s economy (Wilkins 2010). It has affected positively affect the UAE policy because it helped the country to increase their overseas or foreign investment and also encouraged to promote the free trade between UAE and the other countries of the world. There was a survey conducted in UAE in the year 2005, according to that survey the flow of foreign direct investment in UAE achieved the record was about 10 US $ billion close to 34% of total flow of foreign capital in the Arab world. And this happened because UAE is politically established, and they maintains rights of working for businessmen and entrepreneurs, these working rights allows them to sale, do the business and rent effortlessly without government intervention and taxes imposing on their products, services and revenues. They have issued licenses to the foreign firm branches and the rates of issuing licenses to foreign firms are increasing yearly. Many foreign got this business license. Foreign countries that got business licenses include UK, India and America. In the view of fact that the world has turned into a small village because of globalization, it makes simple to other countries of the world to know about and get the information about the economic conditions and merits that UAE grants for foreign businessmen. Because of foreign investment there is a notable increase in the UAE economy’s capital stock (Rettab, et, al, 2009). The high capital stock enabled UAE to have tools and structures to produce. Consequently productivity has increased extensively, and in result the growth of the economy of UAE and the living standard of the people has also increased. Globalization has also encouraged the domestic investment of the UAE. In global capital markets UAE has a vital role with many investment institutions, such as Dubai port, Abu Dhabi investment council, Abu Dhabi’s International Petroleum Investment co. The huge increase in the domestic investment of UAE is because the globalization has permitted UAE to deal and do businesses with other developed countries such as UK and USA and also helps UAE to learn that shortcuts to the fastest growth rate are savings and more investment (Wilkins, 2010). There is a debate for some people that more investments and savings can cause the availability of resources for the consumption goods production. Though it can be stated that today’s investments and savings will help to increase the production in the future and UAE can enjoy living standard in future. In the last investment can be define as the path towards the futures which will be bright. UAE is the worlds’ preferred trade hub. According to Bank Doing Business Report ranking the UAE is on the 5th place for the trading across borders or worlds wide. And it is very important for the growth of international trade. Doing business is an important economy activity for UAE which no one can compete in globalized economy and results in increase of the exports worldwide (Al-Fawaz, et, al, 2009). UAE is taking benefit from its competitive advantage as they are trading and improving the competency of trade procedures. It has an online and independent trade network which is extremely flourishing in assessing trade of goods as well as services. Their aim is to make trade faster, low cost or cost effective and easier for the foreign businessmen as well as domestic businessmen to improve the business process with the help of advanced technology. In UAE due to globalization the development of global trade has improved in last few years. This helped UAE in improving their infrastructure and also helped them to increase their GDP (Hvidt 2009). Trade has become important part for any country’s economy growth and development. They need to trade across borders to trade internationally but many countries are having political instability which is a big hindrance in the way of economical growth because foreign countries will not allow their countries to trade with those countries that are politically instable. Another competitive advantage of UAE trade is that they have low trade barriers because of their political stability and the world prefers UAE for trading and business. References: Daghfous, A., & Barkhi, R. (2009). The strategic management of information technology in UAE hotels: An exploratory study of TQM, SCM, and CRM implementations.Technovation,29(9), 588-595. Retrieved from https://www.sciencedirect.com/science/article/pii/S0166497209000765. Rettab, B., Brik, A. B., & Mellahi, K. (2009). A study of management perceptions of the impact of corporate social responsibility on organisational performance in emerging economies: the case of Dubai.Journal of Business Ethics,89(3), 371-390. Retrieved from https://link.springer.com/article/10.1007/s10551-008-0005-9#page-1 Al-Fawaz, K., Eldabi, T., & Naseer, A. (2010). Challenges and influential factors in ERP adoption and implementation. Retrieved from https://v-scheiner.brunel.ac.uk/handle/2438/4361 Hvidt, M. (2009). The Dubai model: An outline of key development-process elements in Dubai.International Journal of Middle East Studies,41(03), 397-418. Retrieved from https://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=5899680&fileId=S0020743809091120 Wilkins, S. (2010). Higher education in the United Arab Emirates: an analysis of the outcomes of significant increases in supply and competition.Journal of Higher Education Policy and Management,32(4), 389-400. Retrieved from https://www.tandfonline.com/doi/abs/10.1080/1360080X.2010.491112#.U5HCQXKSwqM

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