Unilever Establishing a Tea Factory in Dubai - Essay Example

The paper "Unilever Establishing a Tea Factory in Dubai" is a brilliant example of an essay on business. International entrepreneurship analysis involves comprehending international business, strategic management, social networks, and marketing. International entrepreneurship analysis aids in recognizing roles played by the firm, entrepreneur team and network resources that form the basis for international prospects development and value invention.  This essay will identify and explain how international entrepreneurship analysis has aided Unilever in establishing a tea factory in Dubai.

Through a thorough understanding of the international business, Unilever was able to identify a market share for tea in Dubai. Unilever decided to establish a tea factory to meet the growing demand for tea in Dubai. The Unilever’s supply chain manager admitted that the core reason for setting up the factory in Dubai was the magnitude of the market in the region due to its population and economic growth (Zucchella 4). Dubai’s market share potential prompted the relocation of functional units such as the regional market team to Dubai, strengthening the chain of the supply process. Additionally, the regional market team devised packaging brands that aided in the marketing of the product.

Unilever’s ability to recognize social networks such as banking structures with obtainable financing and appealing tax benefits led to the establishment of the tea plant in Dubai. Setting up the factory was an easy task due to the availability of capital. Other social structures include Dubai’s already established infrastructures. For instance, Dubai’s finest ports eased importation and exportation activities for Unilever (Zucchella 4).

Unilever’s strategic management analysis has led to the use of logistics where it buys tea from other countries such as Kenya, Tanzania, and Indonesia, thereby becoming a suitable central location for the supply chain. The value density of a commodity is extremely crucial as it determines how that commodity is handled in terms of delivery; hence, Unilever decided to set up the plant near the market. Another strategic management move incorporated by Unilever was the notion of transporting raw tea to the markets and then packaging it into tea bags rather than packing the tea leaves in the countries producing tea (Zucchella 4).

Conclusively, as an entrepreneur, I would consider the following two factors in establishing a factory in Dubai: the country’s economy and political stability. Principally, the economy of Dubai is remarkable, which means the circulating money is plentiful and available, and this makes it easy to set up and run a profitable business venture. When a country’s economic growth is high, it provides businesses with a solid basis for growth, advancement, and stability. With a good economy, a country attracts more business industrialists and financiers resulting in business diversification and more economic growth. This, in turn, results in an influx of people creating a wider market. The political stability of Dubai, on the other hand, is another crucial factor to consider while establishing a factory in the country. Dubai has commendable governance that ensures peace and tranquility for the entire nation. Mostly, warring countries with political instability do not provide room for business advancement and growth. This is because of the ever-escalating chaos and destruction of property (Zucchella 4).  Alternatively, Dubai offers business financiers an environment suitable for venturing and investing in multimillion industries, at the same time assuring that everything runs smoothly.