The Most Effective Development Process in Energy City Qatar - Case Study Example

Name Tutor Course Date Question 1 Strategic development process: Energy City Qatar Strategic development process identifies the short term goals, objectives, and long term goals and the path to follow to ensure that these are achieved. To ensure the success of a strategic development process, Energy City Qatar emphasizes on the present and not the past. This is mainly due to the recognition that new problems and challenge are arising each day hence the need for need ways and means to tackle these problems (Rummler, 24). The major challenging on this process is on deciding on what should not be done. The company has set objectives, short term and long term goals as well as determined steps to ensure that all these are achieved. In this regard, all the set projects activities and events are directed to the achievement of the goal and objectives of the company. An emergent strategy process proves as the most effective development process in Energy City Qatar. This process integrates individual development, needs awareness and organizational planning in ensuring that set goals and objectives are met through a trial an error method. It is a process that puts what is known in the theory into real life situation and practice. The major concerns are the issues that matter most in the organization (Balasubramanian, 83). Any organization that adapts this method has to go through the process of development. The first step during development is analyzing the environment. ECQ puts much effort in this area to ensure that its busineses are located in a strategic position. This is evident in the recently developed master plan for real Estate where it seeks to interconnect the buildings into smart cities and the intelligent communities. The use of an IP network will enable this to be done. The management has the customers in mind when designing or implementing any project (Davenport, 106). Analyzing the environment and resources This involves an analysis of available resources and the environment where the business it is to be located. This has to be done with a lot of care since inaccuracy can result to wastage of resources and emerging opportunities. ECQ reviews its business through holding interviews with stakeholders and carrying intensive researches on customer need and competitive markets. The purpose in this stage is to build knowledge that is applicable in development and solving issues (Thompson, 234). The organization researches on the competitors and the available market. The also try to understand the external and internal environment. This is achieved through data collection on the customers and their culture as well as analysis of collected information. The organization has managerial positions that are continuously evaluated to determine the effectiveness of the managers and the set processes. Energy City Qatar is one organization that has maintained a high growth rate though the years. This has been possible through the application of SWOT analysis where by continuous research is done to identify business opportunities, strengths, threats and weaknesses hence coming up with a means of how to deal with such (Black and Porter, 10). This includes an analysis of the skills in people and their ability to put them in to practice. In the identification of new opportunities, ECQ has been on the frontline in assessing customer need and establishing the means on how to ensure customer satisfaction. Growing population and increased need for better housing facilities has favoured this company making it the most prosperous company in Middle East. This is evident with the business increasing the variety and diversity of her products and services from rental houses to business centers especially favouring oil and gas trading. For instance, the company initially traded in real Estates only but has now moved in to provide telecommunications, commercial tents, interned among others. Diversifying the products provides a source of extra profit for the company. Since poor infrastructure proved a threat to the success of the business, investing in infrastructure improvement has been adapted Setting mission, vision and objectives After an organization analyses the resources and surrounding environment, it settles for a given location. The next point is developing a mission statement, vision and setting objectives. Goals are set both at the organizational level and departmental level. ECQ is divided to several departments including the finance department to enhance its operation. The set departmental goals and objectives are inline with the organizational goals. Development of a strategy and its implementation The strategy is formulated and a strategic plan of ensuring that the goals are achieved. The management team develops the budget on a yearly basis to accomplish short term goals and on project life cycles to ensure that long term goals are met. Since the company relies heavily on team work in the development process, the strategy is communicated to all stake holders. The appropriate development strategy is determined through trial to identify the most appropriate is determined. However, ECQ does not leave anything to chance. Human resource To identify the appropriate strategy for implementation, much emphasis is place on available human capacity. This is basically focuses on the capabilities, skills and talents of individuals. This include leadership development where workers are subjected to leadership trainings inform of workshops. ECQ invests in human capital as the most beneficial investment for the company. The workshops also target development of team work, management development and improving sales and productivity. Developing communication and infrastructural systems is also important in this level. After this, a plan of action at individual basis is set with personal decisions being directed towards the success of the company. The trial and error method applied emergent strategy process is dependant on the ability to make sound decisions. ECQ applies ideas based on survival for the fittest as it focuses on profit maximization. Investment in transport system, Real Estates, resource data and other support services have attributed to high growth rate in the organization. The business growth rate is incomparable to any other in the Middle East mainly because it has been so friendly to the people in and outside the region. The environment is supportive since the region of its location is politically stable, regulatory environment that is recognized internationally. It has also taken security measures to overcome any uncertainties through research. ECQ has put much money as an investment in promoting its communication system. For instance, it signed a contract with Navlink, Qtel and At&T subsidiary to receive data communication services which are highly advanced. The company has expanded its services globally attracting more customers due to the quality of their good. ECQ has earned customer confidence over the years. It capitalized on this strength hence opening new branches and regional headquarters such as Dubai. This is to bring the services near to the clients resulting to a high growth rate in the available market for produced goods. ECQ also applies perspective strategic process where need be. The change in the strategic process is dependant on the problem at hand. This strategic process involves an analysis of the external environment, setting objectives and goals and analyzing the available resources. The stake holders them develop different opinions dependant on the social cultural environmental setting. ECQ involves all the stakeholders in this process. A selection rational is then developed to come to the most viable strategic route. The strategy is implemented and long-term monitoring done. This process leads to the first step making the process circular in nature. This helps to track the company’s performance and coming up with means to tackle emerging challenges (Leavitt, 121). It is the careful implementation of this process and stakeholder commitment that has maintained ECQ’s competitive advantage. Energy City Qatar is the only company that has adapted the integrated business among all businesses that deal with Real Estates. Its development is focused on global and regional partnership, diversification of economic processes and inward investment. The inward investment will include investment in the region and n the industry itself. The company has sustained competitive advantage through investing in quality leadership, quality consultations and continuous innovations. Organizational learning The organization has maintained a learning environment through the years. The company has plaid a major role in ensuring that its services are up to date and that it keeps pace with the fast growing technology. One reason is that the company relies on companies that are efficient enough for service delivery such as AT&T. ECQ’s services are standardized, resilient and consistent. Continuous learning has been a major part of the development process as company employees share visions concerning the company as a family. The focus has been on the role of each and every employee to contribute to the achievement of the company goals and objectives. As a result, they form a system thinking network where every person’s contribution is regarded as important. This has been made possible by the fact that the employees and other stake holder, including international organizations have continuously held forums and researches together. It is the unit of stake holders that has resulted to the reinvention of new strategies and their implementation. The company relies on team work and solidarity to develop each other for both personal gain and the group at large. This is evident in the association of the company with other companies such as At &T and the customer confidence that has already been built. ECQ is well organized and set to deal with any form of uncertainties in the future. Global warming and economic crises dictate uncertainties about the future. This company continuously reviews its performance through audits and prepares for any circumstances in the future through continuous learning and provoking thought on assumptions made on a daily basis. For instance, the company looks into the possibility of future rise in the fuel cost. This gives the company a competitive advantage when other companies are caught by the situation unaware in the future. Future possibilities dictate how the company prepares in readiness to take advantage of the situation rather than being wiped off. Continuous discussion with all stakeholders in ECQ enables the company to identify uncertainties in the future. Continuous trainings held as well as continuous research make this a reality. The improved communication systems and monitoring systems also form a learning environment for identification of future challenges. People’s perceptions are used to form a theory from which ECQ form the basis of action. The business model of the organization is discussed often to asses the possibilities for it being redefined incase of perceived error or incompetence. The learning organization has not only formed a major par of business in ECQ but also adaptive strategies to respond to unexpected challenges in the future. Learning is basically from previous experience or mistakes mad in the past. There are several benefits attached to the development of a learning organization in ECQ. 1 Efficient use of employees’ abilities, skills, experience and talents. The skills and abilities have been applied in the processing new products and services. 2 Efficiency in responding to changes in the internal environment and demands in the external environment. This includes the adaptation of new technology and replacement of non-performing employees. 3 Development of culture that is customer responsive hence earning customer confidence. Question 2 Strategic Implications for Enhancing Strategic Capability The strategic capabilities which any organization relies on are resources and the competences. These capabilities result from the company’s organization, resources and the change of management strategies. Organization Energy City Qatar has invested a lot in it organization. It targets the employment of global professional who are well acknowledged to run its projects. The company does not rely in assumptions and risking the employment of incompetent workers. Though hiring such workers costs the company much more, it is worth the confidence and customer trust that the company earns. For instance, the company appointed Mr. Moore for the position of a chief Executive officer. This company had to pay him a good deal of money since he is an internationally standing expert in business development and an industry veteran who is well experienced. The cost of labour is higher if an individual has higher professional qualifications and experience. The company has established different levels of leaderships and set qualifications and job descriptions for each. This ensures that every role is accomplished in the organization and the expertise needed is available. Leadership capabilities required for a particular position are determined by the role to be played, ability to compete in the future and the intended business expansion. ECQ has a board of directors that oversee the well run of the organization. They are very instrumental when it comes to in making business decisions and determining the business goals. Their presence has ensures quality performance by the employees translating to increased profit margins. In addition, every position is clearly defined with job qualification and description set. Recently, the company announced that it had created an international advisory board. This gives the business a competitive advantage since ideas and experiences of experts from all over the world will be applied thus increasing company performance as well as improving on the quality of products and services (Jagdish et al, 109). Another implication is that the company will learn to avoid repeating mistakes that have been made by other industries (Leavitt, 55). Knowledge from a wide range of expert from all over the world will give the management a feeling of total cultural representation of different cultures. This in turn will translate to understanding customer need and production of relevant goods that will be irresistible in the market. However, the organization also has negative implications with the major one being increased operational cost. Since the company will employ international experts, the salaries will be higher as compared to when the company employs internal workers. The salaries involved might result to increased cost of products in the market. But this is unlikely to happen since the expertise will result to increased productivity hence increased profit margins. As a result, the extra cost will be catered for by increased profit margins and not through increasing the cost of goods and services in the market. Resources The organization relies on tangible resources which are assets such as finance and people. The other forms of resources are the intangible resources which include knowledge, reputation and information. Excellent and continued improvement in the communication system and the methods of risk analysis are an added advantage. Another resource is location. ECQ is located in a strategic place ensuring accommodation of all departments in the same place. The strategic location is well covered by the transport network system making it easier to transfer goods and raw materials from one point to another. It also makes the company outstanding attracting more people to become its customers. Another major resource is the knowledge and experience. ECQ has operated for more than eighty years and thus has had a lot of time to build customer confidence and earn the trust. It has developed to a multimillionaire company and has sought to develop good relationship with the customers and the immediate neighbours. This company is also customer friendly especially with the application of green house ensuring that it receives support from other organizations. The implication of this is a wide network of stakeholders who add to the value of the company by being a source of more information for the company to implement more projects. Energy City Qatar has also acquired a wide network of customers who are loyal to the company due to the provision of quality products and services, accessibility of these services and the past experience. Another resource is the uniqueness of the housing provided in the company on a long term basis. These gives the company a competitive advantage since there is no any other well established organization with such quality products. These results to the company having a large market share hence a high profit margin (Jagdish et al, 122). The company has intellectual capital as another resource. The fact that the company has a brand name protects it from counterfeits hence reducing the risk of losing customers to other companies. Counterfeits can reduce customer trust on the goods and services being offered in an industry especially if they do not recognize it as counterfeit. ECQ has acquired a good will which has continuously attracted more customers to receive their services hence raising their profit margins on a daily basis. The uniqueness of its services makes it hard for other organizations and industries to imitate. The availability of machines that have high productivity acts as a resource that brings about strategic capability. High productivity reduces the cost of production hence the cost of the product in the market. The company is in a position to sell its products at a cost other companies and industries cannot maintain. As a result, more customers are attracted by the lowered prices while already acquired customers are very loyal to ECQ. In addition, the company buys raw materials in bulk due to the high production. This makes the cost of raw materials cheaper as compared to industries who buy raw materials in less quantity. Strategies of Managing Change Energy City Qatar has continually changing its management strategies. The company is well established in research as the main tool to ensuring sustainability of the company’s competitive advantage (Carr et al, 76). There are four change management strategies applicable in the organization. Empirical rational This strategy assumes that human beings are rational beings and are in a position to adapt change once they understand the personal benefits involved. ECQ has applied this strategy efficiently by holding meetings, training and workshops with the stakeholders and selling to them their goals, aims and objectives. After educating people, there is a high possibility of the change being adapted (Black and Porter, 10). For instance, when the company wants to start selling another product, it has to inform the workers so that they will not view it as an extra work burden hence resist it. This has also applied when the company decides to apply a new technology in it production or marketing. The implication of this strategy is reduced resistance to change. Power- coercive This concept assumes that people will simply comply when told to do a particular thing or they can be made to comply. The ability of the leaders to give command determines whether people will comply or not. In Energy City Qatar, this has been ensured through the employment of qualified personnels with leadership skills at the top most levels. The position one acquires is dependant on their professional qualifications, personal skills and past experience (Carnall, 23). The flow of command is thus efficient resulting in compliance hence achievement of set goal and objects. Non-compliance can result to total failure. Normative-Reductive This concept assumes that people will simply adhere to cultural values and norms simply because they are social beings. It is due to this that ECQ has set core values to be followed by the employees and norms in the organization. One of such is transparency which has resulted to the company succeeding as a result of valuable use of its resources. These norms keep on being reviewed and new ones set to ensure that the company attains maximum success in winning customer confidence and maximization of profit. It also protects the company from collapsing as a result of undesirable practices such as corruption. Environmental-Adaptive This means that people do not easily accept disruption and loss. However, these people can adapt easily if placed in a new environment (Taylor, 78). ECQ applies this by having its workers transfer from one business location to another when change is to be implemented. It also encourages its workers to keep on learning so as to avoid being demoted. As a result, the company ensures high employee retention rate. This implies that recruitments are not done frequently reducing the cost of recruiting new staffs. In addition to all the above, the company has integrated asset classes that are very crucial including infrastructure and advanced management. The advanced management will imply improved quality of products and services as well as improved job satisfaction (Carnall, 34). In conclusion, it is important to note that the success of the company is dependant on several factors. Proper application of available resources, good management, adequate research skills and the ability of a company to have unique characteristics are the main determinants of the possibility of strategic capabilities resulting to a positive implication. Work Cited Balasubramanian, N. Management perspectives: essays on managerial priorities and managemen. 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