The Global Mindset Framework - Red Rooster in the United Arab Emirates - Case Study Example

The Global Mindset Framework: Red Rooster in United Arab Emirates Your Full Names Your ID No Unit Code and Name Lecturer Name Assessment Task 2 Due Date Table of Contents Executive Summary 2 1 Introduction 3 1.1 The Report Purpose and Structure 3 1.2 Description of United Arabs Emirates (UAE) 3 1.2.1 Economic Dimensions 3 1.2.2 Political Dimension 4 1.2.3 Social Dimension 4 1.2.4 Cultural Dimension 5 2 Venturing into UAE 5 2.1 Aspects of the Global Mindset Framework 5 2.1.1 Intellectual Capital 6 2.1.2 Social Capital 6 2.1.3 Psychological capital 7 2.2 Appropriate Resources to Support Entry and Barriers 7 3 Review of UAE 8 3.1 The Opportunities and Challenges 8 3.1.1 Opportunities 8 3.1.2 Challenges 9 3.2 Alternative Solutions to Solve the Challenges 11 4 Conclusion 12 5 Team Report 13 References 15 Executive Summary Global mindset framework enables an individual or organization to determine the appropriate strategies and techniques to access foreign markets. It also enables the individuals to incorporate numerous variables in the engagement process. The United Arab Emirates has strong economic, social, political and cultural fundamentals. It is a stable country with strong economic deliverables. Through the use of different global mindset framework, which includes social, intellectual and psychological capital, it is possible to enter the market and engage the targeted customers. The framework affords the management skills to understand the requirements of the customers and develop products and services that target the market. Red Rooster fast food business would have to manage numerous challenges even though there are benefits. Some of the challenges include societal and cultural while the benefits are developing economic situation and changing consumer behavior. Numerous solutions to the problems exist, but the most appropriate one is effective leadership. Effective leadership enables an organization to formulate and implement strategies towards achieving organization goals and objectives. Having effective leaders in an organization allows effective decision making processes and advancing strategic obligations. 1 Introduction 1.1 The Report Purpose and Structure The global mindset framework provides ideas and structures to analyze a business environment and determine strategies to enter the market and manage the business effectively. The report employs global mindset framework in entering United Arab Emirates (UAE). The business introduced is a fast food called Red Rooster. The first part of the report discusses the description of United Arab Emirates. Some of the factors discussed include economic, political, social and cultural dimensions. The second section discusses the mindset framework, which includes cultural, strategic and multidimensional perspective. The second section of the report discusses the challenges and opportunities of starting the solutions to address the challenges. The fourth section presents recommendations for running the business and addressing challenges. The last part presents personal perspective and reflection on the entire experience of completing the assignment. 1.2 Description of United Arabs Emirates (UAE) 1.2.1 Economic Dimensions Like other Arab Countries, UAE economy is based on gas and oil. However, diversification has continued to be embraced in advancing the economic fundamentals. For example, service and agricultural industry are picking while tourism also plays an important role. Based on 2013 estimates, the GDP was $570 billion while the GDP growth rate is 4.6%. The GDP per capita within the same period is $63,181 while the labor force is estimated to be 4.34 million (Euromonitor International 2015). Other common industries are pharmaceuticals, textiles, construction materials, fertilizers, petroleum products and aluminum (United Arab Emirates 2015). The economic position of UAE within the Arab region and the numerous corporation and partnerships with different countries and unions make UAE favorable for business activities. 1.2.2 Political Dimension The United Arab Emirates is made of seven Emirates. Each of the Emirates has its specific governmental institution and other supporting institutions. The family individual of each Emirate is responsible for electing the vice president and president for five-year terms (Central Intelligence Agency 2015). The political system is effective even though debates exist on some of the fundamentals of the constitution and human rights. Apart from these complaints, the political system and conditions of UAE are stable (United Arab Emirates 2015). In addition, effective mechanisms exist in formulating and implementing legislations meaning that the government encourages investments (Al Junaibi et al. 2013). Dispute resolution and engagement with different stakeholders including expatriates and educational systems advances the requirements of the political system and advances business opportunities and operation of businesses effectively. 1.2.3 Social Dimension In fulfilling the requirements of the business, Islam plays an important role. The Islamic teachings define the nature of businesses and set rules that have to be embraced. The living standards and the views of the citizens and customers are diverse (Euromonitor International 2015). The access to information and communication mechanisms has improved the understanding of the customers who are seeking new products and services. Red Rooster would benefit immensely because of the change in consumer behavior when it comes to consumption (Central Intelligence Agency 2015). The working opportunities are increasing while the population needs are changing meaning that more people are visiting the fast food to fulfilling the eating requirements and address the societal expectations. 1.2.4 Cultural Dimension UAE has numerous cultures and subcultures, and the components of these cultures whether social or economic come together to create a social identity and a common culture (Al-Kandari and Jukes 2011). The cultural dimension is based on the Islamic seasons and the designation of poetry and clothing to the development of the societies (United Arab Emirates 2015). The role and responsibilities of different individuals are integrated in the way business is done and the clothing during these periods defines the effectiveness of the business operations (Euromonitor International 2015). Furthermore, the employment opportunities and the general operation of a business should integrate the requirements of views of culture. For example, the norms and symbols should be understanding and recognized while fulfilling the business obligations ad requirements. 2 Venturing into UAE 2.1 Aspects of the Global Mindset Framework A global mindset is created because of globalization and internationalization of businesses. The underlying of global mindset is the requirement to understand and appreciate both diversity and strategic adaption to the changing dynamics (Al Junaibi et al. 2013). The common aspects of the global mindset framework that are applicable to the current situation are intellectual capital, psychological capital and social capital. 2.1.1 Intellectual Capital Intellectual capital describes the intangible assets provided to the business by the investors of the business (Ireland and Rajabzadeh 2011). It includes knowledge assets and employees’ efforts that can be associated with copyrights, trademarks, patents, and human thought and innovation. Training and development of the employees improves the capacity of the employees to accomplish different operational requirements. It ensures the employees have the appropriate skills and the capacities to accomplish duties effectively. The intellectual capital requires continuous nurturing and adhering to legal systems such as registering the business and maintaining the image and goals of the business. 2.1.2 Social Capital Social capital is defined as a form of cultural and economic capital that incorporates social networks. The social networks are central to the operation of the systems and can be indicated through market agents, cooperation, trust and reciprocity that are premised on production of services and goods for the common good. In operating the Red Rooster, the social capital becomes integral because the consideration and needs of different stakeholders are incorporated into the entire processes (Ireland and Rajabzadeh 2011). For example, the cultural needs and expectations are incorporated in the management and operation of the business. For instance, the cultural aspects religion is incorporated into the working schedule. The environmental situation would also be considered in the entire process of operation with the aim of satisfying the customers. 2.1.3 Psychological capital Psychological capital targets an individual in the manner the individual accomplish duties and roles (Ireland and Rajabzadeh 2011). Psychological capital is the developmental and positive state of an individual, which is indicted through resiliency, hope, optimism and high self efficacy. The employees in an organization require the motivation to continue operating effectively. It can be achieved through capitalizing on targeting the interests of an individual towards accomplishing organization tasks. It may include provision of favorable working conditions and scheduling tasks with the input of the employees. It is a collective strategy to encourage the needs and requirements of the employees in efficiency and achieving organizational goals and objectives. 2.2 Appropriate Resources to Support Entry and Barriers Effective management and skills are crucial in determining entry and operation of the business. The skilled management would be able to allocate the resources and implement decisions based on the environmental and stakeholder needs. Without effective management and by extension employees, it becomes a challenge for a business to enter a market. Emiratisation is legislation that the government champions employment of the locals (Central Intelligence Agency 2015). The aim is to transfer knowledge and experiences to the local population rather than requiring expatriates to be employed (Hussain et al. 2015). It is a challenge because it becomes difficult to get the skilled employees and the culture of the citizens may contradict with the strategic operations of the business. Capital requirements and financial obligations are crucial. The initial costs are high because expatriates and consultants will be a requirement (Euromonitor International 2015). The movement of finances is also important, and the economic stability of the region is crucial (Al Junaibi et al. 2013). Opening a business in a foreign market means that financial exchange requirements are important and stability of the economy is important. The stability of the environment also informs on the capital distribution and financial system. Infrastructure and technological requirements determine the effectiveness of operations and access to customers (Hussain et al. 2015). A region with effective infrastructural requirements and technological capability makes it easier for an organization to achieve its objectives and aims. Businesses usually look at the technological requirements and infrastructure before setting a business. 3 Review of UAE 3.1 The Opportunities and Challenges 3.1.1 Opportunities UAE is diversifying its economic and societal environment. The political regime is developing and engaging with different stakeholders. The country has also entered into different associations and collaborations with different countries (Hussain et al. 2015). Therefore, the market is large and diversified. The diversified market is important because the market requires a different type of food and the engagement is diverse. The numerous unions enable people to move across boundaries with minimal challenges. Hence, the large market makes it easier for the business to targeted a niche and entice the customers to acquire the products and services. The employment opportunities are increasing while the cost of living is also improving. The people in UAE have high disposal income meaning they can acquire the fast food easily (United Arab Emirates 2015). The increase in disposal income contributes to the development of the society and economy. Therefore, the high income would increase the urge of consumers to sample through fast food outlets and restaurants (Central Intelligence Agency 2015). Therefore, targeting these customers through customization of services and products would increase the number of customers visiting Red Rooster. Serving different varieties of food and products would increase the number of customers (Central Intelligence Agency 2015). The business can be established as a fast food but also serve food that are “healthy.” The society continues appreciating different varieties of products, and their knowledge of healthy products is growing meaning Red Rooster should serve food that targets healthy conscious consumers (Euromonitor International 2015). The target is to increase the number of customers through product and service diversification, which may result in an increase in revenues. Therefore, diversification is among the strategies that Red Rooster can implement in ensuring it increases its market share. 3.1.2 Challenges Trust is important in starting and operating a business in UAE. Trust also contributes to the relationship, which different stakeholders in accomplishing the requirements. A “broker” or lead person is required before any transaction can be done or fulfilling a business requirement (Euromonitor International 2015). Reliance on other people in doing business is a challenge because the individual may misrepresent the business and the business affected. In addition, maintaining trusts sometimes is a challenge meaning that recovering from a compilation is not easy. Mistrust results in a lack of credibility, which also affects the entire business operations. Labor force and the changes in labor requirements create challenges in seeking the appropriate workforce. In addition, the societal and cultural dimensions inhibit the effectiveness of the workforce. The government regulation to employ the local citizens and to phase out expatriates means that the labor costs will increase because of lack of enough employees (United Arab Emirates 2015). Moreover, working in fast food industry frowns because of lack of advancement and other job-related opportunities. Therefore, numerous employment related challenges exist that can affect easily the entire requirements and obligations of the business. Thus, understanding the needs and requirements of the employees relative to the needs and expectations of the government would affect the efficiency of operating the business. Another challenge is the view of unhealthiness associated with fast food (Hussain et al. 2015). Obesity and health complications exist and are associated with consumption of fast food. The society is aware of the problem meaning that it becomes a challenge to engage the customers (Central Intelligence Agency 2015). Moreover, competition is higher, and restaurants providing health wise products are numerous (Elbanna 2010). Well developed companies have developed franchises and chains enticing the customers to visit the chains (Ireland and Rajabzadeh 2011). Therefore, the healthiness of fast food and competition inhibits the effectiveness of the market and also creates challenges in accessing the market. 3.2 Alternative Solutions to Solve the Challenges Effective leadership through integrating transformational and situational approaches would enable effective leadership and making appropriate decisions (Euromonitor International 2015). The leadership should understand their respective roles and analyze the market conditions to enable the determination of appropriate strategic requirements and expectations. The management would also understand the requirements of the society and other stakeholders and create a framework to champion effectiveness. Competition is inherent in any business environment and the strategy to avoid challenges or minimize challenges is employing effective competitive strategies and championing competitive advantage (Euromonitor International 2015). The competitive advantage can be achieved through diversification of products and effective human resource. Two components determine the success of any fast food business, which are the service and food (United Arab Emirates 2015). Therefore, the employees should be trained and given the resources to be effective when engaging with the customers and accomplishing their respective roles and responsibilities. Maintaining credibility through encouraging and championing ethical and moral obligations is important (Central Intelligence Agency 2015). Trust is premised on ethics and moral obligations, and unethical and immoral behaviors contribute to mistrust and complications in the workplace (Euromonitor International 2015). The management and employees should maintain high levels of maturity and adhere to the standards and regulations in place (Al Junaibi et al. 2013). The aim is to ensure the rules of engagement are integrated in the manner the business is operated. 4 Conclusion The most appropriate strategy is to champion effective leadership and capitalizing on theories supporting effective leadership and management. Solutions are important in the management of businesses, and through effective leadership, the challenges associated with employment and fulfilling the needs of the government can be completed easily. Effective leadership is also important in strategic decisions and determining the appropriate frameworks and procedures to achieve goals and objectives of the business. Therefore, global mindset framework is important in understanding business dynamics, especially when exploring international markets. It enables the use of different techniques including cognitive and psychological in making appropriate decisions. A business faces different challenges when it enters into the different business environment, and such an environment is the United Arab Emirates. The economy, society, culture and political system in UAE encourage and supports business. Establishing a business is easier, and the environment is appropriate to achieve organization and strategic expectations. The framework of psychological, intellectual and social capital are important because it enables an investor to understand the requirements of the business, and employ strategies to achieve the goals. The aspects of the framework enable bringing together different fundamentals and strategies. In any business environment, challenges are inherent and in the case of Red Roosters, challenges and opportunities exist. The challenges include the lack of enough human resource, trust related issues while the opportunities include economic development and the changing consumer behavior. To solve the challenges, effective leadership is paramount to the entire processes. Moreover, championing ethical and moral obligations are also important since it is appropriate to follow and adhere to the legal system and societal frameworks. Effective leadership enables balancing stakeholder interests while ensuring the business achieves predetermined goals and objectives. Therefore, effective leadership is important to the success of the organization. 5 Team Report The group worked together in completing the assignment even though there were challenges initially. The challenges include determination of the role of each individual, the location of the meeting (to discuss about the report) and timing of the entire requirements of the report. Through consultative and deliberation, the challenges were ironed out, and the grouped worked together in collecting the material and completing the assignment effectively. In addition, the team worked harmoniously after addressing the challenges and the report was completed on time. Thus, effective teamwork is important in creating a high-quality report. The three members complement each segment while the entire team participated in completing the conclusion and reviewing the entire report. Member one completed the introduction part; member two completed the framework analysis section while member three addressed the challenges and benefits. The members also contributed in writing the team report. After writing the report, copies were made in which each member checked whether the information presented was correct and corrections were made based on the instructions. Therefore, even though each member completed a specific section, teamwork played an important role in compiling the different sections of the final report. The instructions in writing the report were understandable and clear. Therefore, omissions and lack of adhering to the instructions would not be acceptable. However, differentiating between social and culture fundamentals were a challenge because some of the components of social and culture interlink. However, the authors balanced the requirements of culture and society in ensuring the business environmental conditions are understood. Time management and team management were a challenge, which could be corrected ion the future. The team members delayed in approving some sections while also the team faced time constraints because of individual challenges. The solution in future is starting the assignment earlier and employing time management skills in ensuring the sections of the report are completed on time. In addition, management of the team was a problem because it was a challenge in following the members and determining the amount of work completed. A team leader is important in teams of more than two people. In future, individuals will be assigned duties and follow pup will be important to determine whether the project was completed on time. References Al Junaibi, A., Abdulle, A., Sabri, S., Hag-Ali, M. and Nagelkerke, N., 2013. The prevalence and potential determinants of obesity among school children and adolescents in Abu Dhabi, United Arab Emirates. International journal of obesity, vol. 37, no. 1, pp. 68-74. Al-Kandari, D. and Jukes, D.J., 2011. Incorporating HACCP into national food control systems-Analyzing progress in the United Arab Emirates. Food Control, vol. 22, no. 6, pp. 851-861. Central Intelligence Agency. 2015. The World Factbook: United Arab Emirates. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html Elbanna, S., 2010. Strategic planning in the United Arab Emirates. International Journal of Commerce and Management, vol. 20, no. 1, pp. 26-40. Euromonitor International. 2015. Fast Food in the United Arab Emirates. Retrieved from http://www.euromonitor.com/fast-food-in-the-united-arab-emirates/report Hussain, M., Ajmal, M.M., Khan, M. and Saber, H., 2015. Competitive priorities and knowledge management: An empirical investigation of manufacturing companies in UAE. Journal of Manufacturing Technology Management, vol. 26, no. 6, pp.791-806. Ireland, J. and Abdollah Rajabzadeh, S., 2011. UAE consumer concerns about halal products. Journal of Islamic Marketing, vol. 2, no. 3, pp. 274-283. The United Arab Emirates, 2015, Ministry of Economy, Retrieved from http://www.economy.gov.ae/english/Pages/default.aspx Read More