What are the major trends that come out of environmental analysis?
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The environmental analysis enables a business to identify, scan, analyze, and forecast its operations. These may range from internal to external forces. Several factors can affect a business. However, this happens in varying strengths. Trends that are utilized in the environmental analysis include strategic thinking, analysis of both internal and external factors that affect the business, and development of business models to improve sustainability. Some of the main trends observed in the environmental analysis are used as business analysis tools, such as PESTEL and SWOT analysis respectively. These trends are common in most Banks in the UAE as they help in the identification of environmental factors. Moreover, Banks also use statistical analysis indicators, such as STELLA, among others.
What are the major areas of uncertainty?
Macroenvironment usually poses many areas of uncertainty. This is mainly because the company has no power over them. A major area of uncertainty includes the general economic condition of the environment. Slow economic growth will affect the company. Other areas in microenvironments include technology, population demographics, societal values and lifestyles as well as regulations and legislations. However, areas of uncertainty include the economic environment, regulations, and legislation. This is because the two areas are dependent on each other and drag the business when there is high inflation or slow economic growth.
How would a major company in the industry handle those best?
Handling competition is quite essential for companies. The company has to research rival firms as well as new entrants. Moreover, it should give a keen consideration to firms that offer substitute products. In this regard, it is essential for the company to analyze the strength of rival firms, the market position they occupy, strategies, and future actions. These are essential in enabling the business to gather competitive intelligence on its competitors and thus focus on achieving success.
Banks in the UAE
Dubai is strategically placed to utilize competitiveness for a productive future. The city has promoted itself as a major global player with diversification in numerous spheres of business. This has slowly but steadily increased its competitiveness in the global market. It is currently considered one of the best places to live in. Moreover, the number of opportunities it creates yearly is numerous as compared to the fact that the global recession has put people out of jobs in the rest of the world. It is also important to note that it is always working to create competitiveness. This is handy in isolating it as the best place to visit, work, and learn in. Competitiveness means to gain strategic advantages over other players in the market. Dubai has worked to create such advantages over the years. It has invested billions of dollars in the tourism and hospitality industry to build magnificent hotels and sceneries that made the world amazed. In addition, it has ensured that external environmental factors are controlled to ensure the continued growth of businesses in the region.
It is also important to note that Dubai has invested in highly skilled professionals to develop its industries and economy. This shows its commitment to improving competitiveness. Moreover, it has established excellent learning centers to produce highly skilled personnel for the growth of its industry as well as the export of knowledge. Furthermore, its relations with other global economic players have revitalized its prominence in the world. These are significant steps in creating and sustaining competitive advantage. In this regard, it is true to say that Dubai is moving in the right direction. In addition to this, it has created a favorable environment for the invention of innovations, which are key components of achieving success in competition.