Emaar Properties is “a leading real estate development firm based in the United Arab Emirates” (“Emaar Properties,” 2017, para. 2). The company provides managerial services, property development, and construction services across the world. The completion of Burj Khalifa is a clear indication that Emaar Properties is a successful real estate development firm. This essay gives an analysis of the internal and external aspects impacting the company’s performance.
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This framework gives a detailed description of the firm’s external and internal factors. The managers at Emaar Properties should consider these aspects whenever developing new business strategies.
|Strengths ||Weaknesses |
|Opportunities ||Threats |
Emaar Properties operates in different parts of the world. This strategy dictates the political factors affecting its business performance. Its presence in the United Arab Emirates supports its goals. The UAE is politically stable. The Middle East has been characterized by politically stable governments. This is also the same case for Europe and North America. Unfortunately, its operations in North Africa are met by different political obstacles (“Emaar Properties,” 2017). The political climate experienced in the UAE promotes business practices and investments. These attributes explain why the real estate sector is growing rapidly.
The economic performance of the Middle East is attracting many businesses and investors. The government of the UAE has been implementing powerful policies to support economic growth and sustainability. Emaar Properties capitalizes on such economic aspects in order to achieve the targeted goals (“Emaar Properties,” 2017). The current growth experienced in the global economy is expected to support the firm’s performance in the future. However, the declining interest rates in the UAE will affect the real estate sector.
Many people are currently in need of better or premier living standards. This is the case because such people are earning better salaries. Lifestyle changes have encouraged many companies in the industry to come up with innovative housing solutions (“Emaar Properties,” 2017). The social changes experienced in different parts of the world such as housing and shopping have been supporting Emaar Properties’ business model.
Technology is one of the driving forces behind Emaar Properties’ success. The firm embraces the use of modern technologies in order to meet the changing demands of the targeted customers. The use of LED lights in different buildings, sustainable technologies, and the provision of green solutions to housing problems are driven by this factor (Salihovic, 2014). Modern technologies influence every research and development (R&D) process in the industry (Hanieh, 2016). Emaar Properties must consider the technological changes experienced in the world today in order to emerge successfully.
This factor should never be ignored by companies that want to emerge successfully. Many nations including the United Arab Emirates (UAE) have implemented stringent laws to ensure every firm engages in sustainable business practices (“Emaar Properties,” 2017). The changing global climate is encouraging governments to conserve the natural environment. Emaar Properties has always been required to consider the environmental issues facing its clients. The firm conducts environmental impact assessments (EIAs) before initiating every massive product. New laws focusing on the needs of the natural environment have emerged in the recent past. Protection of aquatic animals and natural habitats are critical issues that might be addressed by the leaders at the firm.
Emaar Properties operates in different regions characterized by numerous laws and policies. For instance, there are policies focusing on workplace safety, environmental protection, and integrity. There are urban planning laws that are considered in order to ensure every project is sustainable. These laws dictate the business initiatives and development processes implemented by different companies such as Emaar Properties (Hanieh, 2016). The company should also meet specific requirements for the safety and sustainability of different buildings. These factors will definitely impact the firm’s performance in the future.
Impacts of External and Internal Environments
The internal environment should be taken seriously by companies that want to realize their business goals. At Emaar Properties, the internal environment is what dictates performance. To begin with, the leaders at the company have managed to promote a powerful organizational culture. This culture dictates the behaviors, goals, and strategies undertaken by different followers in an attempt to deliver projects in a timely manner. The workforce is usually guided and empowered using appropriate leadership models. The approach has promoted positive practices such as R&D, teamwork, decision-making, and problem-solving (Salihovic, 2014). The use of a vision, mission, and core values explain why the internal environment supports the firm’s performance. However, the emergence of misunderstandings at the company affects the competition of various projects. However, such conflicts are addressed in a timely manner in order to ensure the targeted goals are realized within the shortest time possible. The actions undertaken by the human resource (HR) department support the targeted business objectives.
The external environment, on the other hand, offers both obstacles and opportunities to Emaar Properties. The political and economic situations experienced in different countries such as the UAE support the firm’s business model. The changing social dynamics and lifestyles encourage the firm to come up with superior buildings that can meet the needs of the targeted clients. Globalization presents stringent laws that dictate the performance of Emaar Properties in each and every nation. In order to emerge successfully, the leaders at the company should be aware of such legal requirements (Hanieh, 2016). External forces such as changing technologies have the potential to transform the firm’s business strategy. A clear understanding of the external environment can guide the company to implement adequate strategies to address the changing needs of targeted customers across the world.
Emaar Properties. (2017). Web.
Hanieh, A. (2016). Capitalism and class in the Gulf Arab states. New York, NY: Palgrave Macmillan.
Salihovic, E. (2014). Major players in the Muslim business world. Boca Raton, FL: Universal Publishers.