Analysis of the Influence of External and Internal Environment on Operations

REPORT ON EMAARName of the StudentName of the UniversityTable of Contents TOC o "1-3" h z u Introduction PAGEREF _Toc3463854 h 2SWOT Analysis PAGEREF _Toc3463855 h 3PESTEL Analysis PAGEREF _Toc3463856 h 4Political PAGEREF _Toc3463857 h 4Economic PAGEREF _Toc3463858 h 4Social PAGEREF _Toc3463859 h 4Technological PAGEREF _Toc3463860 h 5Legal PAGEREF _Toc3463861 h 5Environmental PAGEREF _Toc3463862 h 5Analyzing the Impact of external and internal environment on the operations of EMAAR PAGEREF _Toc3463863 h 5References PAGEREF _Toc3463864 h 5Introduction EMAAR is a real " estate development organization in the United Arab Emirates (UAE).

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It has been listed on the Dubai Financial Market as a public joint " stock organization.

The chairperson, Mohammad Alabbar in the year 1997, incorporated and founded EMAAR. The organization provides management and property development services in the international market. EMAAR has a presence in about thirty " six markets across Europe, Middle East, North Africa, North America, Europe and Pan " Asia collectively. It is one of the major real estate developers in the United Arab Emirates (UAE). There is a presence various interests of EMAAR in real estate that includes both residential and commercial property development. It is responsible for the development of Burj Khalifa, which is the tallest building in the whole world. EMAAR Properties had developed the largest shopping mall in the world, the Dubai Mall. The Dubai Fountain is another large development project that has been commissioned by the EMAAR Properties. The EMAAR Properties has a total valuation of about 9.7 billion US dollars up to the month of June in the year 2018. In the year 2004, the EMAAR International LLC was established.

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This organization was developed for expanding EMAAR into the foreign markets. There are about six thousand and six hundred employees in the EMAAR Properties. EMAAR is a very admired and valuable real estate development organization in the world that has proven its competencies. EMAAR helps in shaping up new lifestyles that have a focused design par excellence with proper quality and delivery on time. SWOT Analysis The EMAAR Properties have some strengths, weaknesses, opportunities and threats that have been discussed in this report (Iconopisceva & Proskurin, 2018).Strengths WeaknessesEMAAR is the biggest developer in the United Arab Emirates (UAE).It has a strong presence globally with operations that spread across thirty " six countries (Iconopisceva & Proskurin, 2018).Due to a focused diversification and expansion strategy, it has a well-diversified portfolio.It has the advantage of the location, as Dubai is one of the best places for investment in real estate (Iconopisceva & Proskurin, 2018). EMAAR is vulnerable to the risks of the diverse local economies.There are new limits on the loan reduces the operational flexibility and the demand.Opportunities ThreatsIn the Dubai property, there are strong signs of recovery.It has the scope of expanding in the new markets.The investment would be made more attractive in Dubai under the Investor Law (Iconopisceva & Proskurin, 2018). It is threatened for being another property bubble.It is threatened because of the global economic crisis.It has fluctuation rate of interests that poses threat (Thompson, 2016). PESTEL Analysis PoliticalEMAAR is affected by the taxation policies, governance system, government resource allocation, regulatory practices and the finance and accounting. The local government plays an important role in the business regulations and the policy setting in the sector. These changes should be monitored by EMAAR closely (Bodolica et al., 2018). The effect of taxation policies is very high on the EMAAR Company.EconomicThe economic factors that affect EMAAR are the inflation rate, customer disposable profits, taxation rate, economic presentation and interest rate (Abou Hana, 2017).The inflation rate of EMAAR is very high so that affects the pricing system and the economic stability of the company. SocialThe social factors that affect EMAAR are the culture, societal roles, leisure interests, health and safety attitudes, demographics and certain products and services (Bodolica et al., 2018). The diversity in the culture of the employees in the organization affects the company highly as it increases the conflicts between the management and the employees. TechnologicalThe technological issues that affect EMAAR are the improvement in customer services, admission to greater information, access of the people in technology and rate of technology driven change (Iconopisceva & Proskurin, 2018). The technology of the company is not updated which highly affects the company due to degradation of technical approaches. Legal The legal factors that are affecting EMAAR are the intolerance laws, system of honesty, data protection laws and intellectual property rights defense (Abou Hana, 2017). The legal system of the organization is very strong which affects the protection of the data. EnvironmentalThe environmental factors that are affecting EMAAR are laws regulating pollution, climate changes, assurance policies, increased focus on sustainability and secure waste removal (Bodolica et al., 2018). The organization does not pollute the environment and tries to protect it. Analyzing the Impact of external and internal environment on the operations of EMAAR The internal and external factors of the operations of EMAAR are analyzed by performing a SWOT Analysis on the organization. The internal factors such as the strengths and weaknesses of the company can be identified using this process (AlEid, 2015). The external factors are dealt with by the opportunities and threats of the organization that are identified from the analysis. SWOT helps in understanding the organization in a better way. It does not require any cost to conduct a SWOT Analysis (Iconopisceva & Proskurin, 2018). The external environment of the operations of EMAAR is analyzed by performing a PESTEL Analysis. The political situation of a region influences the economic setting of an organization. The economic environment affects the performance of the business (Abou Hana, 2017). References Abou Hana, M. (2017). Innovation in the UAE: From First Foundations to Beyond Oil'. Global Policy, 8(3), 414-417. AlEid, A. B. M. (2015). A Financial Statement Analysis on Three Major Construction Companies in the UAE (Arabtec Holding PJSC, Drake & Scull PJSC and Emaar Properties PJSC) (Doctoral dissertation, The British University in Dubai (BUiD)). Bodolica, V., Spraggon, M., & Shahid, A. (2018). Strategic adaptation to environmental jolts: an analysis of corporate resilience in the property development sector in Dubai. Middle East Journal of Management, 5(1), 1-20. Iconopisceva, O. G., & Proskurin, G. A. (2018). Regional approaches in high-rise construction. In E3S Web of Conferences (Vol. 33, p. 01023). EDP Sciences. Thompson, P. (2016). Dubai: An exemplar of state capitalism. Turkish Policy Quarterly, 15(2), 159-169.

Updated: Jun 05, 2020
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Analysis of the Influence of External and Internal Environment on Operations. (2019, Aug 20). Retrieved from https://studymoose.com/ain20190313022-essay

Analysis of the Influence of External and Internal Environment on Operations essay
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