The Best Practices of Emaar in the UAE
The best practices in business are based on profit maximization, cost minimization, and operational management among CEO, managers, and all the employees of the company. The study will carry out an elaborate business analyses review to establish the actual reasons and practices in order to find about enterprise’s success. Despite many studies, there seems to be a perception of the management as a problem that causes losses and what they think could be a remedy to the company’s operation. Some of the factors that need to be investigated are the administrative support provided to the employees (including recruitment process) as they deal with the management and sometimes experience too much pressure. It is also of a significant importance to find out the company’s advantages and disadvantages and management key decisions. This study will use observation and interview methods to establish the company’s management perception, risks, and strategies on the causes and possible solution to improve the financial results of the company. Moreover, the study will also seek to establish the impact of the employees’ workload on the enterprise on the stress due to management. The study will employ a more empirical technique and use various data sources to come up with satisfying conclusions on the company’s best practices and answer the research questions effectively. This research gives the general outline of the study and the research methodologies and techniques that are going to be used by the researcher to answer the research questions.
Keywords: Best practices, business analyses, profit maximization, cost minimization
The Best Practices of Emaar in the UAE
It is hard to overrate the importance of properly organized business processes as every entrepreneur aims to make his enterprise sustainable and lucrative. This paper is aimed at discussing the Emaar holding’s most popular and lucrative company – Al Ain Water Company. Al Ain’s Water Company’s success is one of the most discussable topics in the world of FMCG in Abu Dhabi and in the UAE. Usually, there are two groups of people – the first one agrees with the majority of company’ management decisions and the second one does not support them. When it comes to any leader of the industry, there are both ‘good’ and ‘bad’ decisions; Al Ain is no exception. Any business process results or does not result in sustainability. However, every business owner wishes to take maximum out of his business via raised and decent sustainability. As of principle relevance to the study, Emaar holding is analyzed as an up-to-date group of companies that operates more than 50 businesses not only in the UAE but also all over the world. Al Ain Bottled Water Company was taken into consideration to discuss company’s best practices and show how a small enterprise can become a leader in a no time. The main purpose of this paper is to review Al Ain Water Company and evaluate its advantages, disadvantages, financial results, and profit. Moreover, the study is aimed at describing key activities of the company during its operation and show the importance of maximization and minimization in the business. In addition, the purpose of this essay is to criticize (agree or disagree) the company’s sustainability.
Each business is built on profit maximization and cost minimization. This principle can be easily compared with weight gain. If an athlete does not take enough calories, he losses weight. Thus, if a company does not meet profit maximization via cost minimization, there is no sense in business. The primary objective of any business is to make profit. It includes cost minimization, as a structured, optimized, and lean business is more competitive. No doubts both profit maximization and cost minimization depends on management practices.
The theoretical framework of this paper is aimed at demonstrating how organized and structured business processes can lead to company’s profit and why Al Ain Water Company results being one of the most famous water companies in the world. The enterprise has demonstrated that sound management practices are crucial to maximizing profit and minimizing costs that lead to the success of an organization (Eaton, 2013 ) The company has made significant investments in innovative products to enhance its appeal among customers on a competitive market. One can retort that investments in innovative products are risky, but due to careful calculations and planning, the management of Al Ain Water Company has proved that such investments could significantly reduce cost of many products (Michelli, 2007). Thus, Al Ain has demonstrated efficacy in achieving business goals, costs minimization through management principles in such business areas as planning, leadership, organization, staffing, and controlling systems or processes.
As for profit maximization, nowadays, business has no other choice but become customer-oriented (Aksoy, Keiningham, & Bejou, 2007, p. 54). The management of Al Ain Water Company values customer satisfaction greatly. Loyalty programs, bonuses, friendly communication in social networks are just a few practices that indirectly maximize company’s total revenue and profit. Another profit maximization fundament of Al Ain Water Company is sticking to monopoly. According to Michelli (2007), Al Ain is the most popular water brand in the UAE. Thus, the monopolist maximizes profit by choosing quantity and innovative technologies implying improved quality. It helps to meet the demands of even the most exacting customers, thus significantly maximizing the company’s profit.
The primary source of the data are theoretical books, journals about business, management and marketing and the last but not the least, Al Ain Water Company’s Facebook page. In addition, additional sources as articles and side-books were used to find the needed data and observation. Furthermore, this paper is based on both observation and interview. First, the needed data about the company was collected on the company web site and its Facebook page. Second, two interviews with company’s employees were conducted to understand the enterprise’s business processes, goals, and the role of maximization and minimization in the business. During these interviews, the researcher managed to gather all needed information to understand and realize why Al Ain is the leader on the market and which operational perspective it can lean on in the future. Third, an on-site observation provided a possibility to understand some technological processes that allow the management of Al Ain to produce and market high-quality water at a price that does not hurt the customers.
Results and Findings
The results and findings of this research aim to demonstrate the company’s key management decisions, on-site technologies, company’s sustainability, and summarize the research in order to present enterprise’s advantages and disadvantages. The enterprise is called Al Ain Water Company and this brand is the UAE’s leading bottled water company. From the very beginning and for the time being, the enterprise is a part of the Emaar Group. The latter boasts of many other bottled water brands, for example, Alpin. In addition, the Emaar Group specializes in bread production (Grand Mills), fruit juice production (Capri-Sun), distribution of 5-gallon water across the country (Ice Crystal). Water extraction and distribution are the main activities of the Emaar Group; that is why many investors and customers trust this experienced enterprise (“Al Ain bottled water”, n.d.)
According to Bloomberg, the company’s full name is Al Ain Capital LLC, and this enterprise is a private company (“Company overview”, 2016). It makes many primary and secondary investments and often invests in trading. Al Ain aims to make investments in services, real estate, telecommunications, and many other businesses. As for geography, the water giant has interests in North America, Europe, and North Africa (“Company overview”, 2016).
As for the location of Al Ain Water Company, its head office is situated in Abu Dhabi, the United Arab Emirates. The company was founded in 2003; currently, it firmly keeps a leading position on the market. As for brand’s branches, the company also produces nature’s freshest fruit packed daily water called Al Ain Fresh.
I have chosen Al Ain Water Company as it is lucrative business and an up-to-date business. I liked the brand’s attitude to business, marketing, and customers. Meeting international standards, caring about quality assurance, taking into account local authorities, superior quality products, the latest analytical equipment are just a few advantages of Al Ain and the reasons why I have chosen this enterprise.
According to the company’s mission, it aims to provide each person in the United Arab Emirates with clear, affordable, and superior quality bottled water. Uncompromising quality and heritage brought through years are probably two main pillars that allow Al Ain Water Company to develop successfully day by day. When it comes to vision statements, the company’s management claims they “…provide a wide range of wholesome and nutritious consumer-relevant products to encourage a healthy lifestyle, Al Ain Water aims to drive a growing understanding of an ideal balance for one’s body among consumers…” (“Our manifesto”, n.d.)
When it comes to the results and findings in sustainability and marketing initiatives, the question is three-fold. As for the past sustainability measured practiced by the brand, one of them is changing water package according to customers’ demands. It is no secret that the development of a new packaging as well as any other drastically up-to-date innovations takes time and investments. Nevertheless, in 2009, Al Ain Water Company managed to complete a marketing poll that claimed many clients and potential customers of the company were in a lack of big bottles – 5L and more. In addition, the market has been fully ready for water delivery (small enterprises, offices, private apartments, big corporations) as Abu Dhabi is a well-developed, modern city where nowadays time is more valuable than money (“Al Ain bottled water”, n.d.).
Unarguably, any marketing is a tool to meet planned expectations and sales. The present sustainability measure practiced by Al Ain Water Company is social media marketing. The brand manages to play a major role in marketing, delivering funny, clever, and up-to-date marketing messages. For example, if one looks at Al Ain Facebook page, they are provided with readable and engaging content about healthy lifestyle and happy life (Al Ain, n.d.). Usually, Al Ain’s customers do not understand that those targeted messages are aimed at selling or presenting some product. These social media marketing messages look like the brand does everything possible to take care of their customer’s lifestyle.
As for the results and findings in strategy and principles, a business is not a business without a strategy for the future, and when it comes to Al Ain’s sustainability plans, the company does its best to tie itself up with customers, surpass their expectations by means of questions and constant communication. The latter is one of the necessities of modern people and that is why, this brand wins (Kotler & Kelller, 2011). The strategy is quite simple – if an enterprise wants to be a leader, it has to communicate, ask, concern, in other words, to be attentive to its customers and potential clients. The future initiatives planned are overviews, cooperation with bloggers, communication with clients and potential customers, charity, and others\ (Kotler & Kelller, 2011).
As for the results on impacts, the company’s contribution affects the three main pillars of sustainability – social, economic, and environmental one. There is no need to emphasize the first pillar since the brand is very client-oriented, as it has already been mentioned. As for the economical issues, the brand’s management never stops investing into the most relevant actives. In addition, when it comes to reasonable pricing and water selling, Al Ain cares about it because the last time the brand raised its prices was 2013 (Brebbia & Beriatos, 2014).
Finally, the analysis of environmental factors gives such a result. It is a well-known fact there is a problem of plastic waste all over the world. In addition, there is also a serious lack of fresh water in the world. As it is impossible to cope with the latter problem, Al Ain Water Company invests into waste recycling, successfully helping with the solution for the plastic issues (Mohamed, 2014).
To present results in contrast, Al Ain water brand is compared with other local companies. For instance, neither Super Gulf, Aquafina, nor other local brands pay such attention to marketing and communication with customers. Al Ain has chosen a very complex but correct way to keep up with their clients and raise the business via spreading words, positive feedbacks, and meeting customers’ demand. When it comes to comparing it with global companies, for instance, Nestle, Al Ain lacks a long-term strategy and it has to pay closer attention to merchandising (Mohamed, 2014).
Regarding recruiting process, one should note that Al Ain Water Company pays great attention to its team, as an organized and good team is a half of business success. Employing a large number of new workers requires strategic recruiting planning and operational efforts. Coca-Cola and other globally famous water and non-water brands have their own strategic recruiting planning to hire desired professionals. This planning helps to organize the recruiting process, saving the company’s money and the management’s time. For example, Google is famous for offering its 30 questions. Once an employee has successfully passed them, he receives some new extraordinary questions. They aim to check the candidate’s experience and erudition. Al Ain should pay attention to step-by-step organization of recruiting process. For example, the following algorithm of recruiting can be applied (Mathis, Jackson, Valentine, & Meglich, 2016).
|Filling out surveys. The company’s manager checks if all candidates have enough experience and required documents to be employed.|
|Phone or Skype interview with candidates. HR manager has to talk to every potential employee to find out about the required skills and ask some relevant questions|
|Final interview. A potential candidate comes to an interview with an HR-manager and the head of the company.|
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Therefore, a thorough strategic recruiting planning is required to cope with the large number of resumes and to avoid missing valuable and professional employees. As for operational efforts, strategic recruiting planning has to be split into small business process to make the strategy clear not for only HR managers and company’s CEO but also for each employee. It is critically important to mention that even though strategic recruiting planning helps to save money and time, this practice can be applied only to corporations. For example, strategic recruiting planning will take much budget from smaller firms. It means that sometimes, there is no sense to organize and work on strategic recruiting planning.
Nowadays, the Internet is present almost in any place in the world. The importance of the Internet in recruiting efforts cannot be overrated. It helps to gather together millions of people and it surely helps to find required professionals for any company. Utilizing the Internet helps employees find any jobs in any country or region of the world. For example, a marketing specialist from Germany can find a career in France or the United States and move for his professional ambitions and goals. Another example is India where there are many professional Java programmers but unfortunately, there is not much work for them. It means that these professionals can use the Internet to find their dream-job anywhere. If an employer is interested, he will take care of all the organizational issues and paperwork (Mathis et al., 2016)
In addition, utilizing the Internet changes recruiting efforts as people from all over the world can work on distance. Unfortunately, only designers, marketing specialists, programmers, copywriters and some other professionals are able to work on distance. Nevertheless, it significantly saves company’s budget for office and maintenance.
Summary, Conclusion, and Recommendation
To summarize, Al Ain Water Company is an up-to-date enterprise and the leader on the bottled water market in the UAE. This water company has managed to become a leader in just three years and currently, the start-up grows to expand to new markets all over the globe. The company pays great attention to its clients via surveys and polls. Thus, one can claim this business is customer-oriented. Al Ain cares about environmental problems and does its best to produce and market much water in glass bottles and utilize plastic bottles in a proper way.
As for the recommendations, one should state that Al Ain has to pay more attention to expand its assortment of products. Currently, the company aims to market and sell only mineral water with or without soda. Al Ain, as well as the UAE in general, has all chances to get into expansion and provide new products on the market. In addition, the company has to pay more attention to popular social networks as Instagram to promote its products in an up-to-date, relevant and the last but not the least, free way.
In conclusion, Al Ain has successfully managed to become the leaders in the water industry and it can be claimed the best business practice as a part of the Emaar group in the UAE. However, the company’s management still has to pay attention to communication with customers, operational processes, and strategic planning to improve and expand its presence to become even more lucrative and leave no chances to other competitors on the market.
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