As you understand, United Arab Emirates (UAE) is strategically located in the Middle East region. It geographical position is very important due to international accessibility through its well communication and transport network connection, including land, air and sea. Its position makes it to act as a center connecting continents and subcontinents for which it’s been added advantage in trade facilitation. Though the country is endowed with oil product, it has highly reduced its dependency on it as major contributor to the country’s economic growth (Gereffi, 2006).
The decrease of oil dependency as the chief contributor towards the economic growth is articulated to recent changes on country’s international relationship and on international investment and investors’ protection policies, which has made the country to record economic increase rate of six for the last two decades. Lucrative incentives are now available for investors venturing in productions which are rare at the international level. However, the government has much encourages entrepreneurial prospectors to increase job opportunities while serve the large market generated by the high population of the region (Pangestu, 2003).
The company has been an important provider of its product to the region since 1970s. Its venture in the Arabian countries in the early 70s was a great break through into the new area which offered it a great opportunity of market expansion. The firm begun were commercial work in the region by the importation of its products from the manufacturing plant located in Brazil. The business opportunity that opened in the country offered the company a chance to market various food stuffs in the country. Though it began by exporting its whole chicken meat product to the UEA, the number of products has now increased several folds. The increase of the products consumption has been enhanced by the advancement on technology, which has transformed the processing and preservation techniques (Bizguides.com, 2010).
The organization thus operates in the United Arab Emirates by selling its products to the local markets. The UEA form a core part in the distribution of the organization products, making them available not only to the local consumers, but it also make possible in the routing of the products to other Middle East countries. In most cases, it has depended on individual deals, which means that it has been less affiliated with organizations or groups of individuals to market its products (5M Enterprises Ltd, 2007).
The market expansion which noticed in the region has been through the use renowned advertising characters. However, the branding techniques of the products have played a major part in penetration of the market. The company has not adopted the most modern methods of advertising its products. It has relied heavily on the international Sadia marketing which is being developed in the television media, new paper and participation on international activities such as sponsoring of games and sports. The organization ensures that it exports products which satisfy the set standards that are stamped with Halal sign. This is achieved through information exchange between the United Arab Emirate management body and the Brazilian Sadia management on mainly on quality standards matters, sanitary and product consumer satisfactions (Bizguides.com, 2010).
Challenges to the company operation
Although the company products have increased demand in United Arab Emirates, the excellent recorded results are not attained without impediments. It has been revealed in study that the following are major barriers to expansion and growth of the organization in the country:
- Religious and cultural factors: Sadia as major food company concentrates in the production meat products. Most of the people that form the local population in the country are Muslims. Due to their religious and foods traditional practices, they have discriminated the consumption of imported food products in fear of compromising their religious and traditional practices particularly on pork products. This has led to frequent travel of inspectors from the country to production plant, which has contributed to delay in the production and supply processes.
- Control and regulatory policy- Chicken meat and other birds’ meat form the highest products supply for the UAE community. However, the company has frequently been affected due to policies that prohibit importation or exportation of chicken and bird meats from Brazil in the control and management of bird disease. The recent bird flu in Brazil has greatly affected the company operations.
- Government strategy- the UAE government has increased it investment on food industry particularly in the crop and fish production. The increase of fish products in the country is likely to bring about quota importation of the meat products (Gereffi, 2006).
Establishing production plant - As the government tries to cut down its expenditure on imported foods stuff and become self-reliant, it formulated policies which allow ease establishment of food companies in the country.
Market expansion – companies the open branch in the UAE country get access to wide market through the linking of UAE with the GCC region. In addition, the country has recorded a high yearly population increase. This increasing trend leads to prediction of better market in the country in the near future.
Foreigner population - the country has received large number of foreigner from other countries. It’s estimated that the foreigner proportion is eighty percent. The increasing number of foreigner in country is generating new consumers of our products.
Prior Arrangement For new Task
I’m glad that you have appointed to take over the country’s manager position in UAE. As you are aware that I have ten day before the official take over of this new position, I would like to thank you first for the appointment. Secondly, I want to brief you of my plans for the remaining days as follows:
- Handing over the office to the new incoming assistant manager
- Having farewell party with my fellow friends and company workers
- Packing of luggage and obtaining of traveling ticket
- Getting in touch with outgoing country manager in UAE
- Organizing for Official hand over of the office with the current Country Manger
Anticipated plan for the next 90 days
- Organize for a permanent inspector (s) to be based in Brazil Sadia Plant
- Increase sales in the country through partnering and establishing good relationship with logistic companies within the country
- Marketing of the products using the local media, together with participation in cultural and traditional activities
Expand the company into new regions in the country