Department Of S&A Company (Saqib)

1. Marketing Department
2. Finance Department
3. HR Department
4. Production Department

Marketing Department
The market department of S&A Analysis the current market situations and inform the production
department the expected sales.
Finance Department
Finance Department collect the sales revenue manage the expenses and allocate budget for raw
material.
Human Resource Department
The recruitment of S&A Company is done by HR department.
Production Department
Production department it takes targeted production level from marketing department.
Number of employees
The company number of employee is middle level. There employees of company is to 20 to 25 .
There are different department or product. (wikipedia, 2019)

Reason of going International (UAE )

1. To maximize the revenue of firm.
2. To recognize the world with the firm latest product.
3. Opportunity to explore the business in the new market.
4. While going global firm face diversification the benefit of it that the people who join the
firm belong to multi region and have multi and different intellectual capabilities which
they put to increase the efficiency of firm.
5. Another reason for going global is foreign investment which gives the opportunity to
business to extent.
6. Get the information a new place help your company more well.
7. Improving your company reputation .
8. Your business international you get access new potential employees with unique skills.
(linkedin, 2019)

Why we choose (UAE)

The host country is United Arab Emirates the reason to choose UAE that its economy is well
better then Pakistan. So it provides explore to S7A Company to capture the market share to
moreover it has boader with Oman , Saudia Arabia , Qatar, and Iran. The basic benefit while
going in the UAE is that S&A easily export product to saudia Arabia in non restrict environment
and the agreement has no hard and fast terms and condition . moreover many people visit that
country so that why over sail as well as revenue increase.
(wikipedia, 2019)

PEST Analysis
Economic Life Cycle
Year Unemployment Inflation GDP Interest
Rate Rate Rate
2014 2.06% 2.35% 403.14 15.54%
2015 1.84% 4.07% 358.14 18.69%
2016 1.64% 1.62% 357.05 20.22%
2017 2.46% 1.97% 382.58 19.75%
2018 2.58% 3.08% 424.64 18.67%
2019 2.67% 2.14% 427.64 19.20%
2020 2.54% 2.06% 449.13 18.96%
2021 2.89% 2.09% 469.5 18.65%
2022 2% 2.11% 490.9 18.36%
2023 1.90% 2.09% 513.77 18.07%
2024 1.95% 2.23% 538.37 17.78%
25.00%

20.00%

15.00%
Interest Rate
Unemployment Rate
10.00%
Inflation Rate

5.00%

0.00%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

GDP
600

500

400

300
GDP

200

100

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

(statista, 2019)
Economics Factors
Economic System
The economic system of UAE is democracy and mix economics.
Trade Restrains
Tariff
Custom Duty of 5% applied on imported goods in general. Some agricultural and
pharmaceuticals are exempt. Whereas luxury goods are charged 50% to 70% such as tobacco.
Non Tariff
The products that do not meet to their Islamic culture are prohibited.
Product certification, Labeling, and Packaging Special
Goods should be packed to protect over the environmental heat and humidity and should be
stored in 25 degree centigrade.
Documentary Requirement
 Relevant valid trade license copy
 Commercial invoice
 Certificate of origin
 Packing list

Trading blocs
(GAFTA) Greater Arab Free Trade Area
GCC Singapore Agreement Free Trade Agreement
GCC _EFTA Free Trade Agreement
Economic Integration
Above all of these trading blocs the UAE free trade area between these
countries. They can trade easily between countries,
(export gov, 2019)

(export gov, 2019)

Rana Aqib (G1f17mcom0054)

 Political Factor

Types of Political Risk Political Strategies

Government(macro  Kingdom  Make better relations
The business might be with Labor
political risk) expropriated  Make good repute in
 Kingdom  Judicial System business
 Judicial System The legal structure in the UAE
 Corruption runs in two systems: the
Federal Judiciary presided by
the Federal Supreme Court as
the highest judicial authority in
the UAE and the local judicial
departments at the local
government level
 Corruption
The UAE ratify the united
nations gathering against
corruption in February 2006.
Micro political risk Political risk Political strategies
 Tax  We put high price
 Industry regulation  Local laws are very because we have high
 Local laws adopted and people price
react to them positively
being a good citizen
 In UAE tax rate is 30%

(freedom house , 2019)

Technological factors
Elements Pakistan UAE Barriers Strategies
Technological Pakistan not have UAE have Yes Through training
infrastructure been so advanced advanced we should reduce
in technology technology this barrier
Employee Un employment UAE e have an Yes We should
expertise rate is high in also the average educating our
Pakistan so there technology employees
is a very difficult
to find a job in
Pakistan
Customer Customer UAE have Yes Educating is the
awareness awareness is advertisement best way to
different in and social ads reduce this
Pakistan it is barriers
difficult to
introduced
something
because of low
literacy rate

(wikipedia, 2019) (linkedin, 2019)

Cultural Business Etiquettes (Saqib)

Clothing
The reserve of your clothing is extremely important in the Middle East – for women and men. Be
aware not to wear helpful clothes (including open-toed shoes) and to cover your shoulder arms
and legs

Greetings
Accept and meet the most higher ranking person in the room first liability so is a sign of
deference in the Muslim culture. It’s suitable for non-Muslims to greet their Arab hosts with
Assalamo Alaikum which means peace be upon you” and come back the welcome with Wa
Alaikum Assalam meaning peace be winning you too.

Extra
List Have the other surface of your commerce card translated into Arabic – this will help build a
great first thought.
Conversation
First meetings are all about connection building and increasing trust. It significant to get to
identify the personality with whom you are liability business. In discussion it is always good to
ask regarding the health and well being of a complement family being watchful not to directly
ask a question.
Dining
Attentive Muslims do not sip alcohol. In the UAE Alcohol is served in the majority hotels but
may not be existing in narrow restaurants. If Alcohol is not accessible it is improved not to ask
for it.
Gifts
It is suitable though not predictable to give a little voucher or gift to your host upon opening.
Fitting gifts take in an pleasurable book or a company reminder. Keep in brain amazing personal
can be a very important feel.
Meetings & Negotiations
Center Easterners frequently have a comfortable position when it come to business meeting and
may get there late. Its important not to chase suit as reliability is predictable of Westerners.
munchies such as brunette and pastries are normally served at meetings keep in mind it is correct
etiquette to believe what you are obtainable and to praise your host on the food and his warmth.

Rana Aqib (G1f17mcom0054)

Dimensions Home Host Barriers Strategies

country country(UAE)
(PAK)
Power distance 55% 90% Yes Divide equal
rights
Individualism 14% 25% Yes Hire locals
Collectivism 14% 25% Yes Hire locals
Masculinity 50% 50% Yes Joint venture
with local firms
Uncertainty 70% 80% Yes
avoidance
Long term 50% Trained them for
orientation long term
objective

Elements of culture
Elements Home Host Barriers Strategies
country(PAK) country(UAE)
Religion Islam Islam No -
Language Urdu Arabic Yes Learn language
Social structure Family oriented Individualism Yes By doing and
and collectivism acting positively
is 25% that are accepted
by others also.
Education 70%(male 72% 93% Yes Improving the
and female 52%) education
Political parliamentarian Presidential and a Yes -
ideology constitutional
Economy Mixed economy Mixed economy No No
ideology system

Organizational culture
Types Pakistan UAE Barriers Strategies

Culture The culture of UAE is entitled to Yes Provide cultural

Pakistan is ethnic the business, education to
in diversity and family and remove these
more dedicated to hospitality barriers
family culture. enriched
Perceptual Joint family is No joint families Misconception and By doing and
enriched in are adopted. mismatch acting positively
Pakistan. that are accepted
by others also.
Language Urdu Arabic Not understandable Teachings and
practices

In the four type of cultures Eiffel tower, Guided missile, Incubator, and
Family culture
(UAE have guided missile culture)

Communication barriers
Culture The culture of UAE is entitled to Yes Provide cultural
Pakistan is racial in the business, education to
diversity and more family and remove these
dedicated to family hospitality barriers
culture. enriched
Perceptual Joint family is No joint families Misconception and By doing and
enriched in are adopted. mismatch acting positively
Pakistan. that are accepted
by others also.
Language Urdu Arabic Not understandable Teachings and
practices

Operational strategies
Pressure of local responsiveness (Saqib)
(Gulf News, 2019)
(Khaleej Times , 2019)
Pressure of Cost Reduction (PCR) (Saqib)
Pressure of cost lessening in toys business in UAE is small because the market strain new toys
having progression and upgrade designs and uniqueness. Gaming toys are demanded to have
extensively upgradation day by day.

Operational strategy
The tactic we are going to use is ‘Localization Strategy’

The motive to choose this because we have Low PCR and High PLR.

Staffing Policy (Saqib)

Because we have localization tactic as our operational strategy so the staffing policy to use is
Polycentric Approach.

Reason
The reason to desire this move toward is that we have to appoint employees for distributing our
product in UAE.

Marketing (Aqib)
These are the Marketing mix of our business.

Product
We are mainly as long as these products to customers

 Toys (simple and electronic based)

 Gaming Toys (Playstation etc.)

Price
Our price is not to a immense scope higher than the competitors. We are given that such goods
that our competitors have but we will indict low prices than the energetic competitors of toys
business

Place
We are selling our creation in the major markets as well as super markets and shopping malls.
UAE is a full of activity country about the guests so their tendency is high towards the shopping
and by this mean our product will be sale at high scale.

Promotion
Our product will be promote through

1. Facebook, Instagram ads

2. Video Tutorials on youtube this will describe the characteristics of
products

Concerns of Host Country (Aqib)

NGO
regarding this business there is no NGO in UAE except we have to make certain that the toys
would not create troubles to their user. They should not be terrible and frightening to occupy
them in any difficulty.

Government
The business of toys is very upward in UAE since of serious demand of visitors over there. This
business is successful day by day. And the government is receiving favors in conditions of taxes
and other constraints. The toys and gaming products should not have any spy or hacking terms to
their safety procedures.

Society
Society is confidential to the increasing business and getting their latest challenging products.
Bibliography
export gov. (2019, june 11). Retrieved june 11, 2019, from export gov: www.export.gov

export gov. (2019, june 24). Retrieved june 22, 2019, from export gov :
https://www.export.gov/article?id=United-Arab-Emirates-trade-agreements

freedom house . (2019, june 11). Retrieved june 11, 2019, from freedom house: www.freedomhoue.com

Gulf News. (2019, July 10). Retrieved July 10, 2019, from Gulf News:
https://gulfnews.com/uae/education/traditional-toys-still-hold-appeal-1.60789879

Khaleej Times . (2019, July 10). Retrieved July 10, 2019, from Khaleej Times :
https://www.khaleejtimes.com/nation/general/uaes-toy-and-games-market-worth-1-billion

linkedin. (2019, june 11). Retrieved june 11, 2019, from linkedin: www.linkedin.com

statista. (2019, june 24). Retrieved june 22, 2019, from statista:
https://www.statista.com/statistics/297818/uae-national-debt-in-relation-to-gdp/

trading economics. (2019, june 11). Retrieved june 11, 2019, from trading economics:
www.tradingeconomics.com

wikipedia. (2019, june 11). Retrieved june 11, 2019, from wikipedia: en.m.wikipedia.org