Etisalat is an Emirates Telecommunication Group Company with a headquarter situated in Abu Dhabi. It is a multinational corporation operating in Asia, Africa, and the Middle East. The business is involved in the distribution of a wide range of mobile services over fixed-line networks to individuals as well as other firms. Over the years, Etisalat has established and developed its infrastructure around the world, taking leading positions in profit and sales figures. The corporation is renowned for its innovative approaches and trust among domestic and global operators. However, there are structural issues, which imperil Etisalat’s further growth and prosperity. Thus, a specific set of strategies is outlined in the report to maintain the company’s future activities.
Etisalat’s vision is to provide high-quality communication services to all consumers. Customers should not be constrained by space or time, giving an opportunity to contact their family, friends, and colleagues. A mission statement is an important strategic tool used by managers to express a company’s uniqueness and distinctiveness from its competitors (Alegre et. al., 2017). Etisalat conveys the mission by emphasizing an unlimited ability to reach anyone across the globe. The corporation is pursuing it by constantly developing and improving services, offering robust network connectivity. Moreover, the company tries to achieve it through innovative methods and the latest consumer trends and preferences.
Etisalat imposes values, which have to be honored and followed by all members of the corporation. First, workers need to be open and available to all customers and suppliers by actively socializing with them. Second, managers have to pay attention to the strategies and their implementation. Lastly, challenges should be met with commitment and positive energy, while opportunities need to be identified and utilized to a maximum point. Therefore, Etisalat’s vision and mission enable it to sustain the leadership position in the industry.
The mobile operator industry consists of various firms, which offer similar products and services. Etisalat faces fierce competition in either international or regional trading, forcing it to continuously innovate and upgrade goods (Toma and Narua, 2017). The entrance of new participants only enhances the necessity to grow, expand, and restructure business operations. The major rivals are Du, Vodafone, Three Mobile, Telenor, and AT&T.
The latter is a significant competitor, which provides high-grade wireless services via the fourth-generation of the broadband network. They are a threat to Etisalat since their tactical decisions on further improvements or product innovations will cost the company profits and revenues. It may lose a considerable market share, including the customer base and the broadness of geographical coverage. To be more precise, consumers can switch to these companies if they offer superior services or apply some price-lowering strategy (Khan, 2019). At the same time, Etisalat has difficulty spreading activities to other countries or continents as competitors’ strong brand image prevents from the goal. Hence, the corporation deals with cut-throat competition, which undermines its status in the business sector.
One of the components of success in the competitive environment is an effective marketing strategy. It is a method of communication with customers to inform them about current services, novelties, or changes in business operations. The company uses rebranding so as to increase revenues by selling products under different names. The marketing branch of the company comprises independent departments where tactics related to commerce are created and applied. Market targeting, research, advertising, and design are examples of their methods to attract consumers. Meeting and gathering akin to sports events, concerts, and parades are the efficacious channels to promote or introduce new products. Thereupon, Etisalat advertises its services by developing and utilizing relaunching techniques to gain more market power.
The company employs the research and development department (R&D) where decisions on market penetration are made. R&D covers not only the regional but also the global arena, contributing to further understanding of consumer needs and preferences. The branch takes into account the level of rivalry and economic conditions in different countries. It studies the prevailing situation to inform about upcoming threats of new entrants into the market or possibilities of access to emerging economies. Gathered information assists in building strategies to increase the corporation’s status in the customers’ eyes. According to Jahanmira and Cavadas (2018, p. 337), product improvement attempts to develop novelties that “diffuse at a higher pace” to boost profitability and productivity levels. Thereby, the company’s modernization occurs under the R&D’s investigation and guidance.
The external environment has an impact on the business performance, including various possibilities for growth and problems preventing from it. The social component is one of the beneficial aspects, which facilitated Etisalat’s success. Investment in the technology sector was a favorable movement since the United Arab Emirates has been successfully attracting foreign investments, “following appropriate economic policies” (Hamdani, Lazarova, and Maria, 2017, p. 532).
Indeed, as it is the core of the organization, the company focuses on the advancement of high-tech appliances. For example, the launch of fiber cables to the home networks enabled the better-quality Internet connection services offered to web users. Moreover, Etisalat recognized the issue of banking transactions, managed outside of the corporate walls, and responded to it. Now, customers are able to conduct them with a press of a button, leading to all necessary banking payments. Thereby, the social and technological environments have a positive influence on the company’s efficiency and productivity.
One of the methods to connect to the community of customers and suppliers is active social welfare, allowing Etisalat to demonstrate the mindful side of the corporation. For instance, it offers a number of academic scholarships to support young students financially. What is more, the company is engaged in ecological conservation programs where Etisalat declared its support for the policies reducing carbon exploitation. To illustrate, the organization utilizes recycled material in order to produce credit cards. On top of that, the company fosters its customers to request information in electronic forms without wasteful paper usage. Therefore, education and environment play a crucial role in addressing Etisalat’s areas of concern.
Organizational Structural Designs
The creation of appropriate organizational structural designs requires a thorough examination of existing and possible challenges the corporation faces today and will face tomorrow. Understanding defective aspects will help to comprehend, which elements need to be fixed. Etisalat encounters multiple issues regarding client care, management of international branches, shortage of investment in technologies, and marketing department strategies’ failure to operate globally. Hence, taking into consideration these problems, various tactics can be created by treating them with an innovative approach and considerate evaluation of the company’s potential.
Customer service plays a significant part by demonstrating a company’s dedication to satisfy customers’ desires. However, this aspect is one of the most problematic features consumers deal with after the purchase of Etisalat products. This can be explained by the company’s increasing monopolistic power, which the organization has been controlling for many years. As a result, managers started to neglect the quality of client support, leading to countless challenges relating to the brand image the corporation confronts. On the other hand, the fact that the company operates different branches under one label complicates the management capabilities.
For example, Etisalat runs the consultancy, banking, and academic services without a prioritized area of improvement and concentration. According to Rita, Oliveira and Farisa (2019, p. 1), a “competitive e-environment” requires businesses to aim at the quality of services provided. Thus, the continuous failure to respond to customers’ complaints and requests provoked a detrimental reputation and substitution with other more efficient mobile operators. Hence, inadequate client care poses a substantial threat to Etisalat.
A global customer scale can become an issue for a company if it does not treat each location and department with proper managerial strategies and tactics. Such a situation applies to Etisalat since the corporation performs in different parts of the world, conducting identical ideas and activities. Thus, the attitude causes other difficulties regarding customer services and work culture. The company did not successfully integrate businesses with distinct organizational and cultural values. There is a special connection between a customer and front line employees, which inevitably affects the possibility of repurchase of products (Mathies, Lee and Wong, 2018). Furthermore, there is a lack of investment in new technologies, directly imperiling the company’s position in the global arena where Etisalat has to compete with domestic firms. As new markets and customers emerge, companies tend to devise innovations, which profoundly change industries’ views and perspectives (Kocak, Carsrud and Oflazoglu, 2017). At the same time, other organizations just go with the flow created by enthusiasts. Thereupon, Etisalat does not belong to either of these cases, pursuing the same route of outdated services and irresponsible staff members.
The marketing department is another root of problems in Etisalat. Despite high sales figures, products are introduced without a clear purpose and positioning. Relaunching the same goods shows R&D’s work in the market research and customer preferences but does not display marketing managers’ ability to reintroduce them effectively. Considerable revenues can be clarified by consumers’ impasse to find a reliable alternative and loyalty built in preceding years. The issue stands on the ground of incompetence to forecast demand for products, trends, and changes appropriately so that the profit is maximized. Consumer-generated information on current tastes and needs is an excellent source of prediction, which companies derive from online platforms (Schaer, Kourentzes and Fildes, 2019). Nevertheless, Etisalat seems to disregard the method as the number of complaints and the amount of useful feedback relating to the corporation increases with its deficient client services. This issue leads to an extensive quantity of inventory, raising the rental costs. Therefore, unsatisfactory marketing skills and neglect of online data available creates a challenge for Etisalat, putting at risk the company’s profitability and corporate identity.
An organizational structure (OS) affects a company’s performance and revenue levels. It consists of “policies, procedures and rules,” which must be followed and applied accordingly (Ahmetoglu et. al., 2019, p. 129). OS addresses such elements as workers’ responsibilities, their roles, job classifications, who makes decisions, and hierarchical structure within an organization. The absence or inadequate practice of OS can become a burden for a company as with Etisalat. The corporation exercises a centralized framework where linear hierarchies of superiors come down to their subordinates. According to Kaufmann, Borry and DeHart-Davis (2019, p. 236), in a centralized organization, workers “need to defer decision making upward in the organization,” which causes delays in operations. On the other hand, a decentralized system provides accountability and independence of adopting one strategy or another. For example, Etisalat might apply it by eliminating various corporate chains so that employees will be able to respond to challenges immediately. Thus, ideas on the development of customer services can be implemented in a flexible manner. Additionally, departments may comprise of small teams, which will collectively make decisions. Thereby, Etisalat needs to consider the decentralized structure to solve its problems.
The construction of an organizational design is a process requiring deep analysis and evaluation of a company’s strengths and weaknesses. The diagnosis must be conducted so that a new set of policies can be created and practiced, contributing to a firm’s success (Aubry and Lavoie-Tremblay, 2018). As discussed above, client care, investment in technologies, and marketing strategies are the dysfunctional elements of Etisalat’s workflow. The organization can be designed using Jay Galbraith’s Star Model in order to take a holistic look at the company’s affairs (Shafiee, Kristensen and Shafiee, 2019).
The structure must be converted into a decentralized system where power is distributed to every employee. The process of budget allocation needs to include expenses on product advancement and novelties creation. A reward system can be introduced so as to motivate staff to pursue corporate goals. For instance, bonus payments for a client’s return may be offered or stock options can be suggested so as to increase their interest in the organization’s performance. Lastly, Etisalat needs to consider meticulous recruitment procedures as well as educational courses for existing workers. Thereby, the company has to constantly update its dynamic strategies.
Strategies for Sustainable Development
Sustainable development issues have recently become increasingly important to the business community. The weight of public opinion, legislation imposing certain environmental restrictions, the rising cost of resources, competitors who have already started to operate in accordance with these principles necessitate the progression of specific strategies. The crux of the problem is that any investment and financial decisions must take into account their social and environmental impact on the corporation and society as a whole. In this approach, the concept of the long-term durability of business becomes a powerful factor for strategic advancement, the strengthening of corporate reputation and competitiveness, and the growth of market capitalization of the company. Its social responsibility and environmental stewardship are now becoming one of the most essential criteria for assessing the reputational risks. An organization, which supports transparency in this regard, is clearly gaining greater confidence among stakeholders and potential partners. Thus, management decisions and their implications today must be considered from three perspectives: economic, social, and environmental.
The formation of sustainable strategies requires the assessment of a company’s current particular issues to define its aims. Such an approach assists in the establishment of purpose and design of a long-term set of tactics to achieve it. First, Etisalat can actively work on minimizing its carbon footprint, which is an aggregate amount of greenhouse gas emitted by the company (Bello, Solarin and Yen, 2018). The strategy can be called Environmental Sustainability with an outline of goals and measures the organization is going to take. The corporation will maintain a specific volume of consumption so as not to deplete available resources (Swain and Yang-Wallentin, 2019). Additionally, Etisalat may publish annual results of reduction in carbon usage. Therefore, the corporation can focus on ecology and put an effort into reducing the destructive impact it imposes on the planet.
The need for implementation of this strategy is justified by the cost reduction policies and future ability to uphold a competitive advantage. Since prices on resources are constantly rising, Etisalat, which manages them in an efficient and cost-effective manner, will be much less susceptible to price swings. Second, the sooner it adopts the principles of sustainability, the better its chances of gaining a competitive advantage in the market. The significance of physical assets will start to reduce, while intellectual ones such as workers’ talents and potential will become a more substantial component of success (Sharafuddin, 2017). Third, the adoption of a sustainable development strategy requires constant coordination and harmonization of actions both within the company and with the environment. Thereby, it is crucial for Etisalat to accomplish the Environmental Sustainability program.
Concentration on human capital is another tactic, which can be used in order to achieve a sustainable future. Considering poor customer services, Etisalat should focus on the attraction of talented individuals who are willing to pursue its objectives. The Human Sustainability strategy involves engagement with workers by providing opportunities for personal and career growth. They may learn about an appropriate response to customer complaints or taking immediate action to remedy any issues. Moreover, by educating and training staff members, Etisalat establishes a foundation for a prospective source of competitive advantage (Davis, 2017).
Managers need to embrace diversity by hiring people regardless of their ethnicity, gender, or social status. Thus, Etisalat can demonstrate its concern for bias occurring in the workplace when one is rejected because of the skin color. Thereupon, Etisalat should improve its employees’ communication and professional skills and display awareness about prejudices against certain people.
A sustainable development strategy affects the investment attractiveness of a company. A portfolio investor, when deciding to buy a share of a company, examines the full range of risks including non-financial ones. A business can be attractive in terms of current profitability, but extremely fragile in the area of environmental and social performance. Therefore, for a strategic investor, the value of the company is directly related to ecological and socio-cultural aspects. Etisalat can conduct a procedure which involves the identification and characterization of risks and liabilities related to environmental, health, safety, and reputation issues. The analysis of their impact on the cost of acquisition might affect the funding of projects and other initiatives (Manes-Rossi et. al., 2018). Therefore, it can be noted that the execution of the long-term programs influences Etisalat’s potential investment opportunities on the part of third-parties and funding capabilities.
The scope of the problems, which society try to raise, is of a global character, requiring joint actions. Thus, the next strategy comprises of various networks and connections Etisalat has with its customers, suppliers, and even competitors. Collaborative Sustainability is the name given to the initiative, consisting of a set of critical partners and engagement activities. However, Etisalat should be mindful and considerate in choosing its cooperators since their status and reputation may affect the company’s ones (Muller, 2019). In addition, Etisalat can collaborate with governments, civil societies, and local communities to distribute its human, technological, and economic opportunities, promoting advancement and commerce. Hence, a cooperative attitude can influence the results in a positive direction, demonstrating the seriousness and effectiveness of proposed solutions.
Companies that apply sustainable principles in their operations will be able to manage their risks better, forecast the market, build long-lasting and trustworthy relationships with partners and employees, and, thereby, ensure superior profitability. The requirement for consistent development is justified by a number of circumstances. It influences the entire value chain of a company, from product development and to customer purchase. Decisions are complex, often controversial, including conflicts of interest between individual groups and the financial and non-financial objectives of the company. Hence, strategies involve interaction with a wide range of stakeholders whose impact on a company’s long-term sustainability may be significant. Thus, these programs are accepted due to uncertainty generated by factors such as climate change, geopolitical events, changing legislation, workers’ and consumers’ interests.
Impact of Organizational Culture on Multinational Companies
Organizational culture (OC) has a significant impact on managerial processes and decisions. It concentrates on the policy and ideology of the enterprise, its system of priorities, the criteria of motivation and distribution of power, and the characteristics of cultivated social values and norms of behavior. For example, if an organization focuses on the quality of services and products, much attention will be paid to customer convenience, satisfaction, and even whims. Conversely, if a company focuses on high productivity, fights for mass production, and lowers prices, buyers who value the service in the first place will often be dissatisfied. Administrative culture can affect the dress code, the time spent on an informal conversation before a meeting, and the speed of promotion. Since Etisalat is a multinational company, its international activities determine the methods of administration according to each region.
In considering the impact of OC on business processes, there is a possible link between culture and performance. In order to understand the organizational course itself, the cultural aspect must be taken into account (Cummings and Worley, 2019). In other words, it must give approval or disapproval to an employee whose actions are culturally appropriate or not, and there must be a common system of values among the members of the organization accepted by all. Moreover, corporations whose priority scales provide and encourage the active participation of staff in decision-making, akin to investment in a project, can offer better results, than in other organizations where such merits are not commonly accepted (Fernandes and Mupa, 2018). However, an international corporation might erroneously apply the same methods of administration in the United Kingdom and Morocco where people have a different perception of the workplace. Therefore, OC influences the productivity and efficiency of the corporation.
Organizational relations include internal and external relationships, called communications. Communication is evident at all stages of the organization’s operations, as well as for its staff. It has established norms of relations, including connection, between people within an enterprise, in the performance of their assigned functions, procedures, and operations. Thus, the socialization process is an integral part of the OC and is, therefore, influenced by it. There are some difficulties in disseminating information within the enterprise that contributes to the misrepresentation of messages. One reason is an inadvertent distortion of information due to difficulties in direct interpersonal contacts. In a diverse environment, people of different religions or values can possibly misinterpret each other. According to Huang (2020, p. 11), such miscommunication can lead to a “serious conflict that cannot be easily excused.” Indeed, diffusion of disagreements can be deep trouble for the management (Williams et. al., 2019). Therefore, the socialization between workers can be under threat because of inappropriate OC.
The disparity in the status of the organization’s levels of employees is also a cause that distorts the message. Some top managers respond positively only to positive information, so there is a tendency in the enterprise to supply them only with the knowledge that they are sympathetic to. In doing so, subordinates want to hear from the leadership approval if they say something that pleases them. Otherwise, they are driven by fear of punishment and a sense of futility in the work they do. According to Ohuruogu et. al. (2020, p. 22), corporate communication between “leaders and followers” is “bound to be disagreement.” For example, a female subordinate has been asked to perform a task, which is not included in her responsibilities. The manager requested her to make a cup of coffee for him. Such unethical and sexist behavior can cause depression and personal frustration. Thereby, the difference in position might also contribute to business deficiencies.
Another factor facilitating inadequate communication is the poorly designed structure of the organization, which prevents managers from fully planning and achieving their objectives. In an enterprise with multiple levels of administration, the probability of information distortions is increasing, as each successive level of management can adjust and filter messages according to its understanding of the particular issue. It is also true for Etisalat with its centralized system of pyramidal shape where all decisions are made by top management. The organizational structure creates information bottlenecks and lags in response to ever-changing customer preferences (Seidel, 2018). Alternatively, managers at all levels should have a clear understanding of their own knowledge needs as well as those of their supervisors. Thus, it can be noted that OC’s influence spreads to the nature of the administrative structure.
While the recruitment and selection process focus on identifying the professional and personal competencies of the staff, it is equally important that it conforms to the current OC. This factor is identified and highlighted by managers during the pre-selection interview (Alduayj and Smith, 2019). The purpose of the interview is to assess the overall level of the applicant, his or her level of education, and the personality-defining qualities. It is not only a test of the applicants’ appearance but also of their alignment with the corporate culture of the organization, as well as the possibility of its adaptation in the collective of already working employees. However, it is frequently a case when an applicant is rejected due to race or gender bias on the part of the human resource department. Thereupon, OC can negatively affect the interviewing process and the further environment in the workplace.
OC is the set of techniques and rules, which is developed throughout the history of an enterprise. External environment and internal relationships between workers are parts of OC. It concentrates on the policy and ideology of the activity of an organization, its system of priorities, the criteria of motivation, and the characteristics of cultivated social values and norms of behavior. OC can have either favorable or unfavorable effects on business performance. Communication between employees and employers forms OC and impacts effective operations. Nevertheless, in the diverse environment, multinational enterprises face difficulties with OC. Hence, it may severely imperil working activities as some of the staff members might not be ethical in their judgments of their colleagues.
Ahmetoglu, G. et. al. (2019). ‘The impact of organizational structure and work autonomy in fostering entrepreneurial tendencies and job performance’. Forum for Empirical Scholarship, 8(1), pp. 128-143. Web.
Alduayj, S. S. and Smith, P. (2019).‘Sentiment Classification and Prediction of Job Interview Performance’, 2019 2nd International Conference on Computer Applications & Information Security (ICCAIS). Riyadh, Saudi Arabia, 1-3 May. IEEE, pp. 1-6.
Alegre, I. et. al. (2018). ‘The real mission of the mission statement: a systematic review of the literature’. Journal of Management & Organization, 24(4), pp. 456-473. Web.
Aubry, M. and Lavoie-Tremblay, M. (2018). ‘Rethinking organizational design for managing multiple projects’, International Journal of Project Management, 36(1), pp. 12-26.
Bello, M. O., Solarin, S. A. and Yen, Y. Y. (2018). ‘The impact of electricity consumption on CO2 emission, carbon footprint, water footprint and ecological footprint: the role of hydropower in an emerging economy’, Journal of Environmental Management, 219, pp. 218-230.
Cummings, T. G. and Worley, C. G. (2019) Organisation Development and Change. Mason-Ohio: South-Western Cengage learning.
Davis, P. J. (2017). ‘How HR can create competitive advantage for the firm applying the principles of resource-based theory’, Human Resource Management International Digest, 25(2), pp. 4-6.
Fernandes, A. and Mupa, H. (2018) ‘The effect of organization culture and technology on motivation, knowledge asset, and knowledge management’, International Journal of Law and Management, 19(1), pp. 1-10.
Hamdani, H. A., Lazarova, E. and Maria, C. D. (2017) ‘FDI, economic performance and technological spillover effects: evidence from UAE’, 22nd International Scientific Conference on Economic and Social Development – The Legal Challenges of Modern World. Varazdin Development and Entrepreneurship Agency, 29-30 June. Varazdin Development and Entrepreneurship Agency, pp. 531-544.
Huang, J. (2020) Sino-German intercultural management: self-Organization, communication and conflict resolution in a digital age. Gewerbestrasse: Springer, 1st edn.
Jahanmira, S. F. and Cavadas, J. (2018) ‘Factors affecting late adoption of digital innovations’, Journal of Business Research, 88, pp. 337-343.
Khan, A. (2019) ‘Enhancing global competitiveness through employees: a case study of Toyota Motor Corporation’, Singapore Management Journal, 8(1), pp. 83-89.
Kocak, A., Carsrud, A. and Oflazoglu, S. (2017) ‘Market, entrepreneurial, and technology orientations: impact on innovation and firm performance’, Management Decision, 55(2), pp. 248-270.
Manes-Rossi, F. et. al. (2018) ‘Ensuring more sustainable reporting in Europe using non-financial disclosure—De Facto and De Jure Evidence’, Sustainability, 10, pp. 1-20.
Mathies, C., Lee, J., and Wong, A. (2018) ‘Service models and culture: impact on work behaviours’, Journal of Services Marketing, 32(5), pp. 616-628.
Muller, J. M. (2019) ‘Business model innovation in small- and medium-sized enterprises: strategies for industry 4.0 providers and users’, Journal of Manufacturing Technology Management, 30(8), pp. 1127-1142.
Ohuruogu, B. et. al. (2020) ‘Stress and social conflict management in an organization’, Journal of Natural Sciences Research, 10(6), pp. 21-25.
Rita, P., Oliveira, T., and Farisa, A. (2019) ‘The impact of e-service quality and customer satisfaction on customer behavior in online shopping’, Heliyon, 5(10), pp. 1-14.
Seidel, M. L. (2018) ‘Questioning centralized organizations in a time of distributed trust’, Journal of Management Inquiry, 27(1), pp. 40-44.
Schaer, O., Kourentzes, N., and Fildes, R. (2019) ‘Demand forecasting with user-generated online information’, International Journal of Forecasting, 35(1), pp. 197-212.
Shafiee Kristensen, S. and Shafiee, S. (2019) ‘Rethinking organization design to enforce organizational agility’, 11th Symposium on Competence-Based Strategic Management (SKM 2019). Stuttgart, Germany, 27 September. DTU Library, pp. 1-14.
Sharafuddin, N. H. (2017) ‘The role of knowledge management in achieving sustainable competitive advantage in business’, Journal of Education and Social Sciences, 6(2), pp. 137-142.
Swain, R. B. and Yang-Wallentin, F. (2019) ‘Achieving sustainable development goals: predicaments and strategies’, International Journal of Sustainable Development & World Ecology, pp, 1-11.
Toma, S. G. and Naruo, S. (2017) ‘Total quality management and business excellence: the best practices at Toyota Motor Corporation’, Amfiteatru Economic, 19(45), pp. 566-580.
Williams, C., Moore, E., Williams, C., Jones, R., Bell, R., and Holloway, R. (2019) ‘Using an integrated system approach to manage conflict’, Journal of Leadership, Accountability, and Ethics, 16(4), pp. 1-13.