To develop a reasonable strategic plan for Dubai World Trade Centre, housing keeping department, the company’s mission and dream must be integrated with its objectives. This can only be done through the identification of the company’s keys to success in marketing as well as the analysis of its SWOT status. The company’s keys to success in marketing include fair but reasonable pricing of its services, good customer care skills and provision of a variety of payment methods. Since the companies vision is to become the leading firm in provision of housing-keeping services to its clients worldwide, and then it should work towards achievement of that through a well-developed strategic plan. The strategic management plan focuses on the company’s SWOT analysis, internal and external environment and identifying strategic options. Some of the company’s strength includes its strong financial base, highly qualified management staff and its multinational status.
The company will use its strong financial status to market itself so as to reach a wide range of clients. It will also be able to hire several clients who will be able to serve its clients online. Its strong financial base implies that it can be able to offer a variety of payment methods without any problems. The company will also conduct frequent market researches so that the management will always be informed of any emerging marketing strategies so that the company is kept on track. The company will also utilize any available opportunity within its grasp to maximize its sales. These are two opportunities that the company will utilize to maximize its sales. The company is however faced with the threat of emerging strong competitors who have advanced online marketing strategies.
There are two major methods of data collection. They are: quantitative data collection methods and qualitative data collection methods. Quantitative data collection methods test a theoretical hypothesis or estimate the magnitude of a phenomenon’s interest. Random sampling, characteristics and instrumentation are utilized to determine results for quantitative data. Quantitative data is favorable for certain forms of data due to its ease at assessing, comparing, and simplifying results (Doole and Lowe, 2004). Types of quantitative data collection methods are:
- Well-Defined Event Observation
- Management Information Systems data collection
Qualitative data collection methods provide information more detailed information on research than quantitative data collection. This is completed via audiotapes, notes, photographs, etc. Qualitative data collection must be open-ended, with interviews, triangulation, and findings are only specific to a certain population group. Methods of qualitative data collection are: In-depth interview, Observation methods and Document review (Crane, Kerin and Rudelius, 2008).
In this study, qualitative and quantitative data collection is utilized due to the reference to the documents of past research this is because of collection of information within the confines of the variables.
The department will be cleaning industry which has many competitors. In this industry there is stiff completion from companies like Abu Dhabi National Hotels, Burooj 2000Al Wasl building cleaning services, Al-Bariq cleaning equipment, Dulsco, cleaning and maintenance center, Farnek services, continental Trading co., Bon Bini building cleaning and many others. The department will command large market share because of the services they offer.
The industry possesses several profit enhancement areas, but the most profitable items are cleaning of exhibitions. Although the office cleaning is more used by many on a daily basis, they have a small margin. Typically, new service within this sector accounts for more than 15% of revenue.
Company description- Dubai World Trade Centre
Dubai World Trade Centre along with its auxiliaries is a company that operates a trade center that delivers Dubai a world-leading commercial hub. The trading center is involved in organizing global events, managing venues, event management, housekeeping services, provision of real estate that is affordable for growing businesses and providing a dynamic business environment and customers. The main business is to deriver Dubai to world in business and tourism.
The housekeeping department provides 24-hour services for all customers, exhibitors and tenants. The services are offered at speed and efficiency thus being the best. Some of the services that are offered by the housekeeping service department include (Dubai World Trade Centre, 2009).
- Cleaning and exhibition stands
- Housekeeping services for hotel apartments
- Office cleaning
- Carpet cleaning and floor finishing
- Specialized glass and acrylic cleaning
- Full range of laundry services
- Window cleaning services
- Cart services
‘To make Dubai the world’s leading destination for all major exhibitions, conferences and events (Dubai World Trade Centre, 2009).
The company’s mission statement is to become the leading firm in provision of hospitality services and products at convenience of the client internationally and other visitors to United Arab Emirates.
Some of the major goals of Dubai World Trade Centre include: controlling as well as growth in the Housekeeping industry and to continue leading the firms in the industry, to enhance supply and provision of housekeeping services to clients, improve client experience on the company’s products, enhancing trade and merchandising prospects and broadening the collection of service so as to serve the needs of every client (Dubai World Trade Centre, 2009).
- ‘Delivering Dubai to the world’ through a calendar of events (Dubai World Trade Centre, 2009).
- ‘Enhancing customer experience with state of the art facilities and seamless services in all our venues and by creating an integrated destination at DTC Jebel Ali and DTCD'(Dubai World Trade Centre, 2009).
- ‘Providing world-class real estate solutions, offering a dynamic environment’ (Dubai World Trade Centre, 2009).
- ‘Inspiring our employees with rewarding career opportunities’ (Dubai World Trade Centre, 2009).
I am an administrator in charge of the office cleaning. My duties include scheduling jobs, taking orders, procuring cleaning materials for the section and managing employees under my section.
A strategy is a long-term plan of company directions in terms of their actions in achieving their goals. A company without a strategy is like a vehicle without an engine. A strategy gives company’s management a basis for measuring their performance and it provides the company’s employees a route to follow for their benefit. Strategic management is important as it helps employees know which direction to manage the company to (Johnson and Whittington, 2006).
The strategic plan affects culture because, as part of the plan, the company would try to create corporate image which may not be suitable for their diverse populations. Hence, it is important that the management ensures that they have contingency planning for these effects. Aside from that, it can be said that the strategic plan also has effects on stakeholders since they are the ones who will be directly influenced by the said integrated marketing communication approach (Grant, 1991).
Strategic Direction Identification
The mission of Dubai World Trade Centre is to promote diversity as well as inclusions among the firm’s employees and staff, owners/operator’s and suppliers who represent diverse population of the center. On the other hand, the vision of the company is for the Dubai World Trade Centre’s System to leverage its distinctive, strengths and offer best services to the world. The value of Dubai World Trade Centre simply lies in doing its responsibilities by helping businesses and governments hold conferences, exhibitions and trade shows.
Levels of strategies
Functional level Functional strategies are objective-oriented decisions and actions of various functional departments of the organization (David, 1989)
Corporate Level: Corporate strategies are mainly concerned with the business-level strategies and are usually designed by the board of directors (David, 1989).
Business Unit level: Competitive strategies inform about the competition tactics of the organization for keeping pace with other competitive organizations (Williamson, Cooke, Jenkins and Moreton, 2003).
A company will be performing out-performing its rivals in the market and their strategic position is well stabilized if proper strategies are adopted. The debts levels of the company are always kept low if they want to be successful in the market (Thompson, Strickland and Gamble, 2008).
The key reasons for successes of companies are that they focus on their weaknesses and strengths, threats and opportunities they also try to minimize them. However threats related to economy and competition always remain major factor to most companies (Williamson et al, 2003).
Core competency and sustainable competitive advantage
Dubai World Trade Centre is achieving its objectives by employing its keys to success in marketing. The company is ensuring it advances the customer experience on its services by piloting its services to selected institutions as well as designing strategies to improve the clients’ experience on the services (Grant and Derdak, 2007). The company is providing extensive assortment of product brands to gain a competitive edge over the other firms in the entertainment industry. To achieve all the above-mentioned objects the company will open several other branches in different countries to gain the maximum possible market share (Grant and Derdak, 2007).
In order to find out importance of the above in the company, I shall carry out external analysis. External analysis includes PESTLE analysis and porters five forces.
PESTLE analysis is analyzing external environment of a business. It involves political environment, economic environment, technological environment, and social environment(Kreitner and Kinicki, 2004).
Political environment: Politics is what forms a government of the day, and the government influences the activities of businesses operating in their territory (Schein, 1997). The government of United Arab Emirates influences the DWTC directly by means of laws that are set as well as providing some services which influence its activities.
Economical environment: Interest rates and exchange rates have an impact on consumer spending and can affect the profitability of the firm. There are many economic indicators that determine the environment of DWTC. These include;- effects of affluence, depression, inflation, effects of research expenditure, buying power index, consumer ability and willingness, price elasticity, and cost of distribution that affects the business(Schaik, 2002).
Economic environment has been one of the factors that have affected DWTC globally because of the mentioned variable changes above. The consumer is affected by these changes and it’s upon the department head of the DWTC in question to analyze the environment so that he can determine the price they will charge their customers in order for them to succeed.
Social environment: A consumer is influenced by the society he lives in, if a person is of a particular religion, nation, tribe or population grouping he will adopt the culture of that grouping, and the culture of a grouping is a result of the influence of the language of the people, beliefs, knowledge, values, habits, and laws of those people. This means this affects the consumer in question in terms of his lifestyle to some extent of what they consume (Schifmann and Kanuk, 2000).
Technological environment: Technological environment is one of the best environments which have influence on the lives of a product. It is common in the world today where there are technological changes for managers to know technological innovations taking place in market in product development. Marketing is involved in spreading technology and innovations in the society; after a new product has been identified it is sold to the market. The market identifies the needs of the customer and how they will make the customer happier then a product is produced using technological innovations which improves technology in the market (Schaik, 2002).
The effective formulation of a strategy needs a clear understanding of competition and this is done through the use of Porter’s fives forces. Understanding the sources of competition can help the firm to gauge its own strengths and weaknesses, and to perceive the trends in the industry so that it can position itself optimally for the best returns (The ICFAI University Press, 2003).
The industry is analyzed with the help of Porter’s five forces as under (Porter, 1980):
Threat of New Entrants: Though the DWTC has ruled the industry, this fact does not translate to lack of competitors or new entrants into the industry. The surfacing of alien competitors with the capital, required innovative technologies and executive skills started to weaken the market share of the automotive DWTC Housekeeping department(Fahey and Narayman, 1986).
Bargaining Power of Suppliers: The supplier concentration in the Housekeeping industry is quite more. In case, a supply of the Housekeeping industry products and services changes to another supplier for purchasing then the former supplier would be at a huge loss (Pederson, 2001).
Bargaining power of Buyers: The Housekeeping industry has got huge number of suppliers and hence the DWTC Housekeeping department has a varied choice of suppliers. If the DWTC Housekeeping department is not comfortable doing business with the current supplier, he always has the choice of switching suppliers.
Threat of Substitute Products: When analyzing the industry for substitute factors, it is not necessary to limit the availability of substitutes to just a different supply of similar services but also to other means of delivering tourism services( Miles and Snow, 1978).
Competitive Rivalry: The global Housekeeping with services similar to those of DWTC Housekeeping department can be termed as an oligopolistic market wherein there are very few players who rule the industry. However, this fact does not necessarily mean that there is no competitive rivalry in the industry (Miles and Snow, 1978).
Key Success Factors
The industry and company success factors include:
- Targeting all exhibitors and businesses
- Retaining exhibitors – good customer service
- Bringing new ideas to keep them ahead of competition.
- Online booking services
- 24 hours services
- Diversity in services and products
Internal analysis carries an audit of internal environment which can be controlled by the management. It considers efficiency and financial health of the organization.In this case sword analysis is used. Therefore internal analysis takes a look into deep activities of the organization where economic efficiency is considered to gauge whether the firm is economically efficient.this will enable the company to understand its environment and enable it to position itself in the market (Armstrong and Kotler, 2007).
Financial analysis: The firm has recorded an increase in its margins according to the annual financial results. Both the profit before tax and the Net profit margin were greater than the operating profit chiefly due to an increase in Foreign exchange income. The firm’s major clients who are exhibitors add approximately 75% of the entire revenue of DWTC. Since the firm operates on a win-win strategy with its corporation, this figure is predicted to rise and hence raise the total revenue of the firm. In addition, the services offered by DWTC Housekeeping department to its clients are cost-effective for DWTC thus increasing the chances of raising the total revenue.
The firm has benefited from the fact that approximately 68% of its revenue is generated in the UAE.
The firm’s growth and profitability can be represented graphically as shown below.
Operational analysis: DWTC operates in Dubai with services ranges from cleaning, laundry and window cleaning.
- Continual technological updates – cleaning equipment
- Focus on customer needs
- Promotions free services to customers
- Highly skilled technicians to keep department running effectively
DWTC integrates horizontally if for example they launch new products or just updates existing products when it has to sell the product to different markets. Overall DWTC operations operated in a very efficient manner but still debts, fraud and licensing problems are still major issues in their business.
Human Resource Management Analysis: The success of DWTC is due to intelligent, talented and highly qualified staff and management teams. It’s also building new programs to attract the brightest and effective new employees, and retaining old staff by offering shares, promotion and bonus options (Dressler, 2008).
DWTC Housekeeping department’s exceptional growth has been determined by its well-known services which have been created by using different marketing strategies, targeting all groups and serving all businesses with its services(Armstrong and Kotler, 2007).
Service – cleaning services to the exhibitors, stands, hotels and offices
Price – Competitive price of its services
Promotion – Promoting through TV channels, Newspapers and Online
Place-based in Dubai
People – Talented staff and highly skilled and experienced management.
Target market – The specific target market or customers for Housekeeping services involves offices, exhibitors and homes who lead require cleaning. These customers tend to work hard, party hard, and a significant portion of them engage in activities.
Positioning – The Housekeeping services shall be positioned as a strong, effective, service that is available to people all over the world. Consequently, the Housekeeping services will maintain their image among the exhibitors. Fundamentally, the Housekeeping services will convey the message of reliability, quality, and immense value for money (Booms and Bitner, 1981).
|Question Mark |
Cleaning of exhibition stands
Housekeeping for hotels
|Cash cows |
Carpet cleaning and floor finishing
Housekeeping department is a cash cow to DWTC because it uses fewer resources. There are a few reasons why housekeeping department has the right services. DWTC success will be due to marketing techniques such as charge skimming, penetration pricing and offering multiple services at one price and mostly promoting its services. Their success depends on appealing their products and services to diverse range of users (Ansoff, Declerk and Hayes, 1976).
The success of Housekeeping services has been documented extensively in the last decade. Fundamentally, the DWTC achieved leadership status because of several effective strategies as culled from company website. One is its unique, aggressive distribution strategy anchored on developing and selling directly to customers, which the company provides various services (David, 1989).
Huge financial resources
Retention of responsibilities
Economic financial crisis
- Business concentration risk varied by different verticals: The department has managed to vary its business concentration risk by expanding its base through serving in cleaning verticals(Booms and Bitner, 1981).
- Large number of professional staff: The firm has professional staff in Dubai where it has established its operations.
Business concentration risk by vertical: The department made more than 33% of their final quarter from the cleaning of exhibitions.
- Foreign Exchange: The firm is exposed to currency fluctuation and unpredictability since more than 20% of its billing is in foreign currency. A reasonable appreciation in local currency would imply a loss to the firm although the firm has benefited from the current decrease in the value of the currency.
- Source of professional staff: All the necessary human resource personnel required by department are readily available from the graduates produced by education institutions.
- Economic Crisis: Since the firm obtains more than 80% of its revenues from UAE economic recession in these places would imply that the firm will be greatly affected in terms of revenues and profitability.
- Competitive risk: The housekeeping industry has several firms all of which are aiming at making profits. Should any of the existing competitor firms concentrate in the market areas which are served by DWTC, then DWTC is bound to make losses.
Identifying Strategic Options
- Diversify its products to meet the needs of customers in all the countries it operates.
- Outsourcing business activities to stay competitive
- Investment in technology
- Joint venture or acquisitions
- Differentiation strategy
Evaluating and Selecting preferred Options
|Diversification||Entering different markets to reduce its weaknesses||Existing capabilities to enter different market||Value creation|
|Outsourcing||Increase profitability||Could lead to industrial action||Chances of failure|
|Joint Venture or Acquisition||Reducing competition, high profitability||Investors will be happy as no additional investment is required||Increases market share as well as making DWTC a well known global brand|
|Differentiation strategy||Competitive advantage||Widely valued by buyers||People may pay higher prices – increases revenue|
This approach is important to ensure that the focus is on the objectives to be achieved. The ‘how’ can be modified to respond to the particular circumstances. This ensures flexibility in the management of change. In answering the above questions, it is important to understand that change means: (i) moving from a solid present state to a new solid desired state through a period of transition (ii) managing the politics involved in the change process. Change involves crisis and opportunity (iii) managing not only the planning, organizing, directing and controlling an organization but also the power struggles, strategic maneuvering and “cut-throat” actions (McShane, and Von Glinow, 2005).
The key strategy to facilitating adaptation to change is communication. This should be clear, timely, and two-way and must-have information and meaning (McShane, and Von Glinow, 2005). Management skills required to successfully manage change are:
- Analysis and identification of issues requiring solution through the change process. Determine the objectives and resultant changes;
- Formulation of strategies for achieving these objectives;
- Development and implementation of ways for gaining acceptance of the objectives and the means of achieving them. It is important that those involved in the change process and those affected by change are part of the change process. Successful management of change depends primarily on people management skills.
The following should be noted in implementing change: (i) change must be led and managed from the top. This is a leadership role; (ii) Gradually, responsibility and accountability are transferred to staff to increase ownership of and participation in the change process; (iii) a ‘core’ of committed managers who are seen to represent change must be created at an early time (McShane, and Von Glinow, 2005).
In DWTC, the empowerment of staff is recommended in order to respond to different and changing needs of clients. This is a culture where the primary task of supervision is to help people to trust their own instincts and take responsibility for the success of DWTC. People’s empowerment requires management to move from hierarchal structures to more participative forms of management, with a sharing of authority and responsibility for service delivery to clients. It is also recommended that the culture of change need to be established in DWTC. This helps in strategic thinking and an ability to rapidly respond to changing environment events that radically transform the business environment. It also embodies an adoption of people-centered values that direct management, practice, as opposed to purely task cultural determinants (McShane, and Von Glinow, 2005).
It is also recommended that DWTC as a business entity must be flexible. Organizations that are able to rapidly respond to changing circumstances are open and responsive to new ideas, employee involvement, and participation, which are key elements in engendering flexibility within the enterprise (McShane, and Von Glinow, 2005).
Dubai World Trade Centre, Housekeeping department has been growing at a faster rate therefore it is important for them to grab the opportunities that will provide them additional benefits. Joint-venture or acquisitions small firms will provide long-term benefits.
Although Dubai World Trade Centre’s Housekeeping has been increasing its customers, their rivals are performing even better therefore they should merge with others to increase their profitability and market share. And by implementing this strategy they will not just gain market share but also gain experience which will provide the first step towards successful future of becoming an independent company(Kreitner and Kinicki, 2004). This will provide them with extra opportunities to launch their other products and also save them majority of their costs such as labor, corporation tax and VAT and that will help them increase profitability.
Dubai World Trade Centre, Housekeeping services department has devised some effective and pragmatic policies for each operation and that is why, they have maintained their status in the world. However, some of its strategies could not produce the forecasted results and produced heavy burden on the financial assets of the center. The strategy of enhancing its number of services should be appreciated but should not be mismanaged overall trade center strategy. Similarly, the enhancement of the services also accelerated the growth of the center, because most of these services were the new in the center and these types of services attracted many customers from all over the country and other exhibitors. Its operational strategies also devised some new plans for the center which also became the major cause for the healthy revenue collections (Booms and Bitner, 1981). The cleaning policies of the center also provided them with new platforms for the business. The booking system of the center attracted the customers from every corner of the world due to easy access of the customers to its services. In addition to this, the major strength of the center was its brands, which was proved from its demands even after some economic crisis at the world level (Kreitner and Kinicki, 2004). In short, the center’s competitive advantages retained its status in the Housekeeping industry.
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