Value chain in an organization

Value chain in an organization - Arab Open University...

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Arab Open University – Branch of Bahrain Business Administration Department B200 (Section # 1 ) TMA # 07 International Dairy Queen Franchise Saudí Arabia Tutor Name: Mrs. Eman Asker Prepared by: Abdullah Suleiman Al-Dalaan (4040219)
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INTRODUCTION Business operations and their success largely depend on the ‘variables’ of the contemporary market conditions. T he 4 key variables of world business are Environment, Markets, Processes & Organization. Together, they form the ‘Dynamic Business Atmosphere’ in which enterprises exist. Below are detailed findings of the External Environmental Factors favoring the opening of Franchise of International Dairy Queen’s (IDQ) in Saudi Arabia (Refer… Appendix - 1). In this paper, assessment is divided over 4 parts. In first part, S TEP Analysis is utilized as assessment methodology tool for studying the influence of External Environmental Factors in Saudi Arabian. In the second part Market factors are discussed which might influence the Pricing of various goods. In third part, P rocesses are analyzed on how would it be useful in analysing the business venture. In last part, study of Organizational Structure of IDQ are undertaken. The final part of the paper will conclude with forecast and suggestion. QUESTION - 1 Choosing Saudi Arabia as a Middle-east market for IDQ to establish their fast-food outlet are due to the following reasons (Refer below Figure) : Saudi Arabia is the largest market in the Middle East, with considerable spending power from its 25% holding of global oil reserves. It has a sound economy, with a fast-growing and young population. It has a well-managed banking system. It has good infrastructure-hotels, air travel and telecommunications. It has generally low import duties and barriers, although strict attention are paid to documentation and labeling. Its business community is familiar with Western practices. It is a complex market, with limited transparency in a number of areas, notably government tenders. It is intensively competitive. The influence of Islamic law on business and social life in the Kingdom are well adapted by existing Foreign Business entrepreneurs and they have reciprocated an understanding towards the religious traditions and customs of Saudi Arabia. Low interest rates to accommodate global growth, which keeps rates low in Saudi Arabia, meaning low borrowing costs for the government, businesses, and individuals. Saudi Arabia's total exports in 2006 were estimated at US$64 billion. The USA, Canada, Germany and UK accounted for 50% of Saudi Arabia's imports in 2006. Figure – 1. MIDDLE-EAST COMPARATIVE ECONOMIC INDICATOR - 2006 B200B_TMA07 2
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The underlying rationale of using STEP Analysis for verifying the Middle-east location – Saudi Arabia for establishing an franchising outlet, is to acquire knowledge, understanding and effects acquired by Saudi Arabian external and internal environment. Scanning will allow us to
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This note was uploaded on 03/09/2010 for the course MANAGEMENT 116359 taught by Professor Dr.alcom during the Spring '10 term at Open Uni..

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Value chain in an organization - Arab Open University...

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