INTRODUCTION
The Middle East Aluminium (MEA) did not take much time to achieve significant Behind this excellent development, the reason is the suitable size and nature of the company With this growth and by detecting the internal capabilities along with , the company has successfully captured the global
market through achieving competitive advantage over
The primary aims this research is constructing a and
help them to maximise the business through the effective operation and can extract the global market through Therefore, the overall aim is achieving
the As per this aim, the objectives of this report are as
follows
The current report considers the drive the company to achieve the goals and objectives and attract the For
this, respective objectives are defined in the above and that can be also considered within the scope of the study. In this report, the vision and mission of the statements of the company of internal and external factors (Teeceet.al.1997). Besides, the process regarding the implementation of the strategy and KPI based analysis to review the be considered within the recommendation part of this report.
The company as MEA intended to ensure significant growth in the Middle East and international to establish long-term growth and market share by maximising business in the global market as the largest multi-site aluminium products producer. Moreover, the manufacturers by ensuring the company operating its business functions as per the global regulations.
The mission statement of MEA can be determined by following
Therefore the mission statement the company is introducing as the largest
By following the mission and vision of the organisation, the organisational value statement will be Establishing as competitive advantage, social responsibility and ethical integrity along with high-end-customer support.
The was founded five years ago and now they are multinational and have offices and divisions across Saudi Arabia, Jordan and Kuwait as well as in the market of Middle East. In the business journey, the company has achieved different manufacture grade as
Besides, the company is involved in manufacturing a few customised products as per the requirements and suggestions of the consumers (Freeman,2010). In recent times, the MEA acquire raw materials as As there is no Cast House in the other operational divisions of the MEA,
After the foundation, in between just 4 years that is a very short time, the organisation has successfully achieved significant growth that supported
By looking at these aims and objectives, the company has
They have also considered the relevant internal and external factors
The MEA has not only considered the significant growth in the Middle East market but also considered global expansion and the competitive
However, to achieve the competitive advantage over the large organisations in the companies within the international market, the company should ensure sustainable advantage by offering emerging products When the organisation will detect the
proper context of competitive advantage, it will be easy for them to determine in which they need to focus such Therefore, the internal and external factors should be analysed and diversification of currently used strategies that help to add value in the product lifestyle (Pearce et.al. 2000). These defined parameters will assist to enhance their performance as they can
For the identifications of key stakeholders of the company, it is important to
The key stakeholders of the company are described in
as per the stakeholders matrix and exceptions of them.
| GROUP | STAKEHOLDERS | EXPECTATIONS &INTERESTS |
Customers |
Effective |
|
| Compliance with | ||
| Business | of products | |
Employees and related organisations |
. |
Compliance with regulations |
| Occupational health & | ||
| safety | ||
| employees | Employee needs | |
Shareholders and investors |
Company | Achievement of |
| Revenue | ||
| holders | Sustainable organisational | |
| of Bahrain | ||
| ministry | Quality | |
| regulations |
The interested people and parties in the development of the company are such as the owner of the company, . The interest and expectations of these parties will help the organisation to archive its strategic goals and objectives, as well as global expansion and markets, . Besides, the group of stakeholders are intended to focus on the long-term development of the company as they can
become a market. However, the owner of the organisation
and the equity holders have much interest in enhancing the core competencies of the organisation (Ansoff et.al. 2019). The employees as a main performance moderator, are looking for their intrinsic and extrinsic needs and that can be
The stakeholder analysis in the above presents that their interest should be incorporated
. Thus, the strategic plan will be such that it can facilitate the process of achieving long-term development and expansion in the
The fundamental competency of the company is locations of its offices and divisions across Saudi Arabia, Jordan Core competencies can be defined as
the features and activities that provide advantages over other companies in the same sector (Fleischmann et.al. 2006). The business functions and market of product selling not only limited in the above places but .
Among the all distinctive competencies of the company, the most important competency is it is able to produce These billets are utilised for the implementation of finished products such as street lights. Telephone poles, lightweight bicycle frames, aircraft parts, quality metal case flashlights and high-end golf clubs (Katsioloudes,2012). Moreover, those billets are also considered for the production of different end-use products as per the customer the MEA is a
wide range of aluminium grades billet that is
According to Porter, there are two different competitive advantage for any organisation such
. The researcher has also added that the company can gain a competitive advantage over the competitors by ensuring cost effectiveness means producing production with less cost or offering a wide range of products (Samli et.al. 1998). From this concept, three strategies are defined and described such as
Figure1Porter sgenericcompetitivestrategies
CostleadershipstrategyThis strategy helps an organisation to be established as a low- cost producer over the competitors in the respective industry. However,
economies on the scale, technological interventions and preferential access to raw materials (PorterandMillar, 1985).
Differentiationstrategy By following this strategy organisation can offer a range of
, industry trend and future trend in the aim of achieving competitive advantages in case of end products. With the
concentrate on the features of products and the first priority of the company should be
Costfocus strategy This strategy suggests
CostDifferentiationstrategy To follow cost differentiation strategy, the company should focus realise in which segment they will concentrate to be
established as the low (PorterandMillar,1985).
In spite of the issues of transporting the aluminium billets in different locations,
There is always tough competition in the industry of manufacturing aluminium products. The main competitor of the company is Aluminium
and produce aluminium billets (Albasmelter.com, 2019). The emerging competition in the global market drives the organisations to follow a differentiation strategy in case of product. However, the cost-leadership strategy is used for
low-cost product that can . For ensuring a low-cost advantage in long-term the involved managers of the organisation should analyse and considers every aspect of product designing as much as possible (Miller et.al. 1986).
The value chain is the network of value chain activities. The organisational input is covered by all activities into the output of the value chain. Through this activity every product is pass thus and by the activities pass which of the input. The bellow this figure provides the illustrating Porters value chain model that can be utilised in the MEA context in order to analyse and examine all the value-added activities which are set to the inputs for their significant development to on the cost
and in turn to impact on the profitability of the company (Porter and Millar, 1985). Those models of MEA has been identified the activities particularly analysed as per the scope of two areas such, at first,
Figure 2 Porters Generic Value Chain Source: (Porterand Millar,1985)
The MEA� business processes, through the different
production company that procedure from the supplier. The fundamental production units are products such as extruded poles, street light, Due to the
fact that where the no casting house exists is allocated therefore the company has to deliver the billets weighing more The significant strategic
the specific ad details of primary and support activities to reach the goals of the organisation, those this activity of MEA for marketing, sales and extending after sales service in terms of customers relationship strategy, is critical to mentoring the
cost leadership strategy and identified the previous section in order to gain benefits of the cost leadership. According to Cravens and Piercy (2006), that cost advantage is the critical exploration of all the possible area, of each activity in the
production lifecycle, it is imperative that the advantage of cost must be associated with each activity , marketing sales or maintain the customers
relationship by the effienct6 of customers service. Project management, finance management, technical management, cost management, HR
Figure 3 MEA Value chain Adapted from: (DessandDavis,1984)
The value added to the individuals activities has to give availing a competitive advantage in the value Porters had to develop competitive strategies; the competitive advantage can be Differentiation is one of
the key distinctive competencies of MEA, of cost advantage at each activity in the value chain (Schuler and Jackson, 1987). Where the company has exploited this area by casting house development thus this area offers two
MEA include into the organisational structure it settled in a centralised manner. The company based in Bahrain there are The supplementary units are feast around as neighbouring . Administrative and managerial authorities are facilities for to level of critical decision making. This authority seated at, where the product is manufactured as well as primary product from which the company transported to the auxiliary units where they are significantly utilised for the production to complete the products. Increase control,
s a benefit of centralised structure which has encouraged to the workforce in order to achieve the significant success in short term period as also made the business model that utilised very easily (KaplinskyandMorris,2000). In addition,
The SWOT analysis It is considered to highlight the factor
impacting of the organisation in the operating business market its most affecting to the internal factors of the organisation. Describe below SWOT analysis of MEA,
Strengths: the company has been growing rapidly for 5 years. the current division of the company has been seen internationally in
Weaknesses: current cast house of MEA has been located in Bahrain. Transport the heavyweight to others MEA location . The company only manufacture billets if ignore as well as the sheet
Opportunities: global aluminium markets have been forecasted to develop in the time period of 2013 and 2023. Developing emerging markets The
Middle East and China always
Threats: in this case, the , Alba is Bahrain based aluminium smelter company it is largest within the Middle East. High is
expected with global manufactures (FaulknerandBowman,1992).
PESTLE analysis tools have been mostly used for tracking and analyses of the
or planning to expand their business within the organisation. The PESTLE of macro economically is included in the
effect on the business of the company. Bahrain has been providing the PESTLE analysis for MEA in order to identify the impact on concern factors on the business of the company.
The factors are explained below,
Political:predicted of transition in government has led with the altered priorities for the aluminium industry. Now the governance system has
Economical: Investment in the private sectors company increase with a high disposable income of the investors .
Social: the value based on Arab culture are mostly encourage
Technological:innovative technology is set in its infancy in this sector within Bahrain. The competitor
Legal: there is comply the global pressure with international regulation but
Environmental:every production needed t The priority of
the innovative product has been significantly
The internal and external factors such as the strength of analysis are key in order to
. Other than the SWOT analysis identified some inherent
opportunities like to MEA and PESTLE analysis identified macroeconomic factors which are considered for that can help to the growth (Burn,1989).
Dependence of diversification strategy significantly to
business expansion and assistance in the increase to the sales volume and income effective cost. Now the company has followed this strategy to
complete the product (Albasmelter.com,2019).
That kind of strategy for diversification is move and going to the
better control all-over the product quality. Now the MEA is like own billets that are delivered into the production for as
also engaging by the self-distribution by the company owned within the markets.
Horizontal integration strategy could be referred to as the diversification strategy which can be useful while entering It has been identified in the strategic planning process that the perspective of cost leadership competitive strategy (Freeman, 2010).