Strategic Analysis Of Masdar Commerce Essay
Strategic Management pertains to the alliance of the schemes with the mission and vision of the organisation by agencies of which the managerial attack adopted by the organisation may be made extremely effectual. The origin of strategic direction ensures that the environmental factors are punctually accounted for while fixing the assorted schemes for the organisation. A strategic analysis would non merely uncover the factors which is presently impacting an organisation but would besides foreground the competitory advantage attained by the company with regard to the competition in the market. Furthermore the consequence of the organisational construction prevalent in the organisation besides determines the strategic determinations of the company. It is hence necessary to measure all the facets of a company in order to efficaciously analyse the company ‘s strategic purchase in the market. The demand for strategic direction is felt most presents due to the fact that organisations aim at come ining the planetary market and being an active subscriber to the development of the planetary economic integrating. ( What is Strategic Management? )
The followers is a description of the strategic analysis of Masdar and the possible impact of its organisational construction on its strategic direction. This would be inclusive of the analysis of the assorted external every bit good as internal factors impacting the operational environment of the company. Furthermore the recent strategic move by the company for spread outing the range of their operations to international parts has generated a desperate demand for a strategic analysis to be conducted for the company by agencies of which the schemes may be enhanced. ( What is Strategic Management? )
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The UAE economic system is flourishing and booming unprecedented infrastructural development and this epoch has been marked as the “ epoch of economic passage ” that is characterized by strategic partnerships, incoming of foreign investings in substructure development prior held by the authorities of UAE. The full economic system is undergoing monolithic development in the countries of instruction and wellness sector, touristry, cordial reception, power and conveyance, and other commercial developments finally giving a new form to the urban development in the state ( UN I T E D A R A B E M I R AT E S Y E A R B O O K, 2007 ) .
In footings of urban development, Abu Dhabi is be aftering to put approximately simply AED 55 billion over following twosome of old ages on substructure undertakings. The major investings will include developments of airdromes, universe category ports and industrial zones in Mussafah, the 11000 unit Showayba City in Mussafah, Mohammad bin Zayed City and Khalifa City ( UN I T E D A R A B E M I R AT E S Y E A R B O O K, 2007 ) .
The state has already embarked with the remodeling and redevelopment of edifices at roads in the metropolis centre, along with the redefining and renovation of Central Market, incurring a significant cost of DH 2.6 billion. The transit component in the development program is invariably updating to run into the imperative challenge of gyrating traffic on the roads of the part. The traffic has been increased from over a one-fourth of a million with an addition to 237, 891 vehicles registered in the last assessment twelvemonth. The gap of the Emirates Palace in Abu Dhabi in the white flaxen beach spearheaded the ardor within Abu Dhabi in footings of touristry related substructure development ( UN I T E D A R A B E M I R AT E S Y E A R B O O K, 2007 ) .
The dramatic urban development and infrastructural growing has resulted in the escalating demand for power and electricity with a uninterrupted addition in the demand over the old ages. The authorities has formulated several programs to run into the uninterrupted rise in the demand and is implementing the programs in order to increase the capacity to about 60 % than present. It has been estimated that major production of electricity is fueled with the natural gas and the staying is met by the production through Diesel coevals ( UN I T E D A R A B E M I R AT E S Y E A R B O O K, 2007 ) .
On analyzing the major indexs, it has been articulated that Abu Dhabi is presently basking an enviable place and the economic system is speed uping by registering its per capita income as one of the highest figures across the universe. In a thrust for variegation of the economic system and accomplishment of sustainability, the Emirate is exciting its non oil sectors, and particularly come ining into export oriented concerns. On the premise that the hydrocarbon sector will probably to turn on the past historic tendency, the Emirate purposes to clinch for about 65 % part by the non oil sectors in the economic system by the terminal of 2030, change by reversaling the current image of sectoral part to overall GDP and economic system ( The Abu Dhabi Economic Vision 2030 ) .
The new and modern-day cognition based industries are conveying new values and chances in the industry and encouraging foreign capital from planetary universe. The rules that underpin and strengthen concern schemes doing investings commercially feasible and bring forthing long term net incomes over the long term and presenting societal returns to the full United Arab Emirates ( The Abu Dhabi Economic Vision 2030 ) .
History & A ; Growth:
Masdar was found and established in the twelvemonth 2006 as an independent entirely owned subordinate of the authorities of Abu Dhabi and Mubadala Development Company. The Masdar enterprise is an endeavor that works with five incorporate units in order to distribute its custodies to the universe of renewable energy and sustainable engineering industry. The constitution of Masdar City in the twelvemonth 2006 had brought a common platform for concerns and companies to boom and boom at the same clip provided high quality populating environment with the lowest hint of ecology ( Masdar: The Reality of Future Strategy ) .
With the foundation of Masdar Clean Technology Fund in 2006, Masdar Capital was established to supply capital direction expertness to the companies runing under renewable energy and clean engineering. Later, after a twosome of old ages Masdar Institute of Science & A ; Technology was established in the twelvemonth 2009 as a alumnus degree University, with particular accent on sustainable and clean engineerings. Besides, an add-on was made to the Masdar Capital as a DB Masdar Clean Tech Fund in the twelvemonth 2009. Masdar Carbon was besides established during this period for the direction of undertakings refering to cut down the C emanations with the assistance of energy efficiency and C dioxide recovery and cut downing waste of heat. Additionally, in order to construct a big portfolio of big graduated table renewable power energy workss globally, Masdar Power was established ( Masdar: The Reality of Future Strategy ) .
Thousands of visitants to the UAE are basking Hunt out organic and eco-friendly gifts and nutrient merchandises available at the Friday Market at Masdar City.
Masdar installs the First Rapid Charger in Middle East in order to function as a trial bed for green engineerings in coaction with Mitsubushi Heavy Industries Ltd.
Masdar will be served as a Lead Sponsor in the World Energy Forum 2012 that is to be held in at Dubai International Convention and Exhibition Center.
Masdar played a cardinal function in the international assemblage of the Sustainability hebdomad held in the Emirate of Abu Dhabi.
Masdar was awarded as the “ Energy Company of the Year ” during the stretch of first ceremonial of Gulf Business Industry Awards.
Masdar as a cardinal pillar of Abu Dhabi addressed the International Peace Institute that was kept to emphasize upon the significance of variegation of energy for accomplishing security and peace in the community ( Press Releases ) .
Vision and Mission Statement
“ Establish the Emirate of Abu Dhabi as one of the most first-class avenue of renewable energy development and clean engineerings to achieve a planetary benchmark for sustainable development and to do promotion in sustainable engineering and renewable energy with the assistance of instruction, R & A ; D, commercialisation and version ” ( About us ) .
Goals & A ; Aims:
Expansion in Export Base.
Encouragement of Public-Private Partnerships
Significant investing in instruction and research.
To supply preparation and educate workers in cognition based sectors.
To carry investing in countries of rational infrastructural additions.
To lend towards the growing of non oil sector portion of the Emirate ‘s economic system ( About us ) .
In order to accomplish a competitory border in the renewable energy and engineerings industry, Masdar has designed a model that stresses upon execution of cardinal schemes those are outlined below –
Corporate Degree Scheme:
Masdar is to a great extent dependent on perpendicular integrating for accomplishment of long term profitableness. Masdar has adopted the development of the web construction that is leting the echelons to replace the non-performing confederation spouses with those of new spouses who fails to run into the outlooks and criterions of Masdar. Besides, the elephantine works closely with the provider spouses with an purpose to cut down costs and increase merchandise quality. Masdar has resolutely begun the realignment of publicity to turn to the challenges of market and the direction steadfastly believes that this will ensue in the presentation and profitableness of the Masdar trade name in the UAE ( Masdar: The Reality of Future Strategy ) .
Business Level Strategy:
Masdar places a important accent on the merchandise distinction and invention and this is the cardinal ground in popularizing of its units across the Emirate of Abu Dhabi. In an attempt to accomplish 100 % zero waste and working with renewable engineerings, Masdar has adopted several concern related schemes. The Wind tower above the edifices helps in unswerving the ice chest upper degree air currents into the open-air. The designing of edifices underlies decrease in H2O ingestion through the usage of efficient contraptions, low-flow showers, smart H2O metres, existent clip monitoring for tracking H2O ingestion of consumer and besides for H2O harvest home and recycling ( Masdar: The Reality of Future Strategy ) .
Use of air conditioned electric powered Personal Rapid Transit Vehicles within the premises and campuses of the Masdar units. The Photovoltaic roof of the edifices, connected with the solar works contributes about 30 % of the electric burden of the edifices. The construction of the units has been inspired by the subject of the regional landscape and thereby a series of courtyard and street infinites have been constructing within the metropolis and the campus. These schemes encompass the overall placement and popularity of the Masdar in the market ( Masdar: The Reality of Future Strategy ) .
Functional Level Schemes:
The integrated supply concatenation and sustainable procurance is good supported through a rigorous procedure of appraisal along with a brief description about supplier contact information. The appraisal takes topographic point across 15 standards established to accomplish sustainability that includes energy and H2O economy, minimisation of waste usage of bio-based stuffs and recycled packaging. The operations are good carried out with an purpose to cut down C footmark finally ensue in lower operational costs. The attack of Sandbag edifice is used for logistics, staff adjustment and office constructions for accomplishing thermic efficiency ( Masdar: The Reality of Future Strategy ) .
Masdar purposes at accomplishing the undermentioned aims through its policies –
Expansion of the export base and in bend bring forthing increased gross for the emirate.
Boosting and promoting entrepreneurship in the private -sector as respects the bing industrial apparatus.
Making investings in the academic growing so as to excite the sense of invention among the future coevalss every bit good as developing and determining the heads of the people working in this sector soon.
Concentrating on the importance of workers in the cognition based sectors by exerting employee keeping, on occupation preparation, and supplying attractive inducements for the workers in this sector.
Foregrounding the importance of Intellectual Property in the emirate by promoting significant investing for accomplishing additions in this peculiar field.
Supplying growing and development chances in the non-oil sector of the emirate ‘s economic system and besides taking the consequence of fluctuations in oil monetary values on the economic system. The decoupling of this factor is of paramount importance as it would let for accomplishing economic stableness. ( About us )
No Availability of Bank Finance for Property in UAE.
No entree of Abu Dhabi ‘s Metro to Masdar.A
Board of Directors:
Masdar is chaired by Al Sayegh who has put in exceeding attempts towards the development of Abu Dhabi Future Energy Company and that is Masdar. All through his calling, he was worked towards several environmental enterprises. Sultan Al Jaber is the CEO and Managing Director of the company and with whose attempts Abu Dhabi ‘s pioneering renewable energy enterprise launched in the twelvemonth 2006. Other board members of the company are – HE Abdulla Nasser Al Suwaidi who is the main executive officer of ADNOC, Carlos Obeid, the main fiscal officer of the Mubadala Development Company and Waleed Al Muhairi, the main runing officer of Mubadala Development Company ( Board Members ) .
( Masdar: The Reality of Future Strategy )
External Environment Analysis:
Politico-Legal Factors ( Moderate Rating )
The Middle East has witnessed important growing and development over the past old ages which have chiefly been brought about by the enormous part of the oil sector in the several parts. This has resulted in the development of an industrially fertile hub which has attracted assorted transnational corporations, diplomatic dealingss and investings made by the authorities in the assorted enterprises. ( O ) . One of the most important challenges confronting this part is the being of political revolution in the Middle Eastern states which poses a menace to the economic prosperity and future chances of this part. There is a important possibility that these alterations can impact the results of the states in a negative mode, thereby impacting the full concern scenario in these parts.
The impact of the Emiratization policy may be seen in the Labor jurisprudence which requires private sector organisations to use 20 % of their work force from the domestic population obligatorily. This means that any private sector organisation which fails to adhere to the recruitment ordinances would be banned from set abouting any farther enlisting of extra foreign employees in their organisation ( T ) .
Economic Factors ( Moderate Rating )
The economic systems of the Middle East have witnessed a important rise in the past decennaries wherein they have been characterized with equal economic stableness and feasible growing rates which are inclusive of their increased GDP and Fiscal Balance. The UAE and other Middle Eastern parts have benefited from the lifting oil monetary values which have led to increased gross coevals for these economic systems, particularly foreign exchange gross and this has been the cardinal ground behind its immense development as witnessed up till now. Another factor which may be attributed to the sustained growing of the Middle Eastern states have been the outsourcing of concern from parts such as China and India which offer services at comparatively less costs.
Due to high dependence on the oil industry, the Middle Eastern Economies have been subjected to exposure owing to the frequent fluctuations being witnessed in the monetary values of oil and gas trade goods ( T ) . One of the most relevant illustrations of this status may be witnessed in the economic growing statistics of Abu Dhabi which was reported to be 2.9 % owing to the impact of depreciated oil monetary values evident on a planetary graduated table. This evaluation was significantly lower in comparing with the evaluations of the past old ages. However the twelvemonth 2010-2011 witnessed the recovery of the economic system from the effects of the monetary value depreciations with the new conditions characterized by monetary value stabilisations of oil trade goods. In visible radiation of this stabilisation, , the primary drive force behind the regional GDP was the outgo and investing made by the authorities for heightening its bing sectors.
UAE had started concentrating its attempts towards the development of its non-oil sectors in order to cut down the inordinate dependence from its oil sector. The result of these attempts was the booming of the existent estate sector and the buildings industry which received important undertakings such as Abu Dhabi Ferrari Theme Park, Burj-al-Arab, Emirates Palace and the extremely celebrated Palm Jumeriah Islands. This led to the growing and development of the Ecological substructure development companies in the UAE due to the positive results provided by the buildings industry in the part ( O ) .
The Middle Eastern authoritiess have given due accent on the infrastructural developments in their several parts. Assorted planetary events that have occurred in the part have been witnessed with the coming of investings for the development of the substructure in order to guarantee its conformity with the planetary criterions in footings of infrastructural capablenesss. An illustration of this may be seen in the hosting of the Asiatic Games and the forthcoming Football World Cup in 2022 which would be hosted in Qatar. In response to the incidence of these events, the Qatari authorities has made investings of values up to one million millions of dollars for originating the structural developments. In maintaining with the demand to adhere to green enterprises as promoted by the Middle Eastern states, Masdar has shifted its attempts towards the development of such resources that aim at conserving energy and guaranting maximal use of resource while cut downing negative effects on the environment. With its enterprises such as Masdar Power and Masdar metropolis, the public organisation is seeking to set up a sustainable substructure in the UAE ( O ) .
Socio-cultural ( Low Rating )
UAE is a prevailing Muslim Nation and has non been significantly affected by the being of assorted foreign subjects in the state. The development of the state is the most important facet being given importance by the authorities presently and in visible radiation of the demand to maximise the optimum use of the resources, the people are being encouraged to utilize reclaimable and environmental friendly merchandises by agencies of which the inordinate development of resources may be avoided ( O ) .
The attachment to green enterprises and patterns besides relieves important dependence from the traditional fuel beginnings for the achievement of assorted undertakings. In footings of the costs saved from the energy conserved by the acceptance of green patterns, the value of considerable sum which can be invested in other extremely prospective and feasible countries ( O ) .
The attachment of green patterns besides provides important benefits to the wellness of the people wherein the usage of environment friendly merchandises eliminates the possibility of the release of contaminations into the ambiance or the release of pollutants into the H2O or land which could finally impact the birthrate of the resources and in bend impacting the lives of the people. Hence the attempts of Masdar towards the development of sustainable and green engineerings are non merely in conformity with the involvements of the people but are besides fulfilling a societal cause. Such conditions besides showcase a commercially feasible chance for Masdar ( O ) .
Technological ( Moderate Rating )
The UAE is known for its advanced technological substructure and the presence of high degree proficient support constructions by agencies of which it has been able to keep the highest efficiency degrees on a planetary graduated table. It is besides credited with holding one of the most advanced ICT web and substructure in the UAE which has made the nutriment of assorted organisations in its economic system. The presence of such installations has enabled the research and development of renewable and sustainable beginnings which is extremely effectual in guaranting that the activities of Masdar are achieved as per the outlooks. ( O )
The presence of the cyberspace has enabled a larger population to avail the information about the assorted services and merchandises offered by Masdar and the people can besides remain updated with the recent developments being done by the organisation. In footings of the proviso of electricity, the people can track their ingestion on a periodic footing and can see the extent to which the energy has been conserved by them. Such possibilities hold enormous chances for Masdar ( O ) .
The frequent promotions being witnessed in the field of technological developments have resulted in the hazard being generated for the concern organisations as it is hard to accommodate to these alterations. If frequent version to these alterations would be done so the effectivity of the system would be compromised which would finally hold an impact on the public presentation of the organisation ( T ) .
Five Forces Model Diagram
Menace of New Entrants ( Rating: Low )
There is minimum menace from new entrants as Masdar being a UAE authorities enterprise, it has been provided with all the needed resources for guaranting the research and development of sustainable engineerings and the possibility of new entrants in this field are extremely improbable ( O ) .
Dickering Power of Buyers ( Rating: low )
In visible radiation of the recent recession and economic rising prices, the presence of sustainable engineerings would non merely supply the benefits of decreased costs of operations but would besides assist to maximise the use of the resources, thereby cut downing investings made in the acquisition of extra resources. This is a preferable result for the people and hence the bargaining power of purchasers is low. Even in the instance of Masdar University, the establishment provides sole classs aimed at the conductivity of research in the field of renewable energy development. This besides consequences in the lowering of the purchaser ‘s bargaining power ( O ) .
Menace of Substitute Products or Services ( Rating: High )
Other states are besides working towards the accomplishment of renewable and sustainable engineerings in maintaining with the demand to conserve the environment. This has led to the being of the menace of replacements which are non merely inexpensive in comparing to the merchandises or services being provided by Masdar but besides affect the overall market portion held by the organisation ( T ) .
Dickering power of Suppliers ( Rating: Moderate )
The supply concatenation for Masdar is inclusive of believable providers that have a strong base for supplying the proficient every bit good as non proficient resources for the development and completion of the assorted enterprises undertaken by the authorities ( O ) . However the field of sustainable concern engineerings requires specialised resources to be provided for the physical development of the engineerings and tools and this facet provides a greater dickering power to the providers ( T ) .
Rivalry among viing houses ( Rating: Reasonably High )
In footings of the presence of rivals for energy related services, Masdar is faced with assorted domestic houses. This competition is besides apparent in the field of instruction where institutes like Zayed University, ADU, etc offer professional classs ( T ) . Foreign academic establishments besides offer important chances for pupils to partake their classs and this poses as a important menace for the organisation ( T ) . However the presence of extremely specialised classs aimed at sustainable engineerings could turn out as an inducement to pupils who wish to set about preparation in an approaching field of research and development ( O ) .
Five Forces Analysis:
Five Force Analysis – Industry Environment
Extent of Influence from Rivals
Dickering Power of Customers
Owing to the presence of individual entity supplying highest quality of life.
Dickering Power of Suppliers
As there is a exchanging cost associated.
Menace from Substitutes
Oil, gas and atomic
Summary of External Factors – EFAS Matrix
Scope for Expansion in Abu Dhabi ( High )
Increasing Profile of Abu Dhabi and 2010 – 2020 is considered as Abu Dhabi ‘s decennary.
Openings to work new engineerings ( Moderate )
UAE takes a place on International Atomic Energy Agency and climatic alteration
Pulling of market portion from challengers ( Low )
Based on clean and green engineering
Environmental Dependency ( High )
Highly depend upon solar energy and clime alteration.
Market Growth ( Moderate )
Abu Dhabi has invested a great trade in reinventing itself, with its programs to turn its GDP to $ 416 billion.
Decline of Demand ( Low )
Increasing consciousness of public action and understanding towards green enterprises.
Menace from Substitutes ( High )
Huge investing in substructure undertakings.
Internal Environment Analysis
Masdar is a public sector corporate entity established in Abu Dhabi, UAE for working towards the development in renewable and alternate energy beginnings and originating inventions in sustainable engineering. Since its origin in 2006, Masdar has diversified into 5 incorporate and functional units which are inclusive of a non-profit-making research institute promoting the conductivity of research on alternate energy and sustainable engineering. It is a entirely owned subordinate of Mubadala Development Company, formed by the Government of Abu Dhabi. Masdar is one of the first-class planetary centres in footings of renewable energy and clean engineering. The organisation aims to widen into the hereafter of UAE ‘s current leading in the energy sector by incorporating the undermentioned cardinal factors:
Invention with investing
Masdar operates under the flagship of Mubadala Development Company with Ahmed Al Sayegh as the Chairman of the organisation. This company is a direct contemplation of the vision of UAE ‘s initiation male parent, Sheikh Zayed bin Sultan Al Nahyan and has carried on his dedication towards preservation and sustainable development of the part. The Emirati authorities has committed a amount of USD 15 Billion to the Masdar Project wherein it would fund its enterprises. This has proven to be one of the most important strengths of the company as it has a steady supply of financess for its ventures ( S ) .
Another strength of the company may be attributed to the presence of a stable direction which may be attributed to the stable Emirati authorities and due to this the regulating organic structure and the cardinal members are non replaced often ( S ) .
The strategic theoretical account for this concern is basically entrepreneurial in nature wherein the leading of its president and board of managers are important for supplying the needed directives to the 5 diversified units of the organisation ( W ) . Since its origin, it has shown important attachment to the vision of the establishing male parent every bit good as to the cardinal aims of UAE ( S ) .
However for each independent entity of the organisation, there is a separate managerial organic structure present to supervise the activities of the unit and guaranting that they are in conformity with the strategic purposes of the parent organisation ( S )
. Finding a roadmap to sustainability is the nucleus value of the long term vision of Masdar and the sustainability model is designed to incorporate economic and societal and environmental considerations into Masdar ‘s corporate civilization and scheme. All of the enterprises and attempts of the organisation are dedicated to the accomplishment of sustainability in the UAE by agencies of which the vision of the establishing male parent of the state may be fulfilled in an effectual mode ( S ) . The diversified units enable the organisation to efficaciously concentrate its attempts and resources in the development of specific facets which is extremely good in implementing and inventing advanced steps to follow sustainable patterns and tools ( S ) .
Masdar is the prime organisation in the UAE which is wholly dedicated towards the development, research and execution of sustainable engineerings ( S ) . By advancing itself as a supplier of sustainable engineering, it has appealed to the people of the UAE who have begun concentrating on the execution and acceptance of green patterns so as to lend towards ecological nutriment and environmental protection ( S ) . In the procedure of developing such sustainable tools, the organisation has ensured the care of high quality degrees which has resulted in the accomplishment of effectual and timely consequences ( S ) .
Masdar does non hold a specific merchandise offering in the market it does offer educational plans, green substructures and undertaking developments in conformity with sustainable engineerings. In this respect, the following selling mix may be applicable for the organisation:
Product / Service ( High Rating ) :
Masdar has been involved in assorted sustainable developments such as the development of Masdar metropolis which is one of the first metropoliss to be made with an purpose of accomplishing 0 % C emanation. Another service of Masdar is the proviso of instruction in the field of sustainable research at a no-profit footing. It is besides involved in the coevals of investing in the assorted sectors associated with sustainable development.
Price ( Rating High ) :
The chief purpose of Masdar is to supply sustainable engineerings and support constructions by extinguishing the presence of inordinate costs associated with the services ( S ) . The illustration of Masdar institute clearly highlights the purpose of the company as it is supplying the services to the people at no net incomes. Masdar being a authorities enterprise of the Mubadala Development Company does non hold a desperate demand for bring forthing net incomes as the economic system possesses equal fiscal resources due to the efficiency of its oil sectors. Hence the pricing of the services / merchandises of Masdar are extremely convenient to the consumers ( S ) .
Topographic point ( Moderate Rating ) :
The central office of Masdar is in Abu Dhabi with other units of the organisation located in Abu Dhabi every bit good. Masdar has entered into assorted coactions and strategic confederations with planetary entities and this has enabled it to widen its range to planetary consumers. Peoples on a planetary graduated table are now being made aware of the attempts of Masdar due to its attempts for promoting the acceptance of sustainable engineerings and substructure ( S ) . This besides allows it to acquire involved in international undertakings or ventures without holding the demand to set up any subordinates in those locations ( S ) .
Promotion ( Moderate Rating ) :
News articles such as Khaleej Times, Gulf News, National, Gulf Today, Al Itihaad and Al Khaleej form the most popular method for publicity of the assorted activities undertaken by the organisation ( S ) . Assorted other scientific publications besides promote the organisation. The most important method among these is the web site of Masdar which provides a comprehensive coverage of the assorted facets of Masdar ( S ) .
The followers is the overview of the fiscal statements of Masdar for the twelvemonth 2011. It reflects the corporate fiscal overview of
The gross of the organisation has increased by 77 % from AED 15.8 billion in 2010 to AED 27.9 billion in 2011. This growing was chiefly due to the consolidation of the Advanced Technology Investment Company ( ATIC ) . The growing was besides sustained by high energy monetary values witnessed in 2011.
The entire assets of the company increased by 73 % from AED 102 billion in 2010 to AED 177 billion in 2011. This was besides the result of the consolidation of the Advanced Technology Investment Company ( ATIC ) and an addition in the assets of the organisation in footings of capital, investings, substructure developments and knowledge direction.
The operating income increased to AED 1.2 billion in 2011 from AED 2.6 billion in 2010 which was reflective of the extra investings made in semiconducting material engineering and this was besides inclusive of outgo made on R & A ; D.
The Total comprehensive income attributable to the proprietor of the Group witnessed a important loss of AED 4.2 billion in comparing to a loss of AED 338 million in 2010. This was brought approximately by the negative fluctuations which were seen in the just market value of Masdar ‘s investings.
The entire equity increased from AED 62 billion in 2010 to AED 106 billion bespeaking an addition of 71 % . This reflects the committedness of the organisation towards its stockholders and its concern aims. The increased equity was made possible due to the consolidation of the Advanced Technology Investment Company ( ATIC ) and extra parts that were made in hard currency.
The debt to capitalization ratio of Masdar remained at prudent degrees wherein a little lessening was seen from 30.2 % to 29.6 % .
The debt to equity ratio of Masdar besides showed a diminution from 43.4 % to 42.0 % .
There was an addition in the sum liabilities which resulted in a value of AED 71 billion in 2011. This was besides the result of the consolidation of the Advanced Technology Investment Company ( ATIC ) and the issue of bonds by Mubadala.
Masdar achieved a recognition evaluation of [ Aa3/AA/AA ] by Moody ‘s, S & A ; P and Fitch ( Mubadala Development Company PJSC, 2011 ) .
Operationss and Logistics ( Rate: Moderate )
Masdar has entered into confederations with major corporate entities particularly in the energy sector of the UAE by agencies of which it is able to get the needed beginnings and is besides able to carry on research and development in an effectual mode. The organisations operational attempts are diversified into 5 watercourses in conformity with the several units established under it.
Masdar institute forms a important portion of its attempts to develop the cognition economic system of Abu Dhabi and in bend the UAE. By making so it aims of supplying solutions to the toughest challenges faced by Humanity today. The operations of this unit would be undertaken by the authorities and a staff of extremely qualified persons.
Masdar Capital provides capital and direction expertness to assorted portfolio companies by agencies of which they are provided with an chance to scale up. The investings are made via two financess, viz. :
The Masdar Clean Technology Fund ( MCTF ) , launched in 2006 in concurrence with spouses Consensus Business Group, Credit Suisse and Siemens AG.
The DB Masdar Clean Tech Fund ( DBMCTF ) , launched in 2009 jointly managed by Deutche Bank and Masdar.
Both of these financess follow an active direction investing scheme with the targeted investing determined at USD 15 – 35 1000000s ( s ) .
Masdar Power ‘s operations are chiefly declarative of joint ventures with international offshore and onshore undertakings undertaken by companies such as Abengoa Solar and Tota where Masdar Power makes direct investings ( S ) .
Masdar Carbon has entered into a strategic confederation with E.ON Carbon sourcing for puting in C suspension undertakings in Africa, the Middle East, and Central and Southeast Asia.
Masdar City is an upcoming green economic bunch which would house the latest promotions in sustainable engineering and would besides supply infinite for 40,000 occupants with province of the art green substructure.
Human Resources Management ( HRM ) ( Rate: Moderate )
Masdar ‘s direction is overseen by the authorities and therefore the proviso of HRM is done in an effectual mode wherein preparation and development plans are provided non merely to the employees but besides to the pupils who are enrolled in Masdar Institute of Science and Technology. These workshops and development plans are entirely focused on the proviso of current information in sustainable engineering development and patterns.
The organisation besides has been reported of taking squads consisting of pupils to go to workshops in international parts which would non merely supply them with a varied perceptual experience on the determined countries of preparation. This brings to illume the fact that Masdar takes attempts to guarantee that the demands of the employees are identified and analyzed so that the current alterations in the environment may be incorporated into the preparation designs.
The employees at Masdar are provided assorted inducements as applicable under the labour jurisprudence of the UAE and are provided with safe and productive work environments so as to guarantee maximal efficiency and end product degrees.
Information Technology ( Rating: High )
Information Technology is one of the most important strengths of Masdar and the presence of such a extremely advanced proficient substructure has proven to be the biggest purchase to the organisation ( S ) . The presence of an independent research institute has besides enabled the organisation to possess the needed substructure by agencies of which it can place and develop new engineerings for implementing advanced engineerings ( s ) .
Adequate steps are adopted for guaranting that the systems implemented in the organisation are upgraded in conformity with the current scenario in the market. Not merely does it keep effectual communicating among its ain organisational units, but the IT web in Masdar has enabled it to organize with other domestic every bit good as international organisations. This provides it with greater chances for remaining updated and besides obtaining information about any environmental alterations good in progress ( S ) .
However the frequent developments in the state ‘s ICT sector mean that Masdar has to constantly implement alterations in its IT system so as to be able to follow with the ascents and this non merely incurs extra disbursals but besides incurs cost in footings of preparation of the employees for runing the upgraded system ( W ) .
Summary of Internal Factors – IFAS Matrix
Powerful Corporate Strategy ( Moderate )
Forward Thinking Strategies, open uping in new constructs and engineerings.
Capable Management Team ( Moderate )
Masdar enjoys support and committedness of the all degrees that underlies the vision of UAE ‘s Establishing Father.
Strong Financial Base ( High )
Market capitalisation of $ 250 million.
Brand Name ( Moderate )
Recognition Rating from S & A ; P – Aa3/AA/AA since 2008.
Product Innovation Skills ( High )
Awarded as the “ Company of the Year ” owing to its advanced thoughts.
Research & A ; Development ( High )
Extensive R & A ; D through Masdar Institute
No Clear Strategic Direction ( Low )
Collaboratively working on the believes of Establishing Father of the UAE – Sheikh Zayed bin Sultan Al Nahyan.
Poor Marketing Skills ( Low )
Bing established in the capital territory of the state, the undertaking has got enormous attraction.
Narrowness of Product Line ( Low )
Concentrating merely in Solar energy instead than different types of renewable energy.
The undermentioned SFAS matrix highlights a combination of external and internal factors that have been identified for Masdar. This matrix would supply a comprehensive overview of the strategic model of the organisation.
Openings to work new engineerings
( O )
UAE takes a place on International Atomic Energy Agency and climatic alteration
( T )
Highly depend upon solar energy and clime alteration
Menace from Substitutes
( T )
Huge investing in substructure undertakings.
Strong Brand Name
( S )
Recognition Rating from S & A ; P – Aa3/AA/AA since 2008
Capable Management Team
( S )
Masdar enjoys support and committedness of the echelons underlies the vision of UAE ‘s Establishing Father.
Narrowness of Product Line
( W )
Masdar has spread its custodies and diversified itself in about all of the major sectors of the Emirate
On acquiring engaged in strategic planning with a high grade of edification, the TOWS matrix provides a conceptual model that combines the external factors and other internal factors variables. The TOWS matrix is farther helpful in developing schemes and activities based on the footfalls of the strategic way for the attainment of aims and mission of the Masdar. The TOWS Matrix of Masdar is outlined below –
Strengths ( S )
-S1. Powerful Corporate Scheme
-S2. Capable Management Team
S3. Strong Financial Base
S4. Brand Name
S5. Product Innovation
S6. Research & A ; Development
Failings ( W )
-W1. No Clear Strategic Direction
-W2. Poor Marketing Skills
-W3. Narrowness of Product Line
Opportunities ( O )
O1. Scope for Expansion in Abu Dhabi
-O2. Pulling of market portion from challengers
O3. Openings to work new engineerings
– Market leader in green and clean undertakings ( S3-O2 )
– Advantage can be taken from emerging markets of the UAE ( S1-O1 )
Redefining of direction duties ( W1-O3 )
Adopting long term partnerships for research and development ( W2-O1 & A ; O2 )
Menaces ( T )
-T1. Environmental Dependence
-T2. Market Growth
-T3. Menace from Substitutes
-T4. Decline of Demand
Spread caputs to other major sectors such as cordial reception. sector ( S1-T4 )
Entering public – private partnerships. ( S4-T3 & A ; T2 )
Promotion of clean engineering to extenuate climatic alterations. ( W3-T1 )
Diversification due to Geopolitical tensenesss. ( W3-T3 )
Reviewed Vision & A ; Mission:
The mission and vision of Masdar will be reviewed with an purpose to excel all others in the industry and hence Masdar will concentrate its committedness to do sound determination in respects to the environment, resources and engineerings. The mission and vision will be revised as –
“ To supply a competitory border to further the best possible public presentation and to bask the popularity recognized all over the universe ” .
Reviewed Goals & A ; Aims:
The followers will be the reviewed as the long term corporate ends and aims for the Masdar –
“ Promote the usage of green and clean engineering and renewable energy for the sweetening of UAE ‘s fight in the planetary sphere ” .
Besides, to increase the income by the terminal of the financial twelvemonth in order to accomplish long term aims and improved returns on equity.
Corporate Degree Schemes:
Masdar can follow the complete structured attack to choose a expansive and corporate scheme out of the above recommended aims. With the comprehensive energy scheme that is based on a diverse mix is surely is the anchor of sustainable economic system. On understanding of long term strategic partnership, Masdar will set into operation the advanced power grid coupled with the advanced edifice engineerings in the stages of building for Masdar. This will be functioning as an effectual energy use solution for Masdar and will besides move as a life research and development platform for the company. The coaction and partnership can be besides taken on the field of C gaining control and storage that besides requires the demand of inexplicit research in the field served by the scheme of partnerships. This will surely ensue in the outgrowth of groundbreaking undertakings for the society on the rule of clean tech enterprise.
Business Level Schemes:
The recommendation for the Masdar is to go on its accent in the country of distinction that has built the Masdar rise above others in the market and industry as a whole. As, Masdar is known for the usage of renewable energy driven engineerings, the focal point should stay to keep a narrow niche that will enable the elephantine to capture the challenging demands and wants of the consumer. Masdar will besides concentrate on doing a strong attempt in the accomplishment of monetary value leading by come ining and viing with the markets of replacements and finally to capture even a high clasp on the market portion.
Functional Level Schemes
The operational or functional degree recommended schemes for Masdar will set strong accent on the extended market research, in order to analyze the booming and of all time altering demands of the market and consumers and behavior focal point groups in the Emirate of Abu Dhabi to acquire feedback on the bing engineerings and enterprises. The functional degree schemes besides lay accent on come ining into industrial experts to maximise efficiency on operations. The Nipponese authorities has taken the enterprise of constructing eco metropolis as an attempt to back up the Gulf states that can be utilized by the Masdar as an advanced engineering. Thereby, energy direction systems and are required to be developed at operational degree that will take to the indispensable success of Masdar in the Emirate every bit good as in the full part. With an purpose to cut down stock list at all degrees, Masdar ought to work even near with the providers to follow the following degree coevals of engineering refering to electronic informations exchange with an purpose to accomplish just-in-time stock list.
The reviewed strategic model will surely tag a major sweetening in present image and constructing a corporate icon for the company. The chief aim for Masdar with the amplification and execution of the Long Term Strategic Partnership is to make a feasible web of clean engineering and renewable energy units that will farther specify the anchor of the Abu Dhabi. The scheme execution will take topographic point in the undermentioned mode –
Integrating Management Practices
Establishing Partnering on Technology
Optimizing Economic Aspects for promotion of cognition economic system in the UAE
Constitution of major relationship of Investing
Strategy Evaluation & A ; Control:
Minimizing Hazards by using mold and simulation techniques and doing usage of tested and tried tools to the specific demands.
Control and Monitoring of Budgets by analysing return on investing.
Conducting societal cost-benefit analysis to find and mensurate Social public presentation.