Table of content
Property Development Industry in UAE
SWOT Analysis of EMAAR Property
The research would involve inquiry about the influence of quality management on the performance of work at EMAAR, UAE, in relation to the standards of the property it develops and the quality of management services it offers. The research would seek to establish aspects of quality management in the company, and the effectiveness of the management services offered and how to improve the standards of the property developed and the management services.
Property Development Industry in UAE
The Property development industry in the UAE is a rather congested one with more and more companies entering the market and thus making it more competitive than before (Vignal, 2016). The rise in the number of players in the industry is attributed the increase in demand for houses by the ever growing population whose economic growth is also in a rise.
This has lead to more firms entering the already flooded market to develop property that would suit the various needs of the population within UAE (Jansen, 2016). The companies develop both residential and commercial property and to edge each other, there is a massive combination of innovative strategies that include technological advancement in the properties they develop, as well as improving the customer services standards to ensure they remain more competitive in relation to the other players in the market.
The rise in the number of players are one of the reasons for the decline in the property prices that has been witnesses in the recent times, following the unsustainable surge in the market (Engel, 2016). By May 2016 for example, the residential property price index, that is RPPI in Dubai fell by 5.35% and there was a further fall when the figure is adjusted for inflation as it goes as high as 6.86% (Caia, 2016).
The prices for sale of apartments went down by 5.15 % in the cause of the year to the point of May 2016, and this explains the state at which the property development industry is at in the UAE, and further confirms the need for swift actions to be taken in order to change the trend.
The pricing challenges experienced in the property development industry in UAE can be attributed to different factors such as the ever strengthening dollar which hit the purchasing power of overseas investors from countries that are not dominated by United States (Dept, 2015). Another aspect that can be attributed to the changes is that lower oil prices might have cut the purchasing power of investors from nearby oil-producing nations, but most importantly, the quality management of the various factors in the industry is critical to its development.
EMAAR Properties is a real estate development company located in the UAE; t is a public joint stock company that is listed is listed in the Dubai Financial Market as DFM: EMAAR, and the company operates internationally providing property development and management services to different clients (Dawawala, 2009).
SWOT Analysis of EMAAR Property
SWOT analysis refers to situation analysis carried out to establish the strengths of an organization, its weaknesses, opportunities that it has to explore, and the threats that it faces in a bid to further its operations (Gao & Peng, 2011). Strengths and weaknesses are internal factors that the company has control over such as internal processes, customer base, financial position, and the nature of its products (Friesner, 2011).
Opportunities and threats refers to external factors that are outside the control of the organization and the organization can only seek to adjust to them in order to remain relevant in the market such as technological factors, political and legal factors, industry aspects, and environmental factors that affect business enterprises but the business has no direct control over (Hollensen, 2015).
EMAAR has a number of strengths that it can explore such as its location in Dubai which is considered one of the best destinations for property development and its strong global presence as it operates across thirty six different countries (Kadhim & Al-Akiely, 2015). However, the company also has a number of weaknesses that are a detriment to its further growth and if not critically looked at, may impede on its development that has continued to rise over time.
One of the weaknesses is the vulnerability to risks of various local economies, owing to the fact that it operates in other countries that have differing economic conditions and that exposes it to share such risks that rise from the economies that it operates in (Youssef & Taibah, 2011). Some of the risks the company is exposed to is fluctuation in prices in different economies due to changes in government policies, stiff competition from local industries and possible lack of operational efficiency due to political instability in those countries.
Another weakness of the company that may tumble its normal operation and growth is its new limits on loan that are likely to reduce the demand for the property that it makes available to its customers and the attached operational flexibility. Other weaknesses is its overexposure to Dubai due to the overseas venture, and the operations and funding strategy that it assumes which depends on funding from the parent company thus limiting the efficiency among its branches, and the labor problems as well as quality issues that the company faces().
The research will seek to determine the existence of application of quality management strategies and techniques at EMAAR Properties and the management services and techniques the company applies to ensure it comes up with quality property for its customers.
- To identify existence of quality management strategies and techniques in relation to property development
- To study and recommend best management strategies to enhance property development by EMAAR Property
The study would adopt a descriptive survey design to explore the existence of quality management strategies and techniques, descriptive survey research design would be used in the preliminary and exploratory study to allow the researcher gather information, summarize, present and interpret for purposes of coming up with conclusions and recommendations.
Three CLO’s that are related to the project are CLO5, CLO1, and CLO 2 since they all focus on the use of quality management to improve organizational performance. CLO 5 diagnoses the use quality management approaches to improve organizational performance, CLO1 analyzes the relationship between total quality management and strategic management, while CLO 2 critiques the applicability of quality theories and philosophies in an organization. The relevant subjects include international quality management system, quality management tools, and ISO standards and Excellence.
As described above, the study would analyze the industry in which EMAAR Property operates; look at the aspects of its operation, the competitive nature, and the general operation of the industry. The study would implement descriptive survey design to establish the facts in the company and exhaust the situation analysis of the company by carrying out a SWOT analysis to establish the strengths, weaknesses, opportunities and threats that the company is exposed to.
References
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Dept. (2015). Qatar. Washington: International Monetary Fund
Engel, R. (2016). And then all hell broke loose : two decades in the Middle East. New York, N.Y: Simon & Schuster.
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Gao, C. Y., & Peng, D. H. (2011). Consolidating SWOT analysis with nonhomogeneous uncertain preference information. Knowledge-Based Systems, 24(6), 796-808.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
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Youssef, K. A., & Taibah, A. A. (2011). Knowledge cities through ‘open design studio’educational projects: the case study of Jeddah City.International Journal of Knowledge-Based Development, 2(3), 295-315.