History of Business
A Business is essentially an organization that divulges in producing goods and providing services for making money. The concept of business is derived from the roots of trade and commerce which date back to the days of barter system but business in its true form emerged before more than a thousand years (BBC, 2014). It developed to become a corporate entity in the era of world wars and industrial revolution when large scale factories developed which involved help of a huge number of workers and managers emerged which took charge of a myriad of activities. This is the time when entrepreneurs came into existence.
During industrialization, the approach of Laissez Faire came into existence which recommended that governments should let businesses manage their own functions independently in order for them to succeed. Production era also emerged during the time of world war when there was heavy emphasis on the production aspect as during war, weapons and machinery had to be made as soon as possible for it to stay relevant (Amatori & Jones, 2003). The marketing era came after the great depression in the United States and businesses finally began to analyze the needs of the customer before even starting production of a product. The global era emerged after the innovation of communication technology which further led the businesses to an era of the internet (Horn, 2007).
Analysis of Business Environment
National Bank of Abu Dhabi
National Bank of Abu Dhabi (NBAD) is one of the successful and leading banks of UAE which has been globally acclaimed for safety in investment. It is one of the banks that has adopted Islamic Banking standards and follows sharia law in banking (NBAD, 2015). This unique approach has proved successful for NBAD and other financial entities are taking account of NBAD’s actions. In order to analyze NBAD regarding business factors it is critical to observe the environmental factors and how they impact NBAD. The factors under which are under consideration for analysis are political, economic, sociocultural and technological factors.
The political environment of UAE is stable and favorable for financial businesses which why they have thrived and succeeded as a sector in UAE. Rules and regulations do change but there have not been major changes which affect this sector since the global financial crisis. The policies of the country also play a lead role in this scenario as foreign businesses trying to invest in UAE will be affected by the policy changes.
The economic outlook of UAE has been positive and shows signs of extensive development in the future pertaining to the ongoing projects of Vision 2020 which will keep the economy booming. Regarding economic growth, the GDP growth of UAE took a massive hit during the crisis but it has been successful in fending it off through investment in sustainable energy sectors and relying on tourism and other sectors for its GDP rather than having an oil-centric approach which it had in the past (Bank Audi Group, 2015).
Socio Cultural Factors
Considering the factor of religion, the 96% population of UAE is Muslim and any business with financial services has to keep in mind that according to Islam, charging interests on financial services is prohibited. Fortunately for NBAD, they provide Islamic Banking services. There is also another factor that this population just takes into accounts its citizens and not expatriates.
There are two major telecom companies in UAE providing internet services which helps business provide internet oriented features. For banking sector, internet and mobile banking are becoming a necessary function,
Emirates Airlines is one of the leading Airlines companies on a global level as well as in UAE. It is owned by the Dubai Government. Emirates has been growing exponentially by offering consistent quality and world class services. Being a globally competent company makes Emirates a huge organization that has to take into account a wide range of factors (Nataraja & Al-Aali, 2011).
Being an international airline company, it has to take into account the rules and regulations of many countries in which it provides services. The political scenarios in countries can change at times due to security issues which may hamper the business of Emirates.
The Arab states are becoming highly developed in terms of economic development which brings sophistication in many aspects. Dubai government has been negotiating with other government for economic cooperation and has created free trade zones which enhance the economic development of UAE as well as Dubai as an emirate (Bank Audi Group, 2015).
Issues related to personnel and customer service highly affect the airline businesses at a global level. The working area of Emirates has a high level of cultural diversity which reflects in its crew. Emirates pays its employees by utilizing 10% of their operating expense which is the same method followed by Dubai government but the factor to be taken into account is that in other countries, employees are paid using 40% of the operating expenses which can cause problems someday.
Emirates Airlines has been utilizing modern technology in its aircrafts, in-flight services as well as in facilities which are provided on the airport. Emirates has also employed a technology which manages a segment inventory which utilizes has geographic region data to optimize service.
Amatori, F., & Jones, G. (2003). Business History around the world. Cambridge: Cambridge University Press.
Bank Audi Group. (2015). UAE Economic Report. Dubai: Bank Audi Group.
BBC. (2014). What is a business? Retrieved from www.bbc.co.uk: http://www.bbc.co.uk/schools/gcsebitesize/business/aims/aimsandactivitiesrev1.shtml
Horn, J. (2007). The Industrial Revolution: Milestones in Business History. Westport: Greenwood Press.
Nataraja, S., & Al-Aali, A. (2011). The exceptional performance strategies of Emirate Airlines. Competitiveness Review, 471-486.
NBAD. (2015, 5 12). Home Page. Retrieved from www.nbad.com: http://www.nbad.com/en-ae/personal-banking.html