LEADERSHIP AND CAPABILITY FRAMEWORK 10
Running head: LEADERSHIP AND CAPABILITY FRAMEWORK 1
LEADERSHIP AND CAPABILITY FRAMEWORK 10
Leadership Capability Framework
Leadership Capability Framework
Etisalat operates as a telecommunication group company in Dubai. The communication company started as a joint venture company between a British company and a local partner in 1976. The company’s ownership changed seven years after its incorporation into a public corporation with the government of the United Arabs Emirates owning about 60% of the company’s shares while 40% were traded to the public (emirates telecommunication n.d). Being a public company, Etisalat was granted priority licensing to offer telecommunication services in the country and beyond the UAE borders. The company also had the rights to license, own and import any telecommunication equipment. Etisalat was overprotected by the government to outdo Telecom the giant communication service provider in the country. The headquarters of Etisalat Communication Company is located in Abu Dubai. Some of the telecommunication services provided by the company include 3G and 4G internet access, Broad internet services, and dial-up internet services. The company operates izones in malls, restaurants and cafes.
LITERATURE REVIEW MISSING
BUSINESS MODEL – how the business generates revenues/profit products and services the business offers and how they do so
ETISALAT BUSINESS MODEL
The company’s business model is based on meeting the business needs and of its customers’ expectations using continued investment in their networks for wider coverage, greater capacity and increased capacity and proffer innovative services. The aspiration of the company is to be the best and also most admired telecom market group. The success of the business model is achieved by the company’s strategic pillar and a good balances assets portfolio.
BUSINESS STRATEGY – competitive moves and actions that businesses use to attract customers and compete successfully, how they enhance their performance and achieve organizational goals
Etisalat Organizational Structure & Framework
Key People in Etisalat
The chairman of Etisalat is Eissa AlSuwaidi who is also a member of the finance committee. The vice chairman assists the chairman in executing his functions. Etisalat is headed by CEO who is also appointed by directors. From the organizational framework above, the company has a big structure such that every department under a single director is large enough to be run like a separate and independent entity. Each department has a couple of sub-departments thus imaging the size of the company’s framework. The size and the structure of the company indicate the task force for the company. The tasks of the company under every department can be divided into some sub-tasks. The framework above only reflects the operations within the UAE border. Under the international context, the company’s structure is expected to expand considering the scale of its operations in the global market and UAE.
Decisions in the company are made in a hierarchical structure. Nevertheless, departments within the organization are independent, and the nature of tasks within each department are different but dependent on the activities of those other departments. Efficiency is the parasol of the company’s operations and is defined by the simplicity of the organization’s structure. At a closer glance at the flow chart above, one can deduce that the company has a well-established structure. The structure also looks flexible considering the autonomy given to each department. Tasks are well executed where each director and his department are responsible for setting the objectives and functions.
Etisalat Organizational Culture
United Arabs Emirates culture is full of diversity. Like the UAE, Etisalat organizational culture is full of diversity in the workforce. The variety in the company’s employees has been dictated by the services that the company provides. Communication serviced do not belong to a specific class of people or expatriates within a particular locality. The target customers are all over the world since the services have universal acceptability. Their services are provided in different languages that can be decoded by users across cultural diversities. The company also operates across the national borders thus needs to preserve the cultural identity of the customers and employees.
PESTLE Analysis of Etisalat
No business operates in a vacuum. Michael Porter, Harvard professor developed five frameworks to analyses environment surrounding business activities. The five forces revolve around the competitive advantage of a business. In the case of Etisalat, the forces can be analyzed under the political, economic, social, technological, environmental and legal framework.
Since its inception, the company has been receiving enormous support from the government. In 1993, Etisalat was given exclusive rights to license the activities of any communication company in the country as well as imports. These powers enabled the company to build empires. The government stake in Etisalat is 60% while only 40 % of the company’s shares are traded in the security exchange market. The government appoints most of the Etisalat Company’s directors and top officials. After the acquisition of Macro telecom in 2014, Etisalat receives full UAE government support.
The inefficiency in the company’s operational activities results from the government influence. The telecommunication market in the country takes a duopoly structure. There are only two companies in the industry competing for the large volume of buyers in the entire UAE. These are Etisalat and dU. Both players in the market have support from the government and the set regulations in the country restricts the entry of other firms in the industry. Etisalat is contributing to approximately 30% of its net income to the UAE (Sanjay, 2012). However, if the support from the government is withdrawn in future, the telecommunication company is likely to be adversely affected.
Economic factors entail the general economy of the county where Etisalat operates. These economic factors include but not limited to inflation, exchange rates, interest rates, the gross domestic product of the country, business climate and the state of the economic cycle that the country is operation. These economic factors affect the aggregate demand and investment which in turn affects profitability level of a company. The factors aforementioned are macroeconomic. Among the factors that Etisalat should consider before investing in brick activities in any country embroil whether the company is operating in a perfectly competitive market or in a monopolistic structure. Currently, in the UAE, the company operates under a duopolistic market. Exchange rates would affect the company’s profitability because the company operates beyond the UAE borders. The business has to be profitable to meet its operational expenses and contribute to the GDP of the country in which it is running.
The social environment of a business includes the culture, values, beliefs and attitude of the people in the country where the industry is being operated. The social aspect of the surrounding environment not only affects the operational activities of the company but also the marketing element of the company. Full comprehension of the level of education lifestyle and societal beliefs of the community have a vital contribution to business ‘success. The first thing that Etisalat makes sure is that it meets all the social standards by providing quality services and products that do not conflict the needs of the society. The company should focus on elements such as increasing acceptance of the products with an intent to improve their profitability level.
The company operates in the communication sector which 97% of its activities are backed up by technology. The world is becoming dynamic with new inventions and innovations. Enhanced creativity should be the parasol of the recruitment process. Etisalat provides communication services and products that are up-to-date. Providing obsolete products and services would drive the customers away as their loyalty towards the Etisalat products fade. The new technology offered by Etisalat including the 4G network would ease the communication process and reduce the cost. Advanced technology leads to provision of more quality services and products which simultaneously accelerates the rate of economic growth.
Etisalat Environmental Factors
Different countries have different ecological standards and so do industries. The business ethical issue provides for the protection of the environment by business and industries. Every company should at least conform to some of the environmental protection laws to avoid becoming targets by the state and environmental agencies such as the UNEP. The liability laws vary across industries.it is lest expected of the textile industry to incur the same tax pollution relative to an oil company. The world is in the epoch of global warming, and Etisalat should consider the environmental factors to offer the best to its loyal consumers. Consumer loyalty may be worn by some environmental activities such as voluntary action to control pollution. Through voluntary measures, the Etisalat’s products will gain a value brand compared to the competitor’s products.
The legal framework mainly encompasses the consumer’s laws and employment legislation. Etisalat’s policies are not enough to protect the company and the workers as well as their consumers. The company operates under tight and challenging legal frameworks. For instance, the ban on the Voice over the internet protocol (VoIP) has compelled the consumers to shift to regular calls. The Telecommunication Regulatory Authority in the UAE sets laws that should abide by the companies when designing applications. Government control of Etisalat’s activities provides a room for bureaucracy (Zamberi & Ahmad, 2016 p. 11).
“Etisalat’s vision is of the world where a matter of distance does not limit people’s reach as people will move all over the world, staying in touch with families, make new friends as they go and developing new developing interest. Businesses of all sizes, no longer limited by distance, will be able to reach new markets. Innovative technologies will open up fresh opportunities across the globe, allowing the supply of new goods and services to everyone who wants them” (www.Etisalat.com).
“To extend people’s reach by giving them the freedom to learn and discover and learn, to communicate and interact. We help them to be everything they can. We do this by providing services and technologies that enable people and businesses around the world to reach each other, their aspirations, ambitions and the best the world has to offer” (www.Etisalat.com ).
According to Yahaya and Ebrahim (2016), leadership style alludes to the manner in which the roles of the leadership are carried out (p. 198). It refers to the typical behavior of the leaders to the employees and other stakeholders of the group. The leadership in the company is democratic. Every organization is under its director and executes its functions independently albeit the collaboration with other departments of the group. Although the government mostly makes the appointment of the board of director, the shareholding rights of the public minority in the security exchange market gives the company leadership a liberal outlook. The leadership style applies a laissez-faire system for marketing as well as a company’s size. The doctrines of laissez-faire advocates for minimum government interference. The government, however, intervenes in the market to correct market externalities the management gives employees a lot of freedom since it motivates them. The employees are involved in decision making thus much authority is given to the employees and the staff to set their own goals.
Leadership Style – BEHAVIORS, TRAITS, and MOTIVES AND THEIR IMPACT ON THE ORGANIZATION – needs fixing
Leaders Communication STYLE, EMOLOYEES MOTIVATION, COMPANY PERFORMANCE – MISSING
LEADING GLOBALLY – INNOVATION – ENTREPRENEURSHIP – MISSING
DEVELOPMENT PLAN –
CHOOSE LEVEL TITLE NAME
CHOOSE 5-7 COMPETENCIES
CHOOSE 3 behaviors for each competency.
SWOT analysis is a business tool that is used to assess the internal and external environment of business (Sampath, 2014). The word SWOT is an acronym for Strength, Weaknesses, Opportunities and Threats. Etisalat as a telecommunication services provider in the UAE has some strengths that enable it to survive in the duopoly market. One of the strength is that the company has a vast subscribers base in December 2017, the company’s subscribers base was approximated at 142million people and a forecasted constant growth of 3% per annum. The second strength is that the company has the most valuable product in the MENA region. The company also has a strong relationship with the government whose stake is 60%.
Since the company is a multinational corporation across the Middle East, it experiences weak operations in Pakistan (Sampath, 2014, p.). This is due to constant wars in the country which undermines the company’s strategy to build empires in the country. The company is also affected by government bureaucracy despite its enormous contribution.
The technology and services industry and is characterized by many opportunities due to its dynamic nature. For the case of Etisalat, there is a need to invest heavily in the upcoming trend which is the internet of things. Moreover, the company has a connection with the government, and this gives it a chance to diversify its operations within the UAE.
The company is exposed to the threat of currency fluctuations given the political climate in the Middle East countries like Pakistan and Iran. Also, there is a high duplication of products in the market which could be the infringement of the rights of intellectual properties by availing counterfeit products in the name of Etisalat.
CONCLUSION – MISSING
Sampath, I.K.K., 2014. Identification of critical success factors for international direct dialing business in Sri Lanka.
Sanjay, B. (2012). Etisalat Will Not Bid for India’s 2G Spectrum Auction Scheduled in November. [online] Telecom Talk. Available at: https://telecomtalk.info/etisalat-not-bid-india-2g-spectrum-auction-scheduled-november/99410/#more-99410 [Accessed 11 Nov. 2018].
Yahaya, R. and Ebrahim, F., 2016. Leadership styles and organizational commitment: literature review. Journal of Management Development, 35(2), pp.190-216.
Zamberi Ahmad, S. and Ahmad, N., 2016. Etihad Rail: a new way to change a business landmark in the United Arab Emirates. Emerald Emerging Markets Case Studies, 6(3), pp.1-16.