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GROUP 2In cooperation

with:Marlotte WindigJeroen Trommel

Kristin RadtkeChristina

SiffermannMichael Pinto

Terence ten

Cross border project: Export Plan United Arab Emirates

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Export Plan Amoria Bond Limited – Group 2 06-06-2016

PrefaceOur names are Marlotte Windig, Jeroen Trommel, Michael Pinto, Terence ten Berge (from the Hogeschool van Amsterdam) and Kristin Radtke and Christina Siffermann (from Fachhochschule Dortmund). At this part of the semester International business is central and we have the task to make an export plan in ten weeks for Amoria Bond. Amoria Bond is a recruitment company located in the UK and already working in the Netherlands, Germany and Singapore. Amoria Bond wants to expand their business to another country and our task is to do research to which country is the best to expand to for Amoria Bond. In front of you is the export plan to the United Arab Emirates, a country located at the southeast end of the Arabian Peninsula on the Persian Gulf.

We have learned a lot during this project. It was not only exciting doing research for a real company but also working together with people from another country. A lot of desk research has been done during the project and we also interviewed people from Amoria Bond to give them the best advice.

We would like to thank the people from Amoria Bond for giving us the opportunity to give us an insight to do international business and we would like to thank professor Oudijk and professor Brueggelambert for the accompaniment and support they gave us.

01/06/2016, Amsterdam and Dortmund

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Executive summary This project the Hva teamed up with the Fachhochschule Dortmund and Paris school of business to serve as consultancy bureau for several clients. Amoria bond was one of these clients and came up with the task to do research on what country would be best for Amoria bond to expand to. From the shortlist of 6 countries Amoria bond choose the United Arab Emirates as research topic for team 2.

The external analysis has led to the following information: The population of the United Emirates has risen to a shocking 8.6 million in 2015. The economy of the UAE will keep on rising with 3.0% in 2016. Thanks to this stable growth the UAE is interesting for foreign investors. The social & cultural values have been analysed with the Hofstede dimensions, showing quite big cultural differences with the UK on several levels. However these differences should not form an insurmountable obstacle. In combination with a highly developed technological sector the UAE sure is a promising option for Amoria bond. Furthermore the research showed that Dubai has more than its fair share of recruitment companies and consultants. The competitive rivalry in Dubai is very intensive because of this high amount of competitors willing to sabotage their rivals. Amoria bond should take into consideration that among others: Bayt, Kershaw Leanoard, Hays, Nadia are established in the UAE.

The 7’s model of McKinsey also has been applied during the research. The structure has been mapped and an organizational chart has been made, it can be found in the appendix. The remaining information in the 7’s model resulted in the SW of our SWOT. The strengths and weaknesses of Amoria bond are displayed in the confrontation matrix opposite of the opportunities and threats that are present in the United Arab Emirates. With an overall positive image it can be said that Amoria bond plays it safe by establishing in the UAE.

So in conclusion: With a GDP of 402 billion euro’s and with great GDP forecast the UAE is a safe bet for Amoria Bond and the sales targets of 200,000 euro’s per sales person in the first year should be achievable. Having said that the United Arab Emirates are a good choice for Amoria bond the research part is finished. All of these information lead to the following advice: After this research the overall advice is: Amoria bond should take over a SME established in the UAE called Kershaw recruitment. To market themselves our advice is that Amoria bond should make use of a social media campaign. Because the population of the UAE is widely spread and the reach of a social media campaign is massive. The 2 biggest ethnic groups in the United Arab Emirates are South Asians and Muslims. Therefor we strongly recommend Amoria bond to work with at least one local that knows these cultural differences and knows how to adapt to them. The main reason for Amoria Bond is that they need a local inhabitant to enterprise in the UAE. Another advantage is that Amoria Bond will experience fewer starting problems. Because Kershaw recruitment already knows what they are doing. Kershaw recruitment is established in Abu Dhabi and therefor Amoria bond should establish in this region as well. Amoria bond sure has the budget and the recourses to apply this entry strategy and make the UAE venture a great success. We hope to see that in the near future Amoria bond is expanding to the United Arab Emirates and if so, successfully.

Team 2: Christina Siffermann, Kristin Radtke, Terence ten Berge, Marlotte Winding, Michael Pinto & Jeroen Trommel

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Table of contentsPreface....................................................................................................................................................................1

Executive summary...............................................................................................................................................2

Introduction.............................................................................................................................................................6

1. Amoria Bond...................................................................................................................................................7

1.1 Background information........................................................................................................................7

1.2 Mission....................................................................................................................................................7

1.3 Vision.......................................................................................................................................................7

1.4 Business Definition model- Abel model..............................................................................................8

2. From 24 countries to 1..................................................................................................................................8

2.1 MABA analysis.......................................................................................................................................9

3. External analysis United Arab Emirates.....................................................................................................9

3.1 Macro analysis – DESTEP...................................................................................................................9

3.1.1 Demographics................................................................................................................................9

3.1.2 Economy.......................................................................................................................................10

3.1.3 Social & cultural............................................................................................................................10

3.1.4 Technological development........................................................................................................10

3.1.5 Ecological......................................................................................................................................11

3.1.6 Political & Jurisdiction situation..................................................................................................11

3.2 Meso analysis - sector analysis.........................................................................................................12

3.2.1 Energy: oil, gas, & petrochemical products..............................................................................12

3.2.2 Tourism and Hospitality...............................................................................................................12

3.2.3 Research and Education, Including Higher Education............................................................12

3.2.4 Media Production.........................................................................................................................12

3.2.5 Ports and Airports........................................................................................................................13

3.2.6 Telecommunications....................................................................................................................13

3.2.7 Solar technologies.......................................................................................................................13

3.3 Meso analysis- Customer analysis....................................................................................................13

3.3.1 B2B customers.............................................................................................................................14

3.3.2 B2C customers.............................................................................................................................14

3.4 Meso analysis- Porter’s five forces....................................................................................................14

3.4.1 Threat of new entrants................................................................................................................14

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3.4.2 Threat of substitute products or services..................................................................................14

3.4.3 Bargaining power of customers..................................................................................................15

3.4.4 Bargaining power of suppliers....................................................................................................15

3.4.5 Intensity of competitive rivalry....................................................................................................15

3.5 Competitor matrix.................................................................................................................................15

4. Internal Analysis Amoria Bond...................................................................................................................16

4.1 Financial Approach..............................................................................................................................16

4.2 Organisation.........................................................................................................................................16

4.3 Product..................................................................................................................................................17

4.4 Value......................................................................................................................................................17

4.5 McKinsey 7S Model.............................................................................................................................17

4.5.1 Structure........................................................................................................................................18

4.5.2 Strategy.........................................................................................................................................18

4.5.3 Systems.........................................................................................................................................18

4.5.4 Shared Values..............................................................................................................................18

4.5.5 Style...............................................................................................................................................18

4.5.6 Staff................................................................................................................................................18

4.5.7 Skills...............................................................................................................................................19

4.6 Value Chain Analysis...........................................................................................................................19

4.6.1 The primary activities...................................................................................................................19

4.6.2 The supportive activities..............................................................................................................19

4.7 VRIO Analysis (strategic management Insight:2013; voon management: 2014)........................19

1. SWOT............................................................................................................................................................20

2. The confrontation matrix.............................................................................................................................21

2.1 Analysis of the confrontation matrix..................................................................................................22

3. Conclusions and recommendations..........................................................................................................22

4. Entry strategy...............................................................................................................................................23

5. Three possible scenarios............................................................................................................................24

5.1 Best scenario........................................................................................................................................24

5.2 Average scenario.................................................................................................................................24

5.3 Bad scenario.........................................................................................................................................24

APPENDIX...........................................................................................................................................................25

APPENDIX I Business definition model of Abel..............................................................................................25

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APPENDIX II Country selection.........................................................................................................................26

APPENDIX III Economy......................................................................................................................................33

APPENDIX IV Cultural dimensions of the UAE...............................................................................................38

APPENDIX V Politics..........................................................................................................................................39

APPENDIX VI Competitor analysis...................................................................................................................41

APPENDIX VII VRIO analysis............................................................................................................................45

APPENDIX VIII Accounts– Amoria Bond 2010 - 2014...................................................................................47

APPENDIX IX Organisational chart of Amoria Bond......................................................................................48

APPENDIX X........................................................................................................................................................50

APPENDIX XI Information confrontation matrix..............................................................................................51

Sources list...........................................................................................................................................................53

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IntroductionIn this semester is International marketing central. Amoria Bond is an internal recruitment company who wants to expand their business to another country. Amoria bond is located in the United Kingdom and already working in the Netherlands, Germany and Singapore. They want to have a year on year growth to 350+ Recruitment Consultants, continuous development and improvement, promotions (directors, managers, leaders and seniors), long term careers, overseas opportunities for new locations, new offices and markets and wealth creation & Profit share. In front of you is the export plan to the United Arab Emirates. Several individual country analyses have already been done but the United Arab Emirates had the highest score for Amoria Bond.

There has been done an external analysis for the United Arab Emirates. To analyse the external part there is been made a DESTEP analysis and a competitor analysis to give an overview of the opportunities and threats of the United Arab Emirates. To conclude the strengths and weaknesses of Amoria Bond there has been done an internal analysis. All the results are summed up in the SWOT analysis, linked in the confrontation matrix and at the end there is a description how to entry the United Arab Emirates.

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1. Amoria Bond1.1 Background information

Amoria Bond is a recruitment company that was founded by Nick Barrow, Dan Daw and Gareth Lloyd. In the first year they worked in a 6-person staff. Between 2007 and 2009 Amoria Bond opened the first office in Amsterdam and the headcount grew to 30 staff members. Right then and there the training and development department was created. The headcount continued to grow from 40 to 100 and Amoria Bond decided to open offices in Singapore and Cologne between 2010 and 2013. Amoria Bond got over 30 recruitment awards in nearly 6 years and reached a turnover over 40 million euros. This is a record number of international promotions. Nowadays Amoria Bond is established in the UK, Germany, Singapore and the Netherlands. They are mainly focusing on people with a high-degree or people with at least 15 years of experience in a big company. They try to recruit good employees with a minimum wage of 60,000 € per year. Several companies contact Amoria Bond to give them assignments where they have a free position. Then the sales department contacts matching employees from other companies to offer them jobs for the free positions of the companies that contacted Amoria Bond. The specializations of Amoria Bond are engineering, oil & gas, power & energy, ICT, pharmaceutical and life sciences. They are working in Germany, Netherlands, UK and Singapore.

Amoria Bond won the ‘best Executive Search’ and the ‘Agency of the Year’ awards in the past 2 years. They have a strong internal culture of delivery, with a set of values that governs how their employees act. Their values are positivity, respect, ownership, fun, excellence and success. Positivity shows that they are grateful for their success and try to give something back whenever they get the opportunity. Respect expresses pride in what they are doing and ensure that their brand is seen as a trusted and honest organisation.Ownership means to uphold the highest professional standards at all times and to take ownership for their corporate impact on others and the environment.Fun indicates that they promote the wellbeing of their staff through an inclusive, productive, positive and happy working environment.Excellence means that Amoria Bond controls the quality of interactions with staff, customers and suppliers. They want to continuously improve their Business, their Service, their Workplace their Relationships and their Social Contribution.Success means to consistently excel in everything they do and offer a supreme service to their customers.They are an ethical business that takes their corporate responsibility seriously. Amoria Bond’s track record shows that 80% of their clients use their services on a repeat basis and their annual customer satisfaction survey showed that only 1.4% of them were dissatisfied with their service.

1.2 Mission Amoria bond already gave us their mission during the introduction at Amsterdam:“To be the best company in which recruitment consultants can practice the recruitment profession, giving unrivalled progression, training, development, and support to enable us to give the highest quality global service to our clients and candidates through an ethical and professional approach.”

1.3 Vision Amoria bond wants to have a year on year growth to 350+ Recruitment Consultants, continuous development and improvement, promotions (directors, managers, leaders and seniors), long term careers, overseas opportunities for new locations, new offices and markets and wealth creation & Profit share.

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Weight Belgium Israel Sweden Poland Bagrain United arabic Emirated

Potential market size (GDP) 0,1 481,500,000 320,000,000 571,000,000 413,134,002 32,000,000 356,220,000Number of big competitors 0,2 16 15 25 20 19 7Potential reach of people 0,05 11,200,000 8,100,000 8,866,670 38,623,223 1,332,000 8,200,000Political stability (1 till 5) 0,1 5 2 5 5 5 3welfare level (average income) 0,15 28.307 17,427 25,608 12.000 13000 41000big city´s > 150.000 0,2 6 8 4 18 1 5International oriented companies 0,1 38 26 33 43 27 83import barriers (1 till 5) 0,1 1 5 1 3 1 3

Total: 1 4254,85 10,51405 13,5412 1812,7 1957,3 6161,3

Belgium 4,4 4,8 5,25 6,6 5,75 4,8 4,1 6,6 37,9 1United arabic Emirated 2,2 7,2 2,1 5,5 6,9 3,6 6,6 5,5 37,4 2Poland 3,3 2,4 6,3 6,6 1,15 7,2 5,5 5,5 34,65 3Sweden 5,5 1,2 4,2 6,6 4,6 2,4 3,3 6,6 28,9 4Israel 1,1 6 3,15 4,4 3,45 6 1,1 4,4 28,5 5Bagrain 6,6 3,6 1,05 6,6 2,3 1,2 2,2 6,5 23,45 6

Punten 1 62 53 44 35 26 1


1.4 Business Definition model- Abel modelIn the following model you can see the business scope and -definition of Amoria Bond.

See appendix I for the explanation of the business definition model

2. From 24 countries to 1Appendix II shows how we used different filters to come at six countries.

After analyzing the six countries individually we compared the countries and added some weights. Belgium has the highest score with 37,9 and the second place is for the United Arab Emirates with a score of 37,4.

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2.1 MABA analysisThe MABA analysis, Market Attractiveness Business Assessment is a portfolio matrix. The company will be judged by market attractiveness and competition power. The MABA analysis shows in a visual way the most attractive country for Amoria Bond.

The final decision was made by Amoria Bond to analyse the United Arab Emirates.

3. External analysis United Arab Emirates3.1 Macro analysis – DESTEP

A DESTEP-analysis is a research based on six macro-factors. These factors are the Demographic, Economic, Social-cultural, Technological, Ecological and Political-legal factors. Organizations depend on their external environment (Macro-environment). The macro environment influences the organization. A DESTEP-analysis clarifies how a company can best deal with such macroeconomic factors and how to implement their strategy accordingly.

3.1.1 DemographicsThe UAE’s population has risen at a shocking pace. In 2015, the total number was 8.6 million, up from just 951,000 in 1980. Median age is rising and in 2015 was estimated to be 33.0 years (significantly higher than the regional average). Median age will rise to 46.5 years by 2030. These two apparently contradictory trends are explained by the large number of immigrants that have entered the country over time. Foreign citizens make up around 80% of total population and are mainly responsible for the rapid gains in population. However, almost all immigrants are young or middle-aged adults and their presence ensures a relatively high median age. The country’s fertility rate has fallen over the past three decades. In 2015, it was 1.8 births per female and it will drop to 1.5 births by 2030. The downward trend is attributed to improvements in education and better access to various

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forms of contraception. [Looklex; Demographics:2015]. The amount of people, the immigrants and the improvements in education is really interesting for Amoria Bond because they are mainly focusing on high educated people.

3.1.2 EconomyThe United Arab Emirates is competitive in many areas of economic freedom. Barriers to trade are quite low, and regulations support open-market policies. With a favourable business climate and political stability, the UAE has created a dynamic entrepreneurial environment for international investors. The financial sector’s overall soundness has improved substantially since the Dubai debt crisis of 2009. The real GDP will grow by 3.1% in 2016 [tradingeconomics:2014]. The standard of living in the United Arab Emirates is one of the highest in the world. A highly liberal, business friendly and market-oriented growth strategy has reshaped the economy. The UAE has no income tax and no corporate tax at the federal level. The open-market policies, political stability, all from above is great for Amoria Bond since they want to expand and want to open a business in another country.

See appendix III for more information about the economy of the UAE.

3.1.3 Social & culturalThe inhabitants of the UAE speak mostly Arabic and other languages are Persian, English ,Hindi and Urdu. Only 19% of the inhabitants are Emirati, 50% are South Asian and 31% comes from other Arab countries andIranian. The main religion of the UAE is the Islam [the-world-factbook; library].

Geert Hofstede theoryGeert Hofstede cultural dimensions theory is used to get to know the culture of the UAE. Professor Geert Hofstede conducted one of the most comprehensive studies of how values in the workplace are influenced by culture. He defines culture as “the collective programming of the mind distinguishing the members of one group or category of people from others”. The six dimensions of national culture are based on extensive research done by Professor Geert Hofstede, Gert Jan Hofstede, Michael Minkov and their research teams.

Large Power Distance (90) and Uncertainty Avoidance (80) are characteristics for the UAE. These societies are more likely to follow a system that does not allow significant upward mobility of its citizens. They are also highly rule-oriented with laws, rules, regulations, and it creates a situation where leaders have virtually ultimate power and authority, and the rules, laws and regulations developed by those in power reinforce their own leadership and control. Time is money, people have an inner urge to be busy and work hard, precision and punctuality are the norm, innovation may be resisted, security is an important element in individual motivation.

Amoria Bond will face several cultural differences in the United Arab Emirates. However, now they know this differences they can adapt their strategy to these differences. Besides, people how work hard is always good.[Geert Hofstede; United Arab Emirates].

See appendix IV or more information about the cultural dimensions of the UAE.

3.1.4 Technological developmentICT sectorThe UAE has adopted an aggressive policy towards the implementation of ICT technology and supporting infrastructure. This policy views the development of the ICT sector as a premier vehicle to attract foreign investors as well as a means to promote the diversification of the UAE economy. Over the past five years, the UAE established and implemented a National Telecom Policy to encourage development and innovation within the ICT sector. This General Policy for the Telecommunication Sector (GTP) accelerated growth and development within

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the sector from 2006-2010. The UAE is ranked 1st among Arab States (ranked 29th worldwide) and is experiencing a large value increase as a result of strong performance in both ICT access and use. The UAE also sponsored the ICT Development Fund in 2005. The first of its kind in the Middle East, this fund is intended to promote innovative research and development both regionally and globally in this field. Cyber Security is also a growing field as the U.A.E. is home to Advanced Integrated Systems, the fastest growing homeland security company in the world. AIS is building a reputation as a quality resource in the cyber field.

Science & TechnologyThe UAE is taking keen interest in advancing her achievements in the field of science and technology. The UAE Vision 2021 under its theme ‘United in Knowledge' states: Innovation, research, science and technology will form the pillars of a knowledge-based, highly productive and competitive economy, driven by entrepreneurs in a business-friendly environment where public and private sectors form effective partnerships. We want the UAE to transform its economy into a model where growth is driven by knowledge and innovation. Productivity and competitiveness will come to rival the best in the world, as a result of investment in science, technology, research and development throughout the fabric of the UAE economy.

Life science & TechnologyDubiotech or The Dubai Biotechnology and Research Park in Dubai facilitates research and development for life sciences companies by providing excellent laboratories and other ancillary services.

Information technologyICT Fund, which works under the realm of Telecommunications Regulatory Authority, has invested more than Dh1.6 billion from 2008 to 2014 in various projects in information and communications technology sector including in education and space technology. Dubai set up free zone such as Dubai Internet City to support technology companies in the UAE and boosts technological advancements and economic growth in the UAE and the Middle East [Government; science technology; Date:unknown]

3.1.5 Ecological The UAE has a desert climate but it is cooler is the eastern mountains. The terrain is flat, barren coastal plain merging into rolling sand dunes of vast desert; mountains in east

Global Footprint NetworkThe UAE has partnered up with the Global Footprint Network (GFN) after the GFN reported that the UAE was the country with the largest per capita Ecological footprint in the world at almost 12 global hectares (Living Planet Report 2006). The UAE government launched the Ecological Footprint Initiative in 2007 with the following mission: “to ensure a sustainable future by measuring and understanding the impact of our ways of living on the planet earth.”The Ecological Footprint Initiative resulted in a drop of the UAE Ecological footprint to 7.75 hectares per capita in 2015. [the-world-factbook; online publications]

3.1.6 Political & Jurisdiction situation With the exception of free zones, (where foreign investors can have the full ownership of their businesses) (which is really interesting for Amoria Bond), companies established in the UAE must have a UAE national partner or partners who holds at least 51 percent of the company’s capital as per the Commercial Companies Law. The law also permits foreign companies to open branches or representative offices in the UAE provided that the branch or office appoints a UAE national services agent. A foreign company can also sell its products or services in the UAE without establishing a formal company in the country by entering a commercial agency agreement whereby a foreign company is represented by a UAE national agent to sell, offer, or provide goods or services for a

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commission or profit. Other exceptions of the Commercial Companies Law exist depending on a company’s primary activities, for example, activities involved in oil, gas, electricity, water, etc.

The UAE has one of the highest per capita income levels in the world and a highly developed welfare system. It also has one of the lowest rates of unemployment in the Middle East (4.5%) and depends heavily on foreign labour (more than 85% of the workforce) [online; uaefreezones; date unknown].

See appendix V for more information about the Political & Jurisdiction situation of the UAE.

3.2 Meso analysis - sector analysisThe following market segments are the main industries of the Emirates which match the sectors of Amoria Bond[online; uaetrade-usa; date unknown].

3.2.1 Energy: oil, gas, & petrochemical productsThe UAE is the world's sixth largest proven oil reserve and the fifth largest natural gas reserve. The UAE is the world's third largest exporter of crude oil, though it exports almost nothing to the United States. Oil exports only an amount of one-third of the country's economic activity as a result of UAE government efforts to diversify the economy. Each Emirate controls its own oil production and resource development. Abu Dhabi holds 94% of the UAE's oil reserves, or about 92.2 billion barrels. Dubai contains an estimated 4 billion barrels, followed by Sharjah and Ras Al-Khaimah with 1.5 billion and 100 million barrels of oil, respectively. The UAE exports more than 40 percent of its crude oil to Japan. The UAE is a net importer of natural gas and gas exports are primarily to Japan as well. In this branch a great number of engineers are needed. Due to the fact that Amoria Bond is specialized in this field, they have many potential employees to recruit for demanding corporations.

3.2.2 Tourism and Hospitality The U.A.E. has become a regional and global leader in the tourism and hospitality sector in recent years. For example, both sectors combined grew by double digits in 2010 and were major contributors to the country’s overall economic growth. Luxury hotels in Abu Dhabi and Dubai are currently leading the hospitality sector in the region by creating hotel-based tourist attractions. The UAE offers two of the world’s only seven star ranked hotels: the Emirates Palace and the Burj Al Arab. The Burj Khalifa currently stands as the world’s tallest building and features a hotel designed by the Armani brand. For the more adventurous types, Abu Dhabi’s Tourism and Investment Company (TDIC) has developed many different activities based around the U.A.E.’s natural resources. Traveler’s can enjoy the rugged beauty of the U.A.E. sand dunes or a secluded desert majlis. Due to the fact that the Emirates is becoming a global leader in the tourism and hospitality sector it is maybe interesting for Amoria Bond to not only expand their business to another country but also wide their business definition (focus on more sectors).

3.2.3 Research and Education, Including Higher EducationThe UAE is committed to a standard, high-quality, education across the UAE as well as to educational research and innovation. This is reflected in both the investments being made with public resources to build and improve institutions of higher learning and research, like the Masdar Institute and MIT, NYU Abu Dhabi, the Mubadala investment in UAE University, University City in Sharjah, Knowledge Village, and the American University of Dubai. All of these projects reflect a keen awareness that the country is addressing any/all gaps that might have existed in the education sector in the past. The U.A.E. has created a national standard that educational institutions are required to meet, demonstrating the student’s ability to compete in various job markets on the national, regional, and international levels. Furthermore, the UAE has been injecting significant funds into the

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development of research programs and vocational schools that are designed to meet sector-specific industry needs.

3.2.4 Media ProductionThe UAE is decidedly focused on rapidly developing their media sector. For example, the country is quickly becoming a hub for the U.S. film industry through their free zones and open media environment. Many U.S. movies have been filmed in the U.A.E. including Syriana, the Kingdom, Iron Man, and Jumper. In turn, this focus has led to original Emirati films. In 2010, the award-winning Emirati writer and director Ali Mostafa released City of Life, the first major motion picture directed by a U.A.E. national about the Emirate of Dubai. Many U.S. news organizations have also found their way to the U.A.E to service the M.E.N.A. region, using the free zones as a hub. These companies include CNN and the News Corporation. Due to this rapidly developing sector it is maybe interesting for Amoria Bond to not only expand their business to another country but also wide their business definition (focus on more sectors).

3.2.5 Ports and AirportsThe UAE has made major investments in its infrastructure, resulting in modern ports and airports that serve as some of the most active gateways into the Gulf region for business, commerce and tourism. In this branch again a large number of engineers are needed. Due to the fact that Amoria Bond is specialized in this field, they have many potential employees to recruit for demanding corporations.

3.2.6 TelecommunicationsThe UAE is ranked ahead of all Arab states in the 2015 Networked Readiness Index (NRI) issued by the World Economic Forum, and 23rd among all 143 assessed countries. The UAE ranked first among Arab states among several indicators:

Business-to-consumer Internet use E-Participation Index Internet access in schools Secure internet servers Low software piracy rates Percentage of software installed Internationally the UAE is ranked first in: ICT use and Government efficiency Mobile network coverage in terms of the percentage of the population covered Importance of ICT to the Government’s vision of the future Impact of ICTs on new services and products

Here again engineers are needed. Amoria Bond’s specialization in this field is open for many potential employees to recruit for demanding corporations.

3.2.7 Solar technologiesMasdar, Abu Dhabi’s renewable energy company, and the Masdar Institute of Science and Technology, has announced plans to launch the Masdar Solar Hub to expedite the development of solar technologies.The new hub aims to support Abu Dhabi’s efforts to achieve its ambitions for solar energy development and deployment through research and demonstration of cutting-edge solar photovoltaic, solar thermal and thermal energy storage technologies. The hub is part of Abu Dhabi’s mandate to provide 7 percent of its power generation capacity with renewable energy technologies by 2020. The price of electricity from solar power has declined by 75 percent over the past seven years and this year global solar photovoltaic capacity alone is expected to grow by 25 percent. In

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this field of business a great number of engineers are needed. Amoria has many potential employees to recruit for demanding corporations from this sector.

3.3 Meso analysis- Customer analysisBecause Amoria bond is just a middleman the customer analysis is based on two groups. The B2B market and the B2C market. The B2B market consist of companies Amoria bond is active for. Such as Shell, Heineken etc. The B2C consist of the persons actively looking for a job. These persons are placed on behalf of the B2B clients but are customers as well.

In this customer analysis a customer profile will be described. The concept is a simple tool that can help business to better understand current and potential customers, so they can increase sales and grow their business. Because Amoria bond isn’t yet active in the United Arab Emirates the potential B2B and B2C customers will be analysed. Furthermore the customer analysis section must identify the target customer or the best customer for the company. It must then show what the needs of the customer are. It then links the two together by identifying how the company's services or products meet the needs of the customer and satisfies the customer.

3.3.1 B2B customersA list of notable companies established in the UAE grouped by their Industry Classification Benchmark sector and their locations. They can be found on abudhabichamber. These companies are noted at the Abu Dhabi Securities Exchange [online; abudhabichamber; date unknown]. These companies are a potential reach for Amoria bond because these are probably big companies willing to spend money on finding the right professional to sustain their image as a professional company. With this point they reach the needs of the B2B customers. These customers need to find the right professionals for their job vacancies. Amoria bond tries to fulfil these needs by using state of the art technology in recruitment software. The best customers in the B2B segment are companies that can promise their employees a salary of $60.000 after a few years.

3.3.2 B2C customersAmoria bond distinguishes several groups within the B2C segment.

Customers not open for a new job. These customers are super passive Customers open to a career move (the best talent) Customers open for a better career (the best talent) Customers looking for a good job Customers looking for any job

So as this list shows the needs of these sub-groups differ quite a lot. The best talent can be found in the customers not actively looking for a job but who are open for a career move or better career. So this subgroup is the best B2C customer for Amoria Bond. Amoria Bond can try to fulfil their needs by actively recruiting these persons. Therefore, they need to establish contacts in the Arab business world. By offering these persons a better job or a nice career move they can solve the needs of these groups.

3.4 Meso analysis- Porter’s five forcesPorter's five forces analysis attempts to analyse the level of competition within an industry and business strategy development. It determines the attractiveness of an Industry. This is why this model was chosen for the analysis of competition in the UAE.

3.4.1 Threat of new entrantsThe growth of job seekers coming to the emirates and hoping to find lucrative employment opportunities has led to an increase in the number of recruitment agencies in Dubai. This trend is really attractive for new entrants.

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There are few barriers to entry in this industry, capital investment requirements are relatively low, clients and candidates are probably loyal to individual customers as much as to firms, and there are few economies of scale. [online; Emirates-Porter-s-5; date unknown]

3.4.2 Threat of substitute products or servicesLinkedIn Recruiter (LIR) has sent shockwaves through the executive recruiting industry. It is a new sort of social platform, it is a database that offers a hiring firm access to over 238 million job candidates bundled with a talent management system and analytics platform. Staff loyalty and internal promotion is a substitute for recruitment. Candidates can find jobs by means of personal contacts or ‘word-of-mouth’. Candidates can also ‘mailshot’ prospective employers on a speculative basis. This eliminates most of the cost and avoids the recruitment fee entirely [online; jpatrick blog; date unknown].

3.4.3 Bargaining power of customersThe relationship between client and consultant is important, the service provided is to a great extent undifferentiated. Candidates are free to place their details with a number of consultants, and clients may find themselves being offered the same candidate by two or more firms [online; mbaskool; date unknown].

3.4.4 Bargaining power of suppliersStaff cannot be tied to their employer for a long period, so they are free to move to a rival, to a client, or to set up their own consultancy firm. Candidates cannot be prevented from registering their details with other consultants [online; mbaskool; date unknown].

3.4.5 Intensity of competitive rivalryDubai has more than its fair share of recruitment companies and consultants. Some of these have a brilliant reputation, with many years of experience in the UAE and Middle East job market while others have received negative reviews from their clients. Sometimes these reviews are from competitors trying to sabotage their reputation. The list of agencies compiled below have a good understanding of the UAE and Middle East job markets, they have dedicated and experienced recruiters for different career fields, great customer service with a high percentage of successful placements and a large network of companies with which they have contracts [online; livingdubai; date unknown].

Bayt Kershaw Leonard Hays NADIA BAC Middle East Charterhouse Middle East Michael Page

3.5 Competitor matrix

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According to the seven direst competitors the competitor matrix has been made.

Amoria Bond is located in the middle of the matrix. The competitor matrix has been made due to the specialized sectors of the competitors. Michael Page, Hays and Kershaw Leonard are the three competitors in the UAE who are risky for Amoria Bond because of the most similar matching sectors. Because of the fact that Michael Page and Hays are already known by Amoria Bond, Kershaw Leonard will be a good opportunity for Amoria Bond to cooperate with. Because of the similar sectors it is maybe possible for Amoria Bond to take the company over.

See appendix VI for the total competitor analysis of the UAE

4. Internal Analysis Amoria Bond 4.1 Financial Approach

The following section contains the financial information of Amoria Bond Limited. On reference of annual reports of Amoria Bond Limited between 2010 and 2014 [companycheck:2016] shows the consolidated profit and loss for the year 2012 and 2013. The figures are showing a small increase of turnover from 2012 of 19,213,348 pounds to 2013 amounted to 20,272,100 pounds. The profit for the year, after taxation, amounted to 366,801 pounds in comparison to 2012 of 733,058 pounds. The loss in 2013 considered the significant investments into their German operation. The costs are generated from establish markets and hiring new staff for cover the new German market. They invested into infrastructure of business and office facilities like new IT & communication systems, accounting CRM solutions, re-branding which includes a new websites and marketing capability. From 2013 to 2014 Amoria Bond has a quick increase up to 195% with 1,460,973 pounds in 2014 from 494,942 pounds in 2013.

Due to the reason that there were not enough information (and even not enough time left to concentrate on this topic), a financial budget plan was not created. Furthermore, a service agency does not have expenditures for warehouses and machines, they only need to pay rents, electricity and the like. Additionally, Amoria Bond has an office in London, which is one of the most expensive cities in the world. If Amoria Bond can pay the rents and necessary expenditures in this city, they can do it everywhere. The main expense factor lies again in infrastructure of business, office facilities and staff hiring in United Arabia Emirates.

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The return of capital employed ratio shows how much profit each pound of employed capital generates. Additionally, it demonstrates to the investors how efficiently a company uses its capital employed and its long-term financing strategies [ROCE;myaccountingcourse:2015]. Amoria Bond Limited has generated a low ratio between 2010 and 2013. They earned only between 0,51 pounds and 0,92 pounds per invested pound. In 2014 they increased their ratio to 1,08 pounds. That means, for every pound invested in employed capital, Amoria Bond Limited earns 1,08 pounds. Besides, it is important that companies’ return is higher than the rate at which they are borrowing to fund assets. Further account information are in the Appendix VIII and annual reports are available on request or on the web page companycheck.co.uk (see sources). Formulas for the ROCE calculation are in the Appendix VIII as well.

4.2 Organisation The organizational chart (which can be found in the Appendix) represents the company’s structure which clearly indicates the relations between people within the organization [Fareed Siddiqui, (PhD):2015]. Additionally, it is easier to understand who has the authority, how responsibilities are allocated and furthermore it shows the communication flow. That provides guidance and clarity in a business sector, particularly in a recruitment agency which operates internationally. It also guides the employees as to whom they should report and contact in case of issues that have to be solved. Moreover, it shows the open promotion channels for recruiters who deserve it. In addition, it represents how complete the organization inside a company is and enables to understand how all the related departments work together. Amoria Bond has not yet a completely prepared organizational chart which directly explains the responsibilities and divisions inside the company. Therefore, professional websites like LinkedIn and Xing were used, which many managers use to create a possible organizational chart.

First of all, there are three co-founders of Amoria Bond. The first is the Member of Executive Board, Gareth Lloyd, who is responsible for group policy globally and covering strategic and financial process and his place of business is in Singapore. Gareth Lloyd graduated The University of Manchester with a Bachelor of Arts (hons) in Geography. Nick Barrow is the next co-founder and European Director of Amsterdam and Cologne. He is a skilled SAP Manager and responsible for Amoria Bond’s Charitable Trust. Daniel Daw is the Director in Cologne. He graduated like Gareth Lloyd on The University of Manchester in the United Kingdom with a Bachelor of Arts (hons) in German and Social Science, therefore he leads and manages the global teams in Germany, Cologne. Additionally, there are 12 further Managers, which are distributed mainly through Germany, United Kingdom and Netherlands. In the Appendix is the possible organizational chart of Amoria Bond. This one represents how Amoria Bond could intend authority, responsibility and information flow.

4.3 ProductAmoria Bond is a recruitment company. This signifies that they do not have a product in the common sense. Their product is the service to recruit new potential employees for companies that have a vacancy that needs to be filled. They offer a combination of headhunting and contingency services.

The corporation mainly focuses on people with a high-degree of education or with an experience of at least 15 years in a big company. They try to recruit good employees with a minimum wage of 60,000 € per year (Amoria Bond: 2016). Several companies contact Amoria Bond to give them assignments where they have a free position.

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Then the sales department contacts matching employees from other companies to offer them jobs for the free position of the company that commissioned Amoria Bond. The specializations of this organisation are engineering, oil & gas, power & energy, ICT, pharmaceutical and life sciences. They are working in Germany, Netherlands, UK and Singapore (Amoria Bond: 2016).

4.4 ValueCustomers of Amoria Bond benefit from their service as a recruitment agency. On the one hand their service is hired by companied that need to fill a vacancy in their company. On the other hand Amoria Bond asks matching employees to quit their job for better career opportunities. Furthermore people looking for a new job can send their applications to them. Thus Amoria Bond is like a broker or moaner that helps both sides to improve either their career or their staffing. In addition to this the family member model offers post placement support and many other incentives from which employees and also companies can benefit from (Amoria Bond: 2016).

4.5 McKinsey 7S Model McKinsey Consulting developed the 7S model to describe organizational elements like company’s values, structure, system, strategy, style, staff and the skills. It is important to understand the current state of Amoria Bond, to find out where they are now. It is necessary to figure out how competitive they are and what are the goals. Through the above mentioned elements, it is possible to compare the current and the future state of Amoria Bond and that makes easier to find out the gaps and create a new strategy.

4.5.1 StructureAmoria Bond has no Organisational Chart on their website. However, through research on various career online platforms like Xing and LinkedIn, many managers across Europe and Asia have been found. Everyone is responsible for one or two countries or one division. But it is not possible to find out, how they linked or communicate with each other. Below you can see the managers and their responsibilities. Unfortunately, Amoria Bond provided no further detailed information in the questionnaire.

4.5.2 Strategy Amoria Bond has the objective to be the best recruiter in Europe and other places and to extend abroad. They have currently 130 Family Members and they want to extend to 350 in 5 years. In addition to this, they want to expand their divisions in Pharmaceutical and Life Sciences, in which they are not currently present in. Through offered career opportunities, they want to hire a lot of recruiters, particularly young, well-educated and motivated persons. The main target is to duplicate their current turnover in 3 to 5 years. Furthermore, Amoria Bond knows that it is necessary to be aware that all actions have an impact; therefore they want to ensure that this impact always is a positive one. They try to guarantee this through a careful decision-making and a selection of appropriate behaviour [Amoria Bond: 2016].

4.5.3 SystemsAmoria Bond’s payment system consists of a fix wage plus provision. This depends on success, every employer can earn more or less money. They put an emphasis on the information system in the business. Amoria Bond values communication. Thus it is guaranteed to respond to any complaints within 1 - 3 working days [Amoria Bond: 2016]. Everyone should always be up to date about different business sectors and new recruiting or searching strategies, due to high competition on the market. Therefore, they have a high web-presence and are using nearly every career platform to recruit and perform. Amoria Bond has a family member system. This means that they install the recruited employees in a new company. Even if they are working for this particular company, they still remain family members of Amoria Bond, providing them with a certain percentage of their salary. A percentage between 20 and 30 per cent is aimed, but it always depends on their negotiation.

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4.5.4 Shared ValuesThe company values of Amoria Bond are strongly competitive and young life style oriented. Their mission statement is success-oriented and emphasizes to be the best recruitment company (Amoria Bond: 2016). In addition to this the corporation values credibility and quality. To proof this, they have won several awards; they are the only recruiter to have uniformly won awards from across the industry and also outside of it [Amoria Bond: 2016]. Furthermore, the recruitment company is a member of REC (Recruitment Employment Confederation) and APSCo (The Association of Professional Staffing Companies) [Amoria Bond: 2016]. Thereby their quality of work again is assured. The internal culture is high life-style oriented…. In reference of many pictures on Facebook and Instagram, they show varied workplaces, young spirited employees whose enjoy the travel and business trips as a reward for high work effort.

4.5.5 StyleThe leadership style is not really transparent but on the questionnaire on our part they confirmed a hierarchical leadership style. Every Family Member has a team manager and the team manager has a Business Manager and so on. The communication style is from up to down and vice versa.

4.5.6 Staff Amoria Bond has about 130 “Family Members”. This means that they install the recruited employees in a new company. Even if they are working for this particular company, they still remain family members of Amoria Bond, providing them with a certain percentage of their salary. Additionally, they have team managers who supervise the family members.

4.5.7 SkillsAmoria Bond searches for mature business professional consulters with a solid track record of success in their field. Average is 8 years business experience per consultant. This recruitment agency offers training, progression, lunch clubs, business trips and early finishes as incentives to their employees. These will be the same incentives being offered in the United Arab Emirates. For more success Amoria Bond spends annually 10.500 pound per employee for Training & Development [Amoria Bond: 2016].

4.6 Value Chain Analysis The Value Chain of Amoria Bond is analyzed in the following part. It helps to identify the ways in which they create value for their customers and then helps to find out how is it possible to maximize this value. Especially for a recruitment company it is the first step, before developing a new strategy for Talent Management. The Value Chain Analysis was designed by Porter and the definition includes all activities of Amoria Bond. Amoria Bond is present in the Service Sector and therefore they have only one type of organization, the Service based organization.

4.6.1 The primary activities The primary activities are those involved in the creation, recruiting and transfer of the service. First of all Amoria Bond screens their potential candidates through tests and or interviews. The company then selects the matching candidate based on the test and interviews and then delivers the candidate to the client. Subsequently they provide post-placement support and other services.

4.6.2 The supportive activities The supportive activities happen parallel and merely support the primary activities. These are: Job Specification, Meeting, Searching and Networking. The competitive advantage of Amoria Bond is the careful screening and selection of the candidates, afterwards they still supporting them.

Support Activities

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Job SpecificationM

argin

MeetingSearch

NetworkingScreen Interview Selection Delivery Post-

Placement Support

Primary Activities

(See http://de.slideshare.net/monishrm/value-chain-analysis-23849383)

4.7 VRIO Analysis (strategic management Insight:2013; voon management: 2014)It was decided to use the VRIO framework because with the help of this tool it is possible to analyze a corporation’s internal resources and capabilities to find out if they can be a source of sustained competitive advantage. The VRIO analysis was developed by Barney, J.B. According to him, the resources must be valuable, rare, imperfectly imitable and non-substitutable / organized to capture value. Only if one internal resource or capability meets all four requirements, it can bring sustained competitive advantage for the company.

Tangible resources

Valuable Rare Costly to inimitable

Organized to capture value

Implications for competitiveness

Financial Yes No No No Competitive ParityTechnological No No No No Competitive

DisadvantageIntangible resourcesInnovation No No No No Competitive

DisadvantageHuman Capital and family member system

Yes Yes Yes Yes Sustained Competitive Advantage

Reputation Yes Yes Yes Yes Sustained Competitive Advantage

Selection process

Yes No No No Competitive Parity

Post-Placement Support

Yes Yes Yes Yes Sustained Competitive Advantage

See appendix IX for more information about the VRIO analysis.

1. SWOTSee appendix X for the explanation of the SWOT analysis.

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2. The confrontation matrixThe confrontation matrix is based on the SWOT analysis. In this matrix the strengths, weaknesses, opportunities and threats are being linked and connected. After connecting these aspects the confrontation matrix should answer the following questions:

How could Amoria bond use their strengths to take advantage of the opportunities? How could Amoria bond use their strengths to defend themselves of threats? How could Amoria bond improve their weaknesses to take advantage of the opportunities? How could Amoria bond improve their weaknesses to defend themselves against threats?

Therefore the strengths and weaknesses, opportunities and threats are displayed face to face.

2.1 Analysis of the confrontation matrixIn the analysis of the confrontation matrix we shall take a look at how Amoria bond is able to use their strengths and how their weaknesses are disturbing them. Amoria bond can use their strengths to defend themselves against the multiple threats of the macroeconomics. With an overall positive score of +26 Amoria bond has nothing to fear of.

The weaknesses of Amoria bond however show a completely different outcome. With the weaknesses Amoria bond momentarily has, they still are able to make use of the opportunities that are present with an overall positive score of +4. But when we take a look at how Amoria bond is able to defend themselves against the multiple threats with the weaknesses taken into consideration, Amoria bond scores -22 points. This outcome is shockingly

low and Amoria bond must take this into consideration.

So the conclusion based on this confrontation matrix is: Amoria bond should focus on improving their weaknesses to withstand the upcoming competition mentioned in the threats of the macroeconomic factors. After improving the weaknesses the confrontation matrix should contain more green sections and an overall positive score.

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See appendix XI for more information about the confrontation matrix

3. Conclusions and recommendationsTaking everything in consideration The United Arab Emirates is a country with many cultural differences in comparison with the UK, the Netherlands and Germany. Having said that these differences should not form an insurmountable obstacle. The UAE has evolved significantly since the late decades of the 20 th century. The country has emerged as business hub in the Middle East with its global cities being Abu Dhabi and Dubai.

The foundation of the UAE’s wealth and evolution lies at the natural products of oil & gas, in which the country is very rich. With a GDP of 402 billion euro’s and with good GDP forecast the UAE is a safe bet for Amoria Bond and the sales targets of 200,000 euro’s per sales person in the first year should be achievable. This wealth is based on natural resources and is mostly produced in the region of Abu Dhabi. Since the UAE wants to maintain its prosperity, natural resources are finite; the country has decided to incorporate tons of diversification strategies. This is mostly visible in the country’s largest city, Dubai. Dubai has become a hotspot for tourism and an international hub of global travel with its enormous Dubai International Airport and the country’s major airlines Etihad and Emirates. Especially the sector “engineering and power” promises big opportunities for Amoria Bond.

The Islamic religion has a lot of influence within the country and its government. Generally, Muslims do not interfere with Westerners and the same is expected the other way around. Some Islamic guidelines do apply to Westerners, one being a dress code. Other laws can be very strict compared to western nations. Drugs for example are not tolerated in the slightest. The UAE is without a doubt an interesting business opportunity for almost any venture. One thing that should be kept in mind is that tons of ventures realise this and thus the competition might be very fierce. The recent future however, indicates that there’s enough room for every venture and business to join in on the UAE’s evolution. It would be best for Amoria Bond to take over a local company in the UAE that is already active in the recruitment sector, even if they said they do not want to have a linkage with another company.

The main reason for Amoria Bond is that they need a local inhabitant to enterprise in the UAE. Another advantage is that Amoria Bond will experience fewer starting problems.

Our advice is based on research of the United Arab Emirates.

In the entry strategy we advised to do a take-over of Kershaw recruitment, because of the major cultural differences. Starting a new business will cause too much problems.SectorsAs we all know the United Arab Emirates is a very rich country especially regarding the oil part.Also the IT sector is very popular, our advice is not to focus on all sectors but we think that Amoria bond can grow in these sectors:

It/ICT Oil and Gas Pharmaceutical

These sectors are interesting because there are not a lot of competitors active in these sectors, this will be very interesting. More information can be found in the meso analysis.

Where to establish?The United Arab Emirates has a few regions: Abu Dhabi, Dubai, Ajman Sharjah, umm al Quwain, Ras al Khaimah and Fujairah. There are 2 big options for Amoria Bond to establish in United Arab Emirates: Abu Dhabi or Dubai. The United Arab Emirates consist a few regions, Kershaw recruitment is established in Abu Dhabi.

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MarketingThe marketing activities of Kershaw aren’t very big, this might be caused by their budget. Since the population of the United Arab Emirates is spread all over the country and don’t life very close to each other. We think the most successful marketing campaign will be a social media campaign. The United Arab Emirates is ranked (according to the Networked readiness index) placed on number 1 of all the Arab states.

Cultural approachIn the United Arab Emirates there are a couple of languages spoken but English and Arabic are the most popular. And the 2 biggest ethnic groups are south Asian and the Islam, we advise to keep a local employee in the company. This is because they are familiar with these cultural differences.

4. Entry strategyThere are different types of entree strategies, for the UAE there are a couple of options.We considered the following options:

Licensing Partnering Franchising Partnering Joint venture Buying a company Piggybacking

After a brainstorm session and which option fits the best to the UEA, the conclusion was made that the best option is buying a company. First the entry strategy will be explained.In some markets buying an existing local company may be the most appropriate entry strategy. This may be because the company has a substantial market share, the corporation is a direct competitor to Amoria Bond or due to government regulations this is the only option for the firm to enter the market. It is certainly the most costly and determining the true value of a firm in a foreign market will require substantial due diligence. On the plus side this entry strategy will immediately provide Amoria Bond the status of being a local company and you will receive the benefits of local market knowledge, an established customer base and be treated by the local government as a local firm.

Why Kershaw?There are a couple of potential businesses to take-over, the best company for this is Kershaw Leonard. It is a small recruitment company, so it will not cost too much. The benefits will be big because this company was established in 1999, so there is a lot of knowledge about the area of Abu-Dhabi.In the competitor analysis, there are a few potential businesses to take-over. But Kershaw has 4 similar sectors. The 2 other big potential competitors named Page and Hays are too expensive to take over. Recruitment companies need to conduct extensive reviews with employers. The agency has an extensive network of clients and is affiliated to several professional organizations including the Recruitment and Employment Confederation, UK.

5. Three possible scenarios There are 3 possible scenarios for Amoria Bond, below we will discuss these possibilities and we will sketch the scenarios as realistic as possible.

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5.1 Best scenarioIn a best-case scenario Amoria Bond will not experience cultural dilemmas and restrictions concerning the sharia law. In this scenario the promising forecasts expectations have been exceeded for the near future, therefore the growth is providing endless business opportunities for Amoria Bond. In this scenario the business of Amoria Bond is well received in the local business environment and the competitors don’t play a significant concern in the recruitment sector. In the best scenario the political stability is maintained and there will not occur any natural disaster. Amoria Bond will start with 5 employees in the United Arab Emirates that will have an individual sales target of a 200,000 euro a year. In the best case scenario the sales people of Amoria Bond will be able to achieve 150% of their personal sales target reaching a yearly turnover of 300,000 euro a year per salesperson witch will come on a total consolidated turnover of 1.5 million in the first year.

5.2 Average scenario In an average scenario Amoria Bond will be challenged with some cultural differences which might be caused by some delays in the communication. The Sharia law causes for some irritations and difficulties concerning to placing foreign employees since they are not used to this kind of (clothing) restrictions. These kinds of cultural differences are normal incidentals if a company goes global. In this scenario the promising forecasts of the near future are becoming reality. There are no political instabilities and the nature does not causes too many problems. The individual target of 200,000 euro per sales person is reached and the group target of 1 million euro in the first year is thus achieved.

5.3 Bad scenario In this scenario all the treats are becoming a reality. The sharia law is making it impossible to find qualified people for placement in this area. The political stability is getting worse because of the uprising popularity of ISIS in the Middle East what causes for a GDP drop and an economic disaster. The sales targets are not reached and they could nearly reach half of their individual target what makes their individual average revenue a 100,000-euro per year. In the worst scenario the nature has created some earthquakes that cause damage to their office what will cause for extra costs.

APPENDIX

APPENDIX I Business definition model of AbelThe Three Dimensional Business Definition model (or Abell model) helps a company define its business. The question by each strategic process is ‘What business are we in?’ the starting point. The three dimensions are:

Served Customer Groups (who are the customers) Served Customer Functions (what are the customers' needs) Technologies Utilized (how are needs being satisfied)

We used this model to analyse the business of Amoria Bond (scope) but also to analyse the opportunities for Amoria Bond (definition). If you know the business scope of a company you can conclude if there is already any opportunity for the company and by defining the definition of a company you can expand that opportunity.

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Customer needsAll the customer needs are in the business definition model of Abell above. But in an ideal world, the best candidates should be treated as VIP customers. This means recruiters and companies should always keep in mind that their customers have many options and easily can go to a competitor. They deserve to be wooed and shown exactly why your company and your product is a perfect fit for their needs.

Customer groupsAmoria Bond is already working in the pharmaceuticals, engineering, ICT, oil and gas, power and gas and life sciences. The basis of the industrial sector of the Emirates is the oil and gas industry, which provides today around 33% of GDP. Among other industries, an important role in the economy of the Emirates is played by the energy sector, production of construction materials, fabricated metals, pharmaceuticals, electronics, high-tech manufacturing, and tourism. So we can conclude out of the business scope that the Emirates is already a good opportunity for Amoria Bond. But there are also some sectors were Amoria Bond is not yet active. If Amoria Bond will expand their business (definition) to other sectors like tourism, electronics and construction, the opportunity to export to the Emirates will be bigger. But with help of the questionnaire we got to know that Amoria Bond does not intend to expand their businesses in the near future.

TechnologiesThe technologies of Amoria Bond are contact persons, social media, software and training.Some great opportunities for recruitment companies are doing the Human Resources (HR) and payrolls for other companies. The HR will be more difficult for corporations and recruitment companies already organized this for their own employees so they can also do this for other organisations as well. Recruitment companies can also take over some back office tasks like doing the payroll, recruitment companies are more specialized in doing the payroll than most other companies.

APPENDIX II Country selection

1. Country selection

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The business model that we applied for the first country selection of 18 countries is the country analysis approach of Joris Leeman. This business model consist three phases, which are the following: Pre-filter phase, Filter 1 and Filter 2.In the pre-filter phase a first assessment is made of the country attractiveness. In this phase following criteria are possible:

Pre-filter: Import restrictions / import duties Transportation costs Welfare level Risk of disasters/ Common sense Reasons for internationalisation

The second phase in the country analysis approach is called Filter 1. This phase is a rough scan of the macro-economic of the country. In this phase the criteria of the DESTEP analysis are used together with the criteria climate and distance. Below an overview of the criteria in the filter 1 phase:

Filter 1 Political Economic data Social Climate Distance

The last phase of the country analysis of Joris Leeman is the Filter 2 phase. Here a detailed market survey is made of the potential export countries. It’s a detailed market study with the following possible criteria:

Filter 2 Market data Product demand Competition Trade promotions Import duties per category

1.1 Filter model for country selection

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In the country analysis approach you start with 18 countries that are potential countries to extend to, and you end with 3 countries that are matching Leeman’s criteria the best. Our instruction was to select a couple of Leeman’s criteria, which apply to Amoria Bond and start with 18 countries and end with 2 countries that are highly interesting for Amoria Bond to expand to. In the pre-filter phase we looked to the lists of 45 countries in Europe and 16 countries in the Middle East. The instruction was to select 9 countries from Europe and 9 countries from the Middle East. In the Pre-filter phase we selected the following 3 criteria: The welfare level, the risk and disasters/common sense and reasons for internationalisation.

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2. Selected Countries There are 45 countries listed in Europe and 16 countries in the Middle East. From the 61 countries we selected 18 countries, 9 countries from Europe and 9 countries from the Middle East. Finally, there are two countries that are highly interesting to expand to, for Amoria Bond.

Europe To get a better insight about the macro-economy and industrial sector of Europe, there are selected countries from the four cardinal directions.

Western Europe1. Belgium

Eastern Europe 2. Poland

Northern Europe3. Norway 4. Denmark 5. Sweden

Southern Europe6. Spain7. Italy 8. Portugal 9. Greece

Certain of these countries e.g. Greece is still in financial crisis but according to the syndicated data of Euro monitor, Greece will be making a comeback in 2017. The economy should recover as private spending and investment gradually strengthen and capital controls are lifted.

Middle East In the Middle East there are few countries that would be interesting to expand to for Amoria Bond due to the political instability. So the rough criteria where based on making a practical selection. Syria for example was not chosen because of the current political unrest.

1. Pakistan2. Egypt3. Israel4. Yemen 5. Turkey6. Bahrain7. Saudi Arabia 8. United Arabic Emirates 9. Qatar

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2.1 Analysis CriteriaFirst of all, in an analysis it is important to choose criteria that are suitable and useful for the current client. Amoria Bond belongs to the service sector, therefore it is necessary to focus on serviceable information. Due to that the following criteria fitted for the customer requirements.

Pre-filterCriteria

Welfare level Human Development Risk and disasters/common sense Reasons for internationalisation

Welfare levelWelfare level reflects the financial satisfaction and prosperity in an economic system and relates to the income distribution. Amoria Bond is looking for the target group of highly skilled with a minimum year salary of 60.000 euro, depending on currency conversion of the country. According to the syndicated data of euro monitor this are the world’s top 15 economies with a low financial industrial risk.

Human DevelopmentThe Human Development Index measured the Life Expectancy, Education and GNI per Capita in a country and shows the progress.

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Risk and disasters/ common sense Before a company decides to expand to a foreign market it is necessary to monitor the World Risk Index. This monitor is a tool used to assess and estimate the disaster risk of a country to reference on the Institute for Environment and Human Security. So the question is: “Is the country safe enough for our client, and what are the future expectations?” They are little risks for the European countries because there are little climate disasters in Europe. Ukraine is the only country with a military conflict. In the Middle East it’s almost the other way around, so we could not select 9 countries that had no political issues because there are only 16 Middle Eastern countries. That’s why we tried to avoid the worst options (like Syria) for the rough selection. The reason why Amoria Bond wants to expand is because they are already highly successful in 3 countries and they want to expand from 130 employees to 350 employees in at least 1 extra country.

Reason for internationalisation This criteria explains primary motives for going international and how the business environment and other factors influence a countries or company’s internationalization.

Here is our result after the Pre-Filter was applied:1. Israel 7. Belgium2. United Arabic Emirates 8. Sweden3. Bahrain 9. Denmark4. Turkey 10. Norway5. Saudi Arabia 11. Poland6. Pakistan 12. Italy

Filter 1Criteria

Demographic Political Economic data Social Climate

It describes and clarifies the Macro-economic factors of the country. In this phase we looked at the criteria of the DESTEP (external factors). In this Western Europe profile of Euro monitor you can see demographic and economic numbers. The number of households is growing and the GDP% ratio is growing as well the last few years. So there are some nice developments for West European countries.The political situation is stable in all the selected European countries as well as the climate (distance is not relevant for Amoria Bond because they sell a service not a physical product).

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For the Middle Eastern countries there are positive future expectations on demographics ratios. According to Euro monitor in 2030 the Middle East and Africa region will reach a population of 1.9 billion people. This is an extremely large increase of 46,9% from 2012. So there is a big market potential in this region to expand for Amoria Bond.

In the line chart above you can see that the population in the Middle East & Africa region is growing much faster than the rest of the world’s population.

Also the economic future expectations are looking decent compared with the considerable political unrest in the region. Euro monitor expects a GDP growth of 3,8% in this year. There are no major climate treats that might stagnate the expansion options of Amoria Bond.

Here is our result after Filter 1 was applied:1. Israel2. Belgium3. United Arabic Emirates (UAE)4. Sweden5. Poland6. Bahrain

These six countries will be analysed by our team in an individual country analysis. Michael Pinto takes care of Israel, Terence ten Berge is responsible for Belgium, Marlotte Windig for the UAE, Kristin Radtke for Sweden, Christina Siffermann for Poland and Jeroen Trommel will take care of Bahrain.

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Filter 2 The second filter goes deeper into the special countries and considers business and market related data criteria. The client is interested in potential growth of sectors in which they are involved. The six countries how were left after filter 1 will be analysed by our team in an individual country analysis with the following criteria.

Criteria Market data

- Growth - Target group people & potential business (min 60K)

Product demand?- Recruitment

Competition/ competitors = 5 forces by Michael Porter Political and law = DESTEP

- Stability Potential:

- Potential market size (population)- Potential market size ( in value)

Potential Market position =- For Amoria Bond ( possible market position)

Connection level / infrastructure (Wi-Fi, cell phone, mobile data) Culture

- Attitude towards foreign investors- Work & career attitude - Hyrargy

GE Matrix (final report)- Modified!

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APPENDIX III Economy

The United Arab Emirates is competitive in many areas of economic freedom. Barriers to trade are quite low, and regulations support open-market policies. With a favourable business climate and political stability, the UAE has created a dynamic entrepreneurial environment for international investors. The financial sector’s overall soundness has improved substantially since the Dubai debt crisis of 2009.

Economic Freedom Snapshot 2016 Economic Freedom Score: 72.6 (up 0.2 point) Economic Freedom Status: Mostly Free Global Ranking: 25th Regional Ranking: 2nd in the Middle East/North Africa Region Notable Successes: Open Markets and Regulatory Efficiency Concerns: Property Rights and Corruption Overall Score Change Since 2012: +3.3

Despite regional political and security instability, the rule of law has been relatively well maintained. The perceived level of corruption has declined, but the judicial system remains inefficient and susceptible to political influence. The UAE, the world’s eighth largest oil producer, maintains a free-market economy and is also one of the most politically stable and secure in the region. This ensures that the country has a robust competitive edge as the region's premier commercial hub and second largest economy. Economic growth in the UAE is steady despite a short-lived hiatus as the global economy faltered. Recovery was helped by high oil prices, increased government spending and resurgence in tourism, transport and trade. In addition, successful restructuring of debt owed by high-profile companies, solidarity among the emirates and accommodative monetary and fiscal policies all played a role in bringing significant economic stability to the market. Following the dip in 2010, UAE GDP rose to reach US$419 billion at the end of 2014, up 4.8 per cent on 2013. The IMF predicts that GDP will continue to grow at a rate of 4 to 5 per cent over the next seven years. Despite high economic performance, inflation rates are expected to remain between 2 to 3 per cent.

Economic ProspectsReal GDP will grow by 3.1% in 2016 – after gains of 3.0% in 2015. Dubai will see steady growth in 2016 as a result of several mega-projects – some associated with preparations for World Expo 2020. In Abu Dhabi,

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Figure 7 Age Pyramid in 2014 and 2030 Source: Euromonitor International from national statistics/UN


expansionary fiscal policies will partially offset the slowdown in oil production. Growth in the UAE’s non-oil sector should pick up in the future after slipping to 4.4% in 2015.Inflation has started to pick up moderately, driven by rising housing prices. Prices rose by 4.1% in 2015 and inflation is expected to be 2.4% in 2016. The government’s decision to remove fuel subsidies will add to inflationary pressures in the future.

Growth of private final consumption (in real terms) was 3.5% in 2015 and gains of 4.3% are expected in 2016. Officially, unemployment is expected to be 4.8% in 2016. Unofficially, double-digit unemployment persists among nationals and is concentrated in the northern emirates. According to the national statistics agency, foreign workers account for just over 88% of the workforce. Growth of the SME sector is a key plank in the government efforts to diversify the economy and create more jobs in non-oil industries. The Khalifa Fund for Enterprise Development launched a host of new initiatives in 2015 to support small and medium enterprises.

After staging a recovery in recent years, the real estate market in parts of the UAE has begun to weaken again. Housing prices in Dubai have been falling since late 2014 as demand slumps owing to weaker oil prices. A drastic collapse is unlikely but the downward trend should improve affordability.

Business EnvironmentThe UAE has no income tax and no corporate tax at the federal level. However, there are different corporate taxes in various emirates. New training and placement programmes are being developed to channel nationals into the private sector. All members of the Gulf Cooperation Council – including the UAE – intend to introduce a federal VAT system and a corporate tax in 2016. VAT laws will have to be harmonised. Some fuel subsidies were removed in 2015. After decades of restrictions, the UAE will allow greater foreign ownership of some areas in the service sector. Foreign businesses are now allowed to own 49% of most businesses but some industries such as insurance are capped at lower shares. A new Competition Law, which came into effect in 2014, regulates economic activities and exploitation of intellectual property rights. It is expected to promote competition and to contribute to efforts to build a knowledge-based economy. Led by high rankings of sub-categories in the World Bank’s Ease of Doing Business 2015, such as a ranking of four (out of 189 countries) ‘Dealing with Construction Permits’ and ‘Getting Electricity’, the UAE achieved the top ranking of 22nd among the MENA nations in the Ease of Doing Business. A relatively low tax rate coupled with a highly favourable tax environment, as represented by a rank of one in the ‘Paying Taxes’ category in Doing Business 2015, have made the business environment of UAE competitive.

Economic Structure and Major IndustriesManufacturing makes up 8.7% of GDP but the government hopes to raise this share to 25% by 2025. The industries singled out to drive this expansion are petrochemicals, automobile parts, shipbuilding, aviation and energy-based activities. Presently, several large aluminium projects are under development. The biggest is a US$5.6 billion aluminium smelter. Abu Dhabi is making a serious effort to encourage manufacturing through projects such as the Khalifa Industrial Zone which allows 100% foreign ownership. Abu Dhabi is also pursuing a diversification strategy that emphasises financial services, petrochemicals and renewable energy.

Abu Dhabi National Oil Co (Adnoc) is halfway through a five-year US$40 billion investment plan aimed at boosting oil and natural gas output. The company has already doubled processing capacity at Ruwais plant. Gas developments will account for US$25 billion of the planned investment.

The real value of tourist receipts rose by 4.5% in 2015 and a growth of 4.1% is forecast for 2016. To attract more visitors, a movie-based theme park known as Dubai Adventure Studios is being built at a cost of AED2.2 billion. Dubai also plans to invest US$32 billion to develop one of the world’s largest aviation mega-hubs. In the financial field, the UAE is regarded as a best-practice model and growth is strong. Lending to the private sector is growing at a brisk pace.

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Overview of the EconomyThe standard of living in the United Arab Emirates is one of the highest in the world. A highly liberal, business friendly and market-oriented growth strategy has reshaped the economy. Over time, growth in the non-oil sector has become an important economic driver as diversification of the economy has proceeded. Driven by construction and services, the non-oil sector grew by 4.8% in 2014. Growth of real GDP slowed to 3.0% in 2015 as oil prices weakened.

Abu Dhabi and Dubai together contribute about 80% of the UAE’s income. Abu Dhabi’s diversification programme has made impressive progress. Its non-oil industries now account for around 48% of real GDP and are larger than Dubai’s entire GDP. Dubai’s diversification efforts were side-tracked by troubles in the financial industry and the real estate market but both sectors have recovered, boosting growth in recent years.

The UAE is the second largest FDI recipient among Arab countries after Saudi Arabia, attracting nearly US$74 billion over the past four decades. As the UAE has developed into a major services hub in the Middle East, its dependency on oil exports has declined.

Economic Diversification Although oil has been the mainstay of the UAE economy and continues to contribute significantly to economic prosperity, a determined and far-seeing policy of economic diversification has ensured that non-oil sectors now account for 69 per cent of GDP, with oil supplying the remaining third.

Abu Dhabi’s Economic Vision 2030 and Dubai’s Strategic Plan 2015 are leading the drive towards diversification. The strategy is to increase investment in industrial and other export-oriented sectors, including heavy industry, transport, petrochemicals, tourism, information technology, telecommunications, renewable energy, aviation and space, and oil and gas services. Much has already been achieved in these fields, especially in satellite and telecommunications, the aviation sector and in renewable energy, and although short-term priorities have been altered to accommodate changing realities, the long-term strategy remains the same.

At the federal level, the UAE is pursuing its 2021 Vision, which aims to place innovation, research, science and technology at the centre of a knowledge-based, highly productive and competitive economy by the time of the federation’s golden jubilee in 2021. Significantly, the jubilee year is also the target date for the launch of the first Arab Islamic probe to Mars by the newly established Emirates Space Agency.

Tourism has played a large part in the success of economic diversification and during 2014 the UAE has continued to strengthen its position as a top tourist destination. Abu Dhabi's 156 hotels recorded their best year ever in terms of visitor numbers, whilst Dubai's 634 establishments have also experienced a significant increase in guests. Other emirates are following suit.

The UAE's two world-class airlines, Etihad and Emirates, as well as constant upgrading of aviation infrastructure, have played a major role in the advance of the tourist industry and are key contributors to the economy. Dubai, in particular, expects that the aviation industry will contribute 32 per cent to its GDP by 2020.

The year 2020 has further significance for Dubai since it is the year (and into the jubilee year 2021) that will host the first ever World Expo to be held in a region that extends from Morocco to India. Expo 2020 expects to welcome 25 million visitors to its many attractions. As well as driving tourism, the Expo will also create thousands of new jobs and enormous demand for new facilities, including housing, hotels, shopping malls and entertainment complexes. This has given a kickstart to the faltering real estate and construction industries. Several key projects placed on hold at the time of the 2008 downturn have been dusted off and are now off the drawing board and into the construction phase.

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http://www.vision2021.ae/

http://www.dubai.ae/

http://gsec.abudhabi.ae/


With the dark days of the slump in property prices now a fading memory, a number of major new development projects have also been announced in Abu Dhabi, Dubai and other emirates.

Foreign Trade Trade has played a major role in UAE economic life for many centuries. This is not altogether surprising considering the country's strategic geographical position. However, focused and far-seeing investment in airports, ports and services, as well as an enabling business environment, has ensured that the UAE has become an important trading hub connecting regional markets to the outside world. Steady recovery of most economic sectors has also led to an increase of foreign trade.

The UAE foreign trade indices bounced back in 2013 to pre-global financial crisis levels whilst bulk commodity exports, including oil, are expected to grow by 5.8 per cent to US$381 billion in 2014, compared with US$354 billion in 2013. The Asia-Pacific region maintained its leading position among UAE's trade partners in terms of non-oil trade, accounting for 43 per cent or Dh106 billion of total direct trade volume. Europe remained in second place, contributing 27 per cent or Dh67.2 billion to total trade, followed by the MENA region with 14 per cent or Dh35.1 billion. The US and Caribbean ranked fourth with 10 per cent of total non-oil trade (Dh24.1 billion), followed by West and Central Africa (4 per cent, or Dh9.4 billion) and East and South Africa (3 per cent or Dh7 billion).

Figure 1 Total Foreign Trade: 2009-2014 Source: Euromonitor International from national statistics/OECD/IMF

Evaluation of Market PotentialGrowth will be below trend as a result of weak oil prices. Real GDP will gradually rise in the medium term, reaching about 3.8% per year by the end of the decade. Tourism and other parts of the non-oil sector should be an important driver. Work will continue on various infrastructure projects, including the expansion of national airports, a rail network, as well as development of tourist facilities, electronic infrastructure, real estate and financial services. Finalisation of the nuclear deal with Iran would have a positive impact on the UAE’s economy.

Softer oil prices will not derail the UAE’s plans to invest up to US$500 billion in infrastructure over the longer term. Key government entities (such as the Abu Dhabi National Oil Company, Dubai Ports Authority, and Dubai Aluminium Company) intend to increase capacity in upstream activities in the petrochemicals sector, improve infrastructure in airports and ports, and develop new manufacturing plants in the metals sector. Over the next five

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to seven years, oil production capacity in Abu Dhabi will also expand from 2.9 million barrels to 3.5 million barrels per day.

Figure 2 Real GDP Growth: 2009-2015 Source: Euromonitor International from national statistics/Eurostat/OECD/UN/IMF

Income and ExpenditureThe UAE’s savings ratio has typically been somewhat higher than the regional average. In 2015, savings were 15.7% of disposable income and the ratio will edge up to 15.8% in 2016. An ageing population should keep demand strong for Islamic savings products.

Consumer expenditure per capita totalled AED84,264 (US$22,945) in 2015. It is expected to grow by 3.1% in 2016 in real terms. In 2015-2030, the UAE’s expanding young and tech-savvy population should boost spending on communications. Health goods and services and hotels and catering will also see large increases in consumer spending. Population ageing and medical tourism development will buoy health outlays. An expected wave of new hotels and malls should bolster demand for catering.

Total consumer expenditure (in real terms) will rise by 4.3% in 2016. In the period 2015-2030, total consumer expenditure will grow at an average annual rate of 4.1%. It will increase by a cumulative value of 83.2% during that period. Total consumer expenditure will be 59.2% of GDP in 2016.

Disposable income per capita amounted to AED104,734 (US$28,518) in 2015. Growth (in real terms) of 3.1% is forecast for 2016.

During the period 2015-2030, total disposable income will increase by a cumulative value of 82.8% in real terms – growing at an average annual rate of 4.1%.

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Figure 5 Per Capita Annual Disposable Income, Spending and Savings Ratio: 2009-2014 Source: Euromonitor International from national statistics/trade sources/OECD

APPENDIX IV Cultural dimensions of the UAE

Power DistanceThe United Arab Emirates scores high on this dimension (score of 90) which means that people accept a hierarchical order in which everybody has a place and which needs no further justification. Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat Individualism. The United Arab Emirates, with a score of 25 is considered a collectivistic society. This is manifest in a close long-term commitment to the member 'group', be

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that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations. The society fosters strong relationships where everyone takes responsibility for fellow members of their group. In collectivist societies offence leads to shame and loss of face, employer/employee relationships are perceived in moral terms (like a family link), hiring and promotion decisions take account of the employee’s in-group, management is the management of groups.

MasculinityA high score (Masculine) on this dimension indicates that the society will be driven by competition, achievement and success, with success being defined by the winner/best in field – a value system that starts in school and continues throughout organisational life.A low score (Feminine) on the dimension means that the dominant values in society are caring for others and quality of life. A Feminine society is one where quality of life is the sign of success and standing out from the crowd is not admirable. The fundamental issue here is what motivates people, wanting to be the best (Masculine) or liking what you do (Feminine).

Arab Emirates scores 50 on this dimension and can be considered to be neither Masculine or Feminine.

Uncertainty AvoidanceArab Emirates scores 80 on this dimension and thus has a high preference for avoiding uncertainty. Countries exhibiting high Uncertainty Avoidance maintain rigid codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas. In these cultures there is an emotional need for rules (even if the rules never seem to work) time is money, people have an inner urge to be busy and work hard, precision and punctuality are the norm, innovation may be resisted, security is an important element in individual motivation.

APPENDIX V PoliticsType of StateFederation uniting seven emirates: Abu Dhabi, Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah and Umm al-Qaiwain.

Political Stability and RisksIncreasingly, alarmed by Iran’s growing military prowess, the government of the UAE is spending US$35 billion to modernise its own military. The royal families in the seven Emirates are under pressure to cede more of their powers to the private sector. Growing unrest in the Arab states prompted the government to pledge to invest more than US$1.5 billion in utilities infrastructure in the poorer members of the federation. Al-Qaeda has repeatedly threatened attacks on western businesses in the country. All the emirates are concerned about the high percentage of foreign workers residing in the UAE and are trying to reduce this number. Despite their efforts, immigrants continue to flock to the Emirates.

International IssuesThe UAE and Iran dispute the ownership of three islands which are strategically located in the Strait of Hormuz. Iran’s goal of becoming a nuclear power also affects the UAE. The Emirates fear that they may be the first point of any attack by Iran. The UAE, Saudi Arabia and other Gulf allies are conducting a military campaign, including air strikes, against Houthi fighters in Yemen. The UAE is hosting about 150,000 refugees mainly from Yemen and Syria.

Business Legal StructuresLocal individuals and foreign investors interested in establishing a business presence in the UAE must begin by determining the appropriate form of business ownership necessary for their desired business venture. The

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selected business legal structure will determine the requirements and conditions in obtaining the business license, how the business is organized and how the money that flows in and out of the business is handled.

Executive Power Each Emirate is governed by an Emir and has its own administration. Every Emir manages his Emirate's resources autonomously.The Supreme Council of Emirs is the highest authority of the UAE; it holds legislative and executive powers. The Emir of Abu Dhabi, the biggest oil producing Emirate, was elected President of the UAE in 2004, succeeding his father. The Emir of Dubai has been nominated the Vice-President and Prime Minister.

Legislative PowerThere is only one Chamber: The National Federal Council. It consists of 40 members of which 20 are appointed by the President and 20 are elected, whereby each Emirate has a number of representatives equivalent to its demographic weight. Their mandate is for two years. This council has only consultative functions.

Main Political PartiesThere are no political parties.

Current Political LeadersPresident: Sheikh Khalifa bin Zayed Al Nahayan (since November 2004)Prime Minister: Sheikh Mohammed bin Rashid Al Maktoum (since January 2006)

Election datesIn 2011, voters went to the polls to select 20 members of the Federal National Council. However, less than 1% of the population were allowed to vote. In December 2005, Sheikh Khalifa bin Zayed Al Nahyan was elected president by the Federal Supreme Council following the death of his father, the previous head of state. Sheikh Khalifa also succeeded his father as the ruler of Abu Dhabi. In January 2006, Maktum bin Rashid Al Maktoum, the prime minister of the UAE and emir of Dubai, also died. He was replaced by Mohammed bin Rashid Al Maktoum, a member of the same clan.

Next election datesPresidential Election: 2019Designation of members of the National Federal Council: 2015

The UAE is considered one of the least corrupt countries in the Middle East, and the government has taken steps in recent years to increase efficiency and streamline bureaucracy. In February 2014, authorities began to operate a website inviting citizens to provide feedback on government operations and propose new initiatives. The UAE was ranked 25 out of 175 countries and territories surveyed in Transparency International’s 2014 Corruption Perceptions Index.

IncomeThe UAE has one of the highest per capita income levels in the world and a highly developed welfare system. It also has one of the lowest rates of unemployment in the Middle East (4.5%) and depends heavily on foreign labour (more than 85% of the workforce). A policy of "Emiratisation" has been launched to encourage employment of the local workforce. The Gross Domestic Product in the United Arab Emirates is 356.22 USD billion and expanded 3.1 percent in 2016 from the previous year.

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JurisdictionThe UAE is essentially a civil law jurisdiction heavily influenced by French, Roman, Egyptian and Islamic law. Adopting previous court judgements as legal precedents – a common law principle – is generally not recognized although judgements by higher courts are usually applied by lower courts. Only local firms may appear as counsel before court.

Arbitration is gradually becoming a popular method of dispute resolution in the UAE as it has established itself as a regional hub for international business. Although there is a federal court structure with a final court of appeal in Abu Dhabi (the Abu Dhabi Supreme Court), both Dubai and Ras Al Khaimah are not part of the federal judicial system. Unlike the other emirates, Dubai and Ras Al Khaimah have their own court systems, which are not subject to the federal Supreme Court. There are three main branches within the court structure: civil, criminal and Sharia, or Islamic, law. The court structure in Dubai is comprised of the following courts: the Court of First Instance, the Court of Appeal and the Court of Cassation. The Court of First Instance includes the Civil Court, the Criminal Court and the Sharia Court.

Sharia or Islamic courts work alongside the civil and criminal courts in the UAE. The Sharia court is the Islamic court in the UAE and is primarily responsible for civil matters between Muslims. Non-Muslims will not appear before a Sharia court in any matter. Sharia courts have the exclusive jurisdiction to hear family disputes, including matters involving divorce, inheritances, child custody, child abuse and guardianship of minors. In the absence of any particular provision in the UAE codified law, the Islamic principles of Sharia as found in the Islamic Sharia textbooks are applied.

The Sharia court may, at the federal level only (which, as mentioned earlier, excludes Dubai and Ras Al Khaimah), also hear appeals of certain criminal cases including rape, robbery, driving under the influence of alcohol and related crimes, which were originally tried in lower criminal courts.

APPENDIX VI Competitor analysisIn this part of the report the competitors of Amoria bond shall be analysed. The recruitment sector worldwide accounts for approximately 333 billion Euro’s and counts 137.300 recruitment agencies.

Amoria Bond is specialized in the following sectors: Engineering Oil & gas Power & energy ICT

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Pharmaceutical Life sciences

The direct competitors of Amoria bond are: Red recruitment Real staffing Progressive Huxley associates Computer Futures Michael Page Hays Robert Walters Plus Local specialists

Amount of competitors in the NetherlandsAccording to recruitment.nl the Netherlands count 481 recruitment agencies counting 34.000 employees (2013). These recruitment agencies form the direct competition for Amoria bond because they are providing the same services and are trying to serve the same customers. However Amoria bond only focusses on the highest (Professional) segment of the market. Therefor not all of these recruitment agencies are serving the same customers, these agencies are indirect competitors. The best example of a direct competitor in the Netherlands is Yacht a company by Randstad. Randstad search & selection is a well-known recruitment bureau in the Netherlands. Yacht is a division of Randstad that only focusses on the higher segments of the market. Yacht provides professionals for the following sectors:

IT Finance Egineering HRM Legal Marketing & Communications Supply Chain Management & Procurement

Comparing this list with the list of Amoria bond, it can be said that Yacht is a direct competitor of Amoria bond in the Netherlands.

Indirect competitorsThey indirect competition for Amoria bond is a little more complicated. Because Amoria bond only provides a service which is helping with selection and recruitment for companies. Therefor one of Amoria bond’s indirect competitors could be online platforms. Companies could fulfil their job vacancies by posting a vacancy on LinkedIn or a different platform and professionals can apply for jobs via these platforms. In actual practice this won’t happen a lot because companies looking for professionals are willing to spend money to find they right person to fulfil their vacancy.

Amount of competitors in the United Arab EmiratesDubai has more than its fair share of recruitment companies and consultants. Some of these have a brilliant reputation, with many years of experience in the UAE and Middle East job market while others have received negative reviews from their clients. Sometimes are these reviews from competitors trying to sabotage their reputation. The list of agencies compiled below have a good understanding of the UAE and Middle East job

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markets, have dedicated and experienced recruiters for different career fields, great customer service with a high percentage of successful placements and a large network of companies with which they have contracts.

BaytBayt is the leading job site in the Gulf and Middle East. The recruitment agency has no physical aspect but has been in business in the region since 2000 and knows the region well. Because of their long experience they’ve been able to engage the top companies in the region. Bayt caters to all industries at all career levels.

Business sectors that match with the specializations of Amoria Bond: Engineering Technology/IT

Kershaw LeonardEstablished in 1999, the recruitment agency is well-known for providing quality services tailored to the Middle East job market. In order to find the best match for their recruitment needs they conduct extensive reviews with employers. The agency has an extensive network of clients and is affiliated to several professional organizations including the Recruitment and Employment Confederation, UK.

Business sectors that match with the specializations of Amoria Bond: Engineering IT and Telecoms Pharmaceutical Oil & Gas

HaysHays has built up a reputable clientele across the Middle Eastern region with 28 global partner countries to provide world-wide talent to local employers.The agency has an extensive database of local job seekers which is backed by experienced consultants with knowledge of the local job market and its sectors.

Business sectors that match with the specializations of Amoria Bond: Engineering Technology/IT Life Sciences Oil & Gas

NADIAFounded in 1983, NADIA has been sourcing and identifying candidates with unique qualifications for the last 30 years. With three decades of market experience, NADIA’s recruitment consultants undergo constant training to keep up with global and local market trends. NADIA keeps an online database with an extensive pool of candidates for their client’s benefit.

Business sectors that match with the specializations of Amoria Bond: Engineering & Technical

BAC Middle EastEstablished in 1979, BAC, headquartered in the Dubai International Financial Centre, provides professional recruitment services to top-level companies looking for all levels of employment from junior to senior management in a wide sector of fields.

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Business sectors that match with the specializations of Amoria Bond: Engineering

Charterhouse Middle EastCharterhouse Middle East has been in the talent acquisition business in the Middle East for the last ten years and has offices in Dubai and Abu Dhabi. Business sectors that match with the specializations of Amoria Bond:

Oil & Gas IT

Michael PageA division from the PageGroup, Michael Page consultants are experts on placement of employees in full-time, part-time, permanent or temporary positions in several sectors in the Middle East. Other recruitment agencies/ specialists include: Randstad, Taylor Sterling, REED, Naukri, GulfTalent and several more.

Business sectors that match with the specializations of Amoria Bond: Engineering & Manufacturing Life Sciences Oil & Gas Information Technology

Competitors of Amoria Bond in the UAEHays and Michael Page are the most risky competitors for Amoria Bond due to the direct competitors of Amoria Bond and the competitors in the Emirates.

Competitor matrixAmoria Bond is located in the middle of the matrix. The competitor matrix has been made due to the specialized sectors of the competitors.

Michael Page, Hays and Kershaw Leonard are the three competitors in the UAE who are risky for Amoria Bond because of the most similar matching sectors. Because of the fact that Michael Page and Hays are already known

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by Amoria Bond, Kershaw Leonard will be a good opportunity for Amoria Bond. Because of the similar sectors it is maybe possible for Amoria Bond to take the company over.

APPENDIX VII VRIO analysis For the export plan it was decided to apply the VRIO framework because with help of this tool it is possible to analyse a corporation’s internal resources and capabilities to find out if they can be a source of a sustained competitive advantage.

The VRIO analysis was developed by Barney, J.B. According to him, the resources must be valuable, rare, imperfectly imitable and non-substitutable / organized to capture value. Only if one internal resource or capability meets all four requirements, it can bring sustained competitive advantage for the company.

With this type of analysis one can directly see which internal resource is / are the most important one/s on which Amoria Bond can rely on. Furthermore, the company sees which resource is a competitive disadvantage, thus they know where further work has to be put in to assure not being inferior to other companies in the recruitment business of the UAE.

FinancialThe financial resource always is a valuable resource. Without money a corporation could not exist and therefore it could not add value without a certain amount of capital. In addition to this, financial resources can be used to defend the organisation against threats. One threat of Amoria Bond is for example the competitive condition. To fight against this the company could use a part of their money to finance a market research. Like this it would be possible to benefit from the mode of operations of the screened corporations. Another possibility how the financial resource could defend Amoria Bond against threats could be to use a certain amount of money for installing air conditioning systems in their offices. Like this the climatic condition is not longer a threat and the employees of Amoria Bond can work without being influenced by heat.

Unfortunately, the financial resource is not rare. All the other staffing agencies have this financial resource, even in a much greater amount. The competitor Hays for example is a much bigger company than Amoria Bond and they thus have a much better position regarding the financial capital (Hays: 2016). This directly excludes the question whether it would be costly to imitate. Of course it would be, to become as big and successful as the most successful recruitment agencies in the UAE would require a lot of time, money and effort (Hays:2014). Due to the reason that the two previous questions have been answered with “no” the last point of whether the financial resource is organized to capture value can automatically be neglected.

TechnologicalDue to the reason that Amoria Bond does not have any special technologies that could create value or defend them against threats this tangible resource is a competitive disadvantage (Amoria Bond: 2016). But this is standard for a recruitment agency, possible competitors in the UAE do not focus on developing technologies but on recruiting the best people and on setting their clients satisfied. Resulting out of this, it can also not be rare, costly to imitate or organized to capture value.

InnovationThis competence is not valuable for Amoria Bond. Furthermore this resource cannot be rare, costly to imitate or organized to capture value. Therefore it is a competitive disadvantage. Amoria Bond does not have any special innovations which would distinguish them from their competitors in the UAE.

Human Capital and family member system:

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Human capital is the most important resource for a staffing or head-hunter firm like Amoria Bond; it is not possible to exist and to make profits without this resource. Thus it is valuable. In addition to this their family member system is rare because it is a system not used by corporations in the UAE. Other recruitment agencies are directly paid by the companies that hire their services. They do not get a certain salary of the employed people like Amoria Bond does. It is furthermore costly to imitate; a lot of work would be needed to put in the change of the system. This system perfectly fits for Amoria Bond, they are already used to it and they applied it in other countries. So it is organized to capture value by allowing Amoria Bond to generate great amounts of turnover in the short and also in the long run. It is obvious that this is a sustained competitive advantage for this particular company.

ReputationAnother sustained competitive advantage is Amoria Bonds reputation. It exploits their opportunities to attract companies looking for an agency that finds matching employees for a vacancy. Thus it is valuable. It is furthermore rare. Even if there are other companies that have won awards for their work in the UAE (TASC: 2016). Amoria Bond can show a very good reputation, they are the only recruiter to have uniformly won awards from across the industry and also outside of it (Amoria Bond: 2016). Such a good reputation would be costly to imitate for other companies because a lot of time and effort would be needed to win as much awards as Amoria Bond. Thus it is organized to capture value, even in the long run. Corporations which want a free position to be filled and which are looking for a staffing agency to carry out this work for them will notice Amoria Bonds awards and nominations. In many situations their reputation will convince the organizations to hire them.

Selection processA successful selection process always adds value to a recruitment agency. It helps to find matching candidates for a corporation. Only if the selection process is successful and the corporation is satisfied and wants to hire the presented employee, profits are made. Thus it is a valuable intangible resource for Amoria Bond. But even if Amoria Bond uses a good selection process it is not rare in the UAE, there are too many competitors whose selection process also leads to success (LivinginDubai:2014) Therefore this resource cannot be costly to imitate and also not organized to capture value.

Post Placement SupportThis is a valuable resource since it adds value by enabling Amoria Bond to exploit the opportunity to attract family members. After the selection process was done, the employees still remain a part of the company. Amoria Bond provides them with further training and support and like this the employee is more qualified. This means that the employee is more valuable and thus earns more money for Amoria Bond (Amoria Bond: 2016). Furthermore it is rare because it is normally not offered by other recruitment agencies in the UAE (Alldubai:2015).Therefore it is also costly to imitate. Other organizations would need to put a lot of effort, time and money in the development of a post placement service. Thus they cannot substitute is at a reasonable price. For Amoria Bond it is not expensive since they already have gathered experience with this service in other countries. Now they could simply adapt this in the UAE. The last point that sets the post placement support as a sustained competitive advantage is the fact that it is organized to capture value. This kind of support fits perfectly into the structure and mode of operation of Amoria Bond. Due to the fact that their employees remain family members by generating profits for Amoria Bond they are supported by them. Like this the corporation develops higher skilled employees which rest valuable family members for them.

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APPENDIX VIII Accounts– Amoria Bond 2010 - 2014

https://companycheck.co.uk/company/05895820/AMORIA-BOND-LIMITED/financial-accounts

Formula Return on Capital Employd

Net Operating Profit (1,151,524 ) = 1,08 pound (year 2014)

Total Assets less current liabilities (1,061,372)

Equity in %

Equity in % = Shareholder funds /(total current assets + tangible fixed assets)*100

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https://companycheck.co.uk/company/05895820/AMORIA-BOND-LIMITED/financial-accounts


this ratio shows the worth of the company (shareholder funds) as a percentage of total current and tangible assets.) [Amoria Bond Limited;companycheck.co.uk.:2016]

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APPENDIX IX Organisational chart of Amoria Bond

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Mem

ber o

f Exe

cutiv

e Bo

ard

Sing

apor

e

European Director Amsterdam /Cologne

Senior Client Manager, Amsterdam, Netherlands

Business Manager, Executive Search, Power&Energy Division, Amsterdam

Co-Founder and Director Cologne

Senior Recruitment Consultant

Lead Recruitment Consultant European SAP Division

Business Manager European Contract Teams

Business Manager

Head of Executive Search, Manchester, UK and Netherlands

Senior Internal Recruiter for the UK & Cologne, Manchester, UK

Manager for IT-Sector, London, UK


Gareth Lloyd - Managing Director at Amoria Bond – Singapore Member of Executive Board

o Responsible for group policy globally o Covering strategic and financial process o Qualification: BA(hons), Geography – The University of Manchester

Nick Barrow - European Director - Amsterdam, Netherlands and Cologne, Germany - SAP Manager - Responsible for Amoria Bond Charitable Trust

Daniel Daw – Co-founder & Director – Cologne, Germany - Lead and manage global teams - Qualification: BA (Hons) in German and Social Science – The University of Manchester, UK

Jochen Büscher: Senior Recruitment Consultant, Cologne, Germany Jorn Job Klaver: Business Manager European Contract Teams, Cologne, Germany Andrew Beard: Business Manager, Cologne, Germany Florian Seng: Lead Recruitment Consultant European SAP Division, Cologne, GermanyHelen Kirton: Business Manager, Executive Search, Power&Energy Division, Amsterdam, NetherlandsAbi Agyeman: Senior Internal Recruiter Cologne, Germany and Manchester, United Kingdom Dean Whittingham: Senior Client Manager, Amsterdam, NetherlandsKatie Howard: Head of Executive Search, Manchester, UK and NetherlandsHendrik Kuhlmann: Manager for IT-Sector, London, UK

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APPENDIX X Strengths and Weaknesses In this part of the SWOT analysis the strengths and weaknesses of Amoria bond will be analyzed. This is about the internal factors of Amoria Bond, it is a summary of the 7s model of McKinsey. The goal for Amoria bond too become the best recruiter of Europe and other places is a strength of them. The different between Amoria bond and other recruitment companies is that they call their employees ‘’family members’’. This creates a nice and comfortable culture in the company. For the customers this is more trustworthy, and this improves the relationship. Also Amoria bonds ambition is a strength, they want to double their employees within 5 years.

The s of system could be a threat to Amoria bond, because this system is based on the culture of Europe. There is a totally different culture in the UAE, in the western culture there is not a big influences of religion. But the UAE has a lot of influents by the Islam. Because Amoria bond is working on provision basis this could be a problem for the internal relationships between colleagues, because everyone wants to get their target. For more success Amoria Bond spend annually 10.500 pound per employee for Training & Development. The internal culture is high life-style oriented. This is an internal strength of Amoria bond. The western part of the world is overall more developed than other parts of the world, this might be a strength because the experience can be brought to UAE. Because the company is already international oriented this might be a strength for the company. The financial power of Amoria bond is a strength, the big capital has a lot of potential to expand a new business. It might be a good idea to create a bigger marketing budget, to promote their brand equity.

Opportunities and threats Opportunities and threats are part of the SWOT analysis. The O and the P are external factors; they are also called MACRO factors. The MACRO factors are difficult to influence for a company. We analysed the Opportunities and Threats of the United Arab Emirates (UAE). The United Arab Emirates (UAE) is one of the most diversified economies in the region. It continues to enjoy stable growth backed by strong government expenditure and growth in the non-hydrocarbon sectors, though growth is expected to moderate in 2015 amid lower oil prices. The real estate market is stabilizing, though inflation is expected to rise in 2015. Despite diversification efforts, dependence on oil is still high making it vulnerable to fluctuations in global oil prices.

The United Arab Emirates (UAE) is one of the biggest economies in the Middle East and Africa region. With a GDP of 400 billion euro’s the United Arab Emirates (UAE) is the fourth largest economy in the region behind Saudi Arabia, Iran and Nigeria. Over the 2009-2014 period, the real economy posted an annual average real growth of 4.0%. But since 2014 the GDP growth slowed down a little bit because of the lower oil demand and softer global oil prices. In 2013 the United Arab Emirates (UAE) had a growth of 5,3% and in 2014 a growth of 3,6%. The instability of the oil prices can be considered as a threat for Amoria Bond. The annual real economic growth of the United Arab Emirates (UAE) is expected to slow down slightly to 3.2% in both 2015 and 2016.

Political power is concentrated in Abu Dhabi, which controls the vast majority of the UAE’s economic and resource wealth. The two largest emirates – Abu Dhabi and Dubai – provide over 80% of the UAE's income. In 1996, the UAE’s Federal National Council approved a permanent constitution. The establishment of Abu Dhabi as the UAE’s permanent capital was one of the new framework’s main provisions.

What we consider as another threat for Amoria Bond is the religious influence and the sharia law. The United Arab Emirates (UAE) provides for freedom of religion in accordance with established customs, and the government generally respects this right in practice; however, there were some restrictions. The federal Constitution declares that Islam is the official religion of the country. The government follows a policy of tolerance

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toward other religions and rarely interferes in the activities of non-Muslims. By the same token, non-Muslims are expected to avoid interfering in Islamic religious matters or the Islamic upbringing of Muslims. For example the national dress code. The UAE has a modest dress code. This dress code is part of Dubai’s criminal law. Most malls in the UAE have a dress code displayed at entrances. At Dubai’s malls, females should cover their shoulders and knees; therefore women are not permitted to wear sleeveless tops. Exports are very important as the UAE acts as a re-export hub for other countries in the region. Lending to the private sector is growing at a brisk pace. The government’s decision to remove fuel subsidies will add to inflationary pressures. Because the UAE is exporting more than they are importing, trading is very important for them. This can cause some troubles in communications. At least Amoria Bond has to be reckoned with a couple common behaviors in the UAE. Like no kissing and hugging, No swearing/making indecent gestures, No taking pictures of others without permission, disrespecting any religion, No sharing private space with opposite sex, No indecent clothing (what means no shorts and skirts above the knees). But luckily for Amoria Bond the advantages overweigh the disadvantages. The gross value is rising in the relevant sectors for Amoria Bond and the position of the Dubai International Financial Centre as an international financial hub has strengthened over the past few years. So the financial stability is a stable base to start a foreign investment in the UAE for Amoria Bond. Finally the last two opportunities in the United Arab Emirates are the ongoing technical developments and the rising young demographics. The Diversification has led to growth and advancements in multiple sectors relevant to Amoria Bond:

* Engineering & Construction is at an all-time high and still increasing. * Power & Energy is expanding into cleaner and more sustainable sources. * IT services are incorporated in the country’s government and in the growing UAE financial sector. * Aerospace activity has boomed and is still booming because of the UAE’s strategic location and immense national airlines. * Pharmaceuticals are less imported and more produced locally.

The UAE will be towards 2020 definitely go on to transform the country into a major technological hub not just within the region but also at a global level. This will match the Hi-tech specialization of Amoria Bond perfectly. Below is a summarized list of the opportunities and threats of the United Arab Emirates (UAE).

APPENDIX XI Information confrontation matrixIn this part of the appendix, the confrontation matrix that can be found in the main report shall be examined more closely. The strengths versus opportunities and the weaknesses versus threats of the confrontation matrix shall be examined.

Strengths versus opportunities The first strengths of Amoria bond is, that they are an award winning company. In the last few years Amoria bond has won over 10 prizes. This strength has a positive effect on the following opportunities: Professionals passively looking for a job and companies with a big budget. When professionals who are passively looking for a job get in touch with an award winning company, they are more and more likely to cooperate with Amoria bond because these prizes gain trust. For the companies with a big budget the same aspects plays a major role. These companies are more likely to hire Amoria bond (a company with a lot of prizes) than a company without any recognition. The second strength of Amoria bond is, that they are specialized in engineering. This strength has a positive effect on the following opportunities: Countries with a big service sector and countries with a skill shortage. Because Amoria bond is specialized in engineering countries with a big service sector are more interesting for them (because engineering is a service). These countries provide Amoria bond with a bigger market than countries with a smaller service sector. Companies within countries struggling with a skill shortage are more likely to hire a company like Amoria bond. Because in these countries job vacancies are not likely to be fulfilled. Amoria bond will perform the searching for a professional for them.

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The Third strength of Amoria bond is, that they offer great careers. This strength has a positive effect on the following opportunities: countries with big service sectors and professionals passively looking for a job. In countries with a big service sector Amoria bond is more likely to offer their services as they mainly focus on the service sector. If they offer professionals that are passively looking for a job such a great job opportunity we are sure that they are willing to cooperate. The last strength of Amoria bond is, that they offer an all-inclusive service and create trust. This strength has a positive effect on the following opportunities: Professionals passively looking for a job and companies with a big budget. Professionals that are passively looking for a job are probably willing to cooperate with Amoria bond faster when a relationship of trust is formed. Companies with a big budget are more likely to hire a company with an all-inclusive service over a company without an all-inclusive service.

In conclusion it can be said that the strengths of Amoria bond are perfectly for adapting to the opportunities that suit them. With an overall score of +26 Amoria bond has nothing to fear of.

Weaknesses versus threatsThe first weakness of Amoria bond is that they are focussing on a niche market (professionals earning over $60.000). This weakness has a negative effect when we take a look at the following threat: Amount of competitors is rising and will keep rising in the near future.

Because Amoria bond focusses on a niche market the competition they face still is low. However the competition is still rising and the probability is growing that a competitor will start operating in the same market segment in the near future. Therefor Amoria bond is unable to defend themselves against this threat. The only solution is focussing on a broader market segment when this happens.

The Second weakness of Amoria bond is that they use a very aggressive way of acquisition. A lot of companies and employees will not like this method. This weakness has a negative effect on the following threat: substitution. Because Amoria bond uses a slightly aggressive way of acquisition we are pretty sure that some companies do not like this method. Therefore, the threat of substitution will rise. If companies are able to use a substitute product or service they probably will prefer use of this product over the service of Amoria Bond. The Last and most important weakness is that Amoria bond doesn’t keep up the personal contact on the long term. This has impact on the following weaknesses: all of them.

If competitors or substitute product guarantee a long term relationship people are more likely to make use of the competitors because most people like it when they get personal attention.

In conclusionIt is very important for Amoria bond to improve their weaknesses because they have a huge impact on the confrontation matrix. It is also important to improve these so they can withstand the upcoming competition mentioned in the threats of the macroeconomic factors. After improving the weaknesses the confrontation matrix should contain more green sections and an overall positive score.

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http://serv1.datalog.co.uk/docs/05895820_AMORIA-BOND-LIMITED_2013-11-30.pdf

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