Leadership Capability Framework Student’s Name Institutional ✓ Solved

Etisalat operates as a telecommunication group company in Dubai. The communication company started as a joint venture company between a British company and a local partner in 1976. The company’s ownership changed seven years after its incorporation into a public corporation with the government of the United Arab Emirates owning about 60% of the company’s shares while 40% were traded to the public. Being a public company, Etisalat was granted priority licensing to offer telecommunication services in the country and beyond the UAE borders.

The company also had the rights to license, own, and import any telecommunication equipment. Etisalat was overprotected by the government to outdo Telecom, the giant communication service provider in the country. The headquarters of Etisalat Communication Company is located in Abu Dhabi. Some of the telecommunication services provided by the company include 3G and 4G internet access, broad internet services, and dial-up internet services. The company operates izones in malls, restaurants, and cafes.

Literature Review

The company’s business model is based on meeting the business needs and its customers’ expectations using continued investment in their networks for wider coverage, greater capacity, and innovative services. The aspiration of the company is to be the best and most admired telecom market group. The success of the business model is achieved by the company’s strategic pillar and a well-balanced asset portfolio.

Etisalat's organizational structure is extensive, indicating a large task force, with each department functioning like an independent entity under a single director. This structure suggests that tasks within departments can be divided further into sub-tasks. The decision-making process at Etisalat follows a hierarchical structure while allowing each department the autonomy necessary for efficient operations. This flexibility is critical to ensuring operational effectiveness and meeting organizational goals.

Organizational Culture

The organizational culture of Etisalat reflects the cultural diversity of the United Arab Emirates. Employees come from various backgrounds, enabling the company to provide services accessible to a broad spectrum of customers. The target demographic includes users from different cultures, and services are often offered in multiple languages, highlighting the company's commitment to inclusiveness and customer service.

PESTLE Analysis

Political Framework

Since its inception, Etisalat has received substantial support from the UAE government. In 1993, it was granted exclusive rights to license communication activities in the UAE. Currently, government influence is significant, given its 60% ownership stake, which impacts operational efficiency and competition within the industry.

Economic Analysis

Economic factors such as inflation, exchange rates, and GDP influence the operational environment of Etisalat. The company operates in a duopolistic market characterized by limited competition, which presents both significant opportunities and challenges in maintaining profitability.

Social Environment

The social environment encompasses cultural values and beliefs that affect consumer preferences and behaviors. Etisalat only succeeds by understanding and adapting to these social dynamics, ensuring its products and services resonate well with the community.

Technological Factors

As a telecommunications provider, Etisalat's operations are heavily reliant on technology. To remain competitive, it must continually innovate and provide up-to-date communication services. Ongoing investment in advanced technology is necessary to attract and maintain a loyal customer base.

Environmental Factors

With increasing global awareness of environmental issues, Etisalat must adhere to strict ecological standards. Engagement in sustainability initiatives can enhance its brand reputation and support long-term profitability.

Legal Framework

The legal landscape surrounding telecommunications is complex, influenced by regulations that govern consumer protection and employment. Compliance with these regulations is essential for maintaining operational legitimacy.

Leadership Style

Leadership at Etisalat can be described as democratic, with directors supported by a structure that allows for independent operation while remaining interconnected. This system emphasizes collaboration and empowers employees, fostering an environment of shared goals.

SWOT Analysis

Strengths

Etisalat boasts a large subscriber base, estimated at 142 million as of December 2017, with expected annual growth. Additionally, its close relationship with the government enhances its operational stability.

Weaknesses

As a multinational corporation, Etisalat faces operational challenges in markets like Pakistan, hindered by ongoing regional instability.

Opportunities

The rapid evolution of technology presents numerous opportunities for growth, particularly through investment in emerging trends such as the Internet of Things.

Threats

Currency fluctuations and market saturation, with numerous competitors offering similar services, pose significant threats to Etisalat’s market share.

Conclusion

Etisalat’s leadership and capability framework is essential in navigating the competitive telecommunications industry in the UAE and beyond. Its strategic approach aligns with both internal strengths and external opportunities while effectively countering weaknesses and threats. For sustained success, the company must continue to adapt its leadership styles and organizational strategies in response to the evolving market landscape.

References

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