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Table of Contents
Importance
of Environmental Analysis
Industry
– Porter’s 5 Forces Analysis
Scope of
Operation and Regulatory Requirements
Production
Arrangement and Memberships
IT Company in Oman
In recent years,
the Sultanate of Oman has witnessed significant changes in its economy, with
its business sector expanding significantly. This has opened new opportunities
for entrepreneur to start their own businesses in Oman make them effective in
the market. This would serve to not only profit the businesses but also the
Omani economy. There are a number of sectors in which businesses can operate
but in this case the IT sector or Information and Technology sector of Oman has
been selected because there are not many businesses in IT sector that offer
technological solutions for every sector of business such as inventory
management, supply chain management, financial reporting etc. In this paper,
the Omani market for IT sector will be analysed and different aspects of the
business will be elaborated.
It can be noted that this company is belonging from the technological
industry.
For every business,
both established and new, analysing the environment is considered one of the
most important things that it needs to do for operating effectively in the
market and achieving success. It would not be wrong to say that the accurate
analysis market is directly proportional to the success of a firm in the
market. In general, environmental analysis is concerned with acquiring insights
into the market in which the business is going to operate. For instance, since
my IT business, “Ignition Inc.” is to operate in the Omani IT sector, it is
considered critical to analyse this sector for ensuring that the environment is
feasible and entry into the market does not have any barriers. If all of these
aspects are not analysed, it becomes impossible for a business to operate
effectively. For instance, since it would not be known whether there are some
legal technicalities or issues, the business might not even be able to operate
in the market because of the issues. Therefore, for starting a new business and
maintaining the effectiveness of an established business, environment analysis
is considered crucial
In general,
environment analysis can be performed through a number of techniques such as
PESTLE analysis and Porter’s 5 Forces analysis. Both of these techniques are
considered external analyses as they analyse the environment in which the
business is going to operate. In this case, PESTLE analysis is considered
because the business is new.
Political: The political environment of Oman is feasible in terms of IT sector
because there are no such regulations or laws which restrict the operations of
business.
Environmental: It will be important for the business to consider sustainable
practices for ensuring that no harm comes to the environment as there are
strict policies about environmental sustainability.
Socio-economic: The socio-economic status of the environment is also feasible and it
does not present any threats to the presence of business.
Technological: Although there is a lack of advanced technologies present in the
market, these technologies can be imported.
Legal: The legal environment is also stable because there are no such
imposing laws that require businesses to share property or pay higher taxes.
Economic: The economy of Oman is growing gradually and it presents
opportunities to new businesses
For analysing the industry, Porter’s 5 Forces analysis is selected.
Bargaining Power of
Suppliers: In the IT sector, the bargaining power
of suppliers is low because advanced technologies are not available and they
will have to be imported.
Threat of Substitutes: In Oman, there are not many IT companies, especially those companies
that offer customised solutions to business for their operations. Thus, the
threat of substitutes is quite low.
Bargaining Power of
Buyers: Considering the fact that there are not
many providers of the same solutions, the bargaining power of buyers is
moderate.
Threat of New Entrants: This force is high because there are not many barriers to entry in
the Omani IT sector.
Industry Rivalry: Industry Rivalry is quite low in Oman because there are not many
competitors in the sector
In the Omani IT
sector, there have been significant advancements in recent times with the
introduction of new technologies that improve the existing business processes
along with businesses realising the importance of and adopting technological
methods of performing tasks. This trend of relying on IT’s prowess for
performing business operations presents significant opportunity for Ignition
Inc. to introduce customised solutions for the enhancement of traditional
business processes and operations.
The development of
Ignition Inc. is suitable in the current Omani IT sector because there are not
only opportunities for the business to be successful in the market but there
are also little to non-existent competition in the market. The business will
target other businesses that aim to enhance their processes and achieve more
efficiency in terms of processes and their operations. Actually, what makes it
adequate for Ignition Inc. to operate in the sector is that the IT sector of
the nation is developed just like other business sectors. Businesses are
considering new modes and methods of doing their business. For instances,
businesses are relying on automated supply chain and logistics for achieving
improved results. It presents opportunities for Ignition Inc. to gain customers
and sell its services and solutions to other businesses
For businesses,
devising marketing mix is considered an irreplaceable aspect. The main reason
why it is so important is because it gives direction to business about its
target market. For instance, a marketing mix needs a business to provide
information about its products, the pricing strategies that will be used by it,
promotions strategies, and which location will be targeted by the business
where these products and services will be sold
Product of IT Company in Oman
For Ignition Inc.
there are a number of products that will be produced by it. Some of its key
products are automated software for supply chain, logistics, financial
management, human resource management, and operations management. In addition
to these solutions, there will be a service that will provide customised
solutions to businesses according to their requirements. For instance, if
businesses require a solution for operations management with some specific
features and capabilities, then they can be delivered such a solution.
Price of IT Company in Oman
Although there are
a number of pricing strategies that can be considered by Ignition Inc. for
ensuring that its products are sold, penetration pricing strategy is selected.
This pricing strategy has been chosen because it will help the new products
offered by the business in penetrating the Omani IT market. The business does
not have a customer base at the moment and in order to develop this customer
base, it is more than just a little important for the business to first attract
clients. In order to attract business clients, penetration pricing strategy is
selected. In this strategy, lower prices for products will be set and it will
serve to attract customers. Actually, these lower prices will play an important
role in ensuring that Ignition Inc. gets customers and it stays competitive in
the market. Even though the competition is not high, it will enable the
organisation to develop a customer base in the market. Moreover, the price of product
will be increased according to the time. This is because when the business is
started then price will be normal. The main reason is that the company wanted
to attract more customers towards its products.
Promotion of IT Company in Oman
When it comes to
selling products, customers need to be attracted and promotion plays the most
important part in it. Although pricing is also critical in attracting clients,
it is promotion that serves to catch the attention of clients and attract them.
There are different modes of promoting products such as through flyers, through
advertisements, and through posters. In case of Ignition Inc., advertisements
through social media and television are considered as they will serve to target
the audience in an effective manner. For instance, since businesses are the
main clients, advertisements through social media and television are recognised
to be effective enough as they will serve to convey the necessary message to
the audience. In addition to conveying the message, they will also attract
business clients to purchase the products. It can be noted that it is
considered as one of the most important strategy to gain competitive advantage.
This is because promotion will attract more customers and it will also boast
the annual revenue of the company. This means that if any company wanted to
gain advantage in the market then they have to apply new promotion strategies
on the products.
Place of IT Company in Oman
Considering the
fact that Ignition Inc. will be based in Oman, every locality will be targeted by
the business. Usually, it is very difficult for a business to target so many
places but it is mainly because of the tangible nature of their products and
services. For Ignition Inc., this is not the case because its solutions are
intangible which means that its services and solutions are not limited by
geographical boundaries. It is possible for the business to even target foreign
businesses that require automated and software solutions for their business
operations
Human Resources of IT Company in Oman
For every business,
human resources are considered more than just a little important. The same
applies to Ignition Inc. and there some specific human resources that are
needed for the efficient operations of the business. Following are these human
resources:
Management Team of IT Company in Oman
After the CEO and executive
team, one of the most important teams within Ignition Inc. is the team of
management. This team includes the manager for each department. For instance,
this team includes the human resources manager, operations manager, finance
manager, line manager etc. Actually, this team is created for the management of
every aspect within the business and ensuring that the necessary performance
standards are met to remain efficient in the market
Employees of IT Company in Oman
In the business,
there are teams. For instance, there is a team for the management of human
resources, a team for the management of financial function, a team for the
development of software solutions, and a team of managing operations. These are
the employees who will be recruited by the human resources manager. It is not important how many employee are
required by the company. The company is required to hire employees according to
the demand and load of work. This means that of work load is manageable then it
is not required to hire more employees. At the start of the company 200
employees are enough for handling different departments of the IT Company.
Qualifications of IT Company in Oman
For the managers,
it will be necessary for them to have at least a Master’s degree in their
respective fields. Meanwhile, for the employees, it will be important for them
to have at least a Bachelor’s degree in their respective fields with a minimum
of 2 years of experience. For the IT experts, it will be considered more than
just a little important to not only have the degree but also experience in the
development of similar solutions. Furthermore, it will be important for IT
experts to have experience in the utilisation of tools which facilitate the
process of development.
Figure 1: Organisational Chart for Ignition Inc.
In the figure
above, it can be seen that within Ignition Inc., CEO has the highest position
and under him comes the team of executives. These executives are responsible
for the management of managers. In other words, managers are responsible for
reporting to them and executives are responsible for overlooking and going
through the reports of managers. If there are some issues within the reports of
managers or if they identify some problems then these executives are to consult
the CEO and discuss these problems or issues. Under all the managers, there are
employees in their respective teams. For instance, the HR manager has a team of
employees under him who are responsible for the management and performance of
tasks and processes associated with human resources. The same applies to other
managers. For instance, the IT manager also has a team of IT experts who are
responsible for the development of software solutions. Actually, among all
employees, a special place is held by IT experts because they are the ones to
develop solutions that will be delivered to other businesses.
Therefore, it is
more than just a little important for these experts to have the necessary
skills and abilities which are necessary for them to develop the solutions. If
some advanced abilities are to be possessed by them, the HR team will structure
or develop a training programme which will help them in gaining these abilities
and skills
There are various
business structures that can be selected for an organisation. For instance,
there is corporation, there is LLC, and then there is sole proprietorship. All
of these business structures have different benefits and drawbacks. In this
case, for Ignition Inc., sole proprietorship has been considered because it is
less complicated than other business structures. Although it has less
complexity and offers more benefits than other structures, it has a drawback
that all the liability has to be experienced by the owner. Regardless of this
drawback, this specific business structure has been selected.
In general, as it
has been explained above, the main activities and operations of the business are
concerned with the development of software solutions which are aimed at
improving the processes and operations of businesses. Other than these
activities, other processes are concerned with different aspects of the
business. For instance, under the department of human resources, all processes
are concerned with human resources. In addition to it, these activities are
performed for ensuring that the human resource needs of the business are met in
an effective manner. Under the IT department, all the processes and operations
are concerned with information and technology and development of solutions that
are required by clients. The same applies to the department of finance. Under
this department, all activities and processes are concerned with the management
of finance and numbers of the business.
When it comes to
regulatory laws, all the laws which are applicable in Oman apply to Ignition
Inc. In addition to it, the business complies with all these laws and
regulations. The business will pay special attention to environmental laws and
will ensure that all of its processes are sustainable and they do not have an
adverse influence on the environment.
Ignition Inc. will be based
in Muscat because a large number of businesses is based there which provides an
easy access to the businesses operating in different sectors. In addition to it
just access to businesses, it offers all the resources for the business to set
up. For instance, for the development of a building that is designated for the
office, it will be easier to meet up with construction experts and have a
building developed up which is specific for the business.
In general,
production is necessary for the development of tangible products. Raw materials
are also required for the manufacturing and production of such products. In
case of Ignition Inc., there is no such thing because it develops software
solutions which are aimed at improving the processes and operations of
business. The same can be said about the distribution of products as well
because the main products are software solutions. They are delivered to
customers through the web and not through any physical source. However, for the
effective development of applications, it is ensured that monthly evaluations
are scheduled. These evaluations aim to analyse every development process and
it will identify all the issues and resolve these issues in a timely manner. Considering
the fact that business has a sole proprietorship structure, it does not require
memberships. Another important reason why there is no need of memberships is
because of the nature of business of Ignition Inc. Memberships are generally
required for the distribution of products and since the products of Ignition
Inc. are software solutions, there is no need of memberships. In fact, it would
not be wrong to say that even without memberships, the business can easily be
effective in the market and compete with other companies operating in the same
field and delivering the same solutions
When it comes to
expenditure, the specified budget for all the operations of the business is
40,000 OMR. This amount of money will be collected by getting funding from
investors. It would not be wrong to say that investors present one of the best
sources of collecting the necessary funds for setting up a business. For
covering the expenditures, the initial budget is specified by collecting the
money. Investors are provided with all the necessary business information they
need for offering the necessary funds. The remaining details about expenditure
are given in the table below:
|
Expenditure |
Amount |
|
Setting up Office |
10,000 |
|
Recruitment |
2,500 |
|
Operational Expenditure |
5,000 |
|
Training |
2,500 |
|
All Other Functions |
20,000 |
Table 1: Expenditure for Ignition Inc.
In general, 10,000
OMR have been specified for the development and building of office. A large
portion of money is specified for the office because it is costly to purchase a
place and build in Muscat. In addition to this amount, 2,500 OMR are specified
for all processes associated with recruitment and selection. Meanwhile, for
operational expenditure and purchase of necessary hardware, 5,000 OMR have been
specified and 2,500 OMR are specified for ensuring that all employees are
trained if necessary. Lastly, 20,000 OMR are specified for other functions
which might need money to be invested in them. This amount is more like a
backup support in case money is required.
In this paper,
Ignition Inc. has been developed in Muscat, Oman. Moreover, I have determined that in recent
years, the Sultanate of Oman has witnessed significant changes in its economy,
with its business sector expanding significantly. This has opened new
opportunities for entrepreneur to start their own businesses in Oman make them
effective in the market. This would serve to not only profit the businesses but
also the Omani economy. There are a number of sectors in which businesses can
operate but in this case the IT sector or Information and Technology sector of
Oman has been selected because there are not many businesses in IT sector that
offer technological solutions for every sector of business such as inventory
management, supply chain management, financial reporting etc.
In this case, for Ignition Inc., sole proprietorship was considered because it is less complicated than other business structures. For Ignition Inc. there are a number of products that will be produced by it. Some of its key products are automated software for supply chain, logistics, financial management, human resource management, and operations management. In addition to these solutions, there will be a service that will provide customised solutions to businesses according to their requirements. For instance, if businesses require a solution for operations management with some specific features and capabilities, then they can be delivered such a solution. . In order to attract business clients, penetration pricing strategy is selected. In this strategy, lower prices for products will be set and it will serve to attract customers. Actually, these lower prices will play an important role in ensuring that Ignition Inc. gets customers and it stays competitive in the market.
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