You are a consultant who has been engaged by one of the Dubai SME 100 companies to review and develop their corporate governance framework. Critically review and analyse the existing governance framework from the perspective of “Nine-pillars to good corporate governance”, and identify capability gaps for improvement.
The system of running a business with a set of rules, systems and processes and ensuring proper decision making in within stipulated time is known as Corporate Governance[1]. The system involves complicated procedures which ensures a smooth business and balancing interest of all the stakeholders like the shareholders, clients, and employees. All the managerial aspects of a company come under corporate governance and the board of directors are the final decision makers.
Corporate ethics is the professional set of ethics and morals that guides the business in the path of avoiding conflicts among different stakeholders[2]. All the individuals and the whole organization is expected to follow corporate ethics. Standards, values and principles that keep mal practices away from the business is corporate or business ethics.
Dubai SME 100 provides ranking to the Small and Medium Enterprises according to their performance and potential. It was established by the “Mohammad Bin Rashid Establishment for SME Development” or the MBRE. The rankings it provides are considered to be premiere and highly trustworthy in the region[3]. The rankings not only recognize the strengths of the companies but also helps in identification of capability gaps for improvement.
Nimai Management consultant has ranked 18th in the last rankings provided by the company. It is working in the field of financial management and since its inception at 2009 has grown in exponential rates. It has its offices in India and Bangladesh as well.
Figure 1: Rank 18th of Nimai Management Solutions[4]
In this paper the corporate governance framework of the company Nimai Management Solution will be analyzed as a consultant and the capability gaps will be identified. After identification of the capability gaps recommendations will be provided to develop their corporate governance and ethics framework
Innovation
In the article “Environmental determinants of open innovation in Dubai SMEs” the authors have pointed out that the government initiatives to support the SMEs through finance, collaboration and knowledge sharing has helped the companies to increase their innovative quotient[5]. A continuous innovation has been one of the basic strategies of Dubai’s business environment. The government of the country is proactive in supporting the SMEs.
Daniele Schilero however points out that not just because of government help the companies are innovating. To remain in the competitive market scenario of Dubai the SME companies have to adapt a very innovative business model otherwise they would not be able to survive in the highly competitive scenario.[6] The country is one of the prime destinations of investment in the middle east.
Corporate Governance
In “”Dubai as Metaphor: Corporate Entity, Global City, Hope and Mirage” the authors point out the evolution of Dubai in the corporate sector and how corporate governance has become an important part of every business[7]. People looking for work are coming from all over the world in this country.
Knowledge as an “organizational resource” is the most effective tool for innovation, globalization and improving organizational culture. According to the article “”Influence of organizational culture on knowledge transfer: Evidence from the Government of Dubai” every organization in all context are giving more importance to knowledge management and Dubai is not far[8]. The SMEs in the country are collaborating and sharing knowledge to improve the overall business pattern of the country.
Problems
“The scope and impact of workplace diversity in the United Arab Emirates–A preliminary study” the authors have mentioned that managing and maintaining workplace diversity is one of the prime concerns of the business organisations in Dubai[9]. A large number of workers travel from all over the world to UAE, they belong from diverse culture.
The article “”Educational Leadership: Challenges in United Arab Emirates” points out that United Arab Emirates is striving to reform the educational system of the country in order strengthen the countries entry into the global economic scenario[10]. The education system still lacks modernity and international curriculum.
Nine Pillars of Good Governance
The “Mohammad Bin Rashid Establishment for SME Development” has formed a code for the SME (Small and Medium Scale Enterprise) companies in Dubai[11]. These have been formed by the collaboration of Dubai SME and Hawkamah. It is aimed at establishing a framework or benchmark for the Small and Medium Scale Enterprises to follow.
The nine codes also known as the “Nine Pillars” are:-
Analysis of existing Framework
The company chosen called Nimai Consultancy or Nimai Management consultant, is mainly a consultancy firm that provides assistance and advices for fields like corporate finance, investments, new banking services and trade finances. The company has explicitly stated its position that it aims to become the first choice in financial consultancy purely based on the superior quality of service it provides[13]. In its core values the firm has included “integrity and strong professional ethics”. The company prides on providing honest and truthful consultancy to the clients and ensure that the information is kept confidential.
The principles that the company follows to drive itself nearer to the organization objective are, to give complete importance on “People, Associates and Partners”. The company believes in respecting all the stakeholders and striving for improvement of all the people who are directly or indirectly associated with the company[14]. The environment must be conducive of people and trust, honesty and transparency are the pillars on which the organization will stand. The company believes in making leaders out of its employees through continuous training and participation. Eliminating or reducing all the aspects and factors that hamper productivity is also important for the company. Continuous improvement through learning and reflection is the standard practice of Nimai Management Consultancy. The company with its ethical and strong strategic business model is successful in gathering clients not only in Dubai but also in Kenya, India and some other countries. The company also has some corporate social responsibility activities in order to give back to the society some much needed help[15].
It is evident from the above study of the “9 pillars of corporate governance” and the plan strategy and business model of Nimai management corporation that the company follows most of the codes that has been elaborated, from strictly adhering to the ethical standards to following a proper corporate governance structure, everything is as per the codes of the “9 pillars”. The company has a well detailed plan strategy for the improvement of all its stakeholders, the company is very strict at providing authentic and honest information about its financialhealth to its stakeholders. There is a risk strategy in place, risk strategy are the plans that steer the company out of any financial danger when there is a situational need[16].
Capability Gaps for Improvement
Capability gap is the powerlessness to execute a predefined strategy. The capability gap might be the after effect of no current capacity, absence of capability or adequacy in a current ability arrangement, or the need to supplant a current capacity answer for keeping away a future capability gap[17].
These capability gaps can exist because of numerous reasons, for example,
These capability gaps can likewise exist because of an absence of capacity to associate, maintain and scale up the current abilities and necessities to the business objectives by giving the correct sort of condition.
The capability gaps of this company are few but needs to be taken care of very soon so that the company may prosper in its field of business. The primary capability gap is the deficiency in innovative changes. The company still operates on a technology that is traditional form of financial analysis. The western countries have brought a revolution in the way financial analysis and consultancy is done. Advanced software and techniques like KPI or Key Performance Indicator are used in the industry. Nimai management consultant has not yet completely transformed and revolutionized its information technology and software interfaces. The website of the company is not very advanced in its look and feel. The company needs to work towards developing its website and the software it uses to do the financial analysis of the clients.
The company has clear targets and objectives, but a gap lies in the fact that though the company is expanding into new countries there is not proper leadership in the new areas where the company is expanding. The new areas and countries like India and Kenya needs to be focused by the top management of the company in Dubai. The leadership and regional management in these countries needs to be sharpened and prepared so that the business expands properly and the company earns some much needed goodwill in the new target market.
The primary two capability gaps that has been discovered in the company are the technological lapses that it faces in its website or the software it uses to analyse the financial data provided by the clients.
The approach to financial risk management must be “Multiple Models Approach”. This will delignate eloquently the gaps in one approach and clarify properly that which model can be used perfectly with a particular client in a particular situation[18]. One of the emerging fields of study in this respect is the field of Business Intelligence or BI [19]. The two institutions “Special Interest Group on Decision Support, Knowledge and Data Management System” and the “Teradata University Network” arranged the “Business Intelligence Congress 3” where several key players of the field pointed out that Business Intelligence and Advanced Business analysis are two key areas of innovation in the business organisations[20]. The company must adopt to these practices.
The capability gap of leadership and management in place in the new countries and regions where the business is expanding can be rectified by following the decentralisation model of business. Market segmentation analysis in the target countries at the primary stage is important, and doing a “service gap analysis” to understand what are the existing services in the same field in the target countries[21]. The business leadership can be developed according to the findings of the research. The top management of the company must empower the regional management of the company in all these countries, and aim at expanding business in new countries. The fulfilment of the capability gaps will result in better business and productivity of the company.
Apart from these the company already has a very open and transparent business model guided by ethics. Another recommendation would be to publish a yearly house journal that will delineate the financial position and health of the company in a more transparent way.
Conclusion
In the above study it is seen that innovation is one of the foremost aspect of consideration in doing business in Dubai and the region. Not just because of government help the companies are innovating. To remain in the competitive market scenario of Dubai the SME companies have to adapt a very innovative business model otherwise they would not be able to survive in the highly competitive scenario. In Dubai every organization in all context are giving more importance to knowledge management.
Dubai SME 100 provides rankings to the top performers in the Small and Medium Enterprises in United Arab Emirates. The organization has given 18th rank to Nimai Management Consultancy. As a consultant a detailed analysis of their present business model is done in the light of “9 pillars of corporate governance”. It is found that the company follows most of the codes of conduct described there.
However close study has found some capability gaps in the business model and strategy of the company which includes a weak technological support and not very strong overseas management. The recommendations of bringing in new technology like the “Multiple Models Approach” and Business Intelligence and Advanced Business analysis will help the company to reduce risk and increase productivity in the business
References
Al-Jenaibi, Badreya. “The scope and impact of workplace diversity in the United Arab Emirates–A preliminary study.” Geografia-Malaysian Journal of Society and Space 8, no. 1 (2017).
Consultnimai.com. 2018. “Nimai » Our Philosophy”. Consultnimai.Com. https://consultnimai.com/our-philosophy/.
Dubaisme100.ae. “Dubai One Hundered SME”. Dubaisme100.Ae. 2018. https://dubaisme100.ae/Default.aspx.
Evans, Michael. 2015. “10 Key Steps to Expanding Your Business Globally”. Forbes.Com. https://www.forbes.com/sites/allbusiness/2015/03/04/10-key-steps-to-expanding-your-business-globally/#22eb204b3803.
Kathiravelu, Laavanya. “Dubai as Metaphor: Corporate Entity, Global City, Hope and Mirage.” In Migrant Dubai, pp. 28-56. Palgrave Macmillan, London, 2016.
Katsioloudes, Marios I., and Tor Brodtkorb. “Corporate social responsibility: an exploratory study in the United Arab Emirates.” SAM Advanced Management Journal 72, no. 4 (2007): 9.
Khaleejtimes.com. 2013. “Corporate Governance Crucial For Businesses”. Khaleejtimes.Com. https://www.khaleejtimes.com/article/20131027/ARTICLE/310279951/1037.
Pervan, Simon, Yahya Al-Ansaari, and Jun Xu. “Environmental determinants of open innovation in Dubai SMEs.” Industrial Marketing Management 50 (2015): 60-68.
Rahman, Mohammad Habibur, Immanuel Azaad Moonesar, Md Munir Hossain, and Md Zahidul Islam. “Influence of organizational culture on knowledge transfer: Evidence from the Government of Dubai.” Journal of Public Affairs 18, no. 1 (2018).
Sadgrove, Kit. The complete guide to business risk management. Routledge, 2016.
Schilirò, Daniele. “Innovation in small and medium enterprises in the United Arab Emirates.” Int’l J. Soc. Sci. Stud. 3 (2015): 148.
Schilirò, Daniele. “Innovation in small and medium enterprises in the United Arab Emirates.” Int’l J. Soc. Sci. Stud. 3 (2015): 148.
Sharda, Ramesh, Dursun Delen, and Efraim Turban. Business intelligence: a managerial perspective on analytics. Prentice Hall Press, 2013.
Srivastava, Juhi, and Rakesh Kumar Pandey. “Corporate ethics and social responsibility.” 2016). International perspectives on socio-economic development in the era of globalization. Hershey: Business Science Reference (2016): 212-220.
Tradearabia.com. 2011. “New Corporate Governance Code for Smes”. Tradearabia.Com. https://www.tradearabia.com/news/ECO_205571.html.
Tricker, RI Bob, and Robert Ian Tricker. Corporate governance: Principles, policies, and practices. Oxford University Press, USA, 2015.
Van Deventer, Donald R., Kenji Imai, and Mark Mesler. Advanced financial risk management: tools and techniques for integrated credit risk and interest rate risk management. John Wiley & Sons, 2013.
Wixom, Barbara, Thilini Ariyachandra, David E. Douglas, Michael Goul, Babita Gupta, Lakshmi S. Iyer, Uday R. Kulkarni, John G. Mooney, Gloria E. Phillips-Wren, and Ozgur Turetken. “The current state of business intelligence in academia: The arrival of big data.” CAIS 34 (2014): 1.
Worch, Hagen, Bernhard Truffer, Mundia Kabinga, Anton Eberhard, and Jochen Markard. “A capability perspective on performance deficiencies in utility firms.” Utilities Policy 25 (2013): 1-9.
Zahran, Reham, Lincoln D. Pettaway, and Sharon Waller. “Educational Leadership: Challenges in United Arab Emirates.” Educational Leadership 5, no. 1 (2016).
Tricker, RI Bob, and Robert Ian Tricker. Corporate governance: Principles, policies, and practices. Oxford University Press, USA, 2015.
Srivastava, Juhi, and Rakesh Kumar Pandey. “Corporate ethics and social responsibility.” 2016). International perspectives on socio-economic development in the era of globalization. Hershey: Business Science Reference (2016): 212-220.
Schilirò, Daniele. “Innovation in small and medium enterprises in the United Arab Emirates.” Int’l J. Soc. Sci. Stud. 3 (2015): 148.
Dubaisme100.ae. “Dubai One Hundered SME”. Dubaisme100.Ae. 2018. https://dubaisme100.ae/Default.aspx
Pervan, Simon, Yahya Al-Ansaari, and Jun Xu. “Environmental determinants of open innovation in Dubai SMEs.” Industrial Marketing Management 50 (2015): 60-68.
schilirò, Daniele. “Innovation in small and medium enterprises in the United Arab Emirates.” Int’l J. Soc. Sci. Stud. 3 (2015): 148.
Kathiravelu, Laavanya. “Dubai as Metaphor: Corporate Entity, Global City, Hope and Mirage.” In Migrant Dubai, pp. 28-56. Palgrave Macmillan, London, 2016.
Rahman, Mohammad Habibur, Immanuel Azaad Moonesar, Md Munir Hossain, and Md Zahidul Islam. “Influence of organizational culture on knowledge transfer: Evidence from the Government of Dubai.” Journal of Public Affairs 18, no. 1 (2018).
Al-Jenaibi, Badreya. “The scope and impact of workplace diversity in the United Arab Emirates–A preliminary study.” Geografia-Malaysian Journal of Society and Space 8, no. 1 (2017).
Zahran, Reham, Lincoln D. Pettaway, and Sharon Waller. “Educational Leadership: Challenges in United Arab Emirates.” Educational Leadership 5, no. 1 (2016)
Khaleejtimes.com. 2013. “Corporate Governance Crucial For Businesses”. Khaleejtimes.Com. https://www.khaleejtimes.com/article/20131027/ARTICLE/310279951/1037.
Tradearabia.com. 2011. “New Corporate Governance Code For Smes”. Tradearabia.Com. https://www.tradearabia.com/news/ECO_205571.html.
Consultnimai.com. 2018. “Nimai » Our Philosophy”. Consultnimai.Com. https://consultnimai.com/our-philosophy/.
Consultnimai.com. 2018. “Nimai » Our Philosophy”. Consultnimai.Com. https://consultnimai.com/our-philosophy/.
Katsioloudes, Marios I., and Tor Brodtkorb. “Corporate social responsibility: an exploratory study in the United Arab Emirates.” SAM Advanced Management Journal 72, no. 4 (2007): 9.
Sadgrove, Kit. The complete guide to business risk management. Routledge, 2016.
Worch, Hagen, Bernhard Truffer, Mundia Kabinga, Anton Eberhard, and Jochen Markard. “A capability perspective on performance deficiencies in utility firms.” Utilities Policy 25 (2013): 1-9.
Van Deventer, Donald R., Kenji Imai, and Mark Mesler. Advanced financial risk management: tools and techniques for integrated credit risk and interest rate risk management. John Wiley & Sons, 2013.
Sharda, Ramesh, Dursun Delen, and Efraim Turban. Business intelligence: a managerial perspective on analytics. Prentice Hall Press, 2013.
Wixom, Barbara, Thilini Ariyachandra, David E. Douglas, Michael Goul, Babita Gupta, Lakshmi S. Iyer, Uday R. Kulkarni, John G. Mooney, Gloria E. Phillips-Wren, and Ozgur Turetken. “The current state of business intelligence in academia: The arrival of big data.” CAIS 34 (2014): 1.
Evans, Michael. 2015. “10 Key Steps To Expanding Your Business Globally”. Forbes.Com. https://www.forbes.com/sites/allbusiness/2015/03/04/10-key-steps-to-expanding-your-business-globally/#22eb204b3803
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download