Page 168 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

152 Dubai & Co.

These are all scarce commodities and are deployed only when a
solid business case is made to a receptive and open audience.
Writing the proposal for such a business case is not easy, but it is
within the control of the business leader seeking to champion the
GCC project. Finding a receptive audience within a corporation can
sometimes be a real challenge.
Corporate strategists seeking to make a GCC effort should
expect a struggle when attempting to build institutional will at the
main office. As with any new project, there are tough questions to be
answered about the business case. Historically, even finding
accurate data on Gulf markets has been a struggle—though the situ-
ation has improved markedly in the past few years. Beyond the hard
facts of the business case, there will be questions about the political
environment, quality of life, and a whole set of “softer” concerns such
as how the brand will be received. Some of these will be rooted in
genuine issues and realities; others will likely be based on miscon-
ceptions. In any case, these concerns will need to be addressed to
overcome institutional resistance and build toward consensus.
As more and more leading global firms increase their
commitment to the GCC market, it becomes easier to muster the
institutional will required to mobilize the needed resources. By the
same token, waiting for others to enter can reduce a firm’s competi-
tive advantage once it finally wakes up to the business opportunity.
Firms must do their homework, undertake the analysis, and test the
business case. Once confident that an opportunity exists, they need
to move forward boldly to capture the prize before others do.

Value-Adding Partners
In the case of joint ventures, finding the right partner is absolutely
essential. A “value-adding” partner is more than just a financial
investor; that partner helps shape the overall strategy, identifies
opportunities, and gives the multinational an edge beyond any it
would have on its own. But meeting the regulatory requirements is
not enough: in today’s competitive environment, local partners
must bring vision, capabilities, and resources to the table. How,
then, should multinationals select their potential partners?
The first screens to undertake are those that look to the basics:
ability to commit the required capital, control of (or access to) the
other resources required by the venture, relevant operational