Page 289 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

Enabled Organization: Setting Up for Success 271

Figure 10.1 Core elements of an enabled Gulf organization

with local GCC companies—which they may or may not monitor
closely—and therefore consider their firm “present” in the Gulf.
While having such arrangements reflects more commitment than
does just ignoring the markets entirely, there can be real drawbacks
to having only distribution and sales people in the Gulf. One draw-
back is that such structures often provide the multinational only
minimal insight into market trends, region-specific needs, and
strategic opportunities. Distribution agreements often push all
in-market responsibilities onto the local distributor, with the multi-
national having little or no hands-on experience with or awareness
of local operations. Leading retailers like IKEA and Gap, however,
insist on strict guidelines for the store environment and for
other quality-related factors. These distribution agreements give
the global firm more presence and control than other, more passive
contracts.
Even firms with direct-sales people in the Gulf may not
receive a full picture of the market despite their presence. One rea-
son for this is time: salespeople are often so engaged in making
pitches, finding leads, and serving clients that they have little time
for market analysis and strategic planning. Another reason relates to
capabilities and access: salespeople may not have access to the
information, tools, and analytical approach required for in-depth