Analysis Of The Mubadla Investment Firm Business Essay

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Mubadla is one of the biggest companies in investment and improving the business in the country. Like any big company Mubadla have its own strategy that seeks to gain from its investment the long term profit for the economic growth of the country.

Also Mubaddla seeking to have a lot of income sources rather than having just the oil and natural gas as a main income source. Mubadla Company is qualified to put the highest differentiation standers in each sector through its accurate choosing for its investment project that are it going to enter, in addition to the huge experience of its allies that they are going to help it in its investment project.

Mubadala Company

On October 2002 Mubabala Company was created as a public company, owned by the Government of Abu Dhabi. The number of employees approximately 500employees, headquartered in Abu Dhabi.

Value of assets held by the Board (December 31, 2007): About 10 billion U.S. dollars

Strategic Objectives:

The Company aims to develop and manage a wide variety of business ventures and economic development; either, independently or in conjunction with global institutions.

Mubadla Vision and Mission

Mubadla vision

Is to be recognized as an original leader in the high quality business and investment projects for efficient economic growth.

Mubadla mission

To create and maximize long term returns as an main engaged investor of in high performing business that serve our community and lead to our economical growth that depend on diversity of investing sectors .

Management structure

The board of directors :

The board of directors is the centerpiece of the corporate governance system. Board members are directly elected by stockholders and under corporate law , they represent the stockholders interests in the company.

Management /organizational structure

The management structure is important in an organization as it increase and improve knowledge sharing.

The foundational ideas for the knowledge organizational structure have been implemented at various organizations, while the portions of management structure that implemented in various organizations have enabled it to assume leading roles in their respective industries.

If an organization’s functional structure can be successfully transformed to a knowledge-based organization so this will enable to maximizing of the competitive advantage. Upper level management that are in charged for the changes in the described principles may implemented by lower level management.

Corporate â€"level managers

The corporate level of management consists of the chief executive officer (CEO) other senior executives, and corporate staff. These individuals occupy the apex of decision making within the organization.

The CEO is the principle general manager and that’s what Mubadala following in its classifications. Also there are business-level managers and Functional-level managers like also what Mubadala Company did in some department.

The business strategy:

1) To rely on long-term capital investments to achieve good financial returns.

2) Transform the emirate's economy from depends on a single sector ,which is the oil and gas sector to the global economy, multi-sector which contains a wide range of industries prosperity.

3) To create new job opportunities and raising the standard of living of citizens.

4) The formation of an attractive investment environment capable of attracting investors from all diameters of the world.

5) Achieve prosperity and growth of trade to Abu Dhabi and UAE.

The company's Highlights its activities at the local and global in sectors such as energy, aviation industry, real estate, parish of health and as well as technology, infrastructure and services.

A model of the strategic planning

Strategic planning has five steps :

1- choose the corporate and appropriate mission and major corporate goals ( mubadala goals)

2- Analyze the organizations the internal and external competitors to identify opportunities that they have and the threat that they are facing.

3- Focuses on the strength point and improve the weakness points of the organization to reach its goal as the company doing.

4- Select strategies that build on the organizations strength points and that's will help to achieve long term success.

5- Implement these strategies.

Employee Empowerment

This journal examines the relationship of management practices used by supervisors, psychological empowerment and behavioral empowerment. The journal tells us that management practices used by supervisors are much strongly linked to psychological empowerment while it is weakly linked to behavioral empowerment. It suggests that empowered feeling is key state of mind in which supervisors tend to build positive behavior. Psychological empowerment and behavioral empowerment tend to incarcerate various face of empowerment.

Management practices:

The company manages and several units, including:

1) Energy and industry Unit:

This unit interested in investing in the petroleum, energy and industry within the country and abroad.

The strategy of the Unit on five pillars, namely:

A) Renewable energy: the unit would lead to conduct research to develop advanced technologies and sophisticated in the field of renewable energy.

B) Oil and Gas: The unit investing in the Middle East and North Africa, as well as get stakes in a number of projects jointly with major companies pioneered the energy sector.

C) Public goods: Investment in the areas of electricity and water

D) Petroleum Services: The establishment of a portfolio of investments in selected services and petroleum products in conjunction with major companies both domestic and international.

E) Industry: Investment in aluminum and the automotive industry.

2) Health care unit:

The implementation of strategic projects that aim to strengthen the structure of health care services to the private sector in Abu Dhabi and the UAE.

Development of the health care sector in the Emirate of Abu Dhabi in terms of investment to build partnerships with the best world medical companies.

Aims to provide health care services on a global level by committing to the elements of quality and meet the needs of the patient.

D) Establishing an integrated network of health care, equipped with the latest IT systems and medical technology to achieve superior results.

E) To provide unmatched services to patients in collaboration with the most famous international medical institutions, such as (Cleveland Clinic, Imperial College and John Hopkins Medical).

The most important projects the current unit:

1) Imperial College London Diabetes

2) Centre of Abu Dhabi for the treatment of knee

4) National Reference Laboratory (Dubai).

5) Center for the treatment of spinal diseases

3) Aviation Industry Unit:

The Unit aims to promote the Emirate of Abu Dhabi to participate in this industry to diversify sources of income.

A) The Company owns shares in SR Technics Company and Piaggio Aero's and Striz Asuezreeten.

B) The Company owns the International Academy of Aviation _ "horizon"

C) The Company owns Abu Dhabi Aircraft Technologies

4) Infrastructure Unit:

This unit aims to develop the infrastructure to support the process of economic transformation are invested in the establishment of such universities (Sorbonne University, UAE University, Zayed University)

Contribute to unity in the open field for companies and institutions to invest in health and transport in the areas of education and other critical infrastructure facilities.

5) Information Technology and Communications Unit:

The unit administering a series of investments in information and communication technology in Abu Dhabi.

Dynamic theory of leadership development

The journals classify the principle objective in the leadership and how it helps in developing mental phase of leadership. Leadership is based on what choice the leader makes. Leader’s needs to understand the choices that they make for organizational activities should fit their own worldview. In conclusion, this theory is assumed if one person makes every effort toward strictly on ethical leadership knowing that this objective is further than human capability.

Agency Theory :

Agency theory looks at the problems that can arise in a business relationship when one person delegates decision-making authority to another. It offers a way of understanding why managers do not always act in the best interests of stakeholders.

Current problem and difficulties

Sometimes Reducing the business efficiency because of the other competitors.

Failing for planning for some long term project because of highly increasing in the cost of specialist.

The high cost of labor because of the inflation.

Mubadala future

1) Mubadala bought 8.1 percent stake (622 million dollars) in Advanced Micro Devices second-largest U.S. company in the world for which, manufacturing computer processors.

2) Mubadala making a Partnership with some Maldivian Company to build two Hotels in Maldives

3) Declaration of Mubadala and Aldar main contractor for the Cleveland Clinic Abu Dhabi

4) Mubadala aviation unit makes the first contracts with Air Berlin and Etihad Airways worth 130 million US dollars