Introduction: economy, or even an organization to depend

 

 

Introduction:

Countries have a main rule amid the
globalization period on the world. The most important issue is to create,
enhance and assimilation of information in procedure of perfecting nation. Due
to the distinctions in national properties, like their structure of economy,
culture, history and establishments, a nation cannot be superior in all
industries. Toward the end of the period, country’s profitability is developed
in a specific industry depending as their national surroundings and dynamics.
(Michael Porter, 2008).

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Question
1:

Nation competitiveness relies on the
ability of its industry to modernize and innovate. Firms attain an advantage over
the world’s top rivals because of thrust and challenge. They gain from having
active national competitors, strong domestic traders, and ambitious resident
customers. In a universe of progressively worldwide rivalry, countries have
turned out to be more, not less, critical. As the premise of rivalry has moved
increasingly to the creation and digestion of learning, supported through an
exceedingly confined process. Contrasts in histories all add to focused
achievement. There are striking contrasts in the examples of intensity in each
nation, no country can or will be aggressive in each or even generally
enterprises. Eventually, countries have achieved success in specific industries
in light of the fact that their home condition is most dynamic, innovative and
challenging.

Organizations accomplish upper hand
through demonstrations of advancement. They approach advancement in its
broadest sense, including new innovations and better approaches for getting
things done. They see another reason for contending or discover better means
for contending in old ways. Development can be showed in another product
design, another generation procedure, another advertising approach, or another
method of training. Much development is day by day and incremental, depending
more on an accumulation of little bits of knowledge and advances than on a
solitary, huge technological revolution. It regularly includes thoughts that
are not in any case new thoughts that have been around, yet never vigorously
sought after. It often includes investment in expertise and knowledge, and also
in physical resources and brand reputation. A few innovations make upper hand by
seeing an altogether new market opportunity or by giving services to a market
section that others have disregarded. At that point when challengers are slow
to react, such innovation earned competitive advantage.

It is never good for a country, or an
economy, or even an organization to depend on just a single item. At some point
or another, things will change. That is reality of the universe. Furthermore,
when things will change, it is way likely that you won’t like the outcome. The
present best case for this is Venezuela and Russia, the two nations that have
shaped their economy on oil. Along with the present vanishing of costs for oil
from north of $100/barrel to beneath $50/barrel has hugely affected the two
nations. While it is conceivable that the present low costs are nonpermanent,
it must be comprehended that when the price begins to increase, the US and
other oil providers will all of sudden start up once more, and the costs will
drop. Saudi Arabia trusts that they can drive these expensive suppliers out of
the market with low costs, but that’s not entirely certain.

So the loss of these nations single
source of income will probably have serious effect on the political
circumstance in those nations too. A single product economy is generally
terrible for the long standing soundness of that economy. Unavoidably the
product will somehow turns out to be less important on a worldwide scale and
that will start to weaken the gross domestic product (GDP).     

 

Question2:

The global financial crises, coupled with
the unstable fluctuation in the oil prices in the global market, have led to a
prudent Oman’s ninth five- year plan, which was made after lots of
deliberations through Tanfeedh project and yield in diversifying the government
revenues as alternative revenue sources than solely depending on oil. The
general features of this five years plan emphasized on many alternative
promising revenue sources as will be elucidated below:

Tourism: 
Sultanate of Oman has been gifted with natural reserves in animal life
an example Arabic oryx and very unique natural tourism resources that includes
lovely mountains, deserts , beaches , valleys and Wadis and very diversified
unique environment as climate differ between the north and the south that makes
all the seasons enjoyable by the tourists through whole the year. In addition
to that the deep rooted heritage and culture that’s the oldest in the GCC
region that really attracts the tourists to know about not only the history of
Oman, but the entire region. All these factors together with other many factors
attracts tourists to visit Oman as one of the famous safety and peaceful
country that known of its people hospitality. Therefore, as one of the
strategic alternative government revenue, Oman’s ninth five-year plan focused
and emphasized on developing the tourism to be one of the main sources of
revenues beside the oil and very optometric tourism infrastructure projects has
been announced and released by the government from the inception of the
referred plan, focusing in the areas that attractive to tourists, through a
smart partnership between the government and the private sector. Moreover, the
government went ahead relaxing the visa requirements for many nationalities. As
the result of all these tourism projects and streamlining the tourism rules and
regulations and the co-operation between all government sectors, all these
exerting efforts yield in increasing the number of tourists this year and the
revenues from tourism have nearly increased by 50% comparing with the previous
year and expected to be doubled in the year 2018 considering the massive
tourism projects that going on at present.

Logistics: Based on the prime geographic location of
Sultanate of Oman being situated facing the Arabic Peninsula, Gulf of Oman and
Indian Ocean. This prime location makes Oman as a sea trade path between India,
Iran and Gulf countries and considered as a very important trading hub. In the
light of the above, the government plan commenced focusing on logistics as
non-oil revenue and start massive logistic projects, like Al Mazyona free zone
is Salalah, Sohar Port and Sohar Free zone and Duqm Port, Duqm dry-dock and
free zone. With all these massive infrastructure logistic projects and with the
establishment of all other relevant facilities to support that , Oman start to
play a great role in terms of logistics in the region and globally and the
logistics start generating huge revenues to the government and become an
alternative non-oil revenue to the government. Recently this role of logistics
has witnessed a great change in the regional conflict between Qatar and other
GCC countries, as Qatar started using solely the ports and airports of Oman to
break the siege imposed by the neighboring countries and this featured the
importance of the logistic facilities of Oman. In fact the objective is to
provide the logistics facilities to all traders and to become a logistics hub
for the international trade through Arabian Peninsula and it will become soon
considering the instability and security issues in the neighboring country and
Oman will definitely become the main logistic hub in the region based on its
prime location and the logistics infrastructure being made across the country.

Transformative Industries   

The government plan set up a very
promising forecast for the transformation industries not only for downstream
industries only, but also for other industries as well so as to be a lucrative
source of non-oil revenue to the government. Hence the government has focused
on mega project through partnership between the government and private sector,
which yield in many new projects, like Liwa Plastic Factory, Solar Energy
project which is coming up soon etc. Of course these projects and other similar
projects will definitely add value to Oman industry as well as generate
considerable revenues. Oman has also made very flexible measures to encourage
International investors to come to Oman with mega projects of course that will
add a value to the national economy of the county. These mega projects will not
only generate revenues but will also create more jobs to Omanis, hence reducing
the unemployment percentage. The laws of Oman have been amended accordingly and
in particular the Foreign Investment Law to accommodate this forecasted
government plans and there are new forthcoming amendments that will encourage
the Multinational Companies and big investment International organization to
invest in Oman. These steps of localizing the transformative industries in Oman,
will definitely add in value to the country specially that the end commodities
or products will bear the label of made in Oman.

SME         

The prudent and wisdom leader of Oman,
His Majesty Sultan Qaboos Bin Said has early called for supporting SME and was
encouraging the young Omani entrepreneur’s to penetrate to the business
sectors. Now his Majesty’s vision has become an integral part of Oman’s ninth
five- year plan as a strategic non-oil revenue source to the government. In the
light of that vision, many SME funds have been established to not only funding
and facilitating the operational capital and investment cost of those
businesses, but also to mentor and support young Omani entrepreneurs. The
corner stone of this vision and strategic decision is that to boost the trading
and industrial businesses in Oman, to encourage Omanis to have their own
businesses and that will lead to the improvement of the level of per capita
income for the Omanis, the fair distribution of wealth, creation of
anti-monopoly in the market, increasing the competition in the market that lead
to high quality products and better services to consumers. Of course such SME
will create more job opportunities to Omanis and will positively contribute in
the national economy of Oman either in terms of monetary contribution through
corporate taxes and other governmental charges and services or in term of
adding great value to the trading and industry market in Oman.  

   

 

 

Conclusion:

Conclusively, this report has discussed significance
of devising nation specific systems according to nature of the nation so as
accomplish a competitive advantage in worldwide environment. Oman business
condition presents extraordinary chances and opportunities yet needs unique
techniques and care while entering the nation and further during the business
operations are conducted in the nation. There are a few special features of the
nation. Individuals are value mindful; there is a presence of enormous
diversity between individuals due to religion and different beliefs, culture,
wealth and ways of living.

 

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