Case Study 2

BB & C Company
The Big Building & Construction Company (BB&C) is a new business concept proposal for Roberta Wallace, an American entrepreneur and expatriate who wishes to base her new business in the UAE. Roberta plans to import materials from China and to convert them into prefabricated building blocks that can be sold locally or exported to international construction companies.

The UAE will, in many ways, be an ideal location for BB&C. Roberta thinks the geography of the country is perfect as it is located in a thriving local market and between the continental markets of Africa, Europe and Asia. A business in the UAE has access to an educated local workforce, as well as the ability to import cheaper labour from poorer Asian countries.

Roberta is still working on her business plan but has found time to approach a couple of potential Emirati sponsors. She likes the business men and women that she has met, but has been shocked that she will have to pass on fifty percent of ownership and a share of profit to any local sponsor.

Though she has already managed to raise forty percent of the capital needed to launch the business, Roberta knows that she needs more. In addition, she wants to keep ownership of as much of her business as possible. She is also worried about current UAE quotas and tariffs limiting the number of components she can import from China, and consequently the amount of business she can do when BB&C re-exports the building blocks.

Questions
1.    SWOT analysis (mention as many as you can)?
o    Strengths

o    Weaknesses

o    Opportunities

o    Threats

2.    You are a Management Consultant based in the UAE and Roberta Wallace has approached you for advice?

3.    What are the benefits of Free Trade Zone (UAE) and what they are offering?