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SHOPPING CENTERS DEVELOPMENT OF DESIGN QUALITY

by Shamsul October 13, 2023

DEVELOPMENT OF DESIGN QUALITY INDICATORS FOR COMMERCIAL SHOPPING CENTERS

CHAPTER 1 1. INTRODUCTION:

1.1. BACKGROUND

Commercial shopping centers or Malls are economic places (Stolle et al., 2005) where people meet, gather, and interact (Bloch et al., 1994). We can define Malls in their traditional sense as a building that includes a group of retail stores constructed and managed as one unit (Kotler & Armstrong, 2017). In many countries, Shopping malls have become a core point in people’s lives.

Today, the demand for malls is not only for purchasing, but also for recreational shopping and to serve social needs such as interaction with family members or friends (Bäckström, 2011). Thus, modern Malls present a wide combination of products, services, and leisure (multipurpose stores, cinemas, and restaurants) rather than just a retail building. Therefore, Mall’s has evolved to become a community building (AHMED & HASSANAIN, 2020). The reason behind the evolution of malls to become wider and bigger is to maximize the ability to attract people by affording a better place for better sales (Marchiori, 2018). However, shopping centers should meet customers’ needs in a satisfactory way, in order to attract people and encourage them to repeat the visit many times (Anselmsson, 2006).

A ‘Dead Mall’ concept is a phenomenon that describes the condition of shopping centers that either closed, have a high vacancy rate, low level of consumer traffic, or deteriorated in some manner (Watson & Van Ness, 2016)(Parlette & Cowen, 2011). In general, it can be said that the mall is dead when it failed to attract people. Many studies seeking to answer the question of why people choose a certain shopping mall. (Meziani & Hussien, 2017)(de Juan, 2004) have studied the relationship between attractiveness and popularity of malls by understanding the behavioral aspect of visitors. In this context, it is important to mention the ‘servicescape’, it is a model developed by (BOOMS & B., 1981) which focuses on the impact of the physical environment over the service process and relates the customer’s behavior within the service environment. For consumers visiting retail stores, the physical environment is the first aspect that people are perceived and form impressions of the level of service they will about to receive (Hooper et al., 2013). In shopping malls, the level of visitors’ satisfaction is affected by a comprehensive, attractive, and well-functioning physical environment of the servicescape (Juhari et al., 2012). Consumer behavior influences the spatial organization of commercial distribution, and in turn has an impact on diverse aspects of economic and social life (de Juan, 2004).

The aim of any building is to achieve the required function for which it has been built in the first place. Shopping malls are not identical neither in design nor in service that they provide (de Juan, 2004), but they all have the same goal to provide an optimal physical environment to successfully serve economic and social activities. During the design process of shopping Malls, hundreds of decisions are made at different stages with multiple stakeholders. The decision-makers face many challenges in order to determine what design elements to be included and what to be ignored to achieve the optimum design. Wrong decisions such as ignoring or neglecting important design elements could lead to serious consequences that may affect business and/or people.

Having considered the dead mall’s causes and influences, furthermore, the steady increase in the number of shopping malls, and the competition with other shopping formats (online shopping), the need to understand the current situation of design features of the shopping malls became urgent. This can be achieved by developing an evaluation process to study the current condition of shopping centers using users-oriented satisfaction measurements.

This report aims to study the design quality indicators of shopping malls through the evaluation method from the perspective of experts and end-users. Post Occupancy Evaluation (POE) is one of the powerful tools used for evaluating the performance of a facility by obtaining user’s feedback considering the technical, functional and behavioral elements of the building after it has been built and occupied for a period of time (Riley et al., 2015)(Hassanain et al., 2019)(Li et al., 2018). The POE is widely used by researchers to analyze and evaluate different types of buildings (residential, educational, medical offices, governmental and commercial facilities). In spite of the prevalence of POE, there is a lack of the application of this tool over commercial buildings (Li et al., 2018).

The major objective of this research is to identify the design quality indicators of shopping malls to be used by the design teams and decision-makers during the design process to avoid unnecessary conflict and suboptimal decisions and allowing them to make proper trade-offs between different types of design elements. Ultimately, this method will impact positively the final building design, and therefore, the building’s social, economic, and environmental outcomes.

1.2 STATEMENT OF PROBLEM:

Commercial buildings play an important role in any society by providing spaces for multiple activities not only shopping but also entertainment and socialization activities. In addition to their importance, commercial buildings have a significant impact on both social and economic aspects. In another hand, the evolving needs of customers and the changing of consumption habits demand more reliable evaluation methods to improve and predict the future image of shopping centers by facilitating the design process.

Thus, failing to make right decisions in the early design stage leads to severe problems that in some situations may affect the health and safety of people and failing to achieve the economic and social goals of the commercial building

In general, the current practice in designing commercial buildings is following the subjective approach where many decisions in design practice are made without a formal method or discussion, which often generate conflicts and waste in the design process. There is a lack of adopting an objective and systematic approach to design such buildings. Moreover, many practitioners are not even aware of the existence of evaluation methods that help designers making proper decisions based on the information gathered from the feedback of experts, users, and stakeholders.

The problem is that the literature does not provide enough support for practitioners to select an evaluation method in this context. This research fills the literature gap and provides practical advice for designers.

1.3 RESEARCH OBJECTIVES:

The purpose of this study is to:

Develop a rational evaluation approach for assessing commercial shopping centers by studying Design Quality indicators’ technical, functional, behavioral.
Evaluation and prioritizing the DQIs from the perspective of experts as a decision maker (Administrators, facility managers, architects) and end-users (Retailors, consumers).

The researcher believes that improving the design quality indicators will help the decision-makers to make better and more informed decisions for designing commercial shopping centers that meet users’ needs and satisfaction and be able to fit with the rapidly changing features of such buildings.

1.4 SCOPE AND LIMITATION:

This study focuses on Shopping malls in UAE and limited to:

Studying and evaluating the buildings’ performance elements functional, technical and behavioral aspects and developing a design quality indicator for shopping malls.
DELPHI method will be used as a qualitative technique to evaluate the DQIs (design quality indicators). The assessment will include five categories of participants Administrators, FMs, architects, retailers and end-users.

1.5 SIGNIFICANCE OF THE STUDY:

The results of the study will be of great benefit to the following:

This study will help to improve the shopping malls to stay in line with the changing demands of the shopping field.
The study will provide the architects and designers a comprehensive information and guidelines regarding the design of shopping malls.
End-users satisfaction and loyalty will be increased by improving the attractiveness features of the shopping malls.
Saving shopping malls from the dying phenomenon by increasing their adapting ability to rapidly changing features of the shopping centers hence, to be able to compete successfully with other malls.
The study shall drive the investors to make better decisions regarding such buildings.

1.6 RESEARCH METHODOLOGY

The objective of this research is to obtain by reviewing the available literature to determine the performance requirements for commercial shopping centers. It include Technical, functional and behavioral elements that must be studied and evaluated to determine the design indicators that describe the quality of the facility.

Using a qualitative method for evaluating the design quality of the facility, a questionnaire will be prepared to be distributed to key-persons depending on their role at the selected facility, five main participating categories are projected (administrators, facility managers, Architects, retailors, and visitors). Delphi evaluation method will be used in this assessment. To ensure the accuracy of data collected, three rounds of questionnaires will be conducted to each category of participants. By the end of each round, the mean will be calculated for each design indicator. After completing all rounds, the average of the three-round will be determined to be then classified by the order of importance to analyze the result of each element.

Outputs obtained from the evaluation analysis will be used in the end to draw conclusions and offer recommendations, as well as creating an assessment questionnaire survey for post-occupancy evaluation of Shopping Malls.

Chapter 2 2. REVIEW OF LITERATURE:

2.1 POST OCCUPANCY EVALUATION

Evaluation is an essential step in designing and building a facility that meets the need of all beneficiaries such as people, the economy, and the environment. Also, evaluation can help to maximize productivity and promote wellbeing by providing an instrument to understanding, yet developing the social, commercial, cultural, and environmental impacts of architectural design processes on investors, occupants, and the wider community

POE is an evaluation process model that was developed by (Preiser, et al., 1988) they defined POE as ” a process of evaluating buildings in a systematic and rigorous manner after they have been built and occupied for some time”. Multiple definitions can be found in literature describing the POE. (Riley et al., 2010) considers POE as a process to meet the need of the end-users while recognizing a way to enhance building design and performance. On the other hand, (Schwede et al., 2008) define POE as a tool used to detect which building elements perform according to design, and which elements are less performing than expected, consequently affecting users’ productivity and satisfaction.

(Cooper, 2001) has divided the scope of POE into three main correlated strands. Firstly, POE as a design aid (Feedforward) to provide design team to benefit from acquired data from feedback to be used in the future to improve buildings. Secondly, POE as a management aid (Feedback) by measuring the building performance to give an indicator of business productivity and organizational efficiency. Finally, POE as a Benchmarking aid for measuring transition toward sustainability of the built environment.

According to (Hay et al., 2016), POE is a central process in the architectural practice that addresses the gap between design intentions and the actual outcomes in use, crucial in understanding the wider socio-economic, environmental, and cultural impacts of the investment in a good design.

Accordingly, the implementation of POE is vital for developing the existed malls and also producing a long-lasting commercial building that can survive despite all changing needs of shopping habits.

2.2 THE DELPHI TECHNIQUE:

The Delphi method is one of the best techniques that companies use these days to make their business operations easier and faster. So, there is no doubt that discussing the Delphi method will be the best help possible. According to (Linstone and Turoff, 2002) Delphi method is a process and a forecasting framework that relies entirely on the different sets of questions. Those are sent to an expert panel comprising of people. These expert groups then provide the responses anonymously, and then those responses are collated and shared with the whole group after the end of each cycle. These experts are then asked to adjust the answers they obtained during the next rounds according to the interpretation they have of the group’s answer (Hsu and Sandford, 2007).

Since there are several rounds and different questions that are put to the group and also the fact that the group will be informed of the thinking process of the whole group, the Delphi method is supposed to seek the correct answer which can be perceived from the consensus responses (Geist, 2010). There are various applications of the method, depending upon the field – educational sciences, psychology, medicine, economics, management, etc. or as per the objective of the questionnaire – anticipation of a market or a trend, technological innovations, participatory management, strategic prospecting, participatory design, etc.

2.2.1 Characteristics of the Delphi Technique

Usually, this technique takes the form of a questionnaire. It allows independent and anonymous consultation hence, avoiding the shortcomings of direct confrontations both socially and practically. The answers are visible to the moderator only and not to the participants so as to avoid self-moderation prejudices (Schindler, 2013).

In conclusion, the method calls for an iterative consultation of stakeholders / experts, in the form of writing focusing towards attaining an increasingly consensual response. The experts can be either a dozen or hundreds of people, 2, 3 or more – and they will position themselves with respect to a question as per the answers of the participants. The answers are based upon the principle of anonymity as well as independence of judgement. Moreover, presentation of the questions may vary. They can be either open-ended or close-ended (qualitative and/or quantitative) (Munaretto et al., 2013).

2.2.2 Consensus

The method was designed to encourage consensus on specific topics such as priority setting, technological foresight or decisions on certain technical or medical issues. More precisely, the Delphi method creates conditions favorable to a convergence of opinions, while allowing to clearly discern the points of dissent. The study of the latter is important because it legitimizes the method and often leads to redefining the initial problem, which again leads to a consensus. In addition, the essential characteristic of the Delphi method is its process of feedback controlled through several cycles (Ab Latif et al., 2016).

2.2.3 Multiple cycles and controlled feedback

Contrasting to traditional surveys, the Delphi technique comprises of an interactive and iterative consultation. A panel of participants consulted through rounds, and at the end of every round, the panel will receive the get the results of the previous rounds. The panel will position themselves with respect to the previous results which is the controlled feedback process. Along with the provision of feedback, participants will also be giving additional feedback which will justify their responses. Moreover, preserving the anonymity of the respondents is also very important. With a mix of closed-ended (multiple choice) and open-ended, the Delphi technique creates both qualitative and quantitative results (Baker, Lovell and Harris, 2006).

This particular method is one of the ways in which a person can seek different opinions and suggestions from different experts on a panel. To do this, it is not really necessary to bring the panel together in one place. You can send questions to them as well. In fact, there is no need to organize a physical meeting with the experts. In addition, the answers provided by these experts are completely anonymous and there is therefore no need to worry about the repercussions that the opinions of the experts might have (Young and Jamieson, 2001). Consensus requirement is essential over time. Because there are a lot of different opinions that are expressed from person to person. This is the reason why this is an effective method which is in practice by professionals everywhere.

But while it is true that this technique allows communities to have different participants from different places, the results are not the same as one might get from a live chat. There is no doubt that with the live discussions we will be able to achieve a better consensus. In addition, perceptions in live chats are properly broken down, analyzed, and reassessed. As the response time of the Delphi method can be a bit longer than that of live chats, most people choose the latter option (Ludwig, 1997).

2.3. Shopping Centers

Shopping has an association with the process of making a physical contact with shopping centers. Malls in a way that the customers come in a direct contact with some physical architectural features incorporated in the constructive structure of the malls (Anselmsson, 2006; Dholakia, 1999). Additionally, Howard (2007) states that shopping is rendered to be a recreation action particularly within the perspective of the increment of shopping centers where customers usually come into a direct contact with the physical architectural features of the shopping center for the sole reason of shopping (Fram & Axelrod, 1990). In another study, Sankar (2005) defines a shopping mall to be a shopping complex joined by walkways along with many other architectural features. The mall serves to be an easy access to a variety of different shopping products by utilizing the architectural features along with offering excitement to the targeted buyers.

Shopping centers tend to adopt various methods so as to develop connections with the local sense of the place (Ruiz, 1999). Attachment with a particular place formation through local characteristics and materials (Dennis et al., 2002a). Shopping tends to differ in size, services, facilities, design as well as management amongst other factors. Shopper attraction by one or more factors which influences their choice and taste depending over several reasons. With the increase in the number of shopping mall, the need to consider about the design quality indicators has also become imperative. There are some researchers who have focused on the concept of shopping malls attractiveness with an objective to understand the dimensions of attractiveness, the predictive production power and the level of consistency amongst them (Denis et al., 2002b; Wong & Yu, 2003; El-Adly, 2007).

2.4 Design quality of shopping centers

Various dimensional typologies are in use for the development of a model of design quality indicators of a shopping mall (North and Kotze, 2004). According to a study carried out by Munuera and Cuestas (2006), several international studies have maintained their focus over commercial establishments along with its individual features; however, these researches have failed in considering the shopping center as a unit of analysis. Furthermore, Micu (2013) indicates that most of the design quality indicators of a shopping mall are mainly focusing towards cultural and geographical features of the study.

Eventually, there lacks a consensus regarding design quality indicators because the variable which comprises these indicators are multiple and might refer both tangible and intangible aspects, which is also dependent upon the subjective assessment of each (North and Kotze, 2004). As a matter of fact, the design quality indicators of shopping centers are to be a strategy of competitive distribution. They need to attract more people towards shopping malls along with improving upon their experience (Bigné and Andreu, 2004).

Considering this aspect, assessing the design quality indicators of a shopping center becomes very important for the following reasons – to improve the management because of its association with the intention to visit (Michon et al., 2005), as well as provision of information about the connection between the design quality indicators and the consumer profiles which means giving knowledge over specialization and segmentation of the shopping malls that are based upon the understanding of the style of the clients’ purchasing decisions (Alavi et al., 2016).

2.4.1 Location of shopping mall

Previously, the location of shopping centers to be a design quality indicator and consider to be a component of convenience. This attracts shoppers to patronage the shopping center (Ahmed et al., 2007; El-Adly, 2007). As per a research carried out by Koçak (2010), location is not only important for the customers but, also for the managers who have the responsibility to complete day today activities of the shopping mall. The location of any business is a very crucial factor. It is the resposibilty of the developers particularly in the aspect of selecting various alternative sites. According to Syahara & Ristiana (1992) location is the key achievement as well as the success factor of a shopping mall.

Location holds wide significance particularly in those areas where there are residential places, offices and parks. Additionally, location also have relationship with accessibility of shopping malls (Nicholls et al., 2002).

A shopping centers having a strategic location that can easily accessable has the power to attract a large number of people as well as boost the possible sales of any retail opening (Rajagopal 2008a). Retail location is having an important strategic business decision for many reasons. Firstly, the selection of a shopping store by customers are greatly depend on the accessibility of the stores. It is as per the spatial interaction models which denotes the existing relationship between the perception of a consumer about utility and characteristics of the location (Saxena, 2011).

Secondly, the retailers will be in a position to develop a sustainable competitive advantage by means of a location strategy (Levy et al. 2007). Wrong selection of a location will mean business failure whereas, a good choice of shopping mall destination might lead towards business development and unprecedented success. Currently, the shopping trend amongst customers aims towards merging different places or destinations as well as purposes within a shopping trip. Llusar et al., (2001) states this trend to be cross-shopping which has become important to consider by the mall developers.

2.4.2 Aesthetics and cleanliness of shopping centers

There are various studies that emphasizes over the importance of physical environment for the behavior of visitors within shopping malls (Turley and Milliman, 2000; Khei et al., 2001; Bigne et al., 2006; El-Adly, 2007; Ahmad, 2012; Hira and Mehvish, 2012; Sujo and Bharati, 2012; Singh and Prashar, 2013).

The term aesthetics has everything to do with beauty, design and neatness. In the malls of today, this factor have a great deal of attention has the direction towards this aspect which as neglected in the past. This eventually calls for investing in and outside of the mall including the architecture and layout so that the shopper remains for a good amount of time and has the tendency to repeat visits (Craig & Turley, 2004).

According to a study conducted by Loudon and Britta (1993), better aesthetics or interior design helps in boosting the overall image of the shopping centers over time. Hence, shoppers tend to evaluate the mall by heavily drawing over its physical features as lacking or being available like elevators, air-conditioning, washrooms along with design features including architecture, high ceiling, interior landscaping, flooring, carpeting as well as the overall layout.

Several investigations revealed in literature emphasizing over the importance of environment and atmosphere in the process of design quality indicators. The evidences are in support of the design indicator (Grewal et al., 2003; Andreu et al., 2006 and Michon et al., 2007). These studies suggests that malls have now witnessed a shift with respect to its interior design – moving on from a classic design to that of a more sophisticated one that holds an eye-catching decoration and layout. Decorations are an integral part of the shopping center. However, you should keep the spaces as spacious and bright as possible (Anselmsson, 2006). Ever since, the establishment of the shopping mall. There are some malls which are focusing over the atmosphere. That are an advantage of comfort coming from the quiet and serenity away from traffic in contrast to other shopping venues.

Additionally, pro-aesthetics also claim that soft and subtle music stimulates a shopping mood rather than a noisy environment with the shopping venues. In accordance with this, the management pays close attention to the resources which lead towards better architectural and environmental aspect of the shopping center. Environments that are rich and sophisticated and are more fascinating are the main concerns of design quality indicators (Tiwari and Abraham, 2010).

The shoppers evaluate shopping malls that have a unique architecture or design, entertainment factors like a play area or theatres and sometime appealing restaurants serve to be the focal point in the shopping areas (Chun, Hassan, & Noordin, 2005; Yan & Eckman, 2009). According to Wakefield and Baker (1998) the architectural design of a mall serves to be the most decisive factor which impacts mall excitement whereas, the interior design of a mall greatly influences the desire of the customer to remain longer within the mall.

Other than this aspect, Frasquet (2001) states that the atmosphere of shopping center are also a crucial factor in influencing people’s decision to visit a shopping center. If a shopping mall has a good atmosphere, it will encourage shoppers to stay longer and buy more. There were very limited studies in the past dealing with these specific aspects related to aesthetics of a shopping mall and were mainly focused towards colors and the type of music (Solomon, 1994; Peter & Olson, 1994). Hence, atmospheric characteristics are rendered to be an enhancement within the product variety and can be exploited well so as to impact the behavior and mod of shoppers in a positive manner and on the overall image of the mall as a whole (Tiwari& Abraham, 2010).

2.4.3 Design and eco-natural environment

The eco-natural design perception of a shopping mall is of particular concern within the literature related to environmental. It has atmospheric features of the shopping center setting. According to Do Paço and Raposo (2009) ecological elements have a great influence within the commercial settings over the behavior and attitude as ell as the intention to visit or buy from the center.

Within the commercial field, Brengman et al. (2012) has proved that incorporating spaces with vegetation holds hug impact over shopping emotions and hopping behavior. Additionally, the environmental design of commercial settings oriented towards the lifestyle and consumption within natural spaces tend to favor the connection between their well-being (Amérigo et al., 2013; Herzog and Strevey, 2008).

According to a study carried out by Bigne et al. (2006), building an enjoyable environment a[[ears to be an objective in the process of improving the shopping experience of consumers. Moreover, Amérigo et al. (2013) highlighted the increasing interest in the research related to pro-environmental conduct along with an evaluation of the individual’s behavior or attitude towards the environment (Amérigo et al., 2007; Chebat and Michon, 2003).

2.4.4 Facilities and services of shopping centers

Usually, shopping centers are considered based upon the type of services provided or installed as well as the ways and means through which they are being delivered. These may incorporate transport facilities like escalators, lifts, conveyors, etc. that have now become an essential design quality indicator for many shopping malls that appreciates the sensitivity of the shopping industry (Hanif et al., 2010). Previous researches have added in that shopping centers offer services to public with respect to terms of access roads to the vicinity, amenities like restrooms and sign boards (Berman & Evans, 2001).

Additionally, services and facilities that deal with comfort factors which customers desires the most are also important. For example, cleanness, security and width of the shopping center. Installation of air conditioning services, central heating, rest rooms with comfortable seats, spacious parking as well as safety needs to be made available o as to allow customers for spending good time during their shopping or o even socialize within the mall. Moreover, it is also important to assure that customers are at their comfort level if they want to keep up with the quality indicators (El-Adly, 2007).

Different customers have different perceptions and expectations from services within shopping centers which primarily focuses upon the salesperson being courteous, knowledgeable and helpful. Some warm gestures on part of the salesperson like greetings, smiling, kind eye contact imposes a positive impression about the particular store or the mall in general (Winsted, 1997). Although, the service quality is difficult to determine as it is related with what is happening on the ground however, Wisniewski (2001) identifies service quality to be the difference between what the customer expects from a service and what services is received. In case, the expectations are higher than that of the performance, then the quality will be perceived as less satisfactory resulting in dissatisfaction on part of the customers. Creating a relaxed atmosphere such as a departmental store or other similar ideas like free kids lounge, food court, ATM machines, free of charge shuttle bus service from nearby residential areas to malls and dry cleansers all under a single roof shopping centers is also a main factor in attracting more customers (Jin & Kim, 2003)

2.4.5 Quality of structures in the shopping centers

The qualities of engineering structures play a very important role over customer choices regarding a shopping mall. Engineering structures includes multi storey car parking, basement car parks, roof trusses as well as structural steel frames tends to attract customers towards shopping malls and hence, are considered to be crucial design quality indicators. Modern shopping centers roofing elements that are specifically designed to conserve cold/heat within the mall premises is another way to attract customers towards the mall. This claim is supported by Tsiotsou (2005) which included that quality is a multidimensional concept which is quite difficult to determine. The quality of any structure relies upon its specifications.

Consumers are highly dependent upon their perception of quality so as to differentiate between various structures depending upon two distinct categories – intrinsic cues associated with the physical composition of a product or structure as well as extrinsic cues that comprises of the outer aspects of the product related to it but, is not a part of its physical components. Some attributes like the width, length, size, shape of the structure, texture color makes intrinsic cues of some of the elements. Extrinsic cues associated with quality includes the specifications curing time attractive colors (Yoon & Kijewski, 1997).

2.5 Previous studies

A study carried out by Roy (1994) determined the impact of various characteristics on the satisfaction level of the shoppers. These characteristics include – functional shopping motivation recreational shopping motivation, deal proneness, income, age and size of family. The result of the study indicates that all these factors play a considerable role in the frequent visits of shoppers.

Another study carried out by Bloch (1994) intended to study those reasons that push shoppers to visit shopping malls. The results indicated that shoppers visit shopping malls for entertainment purposes social interaction with friends, relief from boredom, relaxation along with variation in shopping products.

Another study carried out by Tabar et al. (2006) aimed towards identifying those attributes that preserves the image of shopping centers and are crucial for gaining loyalty and patronage. This study was applied in a Turkish Girls’ high school to determine their experiences, expectations and perceptions towards shopping malls. The study carried out that hyper-led shopping centers having larger departmental stores are not preferred by girls. The respondents were keen to gain utilitarian value when they visit a shopping mall and hence, malls do not serve as a proper place to shop. Accordingly, the factor of entertainment is the primary motive that pushes the girls towards visiting shopping malls. On the flip side, location, is the second-most crucial motive for the girls to visit shopping malls.

Furthermore, economic motives also comprised of various factors that influenced shoppers to visit shopping ceners whereas, some are driven with emotional motives. According to Ruiz et al., (2004) shoppers have a combination of economic and emotional motives. Other studies stated that important reasons for selecting shopping malls include convenience, services and prices as well as presence of a specific store in the mall (Bodkin & Lord 1997). This involves considering those design quality indicators that makes mall attractive for shoppers and promises them a place with all kinds of products in a single location. The development of the mall industry has the tendency for many malls to resemble with the other aiming towards offering products at competitive prices (Ahmed et al., 2007).

The design quality indicators were studied from the perspective of shoppers. A study carried out by El-Adly’s (2007) identified six main quality indicators of a shopping center that include – convenience, diversity, entertainment, comfort as well as luxury. These design quality indicators are compatible with three broad categories of shoppers – demanding shoppers, stress-free shoppers and pragmatic shoppers. Adequately demanding to these factors have become imperative for mall designing developers so as to conduct a profitable business (El-Adly, 2007).

Several academic researchers have been conducted to determine the different aspects of design quality indicators of shopping centers. The shopping mall industry has developed as a thriving business and investors are building malls of great size and height which makes the industry fast at a rapid pace (Bernan & Evans, 2004).

A research carried out over the image of malls primarily focuses over stimulating mall patronage. A study carried out by Sit et al., (2003) focuses over how important the image of the shopping ceners are on the shopper’s patronage decision’s critical determinant. Particular, certain studies indicate the importance of four dimensions associated with patronage such as functional, socializing, recreational and convenience (Terblanche, 1999). In the similar context, a study conducted by Ibrahim (2002) assigns travelling components which consists of effort value, transport mode reliability, distance and comfort are some significant design quality indicators that impact shopping malls patronage.

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October 13, 2023 0 comment

Business Management Marketing Scholarly Writing

The Research Proposal For Banking Industry

by Shamsul September 29, 2023

Research Proposal For Banking Industry

Research Proposal

Banking Industry

Citi Bank

Executive Summary.

Introduction.

Management Decision Statement.

Research Questions.

Business Research Objectives.

Report Research Design.

Ethical Concerns.

References.

Executive Summary

The research proposal explains initially the need to conduct this research. It is shedding light on some recent facts and figures that clearly explain. Why Citibank requires immediate remedial actions if it wishes to challenge competitors and restore its former position in the banking market.

The proposal discusses how Citibank has suffered and how it can bounce back through exploiting its own competencies and brightening up and adding a new life into its core competitive advantages.

The proposal extends the need to research and investigate two main objectives that are proven to offer results when applied efficiently. First is expansion in developing economies, and second incorporating technology in banking operations.

The research will be based on a mixed-method research design. Where both quantitative and qualitative research data used to derive answers to the research questions.

All ethical concerns are in under consideration to ensure that all parties/individuals involved in the research are aware of the research’s purpose.

Introduction

Citibank, the Global Consumer Banking (GCB) division of CitiGroup revealed in its 2017, second quarter statement. A total earning of $8 billion which is an increase of 5% compared to the same period in 2016 (Citi, 2017). Revenues were also recorded at an increase of 5%, derived from a 5% increase in both the North American GCB operations and International GCB operations (Citi, 2017).

The net income of Citibank’s GCB operations decreased by 12% in the second quarter of 2017, revealing an income of $1.1 billion (Citibank, 2017). The revenues were highly cut down as an offset of higher operating expenses and high credit costs that prevail currently. The operating expenses also enhanced by 5% both on a constant dollar basis and reported basis largely owed to Costco portfolio addition. Other reasons include continued investments by the GCB branch growth in volume, which were measures taken as an ongoing efficiency saving technique (Citi, 2017).

In a break-up analysis of Citi Bank’s GCB operations, North American GCB revenue was recorded at $4.9 billion, and the International GCB operations even though showing 4% increase, still amounted to $3.1 billion (Citi, 2017). Similarly, net income reported from the North American GCB operations revealed earnings of $670 million, a decrease of 18%, whereas the International GCB operations showed an income of $455 million which is a decrease of 3% (Citi, 2017).

The above figures clearly depict that Citibank is struggling to keep its market competitiveness. Even though the banking industry has been experiencing a downfall worldwide; however, banks are employing new techniques to exploit areas that can offer them a competitive edge, using which they can enhance not only their annual performances but also offer tough competition in the already competitive global banking market.

American Express Bank, is a credit card giant and gains its competitiveness from its various loyalty and credit card offers. For example, Citi credit card offers more than 2 billion different credit cards, manages about 60 billion credit card transactions, and focuses on the transaction volumes of customers offering various benefits (Trefis, 2014).

This earns the company a 1.65% increase in share value (Trefis, 2014). American Express comparatively has only 107 million cards, and manages only 6 billion transactions (10% of Visa); however, it shows a 1.71% increase in its share value, as it opposing to Visa focuses on spent amount volume rather than transaction volume (Trefis, 2014). American Express thus earns $33 billion worth of revenues, with Visa earning only $14 billion (Trefis, 2014).

As far as the case of Citi Bank is concerned, its competitive edge lies in its global reach, expanding out to 160 countries, where the bank is physically present. This report analyzes how this competitive advantage can be managed and what can be done to help Citi regain its lost glory at a time when the overall banking sector is struggling badly.

Management Decision Statement

Statement 1 – Expanding Global Consumer Banking Operations To Developing Countries Other Than Asia Pacific

It is a proven fact that Citibank’s biggest strength is its massive global presence, and sighting the level of income and revenue being generated from operations in the past few years, even though Citibank has managed to come out of the crisis it faced in 2007, the bank however is not established enough to sustain growth on a regular basis and thus the need is to enhance and strengthen its ace competitive advantage, global presence. It is clear from the figures discussed in the introduction section that International GCB operations are suffering badly compared to North American GCB operations.

In a scenario where even though the European banking region is suffering overall, increased banking activities are being experienced in developing countries (Middle East and African region, also including the Latin American region), especially in those regions where the use of internet is increasing vastly (Panara, 2013). The research will focus primarily on which countries would prove to be viable options for Citibank operations to be introduced, and how in the present situation can Citibank incorporate the level of investment required for this expansion.

Statement 2 – Focusing On Online Banking Services

Online banking services is a weak point of Citibank, which needs to be focused on a priority basis so that business that is being lost owed to inefficient online presence and services can be regained.

Whatever services Citibank is offering its customers in the name of online services is not at all adequate as to what is currently being offered by competitors in this regard. Secondly, most of the Citibank online services are targeted towards US customers only, ignoring largely customers from other parts of the world (The Nation, 2014). Incorporating technology is an essential element of banking these days as every bank that is competing on any level in the industry today uses technology as its backbone (Kumar, 2012). Banking is a services industry that dwells on customer experience and using technology is the one ensured way to engage with customers in the most reliable manner (Ramey, 2012).

Research Questions

This research is centered primarily on researching ways through which Citibank can enhance its performance and move towards sustainable growth in the future. According to EY (2012) the global banking outlook was very gloomy with banks facing several structural issues and tackling already struggling economies. Standing at that point the future of banks did not look very bright and this was the time when many banks declared bankruptcy or were taken over. 2013 however was a bit optimistic and even though the prospects may not have been great, they were definitely better (EY, 2014).

Fast forwarding to 2017, recovery has been evident in Europe, where banking has improved owed largely to refinancing operations of the European Central Bank however challenges still remain limiting the percentage of bounce back. USA in terms of banking has been much better however other factors that depict economic recovery have been very slow, limiting the assumptions as to what the future will bring.

Asia has been much better comparatively, with China developing a soft landing for its banks and aiming towards long-term development of the economy, which is good news for banks, whereas rapid growth economies of Asia, other than China, have also largely focused on infrastructure and high-end industry set up, depicting gradual enhancement of economy, signaling a brighter banking future in the region.

Also, technology integration has been the buzzword in every industry and the banking industry is no exception. Banks have increasingly begun to virtualize their services with a significant increase in banks that operate solely online. This indicates how considerably important it is for banks to incorporate technology in their processes and operations and offer value to their customers (EY. 2014).

Keeping these major factors in mind the research questions that will be answered in the report will be

Q1 – What countries or regions can offer profitable expansion opportunities to Citibank, transforming into sustainable returns over time?

Q2 – What should be done to incorporate technology in the banking operations of Citibank and how can Citibank reach out to its International customers via online operations?

Business Research Objectives

The General Research Objectives of the report are specific research on ways through which Citibank can enhance its market share and organize its annual earnings and revenues in a manner that induces some level of sustainability.

Specific objectives of this research include

To analyze the viable options of expansion that will not only enhance the competitive advantage of Citibank but also offer means of sustainable growth in future operations.
To develop a proper plan of expansion.
To determine how technology can be used to aid the business operations of Citibank.
To establish a sound online banking system that caters to all customers of Citibank spread in 160 countries.

After the 2007 banking crisis that hit financial institutions, Citibank was one bank that was hit badly, primarily as 60% of the loans the bank was buying were defective. Also, Citibank has always been an aggressive market player which has earned its competitive advantage of being a globally present bank worldwide (Seeking Alpha, 2013).

After the restructuring of Citibank started off in 2010 when the government sold off its share of Citibank, and the appointment of a new CEO was made, a lot of changes were brought about in the overall Citibank structure. Citibank has been involved in a lot of purchasing and acquisition deals, however, during the restructuring process, a lot of bad assets were laid off in an attempt to lower the financial debt of the bank, and it was decided that market expansion would be adopted as a measure of expanding operations and revenues.

Even though the decision was made however no significant action was taken in this direction which is evident from the revenues and income discussed of North American GCB and International GCB. The banking sector is still struggling in North America, with even worse situations in Europe however, the Asian and African banking markets are faring much better and developing economies are in need of banks that can cater to their requirements (Seeking Alpha, 2013).

By 2013 Citibank’s 60% of revenues were generated from its International GCB operations however this has declined in the previous couple of years and there is a need to explore developing economies in Asia, the Middle East and Africa, where economies are growing and require support of financial statements. A few such markets include India, Malaysia, China (Seeking Alpha, 2013), the Philippines, Myanmar, Cambodia and Laos (Jennings, 2017). All these economies are showing growth rates that recommend their need for financial institutions, with a significantly growing middle class, which serves as the main customer class of Citibank.

What can benefit from expanding in these areas is that not many global banks are present in these countries to offer any significant competition, but also the absence of Fintech (institutions other than banks that offer finance-related services instantly) offers the chance to capture a wider societal segment, offering instant services that can hamper the success of Fintech in these economies as they progress further on (John, 2017).

Assessing newer economies and introducing services that offer the capability of challenging Fintech technologies and services will offer extra benefits and more market share. It is obvious that as economies grow, services from other parts of the world will reach them to offer their services; however, the early movers are always at an advantage as they can establish market demand and offer advance services that will be needed in future, eliminating the ease of market entry for competitors and Fintech companies, owing to the market trust factor involved. Here again focusing on middle-class, small and medium-sized enterprises and any other segment of society that is either under-banked or unbanked at this stage will be key to enhancing market share and annual profits (Vinayak, Lee, Rajendran & Sengupta, 2016).

The second main objective of the research is to induce a value-focused digital transformation of Citibank. Online banking and other digital solutions to banking that are readily being offered to banking consumers nowadays by competitors are found to be lacking in Citibank operations. Citibank does manage online banking services. However firstly they need to incorporate more services in their digital offering. It included mobile banking and acknowledging credit card use via mobile (Poh, 2017). This is one area that can be of immense benefit. It will incur only the initial costs of setting up digital technologies. However, that can be used to favor Citibank and satisfy its customers, as later on it can be a leading cost control element of the bank (Vinayak, et.al., 2016).

It is an essential requirement for any business, including banks, to adapt to the changing environment and the shift of finances from cash to credit and online transactions demands banks to cater to the different requirements of customers in this area.

Report Research Design

The research design will constitute a mixed method which will incorporate both qualitative and quantitative data. The qualitative data to be collected from currently performed surveys and research done on the economies of developing countries and the potential they carry for banking. This method will primarily be used for assessing which countries are the most viable expansion options for Citibank. Here examples of expansion in these economies will also considered (if available) to generalize any threats or shortcomings that may be faced.

The quantitative research will include information collected from questionnaires sent out to existing and new customers. These are related to what they expect their banks to offer them in terms of technology-based services. Along with collecting information on what is being offered to existing customers and how satisfied they are with these services. This method of research will be undertaken chiefly to assess what services will be needed or demanded by customers. These are based on which information for the next step of how to offer that service/s will be decided upon.

Analysis of available literature will offer enhanced information on the expansion viability of selected countries. Out of which the best growth-inducing economies can be available for the next expansion projects. Whereas detailed analysis of questionnaires and comprehensive investigation of results can help in assessing which online services are suitable for customers. Thus offering a point from where Citibank can start its online operations. It star focusing initially on popular on-demand services, before moving towards introducing other innovative and enhanced online services.

Ethical Concerns

All the coolected information about any customer used in the research will be kept secret. These are solely for the purpose of this research. Also, all participants of research will be informed on the reason for collecting this information. Also, will be asked for permission for the given information to be used/limited to this report only.

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References

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EY. (2014) Banking And The Global Economy. (online) Available at http://www.ey.com/gl/en/industries/financial-services/banking—capital-markets/global-banking-outlook-2013-14–banking-and-the-global-economy [Acessed: 11 Sep, 2017].

Jennings, R. (2017) These Are the Fast Growing Economies In East Asia In 2017. (online) Available at https://www.forbes.com/sites/ralphjennings/2017/03/23/east-asias-5-fastest-growing-countries-in-2017/#56c485085ac6 [Accessed: 10 Sep, 2017].

John, A. (2017) The Changing Shape Of Asia’s Private Banking Sector. (online) Available at http://www.scmp.com/business/banking-finance/article/2086780/changing-shape-asias-private-banking-sector [Accessed: 10 Sep 2017].

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Trefis. (2014) How American Express Gains A Competitive Advantage From its Closed-Loop Network. (online) Available at https://www.forbes.com/sites/greatspeculations/2014/03/13/how-american-express-gains-a-competitive-advantage-from-its-closed-loop-network/#20ef7a014be7 [Accessed: 10 Sep, 2017].

Vinayak, H. V., Lee, G., Rajendran, K., & Sengupta, J. (2016) Weathering The Storm: Asia Pacific Banking Review 2016. (online) Available at http://www.mckinsey.com/industries/financial-services/our-insights/weathering-the-storm-asia-pacific-banking-review-2016 [Accessed: 10 Sep, 2017].

September 29, 2023 0 comment

Business Management Marketing Scholarly Writing

Coca-Cola – An Evaluation of Opportunities, Innovation, and Entrepreneurial

by Shamsul September 10, 2023

Coca-Cola – An Evaluation of Opportunities, Innovation, and Entrepreneurial

Executive Summary

This report was prepared in order to evaluate the Coca-Cola Company in reference to whether the company created or developed new opportunities. It participated in innovation activities, and whether it behaves as an entrepreneurial organization.

The findings of the report conclude that Coca-Cola has, from the initial point of conception, continuously developed and created new opportunities for the growth of its products in the various different regions of the world.

Coca-Cola is also not a company that has successfully survived 125 years in the beverage industry without innovation; rather, innovation has been the key base of the success of the company. Starting from new innovative products, including the flagship product coca-cola, which was a recipe much cherished when it was first introduced and to date remains the biggest selling product of the company. Further innovation in equipment were in the form of energy-saving coolants, space-saving dispensers. Those are able to contain more liquid weight, ,etc. They are the other forms of innovation by the company in the past years.

Entrepreneurship is also found as an innovation strategy in the organization as new ideas are regularly collected from the various departments of the organization and then reviewed for their practicality in different regards.

Some examples of Coca-Cola’s innovation activities are also discussed in the report, including its EKOCENTER project and yearly gathering of professionals to generate new workable ideas for the organization, besides other activities performed by the organization. Also, some marketing techniques that emerged as marketing innovations are also discussed in the report.

Introduction

Coca-cola is a world-renowned multinational beverage manufacturer and corporation with more than 500 brands of nonalcoholic concentrates and syrups circulating under its name in the market across the world. Headquartered in Atlanta, Georgia, the company is known for its flagship product “Coca Cola” invented in 1886. Coca-Cola currently operates in about 200 countries and regions worldwide and serves a record 1.7 billion serving each day.

It has a long history of the organization and its efforts towards the betterment of society, economy, and a better world. It was a long slogan for the company that makes it ideal to be discussed in the perspective of this report. Coca-Cola enjoys a long record of innovations introduced in its respective beverage. This industry sector is known to create regular opportunities.

In the following sections of the report, first, we will analyze how the Coca-cola Company developed and created new opportunities and what it has done until now and plans to do in the future. Also, we will discuss the organization from the perspective of innovation management and as an entrepreneurial organization. The company’s past record and present and future attempts in these regards will be analyzed, followed by a conclusion of the findings.

Coca-Cola, as an Opportunity Creator

There is no doubt about the phenomenal success of Coca-Cola. It records 403 servings per capita in its annual 2011 report in the US, with counts dropping to 38 and 12 drinks per capita in China and India, respectively (Bias, 2012). It has the high count of selling beverages at different points globally. Coca-cola still aims to increase its sales in regions where it exists and aims to target new markets as well. Coca-Cola has always targeted and invested rather heavily in the infrastructure in markets. Certainly, these are emerging as this technique makes it easy to sell their product.

Coca-cola not only markets soda and fizzy drinks but a wide range of healthy options to act to its benefits, including bottled water and fresh juices. Out of the 500+ products that Coca-Cola markets, water and its flagship product, Coca-Cola presents the company’s biggest opportunity ahead. The annual review of 2011 revealed that Coca-Cola company experienced a 3% increase in the global sales volume of coca-cola in the year, while its bottled water brand Dasani saw a 10% global sales volume increase (Bias, 2012).

Coca-Cola as an Innovator

Coca-Cola cola, from the very start of its success ladder, has been involved in different forms of innovation, which have cost the company a lot but have also acted to benefit it. As mentioned earlier, Coca Cola has focused on infrastructure more to sell its products and has invested heavily in it. One case that can be considered here is the India case, which is presently Coca-Cola’s seventh-largest market in terms of volume sales (Gupta, 2013). When Coca-Cola introduced itself in India after a 16-year exile from India in 1993, it had to face a fierce battle against its arch-rival Pepsico, which held 40% of the market share, while the leading beverage company in the country, Parle enjoyed 60% shares (Gupta, 2013).

Today, the consumption of beverages in India has increased by seven folds compared to 1993, when Coca-Cola was available with only 6% of the beverage suppliers in the country and is now available at 25% of beverages FMCG retailers. Coke, however had to invest $3.5 billion to attain this success.

Coke invested in its innovative hardened plastic crates instead of wooden ones (Gupta, 2013). It introduced a new self-serve dispenser for beverages. They are capable of saving a lot of storage space compared to traditional tap fountains (Innovation Weblog, 2013). It includes Energy efficient coolers, Plant bottle technology (Coca Cola Company, 2013b), etc.

In addition to innovation in the product and selling techniques, Coca-cola invested highly in human health. The other social sectors were in the form of introducing micro-dosing technology. Which was effectively being used for measuring amounts of cancer drugs and dialysis. They have many other contributions towards innovation contributing to mankind (Innovation weblog, 2013). The introduction of EKOCENTER a campaign dedicated to providing safe drinking water to rural areas, especially in Africa (Coca Cola Company, 2013a). Coca-Cola contributed US$2.5 million to aid typhoon relief in the Philippines (Coca-Cola Company, 2013b).

From the beginning of the formation of the Coca-Cola Company, Coca-Cola is working in innovation. It has experienced forms of open innovation, including global partners, to help them in their quest. The company continuously aims to know its customers better and continuously innovates in ingredients, products, equipment, packaging, and everything else (Moye, 2013).

Coca-Cola follows a “Distributed, Connected and Shared” system of R&D and uses its global presence to innovate with its partners. One example will be of a product Minute Maid Pulpy, which contains bits of the fruit of which the drink is. The product was initially available in the company’s Shanghai R&D and rolled in China initially before hitting other markets. Currently, Coca Cola Company has 6 R&D centers across the globe working simultaneously for improvements in every discipline of the company (Moye, 2013).

Coca-Cola as an Entrepreneurial Organization

Coca cola’ strength lies in its ability to perform its ideas and blend the customer’s choices. The company’s innovative qualities into justified entrepreneurial activities. The company’s old legacy proves how it has managed to increasingly apply profits to its accounts by using market-friendly techniques from the start.

Coca-cola has, from the start, focused on getting close to customers and blending in their lives as part of it. For this purpose, one marketing technique the company is successfully using the slogans. They use to define the company’s goals in alignment with the customer’s goals.

The history of slogans and Coca-Cola starts in 1940 when the first slogan, “The only thing like Cocas cola is Coca cola itself,” was released, followed by the “Where there’s coke there’s hospitality.” slogan, each representing a specialty of the product and its link with human nature (The Coca Cola Company, 2013c). The company has also used unique advertising and marketing ideas to its credit and has even won the unique ad popular customer award for its exclusive ideas.

Coca-cola is a fully-fledged entrepreneurial organization focusing on all aspects of how to promote its products and increase revenues. Coca-Cola believes that every person that works in the organization is a walking entrepreneur and regularly holds activities that promote new ideas and concepts that come from the very root of the organization. One such activity was held in the headquarters of Coca-Cola in Atlanta, which was a 54-hour event in which start-up ideas were collected from employees. The basic idea behind the activity was to educate and inspire entrepreneurship in the organization. Every June, the Coca-Cola team meet up for three days and pitch in ideas and launch new ideas for products that create new business models and build a prototype that validate ideas in accordance with real customers. The company’s judge panels then further approve the ideas after inspection.

After analyzing the Coca-Cola Company, we can said that the company is a true example of an organization that continuously seeks to create opportunities. Also, develop them through means of continuous innovation in all areas of the company. Also, the company practices entrepreneurship in its true essence and promotes it within the organization as well.

Coca-Cola as a 125-Year-Old Organization

Coca-Cola, based on its innovative ideas of creating prospects and opportunities based in different areas of the world. It has gained the status of a world No. 1 beverage organization. However, another name that seems to compete in any way being Pepsico. The rivalry between Coca-cola and Pepsico has been as long as the journey of the company itself. However, it is only through innovative strategies, excellent entrepreneurial ideas. Both have abilities to create, develop and take advantage of all opportunities that come their way.

The best example is India, as discussed above. This is an excellent example that shows how Coca Cola through different techniques, managed to re-root itself in a country. From where it left 16 years ago and with a better implementation strategy and better entrepreneurs to handle this vast market. However, the organization again established itself in a market whose 40% shares were at that in control of Coca Cola’s arch-rival Pepsico. Coca-Cola reclaimed the market and today aims at making it its fifth largest market globally from being the seventh largest presently. The program implementation has an 8-year strategy is on its way (Gupta, 2013).

Conclusion

Coca-cola has 125-year-old history It has been an organization that has continuously created and developed opportunities. These activities helped its growth in various different markets of the world. The result is evident today in the form of 500 plus products in the market today in 200 different regions. This, however would not have been possible if the company had not invested heavily in innovation activities. It includes innovation in products, equipment, services, marketing, etc. Coca-Cola Company has been exceptional in every regard. It includes the skills of its entrepreneurs. Moreover, its will to gather ideas from every possible corner and proper implementation have acted in favor of the company.

Coca-Cola’s main aim has always been to know people better and make their product a compulsory part of their lives. The use of slogans, participating in community service activities, and sponsoring sports are some of the ways the company has successfully exploited to enter the lives of customers and prove the worth of the company’s products as a part of everyone’s life. New marketing and advertising techniques have also helped the organization well. All in all Coca Cola proves to be an organization that has an even brighter future ahead.

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References

Bias, W. (2012). Coca Cola: Strengths, Weaknesses, Opportunities and Threats. [online] Available at <http://beta.fool.com/stockdissector/2012/10/31/coca-cola-strengths-weaknesses-opportunities-and-t/15515/> [Accessed: 27 Nov, 2013].

Coca Cola Company. (2013)a. (Sep) Coca-Cola Launches Global EKOCENTER Partnership to Deliver Safe Drinking Water and Basic Necessities to Rural Communities. [online]. Available at <http://www.coca-colacompany.com/press-center/press-releases/coca-cola-launches-global-ekocenter-partnership-to-deliver-safe-drinking-water-and-basic-necessities-to-rural-communities> [Accessed: 27 Nov, 2013].

Coca Cola Company. (2013)b. (Nov) Coca-Cola Launches Global EKOCENTER Partnership to Deliver Safe Drinking Water and Basic Necessities to Rural Communities. [online]. Available at <http://www.coca-colacompany.com/press-center/press-releases/coca-cola-launches-global-ekocenter-partnership-to-deliver-safe-drinking-water-and-basic-necessities-to-rural-communities> [Accessed: 27 Nov, 2013].

Coca Cola Company. (2013)c. 125 Years of Sharing Happiness. [online] Available at <http://assets.cocacolacompany.com/7b/46/e5be4e7d43488c2ef43ca1120a15/TCCC_125Years_Booklet_Spreads_Hi.pdf> [Accessed: 27 Nov, 2013].

Gupta, S. D. (2013). Coca Cola: Fizzing with innovation, 20 Years On. [online] Available at <http://www.business-standard.com/article/management/coca-cola-fizzing-with-innovation-20-years-on-113102301186_1.html> [Accessed: 27 Nov, 2013].

Innovation Weblog. (2013). Three forms of open innovation: Cases from GE Capital, Coca-Cola, Hyundai and LG. [online] Available at <http://www.innovationmanagement.se/imtool-articles/three-forms-of-open-innovation-cases-from-ge-capital-coca-cola-hyundai-and-lg/> [Accessed: 27 Nov, 2013].

Moye. J. (2013). Rethinking R & D: How Coke Uses Its Global Scale To Take Innovations Further, Faster. [online] Available at <http://www.coca-colacompany.com/stories/rethinking-r-d-how-coke-uses-its-global-scale-to-take-innovations-further-faster> [Accessed 27 Nov, 2013]

September 10, 2023 1 comment

Business Health Medical Scholarly Writing

Pharmaceutical Industry in Swiss and China

by Shamsul September 4, 2023

Pharmaceutical Industry | An Analysis of Innovation, Creativity, and Enterprise in Swiss and China

Pharmaceutical Industry in Swiss and China

1. Introduction.

2. Industry Analysis.

2.1 Switzerland.

2.2 China.

3. Innovation, Creativity, and Enterprise.

3.1 ICT in the Pharmaceutical Industry.

3.1.1 Principles and Processes of Innovation and Creativity in the Swiss and Chinese Pharma Industry

3.1.2 Enterprise in the Swiss and Chinese Pharma Industry.

4. Conclusion.

References.

Introduction:

The report’s objective is to analyze the different aspects of innovation, creativity, and enterprise in the pharmaceutical industry specific to Switzerland and China. The details taken into account in the report span from 1990 to 2012, and data pertaining to this period is in the report.

The present situation of the industry in both countries is taken into view, along with a discussion of the economic positions these industries hold in the global market. An analysis of how and what brought them to their present positions and what is to facilitate the industry in today’s competitive world.

The report follows initially with a brief analysis of the industry in both countries, followed by the principles and processes of ICT that have been or are being planned to be incorporated into the industry and the models of innovation the two countries are presently following specific to the pharmaceutical industry.

2. Industry Analysis

2.1 Switzerland

The Swiss pharmaceutical industry is among the world’s top pharmaceutical industries, contributing to a total of 5% of the global share, ranking as the eighth largest chemical and pharmaceutical exporter worldwide. The industry contributes 48% of the total exports, with 2011 figures touching 71 billion CHF (Science Industries, 2012).

Novartis and Haffman-La-Roche are the two large pharmaceutical groups operating from Switzerland; however, the increased dedication towards innovation and research in the Swiss local industry has proved to be a heaven for pharmaceutical companies as besides its home companies, 41 other life sciences companies have also chosen Switzerland as their international headquarter. In contrast, 29 others operate using the land as a regional headquarters (Site Selection for Life Sciences Companies, 2013).

Switzerland is among the six countries that collectively spend 92% of the entire R&D expenditure globally (Zeller, 2004).

According to 2012 sales figures, Swiss pharmaceutical company Novartis stood at the second position in terms of highest sales in the year with the second largest R&D budget at US $9.33 billion, whereas another Swiss company, Roche, according to annual sales, rested at the eighth position; however, the company spends the largest amount on R&D compared to any other country in the world amounting to US $ 10.44 billion (Current Partnering, 2013).

2.2 China

China, being the largest populated country contributing to 20% of the global population, has a pharmaceutical 9ndustry that contributes only 1.5% of the worldwide drug market share. In its 12th healthcare reform in 2011, China dedicated RMB850 billion towards developing its healthcare system (Deloitte, 2011). China has been concentrating on its pharmaceutical industry structure and has experienced an average growth rate of 16.72% in the last few decades; however, the level of operation is still on a small scale. One major hindrance besides other factors in the rapid development of the industry is outdated manufacturing technology, as the sector still needs more innovation and investments in R&D.. Presently, 3,000 pharmaceutical products are being manufactured in China out of 90% are foreign product copies. Only a handful of 5,000 R&D Chinese institutions can compete internationally.

3. Innovation, Creativity, and Enterprise

Innovation, Creativity, and Enterprise (ICT) is the general technology that emerged in the late 80s and gained momentum in the early 90s. ICT refers to the convergence of communication technologies and information technology, termed as ICT. The basic idea behind the ICT concept is to save costs and create value-adding innovations. ICT advances have thus contributed to different industries by reducing the costs of gathering data and storing, processing, retrieving, analyzing, and transmitting all information(Productivity Commission, 2004).

Thus, ICT has also contributed a lot to the pharmaceutical industry worldwide, and we will discuss examples pertaining to the selected countries in this report.

3.1 ICT in the Pharmaceutical Industry

Countries worldwide, especially in Europe, Western World, and some Asian countries in the past few decades, have increasingly invested in R&D, and the ratio of GDP investment is increasing yearly. ICT has increasingly helped the pharmaceutical industry introduce innovation in processes, the structure of organizations, and the end product itself. These improved processes add value to products, improving the quality, convenience, and timeliness for customers or end users, reducing waste and coordination costs, and facilitating specialization and outsourcing. ICT thus offers more effective and efficient output generation from capital and labor inputs (Productivity Commission, 2004).

3.1.1 Principles and Processes of Innovation and Creativity in the Swiss and Chinese Pharma Industry

Innovation goes a long way in the pharmaceutical industry of Switzerland. Especially since pharmaceutical companies hold patents for any new drug or medicine introduced, prohibiting others from producing the same drug using the same process; however, there is room to constitute the same drug using a different approach, method, component, or material. For this, extensive levels of innovation are patenting leaves room for an innovator who can develop the same drug or a new one by introducing a new technique.

As much as pharmaceutical companies need innovation to bag a larger market share, pharmaceutical innovation often results in costly products, which is added on by the further cost marketing of new pharmaceutical products, making the end products for the user financially heavy. Also, due to the patent law in many top pharmaceutical market share holder countries, consumers residing in poor countries are often hurt as these medicines do not reach them (Boldrin & Levine, n.a).

In China’s case, the country lacks the kind of investment needed for R&D, especially in the pharmaceutical industry. Even though the rising global share of Chinese pharmaceutical sales were almost 97% of the chemical products until 2007. It includues pharmaceuticals were generic and roughly only two drugs were domestically developed (Huang, 2013). The government plans to invest mainly in the R&D sector, evident from the figures that state China was the second highest R&D investor in the world in 2011 from number 9 in 2007 (China Bio, 2012).

Many factors are playing their role in promoting innovation in the Chinese pharmaceutical industry today, as the government’s pressure to lower the prices of generic drugs forces domestic producers to shift towards innovative high-priced medicines. To introduce such high-value pharmaceutical products and reduce the process’s development risks, China is planning to look towards the proven in-license technology used in the West. This trend will also motivate and lure international MNCs to invest in the Chinese market. International collaborations and cross-border strategic alliance activity further pave the way for introducing innovative drugs. Novartis, a leading Swiss-based pharmaceutical company, is opening its R&D center in Shanghai, which will further facilitate the innovation process in the industry for both countries. (China Bio, 2012).

Both the Swiss and Chinese pharmaceutical industries are aligned with high potential, with the Swiss industry already enjoying a top position in the global pharmaceutical market while the Chinese industry is rapidly gaining on the way.

3.1.2 Enterprise in the Swiss and Chinese Pharma Industry

The Chinese pharmaceutical market had about 3,500 companies in 2011, compared to 5,000 in 2004. Even though China is a fast-growing pharmaceutical consumption market, the number of local companies is in decline, mainly due to the rising competition. China has been following the imitating innovation method to date to compete with the highly developed and financed industry of the West; however, presently, the government has dedicated itself towards more rapid and accurate innovation processes and is now incorporating cooperative innovation processes, bringing in use the previous researches and methods used in the West and investing in new techniques both in the scientific research area and in academics as well.

The Swiss industry, however, is very much developed, even in the field of R&D, and follows the self-innovation process, adding creativity to the previous cycle and adding more value. The Swiss industry innovates and does not depend on new technology to formulate; instead, it introduces new technologies (Chu & Han, 2008).

4. Conclusion

The pharmaceutical industry in both countries is at different points regarding ICT. The Swiss industry with the world’s top pharmaceutical companies operating from the government and dedicating one of the most significant R&D expenditures in the field. In contrast, China is increasingly investing in R&D and biosciences as well. However, the local pharma industry in the country has yet to sustain the overall industry growth.

The Swiss pharmaceutical industry is innovative. Presently, its companies are considered the big players in the global market. They are increasingly working towards maintaining this high share and exploring new opportunities for growth. China is way behind compared to Switzerland. However, it is a growing industry as China has the most prominent pharmaceutical product consumption capacity. Previously, China has followed the imitating innovative practices and produced only copies of famous drugs. However, the government has entered into contracts that support collaborative innovation practices. They are using the technologies that Western countries have so successfully applied, China plans to move ahead in the pharmaceutical industry in the years to come.

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Social Media – Exploitation By Terrorists and Uses In Counter Terrorism. UAE Case

by Shamsul July 15, 2023

Social Media -Exploitation By Terrorists and Uses In Counter Terrorism. UAE Case.

Abstract

The study focuses on one major aspect that has taken the world by storm a few years back, the crisis of ever-increasing cyber terrorism. Initially, the paper discusses how the proposed problem affects the world and the consequences resulting in return.

The internet is an open source of information. While its basic purpose was to offer information to everyone, one aspect that went unattended ahead and is now creating problems for people the world over is how to protect that information from being used wrongfully or for destructive purposes.

It is an open fact that even though terrorists have managed to grow their ground forces in certain territories, their extent expanded only through means of online sources, social media, to be specific. Where terrorists realized that they could not move within the boundaries of more law profound and centralized countries, the internet provided them the source to reach every corner of the world. It spread its cause and message, recruiting people who could execute its plans and collecting like-minded individuals to aid its cause. This was one blow that the world was not expecting, and even though countermeasures have been put into place; however, still sources such as social media are proving to be more beneficial to terrorist groups than to governments that aim at controlling it.

In the wake of these findings, the paper focuses specifically on the case of UAE as to what social norms are being practiced in the society, how they have aided or strengthened the cause of terrorism, and what measures have been taken by the government to counter such activities.

UAE is considered a moderate Islamic country that does not believe in extremism and has applied, in collaboration with the outer, more developed world, schemes to counter cyberterrorism and other cyber sources through which acts of terrorism can occur. Different countries react differently to terrorism today, and the one differentiating factor is the social norms that exist in every society. While some societies may be considered as being tolerant, others are more irritated by certain behaviors or attitudes.

Social norms in this aspect play a vital role and thus are specifically studied in the paper as to what is it that pushes society towards being favorable for a society or vice versa.

Introduction

Social networking sites, also called online social networking sites, are a form of social media that connects the entire world. Users create their profiles with all related information and are enabled with the ability to exchange and share written and multimedia content with others. While this has tremendously changed the ways people communicate with each other today, it has also facilitated terrorists all over the world, who are also changing the conventional communication methods followed earlier and are adapting the use of social media as a major communication platform. Besides delivering massive advantages to diverse operational spheres of our society and the world as a whole, it has equally proven to be beneficial to terrorist organizations as well.

Terrorist organizations’ social media use is broadly divided into two categories. These two categories are in no way exclusive to any act. Depending on the activity and the organization’s aim, these categories may often crossover with each other. The first category involves all communication benefits, encompassing recruitment of innocent people through connecting with potential radicals (Conway, 2016), collaborating with associates, creating forums or groups (Rogan, 2006), offering digital environments for training, coordinating terrorist activities and propagating material related to terrorist organizations (Klausen, 2015). Further on, social media has successfully offered terrorist organizations a concealed and secretive environment of communication that is largely undetectable and easily conveyed to the other party. Also, platforms are offered by Whatsapp and Apple. inc, such as private chats and groups, also offer hidden effective protocols to users, which further aid their purpose.

The other category includes activities related to operational digital action, inclusive of all activities of terrorist groups intended towards spreading terror among the mass population. These activities may include infrastructure sabotage (cyber-based), propagating attack threats (Grob-Fritzgibbon, 2010), exploiting restricted and open source data holdings in order to obtain inside info and intelligence of assets, operational finance, coordinating activities and planning of operations (West, 2014).

The most prominent feature of social media used by terrorist organizations is the user-friendly communication offered. For example, anyone can easily access bomb-making instructions from the internet besides several other dangerous and illicit materials (Lumbaca, 2011). Even though the internet was initially designed to accelerate the simplicity of communication, today, even communication security is compromised (Bertram, 2016). The reason why social media or the internet as a whole suits terrorist organizations, in the words of Weimann (2006), is explained as offering everything they want. It is decentralized, subject to no restriction or control, is not at all censored and offers access to everyone who requires it.

So, to sum up, the use of social media at the hands of terrorists is used for deployment and radicalization purposes are

Offering the benefits of bridging the barriers of communication between potential recruits along with offering easy propaganda access, offering digital existence, or supporting the continuance of the terrorist organization through offering cyberspace for training, allowing posting of instructions and manuals for new terrorist recruits, etc. (Torok, 2013).
Offering a safe space keeps them beyond the possibility of being attacked or safety beyond detection. Rather, reaching out to potential audiences through faking identity and location offers benefits that at points, even exceed those associated with anonymity, as the job gets done and there is no way of catching the culprit who does it (Theohary, 2011).
Also, the adaptability features of terrorist organizations have further worsened the situation as they no longer rely solely on third-party developed sources; instead, they have also digitally advanced themselves. It proves that terrorist organizations have succeeded far more than states when using social media platforms toward their goals (Weimann, n.a.).

Besides the well-known threats of terrorist activities, other forms of cyber terrorism include hacking or unauthorized access, Trojan attacks, virus attacks, email-related crimes, etc.

Before discussing what cyberterrorism means in UAE today and what is being done to counter such activities, let us first consider social norms, which help us understand how it plays a part in terrorist activities and how it restricts or supports terrorist activities in society.

Social Norms

Social norms are the set of rules that are unquestionably followed by a group of people which define which attitudes, beliefs, values, and behaviors are acceptable and which are not. These rules could be either implicit or explicit, and failing to resort to these rules result in the form of punishments that can be severe at times (Changing Minds, 2017). Thus, Social norms define how we should or should not behave in public. Talking in the context of Dubai, dressing up appropriately in not-too-revealing dresses is a rule, even if there is no formal penalty or law against such an act (Remember, nudity is a law-offensive act, though). Even ladies who dress up in knee-length skirts, even though may not be taken as going against the laws of the country (though some states are more conservative than the more liberal ones of Dubai and Abu Dhabi), but still may not be looked upon as being very respectful. Dressing up fully covered is the followed norm in the country and is respected too for women. For men staying too close to their wives or any other females, frequent touching and other such gestures are also not welcomed, and it is a norm not to engage too much with the opposite gender in public.

Social Norms And Terrorism

Terrorism is a complex topic, and explanations of what and why are dispersed, sometimes biased, due to social prejudices and political assumptions, and sometimes defined in various theoretical perspectives (De La Corte, 2007). As far as social norms and terrorism is concerned, social psychologists believe that the environments in which an individual thrives and the social settings in which they live highly influence their psychological predispositions. So if the overall societal culture, norms, and beliefs do not correspond with the accurate interpretation of terrorism or terrorist attacks, it would affect their thinking and influence negative actions within an individual (Kruglanski & Webster, 1991), 2003). One example of this theory is that minority groups are often seen to be involved in terrorist activities as they think, and it is considered a societal norm that through this way, they will be able to bring about social change and earn more respect for themselves; this is why the majority of terrorism activities emerge from minority groups (Krugklanski & Webster, 1991)

Social Norm and Cyber Terrorism (Propaganda)

Cyber Terrorism is an act of terrorism spread all over the globe through means of media using the internet. While the internet and computer devices have revolutionized the world, terrorism is no different. Using the internet to spread the message of terrorism and to gather new recruits is an ever-increasing problem, and inducing a change in the minds of innocent people related to the cause and mission of the terrorist is one way of luring new recruits into terrorist activity. As defined above, social norms or the common perception of people towards terrorism are the one greatest factor that restricts or attracts a person towards such calls and actions. Terrorists today use different forms to lure believers to their cause by finding new ways of altering a person’s perceptions, beliefs, and general norms that generally prevent them from believing in the first place. One example of these actions is the fatwas and interpretations of fatwas that are floated on the net frequently in attempts to alter the social norms and beliefs that people generally carry towards terrorism and other related acts (Weimann, 2011). Weimann (2011, p765) defines jihadist fatwas and their wrongful interpretations, especially online, as being the biggest culprit of terrorism-inducing acts. He further says that “ An analysis based on a database collected in a 12-year-long project of monitoring thousands of terrorist websites illustrates how cyber-fatwas are related to key issues in promoting terrorism: justifying the use of suicide terrorism, the killing of innocents, the killing of children and women, the killing of Muslims or the use of various weapons (including weapons of mass destruction and cyberterrorism).

Social Norms And Counter Terrorism

Besides other technical and legal actions that must be taken to counter such attempts from terrorists, another vital action involves strengthening social norms in a manner that serves as a solid basis for deciphering right from wrong when the situation demands it. This is, however, easier said than done. Terrorists, in order to lure innocent individuals towards their cause, tend to follow the Foot In The Door (FITD) Effect, which means asking them for small harmless requests from others explaining why it should be done and the need for it. The theory is that if an individual understands the fundamental need as to why a particular action is to be done and complies with a small task, there is a higher probability that he or she will agree to the subsequent more extensive request as well (Burger & Guadagno, 2003). In cyber terrorism, this first request would simply be to listen to and understand their cause. If an individual agrees to do so, they will then move forward and explain other things to them. Here the role of social norms and beliefs are very important as an individual who is clear about right and wrong will be able to decipher the wrong intentions of terrorist far quicker compared to those who are not aware of it.

Thus besides placing restrictions on the operations of such organizations, there is also a need to educate the people on why and how such terrorist acts are in no way beneficial to anyone and are only a second name for mass murders or thefts being done.

UAE’s Social Conditions and the Possibility of Terrorism Existence

In terms of population, UAE’s total population is 80% expatriates from other Arab nations, South Asia, and other East Asians and Europeans. The population growth rate of UAE is among the highest in the world, primarily due to the immigrant influx in the country from the 1970s onwards. The growth rate of the UAE is estimated at 2.58% in 2015 (Index Mundi, 2016).

In terms of gender, the male-to-female ratio of the population lies at 2.2:1, with the literacy rate resting at 93.8% based on the definition of individuals over 15 years who can read and write (Index Mundi, 2016).

Given the high literacy rate of the country and the prevalence of religion (Islam) in every walk of life3, which teaches brotherhood, peace, and tolerance, UAE has greatly benefited from a somewhat natural social norm of disliking any violent activity in any form. This does not mean, however, that UAE can rest in peace in this regard as the high level of different ethnicities being part of the total demography of the country, the chances of elements that may be wrongfully or deceivably lured towards such actions or activities are very high.

What has hindered such actions is the strict obedience to law and order in the country, which largely hinders such activities as people fear being severely punished if they engage in any such violent act.

This makes being part of cyber terrorism from within UAE impossible as strict governing laws are in place to detect such activities and capturing any such individual results in a direct death penalty. As for people being lured into such activities being conducted from other places, institutions such as Awqaf, Hedayah, and SAWAB centers all play a significant role in defining societal norms by explaining with reference to the teaching of the Holy Quran and other religious teachings how terrorism activities are a criminal offense against the entire humanity.

All in all, UAE is a socially strong country, inducing rigid societal norms that essentially prevent the citizens of the country from being involved in any terrorist activity.

Cyber Terrorism in UAE

As far as incidents of terrorism, no cases have been reported that denote the success of terrorist activities in the country to date; however, when terrorists were not able to directly involve in their plans in the country, their next target was to initially focus on the strong sectors of the country, through which they can weaken its economy and then contemplate its main strategies.

For example, the country’s financial sectors have been under attack several times. However, the constant efforts towards countering such acts have managed to steer clear of any major threat to the country. Some very crucial IT companies, such as Accenture, which is a juicy targets for cyber terrorists as it offers that connectedness through linking all process control related to small city grids to desalination plants, oil, and gas pipelines, Dubai ports scheduling systems, and pretty much everything else (George-Cosh, 2011).

Most of the Middle East has been a point of constant headlines regarding terror threats circulated through social media. According to a 2014 survey conducted in Cisco’s Annual Security Report, the region has increasingly become a hotspot for cybercrime, Not only in terms of terrorist threats but also in other cybercrime events such as malware attacks on Middle East gas and oil sectors.

UAE is undoubtedly one of the region’s most comprehensive countries regarding cybercrime legislation, with several examples of addressing loopholes and real-world corroboration that may have resulted in some of the world’s most brutal criminal acts, lest they have occurred electronically.

International organizations have recognized UAE as being involved in combating terrorism, be it in the form of armed actions such as in Yemen against ISIS or through other internationally recognized legal norms such as through sieving online activities and monitoring anything that seems suspicious (Karasik, 2015). The Emirates constantly assumes the position of being a leader in the acts towards counter-terrorism, constantly tackling extremism through constantly introducing and implementing tools that hinder terrorist ideas and their funding as well (Karasik, 2015).

As a result of the country not only is UAE forced to handle the terrorism aspects that are expected to infiltrate the youth of the country via social media, rather it is also forced to counter other terrorist acts targeted by terrorists towards weakening the country’s stance by means of posing threats to the country’s financial infrastructure and other important sectors considered to be the backbone of its prosperity.

New laws are initiated on a regular basis that aims to target the bud before it blossoms. In the words of Illyas Kooliyankal, IT Officer at ADX (AbuDhabi et al.), “So many people come with new types of attacks, and we are always preparing for the worse. All criminals are in the electronic world now, and catching them is not easy, as they are hidden”. As the dependency and access to technology increases, so does the involved risk at unprecedented levels.

Religion as A Societal Norm That Hinders Cyber Terrorists From Penetrating In UAE

Religion is by far the most significant influencer when it comes to maintaining law and order in UAE, and the same goes for controlling acts of terrorism, either physical or cyber-based. UAE is a modern Islamic state with laws reflecting the prevalent religious beliefs of Islam. The religion Islam offers contemporary values and norms that integrate solidarity and effectiveness in communities, development, and the establishment and promote interpersonal associations and social constitution. In the words of Pakeeza & Chishti (n.a., p1851), “Islamic approach for the establishment of peace and welfare of humanity emphasizes on –the establishment of social peace, moderation and snubbing all destructive activities and permitting only the positive actions.”

One great reason as to what has prevented the otherwise prevailing terrorism in the Emirates states is the strict laws that keep criminal activities at the lowest, besides paying special emphasis on enhancing the quality of lives of everyone so that people remain contended with their lives and do not stray towards wrong actions or deeds to satisfy a certain life necessity.

UAE is a developing country, far from what the third-world countries are assumed to be, offering a luxurious lifestyle, especially to dwellers of the megacities of Dubai and Abu Dhabi. However, the country’s biggest strength lies in the strictness of following and implementing rules, which are the same for the locals and ex-pats equally. For example, even though the country’s environment is multicultural, every citizen is expected to respect and follow the rules specified in the country.

Some of them may be to dress appropriately in public, avoid roaming the streets in a drunken state, etc. In many parts of the world, these things may not be considered to be acts that are punishable in any way; however, since the rules in Dubai restrict such acts, everyone living in the country is expected to follow them. While some acts may just seem inappropriate based on the followed customs and norms of UAE (e.g., dressing inappropriately, making rude gestures in public, or eating or drinking publicly in Ramadan, etc.), others are severely punishable in the form of imprisonment or even deportation (found drunk in public, fighting on streets, homosexuality or other severe crimes).

Maintaining zero tolerance towards all acts that alter the prevailing rules and norms of the country has so far been the greatest strength of the UAE when it comes to fighting terrorism, both in physical and cyber form.

The norms and values prevalent in UAE are strictly influenced by the religion Islam and therefore instigate peace, equality, patience, and brotherhood towards others. Islam, the main religion of the UAE, consists of economic, political, legal, and social doctrines that, in one way or another, affect all believers’ social life (Kurtz, 1995). For Muslims, faith is not related only to how they live their personal lives or handle their matters with god; it is also related to the social consequences of their acts. As Stark et al. (1982) explain, Islam in its followers develop a heightened sense of moral community, where a strong social force is a religion that also generates social sanctions against acts, thus contributing to lower criminal activities.

It can rightfully be said that one reason that criminal activities and acts of terrorism are low in the UAE is the prevalence of strict rules based on firm religious norms. These norms initially hinder individuals from conducting such acts, and in case someone does, severe punishments are followed for serious crimes depending on their severity (Hoffman, n.a.).

Considering these beliefs and these norms in mind, terrorism, which is considered a severe crime in the Islamic teachings, and the norms and culture of Islamic countries (Klausen, 2015), including UAE, severe punishments were put in place. Sighting the enhanced frequency of such crimes being held today globally, swift and strict actions were also taken to counter such terrorist activities.

As oil was discovered and commercial production started, UAE became one of the few countries with the chance to experience incomparable development and income raised within 5 decades. Significant changes were experienced, from a developed education system to rapid infrastructure development and adaptation of all modern construction and consumption patterns. What remained the same was the habit of strictly following rules that were designed to promote equality and applied to every citizen of the country, whether a local or an expat. These laws incorporated all Islamic rules and regulations, promoting equality, brotherhood, and tolerance in society.

UAE is a country that has experienced vast levels of ethnicity after oil was discovered and after the country started its journey toward prosperity, and even though the locals of the country amount to only 20% of the total, the laws of the country are equally applicable to all residing in the country, irrespective of their nationality and religious beliefs however, given the situation of terrorism in the region related to ISIL, Al Nusra and Al Qaeda and the recruitment of individuals from all over the world, is making terrorism an increasing threat for UAE as well (Al-Remeithi, 2015).

UAE itself has been subjected to terrorist attacks, and according to a report by the Soufan group (2015), about 15 foreign fighters (nonofficial count) from the country have been lured into terror group fights in Syria and Iraq. Though the frequency is still very low and no involvement of UAE citizens or other expats have ever been found to be involved in any terrorist activity, however, sighting the unrest and rising terrorism in the region, the country does realize that enforcing strict control measures is a must as it is only a matter of time before activities of these terrorist groups expand further on reaching the boundaries of UAE and other neighboring countries as well (Malek, 2014).

Previous laws have been updated to current requirements related to control activities on the internet, social media specifically, and upgrading all systems and technologies so that detection of cyber crimes and the location of offenders become apparent as swiftly as possible. After capturing an offender, the decided penalties are death, life imprisonment, or fines up to Dh100 million (Salama, 2014), depending on the committed crime.

Taking this approach of moderate Islam further on, UAE regularly also employs all its other organizations related to the teachings of Islam to the general public and to educate the Emirati youth. One example is the AWQAF/General Authority of Islamic Affairs, which organizes symposiums to educate the general public against being misled by various terrorist organizations in the name of jihad, migration, or any other false claims of the Iraq Caliphate and the Levant. Also, special education and emphasis are given to educating the country’s youth against being lured into any such attempt via social media (General Authority Of Islamic Affairs & Endowments, 2015).

The AWQAF also focuses on spreading knowledge and information related specifically to suicide operations that are so glamorously propagated as martyrdom operations by ideologists, who call themselves pious Muslims. Through the use of Islamic teachings, the AWQAF explains how this is wrong and how it has nothing to do with the teachings of Islam and is only a wrongfully explained deed, which has no room in the religion of Islam. The seminar also regularly warns people that killing anyone in the name of religion or any other such act of terrorism that proves to be fatal for any brother is a wrong deed. Also, the claims of terrorist groups with the likes of Daesh and other similar groups are all false and baseless and have no basis that connects them with the teachings of Islam. All arguments put forwards by these institutions are flimsy and weak. The primary task thus of the AWQAF is to educate the youth and the people of the country against being falsely lured into terrorist activities in the name of religion (General Authority Of Islamic Affairs & Endowments, 2015).

A fundamental strength of these terrorist groups is the uneducated behavior of people, who tend to believe anything someone explains in the name of religion without actually verifying it in the first place. In this regard, the AWQAF plays a vital role in educating the masses and the country’s youth about what is right and what is not. It is a general norm in Islamic-led societies that anything that is proven to be right using religion tends to be followed by everyone lest they are satisfied with it being righteous (General Authority Of Islamic Affairs & Endowments, 2015).

Another such step is taken by the SAWAB center, which is a joint venture of UAE and the US, also directed towards educating the youth and countering the ill effects of the terrorist propaganda towards hiring new recruits for terrorist activities in the name of religion via social media (Embassy of the United Arab Emirates, 2015).

The Hedayah Center is another such initiative taken as a countermeasure against the increasing cases of cyber terrorism and the use of social media and the internet towards luring innocent youth and recruiting them as terrorists in the name of religion.

Steps Taken To Counter Cyber Terrorism Efforts

As far as countering cyber terrorism is concerned, this is a multi-faceted area that requires hindering certain aspects of cyber terrorists that evade some serious activities they conduct online. From blocking their funding sources and other acts of cyber-terrorism that they use to acquire finance to singling out the attempts to recruit individuals for their purposes to blocking modes of communication that are used to trigger terrorist activities, all require to be addressed simultaneously, if significant results are meant to be achieved.

In order to counter terrorist activities online, the initial requirement is to understand how these criminals operate and serve their purpose. Through means of acquiring forged or robbed credit cards to buy things that aid terrorist activities, fraudulently stealing money from banks, Acquiring specialized hacking services at high costs which were ready to offer them regardless of their use, organizing cybercrime groups, engaging in social media, reaching out to potential common thinkers that could prove to be future recruits, etc.

On a vast scale, in order to counter terrorism activities online, in UAE and in other countries as well, there is a need to address cyber crimes on a vast scale, including all crimes that are conducted online, as any act could be a possible link to the future cyber terrorism activity.

Conclusion

After analyzing the situation of cybercrime in the world and studying the case of UAE in particular, it can be said that while UAE is not a name seen at the forefront regarding terrorist activities, however, there is a high chance that the country could be sucked into the vortex of terrorism, lest it does not take proper measures against it.

Although the efforts of the UAE government on various fronts are commendable, they are collaborating with international organizations to create a more comprehensive and loop-free cybercrime environment and enforce new strict laws against such crimes. Also, in order to protect their youth from the ill effects of being trapped in the hands of cybercrime sources, different institutions that center on educating the people related to how these organizations perform, how their claims are false and fake, how religion is falsely being used for immoral purposes, etc. are explained.

Being a prosperous, peaceful, and moderate country that has experienced modernization and financial prosperity in a very little time, UAE carries tolerance, patience, and acceptance as a general norm, and acts of terrorism are very much against the common mood or behavior of the country’s population. The growing education perspective and exposure to the world in the country has also offered them insight into how the world operates and why the claims of terrorist groups are mere hoaxes and only a way to attain their motives, which has nothing to do with their actual claims.

One thing that Islam teaches Muslims is to educate themselves and their children so that they can decipher right from wrong, and this is one aspect that the UAE, in general, follows, showing positive signs of combating terrorist sources, which thrive on the uneducated nature of the decision-making of individuals.

Besides being a strict country that follows Islamic rules, UAE is also a moderate country of the world, dedicated to moving forward with the world following the rule of peace and prosperity. This is one positive sign that indicates that with positive enforcement of anti-cyber terrorism measures, the country can succeed in controlling all terrorist activities. However, the end result remains on the efforts made and their effectiveness.

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1.3 RESEARCH OBJECTIVES:

1.4 SCOPE AND LIMITATION:

1.5 SIGNIFICANCE OF THE STUDY:

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