Master Tiles in Qatar Final Project (Main)

1. IntroductionQatarQatar, officially state of Qatar is a country of Middle East occupying the Qatar peninsula (Land projecting into the water) on the larger Arab peninsula. It got Independence from United Kingdom in 1971. The boundaries of Qatar are attaching with Sudia Arabia in south and with the Persian Gulf countries. The total area of Qatar is approximately is 11,610 km. The most area of Qatar is desert. The Qatar is absolute Monarchy (Hierarchy) state, which is control by chief of state called Amir or Sheikh and the head of government is Prime Minister.The Qatars economy is mixed (High-Income economy) which provide a variety of private freedom, combined with centralized economic planning and government policies, rules and regulations. The economy of Qatar is depends on hydrocarbons; the country possesses the biggest natural gas field in the world. The Qatar got 31/187 HDI (World Rank). The HDI Stand for Human Development Index, which includes several data such as Life Expectancy, Educations level, Careers, Cultures access etc. The Literacy rate of Qatar is 89%.The Doha is the capital city of Qatar. The total population of Qatar is approximately 2,168,673 with the natural increase 5.6% pa. The 99.1% of Qatars population is urban and .9% is rural (40% Arab, 18% Pakistani, 18% Indian, 10% Iranian and 14 % others). Islam is main religion of Qatar which is about 77.5% of total population. The remaining religions are 8.5% Christian and other is 14%. The official language of Qatar is Arabic and business language is English.The Qatars culture means music art dressing etc is similar to other Arab countries (Persian Gulf) culture. Sharia law is uses as the basis of government in Qatar. The National of Qatar mostly follow Hanbali Madhab which means one of the four schools of Fiqh or religious law within Sunni Islam.In Qatar woman have full right to take her role in society and also take part in the development of country. The Qatari women have proved their ability that they do work for the development of their country alongside their fellow man in all fields. Qatar is the first Gulf country how allows women to participate in municipal elections in 1999. That is why, the percentage of women who take part in the municipal elections in 1999 reached 47%. The Qatari government allows women to drive legally. Under the leadership of Emir Hamad, Qatar has experienced of sociopolitical liberalization, including the approval of womens liberationThe national currency of Qatar is Qatari Rial (QAR). 1 QAR = 0.2747 USD and 1 USD = 3.6410 QAR 1 QAR = .2441 EUR and 1 EUR = 4.0971 QAR 1 QAR = 27.97 PKR and 1 PKR = 0.03575 QARThe Gross Domestic Product (GDP) of Qatar is 203.235 million US Dollars and its rank is 51 according to World Bank and increase in GDP is 6.3% in 2014. The per capita GDP of Qatar is 102,700 US Dollars. The GDP of Qatar according to sector is following: Industry contribute 79.1% Services contribute 20.9% Agriculture contribute 0%(Qatars GDP Contribution Graph)The inflation rate of Qatar is 2.8% and Unemployment rate is 0.4%Qatar is the major producer of natural gas and also petroleum items. That is Why, Qatar imports their product for the purpose of foreign exchange and also imports product which it cannot produce.

Master Tiles LTD (Master Group of Industries)Form of Business:4 Public Limited Companies and 6 Pvt Ltd CompaniesCompaniesThe Companies which are include in Master Group, such as Master Sanitary fittings industries Limited, Master plastic industries Limited, Master tiles & Ceramic Industries Limited, Z & J Hygienic Products Pvt Limited, Master Ballpoint Pen Industries Pvt Limited, Baby Master Diapers, Master Poly Propylene Industries, Master Multi Products, Master PPRC Industry and Master City Pvt LimitedDirectorsThe Directors of Master Group of Industries are seven which are Mr. Sheikh Javid Iqbal, Mr. Sheikh Pervaiz Iqbal, Mr. Sheikh Mahmood Iqbal, Mr. Sheikh Nasir Iqbal, Mr. Sheikh Maqsood Iqbal, Mr. Sheikh Muhammad Akbar and Mr. Sheikh Muhammad AsgharName of BusinessCompany name on which we are focusing is MASTER TILES AND CERAMICS LTD is a subsidiary of MASTER GROUP OF INDUSTRIESStarting of BusinessMaster sanitary fittings were starting by Sheikh Muhammad Javid Iqbal in 1982, which is the very 1st business of Master Group. In 1995 its begin the production of tiles with the name of Master tiles and Ceramics Industries Limited and in 2003 it introduced granite tiles in Pakistani market.Timing: (For Master tiles LTD)The timing of Master Tiles is Full time, 24 hours a day and 3 shifts of Labor (8 hours/ shift)LocationHead officeG.T. Road Gujranwala, PakistanProduction Site (For Granite Tiles)G.T. Road Kamoke, Gujranwala, PakistanProduction Capacity30000 Sq. MeterContact InformationPh# 092-055-111-300-400Fax# 055-272127, 272721Email [email protected] Address http://www.mastertiles.comBusiness AdvisorsMaster Tiles is a big business unit so for better performance in the market. It needs some advisor which is a Legal Advisor Firm, Chartered Accountant Firm, Advertising Agency, Ahmad Rauf Associates, Illyas Saleem Company Lahore, Creative Consultants

2. Firm AnalysisMaster tiles was Formed by Sheikh Mahmood Iqbal in 1995. It is located in Gujranwala near Kamoke. Master Tiles is one of the best tiles producer/manufacturers in Pakistan. Master Tiles provides opportunities to upgrade or improve the standard of living or life style by introducing the Granite Tiles for the 1st time in Pakistan with best and latest Italian technology. The Master Tiles import their Granite Tiles manufacturing plant from Italy in 2002. For the better result and Quality production they hire the engineers from Italy which operates that plant. The Hiring of Engineers from Italy is made because there is no engineer available in Pakistan which operates that plant. They have also hired some foreign employees like Italians &Mexicans who had been working there for more than 13 years. They have hired quality, skilled and well educated staff. Master Tiles plant has a capacity to produce more than 30000 Sq/meter tiles per day. The Company also Exports the tiles to UK, Afghanistan, Italy and UAE.The Professional team in the departments such as Marketing, Finance, Production, Quality Control, Research & Development, Customer Care DepartmentMaster tiles have a computerized system in the organization. Computer network is used to share the information between departments. Master Tiles have quality, skilled and qualified employees. Master Tiles manufactures/produce tiles in different designs and colors. Master Tiles are planning to build another new manufacturing plant to meet the demand which are about to be increase in future. The key product of Master Tiles is Granite Tile. The Granite Tile is manufactured by the Granite stone. Granite is the most durable building stone because it is porous quality stone. Granite is easier to maintain then marble because it is very hard material. Granite is formed/made under the surface of earth at extreme highly temperatures. In KPK and Baluchistan and in different Northern Areas Granite stone is easily available. Granite is the one of the largest extracted mineral.Therefore, we decided that we also exports tiles to Qatar. Because lots of construction projects are start in Qatar Like hotels, restaurants, Football Stadiums Buildings Shopping malls and others. The reasons of starting of construction projects is that the Qatar host the FIFA World Cup 2022 and Asia Football Cup in 2018 and also World Fencing Championship 2017. Due to hosting of FIFA world Cup and other major sports events many foreigners(Different Countries National) comes to Qatar for watching and enjoying the football match (World Cup)and other sports events. So that it is a great opportunities for businesses to establish their business in Qatar because it is a very good road to enter in international trade and make their products and company as a multinational product and company because football is a world famous game and people like football more than other sports. That is why, we decided to take this opportunity and export their tiles to Qatar for the purpose of making their product and company a multinational product and company.The other reasons are the Qatari government allows foreigners to invest their money for incensement of their business and also income. They Give benefits to foreigners for investment in Qatar such Tax free for a specified period of time and also provide help for starting and operating their businessesMissionThe ceramic tiles industry is a major force for the improvement of quality of life across the world. Master aims to be the leading manufacturer of best quality ceramic tiles and pledges to prove its customers with latest designs, varieties and innovative products in line with the internationally changing trends. Through achievement of our aim we will enhance the wealth and well being of our stakeholders, employees and communities, whom we serve and in which we operate.VisionMasters vision is to lead the market with innovations in product development to improve the quality of life and lifestyle of its customers. With timely adoptions to rapidly developing technologies and meaningful investment in human resource training, Master will serve to maintain the differentiation edge through provision of unmatched products and services to its customers at a competitive price.Quality PolicyAt Master, Quality Management System (QMS) is aimed, planned, developed and implemented to bring excellence in our products and services. We believe that quality adds value and we are determined to serve our valuable customers with highest quality products in order to provide best value for their money. Compliance with related legislation, regulations and code of conduct are central to our quality policy.

Certifications

ISO 9001: 2000 (UKAS Quality Management)

Award (Brand of the year Award in 2009 in Ceramics tiles category)

Domestic & International MarketsMaster Tiles have a rewarded that it is a quality leader in the production of tiles in Pakistan. So Master is taking the exports markets and makes Pakistan Proud.When it comes to quality in a global context, Master has got a dual advantage as compared to any other producer in the world. Master operates the worlds latest Italian plant and equipment under the supervision of leading Italian professionals. The real edge/advantage comes from the availability of unique quality of raw materials, are unmatched in the world. This exclusive combination results in a product, make it good. That is why, customers all across the globe having access to our products choose them as their 1st preference. The trust which is given to Masters products by Pakistani people, that rapidly increases beyond the borders.Currently, Master is exporting its products to United Kingdom and Afghanistan directly and indirectly to many European, Middle East, Asian and African markets. This time Master is decided to exports their products to Qatar because of starting of construction projects and FIFA world Cup 2022 for the awareness of their products throughout the world.SWOT AnalysisStrengths The main strength of Master Tiles is their newest technological and hi-tech imported plant which is extremely computerized. The strength of Master Tiles is their vastly professionals and skilled/expert foreign personnel who are working there for more than thirteen years. One of the strength of Master Tiles is its production ability or capacity. It can produce more that 30000 Sq/meter per day which is the upper most as compared to the local competitors. Master Tiles has the ability to meet the vast demand. They have a computerized structure through which communication between different departments can be done quicker. They have their own Research and Development sector and they always seek to find the new opportunities to improve the quality and create new innovations. They have a large distribution channel all over the Pakistan. They have good and long term associations with their dealers. They can construct squander range of designs, styles and colors which is one of the foremost strength of Master Tiles.Weaknesses: The main weakness of Master Tiles is the maintenance and repairing of its Italian manufacturing plant. Once there is a problem in plant then it requires a full day for repairing and again become in operational positions so it could be a further weakness of Master tiles. A further weakness of Master tiles is that networking system because there whole internal communication based on networking so if there could be any problem in key server so their whole communication will stop. As company divides whole Pakistan into diverse region sop if there is miss communication between each region and company and if it affects their supply chain process than it could be a further weakness of the company.Opportunities Qatar has one of the highest GDP per head in the world and the per capita income is $93714. SO, the purchasing power of residence of Qatar is high to purchase our products. The Budget of Qatar is in surplus which is 22.3 Billion Qatari Rail. It represent that there is much capacity in its budget to import because according to economist, the balance between the exports and imports is suitable for any country. We are going to export our products in Qatar. So, we have to deal with letter of credit and bill of lading and in case of urgent need of money we can receive/withdraw the money from the importer at any time but the condition with great credit worthiness and by delivering the ordered products. There is no restrictions in investing in Qatar and withdrawing the investment from Qatar and free from restriction of capital outflow and inflow. The currency of Qatar is almost stable but the Pakistani currency is fluctuating time to time. It means in case of depreciation of Pakistani currency we will receive the high transfer receipts.

Threats Brand Recognition-Master tiles will newly launch in Qatar. So it will be faced brand recognition challenges among existing brand which have well brand recognition in Qatar Financial Stability of Retailer-Master Tiles will not have its own distribution channel or outlet in Qatar. So, Master Tiles will face the problem of seeking out the financially strong retailer, which he exports its products. Acceptability-Master Tiles will be newly export to Qatar. So, it will face another challenge of customer acceptability of its product because it is very much difficult for newly launched product to gain customer acceptability for its goods/products. International Competition-There is international suppliers in Qatar who provides tiles to people for construction purposes. So, it will be another challenge foe Master Tiles to compete in with those international competitors for getting reasonable market shares because these competitors are old in the Qatari tiles market and they are well established. Meet International Standards-It also another challenge for Master Tiles to maintain international quality standard because of competing with international brands which is known by people of Qatar and also people of world.

3. Political EnvironmentPolitical SystemThe Qatar is absolute Monarchy (Hierarchy) state, which is control by chief of state called Amir or Sheikh and the head of government is Prime Minister.RulerMuhammad1868-1878

Qasim1878-1913

Ahmad1893-1906

Abdullah1913-1949

Ali1949-1960

Ahmed1960-1972

Khalifa1972-1995

Hamad1995-

Executive BranchIn Qatar, Al Thani family holds power, since getting independence in 1971 from United Kingdom. The head of state/country called Emir and the head of Government Called Prime Minister. Politically Qatar is involving from a traditional society into a modern welfare state. Government department have been established to meet the requirement of social and economic progress. The basic law of Qatar is Sharia (Islamic law), granting the Emir preeminent power. The Emirs role is influenced by continuing traditions of consultation, rule by consensus and the citizens have a right to appeal personally to Emir. The Emir, while directly accountable to no one, cannot break the Sharia (Islamic law) and, in practice, Emir must consider the particularly important phenomenon and the religious establishment. In the Advisory Council their position was institutionalized, an appointed body that help Emir in formulating policy. Qatar has no electoral system. Qatari government banned Political parties.Tamim bin Hamad Al Thanibecame the Emir of Qatar on 25 June 2015 after his father Hamad bin Khalifa Al Thani handed over power to him in a televised speech.OfficeNamePartySince

EmirTamim bin Hamad Al Thani25 June 2013

Prime MinisterAbdullah bin Nasser bin Khalifa Al Thani25 June 2013

Main Office holders

MinistriesThe ministries of Qatar is the ministry of Foreign Affairs, Defense, Interior, Public Health, Energy and Industry, Municipal and Urban Planning, Finance, Culture Arts and Heritage, Labor and Social Affairs, Education and Higher Education, Endowments and Islamic Affairs, Amiri Diwan -SheikhAbdullah bin Khalifa Al Thani (Prime Minister), Department of Investment Promotion, Council for Family Affairs (Supreme), Judiciary Council(Supreme), Public Prosecution, Qatar News Agency (Minister of Information)Consultative AssemblyThe Consultative Assembly (Majlis as-Shura) has appointed 35 members with only consultative tasks. In 2003, Qatars Constitution calls for a 45 member elected Legislature, which include 30 elected representatives and 15 appointed by theEmir. Prime Minister Al Thaniin 2006 & then theDeputy Prime Minister announced that elections would be held in 2007 but only lawmaking council evaluation the subject was created that year. The elections have been delayed three times; most recently in June 2010,when the Emir Hamad bin Khalifa Al Thani unlimited the tenure of Consultative Assembly till 2013.Political PartiesNo Party in Qatar because Qatar is absolute Monarchy (Hierarchy) state, which is control by chief of state, called Amir or Sheikh and the head of government is Prime Minister.Administrative DivisionsThere are 7 municipalities of Qatar: Ad Dawah, Al Daayen, Al Rayyan, Al Khor, Al Wakrah Al Rayyan, Madinat ash Shamal and Umm SalaPolitical RiskQatar's has short-term political risk profile because it politically stable in the region. Regardless of enjoying little in the way of democratic liberty, Qataris benefit from huge hydrocarbon wealth which is increase liberally across the country's local population and enjoy the highest per capita GDP in the world. A tiny population - and one without much leaning to gripe against the government - will keep the country insulated from large-scale public turbulence in the instant term.

4. Legal EnvironmentLegal System in QatarLegal system is found in two classical sources. One it is Islamic law and seconds it is founded principle of Napoleonic civil code .In 1961, legislation process start in Qatar country when no law in Qatar country in this year as well as it is issue in official gazette.Constitution Legal System in QatarThe constitution of Qatar is based on promoting international and security in respect Of International Trade. The law explains basic and human rights .condition in legal agreement that all citizens are equal rights and duties. All people are equal and there is no gender discrimination on the basis of language and religion the law provides the administrative framework for governance the state is base on separation of authorities.Judicial SystemThe judicial system is established by the three judicial law in 2003.litigation is divided in to three stages .all court is declared result in Arabic. decision of lower court is not final .we are appeal the supreme court before decision .The supreme court shall have technical decision and have extra duties of this court described in legal principal.Commercial LawThe commercial law deal in commercial actives, commercial agencies and commercial contract of the buyer and sell. This is also regulating in banking transaction, such as bill of exchange promissory note.Commercial Companys LawThe law provides that any company establish in Qatar must be classified in to two categories one is limited liability and second is shareholding company. Limited liability mean the liability of partners are limited up to capital. Under this system investor register our company under limited liability with 2 minimum and 50 maximum shareholders with authorized share capital 200000. Public shareholding company must have 5 minimum shareholder with a capital not les n ordinary working hour and trade. The share of Shareholding Company is trade on stock exchange market.Foreign InvestorThe law regulate about the foreign investor is that he can invest in every field except commercial agencies and real estate trading. The general rule is that 51% property of business venture is owned by Qatar citizen. Foreign investor can owned ownership 49% to 100% by the decision Minister of business and trade under certain conditions.Tax LawTax is levied on foreign investor on the income arising the activates carry on in Qatar .The activities under subject to taxation professional services, speculation business, contract work or any other work under for the purpose of profits.Customs LawAny company import goods in to Qatar for the purpose of sale must have import number. This number is provided by foreign Minister .The standard rate of customs duties is 5% of imported goods value. If the imported goods from the main land of Qatar then no taxation.

Labor LawThe relationship between the employer and employee is called labor law. Regular working hours are 8 hours in a day. In Ramzan, normal working hour are not more than 6 in a day.Environment LegislationThe environment in Qatar is protected. The Protected environment provides a plate form for work peacefully. The person who is not maintains the safe environment then responsible of fine and imprisonment.Qatar Financial Centre Qatar financial centre is established in 2005.the main object of Qatar financial centre is to provide international banking service and insurance. Qatar financial centre is to provide environmental investment in various ways.Intellectual propertyIntellectual property rights are according to the territory which means they give protection against the companys product or service only in the region or country in which they are registered. When a firm is going to trade internationally then that company has to register its intellectual property in the exports markets.So for the registration of intellectual property in the Qatar the companies have to visit in the Qatar trade mark office. It also includes inventive designs or industrial models. Qatar copy rights protect original literary work and artistic works. It also includes the registration of the computer programs and databases which are very important in their subject matter or we can say that materials must be registered in the Qatar copyright office for their protection. It is also to be noted that foreign copy rights, patents and inventions must be registered in the Qatar patent office.Legal issues in international businessThe train departing from platform 1 is the 2012 train to multi-billion infrastructure project in the Middle East, which is going to connect to Qatar, UAE, Oman, Kuwait, Bahrain and Saudi Arabia due to host the FIFA world cup 2012. Thousands of legal issues arise in Qatar by doing businesses there. The Qatar government is expecting from foreign businesses that they should avoid these business mistakes in future. These mistakes arise in the areas of the company laws, foreign investment laws, tax, and employment, Immigration, tendering and engineering laws. Mostly these happen in the business set up. Certain mandatory laws of Qatar will apply other issues in the contract. Due to western standards Qatar construction laws are difficult for the constructors because of on demand work, no extension in the payment and certification periods and requirement of high performance from the project. However the agreement between the contracting parties can be amended and can also be revoked only with the consent of the contracting parties.In Qatar liability is considered a liability cap which means there liability is unlimited happens due to the fraud or mistakes. Another is the decennial liability which means strict liability under which the contractors and designers jointly guarantees that the project and other legal provisions will be completed within 10 years. Pre agreeing damages does not fix any liability but have to give insurance by consulting with their lawyers. This may be difficult for a contractor to prove that no serious damages will happen. If the liquidated damages have been happen then it can only be reduced by consulting with the court of Qatar. Otherwise all the agreement to the contrary is void. The above liability does not apply on the employers. If the losses are greater than anticipated he cannot claim more than the agreed amount.Legal RiskQatar has fair legal system. The quality of the legal system is high and the country's legal code is well developed. Contracts can be enforced. There is low Risk of Expropriation. There is a low threat from terrorism. Due to lack of corruption and restrictions Qatar becomes more attractive country for exports and Qatari government allow foreigner to invest in their country freely.

5. Economic EnvironmentEconomic systemQatar has a mix economic system. Which provide a variety of private freedom, combined with centralized economic planning and government policies, rules and regulations? The economy of Qatar is depends on hydrocarbons; the country possesses the biggest natural gas field in the world. The Qatari economy will continue to get bigger at a rapid pace over the next few years, supported by accommodative fiscal policy - Particularly infrastructure spending - and strong population increments. The non-hydrocarbons economy will force growth, with construction action and the services sector set to remain the foremost performers.Main products and servicesMore than 70% revenue of Qatar is earned by petroleum and natural liquefied gas. And GDP of Qatar is dependent on petroleum and natural liquefied gas more than 60% and roughly 85% of the earnings from export is earned by same products.The economy of Qatar having the reserves of proved oil reserves more than 15 billion barrels, and Qatar is providing the same level of production for 23 years as compare to current level. The per capita GDP of Qatar is highest all over the world due to oil. Qatar is having proved reserves of gas more than 5% of the whole world and thirdly in the countries which having highest reserves in natural gas. It is important to increase the production and export of natural gas.The long term goals of Qatar is to off shore petroleum and diversify to their economy.

IndustriesCrude Oil Production, Fertilizers, Petrochemicals and Refining Ammonia and Reinforcing Cement, Bars, Commercial Ship RepairsEconomic RiskQatar was the 1st fastest growing economy of the world over 2008-2012 with the highest GDP growth rate of 12% as compared to china (second faster) 9 %. In2013 growth rate was 6.5% and in 2014 was estimated 6.8%. IMF was anticipating that the world growth for 2014 will be at 3.6%. The Qatar has the 3rd largest economy in GCC, after Saudi Arabia and UAE. IMF forecast that the Qatar will have the highest growth rate over next five years. Qatar is ranked in 16th WEF Global competitiveness report 2015.National vision of Qatar 2030 is based on social, economic, environmental, human capital expansion. Qatar has equal to US$220bn of investments planned to deliver the National Vision 2030 and Football World Cup in 2022, including $182bn of projects to be implemented in the next five years (excluding oil and gas and private sector projects). Qatar having planned to spent $60bn expenditure of 2014-2015 highly focusing on infrastructure education and health. This is one of the most ambitious investments in the world.Large scale infrastructure includes Doha metro system, new port and road projects.Rapid growth rate of population is expected to generate demand for accommodation both residential and commercial, education & medical services. Qatar growth has built on exploiting gas on third after Russia and Iran. Qatar was the 4th largest gas producer in the world and largest LNG exporter since 2006 and its the worlds largest exporter of helium. Qatar is also an oil exporter and member of OPEC. Qatar is very important to UK energy supplies through its export of LNG.Oil and gas accounted for 58% of economy but only 6% people were employed in this sector. Services accounted for 29% of nominal GDP with 47% workforce. The non-oil companies (manufacturing, utilities & construction) accounted for 14% of nominal GDP with 46% of total workforce. Agriculture accounted for only 0.1% of GDP. Safeguarding and maximizing oil and gas but its desire to diversify its economy to different fields.The UK and Qatar are key trading partners. Qatar is the 3rd largest exporter market in the Middle East and North Africa region. An export from British to Qatar has been increased significantly from 353 million pound to 1.53 billion pound.Exports integrated industrial machinery, plant & equipment, electrical machinery, vehicles, luxury products, power generation and foodstuffs equipment. The most recent available figures for the value of the UKs export of services as well as legal, consultancy & financial services were 525m in 2012. In June 2009, Qatar and United Kingdom signed a Double Taxation Agreement. In October2009, United Kingdom and Qatar also signed an Investment Promotion & Protection Agreement, while this has yet to be ratified. In 2011, the United Kingdom was the 4th largest exporter of products to Qatar. The other major trading partners were the United State of America, United Arab Emirates, Saudi Arabia, Japan, India, Germany, Italy, France and South Korea.

6. Monetary EnvironmentCurrency SystemIn the beginning currency of Qatar was Indian rupee. Qatar adopted Saudi Rial in 1966 when India devalues its currency. After that Qatar introduced its own currency named Qatari Rial. In 1973 the Qatar Central bank was established. All notes and coins became the property of the bank but continue to circulate for several years.In 2001 the Qatari Rial was pegged with US dollars at a fixed exchange rate of USD 1 = 3.64 QAR and this agreement was signed by the Hamad Bin Khalifa Al Thani Emir of Qatar. This system explains the upper and lower limit of sale and purchase of US dollar by Qatar Central Bank with banks operating in Qatar. This was done to make ensure the stability of the Qatari Rial and to reduce the price volatility (change rapidly).Currency RiskThe Qatari Rial will remain pegged with the US dollar and revaluation is not expected in 2015-2016. This peg may create hurdles in monetary policy of Qatar and the Qatar Central Bank will have to do some extra work to adopt more flexible tools to address rising inflation and persistently high liquidity in the banking sector. There is one advantage to Qatar central Bank is that it holds large foreign reserves which can be deployed to defend the peg if the need arise.

7. Trade EnvironmentMajor exportsThe major exports of Qatar include the liquefied natural gas (LNG) and petroleum. 70% of the government revenue is generated through these exports and more than 60% of gross domestic product is also based on it in the markets of East Asia and Middle East. Qatars oil reserves of 15 billion barrels will continually make contribution in its exports for next 23 years. Production and export of natural gas are becoming increasingly important.Top five major exports of Qatar are:The exports of Qatar are Natural Gas (47%), Crude Petroleum (39%), Refined Petroleum (7.1%), Ethylene Polymers (2.1%) and Nitrogenous Fertilizers (1.3%)(Qatars Top Five Exports Graph)

Major importsThe major imports of the Qatar are machinery and transport equipment. Some imports are also comprised of agriculture, steels and chemical products.Main trading partnersThe main export partners for the Qatar are these countries Japan, India, Singapore, Republic of Korea and Thailand. In the Middle East the UAE is the main target of Qatars exports while Africa, Egypt, United States and United Kingdom are also the main markets for Qatar exports. Similarly the import partners for Qatar are the United Kingdom, United States, Japan, China and some European countries like Italy. In short the main trading partners of the Qatar are Saudi Arabia, United Arab Emirates and United Kingdom. Top Five Exporters Countries of QatarThe top five importers of Qatar are Japan (31%), South Korea (22%), India (15%), Singapore (6.6%) and China (6.4%)(Top Five Exporter)

Regional Economic Integration Both countries Pakistan and Qatar are blessed with deep rooted historical multidimensional relations based on cultural attractions, shared traditions and values, geographical closeness and uniqueness of interest. Both these countries provide support to each other and also the people of these countries so that there can be built an excellent bilateral relations among them and further economic integration in future. Pakistan has high importance to the regional and strategic position of Qatar in the Middle East and in the Muslim world today. Pakistan keens to further enhance the regional and economic integration in all fields. Qatar assures that it will help Pakistan in achieving Free Trade Agreement with the Gulf Corporation Council (GCC) countries. On the other hand Government of Qatar has recently constructed a model village, schools, shopping malls and masjids in RahimYaar Khan District. Pakistan and Qatar joint ministerial commission provides an excellent opportunity to enhance economic and trade relations between these two countries in the various fields. Pakistan provides an ample opportunity to Qatari business men and investors in the sectors of national economy like power sectors, health, education and infrastructure. Tariff and Trade BarriersQatar has promoted an open investment and trade policy in recent years to diversify its economy and from being heavily dependent on energy sector exports. Qatar national vision of 2030 is to promote competition, trade and investment by reducing barriers to entry and strengthening the competition. Qatar is reviewing its trade policy of urging foreign investments and reducing restrictions by opening more sectors that currently have restrictions. Qatar has become a contracting party to GATT 1994 in which he bound on all tariffs of goods and services.Qatars tariff schedule is not published or available to the public but it is based on the unified custom tariffs of the Gulf Cooperation Council. The tariff schedule has one rate of duty applicable to each tariff line, weather supplied by WTO member countries or not. But the Qatars applied tariff rates remained low and relatively constant over the period. In 2007 tariffs averaged 5% and remained at this same average level in 2013. The agriculture tariffs are approximately high than industrial goods. Qatar maintains a simple tariff system that is 0%, 5%, 20%, 100%. Applicability of these duties depends upon the nature of the product. The vast majority of tariffs are at 5%. Internationally Qatar maintains various trade barriers to discourage foreign investors like import of religiously and government sensitive items but do not impose any duty on products like rice, wheat, powdered milk etc. investment in beverages and other alcoholic products, armed, military and ammunition products in Qatar required permission and license from the Qatar government and may impose hundred percent duty on such products including tobacco. Government Incentives for Conducting Business in QatarThe goal of the Qatar government is to diversify its economy away from heavy dependence on the sector of energy. It has various incentives for the foreign direct investors so that government can urge them to invest in other sectors. The incentives includes subsidized gas prices, tax holidays, land at no-market rents, favorable electricity rates, exemption of taxes on exports, loans at competitive rates and dont apply any import duties on the import of machinery, equipment, and spare parts for the industrial projects.8. Cultural AnalysisCultureCulture is a set of beliefs, values and traditions in any society which are socially shared, communicated and accepted in a society.The Quality in a person or society that comes from a concern for what is regarded as excellent in arts, letters, manners, scholarly pursuits, etcCulture of every country is different and it is important for a company to understand the culture of the host country before launching the product in that country. It is also important to understand that how people perceive our product in that country. A company should determine the dimensions of the host country and also the norms of that country. Dimensions and norms play a key role in the development of the culture of that country.Culture is traditional country experiencing rapid social changing. It is important to Qatar to maintain its heritage and the modern appearance may mislead people into forgetting that it is still a traditional society with consequential social confusions. We by choosing the master tiles company have analysis the culture of our host country Qatar and determine the culture by relating this to a model of Trompenaars and Hampden-Turner. This model explains the seven dimensions of the culture and helps us to completely analyze the culture of Qatar. First we are going to explain the seven dimensions of the culture with the help of this model.

Determinants of CultureThe determinants which can affect the nature of work in the Qatar primarily are religion, political philosophy, education, language and social structure. When a new firm or a foreign firm comes in this country it has to consider these crucial factors or determinants. These determinants can become the cause of success or failure in the Qatar. How these determinants affect the working of a firm in Qatar are briefly explained below.ReligionThe religion of the country Qatar is Islam and the dominant version of Islam in Qatar is the Wahhabi or Sunni Islam. Although the local population of Qatar is made up Islam yet there are high number of other workers belongs to other countries. When a firm will launch a product here it has to follow the Islamic philosophy otherwise the product will totally flop in Qatar.Political PhilosophyThe Qatar is the country based on the absolutely monarchy system in which all the matters are solved by the king or emir of the country and he does not allow the others to interrupt with the matters of the government. The Sharia system of legislation is implemented in the country. So for a firm to be successful there is necessary for him to refrain from taking part in the politics. EducationIn Qatar to fulfill the mission 2030 education has become very important for the development of the Qatari people. There are too many campuses of foreign universities and operate under the Supreme Education Council. Most of the universities provide free education to the children of government employees. Qatar universities provide education based on science and technology and also the curriculum of business. So education is the determinant due to which people come to know that what firms are going to operate in their country and how much ethics are being followed by them.Language This determinant also plays a key role in the success of the firm in a host country. When a firm launches a product or export in host country it has to understand their needs and demand about the product and also understand that at what price people can buy this product. All this can be done with the complete understanding of the language of that country. For us as exporting master tiles and sanitary there it is an opportunity that our national language Urdu is also speaks somehow. Language is the main source of communication in every part of the world and every country has its own language.

Culture DimensionsThis model explains that peoples are not only different with one another they also differ in every definite, even expectable ways. This is because each culture has its own way of thinking, its own preferences and also has its own beliefs and values.These dimensions consist of the following main features.Rules versus RelationshipPeoples of the Qatar place a too much importance to the rules, laws, values, obligations and regulations. These people give time to each other to make decision and provide clear instructions, processes and procedures so that people can help and understand each other. Qatari peoples never give importance to their relationships over the rules of their country. It is also to note that these peoples do not build relationships with each other so early.Individual versus GroupOn the basis of individual feature these Qatari people love to reward their performance, love to work with freedom and use their initiative. These peoples also love to work with group and praise and reward group performance. When they work in group they dont praise their individual performance. Qatari people allow involving others in decision making and avoiding favoritism. How Far People Get InvolvedPeoples of Qatar do not get involved with the personal lives of other and that is why they do not give much importance to the relationships. They just focus on their objectives. But these people also spend time outside work hours with colleagues and clients. On the sense of business these peoples have personal discussions at work.How People Express EmotionsPeople make a great effort to control their emotions they do not get influence unless their actions and thinking deal with them. Mostly peoples do not get involved with the situations happing in the country. It means they do not think that what other peoples doing. They find ways to express their emotions at work. They also use emotions to communicate their objectives and manage conflict effectively before it becomes personal.How People View StatusQatari peoples work well when they get reward on their achievements but remains within the norms and culture of their country. These peoples loved to be valued what they are and often get power and titles without show off in authority. These people do not let their authority to perform negatively in the culture.How People Manage TimeThese peoples are punctual and give too much value to the time. The culture of the Qatar is also to perform one task at a time keeping deadline in mind and set clear goals. Sometime they consider performing several projects at one time and needing some flexibility in managing time.How People Relate To Their EnvironmentInternally in the companies these peoples learn from other peoples and also take control on their learning. From the culture of the Qatar it is analyzed that peoples and employees set objectives and agree with people. External environment also affect their thinking example is the nature of the country is hot and these peoples need air conditions to work within the offices.On the other hand some other dimensions can also effect on the culture of the country and these are as below.On Gender BasisWomen in the Arab countries including Qatar can now work safely in the offices and also can take part in the decision making of the company. Before now females were not allowed to work due to some weak implementation of the laws. Now days women can work without any problem.More local women are entering the work force in Qatar and some employers view them as harder working and more reliable than the average local male worker. Women rising to positions of power and influence tend to come from middle and upper families and support their families.Long Term OrientedThe Qatari people are long term oriented and now mainly focus on the 2030 vision and thats why we analyze that these peoples are long term oriented. This also explains that these peoples can adopt all changing environments.Uncertainty AvoidanceIt is the natural behavior of the all culture people that they move away from the uncertain conditions and avoid it at all possible levels.

Cultural NormsNow we can further elaborate the culture of the Qatar in the sense of the cultural norms and code of ethics and these should also expected from the visitors. These cultural norms are briefly explained below.Permission for Taking PictureSeek permission for taking photographs of people and be cautious about taking photographs in public. For security reasons the Qatari government do not allow to take photograph of government buildings, military and some industrial sites, as well as some internal and external portions of the airport or shopping malls.DressIt is expected from the visitors that they should not wear tight clothes by women and open shirts by the men. They should also follow the courtesy and hospitality and respect in the Arab world. There are two different types of clothings in the Arab country regions and in the Qatar. One is for the local women and the other is for the foreigners. Arab women outside the home will dress like the rule of Islam as they have to wear abaya which covers the women from head to feet. Qatari men wear the thobe a loose ankle length robe made from fine white cotton as worn by Omanis. The visitor women are not allowed to wear tight and sleeveless.

LanguageThe official language is Arabic but English is increasingly becoming the chosen language particularly in business situations. Interpreters can be hired for business situations where English is not understood by them. Urdu which is the language of Pakistan is also spoken in Qatar. The following chart presents a few words which will provide help to foreigners and audio tapes or a simple Arabic language books can also provide help with pronunciation.EnglishArabicEnglishArabic

YesAiwaHello (literally, peace be with you)Al salaam alaykum

NoLahHello (said in response)Waalaykum e salaam

Please (to a man)Min fadhlakHow are you?Kef halak?

Please (to a woman)Min fadhlakWelcomeMarhaba

Thank you (to a man)MashkurI am well, thank youAl-humdulillah

Thank you (to a woman)MashkuraGoodbyeMaalsalaama

GreetingsThe most common greetings in the gulf region and in Islam are the ASSLAMU ALAIKUM and to which the correct reply is the WA ALAIKUM MUSLAM. This is also in the Pakistan. Men should never shake hand with women either they are all foreigners or not. TitlesIt is a common practice in Qatar to tell your first name and family name. Woman who are married they use first their first name and their husbands name.FoodThey make their Breakfast between 6.00 am and 8.00 am, lunch between 1.00 pm and 3.00 pm. And Qatari people do their evening meal at home in 18.00-19.00 with tea. The traditional dishes of Qatar are Machbous, Mathrooba, Kousa Mahshi and Wareq Enab and drink is Qahwa HelwEvents& FestivalsThe events and festivals are celebrates in Qatar are Eid Ul Fitar, Eid Ul Azha, Ramzan, Art Festival Of Qatar, Doha Cultural Festival, Doha Tribeca Film Festival, Qatar Marine Festival, Qatar Master Gulf Tournament, Qatar Open Tennis TournamentInvitationsIf you are invited in the home of the Arab country you should accept it. You should generally take every opportunity to become acquaint with the local people and avoid the natural tendency to stay within the social and physical confines. In these countries you should avoid politics and religion as subjects for discussion. It is also to note that before entering to the home of Arabs you should remove your footwears.

9. Challenges And Opportunities Of Doing Business In The QatarChallengesChallenge (the condition of being faced with) something that needs huge mental or physical effort in order to be done fruitfully.The Qatar Business environment is not much challenging because government promote foreign investment in the country by giving tariff benefit, free trade, no import duty on import of machinery and raw materialThe Following Challenges to be face, Master Tiles in Qatar:Brand RecognitionMaster tiles will newly launch in Qatar. So it will be faced brand recognition challenges among existing brand which have well brand recognition in QatarFinancial Stability of RetailerMaster Tiles will not have its own distribution channel or outlet in Qatar. So, Master Tiles will face the problem of seeking out the financially strong retailer, which he exports its products.AcceptabilityMaster Tiles will be newly export to Qatar. So, it will face another challenge of customer acceptability of its product because it is very much difficult for newly launched product to gain customer acceptability for its goods/products.International CompetitionThere are international suppliers in Qatar who provides tiles to people for construction purposes. So, it will be another challenge foe Master Tiles to compete in with those international competitors for getting reasonable market shares because these competitors are old in the Qatari tiles market and they are well established.The International competitors who gave competition to Master Tiles in Qatar are United International Company, Rack Ceramics Pvt Limited and Capital Trading CompanyShort TimeThe Major Constructions of Qatar is for the FIFA World Cup 2022. So, there will be another challenge for Master Tiles that is shortage of time to penetrate in the market and getting recognition as well know brand.Meet International StandardsIt also another challenge for Master Tiles to maintain international quality standard because of competing with international brands which is known by people of Qatar and also people of world.

OpportunitiesOpportunity means a good chance for improvement or progress or an amount of time or a circumstance in which something can be done.The Following opportunities that Master Tiles Will be enjoying in Qatar: Qatar has one of the highest GDP per head in the world and the per capita income is $93714. SO, the purchasing power of residence of Qatar is high to purchase our products. Qatar has the 80% revenue from the industrial sector and 20% from service sector. It indicates that the people of Qatar are involved in Infrastructure betterment and they placed our product in their mind. Qatar has the high bloodline of the economy because it has offer 4.5% interest rate for lender, which is very low as compare to Pakistan. It will be beneficial for Pakistani suppliers that they will gain the interest benefit by obtaining loan at the time of financial need. IMF (International Monetary Fund) forecast that in coming years the interest rate in Qatar will more decline. The Budget of Qatar is in surplus which is 22.3 Billion Qatari Rail. It represent that there is much capacity in its budget to import because according to economist, the balance between the exports and imports is suitable for any country. We are going to export our products in Qatar. So, we have to deal with letter of credit and bill of lading and in case of urgent need of money we can receive/withdraw the money from the importer at any time but the condition with great credit worthiness and by delivering the ordered products. There is no restrictions in investing in Qatar and withdrawing the investment from Qatar and free from restriction of capital outflow and inflow. The currency of Qatar is almost stable but the Pakistani currency is fluctuating time to time. It means in case of depreciation of Pakistani currency we will receive the high transfer receipt. The Qatar Government promise to FIFA to built double hotels and apartments to 84000. So, for the construction of these hotels and apartments they will have to need the tiles and other building raw material so it is an opportunity for us if we deal with them. The Qatar government promise to increase private sector loan by 16%. It means in the construction of 84000 rooms and apartments. It means private sectors are involved and the private sector concern only with the profit and their investment. If we offer our products to them at economical price with superior quality tiles. They will be our customers. Qatar receives 70% exports revenue from the export of crude oil. So, it will be no difficult for them to pay in any currency because they have lots of foreign reserves. The economy of Qatar is liberal in trade and we can exports our products freely without any kind of restriction and Qatar and Pakistan have a good trade and foreign affair relationship so it is beneficial for us to exports our products to Qatar. It is also an opportunity for us that there is no import duty on the import on machinery and raw material and in future if we want to establish our business in Qatar. It will be beneficial for us. The exchange rate of Qatar is almost fixed and it is pegged with US Dollar. If it is fixed with our currency than there will be no fear or risk of fluctuation in currency and it will be possible only if we will make the big supplier for them. Due to use of our product in Qatar there will be brand positioning and brand recognition in the minds of foreign tourists, who are visiting the Qatar to watch and enjoying the FIFA World Cup 2002 because football is world most liking sports than other sports.

10. Identify international business strategy and possible mode of entryThe international business strategy which we are use is exports strategy, because exporting is frequently the 1st international choice for firms because most of the firms rely largely on exports throughout their history. The export strategy is what is following:Export StrategyExporting is the most traditional and well established form of operating businesses in other countries markets/foreign markets. Exporting can be defined as the marketing of goods produced/manufactured in one country into another country. No direct manufacturing process is required in an overseas country; significant or major investments in marketing are required. The tendency/propensity may be not to obtain/gain as much detailed or full marketing information as compared to manufacturing in promotion country; on the other hand, this does not cancel out the need for a full marketing strategyExport strategy is a meaning of shipping commodities to other places or countries for sale or exchange purpose. In economics, an export is any product or commodity, transported or elated from one country to another country in a lawful fashion, naturally for use in trade.The following four key pillars of a successful or victorious export strategy:Interior 1: Export keenness evaluation of a company (and hole analysis/examination with recommendations how to address the changing requirement)Interior 2: Export keenness evaluation of a product (including benchmarking with parallel products that are currently fruitfully traded on target markets; technical characteristics; packaging and labeling).Exterior 3: Research of 220 countries and the Worlds key trade channels to discover target market/s.Exterior 4: Built export strategy to enter the selected higher than target market/s (that will comprise such considerations like transport, partnership, major distribution channels, pricing, advertising, volumes etc.).

Mode of EntryInternational firm may choose to do business in a different ways. Some of the most ordinary include exporting, franchising, licensing, turnkey operations and by contracting, by joint ventures, entirely owned subsidiaries and strategic alliances.The mode of entry which we are select is exports mode of entrance in international market because many international firms choose exports strategy because exporting is frequently the 1st international choice for firms because most of the firms rely largely on exports throughout their history. Exports are seen as comparatively simple because the firm is relying on domestic or home production, can use a variety of disinterested party to assist in the procedure, and expects its foreign customers to deal with the promotion and sales issues. Many firms start by exporting reactively; then become down to business when they realize the possible payback of addressing a market that is much superior or bigger than the domestic/home one.

ReferencesWorks Citedaphttp://www.appletravel.cn/holidays/travel_information.php?id=416Atlas Media. (2015, June 21). Retrieved from https://atlas.media.mit.edu/en/profile/country/qat/Bmir Search. (2015, June 23). Retrieved from http://store.bmiresearch.com/qatar-country-risk-report.htmlBuilding UK. (2015, May 31). Retrieved from http://www.building.co.uk/qatars-construction-boom-the-legal-risks/5030939.articleGlobal Edge. (2015, JUne 24). Retrieved from http://globaledge.msu.edu/countries/qatarinfoplease.com. (2015, June 21). Retrieved from http://www.infoplease.com/encyclopedia/world/qatar.htmlLook Lex. (2015, June 21). Retrieved from http://looklex.com/e.o/qatar.political.htm(2015). Master Tiles Marketing Plan. Gujranwala: Scribed.Reference for Business. (2015, JUne 24). Retrieved from http://www.referenceforbusiness.com/management/Gr-Int/International-Business.htmlSuddeFrance. (2015, June 21). Retrieved from http://www.suddefrance-developpement.com/en/country-profiles/qatar/presentation.htmlWikipedia. (2015, June 20). Retrieved from https://en.wikipedia.org/?title=QatarWorld Bank. (2015, June 18). Retrieved from http://data.worldbank.org/data-catalog/GDP-ranking-table

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